In response to its findings, USDA proposed a number of recommendations, including the revocation of Child Nutrition (CN) identification for products that do not satisfy requirements, as well as fines and penalties for processors.
The Child Nutrition Labeling Program, a voluntary program administered by the Food and Nutrition Service (FNS), aims to provide nutritious meals and snacks to the nation's children. Processors and organizations involved in the program receive grants for the products supplied under the program, provided they meet the minimum dietary standards set by FNS.
FNS administers the program in conjunction with the Food Safety and Inspection Service (FSIS) and the Agricultural Marketing Service (AMS) within the USDA, and the National Marine Fisheries Service (NMFS) of the US Department of Commerce.
But according to USDA's audit, FNS did not implement the necessary controls to deter processors from using CN labels that had not been approved. In addition, FNS did not ensure that processors' partial quality control programs (PQCP), which control a single product, operation, or part of an operation in a meat or poultry establishment, adhered to established guidelines.
Conducted during June and July 2005, the audit involved visits to six processors active in the program. According to the USDA's recently issued report of its findings, two of the six processors produced CN labeled calzone and cheese shell products without FNS approval and one processor distributed approximately 12,500 pounds of mislabeled calzone.
This occurred due to the lack of coordination between FNS and the inspection agencies and because inspectors did not validate whether processors received FNS approval for their CN labels, said the agency. In addition, FNS did not implement compensating controls such as monitoring of processors' activities or following up when processors did not resubmit their CN label applications for final approval.
"The CN Labeling Program has insufficient consequences for processors who abuse requirements for CN labeled products. Consequences such as fines, penalties, and suspensions would more appropriately address the severity of these infractions," noted the report.
Other deficiencies identified included not meeting requirements set for label control, product formulation control and weight control, resulting in the products not meeting the meal pattern guidelines.
As a result of its investigation, USDA made a number of recommendations to FNS, designed to deter unauthorized production and distribution of products that carry CN labels.
"FNS needs to implement formal procedures that ensure that CN labeled products have received the final approval of FNS. The procedures should require revocation of CN identification numbers for labels of processors who abandoned the application process," said USDA.
"In addition, FNS needs to coordinate with USDA's Office of the General Counsel and interagency inspection officials to impose consequences such as fines, penalties, and suspension on abusers of the CN Labeling Program. FNS also needs to coordinate with the inspection agencies to revise the MOU (Memorandum of Understanding) to address such issues as expanding coverage from non-meat products to all types of CN labeled products and establishing a procedure for approving processors' PQCPs."
FNS agreed with the report's recommendations, and said it plans to implement changes by March 2007.
To view the full USDA audit report, click here.