USDA-FSIS Updates Fiscal Guidance for State Cooperative Inspection Programs
Credit: U.S. Department of Agriculture Food Safety and Inspection Service
USDA's Food Safety and Inspection Service (USDA-FSIS) has issued a revised directive outlining financial management procedures for state cooperative inspection programs. The directive replaced fiscal guidance that had been in effect since March 2004.
FSIS Directive 3300.1, Fiscal Instructions for State Cooperative Inspection Programs, was issued on July 31, 2026. FSIS rewrote the Directive to update and clarify financial procedures for State Meat and Poultry Inspection (State MPI), Talmadge–Aiken (TA) cooperative agreements, and Cooperative Interstate Shipment (CIS) programs.
The directive states that all three types of state cooperative inspection programs must comply with the uniform administrative requirements, cost principles, and audit requirements for federal awards under 2 CFR Parts 200 and 400, as well as the terms of their applicable agreements.
Participating states are required to provide more detailed information including the number and types of establishments [e.g., raw, ready-to-eat (RTE), not-RTE], species, product categories, projected annual operating days, and staffing by job title. Facilities must also submit a narrative justification for projected expenditure changes of 5 percent more or less than the previous budget request.
Annual financial certifications must include signed agreements for applicable programs, a certification statement for financial accountability, and entity registration. States must report program expenditures quarterly through the Federal Financial Report, or SF-425, and submit a final SF-425 containing all program costs incurred during the federal fiscal year.
The directive also instructed FSIS to conduct a fiscal review every three years for each state participating in a State MPI, TA, or CIS program. The reviews are intended to assess the sufficiency of the financial systems, records, reports, and procedures used to account for program expenditures.
Questions regarding the revised Directive can be sent to FSIS.StateMPI.OCFO@usda.gov.
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