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1 Child Nutrition and WIC Reauthorization Act of 2004 Public Law 108-265 An Orientation Part 1
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2 An Overview of the Child Nutrition Reauthorization Act
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3 Reauthorization Act 2004 Background Every 4-5 years Congress revisits the laws that govern the school meals programs.Every 4-5 years Congress revisits the laws that govern the school meals programs. The Administration also uses the reauthorization process to recommend changes.The Administration also uses the reauthorization process to recommend changes. The sum of the changes was intended to be cost neutral.The sum of the changes was intended to be cost neutral. Cost neutrality means major revisions must have increases balanced by savings.Cost neutrality means major revisions must have increases balanced by savings. Savings found in provisions to address over- certification and to streamline the programs.Savings found in provisions to address over- certification and to streamline the programs.
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4 Reauthorization Act 2004 Background (Cont.) The Administration grouped issues into three categories:The Administration grouped issues into three categories: –Program Access –Healthy School Environment –Program Integrity. President signed Child Nutrition and WIC Reauthorization Act of 2004 on June 30, 2004.President signed Child Nutrition and WIC Reauthorization Act of 2004 on June 30, 2004. Public Law 108-265.Public Law 108-265.
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5 RegulatoryProcess
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6 Regulatory Process More than twenty new rules will result from the Act
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7 Reauthorization Act 2004: Types of Rules Types ProposedProposed InterimInterim FinalFinal
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8 Reauthorization Act 2004: Proposed Rules Complex or controversial issuesComplex or controversial issues DiscretionaryDiscretionary Not in effect until final rule issuedNot in effect until final rule issued CommentsComments
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9 Reauthorization Act 2004: Interim Rules Congress gave USDA authority to implementCongress gave USDA authority to implement Go into effect 30 days after publication or as specified in ruleGo into effect 30 days after publication or as specified in rule Comments solicitedComments solicited Review and address commentsReview and address comments
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10 Reauthorization Act 2004: Final Rules Non-discretionary, orNon-discretionary, or Complete action on an interim rule, orComplete action on an interim rule, or Implement a proposed ruleImplement a proposed rule
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11 Commenting on Rules Understand issueUnderstand issue Express general agreement or disagreementExpress general agreement or disagreement Be specificBe specific Suggest improvement or clarificationSuggest improvement or clarification
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12 Child Nutrition and WIC Reauthorization Act of 2004 Overview of the Provisions for the Child Nutrition Programs
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13 Reauthorization Act of 2004: Title I -- Amendments to the Richard B. Russell National School Lunch Act (NSLA)
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14 Program Integrity Household Application Electronic Signatures Verification
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15 Single Household Applications
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16 Household Application Requires use of household applications.Requires use of household applications. SAs and LEAs cannot request individual applications within a LEASAs and LEAs cannot request individual applications within a LEA Goals: One eligibility determinationGoals: One eligibility determination Retrievable by school Effective July 1, 2005Effective July 1, 2005
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17 Allowed if: the application is submitted electronicallythe application is submitted electronically the application filing system meets confidentiality standards set by the Secretarythe application filing system meets confidentiality standards set by the Secretary Effective July 1, 2005Effective July 1, 2005 Electronic Signatures
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18 New verification requirements specified by lawNew verification requirements specified by law Provides alternatives depending on improvements made to non- response rateProvides alternatives depending on improvements made to non- response rateVerification
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19 The lesser of: The lesser of: –3% of all approved applications selected from “error-prone” applications; or –3,000 approved error-prone applications. Basic Sample Size
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20 Error-prone income is within $100/month ($1,200/year) of the eligibility limit for F/RP benefitsError-prone income is within $100/month ($1,200/year) of the eligibility limit for F/RP benefits Verification Basic Sample Size (cont.)
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21 In effect, same as current random sampling The lesser of 3000 / 3% of applications selected at random from approved applicationsThe lesser of 3000 / 3% of applications selected at random from approved applicationsOR The lesser of 1000 / 1% of error prone applications selected from approved applications PLUSThe lesser of 1000 / 1% of error prone applications selected from approved applications PLUS The lesser of 500 or ½ of 1% of all approved applications that provided a FSP, FDPIR, or TANF case numberThe lesser of 500 or ½ of 1% of all approved applications that provided a FSP, FDPIR, or TANF case number Alternate Sample Size Options
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22 Any LEA with preceding school year nonresponse rate less than 20%Any LEA with preceding school year nonresponse rate less than 20% ODE will communicate directly with each LEA on the verification sampling method they are to use in 2005 -06ODE will communicate directly with each LEA on the verification sampling method they are to use in 2005 -06 Eligibility for Alternate Sample Sizes
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23 If there are not enough “error- prone” applications for basic sample size or alternate sample sizes, LEAs must randomly select additional applications to fulfill the percentage or number requirement.If there are not enough “error- prone” applications for basic sample size or alternate sample sizes, LEAs must randomly select additional applications to fulfill the percentage or number requirement.Verification
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24 Selection Date October 1The sample size is determined based on the number of approved applications as of October 1
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25 On individual case review, LEAs may “decline” up to 5% of their verification sample and replace them with other approved applications.On individual case review, LEAs may “decline” up to 5% of their verification sample and replace them with other approved applications. Sample Selection
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26 Prior to verification of a selected application: LEAs must have the initial determination on selected applications reviewed for accuracy by someone other than the original approving official.LEAs must have the initial determination on selected applications reviewed for accuracy by someone other than the original approving official. Exception: requirement waived if the LEA uses a “technology-based solution” that makes accurate eligibility determinations.Exception: requirement waived if the LEA uses a “technology-based solution” that makes accurate eligibility determinations. Confirmation reviews of approved applications
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27 If the initial determination is incorrect, the LEA must: (1) Correct the household’s eligibility status; (2) Notify the household of the change and explain changes; and (3) Allow household to reapply and provide documentation Confirmation reviews (cont.)
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28 If a confirmation review indicates that a household is eligible, the LEA must proceed to verify the application.If a confirmation review indicates that a household is eligible, the LEA must proceed to verify the application. Confirmation reviews (cont.)
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29 Permits LEAs to use “direct verification”.Permits LEAs to use “direct verification”. Direct Verification is using income and program participation information from public agencies administering certain programs with comparable income eligibility limitsDirect Verification is using income and program participation information from public agencies administering certain programs with comparable income eligibility limits The programs are:The programs are: 1) Food stamps 2) FDPIR 3) State TANF 4) State Medicaid Direct Verification
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30 In order to facilitate “direct verification” through the Medicaid program, this section amends Medicaid law.In order to facilitate “direct verification” through the Medicaid program, this section amends Medicaid law. Amendment allows States to exchange information necessary to verify eligibility for free or reduced-price school meals.Amendment allows States to exchange information necessary to verify eligibility for free or reduced-price school meals. Effective July 1, 2005Effective July 1, 2005 Direct Verification (cont.)
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31 LEA must notify household it was selected for verificationLEA must notify household it was selected for verification Notice requires household to submit information to confirm eligibilityNotice requires household to submit information to confirm eligibility LEA must include a toll free number (call without charge)LEA must include a toll free number (call without charge) Effective July 1, 2005Effective July 1, 2005 Written Notice to Households
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32 If household does not respond to verification requests, LEA must make at least 1 additional attempt to obtain verificationIf household does not respond to verification requests, LEA must make at least 1 additional attempt to obtain verification LEAs may contract with a third party to assist with “follow-up”LEAs may contract with a third party to assist with “follow-up” Verification Follow-up Activities
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33 November 15 (changed from previous December 15)November 15 (changed from previous December 15) Requires LEAs to make appropriate modifications to eligibility determinations based on their verification activitiesRequires LEAs to make appropriate modifications to eligibility determinations based on their verification activities Effective July 1, 2005Effective July 1, 2005 Verification Deadlines
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34 Act restates current confidentiality/disclosure requirementsAct restates current confidentiality/disclosure requirements Extends disclosure of information to State Medicaid agencies for direct verification purposesExtends disclosure of information to State Medicaid agencies for direct verification purposesConfidentiality/Disclosure
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