Verification Process: Alternate Two – 1 % Plus One Half %USDA Eligibility Manual for School Meals, July 18, 2017 pgs. 96-117

This process calls for a random selection of applications verifying 1.5% of the entire total (Free and Reduced) newly approved applications.

Do not include the following: Students eligible by Direct Certification Denied applications Applications completed by school official for failure to apply (non-applicant/administrative) Homeless lists or applications provided by Sponsor’s Homeless Liaison Migrant lists from the sponsor’s Migrant Education Program Coordinator Students who have withdrawn or transferred on or before October 1

TimelineThe verification process starts October 1 and ends November 15If you cannot complete the verification process by November 15th, you must request an extension in writing to the State Agency by November 15 due to natural disaster, civil disorder, strike, or other circumstances that prevent the timely completion of verification activities.

Complete and enter the FNS 742 Verification Collection Report in CNPweb on the “Claim” tab by Thursday February 1, 2018.

Reimbursement payments will be withheld starting Monday, February 5, 2018, until theFNS 742 Verification Collection Report is received.

Calculating sample size - Step One:Determine the total number of all current year approved free and reduced price meal applications as of October 1 then multiply by .01 (complete calculation below). Then select the sample from “error-prone” applications

____________ Total # of all current year approved applications on file on October 1

_____X.01___ Multiply by 1 percent = .01

____________** (ROUND DECIMALS UP to the nearest whole number) = _______________

Step Two:Determine the total number of all current year approved categorically eligible free applications as of October 1, and then multiply by .05 (complete calculation below)

____________ Total number of all approved categorical applications on file on October 1

_____X.005__ Multiply by one half percent = .005 **

____________ _ ** (ROUND DECIMALS UP to the nearest whole number) = _______________

____________ Add 1% all eligible applications

____________ Add One Half % categorically eligible applications **

____________** Total sample size to be verified (Step One added to Step Two)

Selecting applications for verification:You must select your applications for Alternate Two Process = 1% Plus .05% categorical by a method that is equitable.

1. You must select 1% your applications to verify from your pool of error-prone free and reduced-price applications. Error-prone applications are ones that list household income within $100 monthly or $1200 annually of the free and reduced price eligibility guidelines.

2. If you have more error-prone applications than are needed for your sample size, then select the sample using a random method that is equitable.

3. If there are not enough error-prone applications to meet the minimum required sample, select the remainder to be verified from applications with monthly (or annual) income closest to these thresholds.

4. If the total number of income applications is smaller than the required sample size, verify all income applications.

5. You must select .05% of categorically eligible applications. (SNAP/TANF/FDPIR/Foster children)6. #1 added to #5 equals to total # of applications to be verified.

The sponsor may not have enough applications that meet the criterion for sample sizes based on error prone applications. When this happens, the sponsor must select, using random sampling, additional approved applications to complete the required same size.

Confirmation Reviews:

1. A confirmation review is required for manual approval systems: A sponsor official, other than the eligibility official who made the initial eligibility determination,

must review each approved application selected for verification to ensure that the initial determination was accurate.

If the secondary review determines that the original eligibility determination was incorrect, you are required to contact the household using the Changing Meal Benefits due to Application Review letter, the letter is located at: Oregon Department of Education Child Nutrition Verification Website

Include a new application and allow the household 10 calendar days to respond. This application remains in the verification process unless the household benefits change to Paid.

If the household benefits change to Paid, select one application to replace it with a similar application.

2. Once any required confirmation reviews are completed the sponsor will proceed with verification if the

initial determination was correct or incorrect as follows:

Sponsor Responsibilities Following a Status ChangeNo Change in Status The Sponsor verifies the application

Status Change from Reduced Price toFree

The Sponsor: Makes the increased benefits available immediately; Notifies the household of the change in benefits; and Verifies the application.

Status Change from Free to Reduced Price

The Sponsor: Does not change the child’s status; Verifies the application; Notifies the household of the correct eligibility status after

verification is completed and, if required, sends the household a notice of adverse action.

Status Change fromFree or ReducedPrice to Paid

The Sponsor: Immediately sends the household a notice of adverse action; Does not verify the application; Selects a similar application, such as another error prone

application for verification; and Follows the confirmation review procedures for the selected

Sponsor Responsibilities Following a Status Changeapplication.

3. Confirmation reviews are waived if:

Any sponsor that conducts a confirmation review of all applications at the time of certification is not required to conduct confirmation reviews prior to verification.

This requirement is waived if the sponsor uses a technology-based system with a high level of accuracy in processing an initial eligibility determination.

Sponsors must contact the State Agency to determine if its system qualifies them for this waiver. The State Agency may request documentation to support the accuracy of the sponsor’s system. If the State Agency determines the technology-based system is inadequate, it may require the sponsor to conduct a confirmation review of each application selected for verification.

Replacing ApplicationsAfter completing the confirmation reviews, the sponsor may, on a case-by-case basis, replace up to 5% of applications selected. Applications may be replaced when the sponsor believes the household would not be able to satisfactorily respond to the verification request.

Direct Verification (Optional) There are two direct verification options. If student(s) from the selected application are on either file, then verification for this application is complete.

A. Direct Verification - Medicaid data may only be used to confirm benefits not issue benefitsDirect Verification - Medicaid data is found on the ODE district secure website where the direct certification file are: Oregon Department of Education District Website

Medicaid data contains both Free and Reduced Price household information. Compare both the household number and income to current Income Eligibility Guidelines.The household member income (column S) and count (column T) are on the far right-side columns

Income for Free is listed 00000 - the decimal point is missing Reduced Price is listed as one figure - the decimal point is missing

B. Direct Certification – student from household found on Direct Certification electronic list after October 1, no additional verification is required.

Households found on Direct Verification (Medicaid or DC list after 10/2) their verification process is complete. These households do not need to be notified in writing. Retain a copy of this information with your Verification documentation.

Notifying Household of Verification SelectionHouseholds selected for verification must be notified in writing of their selection for verification (unless they are verified through direct verification).

Use the Notice of Verification Selection letter to alert households of their verification requirement. This letter informs households of their responsibilities to submit information along with a list of documents of other forms of evidence the household must submit. This letter has several data fields that must be completed by the Sponsor prior to mailing to households. Sponsors are required to provide a toll-free number for assistance.

Verifying Household Submitted Information Once households have been notified to provide verification information, the verification process for

these households must be completed. If a household moves out of the area during the verification period (October 1 – November 15), a new application must be selected.

Review the submitted verification documentation from each household to determine the level of benefits. This means re-calculating income from pay stubs and other documents. Keep a copy of your math recalculations.

The sponsor may use data for the month of September or (if available) data for all month August through October.

File and retain documentation provided by households as part of program records.

Required Income ConversionsIf a household has multiple income sources and income sources are received with varying frequency, the sponsor MUST annualize (Math calculations for all income to convert to annual) by:

Weekly: Multiply total earnings and wages for one pay period, before deductions, by 52. Bi-weekly (paid every 2 weeks): Multiply total earnings and wages for one pay period, before

deductions, by 26. Semi-monthly (paid twice a month): Multiply total earnings and wages for one pay period, before

deductions, by 24. Monthly income multiple total earnings and wages by 12.

Household members who are seasonal workers or work less than 12 months: Calculate the annual rate of income from the documentation provided. Note: Money received from a business or farm owned by you should be reported as "net income." Net Income is defined as the total income left after business and farm operating expenses are subtracted from gross receipts. This may be documented from a prior year’s taxes.

Required Follow-up for Household who do not RespondSponsors are required to make at least one follow up contact the household when the household does not adequately respond to the request for verification. The required follow-up attempt may be in writing (mail or email) or by phone, or text message. The follow up contact must be documented with date, method and who made the contact.

The sponsor must make a follow-up attempt when the household: does not respond to the initial request submits insufficient or obsolete written evidence does not designate collateral contacts or collateral contacts are unable or unwilling to provide the requested evidence

When following up with household, the sponsor must: inform the household that failure to provide adequate written evidence or failure to designate an

adequate collateral contact will result in the termination of benefits. attempt to obtain the missing written evidence or collateral contact information contact the household to complete the verification process, if the collateral contact is unable or

unwilling to provide the request information.

The follow up contact to households must be done in time to complete the verification process by November 15.

Completing the Verification Process Results:

Benefits are increasedThe household submits the requested information and the information qualifies the household for free meals rather than reduced price meals.

The Sponsor notifies the household that there will be an increase in the benefit level. Notification to the household may be by phone, in person, or by the Verification Results letter. Complete the appropriate data fields prior to mailing the letter.

An increase in benefits to households must be made immediately. The change must be made for all the children listed on the application at each school site no later than 3 operating days from the date verification was completed.

Benefits are reduced or terminated Reduction or termination of benefits must be done by written notification and the household must be

given 10 calendar days in which to appeal the decision before the benefits are terminated. The date the letter is sent is the first day of the 10 calendar days.

If an appeal is filed, the benefits remain the same until the appeal is completed. The actual reduction or termination of benefits must take place immediately after the 10-day advance

notice period. The change must be made for all the children listed on application at each school site.Complete the appropriate data fields prior to mailing the letter.

Household indicates, verbally or in writing it no longer wishes to receive benefits Verification status changes completed at Point of Service/roster for each student

Household Response Means1) Provide sufficient documentation2) A household indicates, verbally or in writing, that it no longer wishes to receive free or reduced

price benefits. 3) Verification is considered complete when the Verification Results Letter (notice of adverse action)

is sent.

Household Non-Response Means1) Does not provide sufficient documentation2) Household does not provide response. 3) Verification is considered complete when the Verification Results Letter – Non-Response (notice of

adverse action) is sent.

Verification process completed when:

A household’s eligibility for the approved level of benefit is confirmed A household’s eligibility is changed to a higher level A household is sent a letter reducing or terminating benefits no later than November 15. The 10-day

appeal period may delay the change in meal benefits an additional 10 calendar days. Mail depending in the household’s response: a) Verification Results or b) Verification Non-response letter to the household. Complete the appropriate data fields prior to mailing the letter.

Household indicates, verbally or in writing it no longer wishes to receive benefits Verification status changes completed at Point of Service/roster for each student

Complete FNS 742 Verification Collection Report

Sponsor complete and enter the results on the FNS 742 Verification Collection Report in CNPweb on the “Claim” tab by Thursday February 1, 2018.

Please see the verification website for instructions on how to complete the FNS 742 in CNPweb.

Reimbursement payments will be withheld starting Monday, February 5, 2018, until the FNS 742 Verification Collection Report is received.

Other Points to Consider:1. Households that reapply after verification:

When a household fails to respond to the request for verification documentation and the benefits are terminated and the household reapplies for meal benefits, the household is required to show documentation of eligibility prior to re-awarding benefits. These applications are not considered new applications. Eligibility Manual for School Meals, July 2017 page 59

2. If a foster child application is selected in the verification process, school officials can do the following:

Contact the foster family and request a copy of a written communication between the foster family and the placement agency in which the status of the child and the financial arrangement is stated.

If the family is unable to provide written information, the school official should request the name, agency and phone number of the social worker assigned to the foster child. A phone call to the social worker confirming the child’s status as a foster child and the amount of money designated by the agency for the child’s personal use is sufficient verification.

NOTE: The school official should document the phone conversation with the social worker (identifying the social worker, agency, phone number, status of the child, and the child’s personal-use income). Documentation can be made directly on the bottom of the foster child’s meal application. Remember to initial and date the entry.

All verified application must be readily retrievable on an individual school basis. All documents submitted but the household for the purpose of confirming eligibility, reproductions of those documents, or annotations made by the determining official indicating which documents were submitted….and the date of submission also be retained, along with all relevant correspondence between households selected for verification and the sponsor.

3. Records must be retained for 3 years plus the current school year. A summary of verification efforts including the selection process The total number of applications on file on October 1 The percentage or number of applications that are/will be verified by November 15

4. If, during an administrative review, it is found that a sponsor has not completed verification correctly, corrective action will be taken.

5. If you have questions or need assistance with your verification efforts, please contact your ODE Child Nutrition Specialist.