Direct Certification

Section 101: Improving Direct Certification

Intent: To challenge States to move closer to full performance in directly certifying eligible SNAP children for free school meals.

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Direct Certification OverviewDirect Certification Performance Awards

Performance awards for States that are making the greatest strides in directly certifying SNAP children

May award up to 15 States annually for 3 school years

Based on “Outstanding Performance” or “Substantial Improvement” in direct certification rates

Funded $4 million for 3 years ($2 million/category/yr)

Award funding treated as Program income

Funds may be provided to school food authorities for use in carrying out the program.

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Direct Certification Implementation

Performance awards will be based on direct certification in 3 school years: 2011-12, 2012-13, and 2013-14

State direct certification rates for SNAP children will be compared to the previous school year’s rates to determine performance levels

Awards will be made by September 30 each year

First awards will be made by 9/30/20124

Direct Certification Overview

Direct Certification Rate BenchmarksBenchmarks set for State direct certification

rates for SNAP children

States not meeting benchmarks each year must implement continuous improvement plans (CIPs) to improve rates for the next school year

Goal is for States to reach 95% and maintain at least this level

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Direct Certification ImplementationBenchmarks:

Each Fall, beginning 2012, FNS will notify States that did not meet required benchmark for previous school year

These States must implement continuous improvement plans (CIPs) to improve rates for the following school year

SY 2011-12

SY 2012-13

SY 2013-14

Future SYs

≥ 80% ≥ 90% ≥ 95% ≥ 95%

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Letter Method Overview

“Letter Method” EliminatedEliminates the “Letter Method” as a method of

direct certification for children in SNAP households

If a household provides a SNAP letter to the school, it must still be used in lieu of an application to certify the child for free meals

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Letter Method Implementation Letter method eliminated as direct

certification method for SNAP children effective October 1, 2010

All State agencies must ensure they have a method in place to exchange eligibility information from SNAP officials directly with LEAs as soon as possible

Guidance will be provided in the next few weeks to clarify impact on State direct certification rate data and reporting

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Section 101Timeline

Performance Bonuses

Benchmarks and Continuous

Improvement Plans

Letter Method Eliminated

Implementation Memo

Spring 2011

Implementation Memo Spring

2011

Implemented by FNS Policy Memo

SP 13-2011, effective 10/1/2010

Issue bonuses no later than Sept 2012, 2013, 2014

Publish Proposed Rule

Fall 2011

Issue Final RuleWinter 2013

Interim Direct Certification rule

accepted for review by

OMB on 2/2/2011Awaiting Comments

Notify States and require CIPs

Fall 2012, then annually

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Direct Certification with Medicaid

Section 103: Direct Certification for Children Receiving Medicaid Benefits

Intent: Demonstration project to test the effectiveness of direct certification using Medicaid program data matching.

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Direct Cert. Medicaid OverviewPhased in starting with SY 2012-13

By SY 2014-15, and thereafter, will reach LEAs that collectively serve 10% of students certified for free and reduced price meals nationwide

Suggests criteria for selecting States and LEAs to participate

Provides $5 million for FNS study to evaluate results

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Direct Cert. Medicaid ImplementationPhase In with an increasingly wider

scope:For SY 2012-13 , demos will be conducted in

selected LEAs that collectively serve 2.5 % of students certified for free and reduced price meals nationwide.

For SY 2013-14,, 5 %

For SY 2014-15, and thereafter, 10%SY 2012-13

SY 2013-14

SY 2014-15

Future SYs

2.5% 5% 10% 10%

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Direct Cert. Medicaid Timeline

Direct Certification for Children Receiving Medicaid Benefits

Demo Project Study

Release Request for Applications (RFA)

Spring 2011

Interim Report to CongressOctober 1, 2014

Select LEAs for SY 2012-13 demo

Fall 2011

Final Report to CongressOctober 1, 2015

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Community Eligibility

Section 104(a): Universal Meal Service in High Poverty Areas.

Intent: Provide an alternative to paper applications for claiming reimbursements in school food authorities serving a high percentage of identified students.

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Community Eligibility OverviewLEA or schools electing Community Eligibility

special assistance payments agree to serve all students free lunches and breakfasts for 4 successive school years.

The percentage of identified students must be greater than or equal to 40% to qualify.

Meal program claims are based on the percentage of identified students multiplied by a factor of 1.6.

The remainder of meals not covered under the identified student percentage multiplied by the factor will be reimbursed at the paid rate.

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Community Eligibility Implementation A limited number of States will be eligible

to elect this option during the first 3 years: Year 1: 3 States will be selected for the school

year beginning July 1, 2011. All eligible LEAs and schools in these States can participate.

Years 2 and 3: An additional 4 States will be selected for each of the school years beginning July 1, 2012 and July 1, 2013.

All LEAs and schools in all States are eligible to participate for school years starting on or after July 1, 2014.

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Community Eligibility Timeline

Guidance to implement this provision will be issued in March 2011

3 States selected in June 2011Proposed rule in Spring 2012Final rule in December 2013, in advance

of full implementation in July 2014

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Use of Census Data

Section 104(b): Universal Meal Service through Census data and Socioeconomic Surveys

Intent: Provide an alternative to paper applications in high poverty areas

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Census Data Overview and TimelineFNS contracted with the National Academy

of Sciences’ Committee on National Statistics (CNSTAT) to study and make recommendations for use of Census data for claiming reimbursement in high poverty areas. American Community Survey (ACS) data

CNSTAT report expected Fall 2011.Section 104(b) of the law provides USDA

authority to implement recommendations from CN STAT, or to conduct demonstration projects.

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Socioeconomic Survey Overview

Use of a socioeconomic survey for claiming meals is authorized in no more than 3 school food authorities.

USDA must develop requirements for the socioeconomic surveys to ensure statistical validity and compliance with OMB Standards and Guidelines for Statistical Surveys.

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Socioeconomic Survey Timeline

Fall 2011: Develop and issue socioeconomic survey parameters

Spring 2012: Select school food authorities for socioeconomic survey option

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Indirect Cost

Section 307: Indirect Costs

Intent: FNS to issue guidance to SFAs on program rules pertaining to indirect costs, and study the extent of indirect costs paid

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Indirect Cost Overview

Guidance will address program rules pertaining to indirect costs

Study will assess extent to which indirect costs are charged

The law also provides USDA the authority to issue regulations based on the results of the study

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Indirect Cost Implementation

Guidance will be issued by June 13, 2011 (no later than 180 days after the date of enactment)

Report to Congress on results of the Study by October 1, 2013

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Categorical Eligibility of Foster Children

Section 102: Categorical eligibility of foster children

Intent: Extend categorical eligibility to any foster child whose care and placement is the responsibility of the State or who is placed by a court with a caretaker household.

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Foster Children Overview

Applies only to formal foster care arrangementsA foster child is categorically eligible and may

be certified without an applicationHouseholds may choose to include the foster

child as a household member, as well as any personal income earned by the foster child, on the same application that includes their non-foster children

The presence of a foster child does not convey eligibility of free meals to other children in the household

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Foster Children Implementation

Effective October 1, 2010LEAs and other child nutrition institutions

must implement as soon as possible for any foster children identified by foster agencies or who submit new applications

All household applications and supporting materials must be updated to reflect these changes no later than July 1, 2011

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Foster Children Timeline

Implementation memo issued January 31, 2011

Q&A expected March 2011FNS will provide updated prototype

applications and supporting materials online March 2011

Eligibility guidance updated Spring 2011

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Privacy Protection

Section 301: Privacy Protection

Intent: Increase Privacy Protection

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Privacy Protection Overview

Removes the requirement to provide complete Social Security Number on applications

Only requires the last four digits of the signing adult’s Social Security Number

Removes collection of SSN for verification

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Privacy Protection Implementation

Effective October 1, 2010Implement as soon as possible for any

new applications All household applications and supporting

materials must be updated to reflect these changes by July 1, 2011

If unable to print all new material SA must develop alternate mechanisms for implementation

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Privacy Protection Timeline

Implementation memo issued February 15, 2011

Updated prototype applications March 2011

Eligibility guidance updated Spring 2011

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Independent Review of Applications

Section 304: Independent review of applications

Intent: Increase the accuracy of eligibility determinations in LEAs that demonstrate high levels of administrative errors.

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Independent Review OverviewRequires LEAs that demonstrate high levels

of, or a high risk for, administrative error to have an additional person independently review eligibility determinations before sending out household notifications

Establishes annual reporting requirements for each LEA required to conduct independent review of applications

State agencies must annually report independent review results to USDA

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Independent Review Timeline

Implementation memo Winter 2012

Proposed rule Winter 2012

Final rule Winter 2013

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Fines

Section 303: Fines for Violating Program Requirements

Intent: To provide an additional method for enforcing program compliance

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Fines Overview

Requires USDA to establish criteria and set the amount of fines that may be imposed upon States, SFAs or schools for gross mismanagement of any of the programs authorized under the National School Lunch Act or the Child Nutrition Act.

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Formula for Fine Limits

The amount of the fine cannot exceed:a) 1 percent of the amount of meal reimbursements

or funds for State administrative expenses earned during the fiscal year for the first finding of one or more program violations;

b) 5 percent of the funds described in (a) for the second finding of one or more program violations; and

c) 10 percent of the funds described in (a) for the third or subsequent finding of one or more program violations.

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Fines Timeline

Proposed Rule Spring 2012

Final Rule Spring 2013

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Disqualified Schools and Institutions

Section 362: Disqualified Schools, Institutions, and Individuals

Intent: To allow disqualification to apply across the Child Nutrition Programs

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Disqualification Overview

Prohibits any school, institution, or individual that is terminated from one of the Child Nutrition Programs and on a list of disqualified institutions and individuals from participating in or administering any of the Child Nutrition Programs

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Disqualification Timeline

Proposed Rule: Spring 2012

Final Rule: Spring 2013

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Ensuring the Safety of School Meals

Section 308: Ensuring the Safety of School Meals

Intent: Improve the notification and timeliness of food safety actions

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Safety of Meals OverviewImprove Hold and Recall Procedures

Address the role of processors and distributors

Work with States to increase the timeliness of food recall notifications to school food authorities

Develop guidelines with FSA and AMS for administrative holds on USDA foods

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Safety of Meals Implementation No regulations will be writtenGuidelines: Revision of “Responding to a

Food Recall” will include processors and distributors

will improve communication with States

Grants to improve State recall communications with SFAs

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Safety of Meals TimelineRevision of “Responding to a Food Recall”

is in processGrants to States to improve

communication will be available in FY 2012

Guidelines for administrative holds exist Update will include FSA

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School Breakfast Program Expansion

Section 105: Grants for expansion of school breakfast program

Intent: Expanding the school breakfast program

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Breakfast Expansion Overview

Authorizes appropriations for grants to State agencies for subgrants to local educational agencies to establish, maintain or expand the School Breakfast Program

Grants not funded through ReauthorizationThe President’s 2012 budget requests $10

million for these grants

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Organic Food Pilot

Section 210: Organic food pilot programIntent: Increase quantity of organic food

in programs through competitive grants to SFAs

This provision is not funded.

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Professional Standards for School Food Service Personnel

Section 306: Professional standards for school food service personnel

Intent: Establish professional education and training standards for certification of local school food service directors and personnel, and criteria and standards for the selection of State Directors

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Overview of Professional StandardsRequires USDA to establish:

program of required education, training, and certification for all school food service directors

criteria and standards for the selection of State directors

required training and certification for local school food service personnel

Provides funding on October 1, 2010 of $5 million; $1 million each October 1 thereafter.

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Professional Standards Implementation USDA will:

Establish an action plan and form committee to recommend appropriate standards

Enter into contract for development of training modules, as defined by the committee

Enter into contract for ongoing certification of local directors and personnel

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Professional Standards Timeline

Establish action plan and form committee to recommend appropriate standards (Spring 2011)

Proposed Rule in Fall 2012

Final Rule in Fall 2013

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