School Nutrition Programs Compliance Handbook
Chapter 5 – Determining Eligibility, Applications, and Verification
Students participating in the School Nutrition Programs [National School Lunch Program (NSLP), the School Breakfast Program (SBP), the Afterschool Snack Program, and the Special Milk Program (SMP)] are eligible for free, reduced price or paid meals based on income or categorical eligibility. Local Education Agencies (LEA) will provide applications to households. If an application is returned to the LEA, staff will review it to determine eligibility for free, reduced price, or paid meals. In lieu of an application, students may be eligible for free meals based on direct certification. Only meals (compliant with the meal patterns) served to eligible children can be claimed for reimbursement at the qualifying benefit level of that student.
Each year, in the spring, the USDA issues income eligibility guidelines used to determine student eligibility for free or reduced-price meals and free milk (contact OKDHS School Nutrition Programs for the current income eligibility guidelines) for the next school year. The guidelines are issued for the period July 1 to June 30. Only students meeting the income eligible guidelines or students categorically eligible [receive Temporary Assistance for Needy Families (TANF), Food Stamps or Supplemental Nutrition Assistance Program (SNAP), and Food Distribution Program on Indian Reservations (FDPIR) benefits] can receive free meals or reduced-priced meals. Other students must pay the designated paid price for student meals.
Local Educational Agency
In 2004, the Child Nutrition and WIC Reauthorization Act added the term “local educational agency” (LEA) to identify the entity responsible for the application, certification, and verification activities in the NSLP, SBP, and SMP. In this Chapter, LEA and School Food Authority (SFA) are used interchangeably. SFA is used for all other activities conducted in the School Nutrition Programs.
Application Process for Household
Prior to the beginning of each school year, OKDHS School Nutrition Programs will distribute household applications, a sample parent notification letter, and a sample approval letter to LEA. LEA should use this information to notify the household about the school’s participation in the National School Lunch Program (NSLP), School Breakfast Program (SBP), After School Snacks and the Special Milk Program (SMP).
LEAs should not submit the notification letter and applications to the households before July 1st to obtain current income information for the school year (July 1st through June 30th). School Food Authorities (SFA) cannot accept household applications prior to July 1 of the school year. When accepting an application, schools should review each application to ensure that it is complete. Only completed applications can go through the eligibility determination process.
During the application process, the SFA will send out parent notification letters and applications. All notifications to the households must have a no cost telephone number listed. If the telephone number is long distance, schools must provide a toll-free number or accept long-distance charges. This allows families to contact the school with questions. SFAs can mail out the information, send it in the school enrollment packet, or eail households.
Late enrollees must be provided with the information packet and household application when enrolling. If possible, the SFA should contact OKDHS School Nutrition Programs to determine if the student is receiving Supplemental Nutrition Assistance Program (SNAP) benefits.
When a student returns an application, the designated determining official will review information for eligibility. Applications are approved for free meals or reduced-priced meals in one of the two ways:
- Income eligibility, in which a determination is based on household size and income; or
- Categorical eligibility, in which children from families receive SNAP benefits (formally known as food stamps), Temporary Assistance for Needy families (TANF), Food Distribution Program on Indian Reservations (FDPIR) benefits, or the children are identified as homeless, migrant or runaway youth. Homeless and migrant students are required to show supporting documentation of student eligibility validated by a homeless or migrant liaison.
To determine income eligibility, See the current income eligibility guidelines (contact OKDHS School Nutrition Programs for the current income eligibility guidelines).
After the LEA reviews the application for completeness, and determines student eligibility, the Notice of Households Approval/Denial or Notice of Direct Certification (contact OKDHS School Nutrition Programs for the prototype eligibility determination letters) should be sent to the household notifying them of the children being eligible for free meals, or reduced-priced meals benefits. Once approved for free or reduced-priced meals, eligibility is good for the entire school year, unless verification efforts indicate that the income reported on the application was not correct, or a family reapplies for increased benefits due to a decrease in income. If the application is denied, due to income or incompleteness of the application, LEAs must notify the family in writing of their status, and their right to appeal.
Eligibility Process
LEAs are required to complete the steps in table 1 to complete the eligibility process. Federal regulation [7 CFR Part 245.6 (c) (6) (i)] requires households to be notified of eligibility determinations within 10 operating days of receiving completed household applications.
Table 1: Eligibility Process |
· Send press release to local media (see Chapter 3) · Send Notice of school participation in USDA Child Nutrition Programs [National School Lunch Program (NSLP), the School Breakfast Program (SBP), and the Afterschool Snack Program] to the Household · Provide applications and Sharing Information notices · Review and confirm eligibility using income guidelines or other documentation · Send Notice of Households of Approval and Denial of Benefits (contact OKDHS School Nutrition Programs for the prototype eligibility determination letters) or Notice of Direct Certification · Immediately provide benefits after application approval · Provide applications throughout the year, when requested. · Allow families to apply or reapply for benefits anytime during the year. · Categorize student eligibility on the Benefit Issuance Document (BID) or Master List. Contact OKDHS School Nutrition Programs to request a prototype BID compliant with federal requirements. |
Foreign Language Translations
When the school has a significant number of students enrolled whose primary language is not English, the Local Education Agency (LEA) must provide written material and household applications in the other language. A variety of foreign language translations are available upon request to OKDHS School Nutrition Programs, or on the USDA’s website at:
In addition, LEAs may: allow bilingual personnel to assist with the application process or find other cost-effective means for providing language services. Providing language services may require pooling resources offered by the local community, state agency, or federal agencies.
When a LEA enlists the services of an interpreter, staff, contractor, or volunteer, the LEA must ensure that the interpreter keeps information confidential. See Chapter 3: Civil Rights for further guidance on Limited English Proficiency.
Note: Local Education Agency (LEA) and School Food Authority (SFA) are used interchangeably. |
Students with Prior Benefits
Children who received free or reduced-priced meals in the prior school year and have not completed an application for the current year are eligible to receive the same benefits from the prior school year for the first 30 operating days (beginning with the first day of school) of the school year [per federal regulation 7 CFR Part 245.6 (c) (6) (i)]. This includes direct certification, categorically eligible and income applications. To continue benefits after the first 30 operating days, an approved household application for the current school year must be on file or have a direct certification match for the current school year. If a household’s benefits change, the new benefit must begin on the date the eligibility determination was made.
Table contains examples of prior school year’s benefits being provided to returning students for the first 30 operating days.
Table 2: Examples for Providing Meals to Students with Prior Eligibility Benefits During the First 30 Operating Days of the School Year |
· Example 1: Tom received reduced-priced meals last year. His family submitted a new application on the 3rd day of school, and it was approved on the 3rd day. Tom is now eligible for free meals based on the family’s income. Tom should have received reduced-priced meals for the first 2 days of school and should be receiving free meals on the third day based on his income eligibility. · Example 2: Jenny received free meals last year. For the current year, she received free meals for the first 30 operating days. Jenny’s household has not submitted a new application. On the 31st operating day, Jenny is charged paid meals at the paid student meal price for her meals. · Example 3: Taylor received free meals last year. This year, her household submitted a new application on the 15th day of school. The application is approved for reduced price meals. Taylor will receive free meals for the first 14 days. On the 15th day, Taylor will begin receiving reduced-priced meals. Taylor does not receive free meals for the remaining 15 days of the first 30 days because the new application determination supersedes the carryover eligibility. |
Students without a new eligibility determination on the 31st operating day must have their eligibility determination changed to paid student meals.
Temporary Income
School Food Authorities (SFA) no longer need to approve zero income applications as temporary due to the year-long approval of applications. SFA staff should review the income information on the application. If the family is receiving temporary benefits or has zero income, the application is approved for free for the entire year. Exception to the year-long approval is when an application is selected for verification and the income information indicates that the family was not or is not entitled to free or reduced-priced meals.
Exchange Students
Exchange students are not considered a household of one. It is sponsoring families’ responsibility to pay for meals for exchange students. However, sponsoring families may be eligible for free or reduced-priced meals based on income and household size. Sponsoring families should complete a household application for free and reduced-priced meals and list all family members, the exchange student, and all household income.
Nonpricing Schools
Nonpricing School Food Authorities (SFA) cannot claim all children for free meals simply because the SFA does not charge for meals. Applications must be provided to the households, and direct certification must be conducted with the state agency (OKDHS). Students can only be claimed based on the approved eligibility category (free meals, reduced-priced meals, or paid meals). The application process and direct certification applies.
Residential Child Care Institutions (RCCI) that accept day students that do not live on site are required to complete the application and direct certification processes for those day students only. Residential students are documented on the RCCI benefit issuance document or master list.
Note: Local Education Agency (LEA) and School Food Authority (SFA) are used interchangeably |
Exclusion of Housing Allowance for Military Households in Privatized Housing
Housing allowance for military personnel living in privatized housing is permanently excluded from income when determining household eligibility for free and reduced-priced meals or free milk in all USDA child nutrition programs [National School Lunch Program (NSLP), the School Breakfast Program (SBP), the Afterschool Snack Program, and the Special Milk Program (SMP)].
“Privatized housing” refers to the Military Housing Privatization Initiative, a program operating at a number of military installations. This initiative puts the operation of military owned housing under private contractors. Under this privatization initiative, a housing allowance appears on the leave and earnings statement of service members living in privatized housing. It is important to note that this income exclusion is only for service members living in housing covered under the Military Housing Privatization Initiative. It is not an allowable exclusion for households living off-base in the general commercial/private real estate market.
Exclusion of Military Combat Pay
Combat pay is defined as an additional payment that is received by the household member who is deployed to a designated combat zone. Table 3 contains the conditions where combat pay is excluded from household income.
Table 3: Conditions Where Combat Pay is Excluded from Household Income |
Combat pay is excluded from household income if it is:
|
Combat pay received by service members is normally reflected in the entitlements column of the military Leave and Earning Statement (LES). Information regarding deployment too, or service in a combat zone may also be available through military orders or public records on deployment of military units.
When determining income, count the portion of the deployed service member’s income made available to the household. Additionally, deployed service members count as a member of the household and must be listed on the application.
Categorically Eligible
Categorically eligible children are those who are automatically eligible for free benefits because they receive Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), Food Distribution Program for Indian Reservations (FDPIR) or other qualifying benefits. School Food Authorities (SFA) must obtain an application with current information identifying households as categorically eligible. Households receiving SNAP, TANF or FDPIR must complete an application and list a current case number to be eligible for free meals.
Foster children who are placed in homes by state agencies (such as OKDHS) or the courts are categorically eligible for free meals and do not have to complete an application. However, absent of an application, SFAs’ staff must communicate with the state or local child welfare agency to obtain documentation of child’s status. If staff are unable to obtain documentation, an application must be on file.
Homeless children must be determined by the school district’s homeless liaison or by the director of a homeless shelter.
Migrant children are determined by the State or local Migrant Education Program (MEP) coordinator.
Runaway child is receiving assistance from a program under the Runaway and Homeless Youth Act and is identified by the local education liaison. Schools can contact the Oklahoma Department of Education about the status of homeless and migrant children. All LEAs must have an assigned liaison to coordinate with other agencies in determining the status of homeless, migrant, and runaway students. These children are directly certified when supporting documentation is available.
Table 4 contains contact information for additional information and supporting documentation for homeless, migrant, and runaway children.
Table 4: Contact Information for Agencies to Obtain Additional Information and Supporting Documentation for Homeless, Migrant, and Runaway Children |
For additional information and supporting documentation for homeless, migrant, and runaway children contact the following agencies:
|
Household of One
Foster children recognized by OKDHS, and children who reside in a Residential Children Care Institution (RCCI) are considered a household of one. The household income is not considered when approving the application for benefits. However, if a student in foster care or a student in an RCCI has steady income, it must be reported on the application for free and reduced-priced meals to determine eligibility.
When a family member has legal guardianship of a child and the child is not in the legal custody of a child welfare agency or the court, applications cannot be approved categorically for free meals. Household members must complete the application and submit income information or a current Supplemental Nutrition Assistance Program (SNAP), or Temporary Assistance for Needy Families (TANF) case number.
Independent Reviews
Local Education Agencies (LEA) that demonstrate high levels of, or a high risk for administrative error associated with certification and benefit issuance are required to conduct a second review of applications. A second review of applications requires a re-evaluation of the eligibility determination made by the original determining official, based on the information provided by the household on the application. The second review must not be conducted by the determining official, as well as not being conducted by the hearing official.
The second review must first determine whether the application is complete, i.e., the application contains the signature of an adult household member, the last four digits of a social security number (or an indication of “none”), names of all household members including the student for whom application is made, income amount (received by each household member identified by the individual who receives it), income source, and income frequency or categorical information, if applicable. The second review must also confirm the applications were correctly approved based on current income eligibility guidelines or categorical eligibility information, as applicable, and the master list (benefit issuance document) or roster of student names correctly records the child’s eligibility.
The second review must be conducted by an independent individual that did not make the original eligibility determination. This individual is not required to be an employee of the LEA but must be trained in how to make application determinations. Individuals who conduct a second review of applications are subject to the disclosure of confidential information requirements set forth in federal regulation [7 CFR Part 245.11], as are all individuals who review initial eligibility applications.
The second review of applications must be done before the household is notified of eligibility and must not result in the delay of an eligibility determination. LEAs required to conduct a second review of applications are still required to notify households of the child’s eligibility determination within 10 operating days of receiving the application [as required by federal regulation 7 CFR 245.6 (c) (6) (i)], so the independent review must be conducted timely.
Selected LEAs may be required to conduct a second (independent) review of applications annually until the state agency (OKDHS School Nutrition Programs) determines that LEA-provided documentation or data obtained during an administrative review demonstrates that no more than 5 percent of reviewed applications required a change in eligibility determinations.
Table 5 contains the two criteria for the selection of LEAs demonstrating a high level of, or at risk for certification errors for independent review (or second review) of applications.
Table 5: Criteria for the Selection of LEAs (SFAs) for Independent Review of Applications |
OKDHS School Nutrition Programs will require Local Education Agencies (LEA) to conduct independent (second) review of household applications if the following criteria are met: 1. All LEAs with 10 percent or more of certification/benefit issuances in error, as determined by the state agency (OKDHS School Nutrition Programs). 2. LEAs that state agency (OKDHS School Nutrition Programs) considers at risk for certification error by not selected under criterion 1. OKDHS School Nutrition Programs will require LEAs with a 5 – 10 certification/benefit issuance error to conduct independent reviews if they: a. Are new to the National School Lunch Program (NSLP) and School Breakfast Program (SBP) b. Have hired new administrative staff c. Implemented a new electronic system |
LEAs subject to the independent (second) review of applications are required to submit to the state agency (OKDHS School Nutrition Programs) an annual report detailing the number of free and reduced-priced applications subject to a second review, the number and percentage of reviewed applications for which the eligibility determination was changed and a summary of the type of changes that were made. The information reported to the State agency must be as of October 31st. This means LEAs will only need to report on applications for the current school year that have been reviewed on or before October 31st, a date consistent with already existing reporting requirements. OKDHS School Nutrition Programs will provide a LEA second review of application form to be used to report this data.
Note: Local Education Agency (LEA) and School Food Authority (SFA) are used interchangeably |
Direct Certification
Direct certification is the process of certifying categorically eligible students for free meals without requiring a household application. Direct certification requires coordination with state or federal agencies to identify categorically eligible students. Local Education Agencies (LEA) receiving documentation from the state agency (OKDHS School Nutrition Programs) of categorically eligible students will certify those students for free meals instead of requiring a household application.
Currently, LEAs are required to conduct direct certification for students receiving Supplemental Nutrition Assistance Program (SNAP) benefits and Temporary Assistance for Needy Families (TANF) benefits. OKDHS School Nutrition Programs (SNP) require LEAs to provide a list of students. This list is required to be provided as an Excel file. Once received from the LEA, OKDHS SNP will take the information provided and send it to the SNAP office to match data with the SNAP database. Once children are identified receiving SNAP benefits, or TANF benefits, OKDHS SNP will provide each LEA with the names of students directly certified for free meals. The LEA is required to maintain the list and provide those students and other children living in the same household free meals for the school year. The siblings of the household should be added to the master list (benefit issuance list).
To identify as many students as possible for free meals, LEAs are required to conduct direct certification a minimum of four times a year. For each SFA, the initial Excel spreadsheet listing each enrolled student’s name is sent to the SNAP office by August 1st of each school year. This allows the SNAP office enough time to run a match. Thereafter, the LEA will send data for individual students as they enroll in school. Prior to the first day of school, these names will be updated to the student spreadsheet and routinely matched throughout the year. As new students enroll, the LEA should send new student information to OKDHS SNP to determine if there is a match in the SNAP database. LEAs are required to submit new data at least four times a year, see table 6 for the dates student list must be submitted to OKDHS SNP.
Table 6: Direct Certification List Due Dates |
List of students enrolled must be submitted to OKDHS School Nutrition Programs on the following dates each school year:
|
Once a student is directly certified, LEAs must update records to ensure benefits are provided. If a previous application is on file, schools should move that application to the direct certification category. LEAs are required to send the written notification of direct certification [as required by federal regulation 7 CFR 245.6 (c) (6) (ii)] to the households of being certified for free meals (contact OKDHS School Nutrition Programs for a prototype notification of direct certification letter). Children directly certified should be placed on file along with the household applications and those names should be placed on the master list (benefit issuance document) with a notation of being directly certified. If a child with an application is directly certified prior to the verification process, that application is not subject to verification.
Direct certification does not prevent families from completing household applications. If a student is not on the direct certification list and completes an application indicating the household is receiving SNAP and Temporary Assistance for Needy Families (TANF) benefits, the application is approved at face value. It may be that another family member is receiving benefits, or the name is different at the state office (OKDHS SNAP office). Because the name of that student is not on the direct certification list, that application is subject to the verification selection process.
Homeless students, migrant students, and runaway students are considered categorically eligible and can be directly certified if certified by the LEAs liaison and supporting documentation is on file. However, if their names are directly certified for SNAP benefits, they are counted as directly certified and updated on the master list (benefit issuance document).
Although challenging in private schools, the goal of direct certification is to ensure that all children who are eligible for benefits receive benefits without having to complete an application. Some students will be identified as directly certified after they have already completed an application. These children are still added to the direct certification numbers for statistical reasons.
Note: Local Education Agency (LEA) and School Food Authority (SFA) are used interchangeably |
Community Eligibility Provision (CEP)
Community Eligibility Program (CEP) is an alternative to household applications for free and reduced-priced meals in Local Educational Agencies (LEA) in high poverty areas. To be eligible, LEAs and must: meet a minimum level (25%) of identified students for free meals in the year prior to implementing the CEP; agree to serve free lunches and breakfasts to all students; not collect free and reduced price applications from households in participating schools; and agree to cover with non-Federal funds any costs of providing free meals to all students above amounts provided in Federal assistance [per federal regulation 7 CFR Part 245.9 (f)]. Reimbursement is based on claiming percentages derived from the identified student percentages.
The identified students, per federal regulation [7 CFR Part 245.9 (f) (1) (ii)] are students certified for free meals through means other than individual household applications; this primarily includes students who are directly certified for free meals based on their participation in the Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), and the Food Distribution Program on Indian Reservations (FDPIR). It also includes homeless, runaway, Head Start, and migrant youth. It does not include students who are categorically eligible based on submission of a free and reduced-priced meals application [per federal regulation 7 CFR Part 245.9 (f) (1) (ii)].
The claiming percentages established for a school in the first year may be used for a period of four school years and may be increased each year if the identified student percentages rise for the LEA. The percentage of identified students is multiplied by a factor of 1.6 to determine the total percentage of meals reimbursed at the Federal free reimbursement rate (The percentage derived from this calculation must not exceed 100 percent). The remaining percentage of meals, equaling up to 100 percent, is reimbursed at the Federal paid reimbursement rate. Schools apply the claiming percentages to the total number of lunch and the total number of breakfast meals served to determine the number of meals claimed at the free and paid rates.
A LEA may participate in the CEP for all sites in the LEA or only some sites, depending on the eligibility of individual sites and financial considerations based on the anticipated level of federal reimbursement and other non‐Federal support that may be available to cover any meal costs in excess of the federal reimbursement. Participating sites that continue to meet the minimum direct certification percentage may immediately begin another four‐year cycle after the initial cycle concludes. For participating sites falling below the minimum percentage at the end of their four‐year cycle, there is the possibility to continue to participate for a “grace year [as permitted by federal regulation 7 CFR Part 245.9 (f) (4) (ix)].” A participating LEA may stop participating in the CEP during the four‐year cycle by notifying the State agency (OKDHS School Nutrition Programs) no later than June 30 of the school year prior to when they want to return to normal counting and claiming procedures. This will allow sufficient time for the LEA to prepare for the certification process in the coming school year. Contact OKHS School Nutrition Programs to determine eligibility for CEP.
Note: Local Education Agency (LEA) and School Food Authority (SFA) are used interchangeably |
Use of Household Applications
A LEA gathering income information from all households for purposes other than the School Nutrition Programs (SNP) cannot use the household applications. If a school meal application is used for non-program use, it cannot be labeled as an application for benefits under the school meals or milk program or give any indication that such benefits are contingent upon a household returning an application. LEAs cannot require that a family return an application to get benefits under SNP. LEAs cannot use funds from the non-profit school food service account to pay the costs associated with gathering income information not related to school food service.
Other Uses of Information from the Application
Local Education Agencies (LEA) may only use the information provided by families to determine eligibility for meal or milk benefits and verification of eligibility. LEAs planning to disclose children’s eligibility status for purposes other than determining and verifying free and reduced-priced eligibility must inform households of this potential disclosure. If the potential disclosure is not connected with approved government programs or children nutrition programs, LEAs must get parental consent prior to the disclosure [per federal regulation 7 CFR Part 245.6 (h)]. LEAs that plan to disclose information to Medicaid or the State Children’s Health Insurance Program (SCHIP) must notify households of this disclosure and give households the opportunity to decline the disclosure [per federal regulation 7 CFR Part 245.6 (h)]. This notification is included in the application packet provided to the LEA each year.
For further guidance on the release of household information, refer to USDA guidance Eligibility Manual for School Meals, Section 5: Confidentiality and Disclosure which provides instructions regarding what kind of information LEAs may provide and to what agencies or programs. There are specific guidelines for releasing information, the kind of information that can be released and to which agencies. The penalties for improper disclosure of information are a fine of not more than $1000 or imprisonment of not more than one year, or both for publishing, divulging, disclosing, or making know in any manner or extent not authorized by federal law, any eligibility information. Be sure to read guidance prior to releasing information.
Benefit Issuance Document (Master List)
The Benefit Issuance Document (BID), also known as the master list, identifies students eligible for free and reduced-priced meals. This is the link between the application process and how a meal will be claimed for reimbursement. School Food Authorities (SFA) must keep this document on file and must continually document the status changes of students approved for free and reduced price meals. New students, discharged students, and students changing from reduced to denied, reduced to free, free to reduced, or free to denied are documented on the BID. OKDHS School Nutrition Programs has a BID for schools available upon request.
Benefit Issuance Document for Residential Child Care Institutions (RCCI)
RCCIs record student status and income on a Benefit Issuance Document (BID) or Master list for RCCI available upon request from OKDHS School Nutrition Programs. Additional information such as intake dates, discharge dates, and student income is recorded to identify student status. All information must be completed prior to claiming a student’s meal for reimbursement. Students should be added to the sheet during the intake process. Discharge dates should be updated when children leave the facility.
Verification
Each year, Local Education Agencies (LEA) must confirm the eligibility of students receiving free and reduced-priced meals. Depending on LEAs will select a percentage of applications using one of three methods, notify the selected families, and verify the income reported on their applications. LEAs with a non-response rate of 20% or more are required to use the standard (error-prone) method to select applications. If verification in the prior year resulted in a nonresponse rate less than 20%, the LEA may use one of the alternate methods, random or focused, for the current year to select applications. LEAs cannot verify 100% of the application. LEAs must complete the verification process by November 15th. For additional guidance and forms on the verification process, contact the OKDHS School Nutrition Programs.
Agencies that must conduct the annual verification process:
· Schools that claim free, reduce-price and paid meals
· RCCIs who have nonresidential students attending school during the day (only complete process for day students).
· Non-pricing schools who receive free and reduce-price reimbursement (School is excluded if 100% of the student population is homeless).
Note: Local Education Agency (LEA) and School Food Authority (SFA) are used interchangeably |
Selecting a Sample Method
Prior to selecting a method, School Food Authorities (SFA) should review the prior school year’s verification non-response rate. The non-response rate is the percentage of households that failed to provide the requested verification information. Table 7 contains examples of sample method selection. If a SFA has a 20% non-response rate or greater in the prior school year, the school is required to use the standard method to conduct verification [as required by federal regulation 7 CFR Part 245.6a (d) (2)]. If the school has a non-response rate is less than 20%, the school may use the random method for verification or alternate one.
Table 7: Examples of Sample Methods Selection |
Below are some examples of sample method selections:
|
Foster children, homeless children and students with a current letter of direct certification on file are not subject to verification.
Regardless of method, SFAs are required to select three percentage of the approved household applications, no more or no less.
Selecting Three Percent
Whether a School Food Authority (SFA) is using the standard method, alternate one, or alternate two method for selecting household applications to verify, schools are required to select only 3% of the approved applications on file on October 1st [as required by federal regulation 7 CFR Part 245.6a (c) (3) (i)]. Table 8 is a chart containing how many applications are three percent based on the number of applications on file as of October 1st.
Table 8: Verification – Three Percent |
|
Number of Applications on File* |
Number of Applications to Verify** |
1 – 33 |
1 |
34 – 66 |
2 |
67 – 100 |
3 |
101 – 133 |
4 |
134 – 166 |
5 |
167 – 200 |
6 |
*The number of approved applications on file as of October 1st of the school year. **The three percent of the approved applications is rounded up to the next whole number. |
|
Standard Method
If a School Food Authority (SFA) must use the Standard method (also referred to as error prone), the SFA must separate the applications that fall within $100 above or below the allowable monthly income eligibility guidelines, or $1200 monthly, for free and reduced-priced meals. Best practice is to conduct this sorting after the students are added to the benefit issuance document. The equivalent thresholds for weekly, biweekly, and twice monthly incomes are determined by dividing the annual limit by the number of times per year the income is received. Among these applications, the school must select randomly 3% of the applications to verify (on file on October 1st). If a school does not have enough error-prone applications to equal 3% of all applications, the school must randomly choose enough of the non-error-prone applications to make up 3%.
When does an SFA need to use the standard method based on non-response rate? A SFA must use the standard method if verification from the pervious school year had non-response rate of 20% or more. Table 9 demonstrates when the standard method needs to be used based on non-response rate.
Table 9: Verification – Non-Response |
Number of applications selected for verification |
Number that did not respond as of last Nov. 15 |
Standard Method Determination |
0 (failed to conduct verification) |
0 |
Must complete standard |
1 |
1 |
Must complete standard |
2 |
1-2 |
Must complete standard |
3 |
1-3 |
Must complete standard |
4 |
1 |
Must complete standard |
5 |
1 |
Must complete standard |
6 |
1 |
Can use Alternate One |
OKDHS School Nutrition Programs will notify SFAs when the use of the standard method is required.
Alternate-one: Random Method
Only SFAs that have a less than a 20% non-response rate in the prior school year may select the random method. Schools using this method must determine procedures to randomly select household applications [per federal regulation 7 CFR Part 245.6a (c) (4) (i)]. Example: A SFA may put names in a hat and randomly draws out 3%.
SFAs cannot choose applications “for cause” during this process. Verification for cause is not part of the verification process.
Alternate-two: Focused Method
Under Focused verification, the Local Education Agency (LEA) must verify 1 percent or 1000 of the total number of approved applications. Plus, the lesser of .5 percent or 500 of the total number of applications approved based on categorical eligibility. Children whose families receive benefits from the Food Stamp Program, Food Distribution Program on Indian Reservations (FDPIR), or State programs funded through Temporary Assistance for Needy Families (TANF) are categorically eligible for free meals. Students with Direct Certification Letters are exempt from verification.
Under focused sampling, the Sponsor must verify a minimum of:
a. The lesser of 1% or 1,000 of the total number of approved applications (both income and categorical). The sample selected from income applications with total
household income within $100 monthly or $1,200 annually of the income eligibility guidelines for free and reduced price meals; PLUS
b. The lesser of .5% (one half of 1%) or 500 of the total number of applications that were approved based on categorical eligibility, selected from applications with a SNAP or TANF number. Always round up to the next whole number when determining the correct number of applications necessary for verification.
If a LEA does not have enough applications within the income range of $100 monthly of the income eligibility guidelines, the school may select additional applications randomly to get the required percentage.
SFAs cannot choose applications “for cause” during this process. Verification for cause is not part of the verification process.
Confirmation Review
School Food Authorities (SFA) are required to conduct a confirmation review on all applications selected for verification prior to contacting the household to request income information. This process is to review the accuracy of the approval process and to amend application errors prior to notifying the family. If administrative errors are found, the school should correct the application prior to contacting the family. The confirming official cannot be the determining official. Also, the hearing official cannot be the confirming official due to being responsible for reviewing the decisions made by both the determining and the confirming official and for hearing the appeal of the family. Table 10 contains the processes for the different outcomes of the confirmation review for applications subject to verification.
Table 10: Processes for the Outcomes for the Confirmation Reviews for Applications |
Below are the processes for the different outcomes for the confirmation reviews for the household applications subject to verification:
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Written notification of adverse action is a required notice to the household stating the verification process failed to confirm the original eligibility determination causing the household to have their free or reduced priced meal benefit reduced [as required by federal regulation 7 CFR Part 245.6a (j)]. This written adverse notice is required to inform the household the benefit reduction will not occur for 10 days, to permit the households with the opportunity to appeal [as required by federal regulation 7 CFR Part 24536a (j)]. |
Replacing an application
After the confirmation review, SFAs may replace up to 5% of the applications when the SFA believes that the households will not respond satisfactorily to the verification request [as permitted by federal regulation 7 CFR Part 245.6a (e) (2)]. When replacing an application, SFAs must use the same verification method. SFAs must conduct a confirmation review on the newly selected applications. When calculating 5%, be sure to round up to the next whole number.
Household Notification of Verification Process, Toll Free Phone Number, and Follow-Ups
All households selected for verification must be notified in writing [as required by federal regulation 7 CFR Part 245.6a (f) (1)]. Use letter “We Must Check Your Application (available from OKDHS School Nutrition Programs)”. Household income documentation for the verification process is required to be within 180 days from the date of application is required to be submitted to the Local Education Agency (LEA) [as required by federal regulation 7 CFR Part 245.6a (g) (5)].
The LEA must provide families with a toll free number to contact the school. If a toll-free number is not available, LEAs must allow households to reverse the charges. The phone call should be no-cost to families.
In addition, the school must attempt to contact in writing or by phone families who do not respond by the pending deadline and document all attempts. Follow-up attempts may be conducted by a 3rd party contractor.
Household notification and responses must be completed each year by November 15. Households who do not respond to the verification process must be given notice that benefit will change to paid within 10 days and hearing procedures must be provided with the written notification (see notice of adverse action section for more information). See the verification letter We Have Checked Your Application (available from OKDHS School Nutrition Programs). Families who do not respond to verification must be terminated within the required timeline [as required by 7 CFR Part 245.6a (j)].
Notice of Adverse Action “We have Checked Your Application”
All households for whom benefits are to be reduced or terminated must be given 10 calendar day’s written advance notice of the change. A prototype notice of adverse action (the “We Have Checked Your Application” letter) is available upon request from OKDHS School Nutrition Programs. The first day of the notice period is the day the notice is sent. The notice must advise the household of the following [as required by federal regulation 7 CFR 245.6a (j) (1) through (5)]:
1) Notification of the change in benefits.
2) The reasons for the change in benefits.
3) The household has a right to file an appeal the change in benefits.
4) Appeals must be filed within the 10 calendar day advance notice period to ensure continued benefits while awaiting a hearing and decision.
5) The instructions on how to appeal.
6) The household may reapply for benefits at any time during the school year; and
7) The SNAP, FDPIR or TANF households may submit an application containing household names and income information and provide written evidence for current household income.
Benefits During an Appeal
If a household appeals the decision of the reduction of benefits within the 10 calendar days’ timeline, the SFA must continue to provide benefits in which the child was originally approved until a final determination is made [as required by federal regulation 7 CFR Part 245.7 (b)]. The SFA may continue to claim reimbursement at the level originally approved while the appeal is open.
Once the hearing official makes a ruling, the following must be done
- If the ruling confirms the verification process the reduction in the household’s benefit must take place no later than 10 days after the decision [as required by federal regulation 7 CFR Part 245.7 (b) (1)].
- If the ruling confirms the original eligibility determination, then the benefit (free or reduced price meals) is not changed.
Hearing Procedures
The hearing procedures are found in the LEA’s free and reduce price policy statement.
Be sure to list the name of the hearing official on the notice “We Have Checked Your Application” letter.
Reapplying for Benefits
Households are affected by reduction or termination of benefits due to the annual verification process due to failure to provide documentation of income. These households may reapply for benefits at any time during the same school year. However, if these households do reapply, they are required to provide documentation of household income at the time they submit the application. The documentation of household income must be within 180 days of the date on the application [as required by federal regulation 7 CFR Part 245.6a (g) (5)]. These household applications are not considered complete until documentation of household income is submitted.
Direct Verification
Prior to contacting a household selected for verification, LEAs may contact government agencies to confirm current income information. If the income information is confirmed by a government agency, the family does not have to be contacted. If the agency cannot confirm income, the LEA must notify the family for verification. Information used to verify applications cannot be over 180 days prior to the date of the application. Table 1 contains the agencies that may be contacted for direct verification.
Table 11: Agencies that Can Be Contacted for Direct Verification |
The following agencies may be contacted for direct verification:
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OKDHS is required to provide information for SNAP and TANF. Other agencies are governed by specific rules when releasing public records. |
Beginning Verification Prior to October 1
The National School Lunch Act states that verification must be based on a school’s sample size as of October 1st of each school year. However, FNS regulation [7 CFR 245.6a (b) (3)] permits Local Education Agencies (LEA) to begin verification once they begin the application approval process for the current school year and have approved applications on file. This means LEAs are not required to wait until October 1 to initiate the verification process and may instead choose to begin conducting verification once they begin the application approval process for the current school year. “However, the final required sample size must be based on the number of approved applications on October 1 [as required by federal regulation 7 CFR Part 245.6a (b) (3)].
For some LEAs, particularly those expecting large verification sample sizes, starting earlier than October 1 may ease the administrative burden associated with the verification process by distributing tasks and responsibilities over a longer period of time. In practice, conducting verification on a rolling basis (e.g., weekly or monthly) helps LEAs mitigate a possible rush of document processing and follow-up communications that may occur when sampling and household outreach occur at a single point in time. For these reasons, FNS encourages LEAs to consider utilizing rolling verification.
Please note that all existing statutory and regulatory requirements continue to apply when using this approach, but the timing and sampling process is tailored to accommodate the extended timeframe during which verification is being conducted. When beginning verification prior to October 1, LEAs must:
- Decide how often to sample applications,
- Include in each sample pool only applications approved since the last sample was selected, and
- Select either 3 percent or 1.5 percent of approved applications, as required by the sampling method, each time.
School Food Authority (SFA) Verification Collection Report
SFAs must document the results of the verification process on the School Food Authority Verification Collection Report form (FNS 742) and submit to OKDHS School Nutrition Programs by November 15, each year. Contact OKDHS School Nutrition Programs for this form. Verification of eligibility is not required for children:
1) Children who have been certified through direct certification,
2) Children residing at an RCCI facility.
3) Children who are certified as homeless, migrant, or runaway youth.
All SFAs are required to fill out the USDA FNS 742 Verification Collection Report form during the annual verification process. This includes SFAs that do not take household applications.
OKDHS School Nutrition Programs has detailed instructions to assist with filling out the USDA FNS 742 Verification Collection Report form. To request these detailed instructions email AFS.School.Nutrition.Programs@okdhs.org.
Verifying Applications for Cause
School Food Authorities (SFA) have the right to verify income for cause anytime during the school year if it is not part of the regular verification process [per federal regulation 7 CFR Part 245.6a (c) (7)]. SFAs have an obligation to verify applications that provide questionable or incorrect information such as household size, income, and categorical eligibility information. However, if a family correctly completed an application resulting in free or reduced-priced benefits and the family’s income changes in the year, the family is not required to report to report the change. Verifying for cause should be based on substantial information that may indicate that a family is not eligible for free or reduced-priced meals. For instance, the SFA may have current income information on file that indicates a student is not entitled to free or reduce price meals, therefore, it may verify an application for cause if the information on the application is different from the information reported to the SFA.
Chapter 5 Resources
The resources listed in table 12.1 are available upon request to Oklahoma Human Services School Nutrition Programs by email at AFS.School.Nutrition.Programs@okdhs.org.
Table 12.1: Chapter 5 Resources |
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Prototype Household Application |
Prototype eligibility determination letters |
Current Income Eligibility Guidelines |
USDA FNS 742 Verification Collection Report Form |
OKDHS School Nutrition Programs’ Detailed Instructions for the USDA FNS 742 Verification Collection Report form |
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The resources listed below in table 12.2 are available online.
Table 12.2: Chapter 5 Online Resources |
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USDA Household Applications & Application Resources: |
USDA Translated Household Applications: https://www.fns.usda.gov/schoolmeals/model-application/translations |
USDA Eligibility Manual for School Meals: Determining and Verifying Eligibility |
USDA Verification Tool Kit: |
Income eligibility Guidelines: https://www.fns.usda.gov/schoolmeals/income-eligibility-guidelines |
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