Okaloosa County BOCC — June 3, 2014 — Fully Executed FDACS Contract #018224 Agree #01-0303 Nat Sch Lun and Brkft Prog — reading text

Application or the LEA official's challenge of parents as to the accuracy of information contained in an application or the continued eligibility of any child for free or reduced-price meals, snacks, or free milk. During the appeal process and hearing procedure, the child will continue to receive free or reduced-price meals, snacks, or free milk. A record of all such appeals and challenges and their disposition shall be retained for three years after the end of the school year to which they pertain. If an audit or administrative review finding for any year has not been resolved, the records shall be retained beyond the three-year period or as long as required for the resolution of the issues raised by the audit or administrative review. Prior to initiating the hearing procedure, the parent or local school official may request a DACS-01716 01/12 Page 14 of26  conference to provide an opportunity for the parent and school official to discuss the situation, provide information, and obtain an explanation of data submitted in the Free and Reduced-Price Meal Application and decision rendered. Such a conference shall not in any way prejudice or diminish the right to a fair hearing. The LEA may require proof of family income at this time. The hearing procedure shall provide the following: I. A simple, publicly announced method of making an oral or written request for a hearing. 2. An opportunity to be assisted or represented by an attorney or other person. 3. An opportunity to examine, prior to and during the hearing, any documents and reports presented to support the decision under appeal. 4. The hearing shall be held with reasonable promptness and convenience, and adequate notice shall be given as to the time and place of the hearing. 5. An opportunity to present oral or documentary evidence and arguments supporting a position without undue interference. 6. An opportunity to question or refute any testimony or other evidence and to confront and cross-examine any adverse witnesses. 7. That the hearing shall be conducted and the decision be made by a hearing official who did not participate in the decision under appeal or in any previously held conference. 8. That the decision of the hearing official shall be based on the oral and documentary evidence presented at the hearing and made a part of the hearing record. 9. That the parties concerned and any designated representatives shall be notified in writing ofthe decision ofthe hearing official. I 0. That a written record shall be prepared with respect to each hearing, which shall include the challenge or the decision under appeal, any documentary evidence, a summary of any oral testimony presented at the hearing, the decision of the hearing official, including the reasons for the decision, and a copy of the notification to the parties concerned of the decision of the hearing official. 11. That such written record be preserved for a period of three years and shall be available for examination by the parties concerned or their representatives at any reasonable time and place during that period. M. Agrees to establish a procedure to collect monies from children who pay for their meals, snacks, or milk. The procedure will assure that no child will be made aware of the identity of children receiving free or reduced-price meals, snacks, or free milk at the time tickets or tokens are issued; at the time that the money for meals, snacks, or milk is collected; or at the time the lunch, breakfast, snack and/or milk is served. To ensure that there is no overt identification of any child receiving free or reduced-price meals, snacks, or free milk, the LEA will adopt one or more of the counting methods provided in the site information on the Child Nutrition Program (CNP) system or in state or federal policy. N. Agrees to accurately account for the number of free, reduced-price, and full-price meals/snacks served or the number of half-pints of free and full-price milk served at the point of service except in the operation of the SSO. A count of meals, snacks, or milk must be made at the point of service. There must be verbal identification of all students unless the child's picture is displayed and confirmed on a computer screen or identification card. Use of attendance records or other methods of counting meals and/or snacks is not acceptable. To ensure that there is no overt identification of any child receiving free or reduced-price meals, snacks, or free milk, the LEA will adopt one or more of the counting methods provided in the site information on the CNP system or in state or federal policy. DACS-01716 01/12 Page 15 of26 0. Agrees to allow children eligible for free and reduced-price meals, snacks, or free milk to have the same choice of meals, snacks, or milk, at no additional charge, that is available to children who pay the full price for meals, snacks, or milk. P. Agrees to develop a method that complies with civil rights requirements for the collection and reporting of racial and ethnic data for children applying for free and reduced-price meals, snacks, or free milk. Q. Understands that after failing to comply with regulations in regards to critical areas (i.e., Performance Standards I and 2) the following will be implemented: I. Failing Critical Areas on Original Administrative Review - Zero percentage of future claims will be withheld. A follow-up review will be required. 2. Failing Critical Areas on First Follow-up Administrative Review - 40 percent of future claims will be withheld until the sponsor passes the critical areas. A follow-up review will be required. 3. Failing Critical Areas on Second Follow-up Administrative Review- 60 percent of future claims will be withheld until the sponsor passes the critical areas. A follow-up review will be required. 4. Failing Critical Areas on Third Follow-up Administrative Review- I 00 percent of future claims will be withheld until the sponsor passes the critical areas. A follow-up review will be required. 5. Failing Critical Areas on Fourth Follow-up Administrative Review - The DACS will have the discretion for terminating the sponsor. COLLECTION/COUNTING METHODS In collecting payments for meals, milk, or snacks, and in distributing tickets, tokens, etc., school officials must ensure that there is no overt identification of recipients of free or reduced-price meals or snacks. Therefore, the distribution and collection for all categories of students must be done in the same location and at the same general time. The same care must be taken to prevent identification when the ticket or token is collected. Any collection system shall be designed to record the exact numbers of full-price, reduced-price, and free meals, snacks, or milk served daily. Recording and retaining these counts is a regulatory requirement. The coding used on the tickets and tokens to develop these counts must not overtly identify the children receiving free and reduced-price benefits. The claim for reimbursement must contain only the number of reimbursable meals, snacks, or milk served during the calendar month. Prior to the submission of a monthly claim for reimbursement, each LEA shall compare each school's daily claim against data that will assist in the identification of errors in the claim for reimbursement. At a minimum, the LEA shall perform two edit checks: (I) compare the number of reimbursable free, reduced-price, and paid lunches served daily to the respective number of eligible and nonparticipating recipients; and (2) compare each school's daily counts of free, reduced-price, and paid lunches to the respective numbers of children in that school currently eligible for free lunches, eligible for reduced-price lunches, and nonparticipants times an attendance factor. Claims may also be compared against other data available to the LEA that adequately meets the objective of identifying lunch counts that exceed the number of lunches served daily to children currently eligible for free and reduced-price lunches and nonparticipants. DACS-01716 01/12 Page 16 of 26 II t If the prototype edit-check worksheet provided by DACS is not used, the method used must be preapproved by the DACS. OPTIONAL PROVISIONS An LEA must notify the DACS by amending its online agreement during the annual renewal process if it intends to implement an optional provision. Provision 2 Option requires that the school serve meals to participating children at no charge but reduces application burdens to once every four years and simplifies meal counting and claiming procedures by allowing a school to receive meal reimbursement based on claiming percentages. Additional four-year extensions to Provision 2 are possible when certain conditions are met. A school participating in Provision 2 must serve NSLP and/or SBP meals to all participating children at no charge for up to four consecutive years. In return, Provision 2 offers schools a reduction in some administrative burdens associated with the distribution of free and reduced- price meal applications and the determination of household eligibility and eliminates meal counts by type for all but the base year of Provision 2. Households are not required to complete the free and reduced-price application or pay for meals. Provision 2 operates on a four-year cycle. During the first year, known as the base year of Provision 2, there is no change in traditional procedures and administrative burden. The school distributes free and reduced-price meal applications and makes eligibility determinations for participating children; takes daily meal counts by type (free, reduced-price, and paid) at the point of service or approved alternate; reports these counts for claiming meal reimbursement; and receives federal reimbursement based on these counts as it normally does. However, regardless of the children's free, reduced-price, or paid classification, all children are served meals at no charge. During years two, three, and four of the cycle, known as nonbase years of Provision 2, the school makes no new eligibility determinations and continues to serve all children meals at no charge (this would continue to be the case as long as the school operates under the provision). The school counts only the total number of reimbursable meals served each day, instead of counting meals by type. Reimbursement during these years is determined by applying the percentages of free, reduced-price, and paid meals served during the base year to the total meal count for the claiming period in subsequent years. Federal reimbursement is based on these percentages and the meals are reimbursed at the free, reduced-price, and paid rates. Because all meals are served at no charge to children in Provision 2 schools, the school is no longer receiving payment from households that would normally be paying the reduced price and full price for meals. Therefore, the school must make up the difference between federal reimbursement and meal costs. When the overall nonprofit school food service account activity is insufficient to cover program costs, the school food authority (SF A) of a school participating in Provision 2 must pay the difference from nonfederal sources. A school considering Provision 2 must evaluate whether the savings in administrative costs associated with reducing application burdens and simplifying meal counting and claiming procedures under Provision 2 offset the costs of providing meals to all