wic ebt advance planning documents

1. WIC EBT Advance Planning Documents November 13, 2008 San Diego, CA History for those of you who are not familiar with how State WIC systems get approved. Handbook 901 � lays out requirement for system planning for WIC and SNAP State agencies that estimate MIS costs to be greater than $500,000 must submit an APD to FNS for approval. Up until recently there has been a placeholder in Handbook 901 for WIC EBT. We now have a draft EBT section for inclusion in the Handbook. This presentation will discuss the EBT requirements based on this latest draft.History for those of you who are not familiar with how State WIC systems get approved. Handbook 901 � lays out requirement for system planning for WIC and SNAP State agencies that estimate MIS costs to be greater than $500,000 must submit an APD to FNS for approval. Up until recently there has been a placeholder in Handbook 901 for WIC EBT. We now have a draft EBT section for inclusion in the Handbook. This presentation will discuss the EBT requirements based on this latest draft.

3. WIC EBT Planning APD An EBT PAPD is Required for FNS Approval - regardless of dollar threshold Requires that funds be used to determine feasibility of EBT, to include paper cost analysis Can be used to hire a planning contractor The PAPD is where you tell FNS how much money you want to use for EBT planning purposes. EBT APD requirements are very similar to MIS APD requirements. There are two main differences between a PAPD for MIS and a PAPD for EBT: a PAPD is required regardless of $ threshold. Planning activities must include a feasibility study and cost analysis The PAPD is where you tell FNS how much money you want to use for EBT planning purposes. EBT APD requirements are very similar to MIS APD requirements. There are two main differences between a PAPD for MIS and a PAPD for EBT: a PAPD is required regardless of $ threshold. Planning activities must include a feasibility study and cost analysis

4. State Agency Must Determine Feasibility of EBT Cost analysis Iterative process What are current costs involved in benefit delivery? Which of these will be obsolete with EBT? What additional costs can I expect with EBT? Which costs are start-up costs versus on-going operational costs? EBT Readiness The EBT feasibility study includes a lot of things; a paper cost analysis is an important part of this. The EBT section of Handbook 901 (soon to be released) includes things to consider in looking at current costs. For example, obvious costs such as banking costs go away. New costs include obviously electronic cards. The on-going costs will be most important for determining whether you can afford EBT. EBT costs will differ depending on card technology, in-house vs. outsourced processing, etc. EBT readiness should be a component of feasibility study. ID what needs to be done to make it EBT ready. The EBT feasibility study includes a lot of things; a paper cost analysis is an important part of this. The EBT section of Handbook 901 (soon to be released) includes things to consider in looking at current costs. For example, obvious costs such as banking costs go away. New costs include obviously electronic cards. The on-going costs will be most important for determining whether you can afford EBT. EBT costs will differ depending on card technology, in-house vs. outsourced processing, etc. EBT readiness should be a component of feasibility study. ID what needs to be done to make it EBT ready.

5. State Agency Must Determine Feasibility of EBT Resources Retailer technical capabilities Retailer equipage Internal EBT processing vs. outsourcing Infrastructure Can clinics support on-line technology Card options Smartcard vs. magnetic stripe Resources � need to identify the skillset needed for EBT; do State staff have the necessary skills; will you need to procure? A project manager is required; you�ll need technical, program, and procurement help. Look at retailer capabilities; are they mostly mom & pops or chain stores; some chain stores may already have EBT integrated systems. Talk to your retailers and let them know what you are planning. Are they supportive of off-line / on-line? Retailer equipage � how many stores will need stand beside equipment? Would your state be capable of acting as it�s own contractor or would you need to outsource this capability? Do you have lots of satellite clinics? Operate out of church basements? Will they have internet access? What is the best card option for your state? Timeline � do you want study to recommend a 5-year plan?Resources � need to identify the skillset needed for EBT; do State staff have the necessary skills; will you need to procure? A project manager is required; you�ll need technical, program, and procurement help. Look at retailer capabilities; are they mostly mom & pops or chain stores; some chain stores may already have EBT integrated systems. Talk to your retailers and let them know what you are planning. Are they supportive of off-line / on-line? Retailer equipage � how many stores will need stand beside equipment? Would your state be capable of acting as it�s own contractor or would you need to outsource this capability? Do you have lots of satellite clinics? Operate out of church basements? Will they have internet access? What is the best card option for your state? Timeline � do you want study to recommend a 5-year plan?

6. Contents of PAPD Required for FNS Approval: Planning APD Contents Transmittal letter Executive summary Resource requirements Proposed budget & narrative Schedule of activities Cost allocation plan (as appropriate) Prior approval is required before you expend funds for EBT planning, i.e., feasibility study / cost analysis. The PAPD contents are same as for MIS. GO OVER BULLETS. Prior approval is required before you expend funds for EBT planning, i.e., feasibility study / cost analysis. The PAPD contents are same as for MIS. GO OVER BULLETS.

7. WIC EBT Implementation APD IAPD should cover: Plans for both pilot and statewide expansion Decisions made based on Feasibility Study Retailer Implementation Plan Integrated and stand-beside equipment; retailer certification How retailers will be funded (i.e., lanes, cost per lane, start-up, maintenance) If initial cost analysis shows EBT is affordable and feasible, submit an IAPD for FNS approval. This is where you give us the total anticipated cost of your EBT project, to include pilot and rollout. It should address decisions made based on feas. Study It should include a retailer implementation plan. This is where you figure out the funds needed for retailer integration. Legis. Prohibits states from imposing EBT costs on retailers, but retailers can voluntarily pay. If initial cost analysis shows EBT is affordable and feasible, submit an IAPD for FNS approval. This is where you give us the total anticipated cost of your EBT project, to include pilot and rollout. It should address decisions made based on feas. Study It should include a retailer implementation plan. This is where you figure out the funds needed for retailer integration. Legis. Prohibits states from imposing EBT costs on retailers, but retailers can voluntarily pay.

8. Contents of IAPD Required for FNS Approval Implementation APD Requirements: Transmittal Letter Executive Summary Resource Requirements Proposed Budget & Narrative Schedule of Implementation Activities Cost Allocation Plan, if needed Contents are similar to MIS IAPD. GO OVER BULLETS Executive summary includes activities for which funds will be used; funds needed for pilot (duration; scope); cost evaluation. Exec. Summary should include plans for statewide expansion. Budget should be broken out by quarter and by fiscal year. Include funding source. Schedule should include time for FNS review and approval of documents. Resource requirements should include staff, money needed for pilot and statewide expansion. What will SA need from FNS.Contents are similar to MIS IAPD. GO OVER BULLETS Executive summary includes activities for which funds will be used; funds needed for pilot (duration; scope); cost evaluation. Exec. Summary should include plans for statewide expansion. Budget should be broken out by quarter and by fiscal year. Include funding source. Schedule should include time for FNS review and approval of documents. Resource requirements should include staff, money needed for pilot and statewide expansion. What will SA need from FNS.

9. Contents of IAPD (continued) Required for FNS Approval Implementation APD Requirements: State / Contractor Assurances NUPC Database Capability Technical Standards Standard Business Practices Pilot Project Retailer Management Plan GO OVER BULLETSGO OVER BULLETS

10. Contents of IAPD (continued) Required for FNS Approval Implementation APD Requirements: Cost Evaluation (FNS to determine scope) Statewide Expansion Retailer Management Plan Training Plan Security Plan We�re not done yet. As mentioned earlier, cost analysis is an iterative process. As you accumulate more information, ability to predict affordability improves. FNS needs some assurance that you know what your costs are going to be and that you believe you can afford the operational costs of EBT. The retailer management plan done for your pilot project will need to be updated before you expand statewide. Training includes how all users will be trained on the system. Security includes physical, electronic and operational security, business continuity, and disaster recovery, to include PIN security. We�re not done yet. As mentioned earlier, cost analysis is an iterative process. As you accumulate more information, ability to predict affordability improves. FNS needs some assurance that you know what your costs are going to be and that you believe you can afford the operational costs of EBT. The retailer management plan done for your pilot project will need to be updated before you expand statewide. Training includes how all users will be trained on the system. Security includes physical, electronic and operational security, business continuity, and disaster recovery, to include PIN security.

11. Summary of EBT APD Requirements Planning APD Feasibility Study / cost analysis Implementation APD for pilot project implementation / expansion Retailer Management Plan for Pilot - Updated for statewide expansion Cost evaluation (scope to be determined by FNS on case-by-case basis) before statewide implementation Procurement documents Contracts APD Update - As needed GO OVER BULLETSGO OVER BULLETS

12. EBT Funding Sources Nutrition services and administration grant Regional operational adjustment Regional infrastructure Special EBT planning and implementation grants Subject to availability Process is cyclical Requests for Application (RFA) sets forth requirements

13. Questions and Answers Q: Can I apply for special EBT grant funds without an approved IAPD? A: Yes. FNS will convene a panel to review and evaluate all grant proposals. All proposals must meet the requirements specified in grant solicitation in order to be considered.

14. Questions and Answers Q: Where do I send my EBT APD documents? A: All documents should be sent to the WIC EBT Coordinator at the FNS RO. RO will forward to FNS HQ for concurrent review and approval. SSO is not part of EBT review.

15. Questions and Answers Q: What is the timeframe for FNS review and approval of EBT APD�s? A: FNS will make every effort to review and approve documents as soon as possible, but 60 days from date of receipt should be factored into your EBT project schedule.

16. Questions and Answers Q: I already have an approved APD to upgrade my WIC information system. Do I need a separate APD for EBT? A: Yes. FNS strongly recommends States to have completed there MIS project before taking on an EBT project. MIS and EBT projects should be implemented consecutively, not concurrently.