Performance reporting system handbook : food stamp program

              ft '1 <;5. 'I : F5 - I
FNS-FS-1
UPDATED DECEMBER 1, 1975 JULY 1975
DRAFT
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MAR 1 1976
UNIVERSITY OF NORTH CAROLINA
FOOD STAMP PROGRAMGREENSBORO
Perlormanee D4471!
Reporting
System
Handbook
FOOD STAMP DIVISION
FOOD 81 NUTRITION SERVICE, U.S . DEPARTMENT OF AGRICULTURE , WASt-!INGTON, D.C., 20250
7000
7010
7020
7025
7030
7033
7034
7040
7041
7042
'I' 7050
7060
7070
7080
7090
7100
7101
7102
7110
7115
7120
7200
7201
7202
7203
7210
7212
7213
7215
7218
7230
7300
7320
7330
7400
7410
7420
7430
.7440
7450
TABLE OF CONTENTS
GENERAL PROVISIONS
PURPOSE
BACKGROUND
DETERMINATION OF EFFICIENCY AND EFFECTIVENESS
STATE MONITORING AND REPORTING RESPONSIBILITIES
AUDITS
PERSONNEL
EFFICIENCY AND EFFECTiveNESS COORDINATOR
STATE AGENCY REVIEW STAFF
CONTRACTUAL AGENTS
PLAN OF OPERATION
DEFINITIONS ~
RETENTION OF RECORDS
FEDERAL IDNITORING Of STATE SYSTEMS
IMPLEMENTATION OF EFFICIENCY AND EFFECTIVENESS REVIEW PROCEDURES
STATE AGENCY OPERATIONS REVIEW
OBJECTIVES OF THE REVIEW
FREQUENCY OF REVIEW
REVIEW PROCESS
Content of Review
REPORTING REQUIREMENT
PROJECT AREA OPERATIONS REVIEW
OBJECTIVES OF REVIEW
FREQUENCY OF REVIEW
REVIEW SCHEDULE - TIMETABLE
REVIEW PROCESS
Establishment of Administrative Units
Content of Review
Certification Practices
Issuance Practices
REPORTING REQUIREMENTS
DATA ANALYSIS AND EVALUATION
DEFINITIONS
APPROACH
PREPARATION AND SUBMITTAL OF REPORTS
TIMETABLE FOR PERFORMANCE OF REVIEWS
PERSONNEL REPORTS
REPORTS AND CORRECTIVE AQ'ION PLANS FOR LARGE PROJECT AREAS
QUALITY CONTROL FINDINGS
SEMIANNUAL PERFORMANCE REPORTS
3
7454 Report of Review Findings
7455 Corrective Action Plans
7456 Ccrrective Action Status Report
7457 Semiannual OUtreach Report
7460 DUE DATES FOR SUBMITTAL OF REPORTS
~ DETERMINATION OF EFFICIENCY AND EFFECTIVENES~
7510 THE DETERMINATION PROCESS
7511 Informal Warning System
7513 Formal Warning System
7515 Negotiations With States
EXHIBITS
A
B
c
D
E
INDEX
FOOD STAMP PERSONNEL REPORT - FORM FNS-319
FOOD STAMP REPORT OF REVIEW FINDINGS -- FORM FNS-320 and
INSTRUCTIONS FOR COMPLETION (FORM FNS-320-1)
FOOD STAMP PROGRAM CORRECTIVE ACTION PLAN - FORM FNS-321
FOOD STAMP PROGRAM CORRECTIVE ACTION STATUS REPORT - FORM FNS-322
CONSOLIDATED REPORT OF SMALL PROJECT AREA REVIEWS - FORM FNS-323
4
(FNS-FS-1)
7000 GENERAL PROVISIONS
7010 PURPOSE
7020 '
The purpose of the Food Stamp Program is to raise the nutritional
level among low-income households whose limited food purchasing
power contributes to hunger and malnutrition among members of such
households.
To facilitate achievement of this goal, each State is required to
maintain an efficient and effective operation in all facets of
program administration and to e•~ loy sufficient staff to handle these functions. In addition, Food Stamp Regulations require the
reporting to Food and Nutrition Service (FNS) of uniform data on the
entire operation of the Food Stamp Program.
The purpose of this Handbook is to provide guidelines to State
agencies for monitoring and reporting State and local program
performance.
BACKGROUND
In accordance with Public Law 93-347, the Secretary of Agriculture
is authorized to pay each State agency an amount equal to SO
percentum of all administrative costs including, but not limited
to, the cost of (1) the certification of households; (2) the
acceptance, storage, and protection of coupons after their delivery
to receiving points within the States; (3) the issuance of such
coupons to eligible households; (4) the outreach and fair hearing
requirements of Section 10 ·of the Food Stamp Act; and (5) the
control and accounting of such coupons.
Public Law 93-347 further provides that payment shall be made to a
State for the Federal share of its administrative costs to the
extent that it is administering the program efficiently and--­effectively.
Accordingly, FNS may cancel any portion of payments
to the State agency if FNS determines that the State agency has
failed to submit the reports required by Section 7400 of this
Handbook, failed to substantially comply with the provisions of FNS
Regulations and Instructions, knowingly submitted an incorrect
report on its operation of the program, or failed to take the
necessary action contained in its FNS approved corrective action
plan. FNS shall not cancel Federal funding for any continuing
deficiencies where the State agency has implemented a corrective
action plan approved by FNS.
5
(FNS-FS-1)
7025 DETERMINATION OF EFFICIENCY AND EFFECTIVENESS
In order to receive matching funds under Public Law 93-347 each
State is required to report to the Secretary of Agriculture on the
efficiency and effectiveness of its program administration in
accordance with the monitoring and reporting requirements contained
within this Handbook. This will include a review of all facets of
program operations as well as corrective action taken to alleviate
reported defi9iencies. In reviewing its food stamp operations a
State must at all times assess its program in light of the
underlying goal to effect a system that is efficient and effective
in all levels of program operation. Therefore, the State must not
limit its review to only those items outlined in this Handbook but
should be alert to any possible State or local practice that could
adversely affect the operation of the Food Stamp Program.
FNS shall make a determination on the efficiency and effectiveness
of State operations based on State reports and other available
information. States will be measured against their compliance with
.the Food Stamp Act, Regulations, FNS(FS) Instructions and Handbooks
and each State Plan of Operation, and'their efforts to reduce
program deficiencies through corrective action.
In ascertaining the quality of a State's Food Stamp Program and
determining whether action should be taken to cancel any
administrative funds, FNS will primarily consider the effective­ness
and timeliness of the State's actions to discover and correct
program deficiencies. As well as providing a systematic method for
assessing the efficiency and effectiveness of the operation of the
Food Stamp Program in the State and project areas, the objective of
the efficiency and effectiveness review is to provide a basis for
assisting the State in improving its overall operation of the Food
Stamp Program. It is the intent of FNS to encourage positive
actions on the part of each State to eliminate operational
deficiencies, to improve existing performance, and to maintain
program integrity.
7030 STATE MONITORING AND REPORTING RESPONSIBILITIES
7030.1
The monitoring and reporting system set forth in this Handbook is
the primary vehicle for compilation of data necessary to determine
the extent to which a State is operating an efficient and effective
Food Stamp Program.
PROJECT AREA OPERATIONS REVIEW
State agencies shall ensure that each project area under its
jurisdiction operates the Food Stamp Program in accordance with
FNS Regulations, Instructions and Handbooks. Such reviews shall be
conducted by the State or contractual agent to determine compliance
with the FNS approved State manuals. It shall be the responsibility
6
( 7030.1)
7030.2
7030.3
(FNS-FS-1)
of each State agency to ensure that corrective action is taken within
the appropriate project area when such a unit is not operating in
conformance with FNS standards.
STATE AGENCY OPERATIONS REVIEW
It shall be the responsibility of each State agency or contractual
agent thereof to annually conduct an assessment of the State Food
Stamp Program. Such assessments shall cover program operations at
the State level and must be comprehensive enough to provide the
basis for a decision by FNS on the effectivene~s and efficiency of
the State's program operation.
QUALITY CONTROL
The present quality control system will operate in conjunction
with the E and E Monitoring System. The results of Quality
Control Reviews will be used in coordination with State agency
and project area level review information to develop complete
analysis of the State's operation of the Food Stamp Program.
7033 AUDITS
FNS will employ findings from Office of Audit on any portion of
the Food Stamp Program operations in its determination of a
State's efficiency and effectiveness.
7034 PERSONNEL
While the single criteria of sufficient personnel does not ensure
prudent operation of the Food Stamp Program, an adequate staff is
necessary in order to carry out all facets of the program in an
efficient and effective manner. Form FNS-319 Food Stamp Personnel
Report _(see Exhibit A) containing information on equivalent full­time
food stamp positions at the State and local level which are
eligible for FNS funding must be submitted by July 1 of each year
based on the State staffing pattern as of May 15 of the same year,
except that the first report shall be submitted by August 1, 1975.
7040 EFFICIENCY AND EFFECTIVENESS COORDINATOR
To ensure the successful operation of a continuing system for
data collection, evaluation, and corrective action, the State
agency shall designate a person, on a full- or part-time basis,
to coordinate these activities. This position within the State
structure should be defined by each State agency and set forth
in the Plan of Operation. With respect to the monitoring and
reporting requirements for the determination of the efficiency
and effectiveness of Food Stamp Program operation, the respon­sibilities
of the coordinator can be divided into five major
areas:
7
(7040) (FNS-FS-1)
(1) The efficiency and effectiveness review and
report process to ensure conformance with
Federal regulations and instructions;
(2) Ensuring uniform, correct and timely applica­tion
of monitoring procedures;
(3) Coordination with persons in the areas of
quality contro1 operations, policy development,
and management to identify causal facto.rs and
determine corrective action which will serve
to either substantially reduce or eliminate
program deficiencies;
(4) Ensuring preparation of the corrective action
plan and submittal of this report as approved
by the State agency;
(5) Acts as an authorized liaison between the
State agency and its contractual agent, if any.
7041 STATE AGENCY REVIEW STAFF
State agencies must assure that staff for conducting State and
Project Area Operations reviews and for planning corrective
action is sufficient in number and productivity to keep the
program review process current within established reporting
dates and at a level of quality which ensures valid findings,
adequate program analysis and effective corrective action.
7042 CONTRACTUAL AGENTS
With prior permission from FNS, the State agency may use
contractual agents to monitor the efficiency and effectiveness
of program operations. Such agent may be a private firm or
agent of the State. The hiring of such an agent does not relieve
the State agency of any responsibility for submitting accurate
reports on a timely basis or for implementation of corrective
action. The State agency is also responsible for validating
results of reviews conducted by contractual agents. Such
contractual agents may not be used for quality control.
If such contractual agents are used in lieu of the State review
of its own operation, a provision must be included in the State
Plan of Operation.
7050 PLAN OF OPERATION
Each State agency shall submit to FNS for approval an amendment
to the State Plan of Operation containing (1) the name and title
of the person designated to coordinate the State system for
8
..
(7050) (FNS-FS-1)
monitoring and improving program performance; (2) prov1s1on for
the use of a contractual agent in lieu of State review staff
when desired; (3) the position within the State framework of
staff or contractual agents responsible for monitoring and
reporting the State's administration; (4) a statement of
monitoring and reporting procedures to be followed by the State;
and (5) description of the process for initiating and evaluating
corrective action~
7060 DEFINITIONS
For the purposes o.f State and proj-ect area efficiency and
effectiveness reviews the following terms will be used:
~
"Efficiency and Effectiveness" ("E and E") means administration
by the State agency of its Food Stamp ?rogram responsibilities
in a manner which substantially complies with the Food Stamp Act,
Regulations, FNS Instructions and Handbooks and the State agency
Plan of Operation.
"Annual Review Period" means the 12-month period from January 1
through December 31.
"Biennial Review Period" means the 24-month period from January 1
of an even-numbered year through December 31 of the following year.
"Semiannual" means the six-month period either from January 1
through June 30 or July 1 through December 31.
"Interim Period" means the phase of implementation during which
FNS personnel will assist State agencies in the data collection
responsibilities to allow 'time for States to secure State level
funds and adequate staff. This period will end on January 1, 1976.
"Project area" means the political subdivision within a State
which has been approved for participation in the program by the
Department of Agriculture. However, for the review and reporting
purposes of this section, the State agency may, with FNS approval,
establish a different administrat~ve unit as its project area.
"Large project area" means those project areas (or administrative
units) with a bonus issuance of $500,000 or more a month in the
last month of the preceding Federal fiscal year.
"Small project area" means those ptoj ect areas (or administrative
units) with a bonus issuance of less than $500,000 per month in
the last month of the preceding Federal fiscal year.
9
(FNS-FS-1)
7070 RETENTION OF RECORDS
For purposes of Federal review of a State's system for monitoring
and reporting the efficiency and effectiveness of its Food Stamp
operation, State agencies will maintain all records and worksheets
in order to permit ready access to and use of these records.
Official records consist of any records used to compile the
reports of the State or project area operation. In order to be
readily accessible, efficiency and effectiveness records should be
kept together and filed in an orderly sequence by reporting period.
Precaution should be taY3n to assure that these records are
retained without loss or destruction for the three-year period
required by Food Stamp Regulations. Information obtained on
individual households for monitoring purposes shall be safeguarded
in accordance with FNS policies on Disclosure of Information for
the Food Stamp Program.
7080 FEDERAL MONITORING OF STATE SYSTEMS
FNS will conduct reviews of States' systems for data collection,
evaluation and corrective action planning in order to: (1) assess
the operation of the State food stamp quality control system, the
State operations review system, and the project area operations
review system; (2) provide a basis for assisting the State in
improving its system; and (3) test the validity of the information
provided by the States.
The State agency must develop and submit for FNS approval corrective
action plans based on deficiencies reported by FNS as a result of
its review of the State's system. FNS will consider the findings of
this review and the State's corrective action as well as State
conducted "E & E" reviews in determining the State's efficiency and
effectiveness.
7090 IMPLEMENTATION OF EFFICIENCY AND EFFECTIVENESS REVIEW PROCEDURES
7090.1
In order to provide the necessary time for States to secure State
level funds and adequate staff to assume the total responsibilities
set forth in this Handbook, the implementation will be accomplished
in two phases. Under phase one, which is the interim period, FNS
will assist State agencies in the data collection responsibilities.
This period will end on January 1, 1976, at which time State
agencies will assume full responsibility for data collection and
reporting. FNS will consider extending this period until June 30,
1976, if a State agency demonstrates, to the satisfaction of FNS,
that it is unable to fully implement this provision.
PHASE ONE - INTERIM PROCEDURES
FNS will submit to each State agency by July 1, 1975, a profile
developed from information available to FNS which summarizes
10
(7090.1)
7090.2
(FNS-FS-1)
deficiencies. Within 120 days, the State agency must submit for
FNS approval a corrective action plan covering the findings
contained in the profile and the quality control findings for the
period January-June 1975.
During the period July 1 to December 31, 1975, FNS will develop
and test procedures ·for State and project area operations reviews.
State agencies will be encouraged to participate during this test
phase. The results of the reviews conducted during the test period
will be transmitted to the State agency on or before March 1, 1976.
This information and the quality control findings for the period
July-December 1975 will provide ~e basis for a second corrective
action plan which will be due May 1, 1976. The State agency will,
at the same time, submit a status report on progress made toward
the completion of the previously submitted corrective action plan.
PHASE TWO - FINAL IMPLEMENTATION
Beginning January 1, 1976, the State agency will assume total
responsibility for data gathering and reporting. Prior to the
actual commencement of the reporting period, the State agency
shall submit on November 1, 1975, a timetable for performance
of reviews. If FNS has given the State agency approval to delay
implementation, the State agency shall submit instead a schedule
which will ensure assumption of its responsibilities by July 1,
1976.
11
(FNS-FS-1)
7100 STATE AGENCY OPERATIONS REVIEW
The Food Stamp Program State Agency Operations Review System is a
management tool to measure the extent to which State agencies are
administering the Food Stamp Program according to Federal Regula­tions,
FNS Instructions, and Handbooks.
7101 OBJECTIVES OF THE REVIEW
The objectives of this review are to:
(a) Provide a systematic method for assessing
the effectiveness and efficiency of the
operation of the Food Stamp Program at
the State level.
(b) Provide a basis for assisting States in
improving their programs.
(c) Provide a flow of manage~ent information
from the States to FNS on State level
operations.
(d) Ascertain that State agencies are correctly
operating the program in accordance with
Food Stamp Program Regulations, FNS
Instructions, and Handbooks.
7102 FREQUENCY OF REVIEW
State agencies or their contractual agents shall conduct a review
of State Agency Operations at least once each calendar year. Such
reviews may be required on a more frequent basis upon notification
by FNS. Additional reviews shall be conducted, when warranted, to
ensure that appropriate corrective actions have been taken to
remedy serious existing problems.
7110 REVIEW PROCESS
7115 CONTENT OF REVIEW
TI1e review shall cover program operations at the State level and
must be comprehensive enough to provide the basis for a decision
by FNS on the efficiency and effectiveness of the States' opera­tion
of the program.
12
(7115)
7115.1
(FNS-FS-1)
As a m1n1mum, these reviews will provide a survey of the States'
performance in the areas of staff training and utilization,
overall program supervision, fair hearing procedures and opera­tions,
fiscal controls, timeliness and accuracy of reports, and
any functions relating to the certification of households or
issuance of coupons performed at the State level.
The reviewer should .not limit his assessment to only those items
shown in this Handbook, but should be alert for any possible
practice or lack thereof that adversely affects the operation of
the Food Stamp Program. All significant information gathered
during this assessment should be included in the report to FNS.
CERTIFICATION PRACTICES
(a) Fair Hearings
The State reviewer will examine all requests
for fair hearings on hand or acted upon during
the month preceding the review month to
determine if procedures are in conformance
with FNS Instructions and Handbooks. A sample of five
fair hearing decisions will be reviewed to
determine timeliness, if testimonies were given
under oath, if witnesses were called, if
benefits were continued on the same basis where
appropriate after a fair hearing was requested,
and if the transcript or related documents
substantiate the impartiality of the hearing
official.
(b) Claims
The State reviewer will enter the number . of
claim determinations sent to FNS during the
last six months.
(c) Disaster Procedures
The State reviewers shall determine whether
there is a disaster liaison, whether disaster
instructions and forms are available, and if
training on disaster procedures has been
conducted.
13
7115.2
7115.3
(FNS-FS-1)
ISSUANCE PRACTICES
The State reviewer will examine issuance operations and procedure~
for conformance with FNS Regulations and Instructions and
accoun~ability. Because issuance functions may be divided among
State, project area, and issuance agent levels, the reviewer will
complete only those sectio~s of Exhibit B of this Handbook which
are applicable to the unit under review.
GENERAL PRACTICES
(a) State Plan and Manuals
The State reviewer will examine the State
Plan of Operation, the certification manual,
and the issuance manual to determine if they
are current and in accordance with FNS
Instr~ctions and Handbooks.
(b) Reporting
The State reviewer will determine if the
required reports are submitted to FNS on
a timely basis.
(c) Record Rete~tion
The State reviewer will determine if records
are retained for a period of three years,
whether original documents or reproductions
are kept, and if fair hearing transcripts
are available to claimants.
(d) Training
The State reviewer will determine if there
is a special training unit, if any special
training aids have been developed, and if
regular training sessions are held.
(e) Information Transmittal
The State reviewer will determine if changes
in policy and procedures are disseminated to
local offices on a timely basis.
14
(FNS-FS-1)
7120 REPORTING REQUIREMENT
The results of ·the State Agency Operations Review shall be
incorporated into the Semiannual Performance Report to FNS,
accompanied by the appropriate corrective action plans, and
status report on pending corrective action where required.
The report of review findings shall be submitted on Form
FNS-320 which is shown in Exhibit B of this Handbook and
according to the timetable prescribed in Section 7400.
Additional narrative explanation should be attached when
necessary.
15
(FNS-FS-1)
7200 PROJECT AREA OPERATIONS REVIEW
The Food Stamp Program Project Area Operations Review is a
management tool to determine the extent to which project areas
are operating the Food Stamp Program in accordance with Federal
Regulations, FNS Instructions and Handbooks. Each State agency
shall ensure that all project areas operate the Food Stamp Program
in accordance with FNS Instructions and Handbooks through periodic
reviews conducted against the provisions of the State's FNS
approved manual.
7201 Objectives of Review
The objectives of this review are to:
(a) Provide a systematic method of assessing
the effectiveness and efficiency of the
operation of the Food Stamp Program in
the project areas;
(b) Provide a basis for assisting the State
and project areas in improving the
program;
(c) Provide verification of the validity of
State reports concerning the effective
and efficient operation of the Food
Stamp Program within the States;
(d) Provide a flow of information between
the project areas, the States, and FNS
necessary to develop the solutions to
problems in program policy and
procedures.
7202 Frequency of Review
State agencies or their contractual agents shall conduct a
review at least once annually for project areas reporting a
bonus issuance of $500,000 or more in the last month of the
preceding fiscal year (large project areas), and at least
once every 2 years in all other project areas. Such reviews
may be required on a more frequent basis upon notification by
FNS to the State agency. These reviews shall entail a study of
program operations performed at the project area level.
Additional reviews shall be conducted, when warranted, to
ensure that appropriate corrective actions have been taken to
remedy serious existing problems.
16
(FNS-FS-1)
7203 Review Schedule - Timetable
Each State agency shall submit to FNS a Timetable for Performance
of Reviews by project area and month. Such timetable shall cover
a 2-year period and shall be submitted for FNS approval 60 days
prior to the beginning of each new 2-year period. The first
timetable shall b~ due 60 days prior to January 1, 1976, 'and
shall cover the period January 1, 1976, through December 31,
1977.
Project areas to be reviewed should be selected on a random
basis. Any adjustments to the timetable must have prior FNS
approval. With sufficient jus; ification, State agencies may
request FNS approval to change their approved timetables. Such
requests should be accompanied by a complete explanation or
statement justify,ing such a request. Unless specifically
requested by FNS, State agencies are not required to adjust
their approved timetable as a result of a change in the amount
of bonus coupons reported for an individual project area.
In the course of preparing its timetable of project area reviews,
the State agency should schedule reviews in such a manner that
any given project area, whether reviewed on an annual or biennial
basis, is not reviewed during the same month of the year two or
more consecutive times. Also, the timetable should be coordinated
with the USDA Audit Schedule to avoid concurrent reviews by the
two agencies in a given project area.
7210 REVIEW PROCESS
7212 Establishment of Administrative Units
7212.1
For purposes of this review, State agencies may use "administrative
units" for review which are different from the project areas
designated by FNS for participation in the program. For example,
State agencies may use State-established welfare districts
or Regions or other administrative breakdowns within a State. The
establishment of such units for purposes of the system must have
prior FNS approval. Furthermore, FNS may require that certain
large project areas within the States be separated into two or
more smaller administrative units for purposes of this system.
Establishment of administrative units solely for the purpose of
reducing the frequency of review from annual to biennial will not
be considered by FNS.
FNS Approval of Administrative Units
When requesting approval to establish different administrative units,
State agencies shall submit to FNS a detailed list of proposed
17
(7212.1) (FNS-FS-1)
administrative units, giving relative information to justify such
designations. In particular the State shall include (1) whether the
proposed administrative unit corresponds with existing State­established
welfare districts, Regions, or other administrative
structures; (2) whether the existing structure has supervisory control
over the Food Stamp Program within that geographical area; and (3)
whether the unit has authority for implementation of corrective action.
Requests shall be submitted to the appropriate FNS Regional Office,
and shall include, for each proposed administrative unit, the following
information: size of proposed unit, geographic coverage (counties,
districts, project areas, etc.), Food Stamp Program participation,
number of certification offices, number of issuance units, bonus
dollars involved, and other relative information.
Washington FNS shall have the final authority for approval of
E and E administrative units and for requiring additional reviews
if needed to adequately monitor the administrative unit.
Changes in such administrative unit designations shall be made only
with the approval of Washington FNS.
7213 Content of Review
The review shall cover Food Stamp Program operations at the project
area level. The reviewer should not limit his survey to only those
items shown in this Handbook, but should be alert for any possible
practice that adversely affects the operation of the Food Stamp
Program. All significant information gathered during the review
shall be included in the report to FNS.
This section sets forth the steps to be followed in conducting a
review of the project area operation of the Food Stamp Program.
Areas to be covered during the review process include, but are not
limited to, information concerning training, caseload data, certi­fication
and issuance procedures, timeliness and accuracy of re­ports,
outreach efforts, fair hearing procedures, coupon control
and security, fiscal controls, and service to recipients.
7215 Certification Practices
The review of certification practices will consist of a desk
review of a sample of case records including zero-purchase
households, an analysis of caseload data, and a review of outreach
efforts, fair hearing procedures, and service to recipients. No
18
(7215)
7215.1
7215.2
(FNS-FS-1)
field visits are required. Only certain aspects of the most
recent application and subsequent actions will be reviewed. In
order to indicate the scope and nature of the problems disclosed,
procedural weaknesses will be classified and the frequency of
occurrence reported for each category.
Review of Sub-units .in Project Area
In some project areas a review of certification will include
district or satellite offices. Because of time and funding
constraints, a full review of each office may be impractical.
Therefore, in project areas issuing over $2 million in bonus
coupons per month, a minimum of nhree offices (or all, if less
than three) must be included in the review. Altl1ough all offices
will not be thoroughly reviewed, the case file review shall encompass
all offices. The minimum should be two offices for project areas
issuing $500,000 to $2 million per month in bonus coupons, and one
for project areas issuing less than $500,000. During subsequent
reviews, different offices should be selected.
Desk Review of Certification Procedures
A desk r~view of a sample of cases eligible to participate and
denied is required to determine if policies and procedures are
correctly implemented in the certification of households. This
information will furnish insight into the cause of agency errors
found during quality control reviews, isolate major problem
areas, and indicate areas in which training should be emphasized.
(a) Content of Desk Reviews
Areas to be covered during the review
. process include, but are not limited to,
checks for completeness of file, infor­mation
incorrectly handled, verification
and documentation, and timeliness of
actions. Particular attention should be
given to recipient claims, credits for
lost benefits, refunds, and the handling
of zero-purchase households. (The items
listed on pages 2, 3, 4, and 5 of the Report
of Review Findings (Exhibit B) may be used
as a checklist for this review.)
19
(7215. 2} (FNS-FS-1)
(b) Sampling Procedures
The files for review will be selected
from cases eligible to participate,
denied, and terminated during the month
immediately preceding the month
of overall review and will be
selected from all offices and sub-units
in the project area. The selection of
the files will be a random procedure
as described in FNS(FS) Instruction
732-2, as revised, usually by selecting
every nth case from a random starting
point. Both PA and NPA cases will be
reviewed. The nt.lmber of each reviewed
will be determined by their relative
frequency of occurrence during the
month from which the sample files are
being selected. If the systematic
random sampling plan recommended in
FNS(FS) Instruction 732-2, as revised,
is followed, the desired ration of PA
and NPA cases in the sample for review
will automatically follow. Any other
sampling method must have FNS approval.
The total number of files to be
reviewed will be determined by the
amount of bonus dollars issued in the
project area during the most recent
month for which a record is available.
The table below summarizes the
minimum sample sizes for files to be
reviewed.
BONUS DOLLARS
ISSUED (MILLIONS)
NtR-iBER OF FILES
TO BE REVIEWED
2.0 or
more
.s-
1.9
Less
than .s
Total 90 60 30
Eligible Cases 75 50 25
Negative Actions 15 10 5
20
7215.3
7215.4
7215.5
7215.6
(FNS-FS-1).
Zero-Purchase Households
An integral part of the case file review will be a special
look at each zero-purchase household which appears in the
sample of case files selected for review under this system.
In addition to the case file review indicated above, the
reviewer will 'need to review these households for the
specific items shown on page 4 of the Report of Review
Findings (Exhibit B).·
Outreach Efforts
The reviewer will examine local outreach efforts to determine
if local outreach priorities differ from those of the State.
Fair Hearing Procedures
The reviewer will examine a sample of five fair hearing
actions to determine if the local agency's procedures are in
conformance with the State Manual. If evidentiary hearings are
held at the local level, data wi~l be gathered concerning the
number of such hearings requested and conducted, the number on
which final administrative action was taken, and the number of
decisions appealed to the State agency. All requests for fair
hearings received within 30 days of the date of the review will
be examined to determine timely transmittal to the State agency.
Service to Recipients
The reviewer will examine office procedures, facilities, and
staffing to determine t.h.e adequacy of the services provided
recipients.
7218 Issuance Practices
7218.1
The reviewer will examine issuance operations and procedures for
conformance with FNS Regulations and Instructions and account­ability.
Because issuance functions may be divided among State,
project area, and issuance agent levels, the reviewer will
complete only those sections of the report (Form FNS-320)
which are applicable to the unit under review.
Content of Issuance Review
The review of issuance functions/operations shall include
accountable documents, the integrity of Household Issuance Record
files, preparation of issuance documents, verification of the previous
21
(7218.1)
7218.2
(FNS-FS-1)
month's issuance activity, issuance agent procedures and
controls, coupon and cash security, reconciliation of
transacted ATP's, and recipient service.
Review of Issuance Agents Within Administrative Units
The number of issuance units reviewed will be determined by
the following method:
For banks and welfare office issuance:
Divide the total dollar value of monthly
issuance handled by these units by the
number of these units operating in the
project area (administrative unit). Use
the following sc~edules to determine the
number of units to be reviewed.
$ Issuance ~ No. Units = Less than $25,000
No. of Units Issuing No. of Units to be Reviewed
1-25
26-50
51 or more
1
2
3
$ Issuance ~ No. Units = More than $25,000
No. of Units Issuing No. of Units to be
1 1
2-25 2
26-50 3
51 or more 5
For all other issuance units:
Divide the total dollar value of monthly
issuance handled by all units other than
banks or welfare offices by the number of
these other units operating in the project
area (administrative unit). Use the
following schedules to determine the number
of units to be reviewed.
$ Issuance ; No. Units = Less than $25,000
No. of Units Issuing No. of Units to be
1 1
2-25 2
26-50 4
51 or more 6
22
Reviewed
Reviewed
(7218.2) (FNS-FS-1)
$ Issuance ~ No. Units = More than $25,000
No. of Units Issuing
1
2
3-25
26-50
51 or more
No. of Units to be Reviewed
1
2
3
5
8
7230 REPORTING REQUIREMENTS
The results of small project a~ea reviews shall be incorporated
into the 6-month report to FNS, accompanied by the appropriate
corrective action plans, and status report on pending corrective
action where required.
To assure prompt action, corrective action plans and review
findings for large project areas shall be submitted to FNS
within 60 days following the completion of the review activity.
In view of the potential for bonus dollar loss because of
program deficiencies in large project areas, it is imperative
that corrective action planning and implementation be undertaken
within a minimum period of time.
State agencies will be required to review small project areas
biennially. One-quarter of these project areas should be
completed in each semiannual period unless otherwise approved
by FNS and included in the semiannual report submitted by the
state no later than 120 days following the end of the 6-month
period. Corrective action plans and status reports will be
submitted to FNS on the forms provided in Exhibits C and D of
this Handbook. The report of review findings shall be submitted
on Form FNS-323 provided by FNS.
23
(FNS-FS-1)
7300 DATA ANALYSIS AND EVALUATION
·7320
The purpose of data analysis is to provide clear and concise
summarizations of findings for identification and evaluation of
causal factors leading to existing deficiencies and for appropriate
corrective actions. This involves a comprehensive analysis of reviews
of State and project area operations. An evaluation of these findings
will result in an identification of problems and a determination of
probable causal factors. This also involves a careful screening of
the data to:
A. Determine which tolerance limits, if any, have been exceeded;
B. Determine which error rates are increasing and which are
decreasing;
C. Estimate dollar amounts across total caseload associated
with the various error rates and types of errors;
D. Identify pervasive errors which can be addressed by a
specific corrective action.
DEFINITIONS
For the purpose of 7300 the following terms are defined:
A. "Analysis" means the actions necessary to analyze all pertinent
data included in quality control reports, operations review
reports of the State agency and project areas, and other
pertinent reports.
B. "Evaluation" is the function in which qualified persons examine
reports generated by the analysis process and exercise judg­ment
in determining the causes of errors and appropriate
corrective action necessary to eliminate these causes.
C. "Cause" means the agent or factor which brings about a
deficiency.
D. "Deficiency" means a partial or total lack of compliance to FNS
requirements in any element, e.g., certification policies and
procedures, issuance procedures, reporting, etc.
7330 APPROACH
A systematic approach is necessary to analyze the volume of data
contained in quality control reports, operation review reports, and
other pertinent reports (e.g., internal audits carried out by State
audit groups, USDA Office of Audit reports, State prosecution reports,
etc.). Each State agency is responsible for designing a system of
analysis which will facilitate accurate and meaningful evaluation of
the causes of deficiencies within their Food Stamp Program.
24
(FNS-FS-1)
7400 PREPARTION AND SUBMITTAL OF REPORTS
The reports on program performance are intended to provide
the State an opportunity to determine the efficiency and
effectiveness·of program operation, identify and resolve
emerging problems, and assess the effectiveness of actions
that have already been taken to correct existing problems.
The State reports make it possible for the Federal agency
to carry out responsibilities for reporting to responsible
authorities on the nationwide status of eligibility and
propriety of coupon issuance, for assuring State compliance
with Federal requirements, for assisting States in improving
and strengthening their programs, and for assisting FNS in
developing federal policies.
Reports must be submitted in duplicate to the appropriate
FNS Regional Office according to the time frames set forth
in this Handbook. FNS may cancel any portion of State agency
payments if the State fails to submit any of these completed
reports on a timely basis.
7410 TIMETABLE FOR PERFORMANCE OF REVIEWS
Each State agency shall submit to FNS a timetable for
performance of State Agency and Project Area Operations
Reviews. Such timetable shall cover two years of review
activity and shall list both the State and each project
area to be reviewed, by month, beginning January 1 of each
new biennial period. Timetables must be submitted for FNS
approval no later than 60 days prior to the beginning of
each biennial period.
When preparing the timetable for performance of reviews,
the ·State agency should schedule reviews in such a manner
that any given project area (or administrative unit), whether
reviewed on an annual or biennial basis, is not reviewed .
during the same month for any two consecutive reviews unless
otherwise requested by FNS. Any adjustments to the timetable
must have prior FNS approval. Unless specifically requested
by FNS, State agencies are not required to adjust their
approved timetable as a result of a change in the amount of
bonus coupons reported for an individual project area.
FNS or the State agency can request a change in schedule.
25
(FNS-.FS-1)
7420 PERSONNEL REPORTS
A Food Stamp Personnel Report (Form FNS-319) shall be
submitted to FNS by each State agency no later than July 1
of each year, except that the first report shall be
submitted by August 1, 1975. The report shall contain
information on equivalent full-time food stamp positions
which are eligible for FNS funding as of ~ay 15 of the same
year. A sample form and instructions for completion are
shown in Exhibit A of this Handbook.
7430 REPORTS AND CORRECTIVE ACTION PLANS FOR LARGE PROJECT AREAS
Review findings and corrective action plans for large
project areas shall be submitted to FNS within 60 days of
completion of the review. Review findings shall be submitted
on Form FNS-320 (Exhibit B) and Corrective Action Plan on
Form FNS-321 (Exhibit C).
7440 QUALITY CONTROL FINDINGS
The statistical section of the quality control reports shall
continue to be submitted to FNS in accordance with FNS
Instructions within 90 days after the end of each six-month
reporting period.
7450 SEMIANNUAL PERFORMANCE REPORTS
The semiannual performance report shall be submitted to FNS
within 120 days following the end of the semi-annual period
and consist of the following:
1. Consolidated review findings and corrective action
plans for small project areas which were reviewed
during the six-month report period;
2. Report of the State Agency Operation Review
findings;
3. Statewide corrective action plan;
4. Corrective action status report; and
s. Semi-annual Outreach Report.
26
7454
..
7455
7455.1
(FNS-FS-1)
REPORT OF REVIEW FINDINGS
The State agency shall prepare a Consol idate,d Report
of Small Project Area Reviews (Form FNS-323) based on
the results of those Project Area Operations Reviews
in small project areas, which were conducted during
the report period and a Form FNS-320 for the State
Agency Operations Review if conducted. This report
shall be submitted in duplicate to FNS within 120
days after the end of each six-month reporting
period. A copy of Forms fNS-320, 320-1, and 323, and Instructions fo~ their• completion are found in
Exhibits B and E of this Handbook.
CORRECTIVE ACTION PLANS
Corrective Action Responsibilities
In order to effect an efficient and effective program
operation the State must take prompt and thorough action
to modify or eliminate existing deficiencies discovered
within the State system or project areas. It is the
responsibility of each State to formulate and develop
step-by-step objectives and target completion dates
projected to eliminate or reduce apparent problems.
Such deficiencies include any specific function, or
lack thereof, in an area of program operations which
is not in compliance with Food Stamp Program Regulations
and Instructions.
The development of corrective action plans should
involve the coordinated efforts of persons in the area
of data analysis, quality control, operations, policy
development, and management, in identifying causal factors
and determining a course of action which will either
substantially reduce or eliminate program deficiencies.
Continuing liaison between program and administrative
management is essential in order to ensure monitoring
and reporting of ongoing efforts to eliminate program
deficiencies.
The State agency's E&E coordinator will be responsible
for ensuring both the preparation of the corrective
action plan and its approval by 'the head of the State
agency. In addition, he shall be responsible for
monitoring the timely completion and assessing the
effectiveness of corrective action plans.
27
7455.2
7455.3
7455.4
(FNS-~PS-ll
Preparation of Corrective Action Plans
A Form FNS-321-Food Stamp Program Corrective Action Plan­shall
be prepared as follows:
one for each large project area which was reviewed;
one which consolidates corrective action for the
review findings of all small project areas which
were reviewed; and
a State corrective action plan based on Statewide
quality control findings, State Agency Operations
Review, if such review was conducted during the
semi-annual period.
Such corrective action plans shall contain an identification
of the problem and a timetable for its resolution.
Submittal of Corrective Action Plans
Corrective Action Plans shall be submitted to FNS in
accordance with the form and instructions outlined in
Exhibit C of this Handbook. Corrective action plans for
large project areas shall be prepared no later than 60
days following the completion date of the review activity
and submitted in accordance with paragraph 7430 of this
Handbook. Consolidated and Statewide corrective action
plans shall be prepared and submitted no later than 120
days after the end of the semiannual period. All corrective
action plans must have FNS approval.
Corrective Action Plan Identification Number
Upon receipt of corrective action plans, FNS will assign
a number to each plan and record this number in the
appropriate space on Form FNS-321. The Regional Office will
send the State agency notification of this identification
number to be used in future references to the plan and in
corrective action stat us reports •
28
7455.5
7455.6
(FNS-·FS-1)
Timely Completion of Step-by-Step Corrective Action Objective
In preparing Form FNS-321 the State shall set forth a list of
measurable objectives and target completion dates designed to
eliminate or reduce the deficiency. It is essential that the
State establish a careful and thorough plan for corrective
action as well a$ realistic completion dates for each step.
The State should conscientiously work toward the timely
completion of immediate and long-range goals. Completion
dates should be revised only in extenuating circumstances,
and justification of such changes must be submitted to FNS
in the Corrective Action Status Report semiannually.
In the determination of the efficiency and effectiveness of
State program administration the planning, implementation,
and adequacy of corrective action will be prime considerations.
Thus, the State should be thorough in the preparation of
corrective action plans and should make every effort to meet
all objectives on a timely basis.
Corrective Action Clearinghouse
The Food Stamp Division shall be the central agency for final
accumulation of corrective action plans. The National Office
shall give formal recognition to those States submitting
exceptionally good plans and shall disperse innovative ideas to
other States as prototypes for their future corrective action.
7456 CORRECTIVE ACTION STATUS REPORT
It shall be the responsibility of each State agency to report
progress made toward achieving corrective action objectives
until such time as the problem and its causes are satisfactorily
eliminated. Such action shall be submitted to FNS in
Corrective Action Status Reports which indicate the completion
of or progress made on previously submitted corrective action
plans. Preparation of these reports shall provide both the
State agency and FNS an opportunity to assess the effective­ness
of corrective action and to monitor completion of these
objectives on an ongoing basis.
29
7456.1
7456.2
(FNS-FS-1)
Submittal of Corrective Action Status Reports
Corrective Action Status Reports, Form FNS-322, shall be
included in the semiannual performance report due no later
than 120 days following the end of each semiannual period.
Each previously submitted corrective action objective
shall be included in the status report until it has been
completed.
If the seriousness of existing deficiencies warrants
additional monitoring, FNS may require more frequent or
more detailed status reports until deficiencies are either
significantly reduced or eliminated.
Format of Corrective Action Status Report
Status reports shall be submitted in duplicate to FNS in
accordance with the forms and instructions outlined in
Exhibit D of this Handbook.
7457 SEMI-ANNUAL OUTREACH REPORT
The Semi-Annual Outreach Report shall be submitted to FNS
as part of the Semi-Annual Performance Report in accordance
with Section 275.10 of the Food Stamp Program Regulations
and FNS(FS) Instruction 732-6, Rev. 1.
7460 DUE DATES FOR SUBMITTAL OF REPORTS
Each State agency shall submit reports in duplicate to FNS
in accordance with the following timetable:
1. Timetable for Performance of Reviews shall cover a
two-year period and shall be submitted no later than
60 days prior to the beginning of each biennial period.
2. Personnel Report shall be submitted by July 1 of
each year, except that the first report shall be submitted
by August 1, 1975.
3. Project Area Review Findings and Corrective Action Plans
a. for project areas with monthly bonus of $500,000
or more in the last month of the preceding Federal
fiscal year shall be submitted to FNS within 60 days
following the completion of the review.
30
(FNS-FS-1)
b. for project areas with monthly bonus of less than
$500,000 in the last month of the preceding Federal
fiscal year shall be prepared within 60 days following
the completion of the review and submitted to FNS in
the semiannual performance report.
4. Semiannual Performance Report shall be submitted no
later than 12~ days following the end of each semiannual
period.
5. Quality Control Reports shall continue to be submitted
in accordance with FNS(FS) Instructions.
31
(FNS-FS-1)
7500 DETERMINATION OF EFFICIENCY AND EFFECTIVENESS
FNS shall make a determination on the efficiency and
effectiveness of the State agency's food stamp operation
based upon State reports including quality control data as well
as other available information. As an integral part
of this determination, FNS will review State reports and
corrective action plans for thoroughness and timely sub­mission.
Corrective action status reports will be
particularly significant in the final efficiency and
effectiveness determination insofar as they indicate
completion of or progress made on previously submitted
corrective actien plans.
The determination of a State's efficiency and effectiveness
in program administration will primarily be based upon the
effectiveness and timeliness of its actions to discover
and correct deficiencies. Each State is encouraged to use
additional funds available through P.L. 93-347 to effect a
more efficient program and to eliminate existing deficiencies.
Plans for corrective action and the effectiveness of previous
remedial action will weigh heavily in the final determination
of the efficiency and effectiveness of Food Stamp operations.
If a State meets its FNS approved corrective action schedule,
funds will not be withheld for the deficiencies apparent in
the initial reviews and reports. It is the intent of FNS-to
assist the States in implementing prudent administration of
all facets of the Food Stamp Program rather than penalize
the States for existing deficiencies.
7510 THE DETERMINATION PROCESS
State agencies shall submit to FNS Regional Officf.s all reports
and timetables required in this Handbook as well. as Statewide
quality control findings prescribed in FNS Instructions.
Regional Offices shall review the content of such reports for
completeness, adequacy of information, and proposed corrective
action. These reports, Regional Office findings from Federal
reviews, and other available information will be utilized
in making a determination on the efficiency and effectiveness
of a State agency's operations. Failure of the State agency
to take action on deficiencies discovered by FNS will result
in a cancellation of funds.
32
(INS-F~-1)
Any pbvious inadequacies and/or discrepancies in State reports
will be brought promptly to the attention of responsible
State officials with Regional Office recommendations for
improvement.
7511 INFORMAL WARNING SYSTEM
If State reports appear to warrant a negative determination
on the efficiency and ~ffectiveness of that State agency's
operation, FNS shall issue an informal warning to the State
indicating the possibility of a negative determination and
detailing the deficiencies. The State agency will have
30 days ih which to respond.
7513 FORMAL WARNING SYSTEM
7513.1
7513.2
If!at the end of the 30 day informal warning period the
State ag.ency has not responded to the deficiencies to the
satisfaction of FNS, a formal warning shall be issued.
Content of Formal Warning
As a minimum such warning shall: (1) advise the State that
the Regional Office has recommended a negative determination;
(2) indicate that the State's reports and corrective action
plans have ~een forwarded to the National Office for final
determination; (3) indicate how the State agency is ou~ of
compliance with Food Stamp Regulations and Instructions; (4)
provide a detailed description of the basis upon which a
negative determination may be made; (5) indicate the financial
penalty which is being considered; and (6) indicate _FNS' will­ingness
to negotiate deficiencies with the State for a period
of up to 30 days following issuance of the formal warning.
Final FNS Determination
If, after the end of the 30 day formal warning period, the
problems remain unresolved, FNS will notify the State agency
that payments are cancelled in accordance with Food Stamp
Regulations. Payments for State level operations will be
subject to cancellation whether or not a review was conducted
of State level operations during that six month period. The
Administrator of the Food and Nutr.ition Service at the national
level shall have the responsibility for the final determination
that a State is not operating an efficient and effective Food
Stamp Program.
33
(FNS--FS-1)
7515 NEGOTIATIONS WITH STATES
Upon the receipt of an informal warning the State will
have 30 days in which to respond satisfactorily to the
deficiencies noted by the Regional Office. If the State
agency does not respond or does not respond satisfactorily,
FNS will issue a formal warning. State agencies may take
immediate action to modify deficiencies upon receipt of
the informal warning. However, any such corrective action
must be negotiated with and approved by the Regional Office
within 30 days of the jssuance of the -formal warning, in
order to'preverit a negative determination by the Administrator
of the Food and Nutrition Service.
34
FORM F NS-31 9
1.STATE
PERSONNEL STAFFING (Co/s.
U .• S. DEPARTMENT OF AGRICUL TlJRE
FOOD At~[) NUTRITION SEFlVICE
. FOOD STAMP PERSONNEL ftEPORT
( I•'NS(FS) llnndbook 1)
EXHIBIT A
- 2. REPORT AS OF 3. TOTAL NO. OF NONASSISTANCE HOUSEHOLDS
CERTIFIED AS OF APRIL 30
!\lay 15, HI •••••.•
(A) and (l:J) undC'r "Employrnout l .. evcl" should re .. EMPLOYMENT LEVEL
11oct tho number of equivalent full .. time food stamp positions us of J\fay 15. /( NUMBER OF NUMBER OF
intli\."iducds spend only {Jart .. time on tlw functions below, lllva t11~ number of full·limo POSITIONS AT POSITIONS AT TOTAL
peoplt:!! tllis 1'\'ould equal. LOCAL LEVEL STATE LEVEL (Col. A t IJ)
V.~e decimiJI~. wllerc appropriate. (A) (8) (C)
4. TOTAL NUMBER OF PERSONNEL ELIGIBLE FOR FNS FUNDING (Give
the number of full-time personnel equivaleuts for whiciJ reimbursement Is
clctimed /r()m FNS. If diffc>rent from tho ·sum of lhC'! li~ures reported in Items
,'5.A. throuah G., expiEJin in the r~marks) ••.••••••••••••••••••.•. . . . .
.,
5. NUMBER OF PERSONNEL, BY FUNCTION: •
A . NONASSISTANCE CERTIFICATION WORKERS . . . . . . . . . . . . . . ... . ...
B. NONASSISTANCE CERTIFICATION FIRST-LINE SUPERVISORS •••••••••
c. QUALITY CONTROL REVIEWERS ••••••••••••••••••• , • • •••••••
D. QUALITY CONTROL FIRST-LINE SUPERVISORS ••• . .............
E. STATISTICIANS (Individuals responsible for the statistical function~ a~soci-sled
with the data analysis and reporlln~ aspects of ll1e Food Stamp Pro~.) •••
F. FAIR HEARING OFFICIALS (IndiViduals responsible for lair hearln!ls, lnclu-cJ;
ng hC'arin~ official.-:; presidinfl at a~?ency or evidentiary hearinJ1s, and hearin~
authorities if other than the hearing official) • •••••••••••••••••••• •
G. ALL OTHERS (Individuals wl•o are not Included In the above functions but
for whom reimbursement is claimecl from FNS) • ••••••••••••••• • • • • •
6. REMARKS (For use in JdentJfyin!J vacancies and in providing any explanations the Stnte· mAy wish to make concrrninR DIIJ' dntu lu tltls rcopor,t.
If more spRee is needed, attach sheet or continue on reverse.)
.EXHIBIT B
FORM F NS-320.1 INSTRUCTIONS FOR COMPLETION OF FORM FNS-320 --­FOOD
STAHP PROGRAM REPORT OF REVIEW FINDINGS
Form FNS-320 is a multi7purpose form to be used to report the follow~ng:
(1) individual project area review findings (large and smal~), and
(2) State agency level review findings (as part of the semiannual report).
This form
PART I
PART II
PART III
is divided into three parts:
- REVIElv OF PROJECT AREA CERTIFICATION
- REVIEW Of ISSU&~CE OPERATIONS
- REVIElv OF STATE AGENCY OPERATIONS
OPERATIONS
Only those parts which apply to the particular phase of program operations·being reviewed
should be used by the reviewer or other person submitting the report.
For each project area reviewed, a Form FNS-320 must be prepared. The reviewer(s) will prepare
a consolidated report (Part I). of the findings for all certification offices reviewed within
the project area, and a separate issuance report (Pa~t II) for each issuance office reviewed
within the project area. Tre reviewer should complete Part I and the appropriate portions of
Part II.
The Report of Review Findings from large project areas shall be submitted to FNS within 60
days following the completion of the review activity. The review findings from.small project
areas shall be retained by the State agency for incorporation into the Semiannual Performance
Report. lVhen preparing the Semiannual Performance Report, States shall consolidate the re­view
findings from all small project area reports on Form FNS-323, Consolidated Report of
Small Project Area Reviews. The State shall submit the consolidated report to FNS no later
than 120 days following the end of the semiannual period. Findings from the review of State
agency operations shall be submitted on Form FNS-320 as part of the semiannual performance
report. The reviewer should complete the appropriate portion of Part II, and Part III of
Form FNS-320.
State agencies are required to report the review findings on Form FNS-320, however they may
desi~n their own worksheets to use while conducting the reviews. While State agenci•es are
not required to submit workpapers used in .conducting reviews, such workpapers and any related
records must be maintained in order to permit ready a~cess to and use by FNS and other author­ized
agencies. Precaution should be taken to assure that these records are retained without
loss or destruction for the three year period required by Food Stamp Regulations.
Below are guidelines for use in assessing - the certification .and issuance operations within a
project area. If fraud is discovered du.ring the course of a review, State agencies should
inform the appropriate FNS Regional Office and request that the Office of Investigation or
Office of Audit investigate the project area.
IDENTIFYING INFORMATION - Self-explanatory
PART I - REVIEW OF PROJECT AREA CERTIFICATION
OPERATIONS
ITEM
1 NAME OF PROJECT AREA, OR CERTIFICATION
OFFICES - Self-explanatory
2 CASE FILE' REVIEW
a Certification Procedures
Reviewer will pull cases according to
sampling plan (see Section 7200). Last
certification and subsequent actions will
be reviewed for compliance with pro­cedures.
On his worksheet the reviewer should re­cord
the case number, classification
(NA or PA), ·stat'us (active, denied) of
each case selected. (Pages 6, 7, and
8 of Form FNS-320 may be used as a check­list
for preparing the reviewer's work­sheet)
• ·The reviewer should make tally
marks at the appropriate items to in­dicate
errors. This worksheet should be
retained at the State agency level with
the other workpapers used to prepare the
report.
A consolidated report of the casefile
review findings for the project area
listing the total number of errors for
each item will be submitted on pages 6,
7, and 8 of Form FNS-320 as a part of
the project area review report.
PAGE 2 OF 4
ITEM
~(1) - (3)) - Incorrectly Classified
Reviewer should deteomine whether a case
has been incorrectly classified. For
example, the reviewer should check PA
if an actual PA case has been incorrect­ly
classified as an NA case. To be con­sidered
a PA household the needs of all
members must be considered in the deter­mination
of (1) the PA grant or (2) GA
grant where FNS has determined equiva- _ ·
lency with PA. Households consisting of
SSI recipients plus individuals who are
recipients of federally aided public
assistance or general assistance should
also be cl.a ssifie.d . as PA aouseholds.
In (3) the reviewer should also check
when errors in classification are at­tributable
to erroneous consideration
of SSI members.
c((l) - (6)) -Missing Required Forms
Reviewer will ascertain whether all re­quired
forms are on file and make a
checkmark when such forms are missing.
These required forms include: applica­tion,
work registration form for non­exempt
household members, notice of
change, advance notice of adverse ac­tion,
worksheet, and notice of disposi­tion.
d((l) - (3)) - Missing Data on Application
Self-explanatory
e((l) - (11)) - Information Not Corr~ctly
Handled
.Reviewer will check income computation
to assure that income is correctly con­verted
to monthly amount, that required
averaging has taken place and that net
income does not exceed income exclusion
scale. Reviewer must ascertain that all
eountable income and resources are
counted, that all exclusions and deduc­tions
are allowed, and that the appro7
priate basis of issuance has been as­signed
based on eligibility worker's
computation. It is not intended that
the reviewer recompute income from case­file
information.
f((l) - (7)) - Verification
Reviewer must ascertain if casefile is
documented when a household's expenses
exceed income. All verifications re­quired
by the State manual must be made,
and required documentation included in
casefile.
g((l) - (6)) - Timeliness
Reviewer shall check certifica·tion
period for conformance with maximums
ITEM
establised in manual. Reviewer must
also ascertain timeliness of case
actions and whether claim, refund, or
credit is required.
h((l) - (2)) ~Other Errors
Reviewer should indicate ' any other
errors noted during the review
i Zero Purchase Households
An additional tabulation (see page 4, of
Form FNS-320) must be completed for all
zero purchase households appearing in
the case file samp'le. During the case­file
review the reviewer should relist
zero purchase cases by number and house­hold
size on a separate worksheet, and
should check Items (1) - (15) when ap­plicable.
The findings should be con­_
solidated and reported with other review
findings for the project area. Even if
there is no apparent error in the zero .
purchase certification, each zero pur­chase
household reviewed should be iden­tified
by case number on the reviewer's
worksheet and the appropriate response
to Item (15) entered.
This additional information required for
zero purchase households selected in the
sample does not eliminate the necessity
for also completing the remainder of the
casefile review on these cas.es.
Entries on Items (1),(2),(8),(11), & (13)
must be fully explained, and case number
and Item must be cited. Entries on Item
(3) must be explained giving length of
certification periods assigned. All ex­planations
should be attached to the
worksheet.
The consolidated findings including a
consolidation of the explanations, shall
be included in the Project Area Review
Report (Form FNS-323).
3 CASELOAD DATA
a Pending Cases as of Review Date
Pull sample of 25 (or all if less than
25) cases pending over 30 days. If
households are automatically terminated
at expiration of certification period,
pending "subsequent certifications" lvill
be lumped with pending applications.
Reviewer may pull directly from file if
pending cases are filed separately from
active cases. If "tickler" system is
used to identify pending cases, pull
sample from these. In determining age
of application note date sta~p showing
when received.
Determine reason these cases are pending
over 30 days.
.. ,
PAGE 3 OF 4
ITEM
---b- Subsequent Certifications as of Review
Date
If households are not terminated at ex­piration
of the certification period,
determine the number of such overdue
subsequent certifications. Separate
these households into NA and PA.
4 ADJUSTMENTS TO PARTICIPATION
a Recipient Claims
Reviewer will examine recipient claims
register, if available, to determine
number of recipient claims estaolished
during the last six months. The source
of this information should be specified.
Separate fraud from nonfraud.
b Refunds for Overcharges
Project area should have register of
refunds for overcharge, Form FNS-293
(OMB No. 40-R3865). Some State agencies
report refunds on a claim determination
form'. If no register exists, examine
FNS-250 (OMB No. 40-R3188) report if
project area makes refunds from cash
collections. If project area makes re­funds
with State agency or project area
vouchers, information may be found at
this source. If refunds are processed
through FNS, the Finance and Program
Accounting Division in Washington DC
may be contacted.
c Credits for Lost Benefits
Reviewer will examine credits register,
if available, to determine number of
recipient credits processed for the last
six months. The source of this infor­mation
should be specified.
d Cer\ification of Household Transfers
Reviewer will determine the total Cert­ification
of Household Transfers (FNS-
286 (OMB No. 40-R37 53)) issued' for the
last six months. The source of this
information should be specified.
5 OFFICE PROCEDURES
Most questions regarding office pro­cedures
may be answered by observation
or direct inquiry. For example, the
reviewer might observe that applicants
are turned away with neither an appoint­ment'
for an interview nor an opportunity
to file an application.
Some pre-review preparation is necessary
to determine if the food stamp manual
is up to date (need list and dates of
page changes and circular letters clari­fying
manual provisions). Spot check
ITEM
to determine if current, i.e., latest re­visions
in policy have been incorporated
and whether FNS has approved manual mat­erial.
6 FACILITIES
Reviewer will determine adequacy of facil­ities
from observation and inquiry at the
certification office. If possible, observe
office facilities during peak business
hours.
7 STAFFING
Some project areas may already have com­piled
this information for their own use
or for reports to the State office. If
such records are not extant, examine pay­roll
records, administrative regulations
or instructions on training, any documen­tation
of participation in training courses,
etc.
8 OUTREACH
Th'e reviewer will check correspondence,
telephone reports, reports of meeting with
community groups, and other action being
taken by the project area to ascertain
if out~each activities are in conformance
with State Outreach Plan. No documenta­tion
may be available if State agency has
contracted out ~utreach responsibilities.
9 FAIR HEARINGS
Reviewer will ascertain whether fair hear­ing
request forms are available upon re­cipient
request. In addition, he shall
examine fair hearing requests, transmittals
and decision during the 30 days preceding
the review date.
10 EVIDENTIARY HEARINGS
Some State agencies have adopted a system
of local evidentiary hearings where the
claimant is entitled to a full review of
his case at the local level, with a right
to appeal to the State agency. Local
evidentiary hearings must follow the same
rules of conduct as provided at a State­level
hearing. The reviewer should check
records and logs to ascertain whether hear­ing
requests and other necessary actions
are acted upon in a timely manner. If
possible, observe actions of project area
officials during hearing. If no hearing
is scheduled during review period, hearing
transcripts are available for review.
11 NARRATIVE
This section is provided to identify the
cause(s) of the deficiencies noted in the
report and thus assist as a managerr.ent
tool for program evaluation and the for-
PAGE 4 OF 4
ITEM
mulation of corrective action. The nar­rative
portion is required upon the
determination of a deficiency using
either of the following methods: (1) In
those items of the project area review
reports utilizing a case sample, the
percentage of error for each element
must be determined with an error rate
greater than or equal to five percent
constituting a deficiency, or (2) For
those items reported on a yes/no basis,
PART II - REVIEW OF ISSUANCE OPERATIONS
ITEM
a "no" determination cQnstitutes a
deficiency.· The reviewer should in his/
her best judgment comment on the cause(s)
that brings about the deficiency in the
appropriate narrative section. These
percentage applications and the result­ant
conclusions may be used in the de­velopment
of corrective action plans if
later a.nalysls determines their applic­ability.
For each project area the reviewer will need to review the issl,lance operations as outlined in
Section 7200. Because issuance functions may be divided among State, project area, and is­suance
agent levels, the reviewer will complete only those sections of the report applicable
to the unit under review. Whenever previously unreported losses of cash, coupons, or account­able
documents are discovered, State .~nd FNS authorities should be notified and immediate cor­rective
action taken where necessary.
The review will identify the cause(s) of the deficiencies noted in the report and thus assist
as a management tool for program evaluation and the formulation of corrective action: The
narrative is required for any "no" determination in those items reported on a yes/no basis.
The reviewer would in his/her best judgment comment on the cause that brings about the defic­iency
in the appropriate narrative section. The determination of deficiencies and the result­ant
conclusions may be used in the development of corrective action plans if late£.·analysis
determines their applicability.
PAGE !oF 32
FORM FNS-320 U.S. DEPARTMENT OF AGRICULTURE
FOOD ANO NU"':'"RITION SERVICE .
FOOD STAMP PROGRAM REPORT OF REVIEW FINDINGS
(!':<;"S(FS) Handhooi< I)
IDENTIFYING INFORMATION
1. NAME:: OF PROJECT AREA 2. OATES REVIEW CONDUCTED 3, TOTAL MONTHLY BONUS 4. REVIEW CYCLE ("X" or>e)
FROM 1'0 DOLLARS ISSUED
s 0 ANNUAL C SIEN!'.IAL
5. GEOGRAPHICAL AREA COVERED BY REVIEW
6. CERTIFICATION SUB-UNITS OR SAIT"ELLITE OFFICES 7. ISSUANCE OFFICES
A. TOTAL NO. INCLUDED IN REVIEW ••••••••••••• A. TOTAL NO. INCLUDE::O IN REVIEW ···•••••••••
B. GIVE NAME AND ADDRESS (street No. and name, city, state) OF
EACH OFFICE REVIEWED:
B. GIVE NAME AND ADDRESS (street No. and name, city, state) OF
EACH OFFICE REVIEWED:
(II more space is needed, continue on reverse or on sepsntte ttheet) (If more space fa needed,.contJnue on reverse or on lleparate tJf.~et)
FORM FNS-3201:" .. , PAGE 20F 32
. PART I-- REVIEW OF PROJECT AREA CERTIFICATION OPERATIONS
1. KANE OF PROJECT AREA, OR CERTIFICATION "x ·· - .. PPLICABLE.
OFFICES: ITEMS
(4) Unallowable deductions
made . •...•.....•••.... • ·
2. CASE FILE REV IE\~ "x··
APPLICABLE
a. Certification Procedures: ITEMS (5) Not all allowable de-
(1) Size of sample .•..•••... ductions and income
exclusions •••.••...•.•••
b. Incorrectly Classified? (6) Vendor payments except
(1) PA . ...................•. medical not counted as
income •.•••..•••••.•.•.• •
(2) NA . .........•.•••••.....
(7) Roomers not correctly
(3) Attributable to SSI handled •••.•.••..••••.•• '
member (s) .•••••••••.•.•.
(8) Boarders not correctly
c. Missing Required Forms: handled •••.•.•••••...••.
(1) Application ••.....••.•••
(9) NA households certified
(2) Work registration •••..•• but not eligible based
on income. as calcu-
(3) Notice of change ••...••• la ted •.••••••••.•..•....
..
(4) Advance notice of ad- (10) NA households certified
verse action .•....•••••. but not eligible based
on resources as calcu-
(5) Worksheet •..••••••••.••• la ted ••.........•..•...••
(6) Notice of disposition •.. (11) Incorrect basis of is-suance
used based on
d. Missing Data on Applica- income as computed and
tion: household size ••.•.•.••.
(1) Answers to all
questions ...•...•.••...• f. Verification:
(1) Expenses exceed income
(2) Dates of application or with no explanation •.•..
disposition ....••••.••••
(2) Eligibility of tax
(3) Signature .•...•...•..... dependent household not
determined for certified
e. Information Not Correctly student .•....•....•...•.
Handled:
(1) Income not correctly (3) No collateral contact
converted to monthly .... made for zero purchase
households certified
(2) Income and expenses not under prelimir.ary
averaged or prorated certification provision
for students, school pending verification ....
employees, self-employed
.•..•......•...• (4) No verification and
documentation of income,
(3) Erroneous resource mandatory deductions
exclusions made .•.....•. and questionable infor-ma
tion •..•.••.••.....••.
FORM FNS-320 PAGE 3 OF 32!
(5) Other State-mandated
verifications not per­formed
as required by
State manual ••..•...••..•
(6) No ·documentation of
exemptions from work
registration •.•..•....••.
(7) Inadequate documentation
of other information in
case file ....••.•••••...•
g. Timeliness:
~ (1) Changes in PA cases not
reflected on Food Stamp
status .................. .
(2) Notice of adverse action
not timely sent .•....•••.
(3) Recipient-reported
changes not acted on as
required by manual ..••..•
(4) Mass changes not made
on time . ................ .
(5) Other changes not made
on time .. ............... .
(6) Claim or refund not made
although a determination
of liability or entitle­ment
exists in the case
file . ................... .
h. Other Errors:
(1) Signature of certifier
not that of a qualified
eligibility worker ...... .
(2) Other errors (Specify)
•• X ••
APPL.ICABL.E
ITEMS
FORM FNS-320( · ' ·' PAGE 4 OF 32
i. Zero Purchase Review Results ~~umber of Zero Purchase
Households Reviewed • . ,
NOTE: A sunLmary oi the entries for questions 1, 2' 8, -
11, and 13 must be attached. Entries on question 3 Household Size
should be explained g.iving lengths of certification Over
periods assi~ned. ' 1 2 3 4 5 6 7 8 9 10 10
(1) Case rile does not exist for sample house-hold
(see note above) ........................
(2) Items on AT.P/HIR cards do not match entries
in case file 1' ,.see note above) .••.••..•••..•••
(3) Household certified on preliminary basis for
longer than one month (see note above) ••..•.• ~
(4) Collateral contact to verify income eligibil-ity
and basis of issuance for non-preliminary
certification not made • •••..•••••••.•..•.•••.
(5) Household overdue for recertification .•..••••
(6) Hork registration form not on file for house-hold
members required to register •.••••••.•.•
(7) All reported household income not considered.
(8) Food stamp monthly net income computed in-correctly
(see. note above) ...................
(9) Household's name and address incorrect in
case file . ............................... · · · ·
(10) Household is fictitious ..• ~ ..•..•••••••.•••••
(11) Household certified incorrectly (see note
above) ............................... · ........
(12) Basis of issuance incorrect .... ..............
(13) Indication of misrepresentation of facts in
case (see note above) ...•..••....•..•...•.•.•
(14) Household ineligible for participation at the
zero purchase level . .........................
(15) Number of consecutive months households have
participated at the zero purchase level* ••.••
Eou.~P.hc·ld Si ~e
1 2 3 4 5 6 7 8 9 10
uver
JJl
*Reviewer should present a tabulated One Month
chart giving number of consecutive Two Nonths
months by household size. Fo.r Three Hont.hs
example: More than 3
Months
FORM FN$.320 : • P~GE 5 OF 32
NO. 0 1·: CA~iES
PA .NA TOTA.L
3. CASELOAD DATA ..
a. Pending cases as of review (2) Specify source used to obtain (1)
date:
(1) To tah;cases pending over
30 days .........•......•. (3) If available, review several refund
documents to determine if prepared
(2) Pull sample of 25 cases in accord with FNS Instr. 736-2.
which have been pending Comment on page
over 30 days. Determine
Credits for Lost Benefits: NUMBER why these sample cases c.
are still pending: (1) Total number of credits
(a) Applicant not inter- processed for the last
. viewed ........•••••... six months .••••.•..••.••
(b) Caseworker has not ~2) Specify source used to obtain (1) '
.. completed verifica-tion
.••.•••.........••
(3) If available, review several credit
(c) Information not pro- documents to determine of prepared
vided by applicant .... in accord with FNS policy. Comment
on page
(d) Failure to act on in-formation
avai+able ... NUMBER
d. Certification of Household
Transfers (Form FNS-286,
(e) Cannot be determined .. OHB No. 40-R3753):
PA NA (1) Total number issued for
b. Subsequent Certifications last six months .••••••••
as of review date:
(1) Total number of overdue (2) Specify source of (1)
subsequent certifications
4. ADJUSTMENTS TO PARTICIPATION (3) Revie\-? several documents to deter-a.
Recipient Claims: mine if prepared properly. Comment
(1) Total number of claim on page
determinations for last "'X" o :-. 1 ~
six months ....•.•....•.... 5. OFFICE PROCEDURES YES -... o
a. Intake:
Fraud •.....••••.......•• (1) Are applications avail-ble
on request, pickup, .
I Nonfraud •..••.••..•.••.. and by mail? •••.••..••..
(2) Specify source used to obtain (1) (2) Are applications accept-ed
at client's request
before an appointment
(3) If available, review several claim if there is to be a de-documents
to determine if prepared lay? ....•..•.•..•.•...•.
in accord with FNS Instr. 736-1.
Comment on page (3) ~fuat is the current de- INTER\/A~
- lay in intervie\ving NUMBt:.R
b. Refunds for Overcharges: applicants?
(1) Total number of refunds
(requested from FNS or •• · , , r .. :, •.
paid out) for the last (4) Are volunteers used to Y E.J : i ~
six months •.•..•.••. : .••• interview or certify
households? ...••..•.•.••
FORM FNS-320'' - I PAGE 6 OF 32
"X ' ' ONE ")(" YES N Yt.S C!-- .,.:~o--7
b. Interview Procedures: (2) Are disaster certifica-
(1) Are, there group orienta- tion forms available~ •..
tions and prescreening
sess1•. ons ?. .....•.•...•... (3) If an FNS-designated
disaster occurred in the
(2) Are individual inter- last year, were certifi-views
conducted in pri- dations handled in
vacy? ..•••.....•.•.••••. accord with FNS dis-aster
procedures? ••••...
(3) Are all intervie-.;vs con-ducted
by qualified g. Duplicate Participation
eligibility workers? .•.. (1) Is a Master Index Card
file or other system "
c. Forms used to detect duplicate
(1) Are there any forms in applications at certifi-use
in the project area cation or in take? •.••.•.
which would affect Food
Stamp eligibility which h. Manual
have not been approved (1) Is a current FNS-ap-by
FNS? ........•.•..•.•. proved manual immedia-tely
available for ref-
(2) If yes, attach a copy , i I ;i erence by all eligibil-and/
or describe its pur- ity workers? ...•••..•••
pose and frequency of :.::. ;;:):
use. !!Ui!;!!<!!i;!1i!!!i ·;; 6. FACILITIES
a. Is the location easily ac-d.
Record Retention and Files cessible to the food stamp
(1) Are original records clients? •.••...•••.•.•••..•.
kept for a minimum of 3
years? •...••....•••.•.•• .b. Is the office convenient to
public transportation? ......
(2) Are f_air hearing tran-scripts
available to c. Can the office accomodate
claimants 7 ........•••... the normal flow of appli-cants?
......................
(3) Are case files avail-able
caseworkers 7. STAFFING RATIO to at
interview time? .•..•.•.. a. Ratio of workers - In terms
of full-time positions or
e. Work Registration their equivalent:
(1) Are work registration (1) Ratio of NA/FS eligibil-forms
transmitted to ES ity workers to total NA
on a daily basis? ..•..•. caseload ..................
(2) Is a CO!JY of Form FNS- (2) Ratio of FS supervisors
285 (mm No. 40-R3737) to FS eligibility
sent to ES? •...••..•.• · · workers •••.•....••.......
'
f. Disaster Provisions (3) Ratio of FS clerical
(1) Are disaster instruc- workers to eligible case-tions
available at the load (PA and NA) ••.•.•••.
review site or project
area office? ..•.........
FORM FNS -32G ' PAGE 7 OF 32
"x· · ONE ' ,. NUMBER
YES NO
b. If State agency has estab- c. What is the average lag
lished a standard staffing time between receipt of re-ratio,
is the project area quest and transmittal of
in compliance? ...•.•.•...... the request to the State
agency ?. .................... ..
c. Training
(1) Is there an ongoing for- d. Review hearing decisions
mal training ? . . program ..•.. received in tbe past 30
'
days. Of those where case
(2) Is there an on-the-job action was necessary, in
training program? ...•. , .. how many instances did the
. local agency fail to act (3) Is there a required num- within the timeliness
ber of on-going food standard? ...................
. stamp training hours per year? . ................ ~ .. 10. EVIDENTIARY HEARINGS
If yes, what is the min- a. If evidentiary hearings are
imum , maxl.•m um __?, . held at the local level,
report the following data
(4) Have eligibility workers for the month previous to
participated in training the review month:
programs as required? .... (1) Number of hearings re-quested
..................
(5) Is specialized • • "II super-visory
training provided? (2) Number conducted .•..•••••
d. Supervisory Review (3) Number on which final
(1) Are second party reviews administrative action
of caseworker actions was taken . ...............
being conducted? .........
(4) Number of decisions ap-
8. OUTREACH pealed to State agency ...
a •. Wi1at percent of the Outreach
contact's time is spent on (5) Number of decisions
Outreach? ..•......•....••... overturned on appeal to
' ~tate agency . ............
b. Is the required nonthly re-submitted
time? ... · .. "X " O"<E
port on b. Pull sample of five eviden- YES NO
tiary hearing decisions:
c. Does the record of contacts (1) Were witnesses apprised
support conformance with of the consequences of
Outreach Plans? .........••.. making a false state-men
t? ....................
d. If local Outreach priorities differ
from State priorities, explain on (2) Were benefits continued
page on a proper basis if the
hearing was requested in
9. FAIR HEARING a timely manner? .•• ~ .••..
a. Are fair hearing request
forms available on request?. (3) ~vere evidentiary hearings
conducted in accord with
b. What is the total number of NUMBER FNS Instructions? ...•••..
requests for fair hearings
received during the 30 days
preceding review date? ......
FORM FNS-320 " ' PAGE II OF 32
c. Determine number of eviden­tiary
hearings for which
final administrative action
has not been initiated with­in
60 days after the hearing
request .•••••...•••••...•••.
11. NARRATIVE
NUMBER
For each of the categories listed below,
state the cause(s) of the deficiencies
noted during the project area review.
a. Certification Procedures (comment on
page 9)
b. Caseload Data and Adjustments to
Participation (comment on page 9)
c. Office Procedures and Facilities
(comment on page 9)
d. Staffing (comment on page 9)
e. Outreach, Fair Hearings and Evidentiary
Hearings (comment on page 9)
J
FORM FNS-320 _ · . PAGE 9 OF 32
Comments (Identify each comment by item number. If more space is needed, attach sheet(s).)
FORM FNS-3201' . ; . PAGE 10 OF 3~
PART II _ _: REVIEW OF ISSUANCE OPERATJONS
Specify Review Site (2) Procedures followed? .••••
FREQUENCY
(3) How frequently is com- "X .. ON"" 1. ACCOUNTABLE DOCTJNENTS YES NO paris on made?
Is a State FNS-approved manual
of instructions available on (4) For the last such com- "X . ·~··' YES Nv
site . ........................... parison, did the figures
·agree: ...................
Indicate whether the manual int::ludes
written procedures for each item belmv, f. Accounting for all ATPs is-and
whether such procedures are being sued to caseworkers
followed: (1) Procedures available? ....
Securitv/Control over Blank ATPs "><" n '""
YES I NO (2) Frocedures followed? •••..
a. Access to blank ATPs limited
to authorized personnel only g. Accounting for all ATPs is-
(1) Procedures available? .•.. sued to data processing
unit
(2) Procedures followed? ..... (1) Procedures available? •••.
b. Perpetual inventory record (2) Procedures followed? .....
by Serial Number for bulk
supply Security and tontrol Over Blank
(1) Procedures available? ••.• HIR Cards
(2) Procedures follmved? ...•• h. Are blank HIRs serially
ntllD.bered? ...................
c. Physical inventory of bulk
supply taken and compared i. Access to blank HIRs lim-with
perpetual inventory ited to authorized personnel
(1) Procedures available? .... only
(1) Procedures available? ....
(2) Procedures followed? ...•. . . .
(2) Procedures followed? ••.•. FREQUENCY
(3) Hmv frequently is com-paris
on made? j. Perpetual inventory record
of blank HIRs by Serial
(4) For the last such "X .. NE cora- YES NO Number
parison, did the figures (1) Procedures available? .•..
agree? ...................
(2) Procedures followed? .....
d. Perpetual inventory record
by Serial Number maintained k. Physical inventory of blank
for blank ATPs issued over HIRs taken and compared to
the counter perpetual inventory
(1) Procedures available? .... (1) Procedures available? ....
(2) Procedures followed? ..... (2) Procedures followed? .....
I
(3) How frequently is com- FREQUENCY
e. Physical inventory of blank
,pre ATPs taken ~nd compared paris on made?~ ...•.•••...
with perpetual 1nventory
(1) Procedures available? .... (4) For the ''"'' n,;E last comparison, YES NC"
did the figures agree? ...
FORM FNS.3201 ' ., PAGE 11 OF 32 - .. )('' ON~:..
YES NO
1. Accounting for all blank·
HIRs issued to caseworkers
or issuance unit .
(1) Procedures availab.le? .•••
(2) Procedures followed? •••.•
Secut'it~ and Control Over othe~
Blank Forms
m. Access to blank ID cards
limited to authorized per-sonnel
only
~ (1) Procedures available? .••.
~
.. (2) Procedures followed? ...•.
n. Access to blank FNS..,..286
(Transfer)(OMB No. I 40-R3753)
forms limited to authorized
personnel only
(1) Procedures available? ....
(2) Procedures followed? •....
o. Access to blank Notices of
Change limited to author-ized
personnel only
(1) Procedures available? •.•.
-
(2) Procedures followed? .••..
'p. Access to blank FNS-293 (Re-fund)
(OMB No. 40-R3865)
forms limited to authorized
personnel only
(1) Procedures available? .••.
1(2) Procedures followed? ••...
FORM FNS 320 ' . PI\GE12QF32
··x" MNF' ·Specify Review Site YES NO
-
f. Is participation for one ··x . O"'E 2. INTEGRITY OF HIR FI~ES YES NO month posted prior to next
Is a State FNS-approved manual month,'s • ?
~ssuance . .....•.•...
of instructions available on
.site? ............... ·······•···· Describe schedule for post- l(;)i;s g.
'!!:';,
ing, indicating how long
Indicate ~.;hether the manual includes after last is!5uance day
written procedures for each item below, this process is completed.
and whether such procedures are being
followed: h. For manual issuance systems
only - semiannual compari-
C.9ntrols to freyent D~.plicate. son of HIRs to case files
Participation Prior to Creation (1)
.
Procedures available? .•..
of HIR Files
a. Cross-checks for previously (2) Procedures followed? ••... .
established HIR files for
head o~ household (3) Did HIRs and case files
(1) Procedures available? •... agree for the entire
sample? ..................
(2) Procedures followed? .....
(4) If no, was a 100% com-
(3) Specify the checks made (e.g.' parison done? ......•..•..
name, address, case no., s.s. no.)
etc. (5) Describe action taken on ::::::::::;:::::}[/::<::.:;::.:
any discrepancies noted
during the last compari- b. Cross-checks for NA, PA, and son. I ) ~ {\
and PAt.J HIR files
(1) Procedures available? ...• Security for HIR Files
(2} Procedures. followed? •..•. i. Access to HIR files limited
to authorized personel only
Controls to Keep HIR files (1) Procedures available? .•..
current and accurate
c. Suspension of households (2) Procedures followed? .••••
not participating for 3
months j . For automated HIR files, is
(1) Procedures available? .... a back-up system available? !
(2) Procedures follm.;ed? ..... k. For automated HIR files, is
an audit trail available? •..
d. Cancellation of households
whose certification period
has expired
(1) Procedures available? ..•.
(2) Procedures follo~ved? .....
e. Ensuring DPU takes action
on all Notices of Change
(1) Procedures available? ....
(2) Procedures followed? ....•
F'ORM FNS .3 20 • ·. '' PA,",E 13 OF 32
Specify Revie.w Site Controls for
.. X .. ON~ Issuance of ATPs YES NO
Outside the Normal Production
Cycle (manual in machine
"X '' ON£ 3. PREPARATION OF ISSUANCE YES NO systems, emergencies, etc.)
DOCUMENTS h. Checks for prior issuance
Is a State FNS-approved manual of ATP before issuance of a
of instructions available on- replacement
sitel .. ......................... (1) Procedures available? ••••
Indicate whether the manual includes (2) Procedures followed? ••• ~ .
written procedures for each item below,
and whether such procedures are being i. Checks for repeated reports
followed: of loss of'ATPs by same
household
--separation of Certification and (1~ Procedures available? ....
Issuance Functions
a. Do separate persons handle (2) Procedures followed? •••.•
... certification and issuance? .
j. Second-party review of ATPs
b. Ensure Notices of Change are prepared by caseworkers
signed by certification per- (1) Procedures available?.: .•
sonnel
(1) Procedures available? .•.• (2) Procedures followed? •.•.•
(2) Procedures followed? (Re- k. Affidavit8 from recipients
view recent sample of 25) prepared and filed for all
replacement ATPs issued
c. Ensure processed Notices of (1) Procedures available? •••.
Change are initialed 9Y is-suance
or DPU unit personnel! (4) Procedures followed? .•...
(1) Procedures available? •... i
1. Notification to DPU of all
(2) Procedures followed? (Re- -- replacement ATPs issued in
view recent sample of 25) time for reconciliation
cycle
Controls During Normal Produc- (1) Procedures available? ••..
tion Cycle of ATP Cards
d. Comparison by IU/DPU of (2) Procedures followed? ••.•.
cards withdrawn from bulk
inventory with cards on Time Frame for Processing
hand, prepared, and voided Kotices of Change, HIP.s, and
(1) Procedures available?, .•. ATPs
m. Intervals (daily, >veekly) at
(2) Procedures followed? .•••. which Notic.es of Change are
transmitted to the IU/DPU
e. Documentation of ATP de-struction
n. Estimated turnaround time
(1) Procedures available? ..•• (days) of processing and re-turn
of Notices of Change
(2) Procedures followed? ••.•. from IU /DPU to cu
f. Are ATPs mailed in first- o. Estimated preparation time
class, nonforwarding enve- (days) for an HIR card fol-lopes?
. ....... 4 ••••••••••••• lowing certification
g. Are IDs and ATPs mailed in
separate envelopes? •..•.•••.
FORM FNS-32o :· · ·" PAGE 14 OF 32
p. Estimated preparation and
mailing time (days) of an
ATP card following certifi­cation
- normal cycle
q. Estimated preparation and
issuance time (days) of an
ATP card outside of normal
cycle (first issuance,
emergency)
{
I