Working With WIC Retailer Bulletin - Office of Family Health Services

A New Challenge for Hot/ColdCereals and Shelf LabelsCostly ComplianceMistakes to Avoid!The new WIC Approved Food List brochure greatly expandedthe available choices of hot and cold cereal brands. Due tothis change, multiple WIC eligible brands may be sold; however,participants can only purchase the brand of hot/cold cerealyour store has designated in the Retail Store ManagementSystem. It is important that you use WIC shelf labels underthe specific brand of hot/cold cereals that have been approvedfor your store.Federal regulations require the WIC program to conduct“undercover” buys at authorized stores in order to verifystores’ compliance with federal and state requirements. Toconduct undercover buys, trained professionals pose as WICparticipants and use WIC food instruments. During the pastyear, 49 store investigations were completed. From theseinvestigations, the most frequent violations observed werethat store employees:•Failed to confirm the WIC participant possessed an IDfolder;•Allowed the participant to purchase more items thanwhat was prescribed on the WIC food instrument; and•Obtained the participant’s signature before the dollaramount had been written on the food instrument.How Do I Get an Item on the Virginia WIC Approved Food List?Have you ever wondered how to get a food reviewed and approved by the WIC program? If yes, read on…The next WIC Approved Food List brochure is scheduled to be printed and distributed in 2015. Food applications will beaccepted in 2014. If you want to ensure your supplier or distributor is notified when the WIC program begins acceptingnew food applications, please complete the following steps:• Go to http://www.vahealth.org/DCN/Publications/pubswic.htm• Select the Food Application Contact Form• Complete the VA WIC program Supplier/Manufacturer/Distributor Contact Form• Click the Submit button.Completing these steps will register the individual or company into a centralized database that will be used by the programto notify interested parties when the new food application is available and any other submission requirements.Working with WIC l 3

What’s New: Stocking VisitsDuring Non-Traditional HoursMaking Changes to StateRegulations that Affect You!In 2011, the WIC program began conducting on-site stockingvisits during non-traditional hours. Since WIC participantsshop at all hours, not just 9:00 am to 5:00 pm Monday throughFriday, we thought it was important that stocking visits shouldoccur during any hours the store is open to the public. Sowhat does this change mean to you? Your evening, earlymorning or weekend managers should be able to answer thefollowing questions:•Where are your Vendor Manual for the Virginia WICprogram and WIC ID stamp stored?•Do you keep any formula stored in the office or storeroom,in case there is not enough formula available in yourcustomer shopping area?•What should your manager do if the store does notpass the unannounced stocking visit?Remember, store monitors sent by the WIC program willalways show their photo ID and will ask the manager on dutyif s/he would like to accompany them during the on-site visit.If you have questions about the program conducting stockingvisits during non-traditional hours, please contact Alex Acharya,Prevention Specialist at (804) 864-7811.State regulations define policies, rules, and procedures thatauthorized stores and applicants must comply with in order toparticipate in the WIC program. Like all other state regulations,these are posted on the Legislative Information System website:http://leg1.state.va.us/. From this website, select “12VAC5-195” to access WIC state regulations.Periodically, WIC programregulations are updated in order tobe consistent with programchanges being made. Recently,the WIC program regulations wereupdated to reflect changes madeto the peer group structure, retailerselection, and limiting criteria andfood application process. You maywant to periodically review thesestate regulations to keep abreastof what’s new.Have you ever wondered – FIs/CVVs Rejection Trends?Did you know that from January – March 2012 more than1,856,211 food instruments (FIs) and cash value vouchers (CVVs)were presented for payment to our backend processor? Overall,less than 1% of FIs/CVVs are rejected for payment. The WICprogram continues to monitor the number of transactions thatare rejected. As of March 2012, the “Over FI Maximum” rejectionreason remains the leading cause of rejected FIs and CVVs.Common reasons why deposited food instruments may berejected for payment can be found in Figure 1.Each rejected WIC FI/CVV affects your bottom line. What canyou do to bring down the number of rejected FIs/CVVs? Most ofthe rejections are in your control and can be avoided by reviewingthe key parts of the FI or CVV prior to depositing them. Look forunsigned FIs/CVVs, which should never be deposited. Checkthe requested amount to ensure it is acceptable for the productsprescribed; for instance, a CVV should never exceed the preprintedamount. If necessary, re-train your office staff on how to acceptCVVs and FIs and what errors to look for.If you have questions about other redemption trends, rejectionreasons or how to obtain additional training resources, pleasecontact your assigned Vendor Liaison. Also, the WIC programwould appreciate hearing from you about any tips you havesuccessfully used to reduce the number of rejected FIs/CVVs.Figure 1. CVVs/FIs - Total rejections for the first quarter of2011 and 20124 l Working with WICSource: This FIs/CVVs Rejection profile is based upon all stores (transactionswere processed between January to March 2011 and January to March 2012).These figures are based on the total number of rejections for the first quarterof 2011 and 2012.

A New Look and DirectionThe “WIC” shelf label design has changed. The new shelf label message and design is intended to promote a stronger consumermessage that WIC approved foods are nutritionally good for you and are reasonably priced. The “Wholesome InformedChoices” message is intended to appeal to a wider audience than just individuals receiving WIC food benefits. The programis discouraging authorized stores from using shelf tags that say “WIC Designated,” since this message may give the impressionthat these brands are less desirable. Stores will be encouraged to use the new “Wholesome Informed Choices” shelf labelunder all items that previously required shelf labels, including: adult hot/cold cereals, cheese, frozen and liquid juice, milk, andpeanut butter. A store still has a choice to use the new shelf labels under other “WIC Approved” products, such as baby foods,eggs, whole wheat breads, etc.The new “Wholesome Informed Choices” shelf labels are availablein two sizes. You can order these new shelf labels by sending a RetailerSupply Request form (option #3 or #4) to the WIC program.New Peer Group Changes Fully ImplementedWhy is understanding your store’s assigned peer groupimportant?– It affects the maximum reimbursement level forredeemed food instruments; and– A separate average price per WIC approved foods isestablished for each peer group.With the new Retailer Agreement (2011), all of therecommended changes identified in the Mikelson &Associates review have been fully implemented, specificallyby:• Using number of cash registers as the primary factor forassigning a store’s peer group;• Using the Isserman methodology for identifying whichcommunities are considered rural vs. urban;• Using the WIC annual sales under or over $100,000 tosubdivide stores with 5-9 cash registers; and• Using the peer group average plus a percentage factor toestablish the maximum reimbursement amount forselective food instrument types.• Using the peer group average plus a percentage factorto establish the maximum reimbursement amount forselective food instrument types. Authorized stores orapplicants are divided into eight (8) peer groups (see chartbelow):A copy of the Mikelson & Associates executive summary isposted on the WIC program’s website under “What’s New”for June 2011 at:http://www.vahealth.org/DCN/General%20Info/newwic.htmRemember - stores that have food prices that are too highare at risk of having their food instruments rejected and paidby our banking contractor at the peer group level. It isimportant to frequently evaluate your prices for WIC items toensure that you avoid having rejected food instruments.If you have questions about your store’s assigned peer group,please contact your assigned Vendor Liaison.Working with WIC l 6

Have You Completed Your Annual Conflict of Interest Review?Let’s start with a quiz. There are five (5) situations listed. For each situation decidewhether or not an actual or potential conflict of interest exists -- please, nolooking ahead for the correct answer:1. A manager at a WIC authorized store has a son who workfor the local WIC clinic. The store is running a specialand the manager asks her son to place flyers about thespecial in the waiting room of the clinic.2. A WIC employee also works part time at anauthorized store.3. A store manager files a complaint against a WIC participantfor verbally abusing store personnel.4. A WIC store monitor arrives at a store to conduct a stockingvisit. It’s the middle of the summer and extremely hot.The assistant store manager offers the monitor a free cold soda.5. A WIC participant is ready to check out and has in her shoppingcart both WIC items and regular groceries. The only checkoutlane available is the one where her husband is the cashier.The WIC participant enters that checkout lane to pay forher purchases.Conflict of InterestActual or PotentialYES NOSituations 1, 2, 4, and 5 are actual or potential conflicts of interest, while situation 3 is not. Well, how did you do? Hopefully great! Thequestion becomes, how would your employees do? The answer to this question cannot be assumed. It is important that you review theWIC program’s “Conflict of Interest” requirements with your employees yearly. This conflict of interest review may also help your employeesidentify other situations that can be added to this quiz.The Virginia WIC program has developed an easy to use handout that can also help you meet this annual requirement. A copy of thishandout can be downloaded from the WIC program’s website, http://www.vahealth.org/DCN/Vendor/retailstorepubs.htm.This is a friendly reminder that it is against Federal WIC regulations to offer incentives solely to WIC participants in an effort to encouragethem to redeem food instruments at your store. Some examples of incentives include: giving away food or non-food items such as raffletickets or lottery tickets. Section 246.12(h)(3)(iii) of the Federal WIC regulations requires retailers to offer WIC participants the samecourtesies that are offered to non-WIC customers. The reverse is also true. WIC authorized stores may not treat WIC participants differentlyby denying them incentive items that are offered to non-WIC customers.Throughout the year, your assigned Vendor Liaison may conduct a review of your infant formula purchasing records. This type of reviewprovides an opportunity for the program to validate that you are purchasing infant formula from an approved supplier/distributor. If youare selected for an infant formula review, then you will receive a written request to provide copies of your purchasing records for a specifictime period. Once these records are received, then your assigned Vendor Liaison will confirm that your purchasing invoices are froman approved Infant Formula Wholesaler/Distributor. You can access the approved Infant Formula Wholesaler/Distributor listing at:http://www.vahealth.org/DCN/Vendor/retailstore.htm#Authorized and clicking “WIC Authorized Wholesalers and Distributors.”Important: Authorized stores are required to maintain at least twelve (12) months of infant formula purchasing records from allsources. Our joint goal is to ensure that WIC babies receive quality products that contain the nutritional ingredients that are needed fora healthy start in life.Working with WIC l 8Is it Free……Solely to WIC Participants?Are Your Purchasing Records Ready For Review?

Certified To Do More--Helping the WIC Program Succeed!Congratulations to all the individuals who completed the WIC Train the Trainer workshop or refresher trainingsession conducted this year! Certified trainers provide an important level of support by performing training tocorporate retail applicants and their authorized stores. The WIC program encourages store managers to utilizetheir certified trainers as well as the materials provided by the WIC program to ensure all staff is fully trained.Available Training Materials for RetailersVirginia WIC Program Retailer Bulletin August 2012• WIC Approved Food List (FD LST 12E)• WIC Approved Food List (Spanish) (FD LST 12S)• WIC Approved Infant Formula Flyer (FORM LST-12ES)• Cashier Training DVD (VEN-011)• Cashier’s Training Guide (VEN-003)• Virginia WIC Program Trainer’s Resource Guide (2012) (VEN-004RG)• Working With WIC Retailer bulletin – (most recent edition)Working With WIC Retailer BulletinSpecial Edition: This special “Working with WIC Retailer”edition is our annual training issue. This resource alerts youto WIC Program changes, highlights compliance and integrityissues, and provides useful tips on processing WIC foodinstruments and cash value vouchers.Action You Must Take: On page 11 of this bulletin is a formthat you, the store manager, must sign and return to the WICprogram. This form is used by the program to confirm a lauthorized stores have received federally mandated training.See the form to identify the submission due date.After Receiving and Reading this Bu letin, What’s Next?PRead the bulletin and contact your Vendor Liaison ifTraining EditionA Message From Mikeyou have questions about any of the topics covered.PSign and return the acknowledgement page - sendto the address printed on the form.PShare this special edition with store personnel(cashiers, bookkeeper, and customer service manager).PPost a copy of the bu letin in a central location forothers to read.PUse the bulletin as a resource to conduct additionalcashier and sta f training.PComplete your annual Conflict of Interest review.Place a copy of this bu letin in your Vendor Manualbinder for future reference.One of my favorite television shows is JEOPARDY. I would love to be a contestant, but realize that some categories would be verydi ficult, especia ly those dealing with literature and arts. My favorite category is "potpou ri," which is a misce laneous co lectionof answers. So I have decided my message to you should be "WIC Potpou ri."Many have asked abou the requiremen to charge Virginia's sale tax on the value of manufacturers' coupons and the impac thatit wi l have on eWIC, once operational. I have contacted both United States Department of Agriculture (USDA) and the VirginiaDepartment of Taxation for guidance on the best way to handle this issue. I wi l update you as soon as I hear back from them.Even though the development of the new Crossroads system has slowed, progress is being made working with Value AddedRese lers (VARs) and corporate retailers. For additional information pertaining to eWIC, please visit our eWIC website:http://www.vahealth.org/DCN/General%20Info/EBT/index.htm.Preventing program fraud continues to be a major topic of discussion within USDA's Food and Nutrition Services. Recently, AlexAcharya, Prevention Specialist, attended a special program integrity summit which included representation from both WIC andSupplemental Nutrition Assistance Program (SNAP - formerly known as food stamps). These types of co laborative exchanges wi lbe crucial as we enter the eWIC world. As our eWIC plans and fraud prevention e forts continue to evolve, we wi l certainly sharewith a l.$1,878,059,497 - Keeping in the spirit of JEOPARDY, the question is…What was the total expenditure by Food and Nutrition Services in Virginia for federal fiscal year 2011?SNAP was the major benefactor of these funds, along with the National School Lunch Program and of course, WIC.2,090 - How many people have logged onto Health Bites since January 2011?In 2011, the Division launched Health Bites, which is a web-based nutrition education system. Cu rently there are 15 interactivelearning modules that cover a wide variety of nutritional topics. I envision that Health Bites wi l become a major venue for WICparticipants receiving nutrition education. Imagine the future - WIC participants could sign onto Health Bites, complete the nutritioneducational module of their choice, automatically have their benefits uploaded to their eWIC card and then begin shopping. To viewthese modules I invite you to visit healthbitesva.org.It is almost 7:30 and JEOPARDY will soon be on, but again I reminda l that I am very wi ling to discuss any issues, concerns, orimprovement opportunities for the Virginia WIC program.Thanks for a l you do to make WIC a great program!Working with WIC l 1Additional Training ResourcesRESOURCE DESCRIPTION INTERNET ADDRESSRetail StoreManagementSystemWIC AuthorizedStore LocatorWIC RetailerWeb SiteWIC ProgramWhat’s NewWIC ProgramState RegulationsVendor Manualfor the VirginiaWIC ProgramWIC ProgramCashier TrainingDVD 2012Submit WIC application,food/formula prices andupdate store data.Online maps anddirections that allow theuser to easily and quicklylocate authorized stores.Contains programcontact information.Contains retailer alerts andadvisory meeting minutes.Contains state regulationsgoverning the Virginia WICProgram.Contains Retailerprocedures, guidelinesand forms.Cashier Training DVD(4-part module)published in 2012.https://vdhems.vdh.virginia.gov/net_open/login.mainhttp://www.vahealth.org/wic-asl/http://www.vahealth.org/DCN/Vendor/retailstore.htmhttp://www.vahealth.org/NuPAFP/General%20Info/newwic.htmhttp://leg1.state.va.us/000/reg/TOC12005.HTM#C0195http://www.vahealth.org/DCN/Vendor/retailstorepubs.htmhttp://www.youtube.com/user/MyVDH1Working with WIC l 9

on the HorizonThe Crossroads replacement system project has been delayed,which means the eWIC project has also been delayed. The WICprogram wants to assure you that we are fully committed to thesuccessful Crossroads and eWIC rollout. The efforts surroundingretailer Point-of-Sale (POS) testing, certification, and integrationfunding are moving ahead as planned. Xerox, formerly ACS, iscurrently supporting testing of many retailers' POS systems. Thistype of planning involves regular conference calls with retailersand Third Party Processors (TPPs) to discuss technical requirementsand provide assistance in interpreting Xerox interface specifications.Retailers who are prepared to start internal testing may contactJerry Owens at Xerox to receive test eWIC cards. The purposeof this testing is to ensure that their systems are working properlyprior to certification. For retailers who have already completedinternal testing, Xerox is working to schedule formal POScertification. Formal certification means that the retailer's POSis put though a series of tests and certified by Xerox, VirginiaDepartment of Health, and United States Department of Agricultureas eWIC compliant. The first Virginia certification was held inMay 2012. The results from this testing process will be publishedon the eWIC webpage, once available.The WIC program is continuing to work toward releasing a requestfor retailer integration funding applications. Applications will besolicited from Value-Added Resellers (VARs) supporting variousauthorized retailers participating in the Virginia WIC program.Prior to releasing this application, the program will hold at leastone public information session to ensure that eligible retailersand VARs are aware of this funding opportunity and understandthe award process and restrictions. For additional informationon this funding opportunity, check the eWIC website at:http://www.vahealth.org/DCN/General%20Info/EBT/index.htm.While reviewing this webpage, check to see if your VAR is alreadylisted. All VARs listed on this webpage will be contacted directlyand will receive an invitation to attend the informational session.More information about the available integration funding will beposted as it becomes available.The Crossroads and eWIC pilot is currently scheduled for spring2013, with a phased statewide rollout scheduled to start in latesummer 2013. As further rollout details are available, the programwill communicate this information to all retailers so that you mayplan accordingly.A sample of the Virginia eWIC card that will be issued to WICparticipants is shown below.If you have any eWIC questions, contact Sylvia Mitchem at (804)864-7812 or Sylvia.Mitchem@vdh.virginia.gov, Boyd Neal at(804) 864-7849 or Boyd.Neal@vdh.virginia.gov, or Jerry Owensat (405) 595-2401 or Jerry.Owens2@xerox.com.Working with WIC l 10

Virginia Department of HealthDivision of Community Nutrition109 Governor Street, 9th FloorRichmond, Virginia 23219Phone: (804) 864-7800Fax: (804) 864-7854*You MUST Acknowledge Reading this Training Newsletter!ACKNOWLEDGMENT OF TRAINING FORMIMPORTANT: Complete and return the signed form by 9/1/2012.I have received and read this Special Edition of the Working With WIC Retailer Bulletin.WIC ID # Store Name/Number Date:Your Name Title/Position Phone #SignatureComments:Please share this newsletter with all relevant employees to ensure that all changes and information containedwithin are communicated accurately and in a timely fashion. If you have questions after reading thisnewsletter, contact your Corporate Trainer or Vendor Liaison.*If your store is part of a corporation you may not be required to return thisacknowledgment form. Check with your corporate WIC trainer before sending.Please mail and/or fax this form to:Virginia Department of HealthDivision of Community Nutrition109 Governor Street, 9th FloorRichmond, Virginia 23219Phone: (804) 864-7800 Fax: (804) 864-7854Working with WIC l 11

Virginia Department of HealthDivision of Community Nutrition109 Governor Street, 9th FloorRichmond, Virginia 23219Phone: (804) 864-7800Fax: (804) 864-7854http://www.vahealth.org/DCN/vendor/retailstore.htmVirginia WIC Program Retailer BulletinAugust 2012Working With WIC Retailer BulletinTraining EditionHighlights of What's Inside:General Information/Training• Quick "qWICk" Response Code - Page 2• FIs/CVVs Rejection Trends - Page 4• How to Accept the WIC CVVs and FIs - Page 5• Vendor Compliance Team Update - Page 7• Available Training Materials for Retailers - Page 9• eWIC on the Horizon - Page 10• Training Acknowledgement Form - Page 11Compliance/Integrity• Costly Compliance Mistakes to Avoid! - Page 3• What's New - Stocking Visits - Page 4• Vendor Claims - When, Where, How? - Page 7• Annual Conflict of Interest Review - Page 8Food• WIC Approved Food List - What Changed? - Page 2• Hot/Cold Cereals and Shelf Labels - Page 3This institution is an equal opportunity provider.