WIC EBT Feasibility Study and Cost‐Benefit Analysis
WIC EBT Feasibility Study and Cost‐Benefit Analysis
WIC EBT Feasibility Study and Cost‐Benefit Analysis
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Virginia Department of Health <strong>WIC</strong> <strong>EBT</strong> <strong>Feasibility</strong> <strong>Study</strong> <strong>and</strong> Cost-Benefit <strong>Analysis</strong><br />
1.1.2 <strong>WIC</strong>NET<br />
At the time of this study Virginia <strong>WIC</strong> Services is also participating in a <strong>WIC</strong> Program State<br />
Agency Model (SAM) Project. Called Crossroads SAM, member States include Virginia,<br />
Alabama, West Virginia <strong>and</strong> North Carolina, which is also the lead State of the SAM<br />
consortium. Crossroads SAM’s objective is to plan for, develop, <strong>and</strong> implement a model <strong>WIC</strong><br />
MIS with all <strong>WIC</strong> Program functional areas. When deployed, the Crossroads SAM system will<br />
replace Virginia’s <strong>WIC</strong>NET system <strong>and</strong> will be <strong>EBT</strong>-ready. It is Virginia’s intention to leverage<br />
its SAM system development <strong>and</strong> implementation to integrate <strong>and</strong> implement e-<strong>WIC</strong>. Therefore,<br />
a detailed analysis of impacts to the current <strong>WIC</strong>NET system should e-<strong>WIC</strong> be deployed is not<br />
required for this study.<br />
The SAM project is in the planning phase with a goal of implementation by December 31, 2010.<br />
<strong>WIC</strong> Services anticipates contracting with a system integrator for the implementation of<br />
Crossroads SAM, with support provided by the <strong>WIC</strong> Services Technical Team, OIM <strong>and</strong> VITA,<br />
as appropriate.<br />
1.1.3 CURRENT PROCESSES<br />
<strong>WIC</strong> vouchers are currently printed <strong>and</strong> issued at the local clinic level. The parent, guardian,<br />
caretaker, or proxy is usually issued multiple vouchers, to provide the appropriate food packages<br />
for each participant for each month over a three month period. Vouchers can be redeemed at<br />
<strong>WIC</strong>-authorized locations during the appropriate month. Once vouchers are redeemed, the<br />
settlement flow is similar to that of a paper check, with the State’s banking contractor<br />
responsible for auditing the vouchers for compliance, drawing down funds from the State’s <strong>WIC</strong><br />
account, <strong>and</strong> settlement to retailers, among other services. The following figure illustrates the<br />
current banking flow.<br />
Rejected<br />
Funds<br />
Funds<br />
<strong>WIC</strong> Retailer<br />
Retailer’s<br />
Financial<br />
Institution<br />
State <strong>WIC</strong><br />
Account<br />
Contractor’s<br />
Financial<br />
Institution<br />
Food<br />
Instrument<br />
Processing<br />
FIGURE 2: SETTLEMENT FLOW FOR THE PAPER-BASED SYSTEM<br />
3 V 1.2 August 20, 2008<br />
Rejected<br />
<strong>WIC</strong><br />
Participant<br />
Rejected Food<br />
Instruments<br />
Images<br />
Data<br />
Image / Data Merge<br />
Federal<br />
Reserve<br />
Bank<br />
Atlanta<br />
Images<br />
MICR<br />
File<br />
Oracle<br />
Database<br />
<strong>WIC</strong> Food<br />
Instrument<br />
Pricing<br />
Banking Contractor<br />
Vendors<br />
Issuance<br />
& Voids<br />
Monthly<br />
Archive<br />
Banking<br />
Website
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