WIC EBT Feasibility Study and Cost‐Benefit Analysis

Virginia Department of Health WIC EBT Feasibility Study and Cost-Benefit Analysis
3.4.4 CAP FORMULA DISTRIBUTION CENTER
The CAP contractor
receives orders for
formula by fax and
subsequently receives
the order and the
associated FI by mail.
The contractor checks to
see if the FI reconciles
with the order. If the FI
reconciles and is not
stale dated, the
contractor deposits it in
its designated bank. If
the FI does not reconcile,
or is stale dated, then the
contractor must follow a
process of submitting the
FIs to the State’s Vendor
Team for payment
assistance. The impacts
of paper-based
processes, including the
cost of FI reconciliation,
are incorporated into the
cost of the formula.
Over the course of the assessment year, the CAP Distribution Center successfully submitted
37,750 FIs for payment and an additional 274 FIs were paid through the exception process via
ACH. An average of 12.4, or 149 FIs over the year, were rejected and not paid. These totals are
included in the retailer quantities for the assessment year.
3.5 BANKING ENVIRONMENT
FIGURE 8: CAP RECOCILIATION AND PAYMENT PROCESS
VDH has a contract with Covansys to provide back-end processing services for WIC and
Farmers’ Market Nutrition Program FIs. Services include providing financial payments on
redeemed FIs; providing automated and visual edits of deposited FIs to prevent improper
payments; providing VDH with an electronic payment/disposition status of all FIs processed;
providing a complete audit trail; and providing VDH with secure voucher stock to be used by
local clinics to print FIs. Figure 9 below illustrates the redemption and payment flow of the FI
and related data and funds.
54 V 1.2 August 20, 2008 Appendix B: Baseline Analysis