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EFAP Section 10

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EFAP Procedures Manual Section 10: Program and ComplianceĀ Management

10.1 Lead Agency Program Management

  1. Award amount based on the availability of funds and county allocation formula. 
    1. Awards are based on the amount of EFAP funds available, and the allocation formula approved by Food Assistance. 
    2. If there is a reduction or increase in the amount of program funds available, Food Assistance may reduce or increase the amount of a Lead Agency's original award.
      1. Unless otherwise specifically identified in the Agreement or as Amended, funds must be treated in accordance with all decisions made at the Biennial Meeting or any subsequent meetings in which the voting Lead and Sub Agencies decide how to implement the change in funding levels.
  2. Expenditures are limited by the Agreement.
    1. Funds are allocated to each county by state fiscal year. Expenditures are limited to the amounts on the Agreement face sheet for each state fiscal year, even though Agreements cover a two-year period.
      1. Funds not spent in the first year may not be carried over to the second year of the Agreement.
      2. Second-year funds must not be spent in the first year.
  3. EFAP is a reimbursement program.
    1. Costs are reportable for the month in which the expenditures incurred, and goods must be received prior to reimbursement. 
    2. Sub Agencies must provide their Lead Agency with all requested backup documentation of costs incurred and goods must be received prior to reimbursement. 
    3. The Lead Agency must reimburse their Sub Agencies before requesting reimbursement from Food Assistance.
  4. Funds may be reallocated among food pantries within a county.
    1. At any time during the Agreement, the Lead Agency and participating Food Pantries may vote to reallocate funds if the need among participating Food Pantries changes.
    2. The Lead Agency and Sub Agency Food Pantries must vote with a two-thirds agreement to reallocate funds.
      1. Reallocations among Food Pantries within a given county do not need the permission of Food Assistance; however, Lead Agencies must notify Food Assistance in writing, explaining the reason for the reallocation, and provide verification that the parties involved were in agreement.
    3. Exceptions:
      1. There may be certain circumstances that warrant flexibility for Lead Agencies to reallocate funds without a vote of the participating Food Pantries, such as a reallocation taking place in the last month of the fiscal year. Please contact your Food Assistance Regional Representative for further information.
    4. If the reallocation is due to a Food Pantry closure or termination, then the Lead Agency must follow the process as outlined in Section 10.3 Lead Agency Compliance Management. 
  5. May add new Food Pantries and Food Banks during the Agreement period.        
    1. The Lead Agency may choose, but is not required to, add new Food Pantries and Food Banks in its region any time during the Agreement period.
      1. The Lead Agency must have the support of two-thirds of the participating Food Pantries for the addition. Duplication of services may be a justification for not adding a new Food Pantry.
      2. When voting on duplication of service, each voting agency must provide justification for why duplication of service was determined.
      3. The Lead Agency must submit documentation to Food Assistance.
    2. If a new Food Pantry or Food Bank needs to be added due to a closure or termination, then the Lead Agency must follow the process as outlined in Section 10.3 Lead Agency Compliance Management. 
  6. Process for adding new Food Bank (s) and Food Pantries, including reallocation of funds due to closures or terminations.
    1. See Section 10.3 Lead Agency Compliance Management.
  7. Lead Agencies must have and maintain the required documentation for Sub Agencies on file.
    1. See Section 5.1 Eligibility Criteria and Capabilities for Lead Agencies. 
  8. Lead Agencies must provide Sub Agencies with program information.
    1. Lead Agencies must:
      1. Pass-through and/or amend program information that affects the management of EFAP to its Sub Agencies.
      2. Offer technical assistance to help Sub Agencies carry out their EFAP obligations.
      3. Provide EFAP updates to Sub Agencies, which may include:
        1. Regularly scheduled Sub Agency meetings.
        2. Quarterly email updates.
        3. Updates provided by Food Assistance.
  9. Lead Agencies may require Sub Agencies to attend meetings or training to help carry out their EFAP obligations.
    1. Required training.
    2. Required meetings.
  10. Lead Agencies and Food Bank Sub Agencies must provide match.
    1. Lead Agencies and Food Bank Sub Agencies must at least equally match their EFAP Agreement with funds from other sources.
    2. At least 50 percent of the minimum required match must be cash (hard match).
    3. The balance of the required match may be in-kind contributions (soft match). Soft match may include the value of foods from TEFAP, CSFP, and other programs serving EFAP clients and Food Pantries.
  11. Food Pantry Sub Agencies must provide match.
    1. Food Pantry Sub Agencies can match their EFAP funds in two ways:
    2. They can equally match their EFAP funds with at least 50 percent of the minimum match required as cash (hard match) from other funding sources and the remainder from donated in-kind services (soft match).
    3. They can match EFAP funds with at least 200 percent of in-kind donations of food, labor, transportation, and the like (soft match) if they do not have sufficient cash match.

10.2 Food Assistance Program Management

  1. Award amount based on the availability of funds and county allocation formula.
    1. Awards are based on the amount of EFAP funds made by the state legislature, and the allocation formula approved by Food Assistance.
    2. If there is a reduction or increase in the amount of program funds available, Food Assistance may reduce or increase the amount of a Lead Agency's original award.
    3. Unless otherwise specifically identified in the Agreement, or as Amended, funds must be treated in accordance with EFAP regulations.
      1. Any discretionary funding provided will be done so by Agreement or by Amendment and clearly outline the purpose and use of the funding.
  2. Food Assistance must have and maintain all required documentation for Lead Agencies on file.
    1. Be advised that all documentation is considered public information and subject to public disclosure.
  3. Food Assistance must provide Lead Agencies and other partners with program information.
    1. At a minimum, this includes:
      1. Passing-through and/or amending program information that affects the management of EFAP to its Lead Agencies.
      2. Offering technical assistance to help Lead Agencies carry out their EFAP obligations. This includes information on program-related guidelines, helping to identify other resources, offering information on best practices, and assistance with fiscal issues.
      3. Conducting regularly scheduled general check-in meetings for Lead Agencies, Sub Agencies, and the hunger relief community.
      4. Provide EFAP updates to Lead Agencies, which may include:
        1. Regularly scheduled monthly Lead Agency Meetings.
        2. Sub Agency meetings.
        3. Topic specific meetings.
        4. Quarterly email updates.
        5. Other updates provided by Food Assistance.
      5. Updating the Food Assistance webpage.
      6. Sharing updates through the Washington Food Coalition (WFC).
      7. Active involvement with the WFC Food Assistance Advisory Committee.
      8. Presentations at the WFC annual conference.
      9. Annual EFAP report.
  4. Food Assistance may require Lead Agencies to attend meetings or training.
    1. Notification of required attendance at meetings will be sent by Food Assistance. These may include meetings for:
      1. Updating Lead Agencies on EFAP requirement clarifications.
      2. Providing information on changes in legislation affecting EFAP.
      3. Providing training that would result in better service to clients.
      4. Planning sessions.
  5. Determining in-kind values. In-kind contribution is the value that is placed on donated services, materials, equipment, food, and other, as determined by EFAP, or fair market value as determined by the Lead Agency and Sub Agency in conjunction with their CPA or tax advisor. The determination is based on the following:
    1. Services/Labor – Identify the number of hours provided, and the hourly value (to be determined by the agency, based on a fair market salary, minimum wage, or Food Assistance's current suggested biennial value of $18.74 per hour. Calculate the total for each volunteer.
      1. This in-kind labor rate is used solely for EFAP close-out reporting. Agencies may use this rate, or a Fair Market Value rate, established in conjunction with their CPA or tax advisor as per the EFAP Procedures Manual and Agreements.
      2. The EFAP in-kind labor rate is to be used internally by agencies and is not a rate to be used in receipting donors for their in-kind donations of labor. Donors are responsible for determining the fair market value of their own donations in conjunction with their own personal accountants or tax advisors.
    2. Equipment/Supplies – Use the amount the donor has declared. If not available, estimate a fair market value.
    3. Transportation – Donated volunteer mileage is calculated at the current state rate. Use the actual cost of donated transportation as declared by commercial carriers.
    4. Food – Estimate a fair market value or use Food Assistance’s current suggested biennial value of $2.16 per pound.
      1. This in-kind food donation value rate is used solely for EFAP closeout reporting. Agencies may use this rate, or a fair market value rate, established in conjunction with their CPA or tax advisor as per the EFAP Procedures Manual and Agreements.
      2. The EFAP in-kind food donation value rate is to be used internally by agencies and is not a rate to be used in receipting donors for their in-kind donations of food. Donors are responsible for determining the fair market value of their own donations in conjunction with their own personal accountants or tax advisors.
      3. For EFAP reporting, TEFAP and CSFP commodities can be valued as in-kind match at the rate of $2.16 per pound. However, for audit purposes, TEFAP and CSFP commodities must be valued based on the actual product cost of each commodity received based on the current USDA price list published by WSDA each October 1.

10.3 Lead Agency Compliance Management

  1. Conduct program reviews of Sub Agencies’ performance.
    1. Lead Agencies must review Sub Agencies' activities to assure they are following EFAP policies. This includes:
      1. Verifying that the Sub Agency meets all criteria listed in the Agreement, Procedures Manual, and other required instructions.
      2. Verifying all EFAP expenditures are appropriate and reported monthly, and that other applicable policies are followed.
    2. Lead Agencies must conduct program site reviews of Sub Agencies at least once per Agreement period (once every other year).
    3. Lead Agencies must produce a written report summarizing their program review visits with any corrective action needed.
    4. Lead Agencies must follow up on any findings and make a notation in the Sub Agency’s file of any corrective action.
    5. Lead Agencies must notify Food Assistance of any significant corrective action, this does not include items listed as required general follow-up.
    6. Lead Agencies must ensure that their review document, at a minimum, meets the standards set forth in the Sub Agency Agreement.
      1. Food Assistance must approve the review document that the Lead Agency is using for their Sub Agency reviews.
  2. Lead Agencies must take action to correct Sub Agencies’ performance.
    1. The Lead Agency must take action to correct any Sub Agency noncompliance in conformance with the program requirements for each program under which the Sub Agency receives food or funds.
    2. The Lead Agency may give a Sub Agency a specific period of time to comply and must follow the process for suspending or terminating a Sub Agency as outlined in the Agreement when a Sub Agency does not comply within that given timeframe.
  3. Lead Agencies may suspend or terminate the Sub Agency Agreement in part or in whole.
    1. Lead Agencies may terminate or suspend the Agreement, with 30 days' advance notice, as outlined in the Lead Agency's corrective action policies and as the Agreement allows.
      1. Regardless of whether or not the termination is for cause or at will.
    2. Lead Agencies may elect to recapture and reallocate unclaimed funds.
  4. The Lead Agency may select a new Food Bank or Food Pantry due to closures or terminations.
    1. If a Food Bank or Food Pantry vacancy occurs during an Agreement period, the Lead Agency will have flexibility in the selection process to mitigate gaps in service. The process will be as follows:
      1. The Lead Agency will contact the Food Pantries in the county(ies) to inform them that a new Food Bank or Food Pantry (exceptions apply) will need to be selected and seek input on prospective Food Banks, Food Pantries, and/or alternate solutions.
      2. The Lead Agency will determine the selection process and make the final selection for the new Sub Agency(ies) when a vacancy is due to closure or termination.
        1. The Lead Agency may also opt to select Sub Agency(ies) based on a two-thirds majority vote of eligible agencies in the impacted county(ies).
        2. The Lead Agency may opt to provide alternate solutions in the short-term such as providing mobile Food Pantry services, working with other Food Pantries closest to the impacted area, or conducting food purchases.
      3. Exception:
        1. If this was decided on at the Biennial Meeting, then the Lead Agency is obligated to follow the agreed upon process.
      4. The Lead Agency will determine any prospective Sub Agency’s eligibility prior to selection.
      5. The Lead Agency will enter into an Agreement with the new Sub Agency and notify Food Assistance of the outcome of the meeting.
  5. May reallocate funds when a Sub Agency closes or is terminated.
    1. During the agreement period, the Lead Agency may reallocate the funds of a closed or terminated Sub Agency and notify the existing Food Pantries of the reallocation plan, using the following methods:
      1. Reallocate funding to impacted Food Pantries based on the allocation formula used during the application process without an additional vote of the remaining voting agencies.
      2. Reallocate funding to the new Food Pantry or Food Bank without an additional vote of the remaining Food Pantries.
      3. Reallocate a portion of the funds to support short-term solutions.
      4. Exception:
        1. If this was decided on at the Biennial Meeting, then the Lead Agency is obligated to follow the agreed upon process.
    2. The Lead Agency may elect to hold a meeting with the remaining Food Pantries to determine the best use of the funds. This could include such decisions as giving the funding to the Food Pantry(ies) closest to the closing/terminated Food Pantry or spending the funds on some purchase that would benefit all providers such as a group food purchase or equipment purchase.
      1. The Lead Agency must have the support of two-thirds of the participating voting agencies (Lead and Food Pantry Sub Agencies) or permission from Food Assistance when distributing the funds differently than the original allocation formula.
    3. Lead Agencies must notify Food Assistance in writing the result of the reallocation, and if applicable, provide verification that the parties involved were in agreement of reallocation.

10.4 Food Assistance Compliance Management

  1. Food Assistance will conduct an initial Risk Assessment prior to executing Agreements.
    1. Prior to executing Agreements, Lead Agencies will have completed FA Accounting System and Financial Capability Questionnaire (AGR-2383).
    2. Questionnaire must be submitted to Food Assistance and used to initially assess risk based upon responses provided.
      1. The Lead Agency must have submitted at least one Financial Capability Questionnaire within the last 12 months. One completed Questionnaire per year, regardless of the various types of funding an entity receives.
    3. Responses will be scored according to Questionnaire’s scoring rubric and total score will be rated as low, medium, or high-risk.
    4. Lead Agencies with a High-Risk rating will require additional program reviews and more in-depth monitoring.
  2. Food Assistance will monitor Agreements.
    1. Food Assistance will conduct monitoring of Lead Agencies by evaluating monthly submitted expenditure reports and responses to other requests that include program reviews on-site, virtual, or by a desk review. At any time, Food Assistance may request a Lead Agency to send in all supporting documentation for expenditures.
    2. Food Assistance will conduct program reviews every four years with Lead Agencies who are performing at an adequate level.
      1. Serious performance issues will merit additional program reviews.
      2. High risk ratings will merit additional program reviews and/or more in-depth monitoring processes to ensure compliance.
    3. Lead Agencies with EFAP budgets of less than $40,000 per year may receive desk reviews in lieu of on-site/virtual reviews unless there are serious performance issues.
  3. Food Assistance will conduct Lead Agency program reviews.
    1. Food Assistance will schedule program reviews prior to the visit by sending a written notice by email to the program and fiscal staff who will be involved in the visit. Written notice may also be sent to the director.
    2. Food Assistance will request Lead Agencies to submit documentation prior to the review.
    3. A copy of the FA Lead Agency Review (AGR-2225) will be sent to the Lead Agency’s signature authority, as well as applicable program and fiscal staff. Food Assistance will keep a copy of the review on file.
    4. If necessary, Food Assistance will develop an action plan with the Lead Agency, including due dates of responses, to ensure that identified findings are addressed in a timely and appropriate manner.
    5. Food Assistance reserves the right to visit any of the Lead Agencies Sub Agencies in order to evaluate the Lead Agency’s ability to effectively administer EFAP at the local level.
  4. Food Assistance may recapture and reallocate Agreement funds.
    1. Throughout the Agreement, Food Assistance monitors the Lead Agency performance. If Lead Agencies fail to achieve 65 percent of their yearly performance goals (expenditures and activities) stated on the Agreement face sheet by March 31 or the date designated by Food Assistance, then Food Assistance may reduce funds available based on actual performance and negotiation between Food Assistance and the Lead Agency.
      1. Lead Agencies may reallocate funds from one of its Sub Agency Food Pantries to another if a Sub Agency does not claim, or only partially spends, its portion of the allocated funds.
    2. Food Assistance may recapture unclaimed funds if a Lead Agency does not submit expenditure reports on time.
      1. If the Lead Agency fails to file monthly expenditure reports for three consecutive months, then Food Assistance may elect to terminate the Agreement.
  5. Food Assistance may suspend or terminate the Agreement in part or in whole.
    1. Food Assistance must follow the process for termination or suspension as provided in the General Terms and Conditions in the Agreement.
    2. Food Assistance may terminate or suspend the Agreement, with 30 days’ advance notice, as outlined in the Lead Agency’s corrective action policies and as the subcontract allows.
      1. Regardless of whether the termination is for cause or at will.
    3. If Food Assistance determines to terminate because the Lead Agency fails to comply with the Agreement (termination for cause), Food Assistance may provide notice and offer the Lead Agency the opportunity to correct the noncompliance. The notice will provide a time by which the Lead Agency must return to compliance.
    4. If the Lead Agency fails to correct the noncompliance within the time Food Assistance allows, Food Assistance may then immediately terminate the Agreement.
  6. Food Assistance will select a new Lead Agency during an Agreement period if the Lead Agency closes or is terminated.
    1. If a Lead Agency vacancy occurs during an Agreement period, a new Lead Agency must be selected for the remainder of the Agreement period. The process will be as follows:
      1. Food Assistance will contact the Food Pantries in the county(ies) to inform them that a new Lead Agency must be selected and seek input on prospective Lead Agencies (and Food Bank, if applicable).
        1. Food Assistance will determine the selection process and make the final selection for the new Lead Agency when a Lead Agency closes or is terminated.
          1. Food Assistance may also opt to select the new Lead Agency and Food Bank(s) based on a two-thirds majority vote of eligible agencies in the impacted county (ies).
        2. If a Lead Agency is also a Food Bank, then Food Assistance will select a new organization or multiple organizations to fill those roles.
        3. Food Assistance will determine any prospective Lead Agency’s eligibility prior to selection.
      2. Food Assistance will enter into an Agreement with the new Lead Agency.
      3. The new Lead Agency will enter into new Agreements with the Food Pantries and with the continuing or new Food Bank, if any.

10.5 Lead Agency Dispute Policy

  1. When a dispute arises between the Lead Agency and a Sub Agency that cannot be resolved by direct negotiation, the Sub Agency must follow the Lead Agency’s dispute process. The Lead Agency dispute resolution process may not include WSDA or Food Assistance as the arbitrator. Food Assistance is available to review and provide feedback to Lead Agencies when they are dealing with a Sub Agency dispute.
  2. The Lead Agencies must establish a dispute process.
    1. The Lead Agencies must establish a policy for when disputes arise between the Lead Agencies and a Sub Agency. The Lead Agencies must have their dispute process completed no later than 30 days after the execution of the Agreement. This policy must be approved by Food Assistance.
  3. The Lead Agencies must provide this dispute process in writing to all Sub Agencies.
    1. The Lead Agencies must provide a copy of the dispute process to all Sub Agencies within 45 days of the Agreement execution date.
  4. Dispute resolution resources:
    1. Authorized by the state legislature in the 1984 Court Improvement Act, Dispute Resolution Centers (DRCs) help create solutions to resolve disagreements by offering voluntary, confidential, informal, and non-adversarial alternatives to the legal system. Each DRC is a private, nonprofit organization or a service of local government with community-based facilitators. A list of DRC’s by county may be found at: https://www.courts.wa.gov/court_dir/?fa=court_dir.dispute

10.6 Food Assistance Dispute Policy

  1. When a dispute arises between Food Assistance and the Lead Agency that cannot be resolved by direct negotiation, the Lead Agency may request a review by WSDA's Director, who may designate another person (designee) to hear the dispute, as follows:
  2. Disputing a Food Assistance decision.
    1. Lead Agencies may appeal to WSDA any substantive decision of Food Assistance to deny, award, recapture, reallocate, suspend, or terminate funds that are believed to be to be unfair, unreasonable, or have a major adverse impact on local delivery of services.
    2. Food Assistance must provide Lead Agencies with a copy of the dispute policy prior to or with any substantive decision.
    3. Any decision of Food Assistance to deny, award, recapture, reallocate, suspend, or terminate funds will stand until the dispute review process is completed and will only be modified or reversed as a result of the dispute review process.
  3. The Lead Agency dispute review process.
    1. The request must:
      1. Be written;
      2. Identify the Lead Agency’s name, address, and Agreement number;
      3. State the disputed issue(s);
      4. State each party’s position;
      5. Be sent to the Director, with a copy to the Food Assistance Program Manager within 15 working days after the parties agree that they cannot resolve the issue.
    2. The Food Assistance Program Manager must submit a written answer to the request to both the Director or the Director’s designee and the requestor within 10 working days.
    3. The Director or Director’s designee must review the written statements and provide a decision in writing to both parties within 15 working days. At the discretion of the Director or Director’s designee, the time in which to make a decision may be extended upon notice to both parties.
    4. The decision of the Director or the Director’s designee will be the final agency decision.
    5. The parties must attempt to resolve the dispute under this policy and as in the Disputes section of the Agreement, before filing a claim in any tribunal.
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EFAP Procedures Manual Table of Contents
Section 9
Revision History
Section 10 Revision 2024-07-01