The study generates national estimates of administrative error in eligibility determinations and benefit issuance for free or reduced-price school meals. For school year 2012-2013, local education agencies correctly certified 96.4% of students who applied for meal benefits. LEAs assigned the correct free, reduced-price, or paid status to a slightly smaller 96.2% of students.
The purpose of this study is to describe current methods of direct certification used by state and local agencies and challenges facing states and local education agencies in attaining high matching rates.
The Healthy, Hunger-Free Kids Act directed USDA to study the extent to which school food authorities participating in the National School Lunch and School Breakfast programs pay indirect costs to local education agencies. It specifically requested an assessment of the methodologies used to establish indirect costs, the types and amounts of indirect costs that are charged and not charged to the school foodservice account, and the types and amounts of indirect costs recovered by LEAs.
Under the Community Eligibility Provision, schools do not collect or process meal applications for free and reduced-price meals served in the National School Lunch Program and School Breakfast Program. Schools must serve all meals at no cost with any costs in excess of the federal reimbursement paid from non-federal sources.
Program errors and the risk of erroneous payments in the National School Lunch Program (NSLP) and School Breakfast Program (SBP) continue to be a concern. Slightly more than one in five students were certified inaccurately or erroneously denied benefits in school year (SY) 2005-06. New data estimates the gross cost of school meals erroneous payments due to certification error at about $935 million while other operational errors represent about $860 million.
The Child Nutrition and WIC Reauthorization Act of 2004 permits direct verification of school meal applications and requires FNS to evaluate the feasibility and effectiveness of direct verification (instead of household verification) by school district.
This study examines the feasibility of expanding the use of computer matching for certification and verification of children eligible for free and reduced-price meals funded under the National School Lunch Program. This study provides a detailed description of how computer matching is currently used and how it could be used.