This report provides the 2015 national estimate of incorrect payments for the meal reimbursements. The assessment calculates both overpayments and underpayments for FDCHs that earn either Tier 1 (higher) or Tier II (lower) reimbursements depending on the location and circumstances of the child care provider or the participating children.

To manage the Child Nutrition programs effectively, FNS collects and analyzes information from annual State-level management reports. However, because these State-level reports vary considerably in both format and content, FNS is unable to rely on this source for all of its ongoing information needs.

The study collected data on-site on food, labor, and other meal production costs for a five day period. A major goal was to test the feasibility of identifying meal production costs that were not charged to the SFA account (to obtain full costs) and directly allocating costs to different SFA activities.