The Improper Payments Information Act of 2002 requires all federal agencies to calculate the amount of erroneous payments in federal programs and to periodically conduct detailed assessments of vulnerable program components. This 2012 assessment of the family daycare homes component of CACFP provides a national estimate of the share of the roughly 125,000 participating FDCHs that are approved for an incorrect level of per meal reimbursement, or reimbursement "tier" for their circumstances. 

To ensure program integrity, school districts must sample household applications certified for free or reduced-price meals, contact the households, and verify eligibility. This process (known as household verification) can be burdensome for both school officials and households. Direct verification uses information from certain other means-tested programs to verify eligibility without contacting applicants. Potential benefits include: less burden for households, less work for school officials, and fewer students with school meal benefits terminated because of nonresponse to verification requests.

FNS proposed to select a random sample of sponsoring organizations and, from each, use a random selection of the sponsor’s monitoring visits of family day care homes. Using these data, FNS would compare the number of meals claimed with the number of children observed at the time of the visit.