This report provides improper payments estimates for FY 2009 using a methodology for “aging” the 2005 bookend study. This updates previous reports providing estimates from 2005 to 2008.

This study identifies how spending patterns, such as the rate at which households spend their benefit, changed following the ARRA benefit increase and analyzes how spending patterns differed across household characteristics, time and states.

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.

In 1991 and 1998, FNS conducted national studies of WIC vendors to determine the extent of vendor violation of program rules. After the 1998 study, FNS issued regulations to correct vendor practices. The 2005 study replicates the 1998 study to determine whether the regulations were effective, and to measure the frequency of vendor violations and the degree to which vendors charge accurate prices for WIC transactions.

The Prime Vendor Pilot was conducted as part of USDA's Business Process Re-engineering efforts to improve the administration and operation of the Food Distribution Program on Indian Reservations. Under this pilot, USDA partnered with the Department of Defense, which had an existing contract with commercial vendors and distributors.

FNS published “The WIC Vendor Management Study, 1998” in July 2001 which examined, in part, the extent to which retail grocers, defined as WIC “vendors” were violating program rules and regulations. The 1998 study is a follow-up to the “WIC Vendor Issues Study, 1991” published by FNS in May 1993. 

This report fulfills the request from Congress in the House Appropriations Committee Report (HR 107-116), which accompanied the Agriculture Appropriations Act for fiscal year 2002.

The purpose of the study was to learn the extent to which retail grocers, defined as "vendors" in the WIC Program, authorized to provide food to WIC participants, were violating program rules and procedures, and to determine which programmatic and/or demographic variables could be associated with vendor violations.