This is the tenth in a series of annual reports to examine administrative errors incurred during the local educational agency’s (LEA) approval process of household applications for free and reduced-price meals in the National School Lunch Program (NSLP). This report examines administrative error estimates in student certification for free and reduced-price NSLP meals.

FNS developed the Access, Participation, Eligibility and Certification (APEC) study series, which collects and analyzes data from a nationally representative sample of schools and school food authorities (SFAs) about every 5 years. APEC allows FNS to develop a national estimate of erroneous payment rates and amounts in three key areas: certification error, meal claiming error and aggregation error.  FNS recently completed APEC II, which collected data in School Year 2012-2013 and this report summarizes those findings.

The Healthy, Hunger-Free Kids Act of 2010 required the Food and Nutrition Service to conduct a demonstration that adds Medicaid to the list of programs used to directly certify students for free school meals. Although students receiving Medicaid are not categorically eligible for free meals, the DC-M demonstration authorizes selected States and districts to use income information from Medicaid files to directly certify those students found to be eligible for free meals.

The Healthy, Hunger-Free Kids Act of 2010 (HHFKA; PL 111-296) required the USDA Food and Nutrition Service to conduct a demonstration that adds Medicaid to the list of programs used to directly certify students for free school meals. Although students receiving Medicaid are not categorically eligible for free meals, the DC-M demonstration authorizes selected States and districts to use income information from Medicaid files to directly certify those students found to be eligible for free meals.

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.