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.

The study examined the costs charged to SFAs (reported costs), as well as those costs incurred by the school district in support of SFA operations, but not charged to the SFA (unreported costs). Together, the reported costs and the unreported costs are the full cost of meal production.