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 program assessment of the Family Day Care Home component of USDA's Child and Adult Care Food Program provides a national estimate of the share of CACFP family day care homes that are in the wrong reimbursement tier. 

This is the first of a series of annual reports which will assess the administrative error associated with school food authorities’ approval of applications for free and reduced-price school meals. More than 95 percent of students who were approved for benefits on the basis of an application were receiving correct benefits, based on the information in the application files. In school year 2004-05, 3.5 percent of all students who submitted an application for free/reduced-price meal benefits had an administrative error in the processing of their applications,

FNS uses a set of EBT-based administrative tools and undercover investigations to identify and sanction trafficking retailers, and to estimate the extent of trafficking. The estimates of the amount of trafficking, the trafficking rate, and the store violation rate reported here are based on information from almost 33,000 stores subject to administrative or undercover investigation from late 2002 through 2005.

The NSLP offers free and reduced-price school meals to students from eligible households. Households with incomes at or below 130 percent of poverty are eligible for free meals, and households with incomes between 131 percent and 185 percent of poverty are eligible for reduced-price meals. Traditionally, to receive these benefits, households had to complete and submit application forms to schools or be directly certified. Direct certification, on the other hand, is a method of eligibility determination that does not require families to complete school meal applications. Instead, school officials use documentation from the local or state welfare agency that indicates that a household participates in AFDC or food stamps as the basis for certifying students for free school meals.

This report duplicates the precise methodology of the earlier analysis with more than 10,000 new investigations to generate an estimate for the 1996 - 1998 calendar year period.

This report explores the feasibility and potential cost of enabling EBT systems to differentiate between program-eligible and ineligible items. It considers the cost of upgrading systems in stores that now have scanners and the cost of installing new systems in stores without scanners. The report also examines the potential for the purchase of ineligible items even with the introduction of new technological controls.