This report responds to a requirement of PL 110-246 to assess the effectiveness of state and local efforts to conduct direct certification of children for free school meals. Under direct certification, children are determined eligible for free meals without the need for household applications by using data from other means-tested programs.

This is the third in a series of annual reports assessing administrative error associated with the local educational agency’s approval of applications for free and reduced-price school meals. 

This report uses data from the National Health and Nutrition Examination Survey (NHANES 1999-2004) to provide a current and comprehensive picture of the diets of school-aged children. Data are presented for children who participated and did not participate in the National School Lunch Program. For comparison purposes, results are provided for low-income children and higher income children for both participants and nonparticipants.

This study examines the cost of producing National School Lunch Program and School Breakfast Program meals during school year 2005-06. It measures both reported costs – costs charged directly to school food service accounts – and unreported costs – those costs paid by school districts in support of school food authority operations – to estimate the full cost of meal production.

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.

The Child Nutrition and WIC Reauthorization Act of 2004 directed the Secretary of Agriculture to conduct a study of the feasibility of using computer technology to reduce over-certification, waste, fraud and abuse in the National School Lunch Program.