This study is part of a larger FNS effort to ensure WIC program integrity and to comply with the Improper Payments Information Act of 2002 which requires FNS to estimate improper payments in its programs.

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 2012 assessment of the family daycare homes component of CACFP provides a national estimate of the share of the roughly 125,000 participating FDCHs that are approved for an incorrect level of per meal reimbursement, or reimbursement "tier" for their circumstances. 

Trafficking of SNAP benefits occurs when SNAP recipients sell their benefits for cash to food retailers, often at a discount. Although trafficking does not increase costs to the federal government, it is a diversion of program benefits from their intended purpose of helping low-income families access a nutritious diet. This report, the latest in a series of periodic analyses, provides estimates of the extent of trafficking during the period 2009 through 2011.

This is the eighth in a series of annual reports that examines the administrative accuracy of eligibility determinations and benefit issuance for free or reduced-price meals in the National School Lunch Program (NSLP). In School Year (SY) 2011/12, about 97 percent of students submitting applications for meal benefits were certified for the correct level of meal benefits, based on information in the application files. This was slightly higher than the 96-percent accuracy rate found in the previous school year.

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.