This report summarizes the results of the school year 2007-08 application verification process for the National School Lunch Program and School Breakfast Program. 

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

The purpose of this pilot was to test possible methods that could lead to valid estimations of the number of meals served by family day care homes. The estimated number of meals served can be used to develop estimates of over- and under-counts of meal claims that result in erroneous payments.

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 is the third wave of a program assessment of the Family Day Care Home component of USDA's Child and Adult Care Food Program. 

FNS proposed to select a random sample of sponsoring organizations and, from each, use a random selection of the sponsor’s monitoring visits of family day care homes. Using these data, FNS would compare the number of meals claimed with the number of children observed at the time of the visit.

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.