This report responds to the 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 assessment provides a national estimate of the share of CACFP participating family daycare homes that are approved for an incorrect level of per meal reimbursement, or reimbursement "tier," for their circumstances. Tiering errors result in improper payments because misclassified family daycare homes do not receive the appropriate level of reimbursement for the meals and snacks provided to the children. The assessment also estimates the dollar amount of improper payments attributable to family daycare home tiering errors.

This is the sixth 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. About 98 percent of students submitting applications for meal benefits in school year 2009/10 were certified for the correct level of meal benefits, based on information in the application files. This was comparable to school year 2008/09.

This is the fifth report in a series of periodic analyses to estimate the extent of trafficking in the Supplemental Nutrition Assistance Program (SNAP). Trafficking – selling SNAP benefits to food retailers for cash - impedes the mission and compromises the integrity of SNAP. While not a cost to the Federal Government, trafficking diverts benefits from their intended purpose of helping low-income families access a nutritious diet. The Food and Nutrition Service (FNS) aggressively acts to control trafficking by using SNAP purchase data to identify suspicious transaction patterns, conducting undercover investigations, and collaborating with other investigative agencies.

Program errors and the risk of erroneous payments in the National School Lunch Program (NSLP) and School Breakfast Program (SBP) continue to be a concern. Slightly more than one in five students were certified inaccurately or erroneously denied benefits in school year (SY) 2005-06. New data estimates the gross cost of school meals erroneous payments due to certification error at about $935 million while other operational errors represent about $860 million. 

The Child Nutrition and WIC Reauthorization Act of 2004 permits direct verification of school meal applications and requires FNS to evaluate the feasibility and effectiveness of direct verification (instead of household verification) by school district.

This is the second in a series of annual reports assessing administrative errors associated with school food authorities’ approval of applications for free and reduced-price school meals. In school year 2005/06, more than 96 percent of students who were approved for meal benefits on the basis of an application were receiving the correct level of meal benefits, based on the information in the application

files. 

In 1991 and 1998, FNS conducted national studies of WIC vendors to determine the extent of vendor violation of program rules. After the 1998 study, FNS issued regulations to correct vendor practices. The 2005 study replicates the 1998 study to determine whether the regulations were effective, and to measure the frequency of vendor violations and the degree to which vendors charge accurate prices for WIC transactions.

This study examines the feasibility of expanding the use of computer matching for certification and verification of children eligible for free and reduced-price meals funded under the National School Lunch Program. This study provides a detailed description of how computer matching is currently used and how it could be used.