The study generates national estimates of administrative error in eligibility determinations and benefit issuance for free or reduced-price school meals.  For school year 2012-2013, local education agencies correctly certified 96.4% of students who applied for meal benefits.  LEAs assigned the correct free, reduced-price, or paid status to a slightly smaller 96.2% of students. 

The Healthy, Hunger-Free Kids Act directed USDA to study the extent to which school food authorities  participating in the National School Lunch and School Breakfast programs pay indirect costs to local education agencies. It specifically requested an assessment of the methodologies used to establish indirect costs, the types and amounts of indirect costs that are charged and not charged to the school foodservice account, and the types and amounts of indirect costs recovered by LEAs.

Under the Community Eligibility Provision, schools do not collect or process meal applications for free and reduced-price meals served in the National School Lunch Program and School Breakfast Program. Schools must serve all meals at no cost with any costs in excess of the federal reimbursement paid from non-federal sources. 

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 report summarizes the results of the school year 2008-09 application verification process for the National School Lunch Program and School Breakfast Program. Each year, Local Educational Agencies review a sample of applications that they approved for free or reduced-price school meal benefits at the start of the school year.