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. Direct certification is a process conducted by the states and by local educational agencies to certify eligible children for free meals without the need for household applications.

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.

The School Lunch Eligible Non-Participants Study, conducted for USDA's Food and Nutrition Service, was designed to determine "why children eligible to participate for free and reduced-price meals do not apply or participate" in school nutrition programs.

The study examined the costs charged to SFAs (reported costs), as well as those costs incurred by the school district in support of SFA operations, but not charged to the SFA (unreported costs). Together, the reported costs and the unreported costs are the full cost of meal production.

Prior to 1982, school districts were not required to verify the income or household size declared by households that applied for meal benefits. It was assumed that households were correctly reporting their income, and children from households that applied and declared a sufficiently Low income were given free or reduced-price meals. From 1982 to the present, the verification of household income for at least some of the approved application s for meal benefits has been part of each school district's responsibilities.