The purpose of this study is to evaluate the effectiveness of state agencies current peer group systems, and to provide guidance to state agencies on how to evaluate and update their systems. Specifically, it uses empirical analysis to identify one or more effective models for establishing vendor peer groups that could apply to most state agencies.

To ensure program integrity, school districts must sample household applications certified for free or reduced-price meals, contact the households, and verify eligibility. This process (known as household verification) can be burdensome for both school officials and households. Direct verification uses information from certain other means-tested programs to verify eligibility without contacting applicants. Potential benefits include: less burden for households, less work for school officials, and fewer students with school meal benefits terminated because of nonresponse to verification requests.

This report describes how the Direction Card system works; the process undertaken by ODJFS and its EBT vendor to design, develop, and test the system; the implementation process and experiences; and the cost of system design, development, and implementation. Volume 2 of this report compares the ongoing administrative costs of system operations and system levels of benefit loss and diversion with those of on-line EBT systems and the Dayton pilot.

Data was collected from directors of 34 school food authorities participating in the Nutrient Standard Menu Planning demonstration during fall 1995 and winter 1996. This information was used to assess the implementation status of these sites and examine perceived strengths and weaknesses of the system.