This is the tenth in a series of annual reports to examine administrative errors incurred during the local educational agency’s (LEA) approval process of household applications for free and reduced-price meals in the National School Lunch Program (NSLP). This report examines administrative error estimates in student certification for free and reduced-price NSLP meals.

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. 

FNS developed the Access, Participation, Eligibility and Certification (APEC) study series, which collects and analyzes data from a nationally representative sample of schools and school food authorities (SFAs) about every 5 years. APEC allows FNS to develop a national estimate of erroneous payment rates and amounts in three key areas: certification error, meal claiming error and aggregation error.  FNS recently completed APEC II, which collected data in School Year 2012-2013 and this report summarizes those findings.

The Healthy, Hunger-Free Kids Act of 2010 required the Food and Nutrition Service to conduct a demonstration that adds Medicaid to the list of programs used to directly certify students for free school meals. Although students receiving Medicaid are not categorically eligible for free meals, the DC-M demonstration authorizes selected States and districts to use income information from Medicaid files to directly certify those students found to be eligible for free meals.

The Healthy, Hunger-Free Kids Act of 2010 (HHFKA; PL 111-296) required the USDA Food and Nutrition Service to conduct a demonstration that adds Medicaid to the list of programs used to directly certify students for free school meals. Although students receiving Medicaid are not categorically eligible for free meals, the DC-M demonstration authorizes selected States and districts to use income information from Medicaid files to directly certify those students found to be eligible for free meals.

This report uses statistical modeling techniques to assess the relationship between direct certification performance and specific State practices, seeking best practices and providing recommendations for States to use when developing their Continuous Improvement Plans.

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 purpose of this study is to describe current methods of direct certification used by state and local agencies and challenges facing states and local education agencies in attaining high matching rates. 

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.