The Improper Payments Information Act of 2002 (PL 107-300) requires all federal agencies to calculate the amount of erroneous payments in federal programs and to periodically conduct detailed assessments of vulnerable program components.
This program assessment of the Family Day Care Home (FDCH) component of USDA's Child and Adult Care Food Program (CACFP) provides a national estimate of the share of CACFP family day care homes that are in the wrong reimbursement tier. FDCHs that are misclassified on their tiering levels translate into improper payments because misclassified FDCHs do not receive the appropriate level of reimbursement for the meals and snacks provided to the children.
This study also estimates the dollar amount of improper payments attributable to tiering misclassifications of FDCHs.