This report provides the 2015 national estimate of incorrect payments for the meal reimbursements. The assessment calculates both overpayments and underpayments for FDCHs that earn either Tier 1 (higher) or Tier II (lower) reimbursements depending on the location and circumstances of the child care provider or the participating children.

This 2013 assessment of the family daycare homes (FDCHs) component of CACFP provides a national estimate of the share of the roughly 123,000 participating FDCHs that are approved for an incorrect level of per meal reimbursement, or reimbursement "tier" for their circumstances.

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. 

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.