This is the first of a series of annual reports which will assess the administrative error associated with school food authorities’ approval of applications for free and reduced-price school meals. More than 95 percent of students who were approved for benefits on the basis of an application were receiving correct benefits, based on the information in the application files. In school year 2004-05, 3.5 percent of all students who submitted an application for free/reduced-price meal benefits had an administrative error in the processing of their applications,

This is the first of a series of annual reports which will assess the administrative error associated with school food authorities’ approval of applications for free and reduced-price school meals. More than 95 percent of students who were approved for benefits on the basis of an application were receiving correct benefits, based on the information in the application files. In school year 2004/05, 3.5 percent of all students who submitted an application for free/reduced-price meal benefits had an administrative error in the processing of their applications.

The Child Nutrition and WIC Reauthorization Act of 2004 directed the Secretary of Agriculture to conduct a study of the feasibility of using computer technology to reduce over-certification, waste, fraud and abuse in the National School Lunch Program.

USDA sponsored the NSLP Application/Verification Pilot Projects to test ways to improve the process for certifying students for free or reduced-price meals. This report presents findings on the impacts of two alternatives to the current application-based certification process - Up-Front Documentation and Graduated Verification - that were tested in 12 public school districts over a three-year period.

This report presents the results of a case study of verification in 21 large metropolitan SFAs around the country. The study examined outcomes of the verification process and made an independent assessment of income eligibility of households with specific verification outcomes using data from in-person interviews with families.

From July to September 2002, FNS reviewed the free and reduced price eligibility determination process (i.e., application, verification, reapplication, meal ticket status) for each of 3,474 applications selected for verification in 14 large school food authorities in the 2001-02 school year. These SFAs enroll nearly one million children, among whom 45 percent were approved for free meals and 7 percent were approved for reduced price meals as of Oct. 31, 2001.

The NSLP offers free and reduced-price school meals to students from eligible households. Households with incomes at or below 130 percent of poverty are eligible for free meals, and households with incomes between 131 percent and 185 percent of poverty are eligible for reduced-price meals. Traditionally, to receive these benefits, households had to complete and submit application forms to schools or be directly certified. Direct certification, on the other hand, is a method of eligibility determination that does not require families to complete school meal applications. Instead, school officials use documentation from the local or state welfare agency that indicates that a household participates in AFDC or food stamps as the basis for certifying students for free school meals.

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.