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.

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 (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.

Program errors and the risk of erroneous payments in the National School Lunch Program (NSLP) and School Breakfast Program (SBP) continue to be a concern. Slightly more than one in five students were certified inaccurately or erroneously denied benefits in school year (SY) 2005-06. New data estimates the gross cost of school meals erroneous payments due to certification error at about $935 million while other operational errors represent about $860 million.