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. 

The Child Nutrition and WIC Reauthorization Act of 2004 permits direct verification of school meal applications and requires FNS to evaluate the feasibility and effectiveness of direct verification (instead of household verification) by school district.

This is the second in a series of annual reports assessing administrative errors associated with school food authorities’ approval of applications for free and reduced-price school meals. In school year 2005/06, more than 96 percent of students who were approved for meal benefits on the basis of an application were receiving the correct level of meal benefits, based on the information in the application

files. 

In 1991 and 1998, FNS conducted national studies of WIC vendors to determine the extent of vendor violation of program rules. After the 1998 study, FNS issued regulations to correct vendor practices. The 2005 study replicates the 1998 study to determine whether the regulations were effective, and to measure the frequency of vendor violations and the degree to which vendors charge accurate prices for WIC transactions.

This study examines the feasibility of expanding the use of computer matching for certification and verification of children eligible for free and reduced-price meals funded under the National School Lunch Program. This study provides a detailed description of how computer matching is currently used and how it could be used.