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B-194548 1 (1979-07-10)

handle is hein.gao/gaobadhjs0001 and id is 1 raw text is: THE COMPTROLLEP GENERAL DECIIONOF THE UNITED STATES WASHINGTON, D, C, 20548 FILE: B-1945f8 DATE: JUL 10 1979 MATTER OF: Use of L orrowing <uthority/o meet AFDC and Medicaid entitlements DIGEST: 1. Provisions in HEW 1979 Appropriation Act provide HEW with authority to make entitlement payments to States in final quarter of 1979 fiscal year for both AFDC and Medicaid and charge corresponding 1980 HEW appropriation if, for any reason, 1979 appropriations to meet entitlements in those pro- grams are insufficient. This includes insufficiency caused by HEW's implementation of section 201 of its 1979 Appropriation Act, which reduced HE W's budget authority for fiscal 1979 by $1 billion to be achieved by reducing fraud, abuse, and waste, since HEW's $831 million reduction of AFDC and Medicaid was based on past State error rates and did not correct, identify, or eliminate improper payments. 2. Statutory language and legislative histor¾ f sec - tion 201 of 1979 HEW A. propriation Act,' which reduced HEW's budget authori y for fiscal 1979 by $1 billion, clearly indicate that $1 billion reduction was to be achieved solely by reducing fraud, abuse, and waste, and was not intended, in any way, to affect legitimate entitlements. Therefore, HEW can use its authority to borrow from its 1980 appropriation to replace funds cut from 1979 appropriation for AFDC and Medicaid in HEW's attempt to comply with sec- tion 201, if such additional funds are needed to make entitlement payments to States for those programs during final quarter of 1979 fiscal year. This decision is in response to a request from the Acting Sec- retary of Health, Education, and Welfare (HEW) for our opinion on HEW's authority to borrow from its appropriation for fiscal year 1980 (not yet enacted) to meet entitlements in the final quar- ter of the present fiscal year in the Medicaid and Aid For Depend- ent Children (AFDC) programs. As explained by HEW-- ~1 msooj O0 1 -I- 42~44~4 I - ), RI 7 7 7 /7 i PTIs

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