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HRD-77-6 1 (1976-10-21)

handle is hein.gao/gaobaaccb0001 and id is 1 raw text is: N. UNITED STATES GENERAL ACCOUNTING OFFICE 2 ~~~~~~ ~WASHiINGTON, D.C. Z0548 IIII3~ I NI~li I 0 LM101737 HUMAN RZSOURC= DOVISION B-164031(3) OCT 2 1 1976 The Honorable The Secretary of Health, Education, and Welfare Dear Mr. Secretary: Based on our review of the Aid to Families with Dependent Children (AFDC) progLam in Ohio, we estimate that, in fiscal year 1975, Federal and State funds of $3.2 million in cash assistance (AFDC) and $1.5 million in medical services (Medi- caid) were paid to families previously determined to be in- eligible for such aid. The payments were made because of delays in communicating information from counties to the State's centralized payment center. These delays also re- sulted in AFDC overpayments to eligible families. The State estimates that the overpayments in fiscal year 1975 were at least as much as the $3.2 mill4on paid to ineligibles. HEW did not review Ohio's AFDC program in fiscal year 1975 and, therefore, was unaware o the problem. As part of a review of States' procedures for making AFDC eligibility determinations, we reviewed Ohio's procedures for closing cases and adjusting grant amounts in two counties and at the Department of Public Welfare in Columbus. The two counties had problems in promptly transmitting information on closed cases and adjustments which resulted in an extra month's AFDC payment and Medicaid coverage to ineligible fami- lies and AFDC overpayments and underpayments to eligible fami- lies. Ohio is making changes to correct the situation. These changes, if properly implemented, could save about $5 million annually. We believe that HEW should monitor Ohio's correc- tive-actions and, because this problem is not considered an error in SEW's quality control program, HEW should be aware that similar problems may exist in other States. HRD-77-6

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