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HRD-79-68 1 (1979-04-05)

handle is hein.gao/gaobaayxd0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 wq HUMAN RESOURCMS OIVISION APRIL 5, 1979 B-1L64031( 4) The Honorable Joseph A. Califano, Jr. The Secretary of Health, Education, A. I'L-and Welfare Dear Mr. Secretary: 109012 We recently completed a review of the requirements and practices for refunding or crediting the Federal Government's portion of checks that were issued to Aid to Families with Dependent Children (AFDC) recipients but never cashed. Our review was made principally in Massachusetts-and New York. According to the latest data available from the Social Security Administration (SSA), Federal AFDC expenditures in fiscal year 1977 amounted to over $5 billion. However, information on the amount of refunds due and repaid to the Federal Government from u-ncashed checks was not available. The return of Federal AFDC funds for checks that were never cashed was generally left to the States' discretion. Although we did not determine why the checks were not cashed, information obtained on 11 of the 50 States showed that these States allowed AFDC checks to be negotiated 30 days to 2 years after they were issued, at which time the checks are usually canceled. In addition, once States acted to void the checks, there was no mechanism to insure that the Federal Government received credit for its portion of these funds. In Massachu- setts, $4 million due to the Federal Government for AFDC checks issued from fiscal year 1968 through fiscal year 1977 had not been credited. While New York generally makes- tbese credits, one of the counties we visited had not made a $5,000 credit for checks issued but not cashed since 1974. The Department of Health, Education, and Welfare (HEW) Audit Agency found in 1976 and 1977 that the Federal Govern- ment had not been given credit for $6.3 million in AFDC funds due it from Illinois and Puerto Rico. However, neither HEW's former Social and Rehabilitation Service (previously responsible for the AFDC program) nor SSA has taken necessary actions to insure that the Federal Government is properly credited moneys owed it from uncashed checks. HRD-79-68 004kg~1(105059) pA

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