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DCCUMENT FESUME
03966 - [B2794037]
Management of the ATLC Program. October 4, 1977. 13 pp.
Testimony before the House Committee on Government Operations:
Intergovernmental Relations and Human Resources Subcommittee; by
James D. Martin, Deputy Director, Humar Resources Div.
Issue Area: Federally Sponsored or Assisted Inccme Security
Programs: Payment Processes, Procedures, anl Systems (1309).
Contact: Human Resources Div.
Budget Function: Inccme Security: Public Assistance and Other
Income Supplements (604).
Organizaticn Concerned: Department of Health, Education, and
Welfare.
Congressional Relevance: House Comwittee on Government
Cperations: Intergovernmental Relations and Human Resources
Subcommittee.
Authority: Social Security Act. H.F. 7153 (95th Cong.).
In 1964, the Department of Health, Education, and
Welfare (HEW' developed a quality control program to control
erronenus payments to recipients of Aid to Families with
Dependent Children. in April 1973 HEW introduced a fiscal
disallowance provisicn establishing allowable error rates and
said it would not reimburse States for payments exceeding those
levels. hhen the prcvision was ruled invalid by the courts
because of arbitrary tolerance levels, it was revoked. While
action cn fiscal allowances was in effect, it encouraged States
to implement programs tc reduce ericrs. Some financial incentive
is probably needed and, if disallowances bascd on State error
rates are used, they should be based on paymeiit errors rather
than case errors. Legislation has teen introduced providing for
this basis for disallowances and eicluding procedural type
errors. The accomplishments of the quality control program were
overstated because of: invalid statistical projections;
assumptions made by HEW that reduction in case errors and
savings are directly related; and failure to ccnsider
administrative costs of corrective actions. HEW should revise
its basis for deteraining accompliEbments and focus on assisting
States with the greatest difficulty in reducing errors. (HTW)](ViewImageLocal?handle=hein.gao/gaobadxwq0001&div=1&collection=&method=preview&ext=.png&size=3)