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DO0CUMENT i~SUdE
06201 - (B14665181
(Improvements Needed in AFDCs Program for Rec3wrvring
Overpayments]. HRD-78-117; B-164031(4). eay 25, 1978. 7 pp.
Report to Secretary, Department of Health, Education, and
Jelfare; by Gregory J. Ahart, Director, Human Resources Div.
Issue area: Income Security Programs: Eligibility Determination
(1301); Income Security Programs: Program Effectiveness
(1302);Zncome Security Programs: Program Monitoring and
Administration (1303).
Contact: Human Resourcts Div.
Budget Function: Income Secezity: Public Assistance and Other
Income Supplements (604).
Organization Concerned: Social Security Administration.
Congressional Relevance: House Cxamittee an rays and Beans;
Senate Committes on Finance.
Authority: Social Security Act (42 U.S.C. 601). =45 C.F.R. 223.
The Social Security Administration estimates that over
$850 million, about on,'.-half of which was Federal funds, was
erroneously paid to recipients of the Aid tc Families with
Dependeut Children (&FDC) program during 1976. The AFDC program
is a cioperative Federal-State program which provides aid in the
fern of cash assistance and social services to needy, dependent
children and their caretaker relatives. States are not required
to establish an AFDC program, but if they do it must be approved
by the Department of Health, Education, and Velfare (HE).
Federal regulations allow States to reduce a recipient's AFDC
benefits to recover overpayments caused by willful withholding
or misstating of information which could affect eligibility or
benefit amount. States are alloyed considerable latitude in
recove-ing overpayments caused by recipients willfully
withho- ling information. Some States require recipients to fully
repay cverpayments while others either waive the amount
overpaia, seek voluntary repayment, or attempt recovery only if
fraud is involved. States are not required to maintain either
complete records of the amounts overpaid or the disposition of
those accounts. The Secretary of HEV should revise HEV5s
regulations to establish uniform and comprehensive overpayment
recovery policies in the AFDC prograr, including requiremen's
for States to: (1) maintain information on the tctal number and
amount of overpayments involved and their disposition; and (2)
establish a mechanism for assessing the effectiveness of their
overpayment recovery efforts. The Commissioner of the Social
Security Administration should assist the States in establishing
an appropriate mechanism for monitoring and evaluating the
adequacy of recovery efforts. (RRS)](ViewImageLocal?handle=hein.gao/gaobaaxjt0001&div=1&collection=&method=preview&ext=.png&size=3)