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Federal regulations require States to pursue Aid to Families with Dependent Children (AFDC) overpayments made prior to October 1, 1996, and make appropriate refunds to the Federal Government. This follow-up report points out that the State agency refunded to the Federal Government the estimated Federal share of AFDC overpayments totaling $1.8 million recovered by Chemung, Erie, Monroe, Nassau, and Suffolk Counties (the local districts) during the period December 1, 1996, through April 30, 2002, as recommended in our prior report (A-02-02-02001). However, the State agency did not implement our recommendation to ensure that the Federal share of AFDC overpayment recoveries collected by the local districts subsequent to April 30, 2002, were returned to the Federal Government in a timely manner. As a result, the State agency did not refund the estimated Federal share of AFDC overpayments totaling $347,375 recovered by the local districts during the period May 1, 2002, through January 31, 2007. We recommended that the State agency (1) refund $347,375 to the Federal Government and (2) ensure that the Federal share of AFDC overpayment recoveries collected by the local districts subsequent to January 31, 2007, are refunded to the Federal Government in a timely manner. State agency officials did not dispute the estimate of $347,375 to the Federal Government.