Review of Aid to Families With Dependent Children Overpayments in Massachusetts for the Period April 1, 2001, Through March 31, 2005

EXECUTIVE SUMMARY:

Our objective was to determine whether Massachusetts had reimbursed the Administration for Children and Families (ACF) for the Federal share of overpayments collected from former Aid to Families with Dependent Children (AFDC) recipients, in accordance with Federal requirements. Massachusetts did not reimburse the full Federal share of AFDC overpayments that it collected from former AFDC recipients from April 1, 2001, through March 31, 2005, as Federal regulations require. Massachusetts refunded $6,281,372 to ACF for the Federal share of AFDC collections. However, it should have refunded $6,331,084. It incorrectly credited $99,424 in AFDC overpayment recoveries to another program. As a result, Massachusetts owes the Federal Government $49,712 for the Federal share of these overpayments. Massachusetts agreed with our finding and recommendations.