Review of Arkansas Department of Human Services' Systems and Procedures for Recovering and Refunding Overpayments made Under the Aid to Families with Dependent Children Program

This final report points out that from July 1, 1997 through January 31, 2002 a total of $1.4 million ($1.0 million Federal Share) in AFDC overpayments had been recovered by the Arkansas Department of Human Services (ADHS).  We recommended that ADHS refund $1.0 million to the Administration for Children and Families (ACF) in accordance with Federal requirements and that they refund the Federal share of subsequent AFDC recoveries to ACF in the form of a check at least quarterly.  The ADHS stated it has established internal procedures for processing and submitting AFDC overpayment collections and that it will be refunding the recommended $1.0 million in overpayments within 30 days and any subsequent overpayment recoveries on a quarterly basis beginning in September 2002.