Review of States' Reimbursement of the Federal Share of Aid to Families With Dependent Children Overpayment Recoveries

EXECUTIVE SUMMARY:

Of the 43 States reviewed, 24 States complied with Federal requirements and reimbursed ACF $59 million for the Federal share of Aid to Families With Dependent Children (AFDC) overpayment recoveries from July 2002 through June 2006.  Although the remaining 19 States and the District of Columbia continued to recover overpayments from former AFDC recipients after the program ended, these governments did not reimburse ACF $28.7 million for the Federal share of their recoveries.  The 19 States and the District of Columbia did not reimburse ACF as required because they did not follow ACF's program instruction on refunding the Federal share of AFDC overpayment recoveries.  In addition, ACF did not have monitoring procedures to ensure that the Federal Government received its share of AFDC overpayment recoveries from all States. 

We recommended that ACF (1) collect from the 19 States and the District of Columbia the Federal share of AFDC overpayment recoveries totaling $28.7 million and (2) establish monitoring procedures to ensure that the Federal Government receives its share of future State-recovered AFDC overpayments in a timely manner. ACF agreed with both recommendations.

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