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Need for HEW To Recover Federal Funds in Uncashed AFDC Checks

HRD-79-68 Published: Apr 05, 1979. Publicly Released: Apr 05, 1979.
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Highlights

GAO reviewed the requirements and practices for refunding or crediting the federal government's portion of checks that were issued to Aid to Families with Dependent Children (AFDC) recipients, but never cashed. Federal AFDC expenditures in fiscal year 1977 amounted to over $5 billion.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Health and Human Services The Secretary of Health and Human Services should direct the Commissioner of Social Security to establish uniform requirements for states to credit the federal government for its portion of uncashed AFDC checks.
Closed – Implemented
The requirements established in the 1985 regulations fulfilled the intent of this recommendation.
Department of Health and Human Services The Secretary of Health and Human Services should direct the Commissioner of Social Security to establish a mechanism for ensuring that these credits are timely and accurate.
Closed – Implemented
The requirements established in the 1985 regulations fulfilled the intent of this recommendation.
Department of Health and Human Services The Secretary of Health and Human Services should take action to identify and recover the total amount of federal funds in uncashed AFDC checks that have not been refunded to the federal government.
Closed – Not Implemented
The Department of Health and Human Services considers the recommendation closed by issuance of the September 1985 regulations. It has no plans to initiate verification of whether states are crediting the federal share of uncashed checks against federal funds drawn down from the Federal Reserve.

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Topics

Worker and Family Assistance
Financial recordsPaymentsState-administered programsWelfare benefitsFederal fundsPublic assistance programsCommercial banksHuman capital managementHousing assistanceSocial services