Review of New Mexico's Human Services Department Systems and Procedures for Recovering and Refunding Overpayments Made Under the Aid to Families with Dependent Children Program

EXECUTIVE SUMMARY:

The objectives of this review were to determine whether New Mexico has systems and procedures to:  (1) properly identify, collect and report Aid to Families with Dependent Children (AFDC) overpayment recoveries, and (2) refund the correct amount of AFDC overpayment recoveries to the Federal Government.  State agencies are required to pursue AFDC overpayments made prior to October 1, 1996 and make appropriate refunds to the Federal Government.  Collections of overpayments occurring after that date are to be used to offset Temporary Assistance to Needy Families expenditures in the year collected.  Generally, the state has systems that identify, collect and report overpayment recoveries.  However, these systems did not separately identify  recoveries of AFDC overpayments.  As a result, the state did not refund to the Federal Government its proportionate share of those collections.  We recommended recovery of approximately $3.4 million.  State officials concurred with our recommendations.