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Precedential
Precedential
overpayments from the states that had not complied with the
reimbursement requirements.
The OIG audit found that the Pennsylvania DPW, the
state agency responsible for administering the former AFDC
and current TANF programs, had recovered $10,598,095 in
AFDC overpayments from October 1, 1996 through June 30,
2006, but had not reimbursed ACF for the federal share of
$5,609,572. Pursuant to this audit, on June 26, 2008, the OIG
sent a letter to DPW requesting remittance of the federal
share of $5,609,572 by check made payable to HHS within 30
days.
DPW appealed this reimbursement request, or
disallowance, to the HHS Departmental Appeals Board
(DAB or Board). DPW did not contest the OIG audit
findings with respect to either the amount of AFDC
overpayments recovered or the calculation of the federal
share. Rather, it challenged HHS authority to conduct the
audit. It argued that PRWORA 116(b) designates the SAA
as providing the exclusive audit procedure for the close-out of
the AFDC program, and thus precludes HHS from requiring
reimbursement based on the results of its own audit. DPW
submitted declarations stating that its federal programs,
including TANF, had been subject to SAA audits since 1996,
and that none of the audits had taken any exception . . . or
finding . . . relative to DPWs retention of overpayment
recoveries from the [AFDC] program. (A. 161.) DPW
argued that HHS was bound by the results of these audits.
DPW also argued that it was entitled to retain the
recovered overpayments under HHS policies. It contended
that PI 2000-2 permitted it to retain the overpayments
collected before September 1, 2000, because it was not
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