Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-08-08
$4,000 Paid
In Lost Year.
Senator Says
By BETTY MILES
Star Staff Writer

by BETTY MILLS
Star Staff Writer
Senator Robert c. Byrd, who
has estimated that more than
$18 million has been paid to
ineligible families on relief in
the past five years. today asked
District welfare officials to ex-
plain at least $4,000 in over
payments last year alone.
Senator Byrd told officials at
Senate District Appropriations
subcommittee hearings that it
is almost as indefensible to
make overpaymentS as it is to
give relief to those who are
ineligible.
A special investigation into
Aid to Dependent Children re-
lief categories has revealed that
81 per cent of the cases checked
were ineligible.
Based on the results of the
investigation, Senator Byrd
asked welfare officials to esti-
mate how much money may
have gone to undeserving fam
lilies on ADO. They provided
the $18,374,000 figure.
About as per cent, or So
5000. would have been in
local money, and the rest in
matching Federal funds.
Cites Overpayments
Senator Byrd. who is chair
man of the subcommittee,
brought out in today's testi-
money that $181.165 in over
payments has been recorded
in the Welfare Departments
office of investigations and col
lections for fiscal 1862.
Furthermore, he said. the
General Accounting Office Of
the Federal Government. after
a study Of the public assistance
division, reported 88 cases re-
ceived $4,000 over an average
period for six months after
they we're found to be ineligible.
None of these cases had been
referred to the Office of In
vestigations and Collections.
William r. Calvin, Welfare's
investigations and collections
officer, said that $4,000 had
been paid by mistake through
agency error, and couldn't be
collected from the client under
current rules.
Instead, the District reim-
burses the Federal Government
for its share of the overpay.
ment.
Tries 10 collect
The department tries to COL
lect overpaymentS that are not
the result Of a department mis-
take when a case is closed. he
said. But while it is open it Is
assumed that the person is liv-
ing at substance level and at
tempts are not made to collect
the money.
Senator Byrd brought out in
conSistencieS in this and other
department policies. For ex-
ample, If a relief recipient re-
ceives a lump sum of money
from another source, he is re-
moved from relief for a period
OF time once the agency dis
covers the fact. even though he
may have spent the money.
In response to questions from
Senator Byrd, Mr.. Calvin said
he believed there were even
more overpayments than the
$18l 900 referred to him by
social workers.
He favors trying to recover
the money while the person is
still on assistance, except in
hardship cases. Senator Byrd
agreed.
Mr.. Gavin said the largest
overpayment recorded this year
was for 5000. The money had
gone to a client with a full-time
job and a part-time Job before
that. ~.
Lasted Three Years
Overpayment in this case in
the Aid to Dependent Children
category existed for three years,
from November, 1858, to No
vember, 1861.
Senator Byrd asked Bernard
w, Scholz, head of the Public
Assistance Division, to explain
why $4,000 would be paid to
clients after a social worker
had notified them that they
were no longer eligible.
Mr.. Scholz said there have
been administrative accidents
where a worker would close a
case but forget to terminate
assistance"
This was partly due to human
frailty. Mr.. Scholz said. A
worker may be called away
from his desk for an emergency,
and when he comes back he
thinks he has terminated pay
mentS and puts the form in the
out basket" Mr.. Scholz said
a new system has been de-
veloped which will make it
easier to catch errors of this
KIND IN the future.
He also told Senator Byrd
that the present department
policy of not collecting for
overpaymentS of less than $50
is about to be changed. The
latter policy was established by
a 1858 directive. THE change
is long overdue" the Senator
said.
The departments plans to
overhaul these various regula-
tons is action that is coming
somewhat late, but never too
late" Senator Byrd said. THE
subcommittee will be interested