Abstract
The quality control program in AFDC represents a major attempt to reduce error and fraud in public assistance payments. It emphasizes federal motivation of state agencies through threats of fiscal sanctions. These threats ae neither effective nor necessary. The primary problem in error reduction is not lack of motivation but rather lack of information, and a more effective quality control approach would provide cost-effectiveness guidance to states derived from comparative evaluation of state practices and rely on states' financial stake in errors and motivation. This information need is illustrated by one cost-effectiveness evaluation which idenfied five readily implementable corrective action strategies estimated to offer annual error reduction potential of several hundred million dollars.
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