In response to your request of September 11, 1978,
we have reviewed the quality control system for the Aid
to Families with Dependent Children program.
This report
discusses actions needed by the Department of Health and
Human Services to make the quality control system more
effective for improving the administration of the pro-
gram, and the need to discontinue the application of
fiscal sanctions against the States.

Federal and State agency comments were obtained and were considered, where appropriate, in preparing this report.

Unless you publicly announce its contents earlier, we plan no further distribution of this report until 30, days from its date. At that time we will send copies to interested parties and make copies available to others