It details the major features of administration and automation that characterize the (AFDC) Monthly Reporting System as it now operates in Colorado. Recipient reporting and payment cycles are outlined as is the design of recipient reporting forms (including the monthly status report). Also described are the filing deadlines established for recipients and the first stages of monthly status report processing, including forms preparation and mailout, return by recipients, and editing and correction of reported data. Another section presents the details of the automated grant computation process, payment issuance, and a variety of other monthly automated functions. The manner in which notices of action are issued to recipients is examined, and explanations are given on the processing of applications and the issuance of grants. Examples are given, where relevant, of report forms, system input forms, and information reports used by staff and management. Footnotes are included. (Author abstract modified)