2004 Establishing an Overpayment Claim
A. Assure the following occurs for open cases on EPICS:
1. Send the EPICS First Notice of Overpayment (see Tables);
2. Assure the notice requires the client to contact the DFS-FO by an assigned date, the penalty to be imposed when the client does not respond and the legal citations;
3. Schedule a face-to-face interview with the recipient/ assistance unit;
4. Request the client sign the DFS 707, Installment Contract, for all programs;
5. Understand the DFS 707 is a performance requirement for a POWER performance payment and for Child Care assistance except in cases:
a. The PRICE investigator requested a DFS 707 not be obtained; or
b. When the error cause was an agency error.
6. DO NOT deny, delay or terminate SNAP benefits for failure to sign a DFS 707 as the form cannot be mandated;
7. Begin recoupment immediately when the assistance unit is found to be fraudulent and is receiving benefits;
8. Begin recoupment when the assistance unit is receiving benefits effective the first day of the benefit month following the expiration of the ten day notice of adverse action when fraud is not involved;
9. Reset the effective date on OVCA and begin recoupment for reapplications with the second month of benefits;
10. Send the Notice of Termination of Benefits (see Tables) for all programs, excluding POWER, when the case is ineligible:
a. Assure ten days have been allowed; and
b. Terminate benefits for the first of the following month.
11. Send the A-710 notice and impose the $1 POWER nonpayment penalty for the corresponding performance period when the client does not respond to the First Notice of Overpayment by the assigned date.
B. Assure the following actions occur for closed cases or cases where automatic recoupment is not possible:
1. Send the EPICS First Notice of Overpayment (see Tables) or send a letter containing the same information for overpayments not on EPICS;
2. Assure the notice requires the individual to contact the DFS-FO by an assigned date to discuss repayment;
3. Attempt to obtain payment in full; or
4. Require completion of a DFS 707 for monthly installment payments of not less than $10 or 10% ($20 or 20% for fraud), whichever is greater, per program when payment in full is not possible;
5. Set an alert for the date the first payment is due when the individual commits to payments:
a. Contact the client by phone or in person and request immediate payment when the client did not make payment according to the terms of the signed installment contract;
b. Notify the area PRICE investigator by e-mail when no payment is made within ten days after contact with the client.
C. Recover a Child Care overpayment directly from the assistance unit or provider currently receiving benefits through repayment (in part or in full):
1. Recovery from the client must be accomplished through voluntary payments in accordance with the installment contract:
a. Consider an assistance unit ineligible for Child Care benefits when full payment has not been made or the head of the assistance unit is not meeting the conditions of the installment contract;
b. Refer nonpayment cases to PRICE for appropriate action under state law to pursue collection.
2. Recovery from the provider can be up to the amount of the provider payment or in accordance with the installment contract:
a. Continue to authorize payment for services due the provider;
b. Enter the DFS-FO address on JAS so the warrant is mailed to the DFS-FO; OR
c. Request a check hold from the Financial Services Division when it is too late to change the address on JAS;
d. Require the provider to endorse the warrant and pay the overpayment in full or an amount in accordance with the installment contract;
e. Issue a receipt to the provider;
f. Issue a DFS-CO warrant for the remaining amount due the provider, as appropriate;
g. Request a transfer of funds to PRICE for the overpayment amount.
D. Establish a recoupment plan on OVCA:
1. Select the overpayment claim modification function on SEOO if the recoupment plan must be changed after the initial authorization;
2. Use the “%” or “MA” plan code for SNAP and enter 10% or $10, whichever is the greater, when the overpayment was an agency or client error; OR
3. Use the “%” or “MA” plan code for SNAP and enter 20% or $20, whichever is greater, when the case is coded as fraud or prosecution;
4. Use the “MA” plan code for POWER and enter an amount which is equal to 10% of the total income and assets available; OR
5. Use the “MA” plan code for SNAP and POWER and enter the negotiated payment amount when the client is willing to pay more than the amount in 2., 3. or 4.
6. DO NOT use the “%” plan code for a POWER overpayment as the payment must be no less than 10% of the family’s gross income and liquid assets and the specific amount must be determined and entered by the Benefit Specialist;
7.
Perform the following when the POWER individual has an outstanding overpayment
balance and is disqualified due to IPV, other fraud or fraud due
to misrepresentation:
8. Enter the “XG” code and zero under the
amount on UNIN next to the disqualified individual;
E. DO NOT offset the overpayment with an underpayment if an underpayment occurs while processing an overpayment (using the actual income) caused by a client error; and
F. DO NOT issue a supplement if an underpayment occurs while processing an overpayment due to a client error.
G. Recovery must be attempted on all cases with an overpayment(s) regardless of the cause of the overpayment.
Example of SNAP Recoupment
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Add gross monthly nonexempt earned and unearned income |
DO NOT allow the 20% earned income allowance on unreported income |
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Determine the current allotment prior to reduction |
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10% reduction: |
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Current monthly allotment |
$ 180.00 |
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Multiply by 10% (or 20% for fraud) |
X .10 |
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Equals |
$ 18.00 |
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Current monthly allotment |
$ 180.00 |
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Less 10% (or 20% for fraud) |
-- 18.00 |
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Allotment after recoupment |
$ 162.00 |
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Enter % for Plan 10 (or $18) for Amount |
EPICS will automatically recover $18 |
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Add gross monthly nonexempt earned and unearned income |
DO NOT allow the 20% earned income allowance on unreported income |
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Determine the current allotment prior to reduction |
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Minimum payment $10 (or 20% for fraud): |
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Current monthly allotment |
$ 74.00 |
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Less Minimum (or 20% for fraud) |
-- 10.00 |
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Allotment after reduction |
$ 64.00 |
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Enter MA for Plan and 10 (or 20) for Amount |
EPICS will automatically recover $10 (or $20) |
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Example of POWER Recoupment With Income |
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Determine the total available by adding together the earned and unearned income and liquid assets |
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Assistance unit of 3 |
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$ 546.00 |
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Earned income |
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$ 450.00 |
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Unearned income |
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-0- |
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Earned income disregard |
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- 200.00 |
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Net income |
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$ 250.00 |
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POWER Payment ($546 - $250) |
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$ 296.00 |
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Liquid assets (checking account) |
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+ 154.00 |
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Total income/assets* available |
($450 + $296 + 154) |
$ 900.00 |
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Multiply by 10% (20% or impose family penalty for fraud) |
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$ 90.00 |
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Recoupment amount |
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$ 69.00 |
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Grant amount after recoupment |
($296 - $90) |
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$ 206.00 |
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Enter MA for Plan and 90 for Amount |
EPICS will automatically recover $90 |
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*Use only those liquid assets which are unlikely to change considerably so the client will not be required to report monthly and the computation will not need to be changed monthly. |
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