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33 13. Erroneous Payments (Overpayments/Ineligible Payments)

The Alabama Department of Economic and Community Affairs (ADECA) is the single state agency responsible for the receipt, proper use, and accounting of all Federal LIHEAP funds. Any agency or organization under contract with ADECA for the purpose of administering LIHEAP funds is also responsible for the proper use and accounting of any LIHEAP funds received from ADECA.

Specific authority for the use (and the recovery of any improperly expended Federal LIHEAP funds) may be found in Title V of the Human Services Reauthorization Act of 1986 (Public Law 99-425) as amended; Title VI of the Human Services Reauthorization Act of 1984 (Public Law 98- 558) as amended; Low Income Home Energy Assistance Act of 1981 (Title XXVI of Public Law 97- 35, the Omnibus Budget Reconciliation Act of 1981) as amended. The Code of Alabama (1975) Section 13A-8-3-4 "Theft of Property" is also applicable in the recovery or restitution of funds improperly received under the LIHEAP Program.

Individuals who receive, or attempt to receive, LIHEAP payments erroneously under the above titles are subject to all applicable Federal and State laws with regard to recovery and/or prosecution for same.

An erroneous payment occurs whenever a LIHEAP applicant receives either:

• More than the recipient should have received (overpayment), or

• A benefit the recipient is not entitled to receive (ineligible payment)

All erroneous payments are to be reviewed by the local agency and reported to the State Office. In addition, households that attempt to receive LIHEAP benefits by willfully misrepresenting the facts are also to be reviewed and reported to the State Office.

13.1 Types of Erroneous Payments There are three types of erroneous payments as follows:

13.1.6 Applicant Error An applicant error can be the result of misinformation, an error in judgment, or an omission on the part of the applicant or another household member with no intent to deceive the program but results in an overpayment or ineligible payment.

For example, an applicant who was not aware her 24-year-old son, a long-distance truck driver and not at home most of the time, should have been counted as a household member along with his wages.