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34 13.1.7 Local Agency Error A local agency error can be result of mistakes made by agency personnel which results in the household receiving an overpayment or ineligible payment.
For example, the local agency did not accurately enter or update household income in FACSPro or did not ensure that all household members were entered in the system prior to enrolling the applicant into LIHEAP.
Another example is when the local agency completed a paper LIHEAP application and miscalculated income or misread the Payment Assistance Chart and awarded more or less than the household was eligible to receive.
13.1.8 Suspected Fraud Suspected fraud cases are the result of overpayments or ineligible payments caused by a household member(s) who knowingly provided false, misleading, or incomplete information in order to receive assistance. Suspected fraud also includes household members who attempt, but never actually receive, benefits in which the household is not entitled.
13.2 Review and Reporting of Erroneous Payments
13.2.6 Review Procedures In situations of agency error identified by the State Office during on-site monitoring visits or review of data in FACSPro during the program year, the local agency will be instructed to either forward the amount of any underpayment to the applicant’s vendor or repay the LIHEAP fund in the amount of the overpayment from non-Federal, non-ADECA funds.
In situations where an applicant/recipient error resulted in a household receiving, or attempting to receive, benefits to which they are not entitled must be reviewed and reported to the State Office.
No action is to be taken by the agency in the recovery of LIHEAP payments from the household until the agency receives written notification from the State Office. However, it is permissible to contact the applicant in order to obtain facts and other information about how the erroneous payment occurred as well as how the erroneous payment should be categorized, i.e., client error, agency error, or suspected fraud.
It is during this review process that the local agency will obtain the information to make a complete and accurate report to the State Office for recommendation on how to proceed. The review process should be conducted by the local agency as soon as possible upon the discovery of an erroneous payment.