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35 13.2.7 Reporting Process LIHEAP-119 Form, Erroneous Payment Review/Report, (Appendix M) is to be used to report all cases of erroneous payments under the LIHEAP. This form should also be used to report cases of attempted fraud in which the household attempts to obtain benefits erroneously; however, the attempt is identified before a payment is made.

The Erroneous Payment Review/Report is to be completed and submitted to the State Office immediately following the review process. The original copy should be mailed to:

ADECA - Energy Division PO Box 5690 Montgomery, Alabama 36103-5690

Once the State Office reviews the report, a specific recommendation will be made as to what action will be taken. Any new or revised information received by the local agency after the submission of the original report which could affect the facts as originally reported should be sent to the State Office.

13.3 Recovery of Erroneous Payments Decisions regarding action for the recovery of erroneous payments under the LIHEAP will be made by ADECA. LIHEAP-119, Erroneous Payment Review/Report, or other similar documents or letters will be used by ADECA to transmit decisions to the local agency for the recovery (or non-recovery) of all erroneous payments.

Erroneous payments may be recovered by entering into a voluntary repayment agreement. This agreement is a written understanding (contract) between the local agency and the applicant which is signed voluntarily by both parties; which acknowledges that an erroneous payment has occurred; which acknowledges the correct amount of the erroneous payment; and which establishes the terms under which the local agency will recover all or a portion of the erroneous payment. Refer to LIHEAP-120 Form, Repayment Agreement, in Appendix N.

It is desirable to recover the LIHEAP payment in the shortest time period and without causing undue hardship on the household. The local agency is advised that the minimum monthly repayment amount should not be less than the following:

($ 1 - $ 50) $ 5 minimum payment ($ 50 - $100) $10 minimum payment ($100 - $200) $20 minimum payment (over $200) 10% of the original balance

If the household's monthly income and expenses may not permit the monthly payment as described above, the local agency may set the repayment amount at a level that is compatible with the household's financial situation.