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report the newborn until September. Ms. Pike must receive supplemental benefits to correct the underpayment for the period of March–September. GC See TANF IDA See TANF FS The date that an underpayment is discovered affects how it is corrected. The discovery date is whichever of the following occurs first: • the date someone notifies the department (verbally or in writing) of the underpayment, or • the date the department discovers the underpayment. Underpayments caused by a DHS error must be corrected, even if the household has not requested the correction. In addition, underpayments that are the result of a reversal of department actions at administrative review or fair hearing or the reversal of a fraud/IPV disqualification must be corrected. Underpayments that are caused by a recipient error, such as a delay in reporting a change that results in increased benefits, are not corrected. However, the change must be made prospectively, if applicable. Underpayments cannot be corrected for more than 12 months prior to the date of discovery. When a household adds a newborn or other mandatory group member, the group’s benefits are increased in the first available month after the birth or addition of the group member is reported (see Section 5.6: Adding a Newborn in this Part). Example Ms. Allison contacts DHS on April 25, 2005, and requests correction of FS benefits for a three- month time interval from February to April of 2005, since the increased shelter costs she reported in January were not entered in ACEDS. Since she made the discovery within 12 months of underpayment, she can receive a supplementary payment for the entire period.

DETERMINING OVER/UNDERPAYMENT AMOUNTS 6.6 BOTH The overpayment or underpayment is the difference between the benefit amount the client actually received before recoupment and the benefit amount the client should have received before recoupment. The FS 20 percent earned income disregard and the two-thirds (2/3) TANF earned income disregard are not allowed if earned income is not reported timely (See Section 6.3: Income Disregards and Deductions in Part VI.) If group was on periodic reporting and did not submit its report by the 10th of the month in which it was due, the earned income disregard was not allowed. When policy for determining overpayments has changed, the policy in effect for the payment month is used. For a group on standard reporting prior to October 1, 2005, a report is considered timely when income is reported within ten days from the date the income was received. For a group on standard reporting on or after October 1, 2005, or for a group on semi-annual or simplified reporting, a report is timely when the income is reported by the 10th day of the month following the month in which their total income exceeds their reporting threshold. The $160 work expense deduction in TANF is allowed even if income is not reported timely. The earned income disregards