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SECTION 400 PROGRAM INTERGRITY

LIHEAP MANUAL JANUARY 2022 24

401.2 PROCEDURES FOR PROCESSING CLAIMS

The Community Action Agency that issued the overpayment is responsible for establishing claims and recouping funds by following the procedures below:

• Notify the applicant within 10 calendar days of the finding. • Maintain a separate file for each claim. • Document the steps taken to validate that a claim exists such as the date and method of discovery. • Contact the applicant by sending written notification clearly explaining the agency's findings; including a Repayment Agreement Option and/or providing an opportunity for the applicant to discuss a payment plan. • If the applicant does not respond within 10 calendar days to the first notification letter, or fails to keep an appointment, a second letter must be sent. A third letter is only necessary if the applicant is responsive but cannot keep the second appointment. • If the applicant is not responsive or does not keep any appointments, a notation must be made in the claims file documenting that the applicant did not respond. • If the applicant keeps the appointment the LIHEAP Coordinator will take the following steps:

o Assist the applicant in completing a Repayment Agreement. A copy must be in the claims file. o Applicants must be given specific instructions for making payments. o The applicant must make payments in the form of a check or money order identifying the funds as an "Energy Assistance Program Repayment". o Payments can be made in either a lump sum or in monthly installments.

• The agency must maintain a log of all repayments received; the log will be reviewed during monitoring. • Funds recouped must be deposited into the Low Income Home Energy Assistance Program account and documented in the general ledger and reported at the end of each program year. • Contact the State office when claims are paid in full. Authorization can be given to use recouped funds as client benefits within the current program year. • Funds unused must be recouped and sent back to the State office if after the program year has closed.