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5. Income available for benefit reduction a. Income $988.00 b. Amount to be retained -$259.20. c. Amount available $728.00. 6. Amount of grant entitled to a. TANF grant $288.00. b. Amount available $728.00. c. New grant $0
The entire TANF grant would be recouped for one month.
The monthly amount of benefit reduction is subject to change if the income or liquid resources fluctuate. Grant reductions due to benefit reduction must receive timely and adequate notice.
When a former AG with an outstanding over-issuance reapplies and is found to be eligible, the agency must recover the over-issuance. If benefit reduction is necessary, current income, liquid resources, and the TANF payment, are to be used to determine the monthly benefit reduction amount.
4645.15.00 OFFSET OF OVER-ISSUANCE
An under-issuance results when an AG receives fewer benefits than it should receive in a month.
For the current month, the restoration must be done by a manual issuance. For previous months, the restoration must be done by the benefit recovery under-issuance system.
Fiats and manual issuances must be completed by eligibility staff.
Federal regulations stipulate that in the event a claim has been established against a household, any benefits to be restored due to an under-issuance to the AG can be offset against the claim amount. If the amount of benefits to be restored exceeds the claim amount for an over-issuance, the remaining balance will be restored to the AG and the claim will be satisfied. A system generated notice is sent to the household if the benefit recovery under-issuance system is utilized. If the restoration is done by manual issuance, a manual notice is required.
For TANF, the agency is required to restore benefits to an AG that was under-issued benefits. (f23)
For SNAP, the agency is to restore benefits to an AG that was under-issued benefits only when the under-issuance was the result of an agency error or an administrative disqualification which was later reversed. Restoration must not go back further than 12 months from the time the agency knew or was told of the under-issuance (f24)
EXCEPTION: Retroactive initial benefits (could include fiats) are not to be offset against outstanding claims.