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COMBINED MANUAL

ISSUE DATE 08/2019

DETERMINING INCORRECT PAYMENT AMOUNTS

0025.03

● When a mandatory unit member leaves the household and the unit fails to report the change timely, if the agency could have reduced or terminated assistance for 1 or more payment months had a delay in reporting the change not occurred, determine whether timely notice could have been issued on the day that the change occurred. Determine the correct benefit amount beginning with the 1st month in which you could have given timely notice.

Subtract the benefit the unit should have received for the payment month from the actual MFIP issued.

Subtract the full benefit amount the unit should have received (disregard any recoupment previously deducted) from the full benefit amount the unit actually received (disregard any recoupment previously deducted) for each month in the overpayment period. The difference is the overpayment amount.

NOTE: The housing subsidy deduction reduces only the cash portion of the MFIP grant. See 0017.15.99 (Housing Subsidy). When determining the correct overpayment amount, do NOT use the housing subsidy to reduce the food portion of the benefit amount.

If the client refuses to provide information to establish the amount of the overpayment and if no information is available to estimate a claim amount, assign an overpayment for the full amount of MFIP issued for the period in question.

Notify the client of the right to provide proof to establish a smaller overpayment. Close the case if it is not possible to establish current eligibility.

DWP: Follow general provisions. In addition, do not establish an overpayment or underpayment if the determination of the DWP grant amount is based on the best information available at the time of approval, even when there is additional income to the family unit. See 0022.12 (How to Calc. Benefit Level – MFIP/DWP/GA).

SNAP: Do not establish an overpayment or underpayment because of changes that were not required to be reported by the unit during the certification period. However, for any reported change, take appropriate action. See 0007.15.03 (Unscheduled Reporting of Changes - SNAP).

When calculating overpayments or underpayments for SNAP, use the amount of cash assistance actually received in the payment month even if the cash assistance was later determined to be an overpayment.

Do not allow the work expense deduction on income not reported timely. Timely reporting means that required changes be reported by the 10th of the month following the month of the change.

CALCULATING AN OVERPAYMENT

Determine whether the unit IS or is NOT categorically eligible for SNAP:

● If the SNAP unit IS categorically eligible, they are subject to the budgeting provisions that were in place at the time of the overpayment. See 0013.06 (SNAP Categorical Eligibility/Ineligibility), 0022.09.03 (When to Switch Budget Cycles - SNAP).

● For overpayments that occurred PRIOR to 03-01-09: If the SNAP unit is NOT categorically eligible, they must meet prospective eligibility requirements. If the overpayment is caused by unreported income, the unit remains in retrospective budgeting unless there are 2 or more consecutive months of ineligibility. If there are 2 or more consecutive months of ineligibility, the case would be presumed closed. Switch the unit to prospective budgeting and presume that the unit reapplied on the 1st day they were eligible. Calculate the amount the unit should have received based on the 1st day they were eligible. See 0022.03.01 (Prospective Budgeting - Program Provisions).

● For overpayments that occurred ON OR AFTER 03-01-09: Continue to budget all months prospectively. EXCEPTION: For Uncle Harry Food Support (UHFS) units, follow the instructions for determining overpayments that occurred prior to 03-01-09.