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COMBINED MANUAL

ISSUE DATE 08/2020

RCA OVERPAYMENTS AND UNDERPAYMENTS

0030.03.18

UNDERPAYMENTS

Correct any underpayment discovered for a current benefit month within 7 calendar days following the discovery. Issue corrective payments for the current month without deducting any overpayments.

Apply restored benefits for a past month to existing RCA claims/overpayments and issue any remaining benefits to the current participant.

DO NOT establish an underpayment for prospectively budgeted units for any month for which you based the assistance issued on the best information available at the time, you applied correctly policy, and there was no client error.

OVERPAYMENTS

When you find a payment was incorrect, reconstruct each budget month and corresponding payment month using the policies and procedures that were in effect for the payment month. The overpayment is the difference between the benefit amount the client actually received and the benefit amount the client should have received. Calculate the overpayment using the Computation of RCA Overpayment Worksheet (DHS-2776D) (PDF).

DO NOT establish an overpayment for prospectively budgeted units for any month for which you based the assistance issued on the best information available at the time, you applied correct policy, and there was no client error.

There are 3 types of overpayments: client error overpayments, agency error overpayments and fraud overpayments. See 0025.12 (Types of Overpayments) to determine which type of overpayment applies.

CLIENT ERROR OVERPAYMENTS

Pursue recovery of client error overpayments.

For purposes of allowing the earned income disregard in overpayment calculation, a report is timely when the client or authorized representative reports income within 2 calendar months following the end of the month in which the income was received.

AGENCY ERROR OVERPAYMENTS

For agency error overpayments, follow MFIP provisions in 0025.12.03 (Overpayments Exempt from Recovery).

Do not pursue recovery of non-collectible agency error overpayments.

FRAUD OVERPAYMENTS

Consider cases suspected of fraud to be client error overpayments until the court or an Administrative Disqualification Hearing (ADH) makes a determination of fraud. Consider an overpayment in any month in which a client files a false report timely and this results in an overpayment to be a client error overpayment. This applies even if there is an agency error in the same month, unless the agency caused the client's failure to report. See 0025.24 (Fraudulently Obtaining Public Assistance).

RCA CLAIMS

Establish a claim for all claim types and amounts.

Recoupment of RCA claims is not automated at this time. Pursue recovery via voluntary repayment or civil recovery. Follow MFIP policy in 0025.21.06 (Civil Recovery).

RCA claims are subject to compromise. See 0025.12.03.09 (Claim Compromise & Termination).