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COMBINED MANUAL

ISSUE DATE 12/2019

TYPES OF OVERPAYMENTS

0025.12

There are 3 types of overpayments:

● Agency error overpayments. This includes:

- County or tribal worker errors, MAXIS system errors or state agency errors.

- Agency failing to act on known information reported by a participant or former participant.

- Miscalculating a budget.

- Incorrectly applying program policy.

- Failing to act on data matches in a timely manner.

To determine if an agency error overpayment should be recovered see 0025.12.03 (Overpayments Exempt From Recovery).

● Client error overpayments. Consider cases suspected of fraud to be client error overpayments until a determination of fraud is made. Enter claims as non-fraud on MAXIS and adjust when appropriate. Some examples include:

- Not reporting timely.

- Failing to give the county or tribal agency correct or complete information.

- Failing to notify the county or tribal agency of required changes.

- Receiving more benefits than eligible for because of a request for an appeal hearing.

- Receiving benefits from more than 1 county or state in the same month.

NOTE: The continuous use of an EBT card in another state does not necessarily result in an overpayment unless there has been duplicate receipt of assistance. See TEMP Manual TE16.33 (Continuous Use of EBT Card In Another State).

● 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).

If the county which overpaid the unit does not pursue recovery, the county the unit moves into must pursue recovery. The county the unit moves into must contact the county which made the overpayment to verify that it does not intend to pursue recovery. The county agency which recovers the overpayment retains the county agency's share of the claim. For information on when to transfer a claim, see TEMP Manual TE02.09.18 (When to Transfer a MAXIS Claim).

For participants receiving benefits via electronic benefit transfer (EBT), if the overpayment is a result of an ATM dispensing funds in error to the participant, the state may recover the ATM error by immediately withdrawing funds from the participant’s EBT account, up to the amount of the error.

MFIP: Established AFDC/FGA claims remain AFDC/FGA claims. Do not switch them to MFIP claims. AFDC/FGA claims are recouped from MFIP.

DWP: Follow general provisions. In addition, benefits are subject to overpayments and underpayments but are NOT subject to cross program recoupment. Any time an overpayment or underpayment is determined calculate the correction using prospective