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COMBINED MANUAL

ISSUE DATE 01/2019

CORRECTING UNDERPAYMENTS

0025.09

Clients are underpaid if they do not receive the benefits for which they are eligible.

MFIP, DWP: The date you discover an underpayment affects how you correct it. The discovery date is whichever of the following occurs 1st:

● The date someone notifies the county agency (orally or in writing) of the underpayment.

● The date the county agency discovers the underpayment.

● The date the appeals referee issues a decision on a client's appeal. See 0027.12 (Appeal Hearing Process).

Correct underpayments caused by client error, county agency error, or court reversal of a fraud disqualification.

● Issue benefits for the current month without deducting any overpayments.

● Restore benefits for up to 12 months before the discovery date after deducting any outstanding MFIP overpayments.

● If the underpayment of a current participant's benefits is for the current month, issue a benefit supplement, regardless of the amount, within 7 calendar days after the discovery date.

● Correct an underpayment within 7 calendar days after the underpayment has been identified, by adding the corrective payment amount to the monthly assistance payment of the participant or by issuing a separate payment to a participant or former participant, or by reducing an existing overpayment balance.

● Do NOT apply a food portion supplement to a cash portion overpayment. However, you may apply a cash portion supplement to a food portion overpayment.

● Clients must have an EBT card to access restored cash and food portion benefits issued electronically.

SNAP: The date you discover an underpayment affects how you correct it. The discovery date is whichever of the following occurs 1st:

● The date someone notifies the county agency (orally or in writing) of the underpayment.

● The date the county agency discovers the underpayment.

● The date the appeals referee issues a decision on a client's appeal. See 0027.12 (Appeal Hearing Process).

Correct underpayments caused by county agency error or court reversal of a fraud disqualification. Do NOT correct underpayments caused by client errors.

● Issue benefits for the current month without deducting any overpayments.

● If the underpayment of a current participant's benefits is for the current month, issue a benefit supplement, regardless of the amount, within 7 calendar days after the discovery date.

● Restore benefits for up to 12 months before the discovery date after deducting any outstanding overpayments.

● Restore benefits whether or not the unit is currently receiving SNAP.