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COMBINED MANUAL

ISSUE DATE 12/2019

OVERPAYMENTS EXEMPT FROM RECOVERY

0025.12.03

The court may order that all or part of an overpayment is exempt from recovery. The county must follow the court order. See 0025.12.03.06 (Bankruptcy), 0025.24.03 (Recovering Fraudulently Obtained Assistance).

MFIP, DWP: Establish a claim for all claim types and amounts.

Do not pursue recovery on non-fraud overpayments on closed cases which total $35 or less. If the client begins to receive assistance again, recoupment will occur as long as the claim is in active status and has a balance.

Use the following policy to determine if an agency error overpayment for the MFIP cash portion is collectible:

Overpayments of the MFIP cash portion due to agency error should be recovered only in rare circumstances. State law directs that agency error overpayments should only be collected from the participant if the amount is large enough that a reasonable person would know it is an error. The food portion of the MFIP benefit follows SNAP policy and is subject to collection whether an agency error or client error caused the overpayment.

Do not pursue recovery of an MFIP cash portion or DWP overpayment due to agency error if the agency error was made in the initial month of eligibility and continued for any amount of time.

If the county or tribal human services agency has an overpayment caused by agency error that it believes should be collected from the participant, a PolicyQuest should be submitted as DHS will make the final decision based on specific circumstance of each case. See TEMP Manual TE02.09.48 (PolicyQuest Agency Overpayment Determination). Do not enter the claim into MAXIS until the Department determines if it is collectible.

SNAP: The following overpayments are exempt from recovery; do not establish a claim for overpayments due to:

● The county agency's failure to certify a unit in a correct project area.

● The county agency's failure to verify a unit signed the application.

● The county agency's failure to verify a unit completed a current work registration form.

● The unit's failure to report a change because it was not required to report the change. See 0007 (Reporting).

● A categorically eligible unit later being found ineligible for cash assistance or SSI due to excess assets.

Establish a claim, even though the following overpayments are exempt from recovery when:

● The total overpayment is less than $35 and the unit no longer receives SNAP.

● An error was cited during a quality control review which resulted in an overpayment.

● The county agency has documentation which shows that the unit cannot be located. See 0025.12.03.03 (Suspending or Terminating Recovery).

Do not pursue recovery on compromised portions of an overpayment. See 0025.12.03.09 (Claim Compromise & Termination).

MSA, GA: Follow MFIP.

In addition, do not pursue recovery from a personal needs allowance.