IM-58 October 09, 2024 ; IM-102 December 12, 2023 ; IM-14 February 2, 2022 ; IM-50 May 15, 2020 ; IM-40 May 28, 2008 ; IM-142 December 2, 2005

The Program Integrity Unit (PIU) will register and track all possible overpayments in the Claims Accounting and Restitution System (CARS). This possible overpayment is called a “discovery claim referral”. The PIU will refer to the CARS User guide Registering a Discovery Claim Referral and Establishing a Claim for instructions.

The PIU will reject the discovery claim referral if it is determined there is:

no overpayment

the claim is less than the threshold, or

the claim period does not fall within the time-frame/look-back period.

This allows another worker or reviewer to see that the claim has already been explored. The PIU will refer to CARS User guide Rejecting a Discovery Claim Referral for instructions.

Thresholds for referring and establishing a claim are applied according to whether the household is active or inactive at the time the claim is discovered, unless the potential overpayment is identified through the process of completing a quality control review or there is a suspected program violation.

Thresholds for Establishing Claims Participating Households Non-participating Households AE IHE SPV/IPV AE IHE SPV/IPV $325 $325 $0 $600 $600 $0

Note : All claims are established that are identified by a Quality Control (QC) review.

Claims are established subject to look-back periods defined below:

Administrative Error (AE) claims may be calculated back no more than twelve months including the month of discovery. see 1142.015.05 Administrative Error

Inadvertent Household Error (IHE) claims may be calculated back no more than twenty-four months including the month of discovery. see 1142.015.10 Inadvertent Household Error

Suspected Program Violation (SPV) and Intentional Program Violation (IPV) claims may be calculated back for a period up to seventy-two-months including the month of discovery. see 1142.015.10.05 Suspected Program Violation see 1142.015.15 Intentional Program Violation

Once it is determined that an overpayment exists, a claim is established in CARS listing the responsible household members.

CARS generates a demand letter to the household the day the claim is established. (see 1142.045.00 Demand Letters )

The household is given the opportunity to request a hearing (see 1142.050.00 Claims Hearings ) and choose a repayment agreement (see 1142.055.10 Repayment Agreement ).

Claims in which an intentional program violation is suspected are referred to the Welfare Investigation Unit (WIU) for investigation as SPVs. WIU may accept the claim for investigation or follow the current handoff process in place to pursue an Administrative Disqualification Hearing (ADH).

Note : FSD staff will not refer claims known to be AE or IHE to WIU for investigation.

All AE and IHE claims will be considered for compromise when contacted by the household. If a hearing is not requested, 30 days after the claim is established, SNAP benefits of any person responsible for the claim may be reduced to repay the claim, unless the debtor has made a repayment agreement and is making agreed payments.

The billing process begins 30 days from the date the claim is established, or 30 days from the hearing decision if a fair hearing is requested.

Any claim that is delinquent for 180 days or more may be referred to the Treasury Offset Program (TOP) for collection (see 1142.055.15.25 Treasury Offset Program ).

Expunged SNAP benefits may be used to repay the claim.

IM-14 February 2, 2022 ; IM-40 May 28, 2008 ; IM-142 December 2, 2005

An Administrative Error (AE) claim is established against the household for an overpayment caused by agency action or the agency’s failure to take action. Instances of administrative errors, which may result in a claim include, but are not limited to the following:

the agency failed to take prompt action on a change that was required to be acted upon (Cause Code 15)

the agency incorrectly computed the household’s income and/or deductions, or otherwise determined an incorrect allotment (Cause Code 15)

the agency failed to reduce SNAP benefits due to a public assistance grant being changed for a household member (Cause Code 15)

the agency duplicated issuance of SNAP benefits, or incorrectly placed the incorrect amount of SNAP benefits on the EBT card (Cause Code 22)

Register and track all possible overpayments in the CARS discovery system. If it is determined the overpayment is under the threshold for establishing a claim, reject the claim referral using reason code 05 (Overpayment less than threshold). This allows another worker or reviewer to see that the claim has already been explored. Refer to CARS user guide Rejecting a Discovery Claim Referral .

Continue to establish all claims referred as a result of a Quality Control (QC) review, and all Suspected Program Violation (SPV)/Intentional Program Violation (IPV) referrals. If an agency error claim was not discovered as a result of a QC review do not establish a claim if the amount of the overpayment is equal to or less than the stated threshold:

Participating Household: If the head of the household is receiving SNAP benefits at the time the overpayment is discovered, establish a claim for overpayment of $151, or more. If the overpayment is $150 or less, register the possible overpayment, and reject the claim referral using reason code 05.

Non-participating Household: If the head of the household is not receiving SNAP benefits at the time the overpayment is discovered, establish a claim for overpayment of $501 or more. If the overpayment is $500 or less, register the possible overpayment, and reject the claim referral using reason code 05.

Register and establish all claims that are referred as a result of QC review findings. Calculate an AE claim back no more than twelve months including the month of discovery.

EXAMPLE: A possible overpayment for March 2003 through June 2003 is discovered on May 6, 2004. The 12-month look-back period is June 2003 through May 2004. A claim is established for the month of June 2003 only. Do not establish a claim for March 2003, April 2003, and May 2003.

IM-14 February 2, 2022 ; IM-40 May 28, 2008 ; IM-142 December 2, 2005

A Suspected Program Violation (SPV) occurs if there is evidence that a member of the SNAP household intentionally made a false or misleading statement, or misrepresented, concealed, or withheld facts. When the worker determines a claim is an SPV, the claim will be investigated for intentional program violation (IPV). The worker establishes the claim as an Inadvertent Household Error (IHE) and enters an SPV indicator in CARS on the Claim Add (OVTC) screen. Evidence is documented on the Note Add (OVNA) screen.

There is no threshold for referring and establishing SPV claims. SPV claims have a look-back period of thirty-six months, including the month of discovery. If any SPV over-issuance month occurred within the 36-month look back period, the over-issuance may be calculated back for up to seventy-two months including the month of discovery. If there is no month in which an overpayment occurred within the 36-month look back period, a claim amount is not calculated. An SPV claim is referred to the Welfare Investigation Unit (WIU) for investigation of intentional program violation via a report from CARS.

Example: Mrs. Dash has been claiming her son as a household member since her initial application three years ago. The worker discovered this month that her son has never lived with her. The worker answers yes to the SPV indicator on the Add Claim (OVTC) screen when adding information to establish the claim. CARS sends a report to WIU, referring the claim for investigation of IPV.

Do not code claims that are administrative error or obviously inadvertent or accidental on the household’s part as SPV. There must be evidence of SPV recorded on the Note Add (OVNA) screen.

IM-14 February 2, 2022 ; IM-40 May 28, 2008 ; IM-142 December 2, 2005

An inadvertent household error (IHE) is a claim established against the household for an overpayment caused by a misunderstanding or unintended error on the part of the household. Instances of inadvertent household errors, which may result in a claim include, but are not limited to, the following:

the household unintentionally failed to provide the agency with correct or complete information (Cause Code 16)

the household unintentionally failed to report or failed to report timely to the agency changes in its household circumstances that were required to be reported (Cause Code 17)

the household requested continued benefits until a hearing decision was given, and the household unintentionally received benefits or more benefits than it was entitled to receive pending the fair hearing decision (Cause Code 14)

a misunderstanding or unintended error on the part of a categorically eligible household, when a claim can be calculated based on a change in net income and/or household size (Cause Code 83)

Register and track all possible overpayments in the CARS discovery system. If it is determined the overpayment is under the threshold for establishing a claim, reject the claim referral using reason code 05 (Overpayment less than threshold). This allows another worker or reviewer to see that the claim has already been explored. Refer to CARS user guide Rejecting a Discovery Claim Referral .

Continue to establish all claims referred as a result of a Quality Control (QC) review, and all Suspected Program Violation (SPV)/Intentional Program Violation (IPV) referrals. If an IHE overpayment was not discovered as a result of a QC review, do not establish a claim if the amount of the overpayment is equal to or less than the stated threshold:

Participating Household: If the head of the household is receiving SNAP benefits at the time the overpayment is discovered, do not establish a claim for less than $151. If the overpayment is $150 or less, register the possible overpayment, and reject the claim referral using reason code 05.

Non-participating Household: If the head of the household is not receiving SNAP benefits at the time the overpayment is discovered, establish a claim for overpayment of $501 or more. If the overpayment is $500 or less, register the possible overpayment, and reject the claim referral using reason code 05.

Register and establish all claims that are referred as a result of QC review findings. Calculate an IHE claim back no more than twenty-four months including the month of discovery.

EXAMPLE: A possible overpayment for March 2002 is discovered on May 6, 2004. The 24-month look-back period is June 2002 through May 2004. A claim is not established.

IM-14 February 2, 2022 ; IM-40 May 28, 2008 ; IM-142 December 2, 2005

A trafficking claim is established against a household when the household has intentionally committed any act that constitutes a violation of the Food and Nutrition Act of 2008, SNAP regulations, or any state statute relating to the use, presentation, transfer, acquisition, or receipt of SNAP benefits.

Welfare Investigation Unit (WIU) staff advise FSD staff when trafficking of SNAP benefits has occurred.

A trafficking claim is entered into the Claims and Restitution System (CARS) as an Intentional Program Violation (IPV) when WIU notifies staff of the determination that a trafficking violation has occurred. WIU provides the amount and months of the claim. Program 11, with cause code 91, is entered on the Claim Add (OVTC) screen.

IM-14 February 2, 2022 ; IM-40 May 28, 2008 ; IM-142 December 2, 2005

An Intentional Program Violation (IPV) is a claim for an overpayment caused when a member(s) of the SNAP household intentionally makes a false or misleading statement, or misrepresents, conceals, or withholds facts, or engages in trafficking (see 1142.015.15.05 Trafficking ). Establish only those claims in which trafficking has occurred as IPV. On the Claim Add (OVTC) screen enter Program 11, Cause Code 91 for trafficking claims. For any other claim to be coded as IPV, the overpayment must be determined an IPV by way of an administrative disqualification hearing (ADH) or through a court hearing or waiver. Establish any claims in which it appears an IPV has occurred, but has not been proven, as an Inadvertent Household Error (IHE)/Suspected Program Violation (SPV), by entering Program 12, SPV code Y, and the appropriate cause code on the Claim Add (OVTC) screen. Document evidence of the SPV on the Note Add (OVNA) screen.

There is no threshold for referring and establishing IPV or SPV claims. SPV claims have a look-back period of thirty-six months, including the month of discovery. If any SPV overissuance month occurred within the 36-month look back period, the over-issuance may be calculated back for up to seventy-two months including the month of discovery. If there is no month in which an overpayment occurred within the 36-month look back period, a claim amount is not calculated.

The Welfare Investigation Unit (WIU) staff investigate the circumstances of SPV overpayments and obtains evidence, if available, to support the SPV. After obtaining evidence of the SPV, WIU staff must determine whether to refer the case to the prosecuting attorney or pursue an Administrative Disqualification Hearing (ADH). If the decision is to do an ADH, a Waiver of Administrative Disqualification Hearing Consent Agreement (IM-161) may be obtained. If a waiver of the ADH is not obtained, the WIU staff submits an electronic request for the ADH to the agency witness. The agency witness completes the Advance Notice of Your Administrative Disqualification Hearing (IM-160) , and if indicated from the WIU referral, the IM-161 and Withdrawal of Waiver of Administrative Disqualification Hearing Consent Agreement (IM-161A) (refer to 1145.010.20 Administrative Disqualification Hearing Scheduled ). During the ADH the agency witness will present information obtained by WIU staff regarding the SPV or request the WIU staff attend the hearing. Refer to 1145.000.00 Disqualification for Intentional Program Violation for specific instructions.

If it is determined, by administrative disqualification hearing decision or court order, that an IPV occurred, WIU or Program Integrity Unit (PIU) staff will change the claim type from SPV to IPV by changing the program code from 12 to 11 on the CARS Change Claim Information (OVCC) screen. The disqualification is entered by the WIU staff or agency witness on the Sanction/Disqualification (FMAM) screen.

IM-14 February 2, 2022 ; IM-40 May 28, 2008 ; IM-142 December 2, 2005

There are three types of claims:

Administrative Error (AE) ( 1142.015.05 Administrative Error )

Inadvertent Household Error (IHE) ( 1142.015.10 Inadvertent Household Error )

Intentional Program Violation (IPV) ( 1142.015.15 Intentional Program Violation )

Several factors, including who discovered the potential overpayment, the type of claim and the household’s circumstances, affect whether or not a claim is established, the time period covered by the claim, and the cause code entered in CARS. The type of claim affects repayment, the order in which claims are repaid, and whether the claim is reviewed by the Welfare Investigation Unit (WIU).

Once it is determined that a possible overpayment exists, register the discovery. The discovery will either be rejected or a claim will be established.

If a claim will be established, determine the reason the overpayment occurred. Document the circumstances of the overpayment and establish the claim ( 1142.030.00 Establishing Claims ). Refer to CARS User guide Registering a Discovery Claim Referral and Establishing a Claim .

Refer to the CARS Code Sheet or access the OVCD 0003 screen for possible cause codes. Choose the cause code that most closely describes the reason for the overpayment. Overpayments may occur for different reasons during different times of a certification period. Establish separate claims for each reason an overpayment occurs. If there are two reasons for an overpayment in the same time period, establish one claim and use the reason that best describes the cause.

Record the circumstances of the claim including verification received and used to determine the reason, amount, and timeframe of the claim on the Note Add (OVNA) screen.

IM-65 July 12, 2023 ; IM-50 May 15, 2020 ; IM-142 December 2, 2005

The Claims and Restitution System (CARS) is divided into two areas:

the discovery tracking system and

the claim tracking system.

A discovery claim referral is tracked from date of discovery through notification to the household that an overpayment has occurred by generation of a demand letter (see 1142.045.00 Demand Letters ) or rejection of the referral. Once a claim is established, the claim tracking system is used to monitor collection activity.

A Program Integrity Unit (PIU) staff member registers a discovery claim referral in CARS using the Discovery Add (OVAD) screen to begin the discovery tracking process when:

a potential overpayment exceeds the threshold,

is a result of a quality control review, or

suspected fraud is identified.

Enter the date the potential claim is verified as the date of discovery. A discovery identifier is assigned, which includes the 10-digit DCN, the date of the discovery, and a sequence number to track the number of SNAP claims discovered for the DCN on that day.

CARS uses the date of discovery to determine that the claim was established in an appropriate time frame. When a claim referral is registered, CARS calculates the due date of the claim. The discovery claim referral must be acted on and the claim established or rejected by the last day of the quarter following the quarter in which the potential claim was discovered.

A Weekly Pending Discovery Claim Referral Report (FCLWK500-01) shows three days prior to the end of the quarter as the due date to act on the claim referral for management purposes.

Claim referral procedures vary according to how the potential claim is discovered.

If staff discover potential overpayments that exceed the threshold or that appears to be fraud, then staff send a claim referral. PIU staff registers the discovery claim referral in CARS on the OVAD screen. The date of discovery is the date the PIU staff obtains the verification that is used to calculate the over-issuance.

Quality control staff register the discovery claim referral in CARS if a potential overpayment is discovered because of a quality control review. The date of discovery is the date the supervisor signs off on quality control review findings.

The Welfare Investigation Unit (WIU) establishes trafficking of SNAP benefits; and WIU notifies the PIU staff that trafficking occurred, the amount of the claim, and the period of the claim. The PIU staff registers the discovery claim referral in CARS for trafficking of SNAP benefits. The date of discovery is the date the PIU staff receives notice of trafficking from WIU.

When WIU, SNAP Program and Policy Unit, or another source discovers a potential overpayment, PIU staff are notified and register the discovery claim referral in CARS. The date of discovery is the date the PIU staff obtains the verification used to calculate the overpayment.

IM-50 May 15, 2020 ; IM-142 December 2, 2005

When a discovery claim referral is registered, CARS calculates the due date for the referral. The referral must be acted upon and the claim established (see 1142.030.00 Establishing Claims ) or rejected as invalid referral by the last day of the quarter following the quarter in which the potential claim was discovered.

For management purposes the due date for processing a discovery claim referral is shown as the third to last working day of the quarter following the quarter of the date of discovery.

EXAMPLE: The discovery date is August 6, 2001. The discovery claim referral due date is December 27, 2001. The claim must be established or the claim referral must be rejected by December 31, 2001 to be counted as processed timely. Three work days are allowed from the due date to the end of the month to ensure the claim referral is processed timely.

A Daily Incomplete Pending Claim Registration Report (FCLDY500-01) is generated if incomplete information is entered into CARS and a demand letter cannot be generated. The report is used to identify and track claims that have been initiated, but not completed, and is distributed to the worker.

A Monthly Discovery Claim Status/Activity Report (FCLME501) is generated showing all discovery claim referrals registered, moved, rejected and established during the month. The report includes a summary of the number of claims processed during the month and the number pending at the end of the month. This report is used as a case management tool to monitor timeliness of discovery claim referral processing and is distributed to the supervisory unit.

A Quarterly Discovery Claim Status/Activity Report (FCLQT501) is generated showing a summary of all claims processed during the quarter. This report shows currency of claims established and is used as a management tool to monitor timeliness of discovery referral processing.

IM-65 July 12, 2023 ; IM-142 December 2, 2005

The Claims Accounting and Restitution System (CARS) is used to establish and track claims. Refer to CARS user guide Registering a Discovery Claim Referral and Establishing a Claim for instructions.

The Discovery Tracking System tracks SNAP overpayments from discovery through the household notification of the overpayment (see 1142.045.00 Demand Letters ). The Discovery Tracking System processes and tracks:

registering of the discovery claim referral,

computing the amount of the overpayment,

attaching the responsible members to the claim,

moving the claim, and

establishing the claim and generating a demand letter.

After investigating the circumstances and determining an overpayment exists, enter information about the claim into CARS.

If there is no overpayment, reject the discovery claim referral. This includes rejection of a discovery claim referral if the overpayment is under the threshold, or is outside the look-back period. Refer to CARS user guide Rejecting a Discovery Claim Referral for instructions.

If there is an overpayment, refer to CARS user guide Registering a Discovery Claim Referral and Establishing a Claim for complete instructions. When the flow is completed, the discovery claim referral is moved for processing overnight. The status is M (Moved). Overnight the claim is established when the demand letter is generated. The status is changed to A (Active).

The claim tracking system tracks claims from when they are established, through payment in full. The debtor information is stored and maintained in the claim tracking system.

CARS Process Inquiry Screen Update Screen Claim Balance OVCS/OVCI Automated Debtor Information OVDI OVDC Demand Letter OVLI OVLU Billing Process OVLB Automated Payments OVPT OVTA-limited access Repayment Agreements OVCI OVCC Fair Hearings OVCI OVCC Recoupment OVPT Automated WIU Actions OVCI OVCC Update debtor Information OVDI OVDC Terminated Claims OVCS/OVCI OVCC Closed Claims OVCS/OVCI OVCC Responsible Members of a claim OVMI OVMD (remove) OVMA (add) Claims a DCN is a member OVIM Automated Treasury Offset OVCS/OVCI Automated Suspected Program Violation OVCS/OVCI OVCC

IM-65 July 12, 2023 ; IM-40 May 28, 2008 ; IM-142 December 2, 2005

Determine the total number of months the household received an overpayment for each claim period.

Administrative Error (AE) claim: Calculate back no more than twelve months including the month of discovery (see 1142.015.05 Administrative Error )

Example: A possible overpayment for March 2022 through June 2022 is discovered on May 6, 2023. The 12-month look-back period is June 2022 through May 2023. A claim is established for the month of June 2022 only. Do not establish a claim for March 2022, April 2022, and May 2022.

Inadvertent Household Error (IHE) claim: Calculate back no more than twenty-four months including the month of discovery (see 1142.015.10 Inadvertent Household Error )

Example: A possible overpayment for March 2021 is discovered on May 6, 2023. The 24-month look-back period is June 2021 through May 2023. A claim is not established.

Suspected Program Violation (SPV) and Intentional Program Violation (IPV) claims: A look back period of thirty-six months is allowed for (see 1142.015.10.05 Suspected Program Violation / 1142.015.15 Intentional Program Violation ). If a suspected program violation overpayment month occurred within the thirty-six month look back period, calculate the overpayment back for up to seventy-two months. If there is no month in which an overpayment occurred due to the suspected program violation within the look back period, a claim amount is not calculated, and the discovery is rejected. The look back period includes the month of discovery.

Example: A possible overpayment for March 2020 through June 2021 is discovered on May 6, 2023. The 36-month look-back period is June 2020 through May 2023. Since one of the months of the claim period falls into the 36-month look-back period, a claim is established for the entire claim period.

IM-102 December 12, 2023 ; IM-65 July 12, 2023 ; IM-52 May 30, 2013 ; IM-36 April 22, 2010 ; IM-40 May 28, 2008 ; IM-142 December 2, 2005

Beginning June 1, 2013 act on all changes reported or known to the agency.

A household is only required to report changes that cause the total gross household income to exceed 130% of poverty, a change in ABAWD status, or when substantial lottery or gambling winnings, before taxes or other withholdings, equal to or greater than the resource limit for elderly/disabled households when won in a single game.

Changes reported or known by the agency and required to be acted on must be considered in determining a claim. Changes not required to be reported and are not known to the agency are not considered when establishing a claim.

If… Activity Result the household was correctly determined eligible and the benefit amount accurately computed at application, and The change was not required to be reported. There is no claim. the household was not eligible and/or the budget was not done correctly at application resulting in an overpayment, prior to establishing the claim: Compute a corrected determination of the income being received at application to determine the corrected amount of the benefit. Use the corrected budget for each month of the claim. Do not use each month’s actual income. a change is required to be acted on and the budget was not done correctly resulting in an overpayment, prior to establishing the claim: Compute a corrected determination of the income being received at the time of the budget adjustment to determine the corrected amount of the benefit. Use the corrected budget for each month of the claim. Do not use each month’s actual income. the possible overpayment is due to non-report of a change required to be reported or failure to take required action by the household: Determine whether the household is overpaid for all or part of the certification period. Compute the claim amount using actual income to determine the amount of benefit the household was eligible to receive each month.

Note : When all efforts to obtain actual income have failed and the claim period covers the entire quarter and the income information is consistent on IMES, this source of income verification may be used to calculate the overpayment.

If the household fails to report a change that caused the household’s total income to exceed the 130% of poverty amount:

Use the household’s total actual income to determine the month the income exceeded the 130% poverty amount.

Apply change reporting rules to determine the first claim month.

Using actual income determine the amount of benefit the household was eligible to receive each month during the certification period. Include any income or change that was reported or known to the agency.

Example: Mr. Andrews is approved for SNAP benefits for a three person household with zero income March 1 st . At the August mid certification review, it is discovered Mr. Andrews began employment, at $800 weekly beginning March 15 th . This ongoing income caused the household to exceed the 130% poverty amount in April, requiring it to be reported by May 10 th . After applying change reporting rules, the first claim month would be July.

IM-65 July 12, 2023 ; IM-52 May 30, 2013 ; IM-36 April 22, 2010 ; IM-40 May 28, 2008 ; IM-142 December 2, 2005

The staff responsible for establishing the claim obtains the needed information and computes a budget for each month of the overpayment period.

The correct benefit amount for each month as determined from the claim budgets and the amount actually received by the household is entered in the Claims and Restitution System (CARS.) CARS uses this information to determine the overpayment amount.

For Inadvertent Household Error (IHE) and Suspected Program Violation (SPV) claims involving earned income, do not apply the earned income deduction to that part of any earned income that the household failed to report in a timely manner when that is the basis for the claim.

For Administrative Error (AE) claims involving earned income, apply the earned income deduction.

Identify all responsible household members in CARS (see 1142.040.00 Responsible Members ); the system then tracks payment responsibility for each person. The claim is established when CARS generates the demand letter.

For trafficking claims, the Welfare Investigation Unit (WIU) determines the amount of the claim as part of their investigation. WIU notifies the Program Integrity Unit (PIU) of the period of time in which trafficking occurred and the amount of benefits that was used inappropriately. This determines the claim period and the claim amount.

IM-65 July 12, 2023 ; IM-40 May 28, 2008 ; IM-142 December 2, 2005

The amount of the claim is computed by determining the number of months of an overpayment and the amount of overpayment for each month. Whether an overpayment occurred is impacted by the household change reporting requirements. Do not consider overpayments if the household was not required to report the change in circumstances.

The first month of overpayment is determined by applying the change reporting rules that would have applied to the case situation if all facts and figures required to be reported had been reported to the agency within the proper time frames.

If the overpayment occurred because incorrect information was given or an incorrect determination was made at the time of an application or reapplication, the first month benefits were overpaid is the beginning month of the certification period.

If the household reports the change timely and action is required, but the agency fails to act on the change, the first month of overpayment is the first month the agency should have made the change effective. If the notice of adverse action was required but was not sent, the agency shall assume that the maximum advance notice period, if applicable, would have expired without the household requesting a fair hearing.

IM-65 July 12, 2023 ; IM-22 April 9, 2014 ; IM-39 April 5, 2013 ; IM-142 December 2, 2005

For claims established before August 6, 2001, the head of the household is responsible for the claim.

For claims established after August 6, 2001, the following participants are responsible for the claim:

Any adult member of the household, age 18 or over, when the overpayment or trafficking occurred, even if this participant is no longer in the household. If a responsible member was in the home for only part of the claim period, two or more claims will have to be established. A claim is needed for any months the responsible member was in the home, and separate claims are needed for the months the responsible member was not in the home. Note: If an adult member of the household can provide verification they were not in the home during the claim period, they are not considered responsible for the claim.

Example: Ms. A applies for SNAP benefits for herself and her adult sister. Ms. A fails to report her income increased to over 130% of poverty, so a claim is established including Ms. A’s adult sister. Ms. A’s adult sister states she did not live with Ms. A during the claim period and provides verification. The adult sister is not responsible for the debt.

Example: Ms. A applies and was approved for SNAP benefits for herself and her adult sister. Ms. A fails to report her income increased to over 130% of the federal poverty level in January.

The household is overpaid for March to September. Ms. A’s sister moved out of the household in July, and returned to the household in September.

Claims for three periods must be established. The first claim is for March through July and includes Ms. A and Ms. A’s adult sister as responsible claim members. The second claim is for August and includes only Ms. A as the responsible member. The third claim is for September and includes Ms. A and Ms. A’s adult sister as responsible members.

Any member of the household, age 18 or over, who was not reported in the SNAP household is a responsible member of a claim.

Example: Mr. B applied for himself and his three children. It is discovered his wife has been living in the home since the time of application and has income over the 130% of poverty making the household ineligible for SNAP benefits. Since the wife is a mandatory household member she is also a responsible member of the SNAP claim.

A sponsor of an immigrant household member if the sponsor is at fault;

A person connected to the household, such as an authorized representative, who actually traffics or otherwise causes an overpayment or trafficking;

Example: The authorized representative signs the eligibility statements and applies for the household. There is an overpayment due to information provided by the authorized representative. The authorized representative is a responsible member of the claim.

A Drug and Alcohol Treatment Center (DATC), while the DATC is acting as authorized representative for the resident. The resident of the DATC is not responsible.

If a participant is established as a responsible member in error, the participant must be deleted from the claim. Contact the SNAP Program and Policy Unit at ColeFSPolicy@dss.mo.gov to have the participant deleted.

IM-65 July 12, 2023 ; IM-107 December 2, 2013 ; IM-142 December 2, 2005

A CARS-3 demand letter is generated and sent to all households when a SNAP claim is entered. The day the letter is generated is the day the claim is established. The demand letter contains:

the amount of the claim

the time period of the claim

the reason for the claim

the persons responsible for the claim

the calculation of the overpayment

repayment agreement options including notification of allotment reduction procedures

notification of ability to request reduction of claim balance for some claims (see 1142.055.05 Compromising Claims ), and

notification of the right to a fair hearing

A repayment agreement is included with the demand letter.

Note: After a SNAP CARS-3 is sent, collection procedures are initiated and continue regardless of the letter being returned as undeliverable.

IM-134 October 28, 2022 ; IM-06 January 15, 2015 ; IM-142 December 2, 2005

When a claim is established, a demand letter is sent to the household notifying them of their right to a fair hearing (see 1142.045.00 Demand Letters ). Any responsible member may request a fair hearing regarding the claim.

To track the hearing go to the “CARS” Change Claim Information (OVCC) screen. For timely hearing requests made within 90 days from the date the claim was established, enter Y and the date the hearing was requested in the FAIR HEARING REQ field. There is no recoupment of SNAP benefits pending the hearing decision. The hearing request must be entered to prevent recoupment.

Note : When an appeal of the fair hearing decision is filed with the Circuit Court, there is also no recoupment until a judgment is rendered.

A hearing may be requested on the establishment of the claim, or collection activity such as recoupment. The same day a hearing is requested by a responsible member of the claim, print the demand letter using instructions found in the Cars User Guide Printing a CARS-3 Demand Letter . For CARS-3 Demand Letters dated prior to October 7, 2008 continue to request a copy from the SNAP Policy Unit. Email ColeFSPolicy@dss.mo.gov . Demand letters are not re-produced for claims established prior to August 6, 2001. If the claimant is requesting a hearing because collection has begun on a claim that was established prior to August 6, 2001, print the OVLI – DEMAND LETTER INQUIRY screen to submit as evidence that a demand letter was sent.

The hearing decision is entered into CARS on the CHANGE CLAIM INFORMATION (OVCC) screen. Make the following entries in the DECISION field:

W (Withdrawn) and the date of the withdrawal – if the hearing request is withdrawn by the claimant or the agency

U (Upheld) and the date of the hearing decision – if the agency is upheld

R (Reversed) and the date of the hearing decision – if the agency is reversed

The hearing decision is sent to the claimant and the agency. If the agency is upheld and an overpayment exists, an after-hearings notice of the claim is included in the hearing decision. The household is given an opportunity to complete the repayment agreement.

Thirty days after the hearing decision, recoupment of SNAP benefits may begin if another repayment method is not chosen and the individual receives SNAP benefits.

For instructions see CARS User guide Entering and Tracking Fair Hearing Requests in CARS .

IM-20 March 12, 2021 ; IM-82 August 28, 2007 ; IM-142 December 2, 2005

“Compromise” is the reduction of a claim balance. Agency Error (AE) and Inadvertent Household Error (IHE) claims may be considered for compromise when the household contacts the Family Support Division (FSD) and requests a reduction. Intentional Program Violation (IPV) and Suspected Program Violation (SPV) claims are not compromised. Claims may be compromised if it can be reasonably determined that the household’s economic circumstances dictate the claim will not be paid in three years.

The demand letter advises the household to contact the Family Support Division (FSD) to request a compromise.

Claims are compromised as follows:

A demonstration of need. If a household is receiving SNAP benefits at the time the request is made, this is a sufficient demonstration of need. A Request for Reduction of Claim ( CARS-8 ) form is not necessary in this situation. Make a comment in the case file regarding the request and email the details of the request to the SNAP Program and Policy Unit by email at ColeFSPolicy@dss.mo.gov

To determine the new claim balance after compromise, use the current monthly benefit amount and multiply by 10%, then multiply by 36 months. The resulting number is the reduced claim amount. Record the reason and action taken in the eligibility system. Notify the household of the decision on an Action Taken on Your Food Stamp Case ( IM-112 ).

The claim is re-paid by recoupment as long as the household receives SNAP benefits. If the household’s SNAP case closes and the claim has not been paid in full, the remaining balance is subject to collection.

EXAMPLE: An AE claim is established for $800. The household is receiving SNAP benefits of $190 monthly. Applying a 10 percent, reduction is $19. Multiply $19 by 36 months to equal $684. Reduce the claim amount to $684.

A demonstration of hardship. A household proves that financial, physical or mental hardship would exist if forced to pay. Such situations include, but are not limited to medical hardships, loan payments, etc.

For situations where a household is requesting a compromise due to a hardship, a summary of the household income, expenses, and reason is captured on the Request for Reduction ( CARS-8 ) form and is submitted to the SNAP Program and Policy Unit by email at ColeFSPolicy@dss.mo.gov . Program and Policy staff will render a decision after considering household circumstances and will notify the participant of the decision on an IM-112 Action Taken on Your Food Stamp Case and they also notify Claims and Restitution by email at DLS.CANDRTEAM@dss.mo.gov , of the outcome.

Court ordered restitution. A claim reduced by a decision made through the court shall be established as a separate claim and may be considered for a compromise. The FSD Director and WIU Chief of Investigations will review and make a determination.

WIU seeks prosecution of claims that are based on the household committing fraud. The course of action is ultimately under the authority of the Court. If at disposition the Court orders restitution in an amount less than the claim amount, PIU will establish two (2) separate claims. (A reason for this could be the additional amount is outside the statute of limitations for prosecution.) PIU will first establish a claim for the Court ordered amount, which will be coded SPV. PIU will establish a separate second claim for the remaining amount, which will be coded IHE. The SPV claim shall not be compromised, as modifications to Court orders are to only be made by the Court.

If a household requests a compromise, complete a Request for Reduction of Claim ( CARS-8 ) form and send to the WIU Chief of Investigations. FSD and WIU reviews the circumstances, makes a determination, and notifies the Claims and Restitution Unit. The Claims and Restitution Unit notifies the household on an IM-112 of the decision.

EXAMPLE: A case with an overpayment of $60,000 is submitted for prosecution. At disposition, the Court orders restitution in the amount of $40,000. FSD establishes two claims: $40,000 coded SPV; $20,000 coded IHE. If the household requests a compromise, only the $20,000 IHE claim may be considered.

IM-65 July 12, 2023 ; IM-61 August 21, 2009 ; IM-142 December 2, 2005

A repayment agreement is sent to the household with the demand letter. The debtor is given two options:

repay with check, money order, or with SNAP benefits

household’s SNAP benefits being reduced each month

The debtor(s) signs one of the agreements according to the best repayment method for the household. If the debtor wishes to enter into a repayment agreement, refer them to the Claims and Restitution Unit at 573-751-3004.

If the household chooses to not agree to make repayment and the household has an active SNAP case, a benefit reduction is applied. Benefit reduction is also known as recoupment. If any responsible member of the household is receiving SNAP benefits, the system may begin automated recoupment of SNAP benefits (see 1142.055.15.20 Automated Recoupment of SNAP Benefits ).

If the CARS-3 Repayment Agreement is returned with a method of repayment other than recoupment, forward the CARS-3 Repayment Agreement to DLS.CANDRTEAM@dss.mo.gov .

If the CARS-3 Repayment Agreement is returned with the benefit reduction section completed, take no action as the system automatically initiates the benefit reduction.

A participant may request renegotiation of a repayment agreement. If the agency agrees with the request, a new payment is negotiated and the participant signs a new agreement. If the agency finds the household’s economic circumstances have not changed enough for the repayment agreement to be changed, the original repayment amount remains. The request for renegotiation and the reason for the decision is recorded on the Note Add (OVNA) screen.

If the household is receiving SNAP benefits, the repayment agreement cannot be less than the amount that can be recovered with recoupment. The repayment agreement is not renegotiated when the SNAP benefit amount changes. The recoupment amount will be the repayment agreement amount, the minimum recoupment allowed, or a percentage of the allotment, whichever is the greatest.

IM-65 July 12, 2023 ; IM-142 December 2, 2005

If a claim is to be repaid in cash, the household is instructed to make the payment in the form of bank draft, cashier’s check, or money order whenever possible. Cash payment is accepted. A receipt is given to the household and a copy filed in the electronic record. If a cash payment is made to the local office, a money order or cashier’s check may be purchased at the local office expense. Checks received are endorsed “FOR DEPOSIT ONLY TO THE CREDIT OF THE TREASURER OF THE STATE OF MISSOURI – DEPT OF SOCIAL SERVICES” and all payments are submitted daily.

Payments received in the local office are forwarded to Division of Finance & Administration Services (DFAS) with a completed CARS-2 , using transaction code 01.

For instructions see CARS User Guide Entering Repayment Agreements and Processing Payments in the Claims Accounting and Restitution System (CARS) .

IM-65 July 12, 2023 ; IM-142 December 2, 2005

A debtor may voluntarily use SNAP benefits in their EBT account to repay a SNAP overpayment. A Voluntary Repayment Authorization form (IM-114) is completed and signed by the debtor. Verify a claim has been established for the overpayment on the Display Claim Information screen (OVCI). To view the claim type OVCI, space, I, DCN and press enter. To view additional claims for this individual, press enter. When all claims have been displayed, the message “END OF INQUIRY” displays. The Claim Summary Screen (OVCS) displays a summary of claims for the participant, including the repayment agreement.

If the debtor wishes to enter into a repayment agreement, refer them to the Claims and Restitution Unit at 573-751-3004.

If a Voluntary Repayment Authorization form (IM-114) is returned, forward the IM-114 to DLS.CANDRTEAM@dss.mo.gov .

IM-65 July 12, 2023 ; IM-142 December 2, 2005

When a household is eligible for restored SNAP benefits and there is a claim balance, the restored benefits are applied to the outstanding claim balance. Restored benefits are paid if, through no fault of the household, there is an under-issuance. Complete a budget to determine the amount of the restored benefits. If there is a claim balance, the restored benefits are applied first to the claim, and the remainder issued to the household. Enter the amount of the claim balance, up to the amount of the restored benefits in the Offset field on WIBCA. Apply restored benefits each month to outstanding SNAP claims, until the claims are paid in full. For instructions refer to the WIBCA – IM Resources .

Complete a Claim Payment Transmittal (CARS-2) for the total amount of the offset using a credit transaction code 07, and send to the Division of Finance & Administration Services (DFAS).

IM-65 July 12, 2023 ; IM-142 December 2, 2005

CARS automatically initiates recoupment for any claim that is eligible to be paid for an active SNAP household through reduction of SNAP benefits. CARS knows when to begin recoupment on SNAP claims. Information entered in the repayment agreement fields assists the system in deciding the amount to recoup and when to start. Claims are eligible for recoupment if:

any responsible member of the claim receives SNAP benefits, and

it has been thirty days since the date the claim was established.

There will be no recoupment of SNAP benefits if:

a repayment agreement has been entered, and payments are being made equal to the amount of the agreement, or

a hearing is requested, until the decision is made and entered on the CLAIM CHANGE (OVCC) screen.

The system also knows how much to collect on claims:

For Intentional Program Violation (IPV) claims, CARS collects the amount of the repayment agreement entered on OVCC, 20% of the allotment, or $20, whichever is greater.

For Inadvertent Household Error (IHE), Agency Error (AE), or Suspected Program Violation (SPV) claims CARS collects the amount of the repayment agreement amount entered on OVCC, 10% of the allotment, or $10, whichever is greater.

If a responsible member of a claim is receiving SNAP in any household, that allotment may be reduced to pay for the overpayment.

IM-142 December 2, 2005

The Treasury Offset Program (TOP) is a mandatory Federal government delinquent debt matching and payment offset system. It is a cost-effective means by which a Federal agency may recover delinquent debts. The Treasury Offset Program:

offsets Federal payments due the delinquent debtor

uses debtor locator/address information provided by FNS to locate delinquent debtors

Federal payments include, but are not limited to, SSA, Federal salary, Federal travel reimbursement, IRS Federal tax refund, IRS Earned Income Credit (EIC), and the Child Tax Credit.

Debts must meet the following criteria to be eligible for referral to TOP:

greater than 180 days delinquent

Under 10 years old

At least $25

Not included under an automatic stay due to bankruptcy

Not currently under litigation or review

Not currently being collected through allotment reduction

Not currently under a repayment plan approved by the State and making agreed payment

Prior to referring the debt to TOP, the Claims and Restitution Unit sends a notice to the EU (60-day notice) of the intent to refer the debt to TOP unless the debt is paid or other arrangements are made. FNS obtains addresses for the state to use for sending out 60-day notices. The notice informs the debtor that s/he may avoid TOP collection if s/he repays the debt in full, agrees to a repayment plan and makes agreed payments, requests a review if s/he believes the debt is not owed, or files bankruptcy and the automatic stay is in effect.

Debtors are entitled to a review of the intended TOP collection action. A debtor must submit a written request for review by the date prescribed in the 60-day notice. This is not a request for a fair hearing on the claim, but only a review of the TOP referral process. Requests for a review of TOP collection action received by county FSD staff are referred to the Claims and Restitution Unit at 573-751-3004.

The debtor may contact the Claims and Restitution unit in response to a 60-day notice and have questions regarding the establishment of the claim. Questions regarding establishment or other collection actions, including compromise, received by Claims and Restitution Unit are referred to the county FSD office.

If possible, the agency shall collect the total amount of the debt in one lump sum. If the debtor is financially unable to pay in one lump sum, the agency may accept payments in regular installments. The size and frequency of the installment payments should bear a reasonable relation to the size of the debt and debtor’s ability to pay. If possible, the installment payments should be sufficient in size and frequency to pay the debt in full in three years or less. The payment agreement includes:

the amount of the payment

the payment due date

where the payment should be mailed

form or payment and addressee

an accelerator clause

FNS furnishes a collection file of offsets and reversals made by TOP. The funds are accepted, verified, and posted to the debts.

IM-65 July 12, 2023 ; IM-142 December 2, 2005

Expunged SNAP benefits are automatically used to reduce SNAP claim balances. The expunged benefit file is run against the CARS database monthly. Benefits that are expunged each month are applied to the claim balances the next month. Expunged SNAP benefits that exceed the balance of the claim only have the amount of the balance reduced. Negative balances and refunds due to expunged benefits are not given. After this process runs each month, SNAP claim reductions are posted on the Display Debtor Payments/Transactions (OVPT) screen. Transaction code 14 is used to identify these claim balance reductions.

IM-65 July 12, 2023 ; IM-142 December 2, 2005

A claim can be repaid by:

cash (see 1142.055.15.05 Cash ),

EBT voluntary repayment (see 1142.055.15.10 EBT Voluntary Repayment ),

offset (see 1142.055.15.15 Offset ),

automated recoupment of SNAP benefits (see 1142.055.15.20 Automated Recoupment of SNAP Benefits ),

Treasury Offset Program (see 1142.055.15.25 Treasury Offset Program ),

expunged SNAP benefits (see 1142.055.15.30 Expunged SNAP Benefits ), or

a combination of these methods.

For instructions see CARS User Guide Entering Repayment Agreements and Processing Payments in the Claims Accounting and Restitution System (CARS) .

IM-65 July 12, 2023 ; IM-61 August 21, 2009 ; IM-142 December 2, 2005

When a claim is entered into CARS, the process to collect the overpaid amount begins.

The household receives a demand letter telling them the:

SNAP claim balance,

repayment procedures,

hearing rights, and

compromise option for some claims.

After the demand letter is generated, the household does not receive another notice regarding the SNAP claim balance or hearing rights on this specific claim.

If the debtor wishes to enter into a repayment agreement, refer them to the Claims and Restitution Unit at 573-751-3004.

Collections are made against only one household with at least one responsible debtor for a single claim when responsible claim members reside in multiple SNAP households.

Note: If a husband and wife, who are responsible household members for a single claim, later separate SNAP and become two separate SNAP households. SNAP recoupment would alternate each month for each responsible household member.

IM-65 July 12, 2023 ; IM-03 January 3, 2007

After a claim for an overpayment of SNAP benefits is established in the Claims Accounting and Restitution System (CARS), it may be discovered that there is:

no overpayment

less overpayment, or

more overpayment

No Overpayment

Terminate the entire amount if a claim was established in error or if the decision was reversed in a hearing. If there have been collections on a claim established in error, the collections are refunded. For instructions to terminate the claim and notify State Office to refund the collections, refer to CARS User Guide Terminating or Closing a Claim .

More Overpayment (Increase the Debt)

If it is discovered a claim was originally established for less than it should have been, establish a new claim for the difference. Record on CARS System Note Add (OVNA) the reason for the increase, tying the two claims together.

Less Overpayment (Decrease the Debt)

If it is discovered a claim was originally established for more than it should have been, submit a Claim Payment Transmittal (CARS-2) requesting the balance be reduced using transaction code 22, credit. Write on the top of the CARS-2 the reason for the reduction. Record the reason for the reduction and describe the documentation used to make the decision on OVNA.

IM-65 July 12, 2023 ; IM-142 December 2, 2005

Terminating a claim in CARS reduces the balance owed to zero. A claim may be terminated by the system or by staff.

The system terminates claims monthly if:

the total outstanding balance of all claims for a debtor is $25.00 or less and all claims for the debtor are delinquent 90 days, or

the claim is over ten years old and there have been no payments by the debtor in the previous three years

A claim is terminated for the following reasons by designated staff:

The household cannot be located

Two or more pieces of correspondence mailed to the household have been returned as undeliverable

The household is not receiving any assistance from the Family Support Division

All responsible members of the claim have died

The agency is reversed by a hearing decision and is ordered to terminate the claim

The claim was established in error

Note: Unable to locate a case record is NOT a reason to terminate a claim.

For instructions see CARS User Guide Terminating or Closing a Claim .

IM-65 July 12, 2023 ; IM-142 December 2, 2005

A claim is closed by the system if the claim is paid in full.

Designated staff will close a claim for the following reasons.

A court order or administrative ruling eliminates the claim

The claim is written off

The claim is compromised

The claim is transferred to another state

An order has been issued in a bankruptcy, which stops the agency from collecting the debt

Refer to policy 1142.060.00 Terminating a Claim .

For instructions see CARS User Guide Terminating or Closing a Claim .

IM-65 July 12, 2023 ; IM-142 December 2, 2005

Closed or terminated claims may be reinstated when:

the household, or a member of the household, reapplies and is found eligible for SNAP benefits

circumstances have changed for the household, making collection possible

the case can be certified for TOP, or

the household agrees to make payment

Notify the SNAP Program and Policy Unit if a claim meets the criteria to be reinstated. The claim will be reviewed and appropriate action taken. If the claim is reinstated and household is receiving SNAP benefits, recoupment is initiated. If a repayment agreement is entered, a billing statement is generated.

IM-142 December 2, 2005

If any type of bankruptcy notice is received and there is an active claim on the individual, check the OVCC screen to see if the claim was closed with a reason code of 14 BANKRUPTCY. Forward the bankruptcy notice to the Claims and Restitution Unit immediately if the claim is active or if the claim is closed with a reason other than 14.

DLS monitors the bankruptcy and notifies the court of the agency’s claim against the individual, if appropriate. When the case is settled, DLS updates CARS and coordinates further action necessary with the Claims and Restitution Unit.

IM-65 July 12, 2023 ; IM-142 December 2, 2005

A Negative Balance Report is generated to identify and monitor possible overpayments of claims. Claims and Restitution Unit staff review the report and refunds are issued when necessary. For an overpayment to be refunded, the participant must have actually paid the amount in cash, SNAP benefit recoupment, Treasury Offset Program (TOP) or voluntary repayment of SNAP benefits from EBT. If the negative balance is created by a compromise or offset, the difference is not refunded.

When the household is issued a refund, designated staff generate a notice. If the household has an active EBT card, SNAP benefits are issued. If the household does not have an active EBT card, a check is issued for the refund.

IM-65 July 12, 2023 ; IM-142 December 2, 2005

The state where the overpayment occurred has the first opportunity and responsibility to collect on a claim. However, if that state is unable to recover the overpayment, the state where the household is currently residing may initiate action to collect the overpayment. Missouri can establish a claim and collect for overpayments, which occurred in another state. Other states may contact Missouri to determine if the household currently resides in Missouri and if the household is currently receiving SNAP benefits. The other state may request that we recover the overpayment. If another state notifies a county office of an outstanding debt, the information is sent to the Claims and Restitution Unit at DLS.CANDRTEAM@dss.mo.gov .

If Missouri discovers a household has moved to another state, we can request the other state to initiate or continue collection on our unpaid claim. Copies of the material in the case file relating to the claim may be sent to the other state. Notify the Claims and Restitution Unit. Claims and Restitution staff will contact the other state regarding transferring the outstanding claim balance for collection.

IM-10 March 18, 2014 ; IM-142 December 2, 2005

The claims section is retained for three years after the debt is paid in full, or the balance is reduced to zero due to termination or compromise. Family Support Division (FSD) maintains the record for 3 years after the balance of the debt becomes zero.