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UNDER ISSUANCE: If more than one past month is being re-evaluated, all overpayment months are totaled into one overpayment claim. If some of the months reworked result in an under issuance, the restoration should only be authorized if the error was agency caused (SNAP 1504-2). OFFSETTING CLAIMS: When the initial allotment is issued untimely, but within 60 days of application, it can’t be reduced to offset an existing overpayment. If an overpayment claim has not yet been established and there is also an under issuance that needs to be authorized, both actions must be taken. If there is an open overpayment claim for months prior to the underpayment month, the entire restoration (SNAP 1504-2) is applied to the oldest outstanding claim up to the total amount needed to satisfy the overpayment claim. If a household is entitled to a supplement and there is an open overpayment claim for months prior to the under-issuance month, the amount recouped will be $10.00 or 10% of the supplement, whichever is greater, up to the outstanding overpayment amount. Households determined to have committed an IPV must have an allotment reduction of $20.00 or 20% whichever is greater. FAIR HEARINGS AND CLAIMS: If the Administrative Law Judge does not agree with an overpayment amount, the Fair Hearing/Quality Assurance staff is notified. A QA Specialist recalculates the claim; the QA Manager approves it and notice is sent to the household. METHODS OF REPAYMENT: 1. Lump Sum Payment – the household may make a cash or SNAP payment for the entire claim amount. The household should not be required to liquidate all its resources to make this lump sum payment. 2. Installment Payment – If the household is unable to repay with a lump sum, payments may be accepted in regular installments or a partial payment and regular installments for the balance. 3. Allotment Reduction – This method is automatically used for all households still receiving SNAP benefits. Recipient households may choose lump sum or installment payments in addition to allotment reduction. The allotment reduction is $10.00 or 10% of the current allotment, whichever is greater. Households determined to have committed an IPV must have an allotment reduction of $20.00 or 20% whichever is greater. The household can elect to have a higher dollar amount (not percent) deducted by sending a