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FOOD AND NUTRITION SERVICES CERTIFICATION CLAIMS Agency Error (AE) Claims

7 Section 810 Change #3 2017 September 20, 2017 810.06 COLLECTING THE AE CLAIM

A. Initiating Collection Action

1. Collection action is initiated when the claim information is entered into EPICS. Enter each claim, including those where the total amount of the claim is collected through restoration offset. See 810.6, A, 4.

2. EPICS sends the DSS-8554, Letter of Overissuance, to each debtor if the amount due is greater than “$1.” The DSS-8554 incorporates a repayment agreement for nonparticipating households. A DSS-8554 is not sent when a change in the claim category occurs. A DSS-8554 is sent when a claim type of U or P is changed to an Agency Error, and is keyed into EPICS as an AE.

3. An individual debtor with multiple claims is not considered delinquent as long as one claim is being paid in accordance with a repayment agreement or through allotment reduction.

4. Restored benefits are benefits owed to the recipient because of an underissuance for prior months. Supplements are benefits owed to the recipient in the same month. Do not restore benefits more than 12 months prior to the Date of Discovery. EPICS and NC FAST will not issue restored benefits nor a supplement when the debtor has a claim in EPICS. Calculate the amount of restored benefits or supplement owed to the recipient, and post that amount as a payment in EPICS with a payment type code of O. Document your actions in the eligibility file and in EPICS Notepad.

5. All household members who were 18 years old or older, or an emancipated minor head of household at the time of the overissuance are debtors on the claim. This includes household members that were not reported to the agency. Do not include as debtors any household members who were not in the household at the time of the overissuance.

B. Participating Household

1. The DSS-8554, Letter of Overissuance, notifies the participating household that an allotment reduction will be effective the month following the month in which the ten working day notice expires.

2. The household may only request a Fair Hearing if it disagrees with the amount of the claim established, the recoupment amount, or the household states the claim has been previously paid in full. If the household requests a Fair Hearing within the ninety-calendar day period and the household’s certification period has not expired, continue benefits on the basis authorized immediately prior to the notice. Cease all collection action once a Fair Hearing is requested. Upon request for a

Fair Hearing, enter “X” in the Appeal Indicator field on the Debtor Detail screen in EPICS and document in EPICS. Fax the State Office /Attn: Program Integrity a written request to block the debtor from TOP and DOR interception until a hearing decision is received. The request must be signed by the Investigator and