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525 DIVISION OF WELFARE AND SUPPORTIVE SERVICES Child Care Policy Manual Effective Date of Changes Based on the reporting timeframes in MS 512, case managers must determine how and when a reported change becomes effective on a case. Below is a guide to use to determine effective dates for commonly reported changes other than household composition changes: Type of Change Timely Reporting Untimely Reporting Income Increase Date reported/discovered Date change occurred Income Decrease Date change occurred Date reported/discovered Provider change Date change occurred Date reported/discovered Schedule change Date change occurred Date change occurred 526 Underpayments/Overpayments Some actions on reported/discovered changes may result in underpayment or overpayment of subsidy benefits. 526.1 Underpayments For all underpayments, the effective date of the change is the date it is reported by the household or the date the change is discovered by the Child Care staff or DWSS, regardless of when the change occurred. Normal budgeting rules must be applied when determining if an increase to a previously paid benefit month should be considered due to changes in the household. If it is discovered that the Child Care staff made a mistake in determining the household’s eligibility, which resulted in an underpayment, the household must be paid the difference. The underpayment must be calculated beginning on the date the incorrect decision was made. Reimbursements may be made directly to the customer or through a subsidy credit with the provider. Resolution must be acceptable by all parties (Child Care staff, customer and/or provider if applicable). Examples: • On 3/28 a customer reports that she is no longer receiving child support as of 03/25. RFI is mailed to customer for verification on 3/29 and verification is provided by the customer on 4/5 (payment has already been made to the provider for March). The household would be eligible for a potential underpayment effective 3/28. • On 6/10 it is discovered that the case manager miscalculated the household’s income at the time of case approval on 4/20 and the household should have been eligible for 95% subsidy instead of 90%. The household is eligible for an underpayment effective 4/20. Note: If the need for an underpayment is discovered for a period in which the subsidy payment has not been made yet, eligibility must be recalculated so the correct payment is made to the provider. If an underpayment is due when there is an existing overpayment balance, the entire amount of the underpayment is offset against the overpayment balance. No underpayment may be issued against a closed case when there is an existing overpayment balance. 500-Ongoing Case Management [7] MTL 01/24 July 1, 2024