Calculating the amount of claims.

(i) For each month that a household received an overissuance due to an inadvertent household error or administrative error, the social services district which issued the food stamps must determine the correct amount of food stamp benefits the household was entitled to receive. The amount of the inadvertent household or administrative error claim must be calculated based on the amount of the overissuance which occurred during the 12 months preceding the date the overissuance was discovered. In cases involving reported changes, the social services district must determine the month the overissuance initially occurred as follows:

(a) If, due to an inadvertent error on the part of the household, the household failed to report a change in its circumstances within the required timeframes, the first month affected by the household's failure to report is the first month in which the change would have been effective had it been timely reported. However, in no event may the social services district determine as the first month in which the change would have been effective any month later than two months from the month in which the change in household circumstances occurred.

(b) If the household timely reported a change but the social services district did not act on the change within the required timeframes, the first month affected by the district's failure to act is the first month the district would have made the change effective had it acted timely. However, in no event may the social services district determine as the first month in which the change would have been effective any month later than two months from the month in which the change in household circumstances occurred. If a notice of adverse action was required but not provided, the social services district must assume for the purpose of calculating the claim that the maximum advance notice period would have expired without the household requesting a fair hearing under Part 358 of the Title.

(a) If, due to an inadvertent error on the part of the household, the household failed to report a change in its circumstances within the required timeframes, the first month affected by the household's failure to report is the first month in which the change would have been effective had it been timely reported. However, in no event may the social services district determine as the first month in which the change would have been effective any month later than two months from the month in which the change in household circumstances occurred.

(b) If the household timely reported a change but the social services district did not act on the change within the required timeframes, the first month affected by the district's failure to act is the first month the district would have made the change effective had it acted timely. However, in no event may the social services district determine as the first month in which the change would have been effective any month later than two months from the month in which the change in household circumstances occurred. If a notice of adverse action was required but not provided, the social services district must assume for the purpose of calculating the claim that the maximum advance notice period would have expired without the household requesting a fair hearing under Part 358 of the Title.

(ii) If the household received a larger allotment than it was entitled to receive, the social services district must establish a claim against the household equal to the difference between the allotment the household received and the allotment the household should have received.

(iii) After calculating the amount of the inadvertent household or administrative error claim, the social services district must offset the amount of the claim against any amounts which have not yet been restored to the household. The social services district must then initiate collection action for the remaining balance, if any.

(i) For each month that a household received an overissuance due to an act of intentional program violation, the social services district must determine the correct amount of food stamp benefits, if any, the household was entitled to receive. The amount of the intentional program violation claim must be calculated retroactive to the month the act of intentional program violation occurred, regardless of the length of time that elapsed until the determination of intentional program violation was made. However, the social services district must not include in its calculation any amount of the overissuance which occurred in a month more than six years from the date the overissuance was discovered. If the household member is determined to have committed an intentional program violation by intentionally failing to report a change in its household's circumstances, the first month affected by the household's failure to report is the first month in which the change would have been effective had it been reported.

(ii) If the household received a larger allotment than it was entitled to receive, the social services district must establish a claim against the household equal to the difference between the allotment the household received and the allotment the household should have received.

(iii) When determining the amount of benefits the household should have received, the social services district must not apply the 20 percent earned income deduction to that portion of the earned income which the household intentionally failed to report.

(iv) Once the amount of the intentional program violation claim is established, the social services district must offset the claim against any amount of lost benefits that have not yet been restored to the household.