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S N A P M A N U A L

289 2 9 . 3 S T A T E A G E N C Y L I A B I L I T Y F O R E R R O R R A T E S At the end of each federal fiscal year, each State agency's payment error rate over the entire fiscal year will be computed and evaluated to determine whether the payment error rate goals established in the following paragraphs have been met. FNS will announce a national performance measure not later than June 30 after the end of the fiscal year. The national performance measure is the sum of the products of each State agency's error rate times that State agency's proportion of the total value of national allotments issued for the fiscal year using the most recent issuance data available at the time the State agency is notified of its payment error rate. Once announced, the national performance measure for a given fiscal year will not be subject to change. The national performance measure is not subject to administrative or judicial review. Liability for payment will be established whenever there is a 95 percent statistical probability that, for the second or subsequent consecutive fiscal year, an Agency’s payment error rate exceeds 105 percent of the national performance measure. The Agency’s liability for payment error rates as determined above are not subject to the FNS warning process. The amount of the liability will be equal to the product of: • The value of all allotments issued by the Agency in the (second or subsequent consecutive) fiscal year; multiplied by • The difference between the Agency's payment error rate and 6 percent; multiplied by • 10 percent Whenever a State is assessed for an excessive payment error rate, the state will have the right to request an appeal. When a State agency with otherwise effective administration exceeds the tolerance level for payment errors as described in this section, the agency may seek relief from liability claims that would otherwise be levied under this section on the basis that the agency had good cause for not achieving the payment error rate tolerance. The five unusual events described below in this section are considered to have a potential for disrupting program operations and increasing error rates to an extent that relief from a resulting liability or increased liability is appropriate. The occurrence of an event(s) does not automatically result in a determination of good cause for an error rate in excess of the national performance measure. The State agency must demonstrate that the event had an adverse and uncontrollable impact on program operations during the relevant period, and the event caused an uncontrollable increase in the error rate. Good cause relief will only be considered for that portion of the error rate/liability attributable to the unusual event. The following are unusual events which State agencies may use as a basis for requesting good cause relief and specific information that must be submitted to justify such requests for relief: (A) Natural disasters and civil disorders. Natural disasters such as those under the authority of the Stafford Act of 1988 or civil disorders that adversely affect program operations. (B) Strikes. Strikes by State agency staff necessary to determine SNAP eligibility and process case changes. (C) Caseload growth. A significant growth in SNAP caseload in a State prior to or during a fiscal year, such as a 15 percent growth in caseload. Caseload growth which historically increases