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Page | 320 Prior to allotment reduction, ORFI will send a demand letter and allow the household 30 days to pay off the overpayment in full or negotiate an acceptable repayment agreement. If no repayment agreement is accepted, ORFI will enter the appropriate information on ACCESS to start the allotment reduction process.

The provision for a $15 minimum benefit level for households with one and two members only, will apply to the allotment prior to reduction.

The amount of benefits to be recovered each month through allotment reduction is determined as follows: A. Inadvertent household claims:  The amount of benefits to be recovered each month will be the greater of 10% of the household's monthly allotment or $10 per month. B. Intentional program violation claims:  The amount of benefits to be recovered each month will be the greater of 20% of the household's monthly entitlement or $20 per month. Rounding

 If the allotment times 10% or 20% ends in 1 to 49, round down to the nearest dollar.  If the allotment times 10% or 20% ends in 50 to 99, round up to the nearest dollar.

19320 OFFSET OF RESTORED BENEFITS

If an under issuance of benefits has occurred, and the household has an unpaid balance, the amount of the unpaid balance will be deducted before any restored benefits are paid.

DSS may offset overpayments against restored benefits owed to any household which contains a member who was an adult member of the original household at the time the overpayment occurred.

19330 LUMP SUM PAYMENTS

If the household is financially able to pay the claim at one time, the lump sum cash payment will be collected. However, the household will not be required to liquidate all of its resources to make this one lump sum payment.

If the household is financially unable to pay the entire amount of the claim at one time and prefers to make a lump sum payment as partial payment of the claim, ORFI will accept this method of payment.

Either cash or SNAP benefits may be received for lump sum payments.

19340 INSTALLMENT PAYMENTS

If the household has insufficient liquid resources or is otherwise financially unable to pay the claim in one lump sum, payments will be accepted by ORFI in regular installments. Payments may be made with SNAP benefits or cash. Example:  Allotment: $132 x 10% = $13.20  Recoupment Amount: $13  Allotment: $149 x 10% = $14.90  Recoupment Amount: $15