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Subject: Families First Overpayments and Underpayments

Policy 23.19 Date of Last Review: 11/08/2023 Effective Date: 11/15/2023 Date of Next Review: 11/08/2026 RDA: SW22 Page 2 of 4 Overpayment 1. A Families First overpayment occurs when an assistance unit (AU) receives more cash assistance than they were eligible to receive. 2. Corrective action must be taken promptly to establish the correct ongoing assistance amount any time an overpayment is discovered. 3. The amount of the overpayment is the difference between the grant the AU received and the amount they were eligible to receive. 4. A claim must be established when any AU receives more Families First assistance than it was eligible to receive, regardless of the reason for the overpayment. 5. Overpayments may occur as a result of: a. Administrative (agency) error (AE). b. Inadvertent client error (ICE). c. Suspected intentional program violation (SIPV). 6. If a change results in either ineligibility or a reduction in the net cash grant amount and the payment is not correctly adjusted the next calendar month, then a claim reporting the overpayment for the next calendar month, as well as any prior months affected, must be prepared when the total claim amount is thirty-five dollars ($35) or more. Underpayment 1. A Families First underpayment occurs when an AU receives less cash assistance than they were eligible to receive. 2. Corrective action must be taken promptly to restore assistance retroactively when an underpayment for any prior period is discovered. 3. The amount of the underpayment is the difference between the grant the AU received and the amount of assistance they were eligible to receive. Establishing the Period and Amount of the Overpayment and Underpayment An overpayment or underpayment must be established for any period if the circumstances and overpayment/underpayment can be determined. The policies and need/payment standards that were in effect during the affected time period must be used to establish the period and the amount of the overpayment or underpayment. 1. Calculate an offline budget to determine the amount of Families First cash the AU was eligible to receive. 2. Establish the difference between the Families First cash grant the AU received and the corrected assistance amount they were eligible to receive. The difference is the overpayment or underpayment amount.