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(3) If a client fails to cooperate with an investigation or audit without good cause, the case will be referred to the public assistance overpayments unit and the client may be found liable for an overpayment. (4) If a provider fails to cooperate with an investigation or audit without good cause, or fails to keep an accurate and complete time and attendance record for three years without good cause, CC payment may be withheld until the provider cooperates and the Director of OCC may recommend disqualifying the provider pursuant to Sections R986-700-733 and R986-700-734. The provider will also be referred to the public assistance overpayments unit and the provider may be found liable for an overpayment. (a) If a provider significantly impairs or unnecessarily delays an audit or investigation, CC payment may be withheld and the Director of OCC may recommend disqualifying the provider pursuant to Sections R986-700-733 and R986-700-734. (5) Good cause. Good cause is limited to circumstances where the client or provider can show that the reason for the failure to cooperate, to timely respond to a request, or to provide or keep a record was due to circumstances beyond the client or provider's control or were compelling and reasonable. (6) Providing incomplete or incorrect information will be treated as a failure to cooperate if the incorrect or insufficient information results in an improper decision with regard to eligibility. (7) A provider has the burden of proof to demonstrate the provider actually provided care to any CC client for which it receives CC payment. R986-700-731. Overpayments. (1) An overpayment occurs when: (a) a client or provider receives CC for which the client was not eligible; (b) a provider receives a CC payment but does not provide care for at least eight hours during the initial benefit month of CC; (c) a provider receives a CC payment when a child is no longer enrolled; (d) a provider fails to report or does not report timely that an enrolled child has not attended in 90 days, which may result in subsequent month CC payments being issued that may be subject to an overpayment if there is no longer a need for CC; (e) a provider receives a greater CC payment amount than the client is charged for the month of service; or (f) a provider applies CC to nonallowable costs pursuant to Section R986-700-728. (2) Pursuant to Section 35A-3-603 of the Administrative Determination of Overpayment Act, any provider, client, or other person who receives an overpayment shall return the overpaid funds to the Department, regardless of fault. The client and provider shall be jointly and severally responsible for repayment of any overpayment except when: (a) an overpayment is caused by an IPV on the part of solely the client or solely the provider; or (b) a provider receives a CC payment, provides at least eight hours of child care during the month, and provides an attendance record to verify the provision of care, unless the provider terminated services during the month as described in Subsection R986-700-728(6). (3) A provider who is assessed an overpayment pursuant to this section may be subject to increased monitoring or other remedial action pursuant to Subsection R986-700-727(6). R986-700-731.1. Collection of Overpayments. (1) A CC overpayment must be repaid to the Department pursuant to Section 35A-3-603 of the Administrative Determination of Overpayment Act. (a) The Department reserves the right to pursue collection of any overpayment pursuant to Title 35A, Chapter 3, Part 6, Administrative Determination of Overpayment Act. (b) For the purposes of this section "recoupment" or "recoup" means applying a CC payment or grant funds, such as an Enhanced Subsidy Grant (ESG) through Child Care Quality System (CCQS), to an overpayment balance. (c) For the purposes of this section "withholding" means delaying payment until a specified condition is met. Once the condition is met, the payment will be released. (2) A client who is receiving CC and has an outstanding CC overpayment balance may be subject to recoupment of the overpayment from ongoing CC payment. (3) If a provider does not repay an overpayment within 30 days of the order establishing that overpayment, the Department will take one of the following actions: (a) for a provider receiving an ESG, recoup grant funds pursuant to Subsection R986-700-742(3), regardless of whether the provider agrees to recoupment; (b) recoup a CC payment, if the provider voluntarily agrees recoupment; (c) establish a repayment plan with the provider; (d) if the provider is not receiving an ESG and does not establish a repayment plan or voluntary recoupment, or fails to comply with a repayment plan, withhold any CC payment until the provider establishes a repayment plan or voluntary recoupment, the provider complies with the repayment plan, or overpayment is paid in full; or (e) file an abstract of the final administrative order and pursue a lien pursuant to Section 35A-3-606. (4) Overpayment assessed against a provider before May 8, 2020. For a provider that accrued any overpayment that has not been repaid before May 8, 2020, the following provisions apply. (a) A provider shall repay an overpayment within 12 months of the order establishing that overpayment or enter into and comply with a repayment plan.