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DEPARTMENT FOR AGING AND REHABILITATIVE SERVICES AUXILIARY GRANT PROGRAM ADMINISTRATIVE ISSUES 11/18 CHAPTER L PAGE 15

assistance payment for which the individual is eligible. The corrective payment shall be disregarded in determining resources for the month the payment is made and the following month.

The above instructions are not applicable when a corrective payment is made as a result of an appeal or a court decision. In such cases, the terms of the hearing decision or court order apply.

At the time a grant is made or increased for the purpose of correcting a prior underpayment, the individual must be informed in writing of the purpose of this special allowance, the amount and the period for which it will be made, and that it will automatically terminate at the end of the specified periods. If this is done and the individual at the time the special allowance is terminated, appeals within the advance notice period, assistance need not be continued in the original amount.

5.2. Overpayment

As provided for by the Code of Virginia §63.2-512, the local department must recover overpayments when:

• the improper payment is the result of an error on the part of the individual receiving AG; or • assistance is continued due to an appeal and the hearing decision supports the agency action.

The methods from recovering overpayments are:

• Overpayments other than Fraud

 when the individual receiving AG continues to be eligible, if the recipient has disregarded income, the monthly assistance payment is reduced by the amount of the monthly disregarded income until the full amount of the allowable recoupment is recovered.

If the individual has resources within the allowable reserves, the individual must be given the opportunity to repay by using such resources if so elected.

 When the individual is no longer eligible, arrangements for voluntary repayment of the full amount should be made. If the client fails to make voluntary repayment, the agency should initiate action under § 63.2-512 of the