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VIRGINIA DEPARTMENT

OF SOCIAL SERVICES ENERGY ASSISTANCE

06/09 VOLUME IX, CHAPTER E, PAGE 4 b. Responsibility for Error Correction 1) Client/Vendor Error The LDSS must recover overpayments from the client or crisis vendor when the improper payment is the result of an error on the part of the client or vendor. The LDSS must also recover monies from the client in appeal cases as specified in Chapter F. The LDSS will make arrangements for voluntary repayment of the amount of the overpayment. If this fails, the LDSS will initiate action in accordance with the Code of Virginia, to collect the amount as a debt, unless the administrative cost of such action would exceed the amount of the overpayment. The LDSS will not correct underpayments to the household based on client error. In cases of vendor or client fraud, the LDSS will follow the recovery procedures prescribed by the court. 2) LDSS Error Provisions adopted by the Virginia General Assembly in the Appropriations Act require localities to reimburse the VDSS for payments made as a result of LDSS error. The standard procedures for reimbursement found in the VDSS Finance Guidelines Manual for LDSS will be followed upon identification of an improper payment by the VDSS or the LDSS.

If an LDSS error caused a payment to be less than the household’s correct benefit, the LDSS must correct the payment with a local check payable to the client or vendor, as appropriate. The household will not be required to reimburse the VDSS or LDSS for improper payments resulting from LDSS error. When the Program is responsible for the overpayment the LDSS or VDSS may request reimbursement but cannot take action against the household to obtain reimbursement if the household chooses not to repay. The LDSS must repay the VDSS for LDSS caused overpayments. c. Reporting Errors 1) Overpayments - Complete a Correction of Payment Errors (COPE) form and an Energy Assistance Program Case Payment Adjustments form. If the overpayment is a result of an LDSS error a local check made payable to the Treasurer of Virginia and a Case Payment Adjustment form must accompany the COPE form. The COPE form and Case Payment Adjustment form must be completed in triplicate. The original COPE form, the Energy Assistance Program Case Payment Adjustments form and the check for the overpayment should be sent to the Division of Finance. A copy of the COPE form, the Energy Assistance Program Case Payment Adjustments form and a copy of the check should also be sent to the Regional Consultant. A third copy should be retained by the LDSS for their records. TRANSMITTAL #09-1