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July 1, 2026

188 Appendix VII Client Sanctions

Overpayments An overpayment occurs when a parent spends more subsidy funds than they were eligible to receive due to a client error, agency error, or Intentional Program Violation (IPV). All parent overpayments, whether due to an administrative error, client error, or IPV, must be formally established to be repaid by the client (see 21.1).

Overpayments must be established in a timely fashion. Parent overpayments should be entered into the Benefit Recovery (BV) subsystem of CARES within 30 calendar days after the overpayment is calculated and/or IPV is approved. An overpayment notice will be systematically generated, and a manual overpayment notice must be sent to the client. For additional overpayment procedural guidance, refer to the Child Care Program Integrity Resource Library.

When establishing an IPV, local agencies must: • Contact the Bureau of Child Care Subsidy Administration (BCCSA) through the Child Care Help Desk at childcare@wisconsin.gov. • Attempt to contact the parent before establishing an IPV. All attempts to contact a parent regarding an overpayment or IPV must be recorded in CWW case comments.

If a client overpayment has been entered in BV incorrectly, the agency worker must make the correction. If the system is not allowing a correction, the Request For Write- Off or Adjustment form (DCF-F-140-E) must be completed and submitted to PACS.

IPV overpayments are approved by the administering agency, including the department, and local agencies under contract with the department. A Wisconsin Shares IPV must be approved by BCCSA prior to its entry in CWW. Local agencies must wait until an IPV has been approved before an authorization may be changed or ended due to fraud.

Overpayment Dates

If the error occurred during: Overpayment begins: Application at application date Renewal at renewal date Any other point in time on the 1st day of the following benefit month

If there is fraud or if adverse action rules apply the local agency should contact the Child Care Help Desk at childcare@wisconsin.gov for assistance.