629.01 Determine the Corrective Payment (AAM)

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Use the following steps to determine the amount of the corrective payments:

1. Treat the information that caused the error as if it had been reported within time frames, using the actual or maximum time frames (whichever is less) for client reporting and DFA action.

2. The underpayment begins with the:

- first eligible payroll period, if the error is a result of information submitted for the initial eligibility determination; or

- first payroll period that was affected using the actual or maximum time frames for client reporting, DFA action and advance notice period, if the error resulted from a change.

3. The underpayment ends:

- when a correct grant has been issued, if the changed information is still current; or

- with the first payroll period after applying the actual or maximum time frames for client reporting, DFA action, and advance notice period, if the information is no longer current.

4. The difference between what the individual actually received and what the individual should have received is the corrective payment amount.

5. Reduce the corrective payment amount by any outstanding overpayments.

6. Issue the corrective payment:

- only for underpayments totaling $5.00 or more;

- regardless of the length of time the underpayment has been in existence; and

- as a positive benefit adjustment to open financial assistance cases or by issuing a supplemental check if the financial assistance case is closed.

Exception: Do not issue a corrective payment to deceased recipients.

* The BI0003, Notice of Underpayment, is automatically generated to notify the individual of the amount and circumstances of a corrective payment.