621 RECOUPMENT/REPAYMENT OF ASSISTANCE SR 95-47, 07/95 (FAM-A)

An overpayment is the amount of financial assistance which was incorrectly paid to or on behalf of a recipient.

The difference between what the individual actually received and the amount the individual should have received is the overpayment/overissuance amount.

This amount includes any benefits paid to a recipient pending the outcome of a fair hearing, if the individual loses the appeal. All overpayments and overissuances must be repaid in full to the DFA regardless of the length of time the overpayment/overissuance has existed.

To determine the amount of financial assistance that was overpaid or food stamps that were overissued, treat the information that caused the error as if it had been reported timely using the actual or maximum (whichever is less) time frames for individual reporting and DFA action.

When a case has received an overpayment or overissuance, investigate—and obtain verifications for—the month of discovery and any time benefits were received during the 12-month period before the month of discovery.

Exception: If a TANF case has willfully caused an overpayment, the 12 month time limit does not apply.

• Recoupment action can only be taken against the individual who was the case head at the time of the overpayment.

• Recoupment is required from any TANF case in which a previously overpaid case head is the current case head (e.g., case head, payee relative not included, incapacitated spouse, etc.) or an open member.

Before taking any recoupment action, complete Form 205, Notice of Underpayment or Overpayment, and Form 810, Notice of Rights and Responsibilities.

If the individual wishes to repay voluntarily, have them complete Form 759, Repayment Agreement.

The cause of the overpayment has no impact on the circumstances for repayment. The overpayment must be repaid regardless of circumstances.

Causes for overpayments of TANF financial assistance are:

• alien sponsor’s error,

• DFA administrative error,

• inadvertent household error, or

• intentional program violation (IPV).

An alien sponsor can cause an overpayment or overissuance by providing incorrect information. A sponsor is someone who completed an affidavit of support to help an alien obtain lawful permanent resident status.

• When the sponsor was at fault for the incorrect information, both the alien and the sponsor are responsible for repaying the overissuance. Establish the claim against the person most likely to repay first. If the sponsor is the first object of the claim but they fail to respond to the demand letter within 30 days of receipt, establish a claim against the alien household.

• When the sponsor provided the incorrect information inadvertently or with good cause, only the alien household is liable for repayment of an overissuance.

A DFA administrative error is when DFA caused an overpayment or overissuance by failing to take proper action.

Examples

- DFA took tardy action on a reported change.

- DFA computed or issued an inappropriate benefit.

- DFA issued two or more month’s benefits by mistake.

An inadvertent household error is when a household causes an overpayment through a misunderstanding or an unintended error. It is also considered an inadvertent household error when DHHS cannot prove intentional program violation. See Part 713, Intentional Program Violations (IPV).

Examples

- The household unintentionally failed to provide correct or complete information.

- The household unintentionally failed to report changes in household circumstances.

- The household received benefits pending a fair hearing decision, which subsequently denied entitlement.