The agency must take all reasonable steps necessary to promptly correct all overpayments regardless of cause. The worker must record in the case record all steps taken to recoup any overpayments.
The worker must first send a demand letter, giving the client the choice of reimbursing all or part of the overpayment or having future assistance reduced. If the client reimburses part of the overpayment, the remainder must be recouped by grant reduction. The worker must allow the client ten days to respond to the demand letter. If the client requests recoupment within the ten days, the worker must take necessary action at that time. If the client does not respond within ten days, the worker must begin recoupment procedures in the first month possible, taking into account adequate and timely notice.
If the client chooses to repay but fails to do so, the worker must immediately take necessary action to recoup the overpayment.
When the evidence clearly establishes that a client willfully withheld information which resulted in an overpayment, refer the case to the Special Investigation Unit, Central Office; or in the Omaha Office, to the Omaha Special Investigation Unit. Once a case has been referred to the Special Investigation Unit, take no action with regard to the prosecution of the suspected fraud except in accordance with instructions or approval by the Special Investigation Unit. However, complete normal case actions. Normal case actions include closing a case that is found to be ineligible and recovering overpayments.
If a case with an overpayment is closed or becomes MA only or MA with SOC, the agency must collect an overpayment of $35 or more if the client becomes eligible for a grant at a future date. The worker must send a demand letter advising the client that s/he is still liable for the overpayment.
A grant that is not issued because of the $10 minimum is not applied to an overpayment.
{10/10/07}
3-008.07B1 Identification of an Overpayment
3-008.07B2 Recoupment Calculation
3-008.07B3 Treatment of Child/Spousal Support in Determining Overpayments
3-008.07B4 Retroactive SSI Payment