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Department
of Human Services Families
First Online Policy Manual Families First Overpayments and
Underpayments |
Revised: |
39.2 |
FAMILIES FIRST UNDERPAYMENTS |
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A Families First underpayment occurs when an AU receives less
assistance than they were entitled to receive. Corrective action must be taken promptly to
restore benefits retroactively any time an
underpayment for any prior period is discovered when the AU is currently
eligible for and receiving benefits, or would be if the error causing the
underpayment had not occurred. The
amount of the underpayment is the difference between the grant the AU
received and the amount of benefits they were entitled to receive. Retroactive payments cannot be used to offset an overpayment. The caseworker must verify pertinent information to establish the
amount of benefits to be restored to the AU, such as loss or decrease in
income, etc., in accordance with normal verification requirements. See the Verifications chapter for details. The eligibility and case management system must be documented fully to
explain the circumstances causing the underpayment, the specific months
involved and the steps taken to correct the error. In addition, the
caseworker must update any appropriate eligibility and case management system
screens. Prompt action must be taken to correct the ongoing grant, if
applicable. When calculating the amount of the underpayment, the caseworker
will: ·
Establish
the entire period of incorrect payment. ·
Use the
policies, procedures, budgeting methods and payment standards in effect
during the period of underpayment. ·
Work a
Families First budget off-line to determine the amount of benefit that the AU
should have received for each month of the period. ·
Subtract the
amount received from the amount that should have been issued for each month
in question. ·
Authorize a
retroactive corrective payment for each month involved in the following
manner. The caseworker will enter information in the eligibility and case
management system, if the current and/or recurring month’s benefits are being
corrected for the addition of an individual or a decrease in income, but
because of time frames the changes could not be made effective for the
current or next calendar month. If retroactive payments are being made for reasons other than those
listed above and/or the retroactive payments are for past months, the
caseworker will enter information in the eligibility and case management
system. If child support was collected and there is any remaining unmet need
after the retroactive corrective payment has been authorized, the caseworker
must notify the Supplemental Unit in the AFDC/FF/FS Policy Section about: ·
The months
involved. ·
The correct
CNS. ·
The correct
Families First payment. ·
Any net
countable income. |
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