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State of Wisconsin Release 09-02 June 26, 2009 |
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State of Wisconsin Release 09-02 June 26, 2009 |
7.3.1.1 Overissuance Claims Against Food Units
7.3.1.3 Offsetting an Established Claim Amount
7.3.1.6 15% Local Agency Retention
7.3.1.7 Overissuances Due to Receipt of Tribal Food Distribution and FS in the Same Month
7.3.1.8 Notice of Overissuance
7.3.1.9 Overissuances Due to Client & Non-Client Error
Establish a claim against any FS FoodShare group that has received more FS than it was entitled to receive.
There are three types of overpayment claims: client error, nonclient error, and Intentional Program Violation (IPV Intentional Program Violation). Collect claims for all types of errors, regardless of the date of origin. Only collect the amount of the claim.
In claim calculations, disregard income that was not previously reported and was not required to be reported.
7 CFR Code of Federal Regulations 273.11(e)(6)
All adult a person who is 18 years old or olderor emancipated minor A married, widowed or divorced person who is at least 16 years old, a minor who has given birth, a minor emancipated by court order, a minor emancipated by parental consent or a minor living on his or her own who is not supported by parents. food unit members at the time the overpayment occurred are liable for repayment of any overissued FoodShare benefits. If a liable individual moves to another household, the claim follows him/her to the new household. Also apply the claim to any remaining adult or emancipated minor food unit members. An individual living in the household, but not included in the food unit would not be responsible or liable for the overissuance to the food unit.
An authorized representative applying on behalf of a resident of a drug or alcohol treatment center, or a group living arrangement (GLA) (3.2.1.5), is responsible and liable for any FS overissuances to the recipient due to misrepresentation or Intentional Program Violation which the authorized representative knowingly commits in the certification of center or GLA residents.
Offset an existing FS overissuance (claim) with the calculated FS underissuance (restoration) amount when both situations exist. Offset the claim against any amount that has not been restored to the FS group. You may offset a suspended or terminated claim amount against an underissuance amount.
An initial allotment must not be reduced to offset a claim. This includes retroactive initial allotments. Person Adds are not initial allotments. Therefore, you can offset claims against person add auxiliaries. Offset the entire auxiliary, if the claim balance is more than the auxiliary. If the claim balance is less than the auxiliary, CARES will correctly apply the amount of auxiliary that will zero out the claim and issue the remainder of the auxiliary as a benefit to the recipient.
Pursue collection of FS claims even if the FS group moves out of a county/tribal area or out of Wisconsin.
The agency that overissued benefits to the group has the first opportunity to collect an over-issuance. If the agency does not act promptly to collect, and the group moves, the new agency can begin collection action. The new agency must contact the agency that overissued the benefits to see if they intend to pursue collection.
When the cause of overissuance is client error, the local agency that establishes the claim may keep 15% of any collection that is made against that claim.
When the cause of overpayment is an IPV, the local agency may, in some circumstances, keep 15% of any collection against the claim.
A FS group cannot receive commodities from a Tribal Food Distribution program (3.11.1) and FS at the same time. Make a claim against any group that receives FS in the same month it also participates in a Tribal Food Distribution Program. If the FS group receives:
FS and then receives Food Distribution Program commodities in the same month, the Food Distribution agency must process the claim.
Food Distribution Program commodities and then receives FS in the same month, the FS agency must process the claim
A Notice of FS Overissuance, a completed FS Overissuance Worksheet, and a FS Repayment Agreement must be sent to the client for all types of claims.
Attempt a personal contact with the FS group in your initial collection efforts. The local agency may request the repayment be brought before the court or addressed in an agreement reached between the prosecutor and accused person.
All Repayment Agreements are due on the 25th of the month. In all cases, if the FS group is receiving FS benefits, recoupment will take place. If the client signs and returns the repayment agreement, they are expected to make a monthly repayment in addition to the recoupment from the FS benefit allotment.
If FS benefits are not being issued and the client does not sign and return the FS Repayment Agreement, dunning notices will be issued through CARES Client Assistance for Reemployment and Economic Support. The local agency may also pursue other collection action. The State of Wisconsin Public Assistance Collection Unit may also pursue collection action.
If the group fails to make a scheduled payment or underpays, send a dunning notice stating that the group must contact the local agency to renegotiate the payment schedule.
The group must either:
Negotiate a new schedule, or
Pay the overdue amount and continue to pay based on the previous schedule.
A client error occurs when the overissuance was caused by an unintended error:
On the part of the FS group.
Due to continuation of benefits pending a fair hearing decision.
A nonclient error occurs when the State or local agency:
Takes an incorrect action on a FS case,
Fails to correct an action.
Do not establish a claim if an overissuance occurs because the agency did not ensure that a household did any of the following:
Signed the application form.
Completed a current work registration form.
Applied in the correct project area.
Do not establish a claim if Social Security or SSI Supplemental Security Income updates from data exchange are incorrect. These updates cannot be recovered or found in error because the information comes from a trusted 3rd party source.
This page last updated in Release Number: 07-02
Release Date: 07/10/07
Effective Date: 07/10/07