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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 |
7.4.1.1 Restoring Benefits Due to Underissuance
7.4.1.2 Calculating the Amount of the Underissuance
7.4.1.3 Notice of Underissuance
Restore FS FoodShare benefits when you discover a FS group received fewer benefits than it was entitled to receive. Only restore benefits if the group did not cause the underissuance. Do not restore benefits if the underissuance occurred more than 12 months before the month the underissuance is discovered.
Restore benefits even if the FS group is currently ineligible. The FS group does not need to request the restoration. Restore benefits as soon the underissuance is discovered.
The local agency servicing the FS case handles the correction if the case is receiving FS. If the case is closed, the county that last serviced the case corrects the error.
Restore benefits for an individual disqualified due to an IPV Intentional Program Violation only if the disqualification is reversed. Compare the allotment the FS group received with what it would have received if the disqualified member had participated. Restore the difference.
A request for a hearing is sufficient notification of FS group’s request for restored benefits.
Restore the difference between the issued allotment and the correct allotment. Issue the restored benefits in addition to the group's regular allotment. Consider the FS group’s reporting requirements when calculating the underissuance. Do not use income or expenses, or changes in income and expenses that were not reported and were not required to be reported.
As part of application and review processing, determine if the FS group has any outstanding claims.
If there is a claim against the FS group, offset the claim against the amount to be restored. Complete this calculation or determine this amount before restoring any benefits to the FS group.
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Example 1: Vera received $200 in monthly FS. She should have received $220. She owes the agency $10 from an overpayment ($20 underissuance less $10 overissuance = $10) Issue a supplement of $10. |
If the FS group was eligible, but received an incorrect allotment, calculate the underissuance amount only for those months the FS group was participating in the program.
If the FS group was found ineligible erroneously, the date the loss first occurred is:
Incorrect denial or delayed application - use the application month.
Erroneously terminated - use the month the loss first occurred.
Incorrect denial of recertification - use the month following the expiration of the certification period.
Calculate the underissuance amount for each month the group was, or should have been, eligible. Use the food unit's income and expenses reported or required to be reported for each month of the adjustment period. Benefits cannot be restored beyond 12 months from the month the underissuance is discovered.
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Example 2: On May 22, 2007 a worker discovers that benefits had been underissued since February 2006. The worker counts back 12 months from May 2007 and restores benefits from June 1, 2006 to May 31, 2007. |
To calculate an underissuance:
Review the income/expenses in error. Do not review income/expenses that were not the cause of the error.
Use the income that was reported or was required to be reported.
Do not use the income in the calculation if the income was not reported and was not required to be reported.
The above policy also applies to expenses.
Request any verification necessary to determine correct eligibility and benefit amounts. Do not reverify income/expenses that were not found in error. If requested verification is not provided in 10 days, a restoration is not made for the months the requested verification would have impacted eligibility or benefit amounts.
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Example 3: On June 10, Brian’s worker, Julie, discovers that she did not allow Brian the full dependent care deduction that he was eligible to receive since February 1. Julie uses the full dependent care deduction of $200/month to determine the difference between what Brian received in FS and what he should have received from February to June. Julie does not request verification of Brian’s income and other expenses because they were not found in error. |
Notify the FS group of the restoration in writing. Include:
The entitlement to lost benefits.
The amount to be restored.
Any offsetting claims and the method of restoration.
Right to appeal.
If the documents to support entitlement to lost benefits are not obtained, the group may provide an affidavit explaining its entitlement. The affidavit is signed under penalty of perjury. The local agency, a group member, or the group member's designee may draft the affidavit.
Issue an allotment to correct the underissuance, regardless of current eligibility. If the FS group's composition has changed, restore benefits to the FS group containing the most FS group members when the loss occurred. If you cannot find or determine the group with the largest number , restore benefits to the primary person at the time of the loss.
Document your calculations and the reason for restoration in the case record.
This page last updated in Release Number: 07-02
Release Date: 07/10/07
Effective Date: 07/10/07