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The following procedures to calculate both county responsible and recipient responsible overpayments must be used.
A. Verification of all changes according to the eligibility criteria outlined in the Work First Manual, using the policy in effect at the time the overpayment occurred.
B. Determination of the overpayment period is the first month DSS would have made the change effective had it acted timely and/or the recipient reported timely based on when the change occurred until the month the change is made. To determine the first potential month of overpayment, the county allows for ten (10) calendar days for the recipient to notify the agency of the change and ten (10) workdays for the timely notice (DSS 8110).
NOTE: The month of change would not be an overpayment month.
For example: A family member began working in April 4, 2008 but reported it in August. The change would have been made effective no later than the June payment. The overpayment period is June, July, and August and September (unless the change can be made effective with the September check).
Date of change |
04/04/08 |
+ 10 calendar days |
04/14/08 |
+ 10 workdays from 8110 |
04/28/08 |
Enter the following month |
05/2008 |
Pull check deadline was |
04/25/08 |
First month of overpayment |
June |
C. Determination of the overpayment amount.
1. Based on the reported income calculate the Work First payment to determine the amount the family unit was eligible to receive. Include all verified income used to determine the Work First payment actually received. Compute the income as instructed by appropriate policy in effect at the time. Apply any appropriate penalties.
2. Recalculate the Work First budget using the actual unreported income received for each overpayment month. If a change in situation or income is enough to cause ineligibility, consider the first month of change and apply reported procedure. Refer to II. B for the overpayment period. For subsequent months, follow appropriate budgeting procedures depending on policy in effect during the overpayment period. Follow all policy including notice requirements. Refer to Notice and Hearings Process (264).
3. Subtract the amount the family unit was eligible to receive from the amount actually received. The difference is the overpayment amount.
D. Completion of an on-line inquiry into ACTS to determine if child/spousal support is routed through the Child Support Enforcement Section.
When determining the collection amount for the overpayment month, the child/spousal support obligation is always considered. This is also applied when a check is returned, or the agency is responsible for an overpayment.
1. If no support obligation is routed through the Child Support Enforcement Section, the entire overpayment amount is collected. Refer to C. above.
2. If a support obligation is routed through the Child Support Enforcement Section, the calculation procedures in F. below are used.
E. For overpayments that occurred November 1, 1989 Through June 30, 1997, the following procedures apply:
1. Verification of the amount of the child/spousal support obligation. To verify, complete an on-line inquiry into ACTS.
2. Determination of whether the absent parent paid support in the overpayment month. To determine, use the Clerk of Superior Court records, ACTS, or other available records.
3. If the absent parent paid support in the overpayment month, the following actions are taken.
a. Determine the adjusted support obligation by subtracting $50 from the amount of the total support obligation. If the total obligation is less than $50, subtract the total obligation amount.
b. Determine the net Work First payment by subtracting the adjusted support obligation from the amount of Work First actually paid.
c. Compare the net Work First payment to the overpayment amount.
d. If the overpayment amount equals, exceeds, or less than the net Work First payment, collect the lesser amount.
e. If the net Work First payment is a negative amount, do not collect the overpayment amount.
4. If the absent parent did not pay support in the overpayment month, take the following actions.
a. Determine the net Work First payment by subtracting the support obligation from the amount of Work First actually paid.
b. Compare the net Work First payment to the overpayment amount.
c. If the overpayment amount equals, exceeds the net Work First payment, collect the lesser amount.
d. If the net Work First payment is a negative amount, do not collect the overpayment.
5. When it is not possible to verify if the absent parent paid support in the month the overpayment occurred, the procedures in 4. above are applicable.
F. For Overpayments That Occurred On Or After July 1, 1997 through April 1, 2000.
1. Determine correct overpayment period. (The month of change would not be an overpayment month.)
2. Determine whether income disregards are appropriate. ($30 and 1/3, $90 work-related expense, and childcare. During this period of time earned income deductions would not have been given had the client not reported their income timely.)
3. Determine the correct payment amount using actual unreported income received for each overpaid month.
4. Subtract the correct payment amount from the amount they actually received. This is the gross overpayment amount.
5. Check ACTS to determine whether a child support obligation was in effect at the time of the overpayment. If so, subtract this amount from the gross overpayment amount. This is the net overpayment amount. Compare the net Work First payment to the gross overpayment amount. If the overpayment amount equals or exceeds the Net Work First payment, recoup the lesser amount. If this amount is less than zero there is no overpayment.
G. For overpayments that occurred on or after April 1, 2000.
1. Determine correct overpayment period. (The month of change would not be an overpayment month).
2. Evaluate whether Job Bonus should be applied or 27.5 %. (Effective 4/1/2000 there is no penalty for late reported wages).
3. Determine the correct payment amount using actual unreported income received for each overpaid month.
4. Subtract the correct payment amount from the amount they actually received. This is the gross overpayment amount.
5. Check ACTS to determine whether a child support obligation was in effect at the time of the overpayment. If so, subtract this amount from the gross overpayment amount. This is the net overpayment amount. Compare the net Work First payment to the gross overpayment amount. If the overpayment amount equals or exceeds the Net Work First payment, recoup the lesser amount. If this amount is less than zero there is no overpayment.
H. When determining the overpayment for Benefit Diversion,
1. Calculate the Work First payment based on the reported income to determine the amount the family unit was eligible to receive.
2. Recalculate the Work First budget with the verified unreported income. If a change in situation or income is enough to cause monetary ineligibility, collect the entire overpayment.
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For questions or clarification on any of the policy contained in these manuals, please contact your local county office. |
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