607-1 CALCULATING THE CORRECT BENEFIT
An incorrect benefit may be issued for many reasons. Most often an incorrect benefit is issued when:
A household does not provide complete information at application or recertification;
A household does not report a required change within required time frames;
The caseworker approves an application or processes a change based on a misapplication of policy;
The caseworker uses incorrect math; or
The caseworker does not act on a timely report of change.
Federal regulations require that we calculate the amount of overpayment by doing a month to month calculation, using actuals if possible.
When recalculating the benefit to determine the amount that should have been issued, correct only those items that were incorrect. For example, if the deductions were incorrectly calculated, recalculate the SNAP benefit using the correct deductions, but don’t change the income used in the budget.
To determine which months’ benefits were incorrect, apply the policy outlined in SNAP MS 604-3(D).
Example 1:
A household was required to report that
their income exceeded the gross income limit by March 2, but they did
not report it until June 3. As a result, benefits were not adjusted
until July. Applying the 10-10-10 rule outlined in SNAP
MS 604-3(A), the change should have been effective April 1, so the
household was overpaid for April, May, and June.
Example
2:
Ellie and her three children receive Temporary Assistance and SNAP. Ellie
started working a part-time job on April 1, but did not report it to her
caseworker until June 4. Under SNAP simplified reporting
rules, the household must report only when their income exceeds the gross
income limit for their household size. There is no SNAP overpayment,
since Ellie’s total income did not exceed the gross income limit for her
household size. Under Temporary Assistance reporting rules, Ellie
might have a Temporary Assistance overpayment for May and June.
Income errors may occur when the household does not report income as required. In these situations, calculate the amount of the corrected benefit by adding the actual income that was not reported by the household. Do not include previously estimated income from the same source that was not actually received. The 20% earned income deduction is not applied to that portion of the earned income the household failed to report timely.
Example:
A household is approved in November and benefits are based on Jane’s unemployment
benefits ($100 weekly x 4.3). In January the caseworker learns that
Pete had been working since October. When determining the correct
benefits for November, December and January, count Pete’s actual earned
income received during November and December and the estimated income
he expects to receive in January, Add these amounts to the $430 monthly
unemployment benefits. The household is not entitled to the 20%
earned income deduction for Pete’s earnings in determining the overpayment
amount for November, December and January. The 20% earned income
deduction is allowed beginning February. Each of the children in
the household received $50 in December as a Christmas present from their
grandparents. This income is not included in the corrective payment
determination since the income could not be anticipated when December
benefits were originally determined.
If attempts to obtain verification of the actual income is unsuccessful or all the income for the month has not yet been received, estimate the monthly income following the policy outlines in SNAP MS 603-1.
Income errors may also occur when the caseworker makes a math error or does not correctly include reported income in the budget. In these situations, calculate the amount of benefits the household should have received using the appropriate income budget as outlined in SNAP MS 603-1.
Example:
Using pay history to calculate an average paycheck, the caseworker estimates
that Sue will receive $600 gross income every two weeks. Multiplying
this payment by 2, the caseworker counts $1200 as Sue’s monthly gross
income beginning May. On July 5th, the supervisor reviews the case
and finds that the caseworker should have used the conversion factor 2.15.
To determine the correct benefits for May, June and July, recalculate
the estimated gross monthly income by multiplying the $600 by 2.15 ($600
times 2.15 = $1,290).
607-1 B. CORRECTING HOUSEHOLD COMPOSITION ERRORS
Household composition errors occur when individuals are incorrectly included or not included in the SNAP household. In these situations, correct the error by including individuals who were part of the household and exclude the individuals who were not in the household, following the policy at MS 604-3G and MS 604-3H. If the individual joins the household and has income, use the policy for correcting income errors.
Example:
A household of three applies on March 5th. During the interview on March
10th, the client tells the caseworker that her four-year-old nephew has
come to live with them. As a result of a coding error, the nephew
is not included in the case. During the August recertification,
the caseworker notices the error. To determine the correct benefits for
March through August, code the nephew as an included household member
and calculate the benefits as a four-person household. Do not change
the income used to determine the benefits already issued since the nephew
did not have any income and income is not part of the error.
607-1 C. CORRECTING ERRORS CAUSED BY INCORRECT DEDUCTIONS
When an incorrect payment is caused by not allowing deductions reported and verified by the household, or using deductions that should not have been allowed, correct the error by using the deduction amount that should have been used.
Example:
A household reports and verifies an increase in their rent on July 3. The
change is not processed until September 10. Correct the August
and September payments by using the increased rent amount that had been
reported and verified. The caseworker would not change the amount
of the estimated income that had already been anticipated since the income
is not part of the error.
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