607-1          CALCULATING THE CORRECT BENEFIT

An incorrect benefit may be 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 or math error.
   

• The caseworker does not act on a timely report of change within ten days.

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 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 at MS 604-3D, Effective Date of Changes,

Example:  

A household was required to report that their income exceeded the gross income limit by March 10, but they did not report it until June 3.  As a result, benefits were not adjusted until July.  The change should have been effective April 1, so the household was overpaid for April, May, and June.

Note:  

As a result of different reporting requirements under the various public assistance programs, households may be issued an incorrect benefit for one program but not another.  

Example:  

Ellie and her three children receive Temporary Assistance and food stamps.  Ellie started working a part-time job on April 1, but did not report it to her caseworker until June 4.  Under food stamp semi-annual reporting rules, households must report only when their income exceeds the gross income limit for their household size.  There is no food stamp 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.

607-1 A.     CORRECTING INCOME ERRORS

1. Income errors may occur when the household does not report income as required, or when the caseworker does not correctly include reported income.  In these situations, calculate the amount of the corrected benefit by adding the actual income that was not reported by the household or that was not included by the caseworker to the income already used in the budget.  Do not include previously estimated income that was not actually received.  The 20% earned income deduction is not applied to that portion of the earned income the household failed to timely report.
   
   Estimate the monthly income that should have been included following the policy at MS 603-1 when:

• Calculating the correct benefit amount for the current month and all the income has not yet been received; or,

• Attempts to obtain verification of actual income already received have been pursued and are documented as unsuccessful.

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.  

2. Income errors may occur when the caseworker makes a math error or uses the wrong conversion factor while calculating income.  In these situations, determine the correct benefit amount by recalculating the income estimate using the correct math calculation or conversion factor.  

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 food stamps 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.