792-2          UNDERPAYMENTS

When a family receives a benefit that is smaller than that for which they are actually eligible, an underpayment has occurred.  The Division must promptly make a corrective payment equal to the difference between the amount the family received and the correct amount, except as noted in ATAPAlaska Temporary Assistance Program MSManual Section 792-4 below.

A corrective payment will also be made when it is ordered by:

• A Hearing Authority, as the result of a fair hearing decision; or

• the Director of the Division, as the result of an appeal of a Fair Hearing decision.

The $10 minimum payment limit does not apply to corrective payments if the payment that the household was entitled to originally, but did not receive, exceeded $10.

792-2 A.     DETERMINING THE UNDERPAYMENT AMOUNT

Determination of corrective payments is by the calendar month.  Each month involves a separate determination of cause, and therefore of eligibility, for correction for that month.  Each eligible month's underpayment is calculated separately.   

There are no time limits on correction of underpayments.  Occasionally, an underpayment will be discovered that goes back so many months that the circumstances that must be known in order to calculate the underpayment amount are simply not possible to verify.  If the case worker and the client in cooperation cannot provide concrete evidence of past circumstances to exactly determine the amount of the underpayment for any month, that month cannot be included in the total underpayment amount.

If there is an overpayment in the same case, the underpayment amount is adjusted against the overpayment before recoupment is begun or the corrective payment ordered.  Complete one Claim Determination form ( GEN 95 ) showing both the overpayment and underpayment and submit the Claim Determination to the Claims Specialist.

792-2 B.     EFFECT OF CORRECTIVE PAYMENTS ON ELIGIBILITY

A retroactive corrective payment is not considered as income or as a resource in the month it is received by the client and in the following month. The amount of the corrective payment is disregarded in each of those months, both in determining eligibility and the amount of the grant.

792-2 C.     TO WHOM CORRECTIVE PAYMENTS ARE MADE

Corrective payments can be made only to current recipients.  If an underpayment is discovered in a closed case, the case record should show the underpayment occurred.  In case the client applies later, payment must be made.  Corrective payments must be made to the person who receives the regular benefit.

Note:

Corrective payments ordered by the Director or by the Hearing Authority as a result of a fair hearing will be made as ordered in that decision, even if they do not comply with the requirements of this section.

792-2 D.     TIME LIMITS FOR ORDERING PAYMENT

The corrective payment must be ordered within 10 days of the discovery of underpayment, except when the underpayment amount cannot be determined without additional verification and the agency cannot obtain it within the 10-day period.