Recoupments 400-19-130-25

(Revised 4/1/2012 ML #3309)

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IM 5250

 

 

(N.D.A.C. 75-02-01.2-71(6))

 

The TANF Eligibility Worker must promptly take all reasonable and practical steps to recoup all overpayments. "Promptly" means that action to recoup shall be initiated in the month following the month in which the overpayment is authorized, provided an adequate notice has been provided. No distinction is made between willful and unwillful withholding of, or failure to report information that affects eligibility or the amount of the TANF benefit. Overpayments are recouped from households which include a responsible member.

Note: If the household has an existing overpayment, benefits from the initial TANF grant and each subsequent month’s grant will be reduced until the overpayment is fully recovered.

 

Any overpayment, whether resulting from an error made by the household, administrative error, fraud, or from assistance granted pending a fair hearing decision subsequently made in favor of the county social service office is subject to recovery regardless of when the overpayment occurred.

Note: Only overpayments occurring under North Dakota programs (AFDC or TANF) can be recouped. Requests from other states for recoupment cannot be honored.

 

Recoupments of regular TANF, Transition Assistance, Kinship Care and Diversion overpayments will be processed as follows:

1. All regular TANF, Transition Assistance and Special Items of Need are considered assistance. Therefore, TANF overpayments can be recouped from other TANF Benefits, including Transition Assistance, Kinship Care, $45 Out of Home Allowance, Special Items of Need and JOBS Supportive Services other than Transportation.

Note: Special Items of Need include Child Restraint Seat Reimbursement, Essential Services Reimbursement, GED/HS Diploma Incentive, Health Insurance Reimbursement, Health Tracks Reimbursement, Special Project Incentives, Special Projects Work Subsidies, and Unforeseen Circumstances.

2. JOBS Supportive Services are considered assistance with the exception of the Transportation allowance for an individual who is employed.

1. Transportation Allowances – TANF Policy does not allow overpayments for Transportation Allowances to be established. Therefore, recoupments are not made for Transportation.

2. All other JOBS Supportive Services overpayments can be recouped from other TANF Benefits, including Transition Assistance, Kinship Care, $45 Out of Home Allowance, Special Items of Need, and JOBS Supportive Services other than Transportation.

Note #1: JOBS Supportive Services include Care of an Incapacitated HH Member, Job Readiness, License, Certification & Exam Fees, Relocation Assistance, Tools for Employment, Tuition Assistance, Relocation Assistance, etc.

Note #2: When payment of any of these JOBS Supportive Services is made through the Vendor Payment Process, a manual overpayment must be established under the Type Code of TANF.

3. TANF Kinship Care is considered assistance. Therefore, all Kinship Care overpayments can be recouped from other TANF Benefits, including Transition Assistance, Kinship Care, $45 Out of Home Allowance, Special Items of Need and JOBS Supportive Services other than Transportation.

Note #1: Kinship Care includes the Kinship Care Grant, Child Care Employment, Child Care Training/Work Search, Clothing Allowance, Emergency Need, Legal Services Reimbursement, School Supplies and Activities, and Transportation Reimbursement.

Note #2: When a payment of any of these Kinship Care Supportive Services is made through the Vendor Payment Process, a manual overpayment must be established under the Type Code of TANF.

4. Diversion benefits are not considered assistance.

1. Transportation Allowances under Diversion – TANF Policy does not allow overpayments for Transportation Allowances to be established. Therefore, recoupments are not made for Transportation.

2. Diversion benefits can only be recouped from Diversion benefits.

Note: Diversion benefits include Emergency Household Needs, Child Restraint Seat Reimbursement, Essential Services Reimbursement, GED/HS Diploma Incentive, Health Insurance Reimbursement, Health Tracks Reimbursement, Job Related Expenses, and Unforeseen Circumstances.

Methods of recovering overpayments from participants are:

1. Automatic recoupment from the TANF grant; or

2. Voluntary repayment agreement – an overpayment repayment agreement is a payment plan the client and the county agency agree to as a method of repaying an overpayment; or

3. Criminal restitution.

The amount recouped is based on a either a monthly amount or percentage of the Total TANF Standard of Need (which includes the $45 OH Allowance and Special Items of Need). Regardless of the method chosen, the amount recouped cannot be less than:

• 10% for agency and client (non-fraud) related errors; or
• 20% for intentional program violations (fraud).

 

Administrative or Client Non-Fraud

Recovery of all administrative or client non-fraud overpayments is accomplished by reducing the TANF benefit in an amount equal to 10% percent of the Total TANF Standard of Need (which includes the $45 OH allowance and Special Items of Need) for the appropriate household size. A recipient may repay the amount of overpayment at a rate greater than the 10% standard as long as the decision to do so is voluntary and a signed agreement is in the case file.

 

Fraud

Recovery of all overpayments resulting from fraud is accomplished by reducing the TANF benefit in an amount equal to 20% of the Total TANF Standard of Need (which includes the $45 OH allowance and Special Items of Need) for the appropriate household size. A recipient may repay the amount of overpayment at a rate greater than the 20% standard as long as the decision to do so is voluntary and a signed agreement is in the case file.

• If the court has ordered an amount of recovery, either more or less than the amount identified above, the amount ordered by the court will be the only amount recovered.

 

Individuals responsible for repayment are all caretakers age 18 or older as well as a minor parent under age 18 who were members of the household at the time the overpayment occurred. Overpayments follow the responsible member to a new case if the member was part of the overpaid benefit received in another case at the time the overpayment occurred. All responsible individuals remain equally responsible for the overpayment.

 

A complete record of the overpayment, the plan for recovery, recoveries made, and any outstanding balance will be included in the automated computer system case file.

 

A regular or supplemental benefit payment, defined as a payment issued in the month for the month, cannot totally offset an overpayment.  A regular or supplemental benefit payment may be reduced only by the percentage of recoupment (usually 10% or 20%, but may differ pursuant to court order) or a set dollar amount as specified by court order.  However, an underpayment, defined as a payment for a benefit month issued at any time after the benefit month, can totally offset an overpayment.