Obtaining Verification of Unreported Information 400-19-130-15

(Revised 11/1/19 ML #3562)

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In instances where the household has failed to provide information that is necessary to determine eligibility, the following process may be used:

  1. When unreported information is received, regardless of the source, the household must be sent notification requesting verification of the questionable information.  

Note: Requested verification may include, but is not limited to, members of the household, place of residence, when income started and ended, whether the income continues, the owner of the asset, the current value of the asset or if the information is in error.

 

If the household fails to respond to the appropriate notice within 30 days, an advance (10-day) notice must be sent to the household advising the household their case will be closed. The verification process must continue and the TANF Eligibility Worker must contact the source to verify the information.

  1. If the verification cannot be obtained from the household, send a letter to the source requesting the verification and include a Release of Information.

Note: Release of Information forms include SFN 970, Multi-Agency Authorization to Disclose Information, SFN 1059, Authorization to Disclose Information. A Release of Information is also included on the SFN 405, Application for Assistance, SFN 719, TANF Request for Benefits, and the Statement of Facts.

  1. If the information was revealed by IEVS and verification from the source cannot be obtained:

Income:

  1. For earned income, use the quarterly wage match and divide that figure by three to determine the monthly amount of income to use.
  2. For unearned income, divide that figure by the number of months in the ‘Reported Period’ of the IEVS alert to determine the monthly amount of income to use.

 

Assets:

  1. If the total of the unreported and reported assets are less than the TANF asset limit, no further action is required.
  2. If the total of the unreported and reported assets are more than the TANF asset limit, the assets must be counted for each month of the ‘Reported Period’ of the IEVS alert, which will result in a complete overpayment for each month.

 

  1. If the income information was revealed by PARIS and verification from the source cannot be obtained:
    1. For earned and unearned income:
      1. If the monthly amount of the benefit is listed in the alert, use that amount.
      1. If the monthly amount of the benefit is not listed in the alert, a monthly amount will need to be determined, by dividing the amount by the number of months the payment represents.

Once verification of the unreported income and/or assets is received, or the calculation completed as indicated in #3 or #4 above, the case must be reworked for the affected month(s) and overpayments established.  

Note: The process of determining monthly income or assets defined in #3 or #4 above can only be used when the source is IEVS or PARIS.

 

If a client does not cooperate by providing actual information or the verification cannot be obtained through other sources, the TANF Eligibility Worker must use the best estimate or the best information available to determine the amount of the incorrect payment.

 

An overpayment is a benefit which a household received that exceeds the amount for which they are eligible.  The TANF Eligibility Worker must promptly take all reasonable and practical steps to correct all overpayments.     

Note: Anytime an overpayment is discovered, a determination must be made whether or not to pursue an Intentional Program Violation. (See Section 400-19-137, Intentional Program Violation (IPV).)

 

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.

 

If the overpayment is a result of unreported earned income or earnings that were not reported timely, the individual loses all earned income disregards when reprocessing benefit months affected by the unreported income. The TANF Eligibility Worker must select the ‘Apply TANF Loss of Disregard’ indicator on the Income Window in the automated computer system to apply the loss of disregards.

Note: The earned income disregards consist of the 27% (or $180 whichever is greater) deduction, the time-limited percentage (TLP) deduction, and all job-related expenses (e.g. child care).

 

With the exception of JOBS Transportation, overpayments must be established for all JOBS Supportive Services or Special Items of Need.

 

Once the benefit has been recalculated and authorized, the TANF Eligibility Worker must create the Recoupment Plan by:

  1. Entering the appropriate ‘Error Code’;
  2. Selecting the Recoupment Method (‘Monthly Amount’ or ‘Percent’);
  3. Authorizing the Recoupment Plan; and
  4. Sending the Notification of Overpayment notice.