If there is a SNAP underpayment, follow the directions below:

  1.  (FCRC) Decide the fiscal month(s) affected. The month is determined by how the error was made:
    • If an eligible application was denied in error, the first underpayment month is the fiscal month of application. If a timely application for an SNAP REDE was filed, the first underpayment month is the month after the expiration of the approval period.
    • If a decision on an eligible application was delayed, consider the cause. If the delay was caused by the FCRC, the underpayment covers the time the application was pending. There is no underpayment if the delay was caused by the SNAP unit.
    • If benefits were stopped in error, the first underpayment month is the first month benefits were not received.
  2. (FCRC) Decide if the SNAP unit was eligible for each month there was an underpayment.
    1. Ask the SNAP unit to provide more information if there is not enough information to make an eligibility decision.
    2. Consider the SNAP unit ineligible for more SNAP benefits for any month they do not provide the information needed to decide eligibility.
  3. revise text(FCRC) Figure the underpayment for the first month and each month until the error was corrected or the SNAP unit became ineligible.  If the underpayment was for a first month of approval and that month has ended, follow SNAP application approval requirements.  Do not issue the first month of an approval as Past Month Benefits (see WAG 25-08-04). If the effective month has not ended, use TA 56 Def 7 TAR 11 to issue the underpayment (see WAG 25-07-08-b).

    NOTE: If figuring an underpayment for a period when the fiscal month shifted, apply the gap/overlap adjustment procedures (see WAG 18-06-01-b).

    1. Use the automated calculation of SNAP overpayment/underpayment to decide the amount of the underpayment (see WAG 25-02-10-b). Do not include any months that are before the 12-month time limit.
    2. For an SNAP unit with a person disqualified for an IPV that is having benefits restored, the underpayment is the difference between what the SNAP unit would have received with the person and what was actually received. 
  4. revised textWhen there has been an underpayment and the SNAP unit's composition has changed:
    1. Repay the SNAP unit containing the majority of members of the original SNAP unit.
    2. Repay the SNAP unit with the person who was the SNAP payee for the original SNAP unit, if the SNAP unit containing the majority of members cannot be found or determined.
  5. add new text(FCRC) Prior to authorizing Past Month benefits, review the Accounts Receivable (ARS) to determine if a current SNAP claim with an outstanding balance exists.
  6. add new text(FCRC) If no SNAP claim with an outstanding balance is found, authorize a mercury issuance via IPACS for all months except a first month of approval using TA 56 Definer 7 TAR 20. Complete a separate transaction for each month of the underpayment. 
    1. On Form 514 in ACM, record the effective month and year for the underpayment, the reason for the underpayment, and how the amount to be issued was determined. 
    2. (System) Sends a letter to the client (Form 4074) when the payment is processed. (See Mobius Report # 84505753 for a copy of the central notice (Form 4074) that was sent). 
  7. add new text(FCRC) If a SNAP claim is found with an outstanding balance, do not issue past month's benefits at the FCRC.  Complete Request to Apply Past Month SNAP Benefits to Unpaid Claim Balance (Form 1992) for all months except a first month of approval. Fax Form 1992 to the Bureau of SNAP Integrity (BSNAPI) at (217) 557-5345.
  8. revise text(BSNAPI) A SNAP claim with an outstanding balance will be offset by any underissuance for a past month. 
    1. A Mercury payment of any remaining underpayment will be authorized by BSNAPI.
    2. The BSNAPI sends Form 4074 notice to customer when an offset occurs.
  9. add new text(System) Generates Mobius Report #8450575-04, Food Stamp Past Benefits For Mail Date. This report verifies the amount of the Past Month benefit(s) issued and the effective month(s) of the issuance. 

Request for a Hearing

If the Family Community Resource Center decides the SNAP unit was underpaid, but the SNAP unit asks for a hearing because it believes the amount is incorrect:

  1. (FCRC) Process the underpayment amount as figured by the FCRC.
  2. revise text(FCRC) Follow the hearing decision to correct the underpayment. (see WAG 01-07-12-c

NOTE: When the SNAP unit asks for a hearing because the FCRC does not believe there is an underpayment, take no action to pay until a hearing decision favorable to the SNAP unit is received.