PM 23-03-02-c

If a case was totally ineligible, for any reason, and child support payment was received and kept by HFS:

  1. Determine the amount, if any, of the child support payments received by HFS for the month(s) the case was totally ineligible. This information is available from:
    • Notice of Receipt of Child Support (Form 1661) in the case record (after the initial Form 1661 is sent to the Family Community Resource Center, a new form is only sent if the amount of support received changes); or
    • the Client Information System (CIS) PF/F6 Key, Recipient Ledger Inquiry, Posting Type 3, Direct Pay (see IPACS II Manual, Chapter 600).

      NOTE: Direct pay information under the PF6/F6 key is only available for the past 15 months. If more information is needed, the Key Information Delivery System (KIDS) also shows payments for the last 36 months made directly to the client from the Clerk of the Circuit Court.

  2. Deduct the Pass Through payment made to the client from the amount of child support received by HFS in the month(s) the overpayment occurred.
    1. Figure this amount by making a Recipient Ledger Inquiry using the PF6/F6 key, Posting Type 1, Warrant (see IPACS II Manual). Pass Through payments are identified by TA 99 and TAR 609.
    2. Deduct Pass Through payments using the column labeled EFF DATE (month the child support payment was received) not the MAIL DATE column. The remainder is the monthly amount of child support to be deducted from the overpayment for the month.
  3. Enter the monthly amount of child support in the column labeled SUPT PYMT (Support Payment) on Form 2404X.
  4. Refer the net overpayment amount to BOC.
  • Example 1: Ms. W receives $509 in TANF cash. Child Support of $175 per month is received as the required support obligation. The client is sent $50 of the $175 payment as a Pass Through payment. The case is found eligible for continued assistance as the remaining $125 does not exceed the $509 Payment Level (the support is not deducted from the cash payment).
  • The FCRC learns the client is working and has unreported income of $450 per month. A 6-month overpayment has occurred.
  • The unreported income of $450 plus the nonexempt child support of $125 are more than the Payment Level of $509 for the months the income was unreported. The case was totally ineligible for aid. Figure the overpayment:
  • 509 Aid Paid
    0 Correct Aid
    509 Overpayment
    125 Nonexempt Support Payment Kept by HFS
    384 Adjusted Overpayment
    X 6 Number of Months
    $2,304 Net Overpayment
  • Ms. W owes $2,304 as her overpayment. Process the overpayment through ACM or send Form 2404 to report this amount to BOC.
  • NOTE: If child support payments had only been received by HFS in 3 of the 6 months, then 2 separate calculations would be needed: 1) deducting the $375 support kept by HFS for the 3 months, 2) not deducting any support for the other 3 months.
  • Example 2: The same facts as Example 1 except that the unreported income is $360.
  • The $360 of unreported income plus the nonexempt child support of $125 ($485) are less than the $509 Payment Level. The case stays eligible for a supplemental TANF payment and HFS keeps the support received as reimbursement of the correct amount of TANF issued.
  • $509 Aid Paid
    -360 Unreported Income
    $149 Correct Aid
  • The support kept by HFS ($125) is less than the correct aid the client received ($149), and no adjustment is made to the overpayment to be recouped.
  • $509 Aid Paid
    -149 Correct Aid
    $360 Overpayment

Pass Through Overpayments

  1. (DCSE) Sends Inter-Office Memorandum (Form 4009) to the FCRC Financial Recovery Coordinator (FRC) to report erroneous Pass Through payments and overpaid Pass Through payments. The memo includes:

    • case name and number,
    • amount of erroneous or overpaid Pass Through, and
    • the month of issuance.
  1. (FCRC) Report erroneous or overpaid Pass Through to BOC, as appropriate.

If central recoupment is occurring because of a previous overpayment:

  1. Add the overpaid or erroneous Pass Through to the previous overpayment when Form 4009 is received.
  2. Complete Form 2404X manually.
  3. Send Form 2404X to the client to notify them of the overpayment.
  4. Use Form 2404C to notify BOC of the change.
    1. Attach a copy of Form 2404X to Form 2404C.

If the client appeals the recoupment:

  1. Contact the FRC if additional information is needed.
  2. (FRC) Gets additional information and verifications from DCSE for use at the pre-hearing and appeal hearing.

Payment to Circuit Clerk

1. Decide if there was an overpayment when a Notice of Receipt of Child Support (Form 3473) is received. Form 3473 shows that a TANF client received child support payments directly from the Clerk of the Circuit Court that were not forwarded to Springfield. See PM 24-05-02-d for policy for a support payment kept by a client.