PM 23-05-02

A repayment agreement is centrally sent with a demand letter when an overpayment is reported to BOC. Forms used are:

  • Demand Letter Intentional Food Stamp Program Violation (Form 2551)
  • Repayment Agreement Intentional Food Stamp Program Violation (Form 2551A)
  • Demand Letter Inadvertent Household Error (Form 2555)
  • Repayment Agreement Inadvertent Household Error (Form 2555B)
  • Demand Letter Administrative Error (Form 2556)
  • Repayment Agreement Administrative Error (Form 2556A)

The Bureau of Collections makes all repayment arrangements, including negotiating all installment repayment plans for canceled FS cases.

FS units send their repayments to:

Office of Fiscal Services

Cash Management Unit

PO Box 19407

Springfield, IL 62794-9407

Replacing FS Benefits

(FCRC) When replacing voided FS benefits that have had a recoupment deducted, authorize the replacement benefits in the same amount as the issuance that is being replaced (the allotment shown on the Recipient Ledger Inquiry (PF6) (see IPACS).

Change in Overpayment Amount

(FCRC) If an FCRC finds that the overpayment amount has changed, send Change of Overpayment Information (Form 2404C) to the Bureau of Collections, Assistance Recovery Section.

The overpayment claim in ARS (PF10) is changed:

  • if recoupment occurred on a voided Illinois Link issuance and
  • benefits were not replaced.

(BOC) Adjusts ARS. The recoupment amount should not have been credited because the FS unit did not participate. The procedure is delayed at least 60 days to allow for replacement actions to occur. The automated procedure takes place when the benefits were not replaced by a TAR 10.

Example: As of March, Ms. J's claim balance is $235. The balance reflects credit given for a $10 recoupment in January. January benefits were voided because Ms. J moved out of state. The adjustment procedure removes the $10 credited toward her claim. The overpayment balance after adjustment is $245.

Client Questions about Repaying Overpayment

If a client contacts the FCRC about repaying an overpayment:

  1. (FCRC) Refer the question to the Financial Recovery Coordinator (FRC).
  2. (FRC) Forwards the information to BOC.

Payment Made at FCRC

If a cash payment is made at the FCRC:

  1. (FCRC) Complete Payment Transmittal Slip (Form 3021).
    1. Check the "Overpayment - Food Stamps" section.
  2. (FCRC) Send the payment and completed Form 3021 to Office of Fiscal Services.

When an FS unit wants to repay an overpayment by returning Illinois Link benefits:

  1. 1. (FCRC) Complete Form 2404C new textand send it to the Bureau of Collections, Assistance Recovery Section.
  2. (FCRC) Complete Return of Illinois Link Benefits (Form 3660) deleted text.
  3. (FCRC) Send revised textForm 3660 to the Bureau of Food Stamp Accuracy and Quality Control.

Credit Balance

When a client's FS claim has a credit balance, a refund may be due to the client.

  1. (FCRC) Review the account to decide why there is a credit balance. It is possible that a previously reported claim is not recorded on ARS and that payments/recoupments for that claim were posted to a different claim causing the credit balance.
  2. (FCRC) Send Change of Overpayment (Form 2404C) to the Bureau of Collections, Assistance Recovery Section.
  3. (BOC) Approves the refund to the client, if a refund is due.
    1. Transfers the payment to another applicable claim and corrects the accounts receivable file, if no refund is due.