WAG 23-04-00: Setting up an Overpayment (Cash, SNAP)

PM 23-04-00.

The Bureau of Collections and/or Statewide Program Initiatives staff completes SNAP overpayments of $25 or more and Quality Control (QC) overpayments of any amount.

Within 5 days of identifying and verifying an overpayment:

1. FCRC: Checks the Accounts Receivable System (ARS) and ARS tracking to make sure the overpayment does not include any months reported on a prior claim.
2. FCRC: Refers potential overpayments to:
   1. BOC systematically through IES; or
   2. Manually to BOC via DHS.BOC.Ovrpmt.Referral@illinois.gov; or
   3. To the assigned field consultant.
3. FCRC: Makes a referral to the SNAP Fraud Unit (SFU) if a full investigation is needed by completing a SNAP Fraud Investigation Referral (IL444-5173) and emailing it to DHS.SNAPFraud@illinois.gov.

Overpayment Discrepancy

If the Overpayment Discrepancy pages are flagged in IES, complete the pages as follows: 

Discrepancy Summary Page:

SNAP Error Type	Agency, Inadvertent Household Error (IHE), or Suspected Intentional Program Violation (SIPV).
Discovery date:	Date claim was created
How Discovered:	Select from drop-down menu
Reason for Overpayment	Enter narrative instruction to explain why overpayment happened. Example: Ms. Smith did not report her income from Walmart; or The Agency did not budget Ms. Smith's reported income from Walmart.
Amount Received	Pre-fills
Correct Amount:	Pre-fills
Overpayment Amount:	Amount received - correct amount
From:	Beginning month of overpayment
Through:	Last month of overpayment

Discrepancy Details page:

Responsibility Code:	Three digit numerical code that identifies the FCRC
Cross Match Code:	Not necessary to complete.
Previous Fraud Conviction:	Not necessary
Result of Quality Control Review?:	Select Yes to indicate if the overpayment was identified by a QC review.
False Documentation Description:	Use this field to record documentation about any false documentation the customer submitted. Example: application, Rede, Mid-Point Report (MPR).
IL444-2404X Notice Reason:	Record the reason for the overpayment. This will be printed on the Notice of Overpayment (IL444-2404X) that goes to the customer. Example: You did not report your income from Walmart: or The Agency did not budget your reported income from Walmart.
Dates of Last Application or Redetermination during overpayment:	Enter date of any applications, REDE, or Mid-Point Report completed during the overpayment period.
Government Employment Information:	Select Yes in drop-down if anyone in the household is a government employee.
Employment Information:	Fill in employment information if employment is the reason for the overpayment
Duplicate Case Information: .	Enter case name and case number of duplicate case.
Other Information:	If there is a second adult on the case, list name, SSN and date of birth of the second adult.
Overpayment Claim Information:	Enter the from and through date range of the overpayment, original issuance and correct amount and the difference between the two as the overpayment amount.

Reported Overpayments

Reported overpayments are established as accounts in the Accounts Receivable System (ARS). BOC makes adjustments to ARS using information from Change of Overpayment Information Part I: Case Identification Complete for all Referrals (IL444-2404C). ARS is also centrally updated by actions taken in IES, such as demographic updates and recoupments.

Appeal of Overpayment

When a customer appeals an overpayment decision:

1. Bureau of Administrative Hearing (BHA): Notifies BOC via nightly system generated emails that an overpayment appeal has been filed.
2. BOC: Places a hold on an overpayment within ARS to suspend collection activity, if the appeal is filed timely (within 90 days for SNAP and 60 days for cash overpayment) PM 01-07-03.
3. FCRC: Conducts a pre-hearing review within 7 calendar days of the request for a hearing. The decision may be:
   • FCRC rescinds the action (contact BOC before agreeing to rescind an overpayment); or
   • customer withdraws appeal; or
   • appeal continues.
4. FCRC: Arranges a pre-hearing conference to take place within 10 calendar days of the receipt of the hearing request, if the appeal continues. If the pre-hearing conference does not resolve the issue, a hearing is needed. Once a decision has been reached at the pre-hearing review, pre-hearing conference, or the hearing, action must be taken within 10 days.

• If the FCRC rescinds its action:

• If the customer withdraws the appeal or the FCRC action is affirmed:

• If the overpayment is not confirmed because of a miscalculation of the overpayment BOC:

• If the decision cancels the overpayment BOC: