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

PM 23-04-00.

(BOC)

NOTE: Field Consultants complete referrals for SNAP overpayments of $125 or less.

Within 5 days of identifying and verifying an overpayment:

1. (FCRC) Check ARS and tracking to make sure the overpayment does not include any months reported on a prior claim.
2. (FCRC) Use ACM to complete Form 2404, Referral of Overpayment, and Form 2404X, Notice of Overpayment.

   NOTE: All overpayments must be processed through ACM except: 

   • overpayments with more than 72 cash payment and/or SNAP entries on the calculation sheets,
   • overpayments with overlapping claim periods,
   • duplicate check overpayments, and
   • additional overpayment that are continuations of previously reported overpayments.

     Complete only one Form 2404 to cover the entire overpayment period even if the overpayment occurred over intermittent months and/or for different reasons unless part of the overpayment is IHE and another part AE. 

   1. Use Form 2404 to report:
      • a cash overpayment when an initial SNAP overpayment has already been reported and the cash overpayment is later discovered. This is the initial referral for the cash overpayment; or
      • a SNAP overpayment when an initial cash overpayment has already been reported and the SNAP overpayment is later discovered. This is the initial referral for the SNAP overpayment.
   2. Enter the name and address of the employer and the monthly income on Form 2404 when the overpayment was because of employment income.
3. (FCRC) Complete Form 2404X. Form 2404X must always be completed with Form 2404. Use simple and clear language without abbreviations and form numbers, so the client understands the reason for the overpayment.

   See WAG 22-02-01-b for overpayments caused by receiving duplicate checks. 

   See WAG 26-03-02-a and WAG 26-03-03-a for how to complete Form 2404 and Form 2404X.

   NOTE: Do not send a handwritten Form 2404X to the client for overpayments reported through ACM. The Central Office generates the notice. 

4. (FCRC) Process the overpayment through ACM or send Form 2404 and Form 2404X to the supervisor or FRC designated by the Family Community Resource Center Administrator.
5. (FRC/Supervisor) Reviews completed Form 2404 and Form 2404X for correctness.
   1. Returns Form 2404 to the caseworker if:
      • the overpayment period is not clearly shown,
      • Form 2404X is not attached to Form 2404,
      • the amount of the total or the individual overpayments shown on Form 2404 and Form 2404X do not match,
      • the case ID information is incomplete,
      • the entry on ARS shows a difference in the calculations, or
      • the message to the client on Form 2404X is not clear.
6. (FRC/Supervisor) Routes the completed Form 2404 and Form 2404X to the staff assigned for data entry through Automated Case Management (ACM). The LOA is responsible for assigning the data entry function.
7. (Data entry staff) Returns Form 2404 and Form 2404X to the caseworker after entry.
8. (FCRC) File Form 2404 and Form 2404X in the case record.

Reported overpayments are established as accounts in Accounts Receivable System (ARS). BOC makes adjustments to ARS using information from Form 2404C. ARS is also centrally updated by actions taken on the Client Information System (CIS).

(CO) Generates within 2 workdays, for cases processed through ACM:

• Form 2404XAG, Notice of Overpayment-Grant, and/or
• Form 2404XAF, Notice of Overpayment-SNAP, and
• Form 2404XA, Client Rights.

Canceled Case Not Referred to BOI

1. (FCRC) Use Form 2755, Investigation Referral, to report the overpayment to BOI.
2. (BOI) Investigates the overpayment case.
3. (BOI) Notifies the former client of the overpayment using Form 2404, Form 2404C, and Form 2404X.
   1. Distributes Form 2404X:
      • original to former client,
      • copy to BOC, Field Recovery Unit, and
      • copy to FCRC for case record.
   2. Distributes Form 2404 or Form 2404C:
      • copy to BOC, Field Recovery Unit, and
      • copy to FCRC for case record.

Overpayments Not Reported Through ACM

1. (FCRC) Complete manual Form 2404 or 2404C and Form 2404X.
2. (FCRC) Distribute Form 2404 or 2404C:
   • original to BOC, and
   • copy in case record.
3. (FCRC) Distribute Form 2404X:
   • original to client to notify of the change,
   • copy to BOC, and
   • copy in case record.

Additional Overpayments

Additional overpayments are added to the original overpayment, if the additional overpayment is an extension of a previously reported overpayment:

1. (FCRC) Use Form 2404C to report the change.

   NOTE: If the additional overpayment was caused by waiting for the outcome of a hearing, include this information. 

   See WAG 26-03-04-a for how to complete Form 2404C. 

   1. Complete Form 2404X to notify the client of the change. Form 2404X must include all the months in the claim period that are included on Form 2404C.
2. (FCRC) Distribute Form 2404X:
   • original to client to notify of the change,
   • copy to BOC, and
   • copy in case record.
3. (FCRC) Send Form 2404C to BOC. 

   NOTE: Form 2404C cannot be processed by the FCRC through ACM. Overpayments reported on Form 2404C must be sent to BOC and Form 2404X must be locally prepared and sent to the client.

If the additional overpayment is not an extension of a previously reported overpayment:

1. (FCRC) Complete Form 2404 and Form 2404X.
2. (FCRC) Process through ACM.
3. (CO) Generates client notice.
4. (FCRC) For AABD and GA, increase the amount in Item 91 Code 743 on Form 552 by the amount of the additional overpayment, once the additional overpayment is reported.

If additional non-consecutive months of overpayment are discovered and the overpayment is from the same source as a previously reported overpayment:

1. (FCRC) Use Form 2404 and Form 2404X to report the additional overpayment to BOC.

Crossmatch Overpayments

Whenever an overpayment is discovered as the result of an Income and Eligibility Verification System (IEVS) crossmatch:

1. (FCRC) Enter the appropriate Match Code in the "Crossmatch Code" section of Form 2404 or Form 2404C:

• State Wage (ICL Code "C") C__
  Unemployment Insurance (ICL Code "U") U__
  SSA Benefits (BENDEX) BDX
  SSI Benefits (SDX) SDX

NOTE: Enter BDX when the overpayment was identified on a BENDEX Field Report or through the Central SSA budgeting process. Enter SDX when the overpayment was identified through the central SSI budgeting process.

For special crossmatches such as the "Unearned Income Match", the Match code is shown on the Data Exchange Match Sheet or Special Review Guidelines.

Appeal of Overpayment

When a client appeals an overpayment decision:

1. (FCRC) Place a hold on an overpayment processed through ACM by accessing ACM Screen "Form 2404/2404X Menu".
   1. Enter Option 2 - "Hold For Tracking".

      NOTE: Do not send Form 2404C and Form 2404X to BOC for additional overpayments. 

2. (FCRC) Conduct a pre-hearing review within 7 calendar days of the request for a hearing. The decision may be:
   • FCRC rescinds the action,
   • client withdraws appeal, or
   • appeal continues.
3. (FCRC) Arrange 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:

1. (FCRC)  Notify the client and have them sign Form 65, Request to Withdraw Appeal.
2. (FCRC) Send Form 2404C to BOC, if the overpayment was processed through ACM, requesting the overpayment be canceled. Do not send the form to BOC if the overpayment did not go through ACM.

If the client withdraws the appeal or the FCRC action is affirmed:

1. (FCRC) Release the overpayment, if it was processed through ACM, by accessing ACM screen "Form 2404/2404X Menu".
   1. Enter Option 3 "Release From Tracking".
2. (FCRC) Submit the Form 2404C that was held, for overpayments not processed through ACM, to BOC.
   1. Send a copy of Form 2404X to BOC.

If the FCRC action is not confirmed because of a mistake in figuring the overpayment:

1. (FCRC) Refigure the overpayment.
2. (FCRC) Complete Form 2404C and Form 2404X with the revised overpayment.
3. (FCRC) Send the client Form 2404X.
4. (FCRC) Hold Form 2404C for 10 days.
5. (FCRC) Send Form 2404C and Form 2404X to BOC, if the client does not appeal the revised overpayment within 10 days, to:
   • revise the overpayment amount, and
   • request the claim be released from tracking.

If the decision cancels the overpayment:

1. (FCRC) Send Form 2404C to BOC, if the overpayment was processed through ACM, requesting the overpayment be canceled. Do not send the form to BOC if the overpayment had not been reported through ACM.