Underpayments 400-28-150-10

(Revised 10/1/11 ML #3278)

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An underpayment is a correction to benefits paid a household who was originally paid less than they were eligible to receive. The eligibility worker shall take prompt action to authorize underpayments to current caretakers or to caretakers who would have been eligible if the error causing the underpayment had not occurred.

 

Underpayments must be established based on the date discovered and whether or not the household is entitled to additional benefits. To determine if there is an underpayment, the eligibility worker must complete a budget using the Excel Spreadsheet or a hand budget before entering information into the payment system.

 

If the eligibility worker has made an administrative error or discovers a caretaker error resulting in an underpayment, process the underpayment in the child care computer system and send appropriate notification.

 

If the county social service office receives notification from the Administrative Law Judge or a court of law of a favorable decision on behalf of the client, underpayments must be established, if applicable, based on the directive included in the favorable decision.

 

If an underpayment would result instead of an overpayment because the household failed to report or failed to report timely, benefits are not restored and the underpayment is not made.