NORTH DAKOTA DEPARTMENT OF HUMAN SERVICES
BISMARCK, NORTH DAKOTA
December 21, 2007

IM 5024

TO:		County Social Service Directors
Economic Assistance Policy Regional Representatives
Economic Assistance Policy Quality Control Reviewers

FROM:	Blaine Nordwall, Director, Economic Assistance Policy

SUBJECT:	Completing Corrective Action 

PROGRAMS:	Food Stamps

EFFECTIVE:	Immediately

RETENTION: 	Until Manualized

SECTIONS 
AFFECTED:	430-05-80-30 – Calculating the Amount of Claims
		430-05-90-20 – Calculating Underpayments
		430-05-67-45 – Change in Reporting Requirements

This IM is being issued to clarify current policy on completing corrective action for change reporting and simplified reporting households and to provide a directive on correcting the reporting requirement when the incorrect reporting requirement is assigned to a case.  

Completing Corrective Action

When completing corrective action on a case, corrective action must be established based on the reporting requirement the household was subject to when the error occurred.  

Change Reporting Households

When completing a claim, actual month’s circumstance must be used for the eligibility item determined to be in error.  If completing a claim for income that was used incorrectly, not reported or reported incorrectly actual income must be used, even if income conversion applies (income paid weekly or biweekly).  If an underpayment would result instead of a claim and the household failed to report or report timely, benefits are not restored. 

When completing an underpayment, actual month’s circumstances must be used for the eligibility item determined to be in error.  If completing an underpayment for income that was used incorrectly actual income must be used, even if income conversion applies (income paid weekly or biweekly).

Simplified Reporting Households

When completing a claim, circumstances that should have been used at initial certification, the six-month report, recertification, or when a change was reported/discovered or should have been reported that required action must be used for the eligibility item determined to be in error, taking into consideration any other changes reported during that time.  If income conversion applies, the corrected converted amount from the initial month, six month report or recertification (not corrected converted income from each month in error) must be used to determine the claim, taking into consideration any other changes reported during that time.  If an underpayment would result instead of a claim and the household failed to report or report timely, benefits are not restored.

When completing an underpayment, circumstances that should have been used at initial certification, the six-month report, recertification, or when a change was reported/discovered or should have been reported that required action must be used for the eligibility item determined to be in error, taking into consideration any other changes reported during that time.  If income conversion applies, the corrected converted amount from the initial month, six month report or recertification (not corrected converted income from each month in error) must be used to determine the underpayment, taking into consideration any other changes reported during that time.

Correcting the Reporting Requirement

When completing corrective action on a case that was assigned the incorrect reporting requirement, the SR indicator will be corrected as follows.  Policy approval is required when correcting the indicator for paid benefit months.

For cases that should have been simplified reporting:

•	If correcting the indicator prior to the date the six-month report is generated in TECS, the indicator will be changed for prior months.

•	If correcting the indicator beyond the date the six-month report should have been generated in TECS, the indicator will not be changed for prior months.  The indicator will be changed for month 7 forward.  

Six-month reports are generated on the 6th to the last working day of month 5.

For cases that should have been change reporting:

•	The indicator will be corrected for all prior months.  

Following are examples of corrective actions including correction of the reporting requirements:

	Examples:

1.	Change reporting FS household started employment in April 07.  The household should have reported the new employment by May 10, 2007.  The county did not become aware of the new employment until October.  The worker is completing corrective action in December.  

Had the household reported correctly, this case would have become simplified reporting starting with June.  The six-month report would have been due in November for December benefits.  

Corrective action must be completed for June through November based on the income that would have been used had the income been reported, taking into consideration any other changes reported during that time.  Corrective action must be completed for December using what should have been used had a six month report been filed in November.  This would include base month income from October and any of the other mandatory reportable changes at six-month report.  The case will then roll until recert unless the household reports a change.

The information/verification necessary to complete the claim (income the household was required to report and mandatory reportable changes at six month report) must be requested using the F814 – Required Verification Notice.  If the household fails to provide the verification within 10 days of the mail date on the F814, the F401 must be sent to close the case.     

The SR indicator will be changed to Y for December forward.  The case must be documented as to why the six-month report indicator was not changed back to June.

NOTE - If the SR indicator is changed back to June, the system will send a six-month report the end of December due in January for February.  This is incorrect and could result in incorrect benefits for February forward.  The system is programmed to look back each month to see if the household has been simplified reporting for the last 5 benefit months.  If it has a six-month report is sent out.  

2.	Change reporting FS household started employment in August 07.  The household should have reported the new employment by September 10, 2007.  The county did not become aware of the new employment until November.  The worker is doing corrective action in December.  

Had the household reported correctly, this case would have become simplified reporting starting with October.  The six-month report will be due in March for April 2008 benefits.  

Corrective action must be completed for October through December based on the income that would have been used had the income been reported, taking into consideration any other changes reported during that time.  The case will then roll until six-month report unless the household reports a change.  

The information/verification necessary to complete the claim (income the household was required to report) must be requested using the F814 – Required Verification Notice.  If the household fails to provide the verification within 10 days of the mail date on the F814, the F401 must be sent to close the case.     

The indicator must be changed back to October so the six-month report is mailed correctly in February.  

3.	Household with earned income applied in September.  The worker incorrectly entered an N for the simplified reporting indicator on CHRS when approving the application for September and October.  In November, the household reports an increase in income.  The worker reacts to the change and decreases the household’s benefit.  In December the worker discovers the incorrect reporting requirement was assigned to the case.  

The indicator must be changed back to September so the six-month report is mailed correctly in February.  

The worker will complete corrective action for November and December based on simplified reporting policy resulting in an underpayment.  The case will then roll with this income until six-month report unless the household reports a change.  

4.	Elderly household with no earned income applies in October and is certified as simplified reporting.  In March the household files a six-month report.  The worker determines the household was assigned the incorrect reporting requirement at the time of application.  The indicator must be change to N for October through March. Actual month circumstance for each month must be used to determine if the household would have been required to report a mandatory reportable change based on change reporting requirements.  If the household would have been required to report a mandatory reportable change, the worker must correct the benefit.

If you have any questions, please contact your Regional Representative.