Households that fail to report changes timely are not entitled to underpayment or supplemented benefits. When a household fails to report a change Information that is different from what is currently used to determine eligibility and/or benefits. resulting in an underpayment, the only required actions are to correct the ongoing case A case is ongoing after the application or review has been processed., narrate, and send appropriate notices.

If the eligibility worker establishes a household-caused underpayment error, the eligibility worker does not adjust the review Filing a signed Application for Review via paper review form or through the self-service portal of the eligibility system for SNAP eligibility with the human service zone to determine continuing eligibility and establish a new review period. month, but instead updates the case for all months after the review months and documents in narratives.

Benefits are restored for an underpayment if the cause of the underpayment meets one of the following:

1. The loss was caused by the agency (including agency-caused error).

2. An administrative disqualification for intentional program violation is reversed; or,

3. The federal regulations specifically state that a household is entitled to an underpayment for lost benefits.

    

When the initial allotment The total value of SNAP benefits a household is authorized to receive. is issued untimely, but within 60 days of application Filing a signed Application for Assistance via paper application or through the self-service portal of the eligibility system to establish eligibility and assign a review period., it can’t be reduced to offset an existing overpayment SNAP benefits received by a household which exceeds the amount for which that household was eligible..

If an overpayment claim has not yet been established and there is also an underpayment that needs to be authorized, both actions must be taken. If there is an open overpayment claim for months prior to the underpayment month, the entire underpayment is applied to the oldest outstanding claim up to the total amount needed to satisfy the overpayment claim.

If a household is entitled to a supplement and there is an open overpayment claim for months prior to the underpayment month, the amount recouped will be $10.00 or 10% of the supplement, whichever is greater, up to the outstanding overpayment amount. Households determined to have committed an IPV must have an allotment reduction of $20.00 or 20% whichever is greater.

Benefits must be restored if the loss occurred no more than 12 months from the most recent of the following events:

1. The date the household, another person or agency notifies the Human Service Zone (HSZ) of the possible loss to that specific household. Notification to the HSZ can be oral or written.

2. The date the HSZ is notified or otherwise discovers that a loss to a specific household has occurred.

3. Benefits were found by any judicial action to have been wrongfully withheld. If the judicial action is the first action the participant A person who is eligible for benefits under SNAP, even if that person is not currently receiving benefits because the amount is too low, or the person is under a sanction or disqualification. took to receive restored benefits, they shall be restored for no more than 12 months from the date the court action was initiated. If the judicial action is a review of an action taken by the HSZ, benefits are restored for a period of no more than 12 months from whichever of the following dates occurred first:

   1. The date the HSZ receives the request for restoration; or,

   2. If no request is received, the date the fair hearing action was initiated.

       

A household is entitled to underpayments even if it is not currently receiving SNAP benefits. Restore benefits only for those months that the household actually received SNAP benefits not to exceed 12 months.

Exception: Benefits may be issued for months a household was not actually receiving SNAP benefits if the household was incorrectly denied.

 

If, due to an agency-caused error, an eligible Having met the qualifications to receive a SNAP benefit by meeting the specified nonfinancial and financial requirements of eligibility. household's application was denied or the eligibility worker delayed benefits to an eligible household, the month of the application is considered the first month the loss occurred. The eligibility worker must provide benefits retroactive to the date of application.

If an eligible household made timely application for review and was not provided an opportunity to participate in the month following the expiration of its certification period A period of time a household is approved to participate in SNAP., the month following the end of the certification period is considered the first month the loss occurred.

If a household's benefits were erroneously terminated, the first month that benefits were not received as a result of the erroneous action is considered the month the loss initially occurred. After determining the date the loss initially occurred, the loss is calculated for each month after the initial month Any month in which a new application is required. until either:

1. The first month the error is corrected.

2. The first month the household is found ineligible Not qualified to receive benefits because of not meeting one or more of the specified nonfinancial or financial requirements of eligibility.; or,

3. The first month the household reapplied.

Occasionally the household composition changes from the time the error occurred and the time the underpayment is issued, (e.g., household splits into two different SNAP cases). When this occurs, the underpayment is calculated using the facts of the household situation and composition at the time the underpayment occurred. Benefits are restored to the SNAP household containing the majority of the original household members at the time the error occurred.

Note:If the household with the majority of members cannot be identified, located, or determined, benefits are restored to the household containing the Primary Individual at the time the error occurred. This would also occur when the number of original household members is unchanged.

 

If an Intentional Program Violation (IPV) An individual(s) determined to have intentionally: 1. Made a false or misleading statement, or misrepresented, concealed, or withheld facts. 2. Committed any act that constitutes a violation of the Food and Nutrition Act, SNAP Regulations, or any state statute relating to the use, presentation, transfer, acquisition, receipt, or possession of SNAP benefits. is reversed, the household is entitled to lost benefits during the months the individual was disqualified, not to exceed 12 months before the date of HSZ notification. The amount underpaid is determined by comparing the benefit the household received with the benefit the household would have received had the disqualified member been eligible for each month the individual was disqualified, not to exceed 12-month limit.

Household participation in an administrative disqualification hearing in which the household contests the HSZ's determination of the IPV is considered notification that the household is requesting an underpayment.

For both household and agency caused errors, the first month of overpayment/underpayment is determined according to the household’s reporting requirements.

If an underpayment occurs and the household is a simplified reporter, the amount of the underpayment is based on the corrected circumstances that should have been used at certification, recertification, or when a change was reported/discovered that required action.

If the household does not agree with the amount or any other action taken by the eligibility worker to pay lost benefits, the household may request a fair hearing within 90 days of the date they are notified they are entitled to the benefits.

When a fair hearing is requested before or during the period the lost benefits are being issued, the household continues to receive the benefit amount pending the hearing decision. If the fair hearing decision is favorable to the household, the eligibility worker will restore benefits in accordance with that decision.

The household may request a fair hearing if they believe they have been underpaid benefits, but the eligibility worker disagrees. The eligibility worker must document Used as a noun, as in documentary evidence indicates a written record of the circumstances of an event or fact. Used as a verb, indicates the act of entering the case file actual proof or statement of proof that the contents of the record are accurate. in narrative requests for underpayments, including justification for their decision and decision date. Households must be notified of the eligibility worker’s decision.

If a fair hearing is ruled in the agency’s favor and the household continued to received benefits, those benefits will be considered an overpayment and must be repaid.