• DHS fails to verify that a group signed the application.
• the department has documentation that shows the group cannot be located (such as returned mail with no forwarding address).
• the claim amount is $125 or less and the household is not currently participating, unless the overpayment was discovered through a quality-control review.
• an overpayment occurs based on changed circumstances, but the circumstances were reported promptly by the recipient and DHS acted on the reported change in a timely manner. The department must take action on a reported change within 10 days of the report of the change to be considered timely action. (The action taken generally means recalculating benefits and issuing adequate and timely notice of the reduced benefit to the recipient.)

Example 1

Ms. Wright receives TANF. In June, she finds a job and gets her first paycheck. She calls her caseworker June 17, two days after receiving her paycheck. She is paid twice a month and earns $150 per paycheck.  The caseworker issues a notice on June 19 informing Ms. Wright that her TANF benefits will decrease by $47 per month and her FS benefits will be reduced by $58 based on her new earnings. These changes cannot be effective until August 1 because there are not 15 days between the date the notice is issued (June 19) and July 1, when July benefits are issued.   The recipient promptly reported the income change (she reported the earnings by the 10th day of the month following the month she received her first paycheck) and the Department swiftly acted on the information (the notice of reduced benefits was issued within 10 days of receiving the new information). Therefore, no TANF or FS overpayment is charged for June or July, even though benefits in both months were issued based on incorrect earnings information.

 

Example 2

Ms. Lewis is employed and receives TANF and Food Stamps. She was sent a simplified reporting notice at her last review. Ms. Lewis receives a pay raise in June and her total income for July exceeds her reporting threshold. Ms. Lewis calls her caseworker August 3 to report her increased income. The caseworker fails to issue a termination notice for TANF and FS until August 25. Due to the 15-day notice requirement, benefits cannot be reduced until October. No overpayment is charged for either program for June, July and August since these benefits would not have been reduced even if DHS had acted in a timely manner. TANF and FS overpayments are charged for the excess benefits received in September due to the Department's failure to act promptly on the reported change.

Example 1

Ms. Freeman and her two children receive FS. In March, 2005, it is discovered that the group received excess FS benefits because her oldest child had countable earnings.  Ms. Freeman says she did not know that her son's wages were countable. Although the income dates back several years, the group's overpayment should be calculated for the 12-month period from April 2004 to March, 2005, since fraud is not suspected.

 

Example 2

Ms. White and her three children receive TANF. In March, 2005, it is discovered that James, O'Brien, the father of her youngest child, has lived with them for the past two years. A review of Ms. White's records show that she failed to list James O'Brien as a household member on the recertification forms she completed during the two-year period. Since case documentation show that Ms. White misrepresented her household's composition, an overpayment should be calculated for the entire two-year period.

Example 1

Ms. Wonder and her child receive TANF. Ms. Wonder finds a job and receives her first paycheck on June 8. Ms. Wonder does not tell her caseworker until August 5 about the new earnings. Ms. Wonder needed to report her wages by July 10. If she had done so, her case worker had until July 20 to process her change in benefits. Since 15 days notice of adverse action is required, the first month benefits could have been changed was September. Despite Ms. Wonder's late report, the SSR can still issue timely notice for a September change, the first month that benefits could be changed. Therefore, there is no overpayment.

 

Example 2

Mr. Porter receives Food Stamps.  Mr. Porter starts work in March and receives his first pay check on March 27.  Mr. Porter waits until his recertification appointment on July 19 to report his employment, and his wages are used to determine his benefits for the new certification period that begins August 1.  Mr. Porter was expected to report his earnings by April 10.  Had he done so, his case worker had until April 20 to process his income change.  Since 15 days notice of adverse action is required, the first month benefits could be changed is June.  There is no overissuance for March, April, and May. A Food Stamp claim should be established for June and July.

Example 3

Ms. Schwarte receives TANF and Food Stamps. Ms. Schwarte is approved for Maryland unemployment benefits and receives her first check on May 15. She reports her new income at her TANF review on July 19. Since her case worker cannot give 15 days timely notice for August, she adjusts her TANF and Food Stamp benefits for September.  Ms. Schwarte had until June 10 to report her unemployment benefits.  Her case worker had 10 days—until June 20—to process the change and send a 15 day notice of change for August.  There are no overpayments or overissuances for May through July. A TANF and Food Stamp overpayment should be established for August.