March 1, 2009
A. An underpayment occurs when the recipient receives less assistance than he is eligible to receive.
B. Counties are required to repay any underpayment to active recipients and those who would be active recipients if the error had not occurred.
C. Counties must promptly reimburse the recipient for all county and state responsible underpayments when:
1. The case continues to be active.
2. The recipient reapplies for assistance and is found to be eligible.
3. The case would have been active if the error had not occurred.
4. The underpayments are not offset by overpayments.
D. The county should not repay a recipient if the individual is responsible for the underpayment.
E. When an overpayment and an underpayment occur during the same period, the difference must be reconciled. (Refer to PART III. RECONCILIATION).
For questions or clarification on any of the policy contained in these manuals, please contact your local county office.