Alabama Administrative Code › Title 660 - ALABAMA DEPARTMENT OF HUMAN RESOURCES › Chapter 660-2-2 - AID TO DEPENDENT CHILDREN › Section 660-2-2-.13 - Erroneous Payments

Current through Register Vol. 42, No. 9, June 28, 2024
(1) In
			 general, an erroneous payment means an underpayment, overpayment, delayed
			 payment, or a payment for a period of ineligibility. The following definitions
			 are applicable:
(a) A delayed payment is
			 defined as a payment that has been properly authorized but the issue of a check
			 has been improperly delayed. Corrective action will consist of a special
			 payment processed for the period for which the individual or family had accrual
			 rights regardless of current eligibility as soon as possible after
			 identification of the failure to issue the check.
(b) An underpayment is defined as either a
			 payment received by or for an assistance unit for the payment month which is
			 less than the amount for which the assistance unit was eligible or failure to
			 issue a payment for a payment month to an eligible assistance unit. The
			 Department will not correct underpayments resulting from a client's failure to
			 report information or the incorrect/incomplete reporting of information. The
			 Department will not correct other underpayments occurring more than 12 months
			 prior to:
1. The date the county department
			 receives a request for correction from a member of the underpaid unit
			 or
2. The date the county
			 department discovers that a loss to an assistance unit has occurred.
Corrective action will involve either the issuance of a special
				payment or reinstatement of eligibility. The period of the special payment is
				from the first month of error on the 12th month
				prior to (1) or (2) above whichever is later, to the month in which the payment
				is correct.
(c)
			 An overpayment is defined as a situation when an assistance payment received by
			 or for an assistance unit for the payment month exceeds the amount to which the
			 assistance unit was eligible. Recovery of all overpayments will be sought by
			 the Department by methods described in (2) below. Corrective action will depend
			 on the causal reason for the overpayment, the current recipient status of the
			 assistance unit, and whether the erroneous payment is defined as non-fraud or
			 suspected fraud as below:
1. A non-fraud
			 overpayment is defined as an overpayment due to continued or unreduced benefits
			 when a request for a fair hearing is submitted during the advance notice
			 period; or due to administrative (or agency) error caused by an active or
			 passive error on the part of a Departmental agent although the client made full
			 disclosure of facts; or due to a payment during the advance notice period to
			 which the assistance unit is entitled but not eligible; or due to client error
			 when the applicant/recipient fails to disclose facts regarding his situation,
			 but there is no demonstrable intent to defraud.
2. A suspected fraud overpayment occurs when
			 a recipient has received an overpayment occasioned or caused by his willful
			 withholding of information concerning any household circumstances which would
			 affect the amount of payment. To sustain an allegation of suspected fraud, the
			 following elements must be present: documented evidence to substantiate the
			 facts upon which the overpayment has been determined, an actual overpayment,
			 and evidence that the individual intentionally committed the action or inaction
			 which has prompted the overpayment.