629.01 Determine the Corrective Payment SR 94-04, 04/94 (AAM-A)

Use the following steps to determine the amount of the corrective payments:

1. Treat the information that caused the error as if it had been reported within time frames, using the actual or maximum time frames (whichever is less) for reporting and DFA action.

2. The underpayment begins with the:

- first eligible payroll period if the error is a result of information submitted for the initial eligibility determination, or

- first payroll period that could have been affected using the actual or maximum time frames if the error resulted from a change.

3. The underpayment ends:

- when a correct grant has been issued, if the changed information is still current, or

- when the information is no longer current at the first payroll period after applying the actual or maximum time frames for reporting, DFA action, and advance notice period.

4. The difference between what the individual actually received and what the individual should have received is the corrective payment amount.

5. Reduce the corrective payment amount by any outstanding overpayments.

6. Issue the corrective payment:

- for underpayments over $5.00 (do not issue a corrective payment for $5.00 or less),

- regardless of the length of time the underpayment has been in existence,

- to open financial assistance cases as a positive benefit adjustment, or to closed financial assistance cases by a supplemental check,

- do not issue a corrective payment to deceased recipients.

7. Complete Form 205, Notice of Underpayment or Overpayment, to notify the individual of the amount and circumstances of a corrective payment.