621 RECOUPMENT/REPAYMENT OF ASSISTANCE (FSM)

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An overissuance is the amount of Food Stamp benefits which were incorrectly paid to or on behalf of a recipient.

The difference between what the individual actually received and the amount the individual should have received is the overissuance amount.

This amount includes any benefits paid to a recipient pending the outcome of an administrative appeal, if the individual loses the appeal. All overpayments and overissuances must be repaid in full to the Department of Health and Human (DHHS) regardless of the length of time the overissuance has existed.

To determine the amount of Food Stamp benefits that were overissued, treat the information that caused the error as if it had been reported timely using the actual or maximum (whichever is less) time frames for individual reporting and DHHS action.

When a case has received an overissuance, investigate—and obtain verifications for—the month of discovery and any time benefits were received during the 12-month period before the month of discovery.

Report the overissuance to the Office of Special Investigations (OSI) on Form 440, Food Stamp Claim Referral Form.

Complete Form 429, Food Stamp Claim Referral Form, and forward it to OSI. OSI will initiate and monitor all recovery action. See Section 621.03 Rate and Method of Recoupment.

The cause of an overissuance determines the circumstances for repayment.

Causes for overissuances in the Food Stamp Program are:

• alien sponsor’s error,

• DHHS administrative error,

• inadvertent household error, or

• intentional program violation (IPV).

Exceptions: None of the following can cause an overissuance:

• The household unintentionally neglected to sign the application for Food Stamp benefits.

• The household unintentionally neglected to complete a current work registration form.

An alien sponsor can cause an overissuance by providing incorrect information. A sponsor is someone who completed an affidavit of support to help an alien obtain lawful permanent resident status.

• When the sponsor was at fault for the incorrect information, both the alien and the sponsor are responsible for repaying the overissuance. Establish the claim against the person most likely to repay first. If the sponsor is the first object of the claim but they fail to respond to the demand letter within 30 days of receipt, establish a claim against the alien household.

• When the sponsor provided the incorrect information inadvertently or with good cause, only the alien household is liable for repayment of an overissuance.

A DHHS administrative error is when DHHS caused an overpayment or overissuance by failing to take proper action.

Examples

• DHHS took tardy action on a reported change.

• DHHS computed or issued an inappropriate benefit.

• DHHS issued two or more month’s benefits by mistake.

An inadvertent household error is when a household causes an overissuance through a misunderstanding or an unintended error. It is also considered an inadvertent household error when DHHS cannot prove intentional program violation. See Part 713INTENTIONAL PROGRAM VIOLATIONS.

Examples

• The household unintentionally failed to provide correct or complete information.

• The household unintentionally failed to report changes in household circumstances.

• The household received benefits pending a fair hearing decision, which subsequently denied entitlement.

References: He-W PART 708, RSA 161:10, 7 CFR 273.16 - .18