1. (a) For adult category and financial assistance to needy families (FANF) financial assistance, the rate and method of recoupment of overpayments, as defined in He-W 601.06, shall be the same, except where otherwise specified.
2. (b) Differences in benefit amounts or eligibility that result from using current information for a prior period shall not be considered an overpayment.
3. (c) For overpaid residential care facility or community residence cases, the method and amount of recoupment shall be determined in consultation with the department’s division of long term supports and services.
4. (d) When a FANF financial assistance recipient receives direct child support or spousal support, no overpayment shall occur as long as the support income is used in the calculation of eligibility.
5. (e) The overpayment period shall begin with the first payroll period that was affected, using the actual or maximum time frames for individual reporting, department action, and advance notice period, when applicable.
6. (f) When both an overpayment and an underpayment exist for the same case, one shall be offset by the other to arrive at a reduced recoupment or corrective payment amount.
7. (g) All overpayments shall be recovered at the same rate, except where otherwise noted.

8. (h) The rate of recovery shall be computed in the following manner:

   1. (1) Pursuant to (n) below, determine a rate of:

      1. a. Ten percent of the assistance group's payment standard; or
      2. b. The nearest whole dollar to 10% of the assistance group’s payment standard to equalize issuance of semi-monthly payments, pursuant to He-W 670.04, when 10% does not allow equal semi-monthly payments;
   2. (2) The result of (1) above shall be the maximum monthly amount recouped from the assistance group;
   3. (3) The amount shall be rounded as described in He-W 670.03(a)(3) in order to equalize payments for the period; and

   4. (4) Changes in the payment standard shall require:

      1. a. A recalculation of the recoupment rate and the repayment period; and
      2. b. Notice to the recipient.
9. (i) The recoupment amount shall not reduce the amount of the assistance payment to less than $0.00.
10. (j) A written repayment agreement shall be completed by the individual whenever the individual chooses to repay an overpayment by direct payment in lieu of, or in addition to, a grant reduction.

11. (k) The repayment agreement shall be considered complete when the following is provided:

    1. (1) The individual’s name;
    2. (2) The period of overpayment;
    3. (3) The amount of the overpayment;
    4. (4) An indication of full or partial repayment;
    5. (5) The amount and frequency of payments;
    6. (6) The individual’s signature; and
    7. (7) The date the individual signed the agreement.
12. (l) The terms of a direct repayment shall be renegotiated at any time by completion of a new repayment agreement.
13. (m) Changes to an existing recoupment agreement shall require an advance notice period when the change results in a new overpayment added to the original overpayment.
14. (n) If the FANF casehead, as defined in He-W 601.02, has been disqualified due to an intentional program violation pursuant to He-W 693.02, the rate described in (h)(1) above shall be $10 per month until the disqualification ends.

Source. (See Revision Note #1 at Chapter Heading He-W 600) #5171, eff 6-26-91; ss by #6531, INTERIM, eff 6-27-97, EXPIRES: 10-25-97; ss by #6614, eff 10-24-97; amd by #6826, eff 8-3-98; amd by #6896, eff 12-1-98; amd by #8452, eff 10-22-05; amd by #8684, eff 7-21-06; ss by #10471, eff 11-26-13; ss by #13756, eff 9-27-23