1. (1) An overpayment may occur when:

   1. (a) a client or provider receives CC for which the client was not eligible;
   2. (b) a provider receives a CC payment but does not provide care for at least eight hours during the initial benefit month of CC;
   3. (c) a provider receives a CC payment when a child attends less than eight hours in a month;
   4. (d) a provider receives a greater CC payment amount than the client is charged for the month of service; or
   5. (e) a provider applies CC to nonallowable costs pursuant to Section R986-700-728.

2. (2)(a) Pursuant to Section 35A-3-603 of the Administrative Determination of Overpayments Act, any provider, client, or other person who receives an overpayment shall return the overpaid funds to the Department, regardless of fault.

   1. (b) The client and provider shall be jointly and severally responsible for repayment of any overpayment except when:

      1. (i) an overpayment is caused by an IPV solely by the client or solely by the provider; or
      2. (ii) a provider receives a CC payment, provides at least eight hours of child care during the month, and provides an attendance record to verify the provision of care, unless the provider terminated services during the month as described in Subsection R986-700-728(6).
3. (3) A provider who is assessed an overpayment pursuant to this section may be subject to increased monitoring or other remedial action pursuant to Subsection R986-700-727(6).

KEY: child care, grant programs

Date of Last Change: December 8, 2025

Notice of Continuation: August 14, 2025

Authorizing, and Implemented or Interpreted Law: 35A-3-203; 35A-3-209; 35A-3-310; 45 C.F.R. 98.21