Supportive Services (CWES) Overpayments

Policy

Clients who are receiving CalWORKs may choose to have supportive services overpayments adjusted from their CalWORKs grant provided:

The client chooses this method of repayment, AND
The client agrees with the amount of the CalWORKs grant adjustment.

Supportive Service Overpayment Computation

The CWES worker computes the overpayment for each month involved using the “CWES Overpayment/Underpayment Worksheet and Referral” (WTW 11).

Promptness Requirement

The Eligibility Worker (EW) must begin adjusting any supportive services overpayments from the CalWORKs monthly grant adjustment within 30 calendar days from the date the “Supportive Services Repayment Agreement” (WTW 12) is received from the CWES worker. An adequate and timely notice of action must be sent.

Exception: All CalWORKs overpayments must be collected prior to collecting any CWES overpayments. For multiple CWES overpayments, follow the order of priority per Multiple Overpayment Balances.

Source of Payment

An overpayment may be related to any of the following types of supportive services payments:

Child Care
Transportation
Ancillary Expenses.

Types of Supportive Service Overpayment

Supportive service overpayments are categorized as follows:

Administrative Overpayment (AE)
The overpayment is caused by the agency or the CWES worker when all the information necessary to determine the correct payment was in the possession of the county. This generally occurs when the client reports the change but appropriate action is not taken, or when the CWES worker makes an incorrect computation.
CE overpayment

The overpayment does not meet the criteria to be considered an AE overpayment. This may be client-caused or as a result of a fraud conviction.

Grant Adjustment Rates

The adjustment rate from the CalWORKs monthly grant is as follows:

For AE overpayments, the EW must collect five percent (5%) of the CalWORKs grant, unless the client volunteers to pay a higher amount.
For CE overpayments, the EW must collect ten percent (10%) of the CalWORKs grant, unless the client volunteers to pay a higher amount.

Procedure

If the client chooses grant adjustment to repay a supportive service overpayment, follow these steps:

CWES Worker:
1. Notifies the client of the overpayment by sending the following forms to the client:
  1. “Overpayment Notice” (WTW 11),
  2. “Overpayment/Underpayment Computation” (SC 1842C), and “Supportive Services Repayment Agreement” (WTW 12)
Client:
1. Marks his/her choice of repayment method.
CWES Worker:
1. Sends a copy of the following to the Eligibility Worker (EW):
  1. WTW 11,
  2. SC 1842C,
  3. WTW 12.
CWES:
1. Records information provided on the WTW 2 in the Record Repayment window.
EW:
1. Ensures that CalSAWS recoups the following percentage from the CalWORKs grant until the overpayment is paid in full or revoked by the client.
  1. For client-caused overpayments, recoup 10% of the CalWORKs monthly grant, unless the client volunteers to pay a higher amount
  2. For administrative overpayments, recoup 5% of the CalWORKs monthly grant, unless the client volunteers to pay a higher amount.
2. Note: All CalWORKs overpayments must be collected first prior to collecting any CWES overpayments. For multiple CWES overpayments, follow the order of priority per Multiple Overpayment Balances.
3. Ensures CalSAWS sends an adequate and timely Notice of Action to the client.
4. Sends the WTW 2 to Image into case.
5. Notifies the CWES worker when the CalWORKs case is closed and there is a remaining unpaid balance of the overpayment.
CalSAWS:
1. Refers the remaining unpaid balance of the overpayment to Collections.

Note: Clients may revoke a repayment agreement incorporating their grant adjustment at any time and enter into a new repayment agreement.

Offsetting

The EW must not offset any supportive services overpayments against CalWORKs underpayment unless the client agrees or volunteers.