CWES Overpayment Procedures

The EC is to apply the procedures below when an overpayment exists and the individual is known to CalSAWS:

• Identifies the person responsible for the overpayment (client or provider) and the type of supportive service payment (e.g., child care, transportation, ancillary).
• Determines and computes the amount of the overpayment in CalSAWS based on the rules/regulations that were in effect at the time of the overpayment. Refer to Chewable Byte: How to a Create Recovery Account to have the Client as a Responsible Party.

Note: Regulations subsequently invalidated by a court decision should not be used in determining the correct payment for the applicable period(s) as required by the court decision. Instead, the instructions (e.g., State All County Letter, regulations, etc.) implementing the court decision are used.

• Generates and sends the following forms to the overpaid individual within 30 calendar days from the date of initial discovery:

• Determines if an overpayment recovery/collection should be deferred. A deferral does NOT apply to provider-caused overpayments.

• Ensures that:
  • All required actions have been completed.
  • The overpayment information and deferral/referral is documented on the Journal Detail page in CalSAWS.
  • Appropriate notices are sent to the overpaid individual.
• Makes a referral to Collections once deferral has expired. The EC updates the Recovery Account Detail page by clicking the [Activate] button, which will change the Status and Status Reason to Active. This will ensure the recovery account gets auto-submitted to the Department of Tax and Collections (DTAC). 

Child Care Provider Responsible Overpayment

The following steps describe the process for a child care provider responsible overpayment:

1. The EC determines and computes the amount of the overpayment and creates a Recovery Account in CalSAWS. Refer to Chewable Byte: How to Create a Recovery Account and Have the Provider as a Responsible Party.

Note: Ensure that in the Responsible Party section, the client is removed as the Person by selecting the checkbox next to the client's name and clicking the [Remove] button.

2. From the DEBS Forms Library, the EC completes and generates the Child Care Provider Overpayment Notice/Consent (SCD 1788) and mails it to the child care provider along with a return envelope.
3. The EC enters a Journal Entry in CalSAWS.

4. If the child care provider returns the signed SCD 1788 indicating repayment either:

• Child care payment reduction - If the child care provider provides written consent on the SCD 1788, the EC will deduct the overpayment amount from the next child care provider payment(s) until the full amount owed is paid.  When the next SCD 1755B/CCP 2145 is ready for processing, follow the steps below: 
  • In CalSAWS, process the provider's recoupment.  Refer to Chewable Byte: How to Process a Child Care Recovery Account Recoupment.
  • Issue the Child Care Payment Adjustment (SCD 1736) to the client.
  • Contact the child care provider to inform them that the child care payment reduction was processed.
  • Send the completed SCD 1788 and SCD 1736 to Imaging.
• Or, the child care provider makes the full payment to the County’s Department of Tax and Collections (DTAC) within 30 calendar days. The EC is to check if a repayment was made to DTAC by viewing the Recovery Account Detail page, under the Account Balance section. 

  • Note: Once the payment is posted to DTAC’s Collections Solutions Software Impact (CSS Impact) system, the repayment interfaces automatically with CalSAWS. No payment entry should be made in CalSAWS by district office staff to avoid double crediting of the account. When the overpayment is paid in full and the current balance is zero, CalSAWS will update the Status to Closed and Status Reason to Paid in Full via overnight batch. 

5. After 30 calendar days from the SCD 1788 was mailed, the EC must make a referral to Collections if the provider failed to:

• Return the signed SCD 1788, and
• Repay the full overpayment, or
• Consent to child care payment reduction.

6. The EC enters a Journal Entry in CalSAWS.