Foster Care Overpayments (O/P)

Definition

45-304.1

An overpayment is any amount of aid paid to a foster care provider on behalf of a child that the provider was not entitled to receive.

For any period during which the foster child was not cared for in that home, except as provided in Sections 45-304.123 and 45.304.125, the county shall demand and collect overpayments from a:

Foster Family Home (FFH)
Approved home of a relative (ARC)
An-relative extended family member (NREFM)
Approved home of a non-related legal guardian (NRLG)
Group Homes (GH)
Small Family Homes (SMF)
Foster Family Agencies (FFA)

Required Documentation

45-304.121

For all overpayments that occur, the county shall document in a CalSAWS Journal:

The amount of the overpayment
The actual dates of the days overpaid
The date of discovery of the overpayment
The aid code for which the overpayment was made
A description of the circumstances that resulted in the payment error.

Collectible Period

45-304.4

A county shall not initiate overpayment recovery after one year from the date the county discovers the overpayment. The initial discovery of the overpayment may occur more than a year after the actual overpayment occurred and recovery shall be sought unless prohibited (EAS 45-304.120]. The date of discovery controls the collectible period, not the date of the actual overpayment.

When the overpayment recovery was initiated within one year of the date the county discovered the overpayment, the county shall continue to recover the overpayment until fully recovered or written off pursuant to the county's write-off policy.

Recoupment

Important: The CDSS Eligibility Assistance Standards (EAS) Manual 45-304.125 states that counties shall not pursue collection of FC overpayments when the cost of collection exceeds the amount of the payment.

45-304.3

Overpayments shall only be collected from the provider who actually received the overpayment from the county. Overpayments shall not be collected from subsequent providers who provide care to the child for whom the overpayment was assessed.
If the child for whom the overpayment was assessed is no longer residing in the home of the provider, grant adjustment and grant offset shall not be used to recover the amount of the overpayment. This section applies even if the provider is caring for other foster care children.
45-304.33
For recoupment of overpayments made to group homes and foster family agencies, the counties shall reduce any subsequent payments by an amount equal to the amount of the administrative portion of the monthly payment to the provider (45-305).

Notice of Action Forms

The Notice of Action For Group Homes and Foster Family Agencies Only (NA 1261) was revised to include specific instructions for GHs and FFAs. This document must only be used when requesting overpayments from GHs and FFAs, it must not be used for individual providers.
The Notice of Action For Approved Relatives, Non-Relative Extended Family Members (NREFM), Foster Family Homes, Non-Related Legal Guardians (NLRG) or Non-Minor Dependents (NMD) Residing in a Supervised Independent Living Setting (NA 1261A). Workers must document the information that supports the determination that the Relative Caregiver, NREFM, FFH, NRLG, or SILS where the NMD resides, knowingly contributed to or caused the overpayment, and that the overpayment is based upon the child not being in the home, or other collectible reasons, before sending the NA 1261A.
The Notice of Action For Kinship-Guardians Only (NA 1261B). Workers must document the underlying information supporting the determination that a Kin-GAP guardian knowingly contributed to or caused the overpayment and that the overpayment is based on the child not being in the home or other collectible reasons before sending the NA 1261B.

Do Not Collect

45-304.123

When any of the following conditions exist:

The overpayment was exclusively the result of a county administrative error
Neither the county nor the provider was aware of the information that would establish that the child was not eligible for FC benefits in that provider’s home
The provider was unaware of and did not contribute to the cause of the overpayments.

The county shall not demand collection of overpayments made to a:

Foster Family Home (FFH)
Approved home of a relative (ARC)
Non-relative extended family member (NREFM)
Approved home of a non-related legal guardian

Voluntary Repayment Policy

45-304.124
Although the state allows counties to request that the provider voluntarily return an overpayment, Santa Clara County Financial Management Services (FMS) has chosen not to use this provision. Therefore, SSBSs will not request any voluntary payments.