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Underpayments (U/P)
An underpayment occurs when the institution, foster parent, non-legally liable relative caretaker, adoptive parent or foster child (if the child is his/her own payee) receives no payment or a smaller payment than the one to which they were eligible.
Underpayments that are correctable are those caused by administrative error or those caused by an estimated income error. A change in rates which is retroactive to prior months is considered an administrative error.
When an underpayment is discovered on an active AFDC-FC, AAP or Kin-GAP case, a supplement shall be issued. Full state and federal participation can be obtained on all underpayment supplements.
If an underpayment is suspected due to a change in rate, all cases that pertain to the underpayment must be reviewed for a possible supplement. This includes those FC, AAP and Kin-GAP cases that are closed or transferred to other units. The last worker to have the case is responsible for reviewing the case and, if applicable, issuing the underpayment supplement.
If an assistance unit has both an underpayment and an overpayment, the EW may balance one against the other (offset) before making a retroactive corrective payment, except for FC when Bass v. Anderson prohibits collection of the overpayment. Refer to Bass v. Anderson [EAS 44-340.42].
Required Documentation
The county shall document the amount of the underpayment, the actual dates of the days underpaid, the date of discovery, the aid code for which the underpayment was made, and include a description of the circumstances that resulted in the payment error.
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