10/01/86

13100 Summary

Supplemental and restored food stamp benefits are issued to a household to correct:

1. An error made by the agency;
2. An error which occurred in the automated system; or
3. The failure or inability of the county office to process a change in a timely manner.

Supplemental benefits are issued the same month as the incorrect benefits were issued while restored benefits are issued at least one month after the incorrect benefits were issued.

13100 Summary

Supplemental and restored food stamp benefits are issued to a household to correct:

1. An error made by the agency;
2. An error which occurred in the automated system; or
3. The failure or inability of the county office to process a change in a timely manner.
4. The return of a household's food stamp allotment by the Postal Service in a month after the allotment's issuance month.  Such returns are always reissued as restored benefits.

The distinction between supplemental and restored benefits may be made by considering the month in which the issuance of extra food stamps is to occur.  When the issuance occurs before the end of the month in which the incorrect allotment was originally issued, it is considered a supplement.  When the issuance occurs after the end of the month in which the incorrect allotment was originally issued, it is considered a restoration.

NOTE: Retroactive benefits are food stamps issued at the time of application approval for months in the application period prior to the month of approval.  Retroactive benefits are not covered in this section of policy.  See FSC 8650 for instructions on authorizing retroactive benefits.

The county office will provide supplemental benefits in the following situations:

1. When a reported change is not processed timely per [FSC 11410] resulting in a loss of benefits to the household.
2. When an agency error occurs at certification, recertification, when a quarterly report or mid-point review was processed, and as a result, the household receives too few benefits. Such errors include, but are not limited to:
   1. Math errors;
   2. Incorrect calculation of income;
   3. Incorrect calculation of deduction;
   4. Incorrect household size; or
   5. Computer error.
3. When an automatic change is not processed due to a mismatch or program change.

Cases that are identified as a mismatch or that are closed in error must be worked manually. Supplemental benefits will be issued if appropriate.

Supplemental benefits will be calculated by:

1. Determining the correct food stamp benefit amount for the current month; and
2. Subtracting the incorrect food stamp benefit amount from the correct benefit amount.  The result will be the amount supplemented.

Supplemental benefits are issued via Daily Issuance. See DCOUM 8340 for instructions on authorizing issuance of supplemental benefits. 

Each household authorized to receive a supplemental issuance will be provided with a Notice of Action (DCO-1). The Notice of Action, which may be combined with a notice of change, will specify the amount of the supplement, the reason for the supplement, and the approximate date the benefits will be available to the household.

Restored benefits are issued whenever an agency employee discovers that a food stamp household lost benefits as a result of an agency error.

Additionally, any household claiming to have lost food stamp benefits due to an agency error may request a restoration of benefits. Such requests may be written or oral. There is no requirement that the household go through the administrative hearing process before requesting a restoration nor is there a time limit for making a request. For example, in February 1999, a household may request a restoration of benefits based on a closure which occurred in March 1998.

All requests for restoration will be evaluated within 10 days of the day that the request was received. If the household is entitled to a restoration, the steps specified in [FSC 13310] will be completed. If the household is not entitled to a restoration, a Notice of Action (DCO-1), will be completed. The DCO-1 will specify:

• That the request for restoration has been denied;

• The reason for the denial; and

• That the household has 90 days to appeal the agency's decision to deny restored benefits.

The household will be entitled to a hearing as specified in [FSC 13360].

Restored benefits will be issued when a household was underissued food stamp benefits in a previous month for reasons such as, but not limited to:

1. Worker error.
2. System error.
3. Mismatch or system error at the time of an automatic change.
4. Erroneous denial of an application.
5. Erroneous closure of an active case including an automatic closure that causes a loss of benefits.
6. Issuance of insufficient benefits when a reported change was not processed in accordance with the processing standards in [FSC 11410].
7. Failure to process a midpoint review or a food stamp quarterly report that was received in the county by the end of the report month.
8. Reversal of a county decision through the administrative hearing process if the household is determined eligible or entitled to more benefits as a result of the hearing decision.
9. A Quality Assurance review that results in a decision that a household was underissued benefits if the error is assessed to the agency.
10. Correction of errors in federal or state regulations. (Special instructions will be issued at the time such restorations are to be authorized.)

Food stamp benefits will be restored when a loss has occurred even if the household is currently ineligible or not participating in the Food Stamp Program.

No restoration will be authorized for food stamp benefits lost more than 12 months prior to the most recent of:

1. The month the county office was notified (in writing or orally) by the household another person, another agency or the Quality Assurance Unit that a possible loss to that specific household has occurred; or
2. The month the county office discovered in the normal course of business that a loss occurred.

If a household was eligible but received an incorrect amount of benefits, restoration will be authorized for those months within the 12 month limit when the household participated and a benefit loss occurred.

For losses caused by an incorrect delay, application denial, or case closure, the date the loss initially occurred must be determined. After the date of initial loss is determined, any month prior to the 12 month limit will be disregarded when restored benefits are authorized. The amount to be restored will be calculated for each subsequent month within the designated 12 month period until either the first month the error is corrected or the household is found ineligible.

If an eligible household's application was erroneously denied, the month the loss initially occurred will be the month of application, unless the household had filed a timely application for recertification. In that case, the month in which the loss initially occurred will be the month following the expiration of the household's certification period.

If a household's case was erroneously closed, the month the loss initially occurred will be the first month food stamp benefits were not received as a result of this closure.

If an eligible household's application was delayed and a loss of benefits occurred as a result, the restoration will cover any months in which a loss occurred. For example, a household filed an application on January 25. The application was held until March 25. The application was approved but the household was incorrectly found to be at fault for delay and benefits were prorated to March 25. Restored benefits will be authorized for January, February and March. January benefits will be provided from the date of application, January 25. The full benefit amount for February will be restored. For March, the restoration will be the difference between the household's full benefit amount and the prorated benefit amount that was issued to the household.

In the event a judicial action is the first action the household took to obtain restoration of lost benefits, benefits will be restored for a period of not more than twelve months from the date the court action was initiated. When the judicial action is a review of a state action (administrative hearing), benefits will be restored for a period of not more than twelve months from the first of the following dates:

1. The date the agency received a request for restoration; or
2. If no request for restoration was received, the date the hearing action was initiated; but
3. Never more than one year from when the agency is notified of, or discovers the loss.

Within 30 days of the date of the discovery that a household may be entitled to a restoration of benefits, steps 1 - 3 must be completed.

Step 1 - Determine the months for which a household may be entitled to a restoration of benefits. Begin by determining the month in which a loss initially occurred. Examine the case to determine each subsequent month in which a loss possibly occurred. The extract amount issued for each month may be obtained from the Mail History Screen (WFTD). Exclude any losses which occurred more than 12 months prior to the date of the discovery of the possible loss of benefits.

Step 2 - Analyze the case to identify any information and/or verification needed to determine the exact amount of restoration due for each month in which a loss possibly occurred. For example, if a Change Report Form (DCO-234) that reported a decrease in earnings was not processed, the county office worker would request verification of earnings for the months in which a loss possibly occurred.

Step 3 - Contact the household via Notice of Action (DCO-1) when information and/or verification is needed for any months for which benefits are to be restored. The DCO-1 must specify:

• That the household may be entitled to a restoration of benefits;

• The exact information needed to determine the amount of restoration; and

• That if this information is not furnished by household, no restored benefits will be authorized for the months in question.

Steps 4 - 10 must be taken within 30 days of the date the information needed to calculate the amount of restored benefits is available to the county. The household will not be asked to complete Food Stamp Application (DCO-220), Change Report Form (DCO-234), Quarterly Report Form (DCO-285) or any other type of form to gather information to be used to complete a restoration.

If the total amount to be restored may be calculated without requesting additional information from the household or other source, restored benefits must be authorized within 30 days of the date of discovery. If additional information and/or verification must be obtained to determine the amount to be restored, restored benefits must be authorized within 30 days of the date on which all of the required information and/or verification was received.

Partial restorations will be authorized when the county can determine the amount to be restored amounts for some, but not all, of the months in the restoration period. For example, a household may be entitled to a restoration for a six month period; however, the county only has the information necessary to complete a restoration for a four-month period.

Restored benefits for the four month period will be authorized within 30 days of the date on which the potential restoration became known to the county. Restored benefits for the two remaining months will be authorized within 30 days of the date when the information necessary to determine the restoration is received.

Step 4 - Calculate the total amount to be restored. Corrected budgets must be prepared so the household's income and resources will be accurately reflected for the months during which losses possibly occurred. The budgets must reflect the basis of issuance and standards (e.g., standard deduction) that were in effect during the month of loss.

Step 5 - Determine the difference between the amount the household actually received (if any) and the amount it should have received. If the household actually received less than it should have received, the difference will be the amount to be restored. Do not restore benefits for any month during which the household was otherwise ineligible. If the household actually received more than it should have received, the difference is an overpayment. See [FSC 15100-15430] for instructions on preparing and submitting an overpayment.

Step 6 - Determine if the restoration should be offset. When the household has a new or previously existing overpayment, the total restoration will be offset by the overpayment. See [FSC 13320] for instructions on offsetting restored benefits.

Step 7 - Obtain supervisory approval via the DCO-201, Report of Restored Benefits (DCO-201). The DCO-201 must contain the following information:

1. The total amount to be restored;
2. The reason for the restoration;
3. How it was determined that the household was entitled to the restoration; and
4. The months for which benefits will be restored.

Step 8 - Notify the household via Notice of Action (DCO-1), of the restoration. The DCO-1 must specify:

1. The total amount of the restoration;
2. The reason for the restoration;
3. The months for which benefits are being restored;
4. The amount being offset, if any;
5. If offset is occurring, the reason for the offset; and
6. If the restoration is very large, a statement offering the household the option to receive their benefits over a period of several months. (Allow the household five working days to indicate their choice. If there is no response within the five day period, benefits will be authorized in one payment.)
7. The DCO-1 will also specify that the household has the right to appeal through the administrative hearing process the amount of the restoration and/or the amount of the offset. The household must submit its appeal within 90 days of the day of the notice of restoration.

Step 9 - Prepare the authorization document. See DCOUM 8330-8370 for instructions for authorizing restored benefits.

Before restoring benefits to a household, the county office worker must determine if the household has an unpaid claim. Claims against the household are listed on the WCLM (Claim History) screen. If the household has an unpaid claim, the claim must be offset before benefits are restored.

If a claim against a household is unpaid or held in suspense, the amount to be restored will be offset by the amount due on the claim. The balance, if any, is restored to the household.

1. Method of Offsetting

Restored benefits will be offset against the claim by subtracting the amount of the claim from the restoration. The balance, if any, will be issued to the household.

2. Reports to Overpayment Unit

A Report of Restored Benefits (DCO-201), will be submitted to the Overpayment Unit if a current claim exists. If the claim has not yet been submitted to the Overpayment Unit, an overpayment claim must be prepared as instructed in [FSC 15400] and submitted to the Overpayment Unit along with the DCO-201.

3. Notifying Household of Offset

The county office will notify the household via Notice of Action (DCO-1) of the full amount of benefits to be restored, any offsetting that was done, and the reason for the offset. The household will also be notified of the right to appeal any aspect of the proposed restoration through the administrative hearing process within 90 days of notification of the restoration.

Individuals disqualified for fraud are entitled to restoration of any benefits lost during the months they were disqualified only if the decision which resulted in the disqualification is subsequently reversed. An individual is not entitled to restoration of lost benefits for the period of disqualification based solely on the fact that a criminal conviction could not be obtained. The individual must successfully challenge the disqualification in a separate court action before benefits are restored. The county office must include a copy of the court order in the case record.

See DCOUM 8330-8370 for instructions for authorizing issuance of restored benefits.

Benefits due a household that intends to move will be restored prior to the move, if possible. If this is not possible, the restoration will be handled as instructed below.

Within the State

If the household is due restored benefits and moves before the benefits are restored (or fully restored), the restoration will be authorized by the receiving county.

The losing county will document the case record in sufficient detail to clearly convey the necessary information about the restoration to the receiving county.

Out of the State

If a household moves out of state before food stamp benefits are restored (or fully restored), the new state of residence will be authorized to issue the restoration.

The Food Stamp Section, Central Office, will handle all requests for issuance of restored benefits in a household's new state of residence. When the county becomes aware that a household now living out of state is entitled to a restoration of benefits, a memo requesting authorization of restored benefits will be sent from the county to the Manager, Food Stamp Section, Slot 1240. The memo of request must contain, at a minimum, the name and social security number of the head of household, the household's address in the new state of residence, the amount to be restored and the reason for the restoration.

The memorandum should be accompanied by a copy of the food stamp authorization document containing the appropriate entries in the restoration fields and a copy of the Report of Restored Benefits (DCO-201).

The Food Stamp Section will furnish the county office with copies of all correspondence related to the out of state issuance of restored benefits. This correspondence will be filed in the household's case record.

If the county office does not know the departing household's new location or address, the restoration will continue to be available for up to one year from the household's departure. Should the household contact the county during this period, restored benefits will be authorized.

Whenever lost benefits are due a household and the household's membership has changed, lost benefits will be restored to the household containing a majority of the individuals who were household members at the time the loss occurred. If the county office worker cannot locate or determine which household contains a majority of household members, benefits will be restored to the household containing the individual who was the case head at the time the loss occurred.

When a household's claim for restoration of lost benefits is denied by the county, the household has 90 days to request an administrative hearing. Day one of the 90 day period will be the date the household was notified, in writing, that the request for restoration was denied.

A household may also request an administrative hearing to dispute the amount of restoration calculated, the method of calculation, or the amount of offset. Hearings must be requested within 90 days of the date the household was notified, in writing, of the restoration.

If a hearing is requested prior to the time benefits are restored, the amount calculated by the county office will be issued to the household. If the hearing decision is favorable to the household, another restoration will be made.