11/01/98

10/01/86

13100 Summary

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

1. An error made by the agency
2. An error that occurred in the automated system
3. An untimely action that occurred due to the failure or inability of the county office to process a change in a timely manner

A supplemental benefit is authorized to correct an issuance before the end of the month in which the issuance originally occurred. A restored benefit is authorized to correct an issuance that occurred in a prior month.

NOTE: Retroactive food stamp benefits are 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.

11/01/98

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

1. When a reported change is not processed timely. Supplemental benefits will be provided to any household that does not receive the correct benefit amount because the county office failed to meet the time frames specified in FSC 11410 for any reason.
2. When a reported change is held awaiting verification. When a reported change is subject to verification or is questionable, verification must be obtained before the worker can act on the change. If obtaining verification means that the change cannot be processed in accordance with the time frames specified in FSC 11410, a supplemental issuance will be provided.
3. When an agency error occurs at certification, recertification, reported change, semi-annual report or mid-point review. Cases that are processed with an incorrect benefit amount will be provided a supplemental issuance if an error occurs due to any of the following reasons:

• Arithmetic error
• Incorrect calculation of income
• Incorrect calculation of deduction
• Incorrect household size used by worker
• Computer error

4. When an automatic change is not processed due to a mismatch or program change. Any systems error that results in an under-issuance of food stamp benefits must be corrected. Cases that mismatch or are closed in error must be worked manually. Supplemental benefits will be issued if appropriate.

11/01/98

Supplemental benefits will be calculated by determining the correct food stamp benefit amount for the current month, and subtracting the original food stamp benefit amount from the correct benefit amount.

Supplemental benefits are issued via daily issuance. See FSC 14133.1 for instructions on authorizing issuance of supplemental benefits.

11/01/98

06/01/04

Any household may request (in writing or orally) a restoration of benefits. A household is not required to go through the administrative hearing process before requesting a restoration. There is no time limit for making such a request. For example, in February 2001 a household may request a restoration of benefits based on a closure that occurred in March 2000.

All requests for a restoration of benefits will be evaluated within 10 days of the day 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 must specify that the request for a restoration has been denied, must provide the reason for the denial, and must state that the household has 90 days to appeal the agency's decision.

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

Restored benefits will be issued when a household received an under-issuance of food stamp benefits in a previous month for reasons such as, but not limited to, the reasons listed below:

• County office worker error
• Incorrect computer entry
• Computer error
• Mismatch or computer error at the time of an automatic change
• Erroneous denial of an application
• Erroneous closure of an active case (including an automatic closure) that causes a loss of benefits
• Issuance of an insufficient benefit amount because a reported change was not processed in accordance with the processing standards in FSC 11410
• Failure to process a mid-point review or a food stamp semi-annual report received in the county by the end of the report month
• Reversal of a county decision through the administrative hearing process when the household is determined eligible or entitled to more benefits
• An under-issuance of benefits discovered through a quality assurance review if the error is assessed to the agency
• Correction of errors in federal or state regulations using special instructions issued when such a restoration is required

Food stamp benefits will be restored when a household incurs an under-issuance or "loss" of food stamp benefits due to an agency error. Lost food stamp benefits must be restored 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 the following months:

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 specific household has possibly incurred a loss.

OR

2. The month the county office discovered in the normal course of business that a loss occurred.

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

For losses caused by an incorrect delay, application denial, or case closure, the date of initial loss must be determined.

If an eligible household's application was erroneously denied, the month of initial loss is the month of application, unless the household had filed a timely application for recertification. In that case, the month of initial loss is the month following the expiration of the household's certification period.

If a household's case was erroneously closed, the month of initial loss is the first month food stamps were not received as a result of the closure.

If an eligible household's application was delayed and a loss of benefits occurred as a result, the restoration will cover all 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. Full benefits for February will be restored. For March, the difference between the household's full benefit amount and the prorated benefit amount will be either supplemented or restored to the household.

When a judicial action is the first action taken by the household to get 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 benefits are restored as the result of a judicial review of an administrative hearing, benefits will be restored under the following guidelines: For no more than twelve months prior to the date the agency received a request for a restoration; or if no request for a restoration was received, the date the administrative hearing action was initiated; but never more than one year prior to the date DHS was notified of or discovered the loss.

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 the first month when the error was corrected so that no loss to the household occurred or until the first month household became ineligible to receive food stamp benefits.

Example: In March 2001, a county office worker discovered that a household lost food stamp benefits because excluded income had been incorrectly counted in the household’s budget since July 1999. The worker determined that the 12-month period for which benefits could be restored is April 2000 through March 2001. In preparing the restoration, the worker determined that the last month the county used this excluded income in the budget was December 2000. Therefore, restored benefits were authorized for the months April 2000 through December 2000.

11/01/98

The household will not be asked to complete an application form, change report form, semi-annual report form or any other type of form to gather information to be used to complete a restoration.

Within 30 days of the date of 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 of initial loss. 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 that occurred more than 12 months before a possible loss of benefits was discovered.

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 form reporting a decrease in earnings was not processed, 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 month or months. 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 - (e.g. - verification of earned income for month of loss)
• That no restoration will be authorized for the months in question unless the information is furnished

Step 4 through Step 10 must be taken within 30 days of the date when all of the information needed to calculate the amount of restored benefits is available to the county.

Step 4: Calculate the total amount of the restoration. Corrected budgets must be prepared so the household's income and resources will be accurately reflected for the months in 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. If the household does not supply information about allowable expenses, the expense will be disallowed. (NOTE: Verification of allowable expenses is not required unless the declared amounts are questionable.)

Step 5: Determine the difference between the amount the household actually received (if any) and the amount the household should have received. If the household actually received less than it should have received, the difference will be the amount to be restored. Benefits will not be restored for any month in which the household was resource ineligible or for any month in which benefits were over-issued. (If the household actually received more than it should have received, the difference is an overpayment. See FSC 15100 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 Report of Restored Benefits (DCO-201). (A DCO-201 may be obtained through DHS Gold.) The DCO-201 must contain the following information:

• The total amount to be restored
• The reason for the restoration
• How it was determined that the household was entitled to the restoration
• The months for which benefits will be restored

NOTE: A DCO-201 need not be completed if aged EBT benefits are being restored to a household. See FSC 13311.

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

• The total amount of the restoration
• The reason for the restoration
• The months for which benefits are being restored
• The amount being offset, if any
• If offset is occurring, the reason for the offset

The DCO-1 will also advise the household of its right to appeal 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.

If the total amount to be restored can be calculated without requesting additional information from the household or other source, the restoration must be authorized within 30 days of the date of discovery. If additional information and/or verification must be obtained to determine the restoration amount, the restoration 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 restoration 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. The restoration for the four-month period will be authorized within 30 days of the date on which the potential restoration became known to the county. The restoration for the two remaining months will be authorized within 30 days of the date when the information necessary to determine the restoration is received.

06/01/04

Deleted

11/01/98

06/01/04

Before restoring benefits to a household, the county office worker must determine if the household has an unpaid claim. If the purpose of the restoration is to restore aged food stamp benefits, no offset will occur regardless of the type or status of the claims against the household. Claims against the household are listed on the Recipient Overpayment Accounting System (ROAS). See FSC 15501. 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.

11/01/98

Individuals disqualified for fraud are entitled to a restoration of any benefits lost during the months they were disqualified only if the decision that resulted in the disqualification is subsequently reversed. An individual is not entitled to a restoration of benefits lost during a disqualification period just because there was no criminal conviction. 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.

11/01/98

See FSC 14133.2 for instructions for authorizing issuance of restored benefits.

11/01/98

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

If the household is due restored benefits and moves before the benefits are restored (or fully restored); the receiving county will authorize the restoration.

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

Restored benefits will be authorized as instructed in FSC 13310. Once the restored benefits are available on the electronic benefits transfer (EBT) system, the worker will convert the benefits to food stamp coupons as instructed in FSC 14800. The food stamp coupons will be mailed to the household at their new address. If the county office does not know the departing household's new location or address, the restoration will be available for up to one year from the household's departure. Should the household contact the county during this period, the restoration will be authorized.

13351 When Household's Membership Has Changed

Whenever benefits are to be restored to a household and that household's membership has changed, the 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 the household that contains a majority of former household members, the benefits will be restored to the household containing the individual who was the case head at the time the loss occurred.

11/01/98

If a household believes it is entitled to a restoration of lost benefits, but the county, based upon a review of the case record, does not agree, 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 the restoration, the method of calculation, or the amount of offset. Hearings must be requested within 90 days of the date that the household was notified, in writing, of the restoration.

If a hearing is requested before 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.