5101:4-8-23 Food assistance: claims retention rates and accounting procedures.

(A) The retention rates for county agencies are as follows:

If you collect an Then the retention rate is

Intentional program violation(IPV) claim Thirty-five per cent

Inadvertent household error(IHE) claim Twenty per cent

Administrative error(AE) claim Nothing

These rates do not apply to any reduction in benefits when you disqualify someone for an IPV.

If a succession of IHE and AE occurred over a period of months in such a manner as to prevent a determination of what months can be attributed solely to assistance group (AG) error twenty per cent shall not be retained by the county. If the county discovers overpayments spanning several months, some months attributable solely to AG error and some months to agency error, two claims must be established in order to retain twenty per cent of the collections on the IHE claim. Overpayments occurring in months attributable to AG error must be calculated independently of the months attributable to agency error. Separate JFS 07424 "Report of Claim Determination/Lost Benefits", (rev.8/01) forms must be completed.

If an overpayment is a result of IHE and AE with the same month, the claim will be considered an AE and twenty per cent shall not be retained by the county.

(B) Change in claim status: established IHE claim to IPV claim

The county agency shall retain twenty per cent of the value of cash monies, coupons collected, lost benefits offset, or allotment reductions on an IHE claim. The county agency shall retain twenty per cent of the amounts recovered on a claim being handled as an IHE claim pending a determination by an administrative disqualification hearing officer or a court of appropriate jurisdiction that IPV was committed, or receipt of either a signed waiver or consent agreement. Once the determination or signed document is obtained, the county agency may recover from the state an additional fifteen per cent incentive on collections made before the change in claim status. The county agency shall update the client registry information system enhanced (CRIS-E) when there is a change in claim status. The county agency shall revise the JFS 07424 when the status of a claim is changed from IHE to IPV.

(C) Claims accounting procedures

(1) As a county agency, you must maintain an accounting system for monitoring recipient claims against AGS. This accounting system shall consist of both the system of records maintained for individual debtors and the accounts receivable summary data maintained for these debts.

At a minimum, the accounting system must document the following for each claim:

(a) The date of discovery;

(b) The reason for the claim;

(c) The calculation of the claim;

(d) The date you established the claim;

(e) The methods used to collect the claim;

(f) The amount and incidence of any claim processing charges;

(g) The reason for the final disposition of the claim;

(h) Any collections made on the claim;

(i) Any correspondence, including follow-up letters, sent to the AG.

(j) In cases of IPV also include the administrative disqualification hearing decision, a disqualification consent agreement, waiver of administrative disqualification hearing, or court order indicating the AG was convicted of IPV.

(k) In cases of terminated claims, also include the basis for termination of collection action.

(2) At a minimum, your accounting system must also identify the following for each claim:

(a) Those AGs whose claims have become delinquent. CRIS-E automatically issues a notice to recipients whose installment agreement repayments are delinquent.

(b) Those situations in which an amount not yet restored to an AG can be used to offset a claim owed by the AG; and

(c) Those AGs with outstanding claims that are applying for benefits.

(3) When requested and at intervals determined by the food and nutrition service (FNS), your accounting system must also produce:

(a) Accurate and supported outstanding balances and collections for established claims; and

(b) Summary reports of the funds collected, the amount submitted to the state, the claims established and terminated, any delinquent claims processing charges, the uncollected balance and the delinquency of the unpaid debt.

(4) On a quarterly basis, unless otherwise specified, your account system must reconcile summary balances reported to individual supporting records.

(D) Correlating claim repayments with FNS billings

The following procedures are to be followed until food stamp coupons are totally replaced by EBT:

(1) Certain transactions caused by administrative error shall be reported via the FNS-46 "Issuance Reconciliation Report", (rev.8/89) and any related claim repayments designated by entering a "Y" (yes) on BVRC, "46 billing." The JFS 07424 shall be completed and earmarked for special handling by the county agency.

(2) Coupons collected for such claims shall be destroyed via the FNS-471. Copies of pertinent FNS-471 forms, "Coupon Account And Destruction Report", (rev.4/86) shall be retained to submit for credit upon receipt of the FNS-46 billing.

(3) Counties are encouraged to establish separate accounting procedures for overpayments that are included in the FNS-46 report so that when the next FNS-46 billing arrives, all the proper records are readily available to determine the accuracy of the billing amount and the amount of monies retained by the county agency in anticipation of the FNS-46 billing.

(4) Coupon destruction

(a) The county agency shall be responsible for the destruction of coupons collected for the repayment of food stamp claims within thirty days from the close of the month in which the coupons were received. FNS-471 shall be used to account for the destruction of such coupons. The FNS-471 shall be completed and properly filed at the county agency.

(b) The destruction of coupons collected for the repayment of food stamp claims shall not be reflected on the FNS-250 "Food Coupon Accountability Report.", (rev.10/98)

(c) The county agency shall destroy the coupons and coupon books by burning, shredding, tearing, or cutting so as to make them nonnegotiable. Destruction must be witnessed by a county agency official and one other witness.

(d) Claim repayments made by coupons shall not be entered into CRIS-E until the completed destruction can be documented by a signed FNS-471.

(E) Public assistance(PA) fund repayment adjustment

The county agency is eligible to retain, as an incentive, a percentage of collections made on IPV and IHE claims. The county agency shall deposit all cash collections reported into its PA fund. The county's PA fund then will be adjusted, as part of the quarterly reconciliation process, to reflect the amount of total collections the county agency is entitled to retain. Monies are automatically deducted or restored as identified via claim repayment entries on CRIS-E.

Effective: 03/23/2006
R.C. 119.032 review dates: 09/01/2009
Promulgated Under: 111.15
Statutory Authority: 5101.54
Rule Amplifies: 329.04, 329.042, 5101.54
Prior Effective Dates: 6/2/80, 6/20/80, 10/1/81, 6/2/82, 8/15/82, 9/27/82, 1/1/83, 8/1/83, 9/24/83 (Temp.), 11/11/83, 4/1/84 (Temp.), 6/1/84, 5/3/85 (Emer.), 8/1/85, 10/1/88 (Emer.), 11/18/88, 7/11/89 (Emer.), 9/17/89, 1/5/90 (Emer.), 5/22/90, 10/1/90, 10/1/91, 2/3/92, 8/1/92 (Emer.), 10/30/92, 6/1/94, 9/1/94, 8/1/95, 12/1/95, 5/1/96, 9/22/96 (Emer.), 10/1/96, 10/1/96 (Emer.), 11/22/96, 1/1/97 (Emer.), 3/1/97, 3/23/97, 10/1/97, 2/1/98 (Emer.), 2/23/98, 8/1/98, 5/1/99, 7/15/99, 8/1/01 (Emer.), 8/11/01, 09/01/04