(A) What is the definition of "erroneous
payment?"
Section 5107.02 of the Revised Code defines Ohio works first
(OWF) as the temporary assistance to needy families (TANF) program established
in Title IV-A of the Social Security Act, 49 Stat. 620 (1935),
42 U.S.C.
301 (8/1981). An "erroneous payment" is
defined in section 5107.76 of the Revised Code as a
payment of cash assistance under OWF to assistance groups not eligible to
receive the assistance. The provisions set forth in this rule apply to all
erroneous payments made on or after July 1, 1998, under OWF, including payments
of cash assistance for support services funded with TANF monies.
An erroneous payment may occur because of any change in an
assistance group's situation which decreases the level of assistance for which
the assistance group is eligible. Paragraph (J) of this rule sets forth the
provisions for calculating the amount of the erroneous payment.
(B) How are aid to families with
dependent children (ADC)/TANF cash assistance and/or OWF overpayments that
occurred and were discovered prior to July 1, 1998 collected?
All ADC/TANF cash assistance and/or OWF overpayments that
occurred and were discovered prior to July 1, 1998 are subject to the
provisions set forth in rule
5101:1-23-70.1 of the
Administrative Code.
(C)
How are erroneous payments that are discovered on or after July 1, 1998
collected?
All cash assistance under the former aid to families with
dependent children (ADC) or TANF programs and/or OWF erroneous payments that
occurred on or after July 1, 1998, or that occurred prior to July 1, 1998, but
were discovered on or after July 1, 1998, shall
are to be
collected in accordance with the provisions set forth in this rule.
(D) How are work allowance
overpayments that occurred prior to October 1, 1997 collected?
Work allowance overpayments that occurred prior to October 1,
1997 are subject to the provisions set forth in rule
5101:1-23-70.2 of the
Administrative Code.
(E)
Are
Should
agency-caused overpayments that occurred prior to October 1, 1997 and that are
discovered on or after July 1, 1998
required
to be collected?
The county agency has the option of whether to collect agency
caused overpayments that occurred prior to October 1, 1997, and that are
discovered on or after July 1, 1998. If the county agency chooses not to
collect the overpayment, the debt will remain and can be recovered in
accordance with the provisions set forth in this rule. Failure to repay
erroneous payments as a result of an agency error does not result in
ineligibility for OWF.
(F)
What are the responsibilities of the county agency?
(1) Provide the assistance group with
frequent and complete explanations of program eligibility, the factors that
cause ineligibility and erroneous payments, and the assistance group's
responsibility to report changes in income, need, and other circumstances
affecting eligibility, as set forth in rule
5101:1-2-20 of the
Administrative Code.
(2) Take
action to terminate or adjust the OWF payment as soon as the county agency
learns of a change in circumstances which affects the assistance group's future
eligibility for assistance, in accordance with the hearing provisions set forth
in division 5101:6 of the Administrative Code.
(3) Take action to recover the erroneous
payments in accordance with the provisions set forth in this rule and sections
5107.05 and
5107.76 of the Revised
Code.
(4) When the assistance group
has a change, and the change results in the decrease in or termination of OWF
cash assistance, the county agency
shall
is to issue a notice of adverse action within ten
days of the date the change was reported or the county agency becomes aware of
the change, unless one of the exceptions to the notice of adverse action in
Chapter 5101:6-2 of the Administrative Code applies.
(G) What are the reporting
requirements for an assistance group?
(1) The reporting requirements and
timeframes are described in rule 5101:1-2-20 of the Administrative
Code.
(2) Not withstanding the
requirements in rule 5101:1-2-20 of the Administrative Code, the assistance
group is not required to report any other changes in circumstances until the
next reapplication. In such situations, no erroneous payments exist between the
date that the unreported change occurs and the date that the change is reported
or the county agency otherwise becomes aware of the change.
(3) The assistance group's report of
an impending change in circumstances does not negate its responsibility to
report any change identified in rule 5101:1-2-20 of the Administrative Code
within ten days from the date that the change actually occurs.
(H)(G) What is the
effective date of a budget adjustment?
(1)
When a notice of adverse action is issued, the decrease in the benefit level
shall
is to
be made effective with the OWF benefit for the month following the month in
which the notice of adverse action period has expired, provided a fair hearing
and continuation of benefits have not been requested.
(2) When a notice of adverse action is not
issued due to one of the exceptions of rule
5101:6-2-05 of the
Administrative Code, the decrease
shall
is to be made effective no later than the month
following the change. This applies for all reporting requirements listed in
rule
5101:1-2-20 of the
Administrative Code.
(3) When the
change is new employment of an assistance group member, the budget adjustment
does not become effective until the later of:
(a) The first day of the month following the
month in which the assistance group receives earned income from employment,
consistent with the application of the earned income disregard set forth in
rule
5101:1-23-20 of the
Administrative Code; or
(b) The
month following the month in which the notice of adverse action period has
expired.
(I)(H) When is an
assistance group liable for an erroneous payment?
(1) When the county agency discovers that the
assistance group failed to report a
required change within the
required timeframes as set forth in rule
5101:1-2-20 of the
Administrative Code and as a result of the change, the assistance group
received benefits it was not entitled to receive;
(2) When the county agency failed to act on a
change timely and as a result, the assistance group received benefits it was
not entitled to receive;
(3) When
an erroneous payment occurs because an adverse action was proposed, payments
continued without change due to a timely hearing request, and the hearing
decision affirmed the county agency proposal; or
(4) The assistance group is not liable for an
erroneous payment because of a failure to report a change that is not a part of
the
required reporting requirements as set
forth in rule
5101:1-2-20 of the
Administrative Code.
(a)
Not withstanding the requirements in rule
5101:1-2-20 of the
Administrative Code, the assistance group is not to report any other changes in
circumstances until the next reapplication. In such situations, no erroneous
payments exist between the date that the unreported change occurs and the date
that the change is reported or the county agency otherwise becomes aware of the
change.
(b)
The assistance group's report of an impending change in
circumstances does not negate its responsibility to report any change
identified in rule
5101:1-2-20 of the
Administrative Code within ten days from the date that the change actually
occurs.
(J)(I) How is an erroneous
payment calculated?
The amount of the erroneous payment is the difference between
the amount of benefits the assistance group should have received for a calendar
month, and the amount of benefits the assistance group actually received for
that month. In determining the amount of an erroneous payment, the agency
shall
is to
consider the federal Fair Labor Standards Act (FLSA) (5/2007)
(6/2012)
applicable requirements and/or any other federal labor laws which may apply.
When the county agency becomes aware of a change in the assistance group's
circumstances, the county agency shall
is to determine the following:
(1) The date on which the change occurred,
and whether the change was due to one of the reporting requirements listed in
rule
5101:1-2-20 of the
Administrative Code.
(2) The date
on which the change was reported by the assistance group to the county agency,
or the county agency became aware of the change.
(3) In accordance with the provisions set
forth in paragraph
(H)
(G) of this rule, the date on which the decrease or
termination of benefits should have been effective had the assistance group
reported the change in accordance with the timeframes as set forth in rule
5101:1-2-20 of the
Administrative Code and/or had the county agency acted timely on reported
and/or discovered change(s).
(4)
The dates and amounts of any erroneous payments, by month.
(a) When the assistance group has earned
income, the earned income disregards set forth in rule
5101:1-23-20 of the
Administrative Code,
shall
are to be deducted as appropriate in computing
the amount of the erroneous payment.
(b) For any month that the assistance group
failed to timely report a change in earned income as set forth in rule
5101:1-2-20 of the
Administrative Code, the earned income disregards
shall
are to not be
deducted from the assistance group's gross earned income in accordance with
rule
5101:1-23-20 of the
Administrative Code when computing the erroneous payment.
(c) When an erroneous payment occurs because
an adverse action was proposed, payments continued without change due to a
timely hearing request, and the hearing decision affirmed the county agency
proposal, the amount of the erroneous payment is the difference between the
amount the assistance group actually received each month, and the amount the
assistance group should have received for each month. When specific amounts of
erroneous payments are stipulated in the hearing decision, those amounts are
binding, in accordance with the rules set forth in division 5101:6 of the
Administrative Code.
(d) Child
support that is assigned to the Ohio department of job and family services
(ODJFS) and which is paid through the child support enforcement agency (CSEA)
shall
is to
be included in the calculation of the erroneous payment. The county agency
shall
is to
determine the exact amounts of the following categories prior to computing the
erroneous payment:
(i) Child support collected
on current obligation.
(ii) Child
support used to reimburse assistance paid to the family.
42 U.S.C.
657
(01/02/06)
(10/1/09)
defines what is reimbursable for child support distribution purposes.
(iii) Assistance provided to the assistance
group.
(iv) Correct amount of OWF
benefits the assistance group should have received. For purposes of this rule
only, this amount shall
is to be referred to as the OWF
entitlement.
(v) Erroneous payment
prior to child support adjustment. The erroneous payment will always equal the
difference between OWF actually paid to the assistance group and the OWF
entitlement.
(vi) Collectible
erroneous payment after child support adjustment.
(vii) The erroneous payment to be collected
after child support adjustment is computed using the table in this paragraph
and one of the two formulas in the paragraphs immediately following the table.
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(K)(J)
What is a grant reduction?
Grant reduction is one of the collection methods set forth in
section 5107.76 of the Revised Code. If
the method of recovery chosen by the county agency is grant reduction, the OWF
cash payment is reduced each month until the total amount of the erroneous
payment is repaid.
(1) The OWF cash
payment may be reduced, provided that for any payment month, the assistance
group shall retain from its combined income (without disregards) and assistance
payment an amount equal to ninety per cent of the payment standard (as set
forth in rule
5101:1-23-20 of the
Administrative Code) for an assistance group of the same composition with no
other income, unless the assistance group volunteers to pay more. The monthly
recovery amount
shall
is to be computed from the income and assistance
payment available in the payment month. Liquid assets may be explored as
well.
(2) If recovery of the
erroneous payment through grant reduction reduces the amount payable to the
assistance group to zero, the members of the assistance group are considered to
be OWF participants.
(3) When an
assistance group is eligible for a monthly OWF payment of at least ten dollars,
but recovery of an erroneous payment reduces the monthly payment to less than
ten dollars, the minimum payment provision set forth in rule
5101:1-23-40 of the
Administrative Code does not apply because the assistance group was eligible
for a cash payment of at least ten dollars prior to adjustment of the
overpayment.
(4) All grant
reductions shall
are to be effected with due regard for the fair
hearing provisions, including prior notice, set forth in division 5101:6 of the
Administrative Code.
(5) If the
assistance group becomes ineligible to participate in OWF, the balance of the
erroneous payment shall
is to be recovered in accordance with the
provisions set forth in section
5107.76 of the Revised
Code.
(L)(K) What if an
assistance group has an erroneous payment and an underpayment?
When an assistance group has both a current erroneous payment
and underpayment as defined in rule
5101:1-23-60 of the
Administrative Code, one may be offset against the other provided the erroneous
payment is not being challenged under the state hearing procedures as set forth
in division 5101:6 of the Administrative Code. There will be no delay in the
issuance of the underpayment in this instance.
(1) The county agency will notify the
assistance group when an underpayment occurs concurrently with the discovery of
an erroneous payment or when there is an outstanding delinquent balance from a
previous erroneous payment. The notice will advise the assistance group of the
underpayment and the amount the county agency proposes to use to offset the
reported or delinquent erroneous payment balance. The assistance group may
exercise its right to a state hearing if it disagrees with the decision of the
county agency to offset the underpayment against the erroneous payment using
the notice. All proposed actions shall
are to be suspended pending the hearing
decision.
(2) In a situation in
which the underpayment amount is greater than the amount of the erroneous
payment, the assistance group shall
is to be issued the difference.
(M)(L) Can an erroneous
payment be recovered from a minor child?
As set forth in section
5107.76 of the Revised Code, if
a minor child was a member of an assistance group that received an erroneous
payment but becomes a member of a new assistance group that does not include a
minor head of household or adult who also was a member of the previous
assistance group, a county agency shall
is not to take
action against the new assistance group to recover the erroneous payment the
previous assistance group received.
(N)(M) IV-A/IV-D
overpayments
(1) Payments made directly to the
assistance group on support orders established or modified prior to December 1,
1986, constitute a IV-D overpayment.
(2) All support orders established or
modified on or after December 1, 1986, shall
are to be paid
through the CSEA. Payments on such orders which are made directly to the
assistance group are not considered child support payments, but are considered
a gift to the assistance group. The overpayment created by the assistance
group's retention of direct payments constitutes a IV-A overpayment.
(3) In all cases, regardless of the date of
the order, payments sent to the assistance group erroneously by the CSEA also
constitute a IV-D overpayment.
Notes
Ohio Admin. Code
5101:1-23-70
Effective:
1/1/2025
Five Year Review (FYR) Dates:
10/1/2024 and
01/01/2030
Promulgated
Under: 119.03
Statutory
Authority: 5107.05,
5107.76
Rule
Amplifies: 5107.05,
5107.76
Prior
Effective Dates: 07/01/1983, 07/11/1983, 11/11/1983, 07/15/1984, 10/01/1984
(Emer.), 12/27/1984, 01/01/1985 (Emer.), 04/01/1985, 04/01/1986, 11/01/1986,
10/01/1987, 04/01/1988 (Emer.), 06/10/1988, 06/30/1988, 07/01/1988 (Emer.),
09/25/1988, 05/01/1991 (Emer.), 07/11/1991, 09/01/1993, 09/01/1994, 06/11/1995,
10/01/1996 (Emer.), 12/15/1996, 05/01/1997, 12/30/1997, 07/01/1998 (Emer.),
09/29/1998, 10/01/1999, 12/01/2003, 02/01/2009, 05/01/2014, 10/01/2016,
12/01/2019
