Supplemental Nutrition Assistance Program (SNAP) Manual

1142.030.00 Establishing Claims

IM-142 December 2, 2005

The Claims Accounting and Restitution System (CARS) is used to establish and track claims. Refer to CARS user guide Registering a Discovery Claim Referral and Establishing a Claim for instructions.

The discovery tracking system tracks food stamp overpayments from discovery through the EU notification of the overpayment (see 1142.045.00 Demand Letters). The discovery tracking system processes and tracks:

  • registration of the discovery claim referral
  • computing the amount of the overpayment
  • attaching the responsible members to the claim
  • moving the claim
  • establishing the claim and generating a demand letter

After investigating the circumstances and determining that an overpayment does exist, enter information about the claim into CARS.

If there is no overpayment, reject the discovery claim referral. This includes rejection of a discovery claim referral if the overpayment is under the threshold, or is outside the look-back period. From the Discovery Add (OVAD) screen, press F5=OVDU. On the Discovery Change (OVDU) screen, change the Status to R (Reject), and enter the reject reason from the CARS Code Sheet. Refer to CARS user guide Rejecting a Discovery Claim Referral for instructions.

To begin the controlled flow to establish the claim:

  • If the decision is entered the same time the discovery claim referral is registered, from the Discovery Add (OVAD) screen, press F6=OVPU to enter the controlled flow.
  • If the discovery claim referred was registered at another time, from the Discovery Change List (OVDL) screen. Select the discovery and press PF5 to enter the controlled flow. The Worksheet Add (OVPU) screen displays. The information discovered regarding the specific claim is entered completing this flow.
  • On the Note Add (OVNA) screen record the circumstances of the claim including verification received and used to determine the reason, amount, and timeframe of the claim. Record in sufficient detail to support the claim decision in a hearing. If the claim is SPV, record the evidence to support this decision.

When the flow is completed, the discovery claim referral is moved for processing overnight. The status is M (Moved). Overnight the claim is established when the demand letter is generated. The status is changed to A (Active).

Refer to CARS user guide Registering a Discovery Claim Referral and Establishing a Claim for complete instructions.

The claim tracking system tracks claims from when they are established, through payment in full. The debtor information is stored and maintained in the claim tracking system.

CARS Process Inquiry Screen Update Screen
Claim Balance OVCS/OVCI Automated
Debtor Information OVDI OVDC
Demand Letter OVLI OVLU
Billing Process OVLB Automated
Payments OVPT OVTA-limited access
Repayment Agreements OVCI OVCC
Fair Hearings OVCI OVCC
Recoupment OVPT Automated
Update debtor Information OVDI OVDC
Terminated Claims OVCS/OVCI OVCC
Closed Claims OVCS/OVCI OVCC
Responsible Members of a claim OVMI OVMD (remove)
OVMA (add)
Claims a DCN is a member OVIM Automated
Treasury Offset OVCS/OVCI Automated
Suspected Program Violation OVCS/OVCI OVCC