Effective immediately, all food stamp claims entered into the Claims Accounting and Restitution System (CARS) will have demand letters sent the next business day.  This is a change in the current policy.  There is no longer a waiting period to see if the Welfare Investigation Unit (WIU) will pick up the claim to investigate for fraud.  WIU investigators will still look at all Inadvertent Household Error (IHE) claims for possible Intentional Program Violation (IPV), but demand letters are sent the business day after a claim is entered into CARS.

A "Y" in the administrative hearing field no longer prevents a demand letter from being sent.

Demand letters are being sent for existing food stamp claims that are active and have never had a demand letter sent, with the following exceptions:

  • Claims with the following WIU actions (displayed on the OVCS screen) will not have demand letters sent: 20, 30, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 60, 82, 85, 87, and 88.  Also, claims with both WIU action 90 AND legal action 52 will not have demand letters sent. 
  • Agency Error (AE) and IHE claims established before January 1, 2000, will not have a demand letter sent, regardless of the amount of the claim.
  • A demand letter will not be sent to households with an IPV claim established before 1990 if the balance is less than $500 AND the household is not currently receiving food stamps.
If the demand letter for any claim is returned to the county office, follow these procedures.
  •  Type OVLI followed by the DCN and press enter.  The OVLI - LETTER INQUIRY LIST screen is displayed. This screen displays all of the demand letters which have been sent to a specific individual.  It also displays the type of letter and the date it was sent. 
    NOTE:  The initial run of letters for claims that have never had a letter sent will show "CON" (converted) as the letter type.  The date sent will be correct.
  • Type "S" in front of the letter that was returned and press PF5 OVLU.  The OVLU - LETTER DETAIL UPDATE screen appears.

  • Type the date this letter was returned to the County Office and press enter.  The message RETURNED DATE UPDATED appears.
If the returned letter is for an IHE or AE claim, attempt to locate the household and re-mail the letter to the household.

IPV claims must be referred to WIU if the letters are returned and the household is not receiving any assistance from DFS.  Use the form DOI-1 Referral for Investigation.  WIU will try to locate a current address for the household and notify the county office.  Re-mail the letter to the address provided by WIU.

  • Discuss this memorandum with all appropriate staff.
  • Use OVLI and OVLU to record the date any demand letters are returned to the county office as undeliverable.
  • If a demand letter for an IHE or AE claim is returned, attempt to locate the household and re-mail the letter.
  • Refer IPV claims to WIU using the form DOI-1 if a demand letter is returned and the household is not receiving any assistance from DFS.
  • Re-mail the demand letter to the address provided by WIU.
Distribution #6

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