M E M O R A N D U M

IM-35 03/03/03 OFFSETTING CLAIMS


SUBJECT:
OFFSETTING CLAIMS
DISCUSSION:
The purpose of this memorandum is to clarify the policy for applying restored food stamp benefits to an outstanding claim balance.  Restored benefits are paid if, through no fault of the household, there is an underissuance.  Restored benefits are issued for a month prior to the month of issuance.

Supplemental benefits are not "restored benefits".   Supplemental benefits are additional food stamp benefits issued in the same month as the month of issuance.  Supplemental benefits cannot be used to offset a claim. 

OFFSET RESTORED BENEFITS

When a household is eligible for restored benefits and there is a claim balance, the restored benefits are applied to the outstanding claim balance.  If the food stamp case is in the Legacy system, the amount of the restored benefits are calculated on the FBCA screen, and the offset is recorded on the OVNA screen.  No entry is made on FSU5.  In FAMIS restored benefits are calculated in the Worker Initiated Calculation Area (WIBCA), and the amount of the offset is entered.  For instructions to calculate restored benefits and enter the offset, go to FAMIS user guide "WIBCA - Calculating a FS Claim or FS Restored Benefits".  The offset benefits for both systems are not automatically posted to a claim. 

To apply offset benefits to an outstanding claim balance, prepare a CARS-2 for the offset benefits and submit to Division of Budget and Finance (DBF), P.O. BOX 1082, Jefferson City, Missouri 65102. 

DO NOT OFFSET BENEFITS

When a household does not make a timely report of a change, an overpayment may exist.  Do not offset any underissuance during this claim period. 

Example:  It is discovered a household did not report income in May, June, July, August, and September.  A discovery claim referral is registered.  In completing a budget for each month of the claim period, it is determined there is an overissuance in July and September, and an underissuance in August.  The household did not timely report income, so there are no restored benefits for August, even though an underissuance exists.  The OVPU-ADD OVERPAYMENT WORKSHEET screen would appear:
 FROM: 07/2001 TO: 09/2001  
CLAIM
GRANT
ELIGIBLE
OVERPAYMENT
 MM/YYYY
AMOUNT 
AMOUNT 
AMOUNT 
07/2001 
334.00 
125.00 
209.00 
08/2001 
334.00 
444.00 
.00 
09/2001 
334.00 
130.00 
204.00

 The claim is established for $413.  The August underissuance does not offset the claim balance.

The OVPU-ADD OVERPAYMENT WORKSHEET, OVPC-WORKSHEET CHANGE, and OVPL-WORKSHEET CHANGE screens no longer display underissuance amounts.  The OVERPAYMENT AMOUNT will be zero.
 
NECESSARY ACTION:
  • Review this memorandum with appropriate staff.
  • Submit a CARS-2 to apply offset benefits to an outstanding claim balance, as appropriate.
NEY
Distribution #6
 
IM-34
[ 2003 Memorandums ]
IM-36