COMMENT DUE DATE:  

January 2, 2008

DATE: 

December 13, 2007

Laura Brown    FSSD    (405) 521-4396

Dena Thayer   PMU Manager   (405) 521-4326

Pat McCracken   PMU Specialist   (405) 522-1017

RE:  

APA WF 07-26

It is very important that you provide your comments regarding the DRAFT COPY of policy by the comment due date. Comments are directed to *STO.LegalServices.Policy@okdhs.org. 

The proposed policy is  Permanent .  This proposal will go to the Commission meeting on

CHAPTER 65. PUBLIC ASSISTANCE PROCEDURES

Subchapter 3. Eligibility for Benefits

OAC 340:65-3-6 [AMENDED]

OAC 340:65-3-6.1 [AMENDED]

OAC 340:65-3-8 [AMENDED]

Subchapter 5. Procedures Relating to Case Changes

Part 3. Procedures for Handling Warrants in Special Circumstances

OAC 340:65-5-15 through 340:65-5-20 [AMENDED]

OAC 340:65-5-21 [REVOKED]

Part 7. Guardianships and, Conservatorships, and Substitute Payees

OAC 340:65-5-66 [NEW]

Part 9. Protective Payments in TANF [REVOKED]

OAC 340:65-5-80 through 340:65-5-81 [REVOKED]

OAC 340:65-5-85 [REVOKED]

OAC 340:65-5-87 [REVOKED]

Subchapter 9. Overpayments and Fraud in Temporary Assistance for Needy Families and State Supplemental Payment Benefits

OAC 340:65-9-1 through 340:65-9-2 [AMENDED]

OAC 340:65-9-3 [REVOKED]

OAC 340:65-9-4 through 340:65-9-8 [AMENDED

SUMMARY:The proposed revisions to Subchapter 3, 5, and 9 of Chapter 65 amend the rules to: (1) provide current information regarding direct deposit procedures and new debit card procedures for the Temporary Assistance for Needy Families (TANF) and State Supplemental Payment (SSP) Programs; (2) remove TANF from the electronic benefits transfer (EBT) rules; (3) remove TANF and SSP payments from warrant procedures since they are now issued by direct deposit or debit card; (4) detail procedures used by the Finance Division and the Office of State Finance for handling warrants; (5) add a new Section about substitute payees for TANF; (6) revoke rules regarding protective payments in TANF; and (7) update overpayment material to include information about the new Oklahoma Program Integrity (OPI) system that is now used to complete overpayments and the percentage of the client's monthly benefit reduction when an overpayment is due to agency error from 5 % to 10 %.

340:65-3-6 is amended to provide current information regarding direct deposit procedures and new debit card procedures for the TANF and SSP Programs.

340:65-3-6.1 is amended to remove TANF from the electronic benefits transfer (EBT) rules.

340:65-3-8 supersedes the emergency rule and, is revised toremove reference to protective payment reviews for TANF.

340:65-5-15 is amended to:(1) show current procedures used by the Finance Division and the Office of State Finance in handling non-receipt of benefits issued by warrant; (2) show current form numbers and names; (3) add clarifying information; and (4) replace outdated language with current terminology.

340:65-5-16 is amended to replace outdated language with current terminology.

340:65-5-17 is amended to add clarifying information and to replace outdated language with current terminology.

340:65-5-18 is amended to:(1) show current procedures used by the Finance Division and the Office of State Finance for handling undeliverable warrants; (2) show current form numbers and names; and (3) replace outdated language with current terminology.

340:65-5-19 is amended to:(1) change the restriction on the reissuance of a warrant to 36 months following the month of its cancellation rather than three years to match language in the state statute; (2) show current procedures used by the Finance Division and the Office of State Finance for handling warrants canceled by statute of limitation; (3) show current form numbers and names; and (4) replace outdated language with current terminology.

340:65-5-20 is amended to:(1) remove reference to TANF payments from warrant procedures; (2) add clarifying language; and (3) show current form numbers.

340:65-5-21 is revoked as TANF benefits are no longer issued by warrant.

340:65-5-66 is a newly created section regarding substitute payees to state whenthe head of the TANF household is a minor, the TANF benefit may be issued to a substitute payee rather than the minor.

340:65-5-80, 340:65-5-81, and 340:65-5-87 are revoked as protective payments are no longer made for TANF recipients.

340:65-5-85 is revoked as protective payees are no longer used for TANF recipients.

340:65-9-1 is amended to: (1) give information about the new Oklahoma Program Integrity (OPI) system that is now used to complete overpayments; (2) show current responsibilities for who writes and establishes overpayments; (3) revise the name of the Family Support Services Division (FSSD) Section that receives overpayments; (4) remove information about overpayments classified in a court of law as fraud; (5) show current form names and numbers; and (6) add clarifying information.

340:65-9-2 is amended to:(1) add clarifying information and updated terminology; and (2) show current form names and numbers.

340:65-9-3 is revoked and still current information is incorporated in 340:65-9-1.

340:65-9-4 is amended to:(1) give information about the new Oklahoma Program Integrity (OPI) system that is now used to complete overpayments; (2) revise the name of the FSSD Section that receives overpayments; (3) replace outdated language with current terminology; and (3) show current form numbers.

340:65-9-5 is amended to show current form names and numbers.

340:65-9-6 is amended to:(1) update the percentage of the client's monthly benefit reduction when an overpayment is due to agency error from 5% to 10%; (2) revise the name of the FSSD Section that receives overpayments; (3) add clarifying language and current terminology; and (4) update form numbers.

340:65-9-7 is amended to:(1) revise the name of the FSSD Section that receives overpayments; and (2) show current procedures when collection of debt efforts are suspended.

340:65-9-8 is amended to:(1) add clarifying information; and (2) show current form numbers.

PERMANENT RULEMAKING APPROVAL IS REQUESTED.

LEGAL AUTHORITY:Commission for Human Services, Article XXV, Sections 2, 3, and 4 of the Oklahoma Constitution; Sections 161 et seq., 185, 190 and 191 of Title 56 of the Oklahoma Statutes; Section 41.19 of Title 62 of the Oklahoma Statutes; and Section 34 of Title 74 of the Oklahoma Statutes.

To:Dena Thayer, Programs Manager

Policy Management Unit

From:Mary Stalnaker, Director

Family Support Services Division

Date:November 6, 2007

Re:Chapter 65. Public Assistance Procedures

Subchapter 3. Eligibility for Benefits

OAC 340:65-3-6 [AMENDED]

OAC 340:65-3-6.1 [AMENDED]

OAC 340:65-3-8 [AMENDED]

Subchapter 5. Procedures Relating to Case Changes

Part 3. Procedures for Handling Warrants in Special Circumstances

OAC 340:65-5-15 [AMENDED]

OAC 340:65-5-16 [AMENDED]

OAC 340:65-5-17 [AMENDED]

OAC 340:65-5-18 [AMENDED]

OAC 340:65-5-19 [AMENDED]

OAC 340:65-5-20 [AMENDED]

OAC 340:65-5-21 [REVOKED]

Part 7. Guardianships and, Conservatorships, and Substitute Payees

OAC 340:65-5-66 [NEW]

Part 9. Protective Payments in TANF [REVOKED]

OAC 340:65-5-80 [REVOKED]

OAC 340:65-5-81 [REVOKED]

OAC 340:65-5-85 [REVOKED]

OAC 340:65-5-87 [REVOKED]

Subchapter 9. Overpayments and Fraud in Temporary Assistance for Needy Families and State Supplemental Payment Benefits

OAC 340:65-9-1 [AMENDED]

OAC 340:65-9-2 [AMENDED]

OAC 340:65-9-3 [REVOKED]

OAC 340:65-9-4 [AMENDED

OAC 340:65-9-5 [AMENDED

OAC 340:65-9-6 [AMENDED

OAC 340:65-9-7 [AMENDED

OAC 340:65-9-8 [AMENDED

APA WF 07-26

Contact:Laura Brown, phone 405-521-4396

A.Brief description of the purpose of the proposed rule:

Purpose.The proposed revisions to Subchapter 3 of Chapter 65 amend the rules to (1) provide current information regarding direct deposit procedures and new debit card procedures for the Temporary Assistance for Needy Families (TANF) and State Supplemental Payment (SSP) Programs; (2) remove TANF from the electronic benefits transfer (EBT) rules; and (3) remove reference to protective payment reviews for TANF.

The proposed revisions to Subchapter 5 of Chapter 65 amend the rules to provide clarifying and updated information that includes:(1) removing TANF and SSP payments from warrant procedures since they are now issued by direct deposit or debit card; (2) showing current form numbers and names; (3) detailing current procedures used by the Finance Division and the Office of State Finance for handling warrants; (4) changing the restriction on the reissuance of a warrant to thirty six months following the month of its cancellation rather than three years to match language in the state statute; (5) replacing outdated language with current terminology; (6) revoking one section that only applied to TANF warrants; (7) adding a new section about substitute payees for TANF; and (8) revoking policy regarding protective payments in TANF.

The proposed revisions to Subchapter 9 of Chapter 65 amend the rules to provide clarifying and updated information regarding overpayment procedures that include:(1) information about the new Oklahoma Program Integrity (OPI) system that is now used to complete overpayments; (2) current responsibilities for who writes and establishes overpayments; (3) revising the name of the Family Support Services Division (FSSD) Section that receives overpayments; (4) removing information about overpayments classified in a court of law as fraud; (5) showing current form names and numbers; (6) updating the percentage of the client's monthly benefit reduction when an overpayment is due to agency error from 5% to 10%; (7) revoking a section regarding procedures for referring overpayments and incorporating still current information into another section; and (8) showing current procedures when collection of debt efforts are suspended.

Strategic Plan impact.The proposed rules achieve OKDHS goals continuously improving systems and processes to achieve OKDHS goals.

Substantive changes.

340:65-3-6 is amended to provide current information regarding direct deposit procedures and new debit card procedures for the Temporary Assistance for Needy Families (TANF) and State Supplemental Payment (SSP) Programs.

340:65-3-6.1 is amended to remove TANF from the electronic benefits transfer (EBT) rules.

340:65-3-8 is amended to remove reference to protective payment reviews for TANF.

340:65-5-15 is amended to (1) show current procedures used by the Finance Division and the Office of State Finance in handling non-receipt of benefits issued by warrant; (2) show current form numbers and names; (3) add clarifying information; and (4) replace outdated language with current terminology.

340:65-5-16 is amended to replace outdated language with current terminology.

340:65-5-17 is amended to add clarifying information and to replace outdated language with current terminology.

340:65-5-18 is amended to:(1) show current procedures used by the Finance Division and the Office of State Finance for handling undeliverable warrants; (2) show current form numbers and names; and (3) replace outdated language with current terminology.

340:65-5-19 is amended to:(1) change the restriction on the reissuance of a warrant to thirty six months following the month of its cancellation rather than three years to match language in the state statute; (2) show current procedures used by the Finance Division and the Office of State Finance for handling warrants canceled by statute of limitation; (3) show current form numbers and names; and (4) replace outdated language with current terminology.

340:65-5-20 is amended to:(1) remove reference to TANF payments from warrant procedures; (2) add clarifying language; and (3) show current form numbers.

340:65-5-21 is revoked.

340:65-5-66 is a newly created section regarding substitute payees to state whenthe head of the TANF household is a minor, the TANF benefit may be issued to a substitute payee rather than the minor.

340:65-5-80 is revoked.

340:65-5-81 is revoked.

340:65-5-85 is revoked.

340:65-5-87 is revoked.

340:65-9-1 is amended to: (1) give information about the new Oklahoma Program Integrity (OPI) system that is now used to complete overpayments; (2) show current responsibilities for who writes and establishes overpayments; (3) revise the name of the Family Support Services Division (FSSD) Section that receives overpayments; (4) remove information about overpayments classified in a court of law as fraud; (5) show current form names and numbers; and (6) add clarifying information.

340:65-9-2 is amended to:(1) add clarifying information and updated terminology and (2) show current form names and numbers.

340:65-9-3 is revoked and still current information is incorporated in 340:65-9-1.

340:65-9-4 is amended to:(1) give information about the new Oklahoma Program Integrity (OPI) system that is now used to complete overpayments; (2) revise the name of the Family Support Services Division (FSSD) Section that receives overpayments; (3) replace outdated language with current terminology; and (3) show current form numbers.

340:65-9-5 is amended to show current form names and numbers.

340:65-9-6 is amended to:(1) update the percentage of the client's monthly benefit reduction when an overpayment is due to agency error from 5% to 10%; (2) revise the name of the Family Support Services Division (FSSD) Section that receives overpayments; (3) add clarifying language and current terminology; and (4) update form numbers.

340:65-9-7 is amended to:(1) revise the name of the Family Support Services Division (FSSD) Section that receives overpayments and (2) show current procedures when collection of debt efforts are suspended.

340:65-9-8 is amended to:(1) add clarifying information and (2) show current form numbers.

Reasons.The proposed revisions are being proposed to provide staff with clear and concise rules to facilitate the accurate delivery of benefits and services to persons who are in need which includes updating terminology and forms, describing current payment methods for benefits as TANF and SSP are no longer issued as warrants, updating information about handling warrants in special circumstances to show current practices used by the Finance Division and the Office of State Finance, describing how overpayments are written and established using the new Oklahoma Program Integrity system, and revoking 340:65-5 Part 9 as protective payments are no longer used for TANF benefits.

Repercussions.If the proposed revisions are not implemented, current practices regarding payment methods and the establishment of overpayments will not be reflected in policy.

Legal authority.Commission for Human Services, Article XXV, Sections 2, 3, and 4 of the Oklahoma Constitution, Sections 161 et seq., 185, 190 and 191 of Title 56 of the Oklahoma Statutes, Section 41.19 of Title 62 of the Oklahoma Statutes, and Section 34 of Title 74 of the Oklahoma Statutes.

Permanent rulemaking approval is requested.

B.A description of the classes of persons who most likely will be affected by the proposed rule, including classes that will bear the costs of the proposed rule, and any information on cost impacts received by the Agency from any private or public entities: The classes of persons most likely to be affected by the proposed rules are clients receiving benefits administered by the Family Support Services Division (FSSD) and OKDHS staff.The affected classes of persons will bear no costs associated with implementation of the rules.

C.A description of the classes of persons who will benefit from the proposed rule: The classes of persons who will benefit are clients receiving benefits administered by the Family Support Services Division (FSSD) and OKDHS staff.

D.A description of the probable economic impact of the proposed rule upon the affected classes of persons or political subdivisions, including a listing of all fee changes and, whenever possible, a separate justification for each: The revised rules do not have an economic impact on the affected entities. There are no fee changes associated with the revised rules.

E.The probable costs and benefits to the Agency and to any other agency of the implementation and enforcement of the proposed rule, the source of revenue to be used for implementation and enforcement of the proposed rule and any anticipated effect on state revenues, including a projected net loss or gain in such revenues if it can be projected by the Agency: The probable cost to OKDHS includes the cost of printing and distributing the rules, which is estimated to be less than $20. The revised rules will result in enhanced delivery of services for clients.

F.A determination whether implementation of the proposed rule will have an impact on any political subdivisions or require their cooperation in implementing or enforcing the rule: The proposed rules do not have an economic impact on any political subdivision, nor will the cooperation of any political subdivisions be required in implementation or enforcement of the rules.

G.A determination whether implementation of the proposed rule will have an adverse economic effect on small business as provided by the Oklahoma Small Business Regulatory Flexibility Act: There are no anticipated adverse effects on small business as provided by the Oklahoma Small Business Regulatory Flexibility Act.

H.An explanation of the measures the Agency has taken to minimize compliance costs and a determination whether there are less costly or non-regulatory methods or less intrusive methods for achieving the purpose of the proposed rule: There are no less costly or nonregulatory methods or less intrusive methods for achieving the purpose of the proposed rules].

I.A determination of the effect of the proposed rule on the public health, safety, and environment and, if the proposed rule is designed to reduce significant risks to the public health, safety, and environment, an explanation of the nature of the risk and to what extent the proposed rule will reduce the risk: Implementation of the proposed rules will reduce risks to the public's health, safety, and environment by facilitating the delivery of benefits and services to persons who are in need.

J.A determination of any detrimental effect on the public health, safety, and environment if the proposed rule is not implemented:If the proposed rules are not implemented, current practices regarding payment methods and the establishment of overpayments will not be reflected in policy which could impact the delivery of benefits and services.

K.The date the rule impact statement was prepared and, if modified, the date modified: Prepared November 6, 2007.

CHANGES FROM THE EMERGENCY RULES EFFECTIVE 11-1-07 (WF 07-18) ARE HIGHLIGHTED IN AQUA

SUBCHAPTER 3. ELIGIBILITY FOR BENEFITS

 

340:65-3-6. Direct deposit Payment method for TANF and SSP benefits

Revised 7-1-01 6-1-08

(a) A client may elect to have his or her When an applicant applies for Temporary Assistance for Needy Families (TANF) benefit or State Supplemental Payment (SSP) deposited directly into his or her checking or savings account benefits, the worker advises the applicant that these benefits are first issued on a debit card.¢ 1The account used for direct deposit must have the payee's name on the account.Direct deposit applies only to regular roll.Supplemental, retroactive, and daily TANF and SSP benefits are not issued through direct deposit.

(1) When a debit card has not previously been issued to the applicant, it is issued when benefits are placed in application status or after benefits are approved.¢ 2When a debit card has previously been issued to the applicant, a new one is not sent.It is activated once benefits are approved.¢ 3

(2) Once the client receives the debit card, he or she must call the customer service telephone number located on the back of the debit card to activate the card and choose a personal identification number (PIN).¢ 4

(3) The client may choose another person to be a secondary cardholder for the benefits.The client must either contact the customer service telephone number located on the back of the debit card to request this or print the alternate cardholder request form from the www.eppicard.com Web site.The client and the secondary cardholder must complete and sign the form and return it to the address on the form before a debit card is issued to the secondary cardholder.After the secondary cardholder receives the debit card, he or she must choose a PIN number before accessing benefits.

(4) When the client advises the Oklahoma Department of Human Services (OKDHS) staff that he or she never received the debit card, the worker checks to see if was returned as undeliverable.¢ 5

(5) There are certain fees a client may be charged when using a debit card.A list of fees can be found at www.eppicard.com.The client is sent information about fees when a debit card is first issued.The client can access account and transaction information on-line at www.eppicard.com free of charge at any time.

(6) If the client fails to activate his or her debit card within 90 calendar days, Affiliated Computer Services (ACS) returns any funds loaded on a debit card to OKDHS.

(b) When the client prefers to receive benefits through direct deposit, he or she must call the ACS Customer Call Center number to request direct deposit. ACS staff mail or fax a direct deposit form to the client to complete and return before benefits can be issued by direct deposit.The client can also obtain a direct deposit form by going to the www.eppicard.com Web site and printing it off.

(1) Upon request by the The client for direct deposit, the social services specialist provides Form ADM-110, Direct Deposit Enrollment Form, to the client for completion.The bank or savings account number provided on the form must be verified by using must complete the direct deposit form, provide a voided check or through confirmation from the banking institution a savings account deposit slip, and return them to the address on the form.Deposit slips may not be used for account number verification because they often include internal bank routing codes unnecessary for direct deposit.

(2) As soon as the bank account number is verified, the direct deposit information is referred for supervisor approval. The transaction BANK is used to process the approval.After direct deposit information is entered in the computer, Data Services Division and the fiscal agent do an electronic account confirmation which is a 14-21 day process.Once electronic confirmation of the account occurs, direct deposit begins the next effective date.¢ 1Once the form is completed and account information confirmed, ACS has five working days to enter direct deposit information in the system.

(3) Benefits are changed to direct deposit for the next payment due after direct deposit information is entered in the system.

(4) Funds cannot be transferred from a debit card to direct deposit.

(3)(c) The client's cash assistance benefit is deposited in the client's checking or savings account on the first banking day of each month or loaded on the client's debit card on the first day of each month.

(1) The funds are available for withdrawal the first banking day of each month after deposit.A notice is issued advising the client of the amount deposited, the bank where the deposit was made, and the date funds are available.

(42) After the monthly benefit is deposited in the payee's client's account or loaded on the debit card, the Agency OKDHS is not responsible if someone other than the payee withdraws the funds.Banking regulations govern withdrawals.

(3) Clients are encouraged to be prudent about giving withdrawal privileges or debit card access to other people.

(5)(d) A The client may withdraw from the switch from direct deposit procedure to the debit card or from the debit card to direct deposit by completing and signing ADM-110 authorizing cancellation calling the ACS Customer Call Center to request the change and following directions given by ACS staff.The cancellation is referred for supervisor approval and for updating the BANK transaction.

(be) In rare instances, unexpected developments When problems occur with direct deposit or debit card deposits,.Procedures procedures for dealing with these developments problems are detailed in (1)-(65) of this subsection.

(1) Returned item.When direct deposit cannot be accomplished for a monthly benefit, the county office is notified through its electronic mailbox.A warrant is automatically generated and mailed to the client's address.When an item is returned, direct deposit is suspended by the State Office.No further direct deposits are made until the county office reinitiates direct deposit by updating the direct deposit file ACS attempts to contact the client to obtain current banking information.When the client fails to provide current information or five days elapse without contact, ACS converts the payment method to a debit card.If the client wishes to receive direct deposit again, the client must complete a new direct deposit form and provide current account information.

(2) Deposit not made.If a client reports that a deposit was not made to his or her account or loaded on the debit card, the Office of Finance is notified immediately the client reports this to the ACS Customer Call Center.The Office of Finance investigates what happened to the direct deposit.When it is verified by the Office of Finance that direct deposit did not occur, a warrant is issued and mailed to the payee.If the Office of Finance verifies that direct deposit did occur properly, the county office is notified.ACS handles any communication with banking institutions or MasterCard and then contacts the client regarding resolution.

(3) Direct deposits made after payee's death.Payments may be made by direct deposit or debit card after the death of the payee.When a direct deposit payment is made after the death of the payee for which the payee is not eligible, the Office of Finance attempts to retrieve the overpaid funds from the payee's bank account.If the funds have already been removed and cannot be retrieved, the county office is notified to establish an overpayment may be established against the estate.¢ 6

(4) Case closure.When a case cash benefit is closed, the case closure update action automatically closes out direct deposit or debit card payments.If the client later reapplies and wants direct deposit, another enrollment form must be completed and processed.

(A) If a case When the client's cash benefit is closed due to transfer of eligibility to another TANF or SSP case, direct deposit or debit card deposit is automatically transferred to the new case provided the Social Security number (SSN) client number of the payee in the closed and new case is the same.¢ 2

(B) When the client's cash benefit is closed and he or she later reapplies and is approved with the same client number, the previously chosen payment method is used to issue the cash benefit.The client must call ACS Customer Call Center to change the payment method.

(5) Payee change.Direct deposit uses the payee's SSN.When the payee for the cash benefit changes for any reason, direct deposit automatically ends for the case unless it is reestablished under the new or corrected SSN he or she is assigned a new client number and a debit card is issued if one has not previously been issued for the new client number.The client must call the ACS Customer Call Center to set up direct deposit if he or she prefers that payment method.¢ 4The new payee does not have access to benefits issued prior to the payee change.

INSTRUCTIONS TO STAFF 340:65-3-6

Revised 7-1-01 6-1-08

1.(a) The county office is notified of any problems discovered during the electronic confirmation process which would preclude direct deposit.The county office is responsible for notifying the client of the problem(s).When the person receiving State Supplemental Payment (SSP) benefits is under age 18 and has a legal or natural guardian, the worker codes the case to show that the parent or guardian is the payee instead of the child.This allows the debit card to issue in the name of the legal or natural guardian.In order to do this, the worker must choose in the Household tab of the Family Assistance/Client Services (FACS) Interview Notebook:

(1) "applicant or recipient with guardian, conservator, or substitute payee" in the "relationship to payee" field for the child;

(2) "applicant, recipient payee, or head of household" in the "relationship to payee" field for the parent or guardian; and

(3) "income/resources are not considered for benefit computation" in the "status" field for the parent or guardian.

(b) When the person coded as the payee on the Temporary Assistance for Needy Families (TANF) benefits is a minor, the minor must be shown as payee for the benefits so the minor's lifetime limit of 60 months receipt of TANF can be tracked.When there is a substitute payee, the worker enters in the Family Assistance/Client Services (FACS) Interview Notebook Case Information tab the name of the substitute payee in the "guardian, substitute payee, conservator, authorized representative, other" field and "substitute payee" in the "responsible person, or extra address" field.The substitute payee is the secondary cardholder for the TANF benefits.

2.(a) When the client has never been issued a debit card but has been issued a client number because of previous receipt of TANF, SSP or another Oklahoma Department of Human Services (OKDHS) benefit, a debit card is mailed when benefits are in application status.

(1) The client number is the primary unique identifier used for case numbers assigned by OKDHS.This includes case numbers assigned for TANF, SSP, and child support payments issued by the Child Support Enforcement Division (CSED).

(2) The client number may also be called the Client ID (CID), Department Client Number (DCN), or the Recipient ID (RID).If more than one client number is issued for the same person, the worker opens a Remedy ticket to the Family Support Help Desk to request help in collapsing the numbers to one client number.

(3) The worker checks whether the client number is the same by entering CMC space case number.The client number is also on the first page of the person's EF screen.

(b) When the applicant has never received benefits before, a client number is not assigned until after benefits are certified.In this instance, a debit card is not mailed until after benefits are approved.

(c) When the debit card is mailed to the client, Affiliated Computer Services (ACS) also includes three other collateral documents that are produced by ACS.They are Form ACS-OK-103 "Oklahoma MasterCard Card Terms of Use," Form ACS-OK-M01, "Enjoy the Benefits of Your New Oklahoma Debit MasterCard," and Form ACS-OK-104, "Your Oklahoma Debit MasterCard Card."These forms can be viewed online at www.eppicard.com.

3(a) If the client no longer has the previously issued debit card, he or she must call ACS Customer Call Centerto request a new card at 1-888-401-9843.

(b) The client may receive one free replacement card per calendar year.If the free replacement has already been issued, the client is charged $4.00 for the card replacement.

4.The ACS Customer Call Center number is 1-888-401-9843.

5.(a) The worker checks to see if a debit card returned by entering BN space the case number.If there is an "EW" benefit and the "type issuance" field shows "CR," this means that the client's debit card and payment were returned to OKDHS or the money was expunged from the debit card.

(b) If the card was returned and the client's address has changed, the worker updates the client's address.This action causes the debit card to be reissued to the new address.

(c) If the address has not changed, the client must call ACS to report a lost or stolen card.ACS must then reissue the debit card.

6.The overpayment may be established by the worker or the Family Support Services Division Benefit Integrity and Recovery Section depending on the amount of the overpayment and whether it is due to agency or client error.See OAC 340:65-9 for overpayment procedures.

340:65-3-6.1. Electronic Benefits Transfer (EBT)

Revised 5-11-01 6-1-08

Food stamp, Temporary Assistance for Needy Families (TANF), and child care benefits are delivered by a statewide Electronic Benefits Transfer (EBT) system.¢ 1 through 3

INSTRUCTIONS TO STAFF 340:65-3-6.1

Revised 9-3-04 6-1-08

1.(a) Electronic benefits transfer (EBT).

(1) EBT provides an electronic method to deliver benefits to clients eligible Temporary Assistance for Needy Families (TANF), for food stamp, and child care clients benefits.The EBT system credits benefits to the client's TANF and food stamp accounts benefit account.It is also a time and attendance tracking and provider payment system for clients receiving child care clients benefits.EBT provides access to these benefits through the use of a debit card called Access Oklahoma and a personal identification number (PIN).

(2) The county director or designee orders Access Oklahoma cards by calling Affiliated Computer Services (ACS) at (405)-947-2743 or (405)-947‑2700.Cards are sent Federal Express two-day delivery.In emergencies the cards are sent by overnight mail.All cards must be kept in a secure location and a daily issuance card report completed.

(b) Training.EBT training is provided to clients and designated authorized representatives through the use of videos.The videos are available in English, Spanish, Vietnamese, open-caption English, and visually-impaired English.Video tapes are requested from the Finance Division Electronic Benefits Disbursement (EBD) Payment Systems (EPS) Unit.

(1) Effective training is the best defense against repeated card replacements.County directors are encouraged to monitor EBT training to determine its effectiveness.

(2) Finance Division EBD EPS staff are available to visit county offices human services centers (HSC) to assist in training new employees in EBT specialists and in the use of the Administrative Terminal (AT) system.County office HSC training of clients may be conducted by any staff member familiar with EBT.

(A) If a client has a particular problem with training using his or her EBT card appropriately, he or she may be asked to view the video again.See OAC 340:40-10-3 when a client receiving child care benefits misuses an EBT card.

(B) An authorized representative may be designated by the client in writing for the food stamp or child care benefits only or an additional card holder may be designated for the TANF cash benefits on the application or review form or by signing a statement to this effect.

(C) To review or enter information concerning an additional card holder, refer to the EBTU transaction by viewing M space EBTU.An authorized representative or additional card holder attends training and is issued his or her own card.

(C) Clients eligible for a State Supplemental Payment (SSP) who also receive food stamp benefits may require additional training, since SSP warrants are delivered in the mail and food stamp benefits are accessed with an EBT card.

(c) Access Oklahoma card.An The EBT specialist issues an Access Oklahoma card is issued to the person whose name appears on the card.Identity after the EBT specialist verifies the identity of that person must be verified before an initial or replacement card is issued.Government-issued identification with a photograph is best but not required as any method used to identify an individual a person for program purposes is acceptable.An individual The person selects his or her own PIN when an initial or replacement card is issued.

(1) Initial issuance cards The EBT specialist issues an initial EBT card for food stamp and TANF benefits are immediately online and may be used as soon as benefits are sent to JP Morgan EFT Services or child care benefits after these benefits are placed in application status and the client views the EBT video.Cards for child care benefits are issued upon application.

(2) The EBT specialist issues an initial EBT card for an authorized representative after the worker completes the EBTU transaction and the authorized representative views the EBT video.

(3) Since providers are not paid until the worker approves the application for child care benefits is approved, authorizations must be completed in a timely manner.Child care providers have the right to decline serving children receiving Oklahoma Department of Human Services (OKDHS) children child care benefits until an approval is received.

(24) The person whose name appears on the EBT card must be the person who requests a replacement card.OKDHS staff must issue a replacement card within two business days of the client's request.The two business day time frame starts after the client requests card cancellation and asks HSC staff to issue another card.Replacement cards may take up to one hour before they are activated.

(A) When the EBT card is lost, stolen, or destroyed, the client must go to the local HSC to obtain a replacement card.The EBT specialist only gives the replacement card to the person whose name appears on the EBT card.

(B) Before When the EBT card is stolen, it is best if the client calls ACS Customer Call Center at 1-888-328-6551 to cancel the EBT card before going to the HSC to request a replacement card is issued for a TANF or food stamp client, the active card must be canceled by the client.If the active card has not been canceled, the EBT AT does not allow the EBT specialist to issue another card.The client must call the JP Morgan EFT Services HelpDesk 1‑888‑328-6551as they recordWhen the client goes to the HSC first, the EBT specialist cancels the EBT card through the AT before issuing a new EBT card.When the client calls ACS first, in addition to cancelling the EBT card, ACS staff records:

(i) the reason and circumstances for the request for cancellation and the exact date and time the call is received.This provides a tracking mechanism for any disputes which could arise if the client claims that benefits were taken from the account after the card was reported lost or stolen.

(A)(ii) A client who calls the JP Morgan EFT Services HelpDesk must identify himself or herself with personal what information and the client provided to identify himself or herself.The client is frequently asked about the last place he or she used the card, the amount of the purchase, and where he or she usually shops.This further documents the report and assists law enforcement officials in efforts to determine if EBT card trafficking is involved.To cancel a card, the client who receives:

(i)(C) For child care benefits, only must contact his or her local county office; the EBT specialist cancels and replaces the EBT card for the client or authorized representative.If the authorized representative has been deactivated on EBTU, the client must designate an authorized representative in writing again before the EBT specialist issues a replacement card.

(ii) food stamp or TANF benefits must call the JP Morgan EFT Services HelpDesk; and

(iii) child care benefits and food stamp or TANF benefits must call the JP Morgan EFT Services HelpDesk to cancel all benefits.

(B) OKDHS is required to issue a replacement card within two business days of the request to the county office.The two business day timeframe starts when the card has been canceled by the client and the county office has been requested to issue another card.

(CD) The county director may require clients receiving food stamp and TANF clients benefits, except those who return unusable cards, to view the training video and complete Form FSS-4, Electronic Benefit Transfer (EBT) Questions for Temporary Assistance for Needy Families (TANF) and/or Food Stamps, to demonstrate their understanding of the correct usage of the EBT card.This process may be used each time the food stamp or TANF client requests again before the EBT specialist issues a replacement card.If necessary, the worker may ask the questions and complete Form FSS-4 on behalf of the client.Clients who do not correctly answer the questions on Form FSS-4 may be required to view the video again and complete another Form FSS-4 before a card is issued.Completed Forms FSS-4 may be filed at the county director's discretion.

(i) Cards that are demagnetized or in an unusable condition are replaced the day the cards are returned to the county office HSC.

(ii) Cards reported as demagnetized or unusable that are not returned to the county office HSC are replaced within two business days.

(iii) All other replacement cards are replaced within two business days.

(d) Benefit Food benefit issuance.Benefits Regular roll food benefits are issued on a staggered schedule.

(1) TANF and food stamp benefits are issued on the 1^st day of the month if the last digit of the C case number is odd, and on the 2^nd day of the month if the last digit is even.

(2) State Supplemental Payment (SSP) cases are issued food stamp benefits on the 3^rd day of the month.

(A)(1) Emergency OKDHS sends emergency food stamp benefits are sent to JP Morgan EFT Services ACS on-line when the case is certified.

(B)(2) Regular OKDHS sends regular roll benefits are sent to JP Morgan EFT Services ACS after deadline each month.

(C)(3) Benefits for cases certified during the 1-1 period between deadline and the first of the following month are sent the night of certification for the month of certification.Benefits for the next month are not sent until the night of the first working day of the month.

(D)(4) When benefits are sent to JP Morgan EFT Services ACS, the status block on the BN screen changes from T to Z.Refer to the BN transaction by entering M space BN.When benefits are posted by JP Morgan EFT Services ACS, the status block changes to P.

(e) Payee change.When the payee changes on a case, the worker determines whether to give the new payee access to the current account balance before the change is made.

(1) If When the new payee needs access to the balance in the food stamp or TANF benefit account, he or she must be shown as the authorized representative first on the Family Assistance/Client Services (FACS) system and then on the EBTU screen.

(2) A card must be issued to the authorized representative.FACS is then updated to show the new payee.

(3) Once the old benefits are depleted, the new payee is removed as the authorized representative and another card is issued.

(4) As soon as an authorized representative is removed from FACS, his or her card is deactivated automatically.

(5) A payee removed from a case is able to access past benefits in the EBT account that have not been used as long as his or her card is active.

(f) Dormant accounts Food benefits not used within the last 90 days.Accounts with Food benefits which have not been debited used within the last 75 90 calendar days are considered dormant stale benefits.A notice Form 08OP014E, Important! EBT Inactivity and Collection of Debt Notice, is automatically sent to the client notifying him or her that the account EBT card has not been accessed for 75 used during the last 90 days and if the card is not used within 14 days from the date of the notice, the EBT account will be closed.The form states there are two possible actions that may be taken on the account.

(1) The notice advises the client that he or she is still eligible for must use the benefits in the account, and to contact the local county office to reactivate the benefits within 12 months of issuance or they are automatically removed.The client is advised to contact the local HSC if he or she has problems using the EBT card.The case record must document the reason the client did not access the benefits and the reason the benefits have been reactivated.

(2) If the client has a food benefit overpayment and does not contact the Family Support Services Division (FSSD) Benefit Integrity and Recovery Section within 30 days of receiving the form, remaining benefits may be used as a payment on the food benefit debt.

(g) Expunged benefits.Food stamp and TANF benefits are expunged from accounts not debited in 365 days.In most instances expunged benefits are not reinstated.If a case terminates benefits close and re-opens then reopen, it is possible for the benefits to be expunged before the client can access them.If this occurs, the worker must e-mail or call the:

(1) Finance Division EBD Unit to request the account be reactivated; and

(2) Family Support Services Division FSSD Food Stamp Section to reinstate the benefits.

(h) Out-of-state moves.The Access Oklahoma card may be used to access TANF and/or food stamp benefits in most states.Most major retailers accept the Access Oklahoma card.

(1) If a client notifies the worker he or she is moving or has moved to another state, the worker informs the client to use the Access Oklahoma card in Oklahoma before leaving the state or contact the state agency where he or she has moved to locate a retailer that will accept the Access Oklahoma card.

(2) The worker may contact the Finance Division EBD EPS Unit to assist the household in locating a retailer that accepts the Access Oklahoma card.

2.(i) Separation of duties.Federal regulations require a separation of duties between individuals persons who certify benefits, issue EBT cards, and have access to the EBT AT.This protects employees from any appearance of inappropriate conduct in benefit issuance.

(1) If the county office HSC does not have sufficient staff to maintain a separation of duties for these tasks, the Finance Division EBD Unit EPS Unit may provide Off-Site EBT specialists (OSS) to assist in card issuance.

(2) To implement this process in a county, the county director must contact the Finance Division EBD Project Director director of the EPS Unit to make the request.

(3) The county director is notified of the approval decision.A description of responsibilities and instructions for the county EBT specialists and OSS is provided along with the name and phone number of the OSS assigned.County EBT specialists:

(1)(A) continue to train clients, authorized representatives, and additional card holders;

(2)(B) operate the EBT AT with inquiry only access;

(3)(C) maintain card inventory records;

(4)(D) operate the embosser; and

(5)(E) assist in PIN selection.

3.(j) Timely reporting of changes.The worker must explain to clients the necessity of reporting timely changes of address and shelter expense so the correct amount of benefits are issued.When In addition to updating computer fields when a change of address or shelter expense is reported, the worker must also update the FACS record Case Notes to record reported changes to ensure the provision of services to clients and case accuracy.

 

340:65-3-8. Determination of continuing eligibility

Revised 11-1-07 6-1-08

(a) Determination of continuing eligibility.Eligibility determination Determining continuing eligibility is a continuing process which must be carried out at appropriate intervals.The appropriate interval for reviewing eligibility depends on the type(s) type of benefit(s) benefit received.An eligibility review may be scheduled to synchronize with other benefit reviews.The worker is responsible for:

(1) advising the recipient at each contact of the recipient's responsibility to report changes within ten calendar days of the date the change becomes known;

(2) making contacts at unspecified intervals to ensure continuing eligibility;

(3) synchronizing the review dates for all benefits received by the household whenever possible;¢ 1 and

(34) determining continuing eligibility.

(b) Eligibility review or recertification forms.Form 08MP001E, Request for Benefits, Form 08MP002E, Eligibility Information for Benefits, and Form 08MP003E, Responsibilities and Signature for Benefits, are used as the review or recertification forms for food benefits, subsidized child care benefits, Temporary Assistance for Needy Families (TANF), State Supplemental Payment (SSP), or SoonerCare (Medicaid) benefits.Other forms that may be used include:

(1) computer-generated Form 08MA007E, Recertification of Eligibility for SoonerCare Health Benefits, for pregnant women and families with children approved for SoonerCare (Medicaid) benefits;

(2) computer-generated Form 08MP004E, Benefit Review Report, for persons subject to benefit review.These may include recipients of food, child care, or SoonerCare (Medicaid) benefits;¢ 2 or

(3) Form 08MA017E, SSI-DCP Service Plan, for children receiving Supplemental Security Income-Disabled Children's Program (SSI-DCP) services per OAC 340:70‑8-1.

(c) Signature requirements.The review or recertification form must be signed by the recipient, guardian, or a person acting on the recipient's behalf, such as an authorized representative or a person with power-of-attorney.TANF reviewsmust be signed by the recipient.If the recipient is living with his or her spouse, both must sign the review form.The only exception to the signature requirement is for a SoonerCare (Medicaid) review completed over the telephone using Form 08MA007E or Form 08MP004E.¢ 3

(A) (d) Review or recertification time frames.A periodic review of eligibility is completed at 12-month intervals for: or recertification time frame varies depending on the program.¢ 4

(1) The worker completes a review at six month intervals with a:

(i)(A) a Temporary Assistance for Needy Families (TANF) recipient except when six-month intervals are required due to:

(I) protective payments;¢ 5

(Ii) pending required immunizations;

(IIIii) payment standard reductions due to because of intentional program violations;

(IViii) hardship extension approvals;

(Viv) earned income;

(VIv) a work-eligible individual person exempt from TANF Work activities due to because of incapacity; or¢ 65

(VIIvi) a work-eligible individual person exempt from TANF Work activities due to caring to care for an disabled family member living in the household;¢ 65

(B) child care recipient who is receiving child care benefits because of a protective or preventive reason per OAC 340:40-7-8; or

(C) food benefit recipient subject to semi-annual benefit reporting per OAC 340:50-9-5(i).

(2) The worker completes a review or recertification at 12-month intervals with a:

(A) TANF recipient unless an earlier review date is warranted;

(ii)(B) a State Supplemental Payment (SSP) recipient based on the review of need for Health Benefits SoonerCare (Medicaid);

(iii)(C) a child receiving SoonerCare (Medicaid) who is in state or tribal custody;

(iv)(D) child care benefits except when:

(I) there is an expected or reported change in the days and hours child care is needed;

(II) there is an anticipated change in income; or

(III) protective or preventive child care is approved recipient unless an earlier review date is warranted per OAC 340:40-9-1;

(v)(E) a non-public assistance (non-PA) food benefit household, unless the household contains an able-bodied adult without dependents who is not meeting work requirements or is not otherwise exempt, or all adult household members are elderly or disabled with no earned income who is subject to semi-annual benefit reporting per OAC 340:50-9-5(i) must complete a recertification form.A benefit review is completed at six-month intervals by sending Form 08MP004E, Benefit Review Report, to the household in the fifth Non-PA food benefit recipients subject to annual benefit reporting must complete Form 08MP004E in the 11^th month of certification; and ¢ 76 or

(vi)(F) Health Benefits recipients except those who are SoonerCare (Medicaid) recipient unless benefits are approved for less than 12 months.A benefit review is completed at 12-month intervals by sending Form 08MP004E, to the recipient in the 11th month of certification.

(B)(3) A periodic review of eligibility is completed The worker completes a food benefit recertification form at 24-month intervals for a non-PA food benefit household with all adult members elderly or disabled with no earned income who is subject to annual benefit reporting per OAC 340:50-9-5(g).A benefit review is completed at 12-month intervals by sending Form 08MP004E to the household in the 11^th month of certification.

(e) Interview requirements.Whether an interview is required varies depending on the program.¢ 87

(1) A face-to-face interview is required for the:

(A) Food Stamp Program at recertification.Exceptions are found at OAC40:50‑3-2(b);

(B) TANF Program; or

(C) SSI-DCP service plan review.

(2) A telephone or face-to-face interview is required for the Child Care Program review.

(3) An interview is not required for any of the SoonerCare (Medicaid) programs as long as the review form is complete, including the signature, all required verification provided, and none of the information is questionable.When information is not complete or is questionable, the worker contacts the recipient to obtain needed information.¢ 98

INSTRUCTIONS TO STAFF 340:65-3-8

Revised 11-1-07 6-1-08

1.When the recipient is a benefit review reporter, benefits must be synchronized.

2.Benefit review reporters of food, child care, and SoonerCare (Medicaid) benefits are described in (1) - (2) of this Instruction.

(1) The recipient's benefit reporting status is computer-determined for each benefit.If applicable, the eligibility notebook on the Family Assistance/Client Services (FACS) system is automatically updated to reflect the recipient's reporter status in the Food Stamps, Social Services, and/or Medical Financial tabs.

(A) For semi-annual reporters, a computer-generated Form 08MP004E, Benefit Review Report, is sent to the recipient in the fifth month of certification.

(B) For annual benefit reporters, a computer-generated Form 08MP004E is sent to the recipient in the 11^th month of certification or review.

(2) When Form 08MP004E is returned to the human services center (HSC), the worker determines if it is complete for each benefit and has all required verification.

(A) For each benefit with complete information and all verification, the worker:

(i) processes all changes;

(ii) updates the benefit report action field in the Food Stamps, Social Services, and/or Medical Financial tabs with C; and

(iii) enters the date the action is taken.

(B) If the information for any benefit is incomplete or lacking all required verification, the worker:

(i) updates the benefit report action field in the eligibility notebook on FACS in the Food Stamps, Social Services, and/or Medical Financial tabs with an I indicating an incomplete form; and

(ii) enters the date action is taken.

(C) If Form 08MP004E is not returned to the local HSC office, the benefit report action field remains blank.When this field remains blank or shows an I at negative action deadline, the benefit automatically closes the next effective date with reason code 36S.If Form 08MP004E is incomplete for one benefit but complete for others, only the benefit with incomplete information is closed.

(D) During the period between negative action deadline and the last day of the 13^th month for annual reporters or the last day of the seventh month for semi-annual reporters, the worker may reopen closed benefits when the completed Form 08MP004E and/or required verifications are received.

(i) Any required changes are processed along with the action to reopen benefits using R in the action taken field and 18O in the reason code field.It is also necessary to update the benefit type and status fields for those persons included in the benefit.

(ii) In the event the completed Form 08MP004E and/or required verifications are received in the 14^th month or later for annual reporters, or the eighth month or later for semi-annual reporters, the recipient or household must re-apply.If the worker fails to take action in a timely manner and benefits subsequently close, normal reopening processes, using reason code 18A, are used.

(iii) Benefits in reporter status are displayed on CWA Report 17 for tracking purposes the month after Form 08MP004E is sent to the recipient.

(iv) Benefits are no longer displayed on CWA Report 17 when the benefit report action field is updated with C for complete.

(v) If the benefit report action field remains blank or I for incomplete, the benefit remains on CWA Report 17 until the benefits close at negative action deadline.

3.Any additional or substantiating information secured is documented on the review form.No additional information is entered after the recipient signs the review form.

4.(a) For food benefit rules see OAC 340:50-9-5 regarding benefit reviews and OAC 340:50-9-6 regarding recertifications.

(b) For SoonerCare (Medicaid) rules see:

(1) OAC 317:35-6-61 for SoonerCare (Medicaid) benefits for pregnant women and families with children;

(2) OAC 317:35-7-61 for SoonerCare (Medicaid) programs that categorically relate to the aged, blind, and disabled population such as:

(A) State Supplemental Payment (SSP);

(B) Qualified Medicare Beneficiary (QMB);

(C) Specified Low-Income Medicare Beneficiary (SLMB);

(D) Qualified Disabled and Working Individuals (QDWI); or

(E) Qualified Medicare Beneficiary Plus (QMBP);

(3) OAC 317:35-15-7 and OAC 317:35-15-9 for Personal Care;

(4) OAC 317:35-17-12 and OAC 317:35-17-15 for Advantage Waiver; and

(5) OAC 317:35-19-22 and OAC 317:35-19-23 for nursing facility services.

(c) For child care benefit rules see OAC 340:40-9-1;

(d) TANF reviews are completed at 12 month intervals unless an earlier review date is warranted.During the interview the recipient and worker discuss the recipient's current situation and determine what additional facts are needed to determine continued eligibility.In the course of this discussion, agreement is reached as to what additional information must be secured, if any, and whether the recipient or the worker obtains this additional information.For eligibility rules for TANF benefits see OAC 340:10.

(1) If the recipient or recipient's spouse who lives in the home, or the recipient's parents when applicable, refuse to give permission for gathering additional information or substantiation of information when necessary, continued eligibility cannot be established constituting a request for discontinuance of assistance.

(2) If the recipient, or recipient's spouse who lives in the home, or the recipient's parents, when applicable, refuse to sign Form 08AD060E, Request for Release of Information, continued eligibility cannot be established constituting a request for discontinuance of assistance.

(3) Whenever assistance is discontinued because of refusal to give permission or refusal to sign Form 08AD060E, the situation must be documented in FACS under Case Notes.

(4) The worker updates FACS to show the date the review is completed and any other action being processed.If advance notice of proposed action is necessary, see OAC 340:65-5-1.

5.Refer to OAC 340:65-5-80 for information concerning protective payments in TANF.

65.Refer to OAC 340:10-2-1 for information regarding work eligible individuals.

76.The recertification forms include Form 08MP001E, Request for Benefits, Form 08MP002E, Eligibility Information for Benefits, and Form 08MP003E, Responsibilities and Signature for Benefits.

87.When an interview is required, the worker reviews the variable conditions of eligibility with the recipient.If an interview is not required, the worker evaluates the information contained on the review form and the data exchange screens to determine if changes are needed.If information is questionable, the worker may determine that an interview is needed.Refer to OAC 340:65‑3‑4 for home visit requirements and information about data exchange screens.

98.(a) When the worker must contact the recipient to determine continued eligibility, the contact can be in person or over the telephone.The worker documents all factors of eligibility and any contact with the recipient in the Family Assistance/Client Services (FACS) Case Notes.

(b) When the recipient receives some benefits that require an interview and some that do not, an interview must be completed for the benefits that require an interview before the review is completed.The worker may complete the review for benefits that do not require an interview before the interview is completed.

 

SUBCHAPTER 5. PROCEDURES RELATING TO CASE CHANGES

 

PART 3. PROCEDURES FOR HANDLING WARRANTS

IN SPECIAL CIRCUMSTANCES

 

340:65-5-15. Non-receipt of benefits issued by warrant

Revised 7-1-01 6-1-08

(a) A client or vendor who reports benefit from a warrant has not been received due to loss, theft, mutilation, or non-receipt is required by Section 34 of Title 74 of the Oklahoma Statutes, 1996, to complete Form ADM-44 10AD044E, Affidavit of Lost or Destroyed Warrant, or the Office of State Finance's (OSF) Form 20R, Warrant Replacement Request, before a replacement warrant may be issued per Section 34 of Title 74 of the Oklahoma Statutes.Original signatures must be on all copies of the form.

(b) The only circumstances in which completion Completion of Form ADM‑44 10AD044E or OSF Form 20R is not required are outlined in paragraphs (1)-(2) of this subsection. when:

(1) A a sufficient portion of a burned or mutilated warrant remains intact so the warrant can be positively identified and to ensure the client could not have redeemed the missing portion.; or¢ 1

(2) If the original warrant is being retained by a law enforcement agency,.that That agency must:

(A) submit a letter on its letterhead to the Office of Oklahoma Department of Human Services (OKDHS) Finance Division stating the warrant is being held as evidence and will not be given to the payee under any circumstance, but will be returned to the Office of OKDHS Finance Division for disposition at the conclusion of their investigation.; and

(B) A attach a copy of the warrant, front and back, must be included with the letter and the letter must be written on that agency's letterhead.

(c) The client is advised to not cash the original warrant without first notifying his or her social services specialist should worker if it be is located after Form ADM-44 10AD044E or Form OSF 20R has been signed.¢ 2Any attempt to cash the warrant will result in the State Treasurer returning the unpaid warrant to the second endorser, who.The second endorser has recourse against the client to repay the amount of the warrant, plus any returned check charges imposed by the second endorser.

(d) If the payee is a company rather than an individual, an employee a duly authorized agent of the company must sign Form 10AD044E or Form OSF 20R on behalf of the payee giving the title of the position he or she holds with the company.Original signatures must be on all copies of the form.Form ADM-44is prepared using the amount of the warrant.

(e) If the warrant is outstanding, the client or payee may sign a notarized statement requesting payment on the warrant be stopped, and a replacement issued once it is confirmed the warrant is canceled by statute of limitation.When the client signs using an X, his or her mark must be witnessed by two persons giving their complete names and addresses beside each place the client used a mark.

(f) Upon receipt of Form ADM-44 10AD044E or Form OSF 20R, the Office of OKDHS Finance Division staff determines if the warrant has been cashed or if it remains outstanding.If the warrant has not been cashed, the Office of OKDHS Finance Division staff sends a stop payment order to the State Treasurer.Upon receipt of confirmation from the State Treasurer, the Office of either the OKDHS Finance Division staff or OSF staff issues a replacement warrant.

(gf) If the warrant has been cashed, the Office of OKDHS Finance Division staff obtains a copy of the paid warrant and sends it to the county office human services center (HSC) for signature comparison. with An Form 10AD045E, Affidavit of Forgery Forged Endorsement and Postal Inquiry Form for the U.S. Postal Inspection Service is also sent Form 10AD046E, Investigation Questionnaire.The worker instructs the client or payee is instructed to examine the endorsement carefully and is warned warns him or her of the seriousness of making true and accurate statements concerning whether:

(1)the endorsement is forged,;

(2) if he or she gave someone permission to cash the warrant,; and

(3) if they he or she received benefit from the warrant whether they endorsed and cashed it.[21 O.S. § 358]¢ 3

(hg) The worker sends the completed Affidavit of Forgery and Postal Inquiry Form are sent 10AD045E and Form 10AD046E to the Office of OKDHS Finance Division for processing.¢ 4

(1) When the Office of OKDHS Finance Division receives the required documents, the forged warrant is returned through banking channels to the second endorser for collection.A replacement warrant is not issued until reimbursement is received from the second endorser.

(2) The second endorser has the right to protest a claim if they have there is evidence to show it is fraudulent.If the claim is protested, the second endorser chooses to protest the claim, he or she must file a complaint with the local police department and send a copy of the complaint report and a letter to the Office of Finance Division.

(3) When the State Treasurer receives reimbursement from the second endorser, Form ADM-44 10AD044E or Form OSF 20R is approved and sent to the Office of OKDHS Finance Division.A replacement warrant is not issued until reimbursement is received from the second endorser.If the second endorser does not protest the claim within two months, either the OKDHS Finance Division or OSF staff issues a replacement warrant to the client or vendor.

INSTRUCTIONS TO STAFF 340:65-5-15

Revised 7-1-01 6-1-08

1.The worker sends the remaining piece(s) of the warrant is sent to the Office of Oklahoma Department of Human Services (OKDHS) Finance Division with a cover memo explaining the situation and requesting issuance of a replacement warrant.If there is any question as to whether a sufficient portion of the warrant remains intact to exempt the client from filing Form ADM-44 10AD044E, Affidavit of Lost or Destroyed Warrant, or the Office of State Finance's (OSF) Form 20R, Warrant Replacement Request, the decision is made by the Office of OKDHS Finance Division staff.

2.The social services specialist worker must call the Office of OKDHS Finance Division to confirm if a stop payment order has been issued.Once placed, a stop payment order cannot be removed.

3.If the client or payee states the endorsement is forged, but the social service specialist worker suspects the claim is fraudulent, he or she must attach a cover memo with the Form 10AD045E, Affidavit of Forgery Forged Endorsement.

4.If Form ADM-44 has not been filed, it is completed and submitted to Finance with these forms.

 

340:65-5-16. Warrant issued after recipient's death

Revised 7-1-01 6-1-08

When a warrant for which the estate is not eligible is issued, cashed, and paid by the State Treasurer, the Office of Finance Division requests the State Treasurer return the warrant to the second endorser for collection on the grounds that it does not bear the endorsement of the true payee.Attached to the warrant is a notarized statement signed by a designated employee in the Office of Finance Division, certifying the date of death on file with the Oklahoma Department of Human Services.When the State Treasurer receives reimbursement, the State Fund is credited and the Office of Finance Division is notified of its receipt.When the county office local human services center is notified of a client's death, the family is advised to return for cancellation any warrants for which the estate is not eligible.¢ 1

INSTRUCTIONS TO STAFF 340:65-5-16

Revised 7-1-01 6-1-08

1.Such warrants When a warrant issued after a recipient's death is received in the county office local human services center (HSC) should be it is sent to the Office of Finance Division, with "CANCEL" written on the face of the warrant.If a person who has cashed a warrant for which the estate was not entitled wishes to repay the Oklahoma Department of Human Services, the county office HSC staff accepts the payment and sends it to the Finance Division Revenue Unit.

340:65-5-17. Warrant cashed in error

Revised 7-1-01 6-1-08

When a warrant is inadvertently cashed by the wrong client, due to, Oklahoma Department of Human Services error because the names are similar or for other reasons, a warrant is inadvertently cashed by the wrong client, the county office human services center (HSC) staff immediately substantiates facts related to the error and sends a report of these facts to the Family Support Services Division (FSSD).¢ 1

(1) If the client who cashed the warrant is not convinced of the error, a request is made by the county office HSC staff to the Office of Finance Division for a photostatic copy of the warrant in order that facts in evidence may be discussed with the client.

(2) An The worker submits an overpayment referral is submitted for the client who inadvertently cashed the wrong warrant to the FSSD Benefit Integrity and Recovery Section in accordance with OAC 340:65-9.¢ 1

INSTRUCTIONS TO STAFF 340:65-5-17

Revised 7-1-01 6-1-08

1.The county office worker submits a memo to the State Office Finance Division requesting another warrant be issued to the disadvantaged client and stating that the warrant was cashed by another client due to Oklahoma Department of Human Services error.

340:65-5-18. Warrant returned as undeliverable

Revised 7-1-01 6-1-08

Warrants which the The postal service cannot deliver are returned returns to the State Office Oklahoma Department of Human Services (OKDHS) Finance Division any undeliverable warrants in accordance with the return address printed on the envelope.If an undeliverable warrant is returned in error to the county office, it is sent immediately to the Office of Finance on Form F-16, Authorization for Issuance and Disposition.The Office of Finance notifies the county offices daily of any returned warrants and the reason for their return.¢ 1If the client cannot be located or for some reason the county office is unable to authorize disposition of the warrant by deadline, payment is suspended.If a non-delivered State Supplemental Payment (SSP) warrant is held by the Office of Finance, a warrant is not mailed to the client until the case is removed from suspended status.

INSTRUCTIONS TO STAFF 340:65-5-18

Revised 7-1-01 6-1-08

1.The county office determines the appropriate disposition and enters the correct disposition code to notify the Office of Finance as to what action to take.The county updates the BMU transaction on the Information Management System (IMS) to notify the Office of Finance.If BMU is not updated by the deadline date, benefits are suspended.

(a) If an undeliverable warrant is returned in error to the local human service center (HSC), it is sent immediately to the Finance Division with Form 08FB016E, Authorization for Issuance and Disposition.

(b) When the Finance Division receives a returned warrant, the BML transaction is updated to show the warrant was returned.

(c) When the client requests reissuance of the warrant within 90 days and it shows returned on BML, the worker updates the BMU transaction to mail the warrant to the correct address.

340:65-5-19. Warrants canceled by statute of limitation

Revised 7-1-01 6-1-08

Any State warrant not presented for payment within 90 days of issuance is automatically canceled by statute of limitation.Section 41.19 of Title 62, of the Oklahoma Statutes, restricts reissuance of any public or medical assistance warrant to within three years 36 months following the month of its cancellation.This restriction does not apply to warrants issued prior to February 1, 1992.The holder of such a canceled warrant may, within the three year 36 month period, submit the original warrant to the Oklahoma Department of Human Services (OKDHS) with a request for its reissuance.

(1) If the original warrant is not in his or her the person's possession, Form ADM-44 10AD044E, Affidavit of Lost or Destroyed Warrant, may be submitted in lieu of the actual warrant.

(2) If the holder of the canceled warrant is a corporation, it is acceptable for the affidavit of loss or destruction to be submitted on their letterhead providing the request contains the warrant number, issue date, net amount and a brief description of the circumstances surrounding the warrant's loss or destruction.The request must also bear the notarized signature of their a duly authorized agent and of the corporation completes and signs Form 10AD044E or the Office of State Finance Form 20R, Warrant Replacement Request.The duly authorized agent must state on the form the title of the position he or she holds with the company.

(3) Requests for reissuance must be forwarded mailed to the DHS Office of Finance Division, P.O. Box 53308, Oklahoma City, OK 73152, where replacement warrants are processed monthly.

340:65-5-20.Payment to estate of deceased recipient other than Temporary Assistance for Needy Families (TANF) payee

Revised 7-1-01 6-1-08

(a) The Oklahoma Social Security Act, Title 56, Oklahoma Statutes Sections 190 and 191 of Title 56 of the Oklahoma Statutes (56 O.S. §§ 190 and 191) provides for payments to the estate of a deceased recipient other than TANF client.If the client dies before the warrant is endorsed or presented for payment, an endorsement may be made by the District Court the next of kin, next friend, or other reputable person must obtain a court order from the district court authorizing and directing such person to endorse the warrant before it can be cashed.The fact of the death and the date on which it occurred must be exactly determined in order to establish eligibility for this payment since the warrant may be cashed only if the client was alive on the first day of the month for which the warrant was issued.The first day of the month is considered to begin at 12:00 midnight.No costs may be charged for court proceedings.

(1) The next of kin, or next friend, or other reputable person requesting an endorsement of the warrant(s) due the deceased recipient files Form FSS-ABD-23, Notice to County Judge Regarding Deceased Recipient, with the District Court giving the name of the recipient, the date of death, and the amount and number of each assistance payment involved may file an affidavit directly with the district court stating the name of the recipient, the date of his or her death, and the amount and number of warrants.The next of kin, next friend, or other reputable person may or may not have possession of the warrant(s).

(2) The next of kin, next friend, or other reputable person may also present unendorsed warrants to the local human services center (HSC) and request assistance in cashing them.

(A) The county director prepares Form 08MP023E, Notice to County Judge Regarding Deceased Recipient, and sends the original to the district judge and a copy to the Finance Division.

(B) Prior to completing this form, HSC staff must confirm the date of death of the recipient in order to establish eligibility for this payment.The warrant may be cashed only if the recipient was alive on the first day of the month for which the warrant was issued.¢ 1

(C) The first day of the month is considered to begin at 12:00 midnight.

(b) The district judge or his or her associate is responsible for determining whether the endorsement procedure is applicable in view of to issue a court order based on the information presented.If it is applicable, a court order is made authorizing and directing one of the next of kin, or next friend, or other reputable person to endorse the warrant and cash it without the signature of an administrator.The order covers all points set out as requirements in the law.

(c) The In lieu of a court order, the district judge or his or her associate issues the authorization for endorsement in the form of a court order, or he or she makes may make a notation directly on the warrant itself, specifying the name of the person authorized to endorse it.No costs may be charged in these proceedings.(d) The When the unendorsed warrant is returned to the Finance Division, it is only sent to the next friend or next of kin, next friend, or other reputable person after Finance staff receives sends the original of the court order with his or her that person's address to the State Office, Attention Office of Finance, and retains the duplicate for his or her use when cashing the warrant included.¢ 2Upon receipt of the judge's order and determination that its issuance conforms to the facts and the law, the Office of Finance Division staff mails the warrant directly to the person authorized to endorse it.Any The Director of the Oklahoma Department of Human Services handles any question regarding a refusal to release the warrant is handled by the Director of DHS.

(2) When an unendorsed warrant to a deceased client is returned to the State Office undelivered, it is remailed only when the DHS Office of Finance determines the law has been complied with and the necessary authorizations, as evidenced by the court order and Form FSS‑ABD‑23, are received in the Office of Finance.Notification is made available by e-mail to the county office advising them of the returned warrant so the court order and Form FSS-ABD-23 can be prepared.

(3) Form FSS-ABD-23 is used by the county office in determining the right to obtain a special endorsement on an assistance warrant.The law does not require the District Court to secure this information from the county office before providing for a special endorsement, but the Department is obligated to withhold payment on the warrant if it has reason to believe the law has not been complied with as to the client being alive in the month for which the warrant was issued.

INSTRUCTIONS TO STAFF 340:65-5-20

Issued 6-1-08

1.(a) The Oklahoma Department of Human Services (OKDHS) is obligated to withhold payment on the warrant if it has reason to believe the recipient was not alive in the month for which the warrant was issued.

(b) Suggested documents human services center (HSC) staff may copy for the case record to confirm the recipient's date of death include:

(1) a copy of the recipient's death certificate;

(2) a copy of the death notice in a newspaper;

(3) a copy of the memorial service handout; or

(4) a statement from the attending physician.

2.When the Finance Division receives an unendorsed warrant to a deceased recipient, it is shown as returned on the BML transaction for the human services center (HSC).HSC staff advise the next of kin, next friend, or other reputable person who inquires about the warrant what procedures must be followed before the warrant can be released.

340:65-5-21.Payment for Temporary Assistance for Needy Families (TANF) when the payee is no longer available to endorse the warrant[REVOKED]

Revoked 6-1-08

If a TANF payee is not available to access the benefit due to death, institutionalization, or any similar circumstances, a new payee can be selected.[OAC 340:65-3-6.1]

PART 7. GUARDIANSHIPS, AND CONSERVATORSHIPS, AND SUBSTITUTE PAYEES

340:65-5-66. Substitute payee for the TANF Program

Issued 6-1-08

When the head of the household is a minor, the Temporary Assistance for Needy Families (TANF) benefit may be issued to a substitute payee rather than the minor.¢ 1

 

INSTRUCTIONS TO STAFF 340:65-5-66

Issued 6-1-08

1.(a) Substitute payees are used, when available, if the minor meets eligibility conditions at OAC 340:10-3-56(a)(3)(P).

(b) The worker enters in the Family Assistance/Client Services (FACS) Interview Notebook Case Information tab the name of the substitute payee in the "guardian, substitute payee, conservator, authorized representative, other" field and "substitute payee" in the "responsible person, or extra address" field.

(b) TANF benefits are issued by use of a MasterCard debit card or through direct deposit.The minor must call the Affiliated Computer Services (ACS) Customer Call Center at 1-888-401-9843 to request the substitute payee be made a secondary cardholder for the debit card.See OAC 340:65-3-6 for information about debit cards and direct deposit.

 

PART 9. PROTECTIVE PAYMENTS IN TANF [REVOKED]

340:65-5-80. Purpose and conditions [REVOKED]

Revoked 6-1-08

A protective payment in Temporary Assistance for Needy Families (TANF) is the payment of the cash assistance, on a planned basis, to an individual other than the person who would normally be the payee.¢ 1Protective payments are made for the purpose of protecting the best interest of the children who are included in a TANF benefit.¢ 2Benefits are issued to protective or substitute payees when:

(1) there is evidence of mismanagement of the TANF payment; or

(2) the head of household is a minor under age 16.

INSTRUCTIONS TO STAFF 340:65-5-80

1.Once a protective payee has been selected it is necessary to deactivate the original payee's Electronic Benefit Transaction (EBT) card and to initiate an EBT card for the protective payee by completing the EBTU transaction.

2.When all reasonable efforts to find a suitable protective payee have been unsuccessful and prolonging the search is detrimental to the children, the Temporary Assistance for Needy Families (TANF) payment is continued in the name of the payee.

340:65-5-81. Money mismanagement [REVOKED]

Revoked 6-1-08

The case record must make clear there is specific evidence of mismanagement of funds.When there is money mismanagement, the social services specialist may determine there is a need for a protective payment.Protective payments may continue for no more than two years.The exception is when reasonable additional time as is necessary to complete other arrangements, such as appointing a legal guardian or arranging for foster care.The social services specialist determines when the situation has improved to the extent the payment can again be made to the relative payee or whether other arrangements for the care of the children are needed.Evidence of funds being mismanaged in a way that threatens the well-being of the children situations such as:

(1) continued inability to budget the cash assistance and any other income to meet necessary expenditures.Evidence of inability to properly budget includes, but is not limited to, expenditures for bail, criminal fines, alcohol, illegal drugs, and gambling;

(2) continued evidence that the children do not have adequate food and clothing and that failure to provide food and clothing threatens their healthy growth and development; and

(3) repeated obligations go unpaid, with referral to a collection agency or legal action to repossess items purchased.

340:65-5-85.Selection and responsibilities of the protective payee [REVOKED]

Revoked 6-1-08

Persons who may act as a protective payee are friends or relatives of the client, ministers, or employees of or volunteer workers for public or voluntary social agencies or organizations such as Big Brothers, Inc., and similar groups.Employees of the Department and persons such as landlords, grocers, or other vendors of goods or services utilized by the Temporary Assistance for Needy Families (TANF) assistance unit cannot be protective payees without prior administrative approval from the State Office, Family Support Services Division (FSSD).

(1) The protective payee is an individual who is:

(A) interested in the welfare of the family;

(B) able to assist the family to make appropriate use of the TANF cash assistance;

(C) accessible to the family;

(D) able to establish and maintain a positive relationship with the family; and

(E) reliable and of good character.

(2) The protective payee is responsible for:

(A) ensuring the TANF cash assistance is expended for the benefit of the family;

(B) keeping written records of all expenditures of TANF cash assistance;

(C) producing those records at the request of the Department;

(D) assisting the caretaker relative to develop sufficient money management skills so he or she can resume management of the family income; and

(E) honoring the client's right to confidentiality.

340:65-5-87. Right to a fair hearing [REVOKED]

Revoked 6-1-08

The recipient has the right to appeal the decision of the Agency to obtain a substitute payee and provide assistance in the form of a protective payment.Written notice of the right to appeal the decision is provided to the recipient at the time the determination is made and with each decision on the status of the protective payment following a periodic redetermination.

SUBCHAPTER 9. OVERPAYMENTS AND FRAUD IN TEMPORARY ASSISTANCE FOR NEEDY FAMILIES AND STATE SUPPLEMENTAL PAYMENT BENEFITS

340:65-9-1. Scope and applicability

Revised 7-1-03 6-1-08

An overissuance or overpayment occurs when a household receives more benefits than it is entitled to receive.When the worker determines that an overissuance or overpayment may have occurred, the worker makes a referral to Family Support Services Division (FSSD) Overpayment Section for determination of an overpayment.Overpayments may be classified as inadvertent client errors, agency error, willful misrepresentation, or intentional program violation (fraud).

(1) Instances which may result in referral for an overpayment determination include, but are not limited to:

(A) the household:

(i) failed to provide the Oklahoma Department of Human Services (OKDHS) with correct or complete information;

(ii) failed to report changes in its circumstances; or

(iii) elected to receive benefits pending a fair hearing decision, which subsequently found the family ineligible or eligible for fewer benefits; or

(B) the worker:

(i) failed to take prompt action on a change reported by the household;

(ii) incorrectly computed the household's income, deductions, or both; or

(iii) incorrectly authorized issuance of benefits to a household; or

(C ) any overissuance discovered as a result of a Quality Control Review.

(3) The FSSD Overpayment Section classifies overpayments as inadvertent client error, agency error, willful misrepresentation, or intentional program violation (fraud).

(2) The FSSD Overpayment Section classifies overpayments as inadvertent client error, agency error, willful misrepresentation, or intentional program violation (fraud).When the worker determines that an overissuance or overpayment has occurred, he or she documents the circumstances leading to the overpayment and computes the amount using the Oklahoma Program Integrity (OPI) system.¢ 1Overpayments may cover the entire time the overissuance occurred.

(3) When the worker suspects fraudulent intent but has insufficient information to complete an overpayment, he or she sends Form 19MP019E, Referral Form to the Office of the Inspector General (OIG).When OIG staffdetermines that an overpayment occurred, he or she documents and computes the overpayment amount using OPI.

(4) Once the overpayment has been completed and notices sent by OPI, the overpayment is considered to be established.Prior to completion, it is shown in pending status in OPI.The establishment of an overpayment is made by the worker's supervisor or staff in the Family Support Services Division (FSSD) Benefit Integrity and Recovery Section within the OPI system.

(A) The worker and supervisor establish any overpayment under $500 due to inadvertent client error and any agency error overpayment regardless of the amount; ¢ 2 or

(B) FSSD Benefit Integrity and Recovery Section staff establish all overpayments $500 and over not due to agency error, all overpayments discovered by OIG, and all overpayments due to willful misrepresentation or intentional program violation after OIG makes a determination regarding fraudulent intent.The supervisor in the human services center (HSC) may refer clients suspected OF willful misrepresentation debts that are less than $500 to the FSSD Benefit Integrity and Recovery Section through OPI.¢ 3

(35) The FSSD Overpayment Section Once the overpayment is established, the OPI system sends:

(A) Form ADM-S-20 08AD012E, Notification of Overpayment, to the client.; and

(B)The county office receives Forms ADM-S-8, Overpayment Report to the County, ADM-S-20, Forms 08AD012E and ABCD-50 08OP025E, Chart of Temporary Assistance to Needy Families and State Supplemental Payment Overpayments, to the local HSC.

(46) The FSSD Overpayment Benefit Integrity and Recovery Section postpones notification to the client by Form ADM-S-20 08AD012E on cases referred for a judicial court decision until a court decision has been made.

(5) Overpayments may cover the entire time the overissuance occurred.However, overpayments classified as fraud in a court of law cannot include periods more than five years prior to the date charges were filed.

(6) When the worker or the FSSD Overpayment Section suspects fraudulent intent, a referral is made to the Office of Inspector General (OIG) for a determination of fraud.

(7) The FSSD Overpayment Section OIG staff may make a referral to the Legal Division, Appeals Unit, for an administrative disqualification hearing.

INSTRUCTIONS TO STAFF 340:65-9-1

Issued 6-1-08

1.(a) When the worker believes an overissuance exists, he or she enters information into the Oklahoma Program Integrity (OPI) system within 30 days of the date of discovery that includes:

(1) the circumstances which caused ineligibility for benefits;

(2) monthly gross income and allowable monthly deductions including date employment began and receipt date of first check.THE EARNED INCOME DEDUCTION IS NOT ALLOWED IN DETERMINING THE OVERPAYMENT AMOUNT WHEN A RECIPIENT FAILS TO REPORT EARNED INCOME IN A TIMELY MANNER;

(3) unearned income and receipt date of first payment;

(4) resources which exceeded allowable standards and amount of highest known resource during the overpayment period;

(5) the exact date the worker learned that a possible overpayment occurred,the months and years in which there was complete ineligibility, and those months in which there was partial ineligibility; and

(6) a specific statement whether the overpayment was a result of client or agency error in accordance with OAC 340:65-9-2.

(b) The OPI system retrieves paid benefits information and calculates the overpayment amount based on information provided by the worker.

2.After a worker documents that an overpayment occurred in the Oklahoma Program Integrity (OPI) system, his or her supervisor must review and approve it in OPI before it can be established.

3.OPI forwards pending overpayments that are not established by human services center (HSC) staff to the Family Support Services Division (FSSD) Benefit Integrity and Recovery Section.FSSD Benefit Integrity and Recovery Section staff review these overpayments and, if appropriate, forward them for investigation to the Office of Inspector General (OIG) through the OPI system.Once OIG staff completes the investigation, the overpayment is sent back to the FSSD Benefit Integrity and Recovery Section through OPI to establish the overpayment.

340:65-9-2. Overpayments by classification

Issued 7-1-03 Revised 6-1-08

(a) Overpayments classified as inadvertent client error.An overpayment is classified as an inadvertent client error if the overissuance was is caused by a misunderstanding or unintended error on the part of the household.Instances of inadvertent client error which may result in an overpayment include, but are not limited to, when the household unintentionally:

(1) failed fails to provide the Oklahoma Department of Human Services (OKDHS) with correct or complete information;

(2) failed fails to report changes in household circumstances; or

(3) received receives benefits or more benefits than it was entitled to receive pending a fair hearing decision.

(b) Overpayments classified as agency error.An overpayment is classified as an agency error if the overissuance was is caused by OKDHS action or failure to take action.Instances of agency error which may result in an overpayment include, but are not limited to, when OKDHS staff:

(1) failed fails to take prompt action on a change reported by the household;

(2) incorrectly computed computes the household's income or deductions, or otherwise assigned assigns an incorrect allotment benefit amount;

(3) incorrectly issued issues benefits to a household, including errors caused by overall updates; or

(4) incorrectly applied applies policy or procedures.

(c) Overpayments classified as willful misrepresentation.Overpayments classified as willful misrepresentation result from deliberate concealment of information which, had it been reported, would have initiated case closure or benefit reduction.An assessment is made to determine whether the client has the capability of understanding his or her responsibilities and actions.Willful misrepresentation may be oral or written and may include understatements under reporting of the amount of income or resources or other pertinent information.Debts classified as willful misrepresentation may change in the event they are referred for judicial prosecution or administrative disqualification hearing.¢ 1

(1) When the county human services center (HSC) receives Form Adm-S-8, Overpayment Report to the County 08AD012E, Notification of Overpayment, on debts classified as willful misrepresentation, but not referred to the Office of Inspector General (OIG), the worker contacts the client and requests the client to voluntarily sign Form ABCD-51 08OP002E, Affidavit of Acknowledgment of Indebtedness.If the client refuses to sign Form ABCD-51 08OP002E, his or her eligibility is not affected.

(2) If the client voluntarily signs Form ABCD-51 08OP002E and owns real property other than the declared home property, the worker files the signed form with the county clerk of the county in which the real property is located.Filing Form ABCD-51 08OP002E with the county clerk places a lien on the real property.¢ 1

(d) Overpayments classified as intentional program violation (fraud).An overpayment is classified as intentional program violation when it is determined that a client has intentionally given false information or withheld facts in order to receive benefits.This determination is made through an administrative disqualification hearing, signing Form H-S-13-A 08OP016E, Administrative Disqualification Hearing Waiver, or by judicial court decision.

INSTRUCTIONS TO STAFF 340:65-9-2

Issued 7-1-03 Revised 6-1-08

1.(a) Before filing Form ABCD-51 08OP002E, Affidavit of Acknowledgment of Indebtedness, the worker checks the legal description of the property to ensure it conforms with the property deed.After filing, the worker sends the original and one copy of the signed Form ABCD-51 08OP002E to the Family Support Services Division (FSSD) Overpayment Benefit Integrity and Recovery Section.The remaining copies are filed in the county case record.

(b) Refer also to OAC 340:65-9-4 and Instructions to Staff.

(c) When the debt is paid in full, the FSSD Overpayment Benefit Integrity and Recovery Section or the Legal Division prepares a "Release of State's Lien" and mails it to the appropriate county clerk for filing.The FSSD Overpayment Benefit Integrity and Recovery Section mails a copy of the release of lien to the client or other concerned party.

340:65-9-3. Procedures for referring overpayments [REVOKED]

Revoked 6-1-08

The worker makes referrals for determination of an overpayment if they believe a household received an overissuance of benefits.The worker makes the referral, regardless of whether suspected inadvertent client error, agency error, willful misrepresentation, or intentional program violation (fraud) caused the overissuance.The Family Support Services Division Overpayment Section sends the client ADM-S-20, Notification of Overpayment, and advises the client of the amount of overpayment, dates of the overpayment, and the reason the overpayment occurred.¢ 1

INSTRUCTIONS TO STAFF

1.(a) Memorandum. When the county office believes an overissuance exists, an overpayment memorandum is submitted to the Family Support Services Division (FSSD) Overpayment Section.The overpayment memorandum must be submitted within 30 days of the date of discovery.The memorandum must contain:

(1) the circumstances which caused ineligibility for benefits;

(2) monthly gross income and allowable monthly deductions including date employment began and receipt date of first check.THE EARNED INCOME DEDUCTION IS NOT ALLOWED IN DETERMINING THE OVERPAYMENT AMOUNT WHEN A RECIPIENT FAILS TO REPORT EARNED INCOME IN A TIMELY MANNER;

(3) unearned income and receipt date of first check;

(4) resources which exceeded allowable standards and amount of highest known resource during the overpayment period;

(5) the exact date the county learned that a possible overpayment occurred,the months and years in which there was complete ineligibility, and those months in which there was partial ineligibility; and

(6) a specific statement whether client or agency error.

(A) Client error.Did the client report changes timely?Is there reason to suspect the client deliberately withheld information or misrepresented the facts?

(B) Agency error.Explain what action or failure to take an action by the Oklahoma Department of Human Services caused the overpayment.

(b) Form.Form ABCD-50, Chart of Temporary Assistance to Needy Families and State Supplemental Payment Overpayments, must be submitted with the overpayment memorandum unless the client is totally ineligible for the whole time period of the overpayment.Refer to Form ABCD-50 instructions.

340:65-9-4. Fraud

Issued 7-1-03 Revised 6-1-08

(a) The term fraud is defined as an intentional false representation of a truth or matter of fact, whether by words or conduct, false or misleading allegations, or concealment of that which should have been disclosed, for the purpose of inducing another to part with something valuable or surrender a legal right.The penalty for fraud is provided in the Oklahoma Social Security Act, Section 185 of Title 56 of the Oklahoma Statutes.Under the statutes, only courts can determine guilt and impose a legal penalty.¢ 1

(b) If the The Family Support Services Division (FSSD) suspects the client has committed fraud, FSSD Benefit Integrity and Recovery Section staff refers the overpayment client error overpayments of $500 or more to the Office of Inspector General (OIG) using Form OIG-1, Referral Form the Oklahoma Program Integrity (OPI) systemfor a determination of fraud.¢ 21

(c) If the county office suspects the case needs investigation, the county office makes Workers make a referral directly to OIG using Form OIG-1 for determination of fraud 19MP001E, Referral Form, when there is not sufficient information to calculate an overpayment through the OPI system or it involves a state employee or his or her relatives.OIG staff submits their findings to FSSD Overpayment Benefit Integrity and Recovery Section for final calculation and establishment of the overpayment.

(1) Overpayments classified as fraud are intentional program violations that have been referred for judicial prosecution or administrative disqualification hearing and, as a result, have been determined as fraudulent.Clients with overpayments classified as fraud are subject to the actions described (A) through (C) of this paragraph.

(A) Notification.The FSSD Overpayment Section OPI system sends Form ADM-S-15 08AD019E, Program Penalty/Disqualification Notice, to the penalized Temporary Assistance for Needy Families (TANF) client.Form ADM-S-15 08AD019E informs the TANF client of a 25% payment standard reduction penalty.

(B) Penalty period.A TANF client is penalized with a 25% payment standard reduction for 12 months for the first violation, 24 months for the second violation, and permanently for the third violation.

(C) Penalty effective date.The 25% payment standard reduction penalty begins the date shown on Form ADM-S-15 08AD019E.Once the payment standard reduction penalty begins, it runs continuously until the end of the period imposed.

(2) If the case is prosecuted, OIG notifies the county office human services center (HSC) and the FSSD Overpayment Benefit Integrity and Recovery Section of the disposition of the case.If the court finds the client guilty, the court may order a fine, restitution, imprisonment, or any combination of the three.The Oklahoma Department of Human Services (OKDHS) abides by the court decision.¢ 32

(3) Court-ordered restitution does not relieve the client of any overpayment amount in excess of that judgment.

(A) If the client defaults on court-ordered restitution, the sentence may be accelerated.

(B) If the sentence is accelerated and the client serves a prison term, serving the prison term does not satisfy repayment of the monetary portion of the debt.At that point the debt may be subject to civil prosecution.

(C) The fact that a client is making restitution payments does not relieve the client of the obligation to sign Form ABCD-51 08OP002E, Affidavit of Acknowledgment of Indebtedness.Home property and personal property are exempt from this process.A lien may also be filed on declared real property if Form ABCD-51 08OP002E indicates property is owned.¢ 43

(4) If OIG releases the case without a court decision or Form H-S-13-A 08OP016E, Administrative Hearing Disqualification Waiver, signed by the client, the FSSD Overpayment Benefit Integrity and Recovery Section proceeds to collect the debt.In some instances, OIG discovers additional information that will affect the overpayment.The OIG gives this information to the FSSD Overpayment Benefit Integrity and Recovery Section so they can adjust the overpayment.

INSTRUCTIONS TO STAFF 340:65-9-4

Issued 7-1-03 Revised 6-1-08

1.The Oklahoma Social Security Act [56 O.S. Supp. 1981, Sec. 185 as amended at H.B. 1187, November 1, 1985] provides: Whoever obtains or attempts to obtain, or aids, abets, or assists any person to obtain, by means of a false statement or representation, or by false impersonation, or by a fictitious transfer, conveyance or encumbrance of property or income, or other fraudulent device, assistance to which an applicant is not entitled or assistance greater than that to which an applicant is justly entitled shall be guilty of a misdemeanor, if the aggregate amount of assistance received as a result thereof if Five Hundred, $500.00, or less, and upon conviction thereof shall be fined not more than Five Hundred Dollars, $500.00 or be imprisoned in the discretion of the court, or shall be guilty of a felony, if the aggregate amount of assistance received as a result thereof is in excess of Five Hundred, $500.00 and upon conviction thereof shall be fined not more than Five Thousand Dollars, $5000.00, or be imprisoned in the penitentiary for a term not more than two (2) years or both such fined and imprisonment in the discretion of the court.

21.The Family Support Services Division (FSSD) Overpayment Benefit Integrity and Recovery Section makes referrals to the Office of Inspector General (OIG) for determination of whether judicial court action is feasible.

32.(a) Oklahoma Department of Human Services (OKDHS) staff MUST NOT discuss the overpayment with the client until court action is completed or the FSSD Overpayment Benefit Integrity and Recovery Section notifies the county office local human services center (HSC) of any action to be taken.Local staff forwards further information or directs client inquiries to the FSSD Overpayment Benefit Integrity and Recovery Section, or OIG.

(b) The court may stipulate a repayment plan.The repayment plan cannot be renegotiated.The FSSD Overpayment Section Office of the Inspector General (OIG) staff may refer the case back to the district attorney's office if the client fails to comply with the repayment plan.The FSSD Overpayment Section refers all cases suspected of intentional program violation, not referred for Administrative Disqualification hearings, to Office of Inspector General (OIG).

43.Filing Form ABCD-51 08OP002E, Affidavit of Acknowledgment of Indebtedness, with the county clerk places a lien on the real property.Before filing Form ABCD-51 08OP002E, the worker checks the legal description of the property to ensure it conforms with the property deed.After filing, the worker sends the original and one copy of Form ABCD-51 08OP002E to the FSSD Overpayment Benefit Integrity and Recovery Section.The remaining copies are filed in the county case record.In all other situations, if the client voluntarily signs Form ABCD-51 08OP002E, the worker sends the original and one copy of the signed Form ABCD-51 08OP002E to the FSSD Overpayment Benefit Integrity and Recovery Section and files the remaining copies in the county case record.

340:65-9-5. Right to appeal

Issued 7-1-03 Revised 6-1-08

If there is a disagreement with the overpayment decision and the client has not signed Form 08OP16E, Administrative Disqualification Hearing Waiver, the household may request a fair hearing within 30 days of the date on Form ADM-S-20 08AD012E, Notification of Overpayment.¢ 1

INSTRUCTIONS TO STAFF 340:65-9-5

Issued 7-1-03 Revised 6-1-08

1.The county office completes When the client disputes the overpayment decision , the client and worker complete Form H-1 13MP001E, Request for a Fair Hearing, at the client's request.The county office worker also completes Form H-1-A 13MP002E, Hearing Summary, and provides all necessary information for the hearing.The Family Support Services Division (FSSD) Overpayment Benefit Integrity and Recovery Section staff is available as needed.See OAC 340:2-5 for fair hearing procedures.

340:65-9-6. Development of repayment¢ 1

Issued 7-1-03 Revised 6-1-08

(a) Repayment of established overpayments.Households must make repayment on all established overpayments regardless of the reason for the overpayment.Family Support Services Division (FSSD) Overpayment Benefit Integrity and Recovery Section initiates collection efforts against all adult household members who were included in the benefit at the time the overpayment occurred except those who are deceased.Collection may be received from two separate households for the same claim.The FSSD Overpayment Benefit Integrity and Recovery Section sends the client Form ADM-S-20 08AD012E, Notification of Overpayment, that explains the acceptable methods of repayment for the debt classification.¢ 1

(b) Repayment options.

(1) Payment in full.The client may repay an overpayment in one lump sum by personal check, money order, or cashier's check, or electronic benefit transfer (EBT) debit with a signed statement.

(2) Monthly payments.The client may repay an overpayment in regular monthly installments by personal check, money order, or cashier's check, or approved EBT debits.

(3) Benefit reduction.

(A) Agency error.The FSSD Overpayment Benefit Integrity and Recovery Section processes a 5% 10% reduction in the client's monthly allotment.

(B) Inadvertent client error, willful misrepresentation.The FSSD Overpayment Benefit Integrity and Recovery Section processes a 10% reduction in the client's monthly allotment.

(C) Fraud.The FSSD Overpayment Benefit Integrity and Recovery Section processes a 10% reduction in the client's monthly allotment as well as the 25% payment standard reduction penalty for Temporary Assistance for Needy Families (TANF) benefits.

(D) Client authorized EBT debits.A household may make a voluntary payment through a debit from the EBT Access Account.

(4) Recoupment.

(A) The recoupment rate cannot be changed unless the overpayment or the benefit received by the client is less than the recoupment amount or the benefit received by the client is less than this amount.If the benefit amount is less than the recoupment amount specified, a benefit is not issued; however, the case remains active and a medical card is issued.The client may request recoupment not be initiated if a fair hearing regarding the overpayment is filed within 30 calendar days of the issuance date of the Form ADM-S-20 08AD012E.

(B) When recoupment is initiated or terminated, the client is notified by a computer-generated notice of the new warrant amount and its effective date.

INSTRUCTIONS TO STAFF 340:65-9-6

Issued 7-1-03 Revised 6-1-08

1.(a) County Human services center (HSC) procedures for maintaining cases with established overpayments.

(1) Upon notification by Family Support Services Division (FSSD) Overpayment Benefit Integrity and Recovery Section, of the establishment of a debt, the county case record is marked with "DO NOT DESTROY."The case is maintained in the active case files until the debt is paid in full.Restitution cases are never destroyed.

(2) Each overpayment Until the overpayment is paid in full, the case record must have an OVERPAYMENT SECTION in the working case consisting of that includes:

(A) a copy of the original referral memorandum or a copy of the Case Comments in the Oklahoma Program Integrity (OPI) system; and

(B) Form ABCD-50 08OP025E, Chart of Temporary Assistance to Needy Families and State Supplemental Payment Overpayments,; and

(C) any documentation and verification used to determine the overpayment; and

(BD) completed forms from the FSSD Overpayment Section establishing that established the overpayment, including the copy of Form ADM-S-20 08AD012E, Notification of Overpayment, that was sent to the client.

(3) It is recommended that the county office HSC have a system for identifying Temporary Assistance for Needy Families (TANF) households that were are assessed with a payment standard reduction 25% penalty income.

(b) Types of repayment.

(1) Recoupment.Recoupment is coded by the FSSD Overpayment Section the OPI system at the time the client is notified of the overpayment.Notices are computer-generated notifying Form 08AD012E advises the client of any change in benefits at the beginning and end of the recoupment process.The person responsible for repayment is the payee of the case and any other adult who was included in the benefit at the time the overpayment occurred.

(2) Monthly payments.Repayment of an overpayment may be made in one lump sum by personal check, money order, or cashiers cashier's check.Payment may be submitted with the overpayment referral or any date thereafter after the overpayment is established.Clients are instructed not to send cash through the mail.The local office HSC or FSSD may accept cash if it is impossible for the client to make payments by personal check, money order, or cashiers cashier's check.A receipt is given to the client if cash payment is received.Any money received is sent to the Oklahoma Department of Human Services Finance Division, P.O. Box 53306, Oklahoma City, OK73152-9116.

(3) Debit of electronic benefit transfer (EBT) account.The client's written statement must include:

(A) case identifying information such as case name and case number;

(B) a statement from the client or the household's authorized representative giving permission for the debit; and

(C) the client's signature and date the statement was signed.This statement is faxed with the overpayment referral to the FSSD Overpayment Section at 405-522-0952 for immediate processing.

(c) Collection notice.Monthly statements are computer-generated on approximately the 20^th day of each month.The information contained on these statements includes:

(1) statement date;

(2) overpayment account number client identification number;

(3) overpayment case number(s);

(4) account client name and address;

(5) new overpayment amounts and date established;

(6) itemized payment amount, payment dates, and payment type for new overpayment amounts since the last billing cycle;

(7) billing date;

(8) account balance; and

(9) overpayment balances by program.

(d) The county HSC staff notifies the FSSD Overpayment Benefit Integrity and Recovery Section of any address changes change or case number assignment for a client having an established overpayment.

340:65-9-7. Suspension of collection efforts

Issued 7-1-03 Revised 6-1-08

(a) The Family Support Services Division (FSSD) Overpayment Benefit Integrity and Recovery Section suspends collection action notice on cases no longer receiving benefits when the:

(1) head of household is deceased and there are no remaining household members responsible for the overpayment;

(2) household cannot be located;

(3) cost of further collection action is likely to exceed the amount that can be recovered; or

(4) client notifies the FSSD Overpayment Benefit Integrity and Recovery Section, is notified that bankruptcy proceedings have been initiated.

(b) FSSD Overpayment Benefit Integrity and Recovery Section may reopen debts begin collection actions held in suspension based on changes in household circumstances.The FSSD Overpayment Benefit Integrity and Recovery Section initiates reduction in the benefit if the client reapplies and becomes eligible in the future.County staff notify the FSSD Overpayment Section of case transfers.

340:65-9-8. Termination of collection of debt

Issued 7-1-03 Revised 6-1-08

In the case of repayment in full, the household is notified by a monthly overpayment account statement showing a zero balance owed or Form ADM-S-20 08AD012E, Notification of Overpayment, that the debt has been satisfied.¢ 1

INSTRUCTIONS TO STAFF 340:65-9-8

Issued 7-1-03 Revised 6-1-08

1.(a) Collection efforts statements are suspended:

(1) when the Family Support Services Division (FSSD) Overpayment Benefit Integrity and Recovery Section is unable to locate any responsible household member;

(2) after the monthly account statement is returned by the United States Postal Service;

(3) if the balance owed on the account is less than $500; or

(43) by a decision of FSSD Overpayment Benefit Integrity and Recovery Section staff.

(b) Fair hearing.Fair hearing requests that result in the suspension of recoupment require the county office to immediately notify the FSSD Overpayment Section by phone, 405-522-0933, of the request to assure.When the client requests a fair hearing, Legal Division staff enters information in the Oklahoma Program Integrity (OPI) system to suspend recoupment procedures are stopped.The Finance Division reimburses any collected recoupment if the appeal is found in favor of the client.

(c) Overpayment county case files.On Upon notification by FSSD Overpayment Benefit Integrity and Recovery Section of the establishment of debt, the county HSC staff labels the case record is marked with "DO NOT DESTROY."

(1) The case is maintained in the active case files until the county office is notified repayment has been made in full or disposal of the case has otherwise been made.The worker checks the OPI system to determine whether the overpayment has been paid in full before destroying a case record.

(2) On Upon receipt of this notification information, HSC staff pulls the case record is pulled, removes the "DO NOT DESTROY" label, and handles the case is handled in the usual manner.