SECTION 340:65-9-2. Overpayments by classification

(a)   Overpayments classified as inadvertent household error (IHE). Adult and Family Services (AFS) Benefit Integrity and Recovery (BIR) staff classifies a State Supplemental Payment (SSP) or Temporary Assistance for Needy Families (TANF) overpayment as IHE when intent to misrepresent cannot be established. Instances of IHE that may result in an overpayment claim include, but are not limited to, when the household:

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

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

(3)   elected to receive benefits pending a fair hearing decision and the fair hearing decision found the family ineligible or eligible for fewer benefits.

(b)   Overpayments classified as agency error (AE). AFS BIR staff classifies a SSP or TANF overpayment as an AE when DHS action or failure to take action causes the over-issuance. Instances of AE that may result in an overpayment include, but are not limited to, when:

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

(2)   AFS staff incorrectly calculated the household's income or deductions, or otherwise issued an incorrect benefit amount or benefits to an ineligible household;

(3)   the computer system incorrectly applied benefits to a household during an overall update or because of other system problems; or

(4)   AFS staff incorrectly applied policy or procedures.

(c)   Overpayments classified as willful misrepresentation. AFS BIR staff classifies a SSP or TANF overpayment as willful misrepresentation when the household deliberately conceals information that, had the household reported the information, would have initiated case closure or benefit reduction. Willful misrepresentation may be verbal or written and may include under reporting 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 an administrative disqualification hearing (ADH).

(1)   When non-exempt resources are known and a debt is classified as willful misrepresentation, but not referred to the Office of Inspector General (OIG), DHS staff requests the client voluntarily sign Form 08OP002E, Affidavit of Acknowledgment of Indebtedness. Refusal to sign Form 08OP002Edoes not affect the client's eligibility.

(2)   When the client voluntarily signs Form 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 08OP002E with the county clerk places a lien on the real property.

(d)   TANF overpayments classified as intentional program violation (IPV). A TANF debt classified as IHE, AE, or willful misrepresentation may change to IPV following an ADHdecision, signing Form 08OP016E, Administrative Disqualification Hearing Waiver, or by court decision.

(e)   SSP overpayments classified as fraud. A SSP debt classified as IHE, AE, or willful misrepresentation may change to fraud only after a judicial court decision. Refer to Oklahoma Administrative Code 340:65-9-4 for additional fraud information.

[Source: Added at 20 Ok Reg 2059, eff 7-1-03; Amended at 25 Ok Reg 958, eff 6-1-08; Amended at 28 Ok Reg 880, eff 6-1-11; Amended at 35 Ok Reg 1688, eff 9-17-18]