1142.057.00 REDUCING OR INCREASING THE AMOUNT OF AN ESTABLISHED CLAIM

IM-#3 January 3, 2007

After a claim for an overpayment of food stamp benefits is established in the Claims Accounting and Restitution System (CARS), it may be discovered that there is

NO OVERPAYMENT

A claim that was established in error including a hearing reversal of an entire claim amount is terminated. If there have been collections on a claim which was established in error, the collections are refunded. For instructions to terminate the claim and notify State Office to refund the collections, refer to CARS User Guide Terminating or Closing a Claim.

MORE OVERPAYMENT (Increase the Debt)

If it is discovered a claim was originally established for less than it should have been, establish a new claim for the difference. Record on OVNA the reason for the increase, tying the two claims together.

LESS OVERPAYMENT (Decrease the Debt)

If it is discovered a claim was originally established for more than it should have been, submit a CARS-2 requesting the balance be reduced using transaction code 22, credit. Write on the top of the CARS-2 the reason for the reduction. Record the reason for the reduction and describe the documentation used to make the decision on OVNA.