CalWORKs Policy - Department of Public Social Services

CW 44-340.3 –
Calculating -
Underpayments
How is an underpayment calculated?
LEADER will determine an underpayment when the
correct grant for each month in question is
calculated and compared to the amount actually
paid to the participant for each month; and if the
amount to the participant in any month is less than
the correct grant for that month, an underpayment
exists.
If the participant later reports the actual amount
of income received and it differs from the
anticipated amount, should the actual amount
received be used and the benefits recalculated?
No, a supplemental payment that was correctly
calculated based on the determination of reasonably
anticipated income is not subject to an overpayment
determination provided that the participant’s report,
upon which the grant was originally determined, was
complete and accurate. If there is a computational
error, the supplemental payment must be corrected.
CW 44-340.4 Correcting
Underpayments
How is an underpayment corrected?
Underpayments must be corrected promptly
following month of discovery. The month of
discovery is the month in which the EW obtained
any information that could have reasonably led to a
determination that an underpayment occurred.
An underpayment can be corrected through
retroactive payment(s).
If an AU has both an underpayment and an
overpayment, the amount must be balanced
(one against the other) before making a
retroactive corrective payment.
Payments are to be issued to correct
underpayments even when the family is not
currently aided.
For purposes of determining continued eligibility and
amount of assistance, retroactive payments are
exempt as income/resource in the month received
and in the following month.