Illinois Administrative Code
Title 89 - SOCIAL SERVICES
Part 527 - RECOVERY OF MISSPENT FUNDS
Section 527.100 - Initial Collection Activity
Current through Register Vol. 48, No. 12, March 22, 2024
a) The DHS-DRS employee who is responsible for authorizing payments to the recipient of funds must monitor all those payments for proper expenditure. Upon discovering that the funds are being used for purposes other than those specified by the grant or contract entered into by the recipient, this employee must notify the DHS/DRS Central Office. The investigator in Central Office shall make a determination as to whether funds have been misspent or fraud has occurred based on the data provided by the employee.
b) If the recipient of the funds agrees to pay back the misspent monies, DHS-DRS will agree to allow the recipient to pay back the funds in allotments, over a reasonable period of time. The time period shall be based on the amount of money to be paid back and the ability of the recipient to repay. The Agreement to repay shall include the amount of money to be paid back, the schedule of payments and the date payments shall begin and end. The investigator in the Comptroller's office completes the agreements. The investigator shall work with the Bureau of Collections, Revenue Management to assure an account is established and that the Agreement is followed. Monthly statements shall show each payment received and the remaining balance due. If payments are not received in a timely manner as outlined in the Agreement, the account shall be considered in default and the matter shall be referred to the Office of the Comptroller and a collection agency. As an alternative to direct repayment of funds, DHS-DRS will agree to allow the amount of repayment to be offset against existing or future grants, upon agreement between the recipient and the investigator in the Comptroller's office.
c) If no agreement is reached between the employee and the recipient to pay back the misspent funds, the employee must prepare a memorandum to his/her supervisor (or other DHS-DRS staff with supervisory responsibility for a particular grant or contract) providing information on what attempts have been made to date to collect the funds.
d) The employee's supervisor shall prepare a letter to the recipient to notify him/her that actions to collect the funds will proceed and contain information regarding the recipient's right to appeal under 89 Ill. Adm. Code 508.
e) The letter from the employee's supervisor to the recipient shall be sent by certified mail with return receipt requested and will include a copy of DHS' Administrative Hearings rules (89 Ill. Adm. Code 508), as well as:
f) If the recipient does not request the hearing within 35 days, the supervisor will notify the investigator in the Central Office who shall attempt to contact the recipient and after two attempts shall set up a receivable account with the Bureau of Collections for all collection activity.