Nebraska Administrative Code
Topic - HEALTH AND HUMAN SERVICES SYSTEM
Title 468 - AID TO DEPENDENT CHILDREN (ADC)
Chapter 3 - CALCULATION OF AID TO DEPENDENT CHILDREN BENEFITS
Section 468-3-008 - PAYMENTS

Current through March 20, 2024

Aid to Dependent Children payments are made from either federal or state funds.

008.01 FEDERAL TEMPORARY ASSISTANCE FOR NEEDY FAMILY PAYMENT RESTRICTIONS. Pursuant to Section 4004 of Public Law 112-96, 42 U.S.C. § 608(a), it is a violation of federal law to access Temporary Assistance for Needy Families funds from an automated teller machine (ATM) located at or via a point-of-sale purchase at the following types of businesses:

(A) Liquor stores;

(B) Casinos, gambling casinos or gaming establishments; or

(C) Any retail establishment which provides adult-oriented entertainment in which performers disrobe or perform in an unclothed state for entertainment.

008.02 SUPPLEMENTAL PAYMENTS. Supplemental payments are issued in the following circumstances:

(A) Late payments authorized after the regular monthly issuance;

(B) Payments issued because of the addition of another individual to the unit; and

(C) Payments issued within the same payment month to make up for an underpayment.

008.03 RELATIVE-PAYEE. A unit which does not consist of a financially responsible individual may have a specified relative, guardian, or conservator with whom the child lives serve as a payee for the Aid to Dependent Children payment. The specified relative, guardian, or conservator must not be a person who has been declared incompetent through court action. If the specified relative has a legally appointed guardian or conservator, the guardian or conservator may be the payee.

008.04 PROTECTIVE PAYMENTS. A protective payee is assigned temporarily when the Department has documented that the assistance is being mismanaged and is not being used in the best interests of the child. The protective payee must be an interested third party who is concerned with the welfare of the child and family. The recipient must be given the opportunity to appeal the initial decision or continuance of protective payments and the choice of the protective payee

008.05 ERRONEOUS PAYMENTS. The following regulations apply to incorrect payments identified after October 31, 1981. In cases which have both an underpayment and an overpayment, one may be offset against the other when corrected.

008.05(A) UNDERPAYMENTS. All underpayments must be corrected. In no case may one month's corrected payment exceed the maximum payment which can be made for any one month. If the unit is already receiving the maximum payment, the underpayment may be corrected with a retroactive payment. Retroactive payments are not considered income or a resource in the month paid or in the following month. If underpayments have not been corrected when a case is closed, corrective payments must be made if the payee is eligible for assistance at a later date.

008.05(B) OVERPAYMENTS. All reasonable steps necessary must be taken to promptly correct all overpayments regardless of cause. There are two types of overpayments:
(1) Errors caused by the Department's inaccurate computation or failure to take action;

(2) Errors caused because an applicant or recipient provides inaccurate or incomplete information or fails to provide information resulting in an overpayment.

008.05(B)(i) CORRECTING OVERPAYMENT DUE TO UNREPORTED EARNED INCOME. In situations where an overpayment is identified due to unreported earned income, earned income disregards are not allowed in the recomputed Aid to Dependent Children budget. Disregards are allowed beginning with the month following the month of discovery or report.

008.05(B)(ii) OVERPAYMENT RECOVERY. All overpayments, regardless of cause, must be recouped if there is an active Aid to Dependent Children grant case or a recovery must be attempted from a closed grant case, if the outstanding overpayment amount is $35 or more. After an overpayment has been computed, a demand letter is sent to the unit explaining the option of reimbursing all or part of the overpayment or having future assistance reduced. If part of the overpayment is reimbursed, the remainder must be recouped by grant reduction. The unit is provided 10 days to respond to the demand letter. If the unit does not respond within 10 days or if the unit chooses to reimburse but fails to do so, future assistance is reduced the first month possible.
008.05(B)(ii)(1) RECOUPMENT CALCULATION. The following calculations are used to determine the amount to of the allowable grant reduction for one month:
(a) An overpayment determined to be due to Department, applicant or recipient error, results in the Aid to Dependent Children grant being reduced by 10 percent of the unit's payment amount;

(b) An overpayment determined to be due to an intentional program violation or due to fraud as determined by a court of law results in the Aid to Dependent Children grant being reduced by 20 percent of the unit's payment amount.

008.05(B)(iii) TREATMENT OF CHILD OR SPOUSAL SUPPORT IN DETERMINING OVERPAYMENTS. When an individual receives a grant for which he or she is ineligible, the collected child or spousal support for the month(s) of overpayment will be used to offset the grant overpayment.

008.05(B)(iv) RETROACTIVE SUPPLEMENTAL SECURITY INCOME PAYMENT. The first month of ineligibility for Aid to Dependent Children for an individual with continuing Supplemental Security Income entitlement is the month he or she receives a Supplemental Security Income retroactive payment unless that payment has been reduced by the amount of Aid to Dependent Children paid for that month. Since ineligibility for Aid to Dependent Children does not begin before receipt of a Supplemental Security Income payment, Aid to Dependent Children payments issued before the receipt of Supplemental Security Income payments do not constitute overpayments.

008.05(B)(v) ZERO GRANT. If the Aid to Dependent Children grant is reduced to zero, it is still considered to be a grant case. In cases where child support is assigned, the payment must not be reduced below $10 to prevent termination of the assignment.

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