Referring CALWORKS overpayments that occurred during COVID-19 for IPV investigation

CalWORKs overpayments established on or after August 1, 2021 for the period April, 2020 to or June 30, 2022, must be classified as administrative error.  However, counties are still required to refer any overpayment for investigation when they suspect fraud.  An overpayment that is initially classified as an AE under this policy must be reclassified if the county substantiates an Intentional Program Violation (IPV). An IPV can only be substantiated through a criminal court conviction, a signed Disqualification Consent Agreement, an Administrative Disqualification Hearing (ADH), or a signed ADH waiver.

Counties should consider how restrictions of in-person appointments, employment instability, income fluctuation, and delays in processing unemployment benefits have affected the ability for recipients to timely report changes when determining whether it is appropriate to refer a case for investigation as an intentional program violation.  (ACL 21-151, January 22, 2022.)