LA error overpayment

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  • #33722
    Anonymous
    Guest

    Hi,

    I am currently working on the subsidy report for 07/08, and i have noticed a discrepancy in how we are calculating LA error overpayments, and i just want to find out how other authorities/auditors are treating these.

    As far as I was aware, an overpayment is classified as LA error from the monday after all the information to process the change is received. I thought that this was clarified in circular G5/2007.

    All info received 01/10/08
    Overpayment created 22/09/08 to 20/10/08
    Therefore LA error should be from 06/10/08 to 20/10/08

    However, the subsidy manager is stating that if a payment is issued after all the information is received, then the whole period that this payment covers should be LA error as we could/should have stopped the payment.

    Therefore, in the same scenario: –

    All info recd 01/10/08
    Payment for period 22/09/08 to 20/10/08 isued on 03/10/08
    Overpayment created 22/09/08 to 20/10/08
    LA error for period 22/09/08 to 20/10/08

    The DWP guidance does not mention when payments are made, only that if the change is not processed before the next payday, then the overpayment should be classified as LA error from the monday after all the info needed to process the change is received.

    Can someone clarify whether my original interpretation is correct, or if it does depend on when payment is sent?

    #93753
    DianeT
    Participant

    I agree with your original interpretation. We had this very question raised by the auditor this year, and I directed him to the DWP Overpayments guide. Read it step by step – if the change is not processed by the next payday (which it wasn’t), then LA error starts from the Monday following receipt of all the info. I can’t see how this can be interpreted any other way.

    #93754
    Anonymous
    Guest

    [quote:f89d017490]I can’t see how this can be interpreted any other way.[/quote:f89d017490]

    That’s what i thought, yet somehow that is what our subsidy team are doing. They say that their interpretation makes sense, and is what they have always done. I don’t seem able to convince them.

    #93755
    beth_daly
    Participant

    The way that your subsidy team are doing it was the way that software companies interpreted it. I queried it with them when I started and was told that I was wrong and system was correct. However, a cireular by DWP) (can’t remeber which sorry) stated that LA Error is from Monday following regardless of payment periods and software companies had to change.

    Also see earlier thread on this board ‘Subsidy Splits’ for more info, Hope this helps,

    Good luck,

    Beth

    #93756
    Anonymous
    Guest

    Thanks Beth,

    that was another reason why they thought it was correct, because the system does it that way…. 🙄

    Thanks for your responses.

    #93757
    Stalbansbenefits
    Participant

    If you are on Northgate they changed their mind about this – the system still looks at the payment date when determing whether the whole of the payment should be LA error. This is the correspondence we got from them regarding this issue.

    [quote:553f943b81]Changes were not made to the Subsidy code for this WMS as the Audit Commission agreed with our initial interpretation and therefore we have allowed each Local Authority to decide if they wish to make the changes as reported on the identify script included in SRB232. [/quote:553f943b81]

    There is a job you can run (BENCHK 087) as part of subsidy to reclassify these overpayments if you want to adopt the Monday following rule…

    #93758
    Anonymous
    Guest

    Thanks St Albans, unfortunately we have Academy.

    Why would anyone prefer to use the payment dates when classifying overpayments, as surely this would lead to greater LA error?

    #93759
    Stalbansbenefits
    Participant

    Probably because as long as you are under your threshold you get 100% subsidy on LA error overpayments…

    #93760
    Anonymous
    Guest

    Of course.

    So from what you are saying, the auditors are happy either way?

    #93761
    Anonymous
    Guest

    We asked the Adelphi this earlier in the year, when Academy rel 49 (I think) changed the classification. The Adelphi confirmed that your first interpretation is correct.

    #93762
    chris harvey
    Participant

    We also asked the Adelphi this last year and got the same reply as Lorraine. We use Northgate and as a consequence Northgate provide a script to identify the overpayments incorrectly classified on the system as LA error. Northgate code all of a payment as LA error if the payment is made after the info received date. The script works out the correct LA error overpayments from the Monday after the info received date and allows you to manually amend the subsidy cells. It is mainly Rent Allowances that are affected.

    #93763
    Anonymous
    Guest

    Thanks again you for all your responses.

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