(1) When it is discovered that an administrative error resulted in an underpayment of low income energy assistance, it may be corrected by increasing the benefit award to cover the underpayment.

(a) For purposes of determining financial eligibility, such retroactive corrective payments shall not be considered as income.

(2) Except as provided in (3), current and future program year payments of low income energy assistance will be reduced the full amount of prior overpayments, unless the administrative cost would exceed the amount of overpayment.

(a) Additionally, cases in which the recipient willfully made false statements or withheld information causing overpayment are to be referred to the audit and compliance bureau for determination of fraud as provided in ARM 37.70.110.

(3) When it is discovered that the local contractor caused an overpayment of low income energy assistance or weatherization services, at the sole discretion of the department, the local contractor may be required to repay the entire overpayment to the department, rather than the overpayment being withheld from the recipient's future payments.