(1) A child care provider or a parent who has reason to believe an overpayment or underpayment of child care assistance has occurred must notify the department within ten days.

(2) The department may recover the amount of any child care payment made to a child care provider or to a parent which is in excess of the amount to which the provider or parent was entitled, regardless of whether the overpayment was caused by the department, by the provider, or by the parent.

(a) If an overpayment is due to any error, act, or omission of the parent, whether intentional or otherwise, the parent must repay the overpayment to the department.

(b) If an overpayment is due to any error, act, or omission of the provider, whether intentional or otherwise, the provider must repay the overpayment to the department.

(c) If an overpayment is due to any error, act, or omission of the department, the department may recover the overpayment from either the provider, the parent, or from both, but the total amount recovered from the provider and the parent may not exceed the amount of the overpayment.

(3) The provider or the parent must repay the overpayment within 30 days after the department sends notice of the overpayment with a demand for repayment.

(4) If the provider or the parent fails to repay the overpayment within 30 days, the department may reduce future child care payments or increase household child care copayments until the overpayment is recovered in full.

(5) If an underpayment of child care payments occurs, the underpayment will be corrected by increasing the payment for the following month to cover the underpayment.