Liability of Facility as Authorized Representative

(A) Misrepresentation or Fraud. The organization or institution is responsible for any misrepresentation or fraud which it knowingly commits in the certification of residents. As an authorized representative, the organization or institution must be knowledgeable about the household's circumstances and should carefully review those circumstances prior to applying on its behalf. The organization or institution is strictly liable for all losses or misuse of SNAP benefits used on behalf of resident households and for all overissuances which occur while the households are residents of the facility. (B) Claims for Overissuances. Whenever an overissuance is discovered, whether by the worker, the Department, or the United States Department of Agriculture (USDA), a claim determination shall be established against the organization or institution to recover the value of the overissuance.