In this chapter, the following terms have the meanings indicated. Terms Defined. “Agency error” means an error caused by the local department's action or failure to act. “Assistance unit” means a group of eligible individuals living together for whom cash assistance has been authorized. “Client error” means failure by the recipient to correctly, promptly, or adequately report information which would have: Reduced the amount of the continuing benefits payments; or Resulted in total ineligibility. “Department” means the Department of Human Services. “Fraud” means: Willfully making a false statement or representation, willfully failing to disclose a material change in household or financial condition, impersonating another person to obtain, or attempting to obtain, benefits to which the individual is not entitled; or An intentional program violation as described in COMAR 07.03.10. “Local department” means a department of social services in a county or Baltimore City and the Montgomery County Department of Health and Human Services. Overpayment. “Overpayment” means the amount by which a benefit payment received by or for an assistance unit exceeds the amount it was eligible to receive. “Overpayment” may result from: Agency error; Client error; or Fraud. “Recoupment” means a process used by a local department to recover an overpayment from the continuing benefit payment of a recipient by withholding an amount determined appropriate, as described in Regulation .05 of this chapter. “Recovery” means a process used by a local department to recover an overpayment from an individual whose case is closed. Underpayment. “Underpayment” means a payment received by or for an assistance unit which is less than the proper amount allowable to the assistance unit. “Underpayment” occurs when the local department has a properly completed application and all information needed for an eligibility decision but does not: Act upon a reported change; Act upon a policy change; Correctly interpret policy; Correctly compute a benefit; or Act promptly on information.