(a) The department and local social services district shall have the responsibility for investigating any case of alleged fraud/intentional program violation and ensuring that cases are acted upon in accordance with the procedures set forth in this Part.

(b) Unless specifically granted written authorization to forego initial processing and to proceed directly on the alleged fraud/intentional program violation by either the local social services official or his/her authorized representative or the district attorney of the jurisdiction on the grounds that to do otherwise would prejudice the prosecution of the claim, local social services districts shall initially proceed with the claim as an inadvertent household error prior to either referral to the district attorney or processing of the claim for an administrative disqualification hearing. A local district's failure to demonstrate compliance with the provisions of this subdivision shall be determinative only of the district's reimbursement and shall not affect the department's determination at a hearing required by this Part or a court's determination in an instance in which a claim is referred by a local social services district to the local district attorney for prosecution. Noncompliance with the provisions of this section shall not affect the amount of allotment reduction authorized in section 399.9(f) of this Part following a hearing decision that fraud/intentional program violation has occurred.