A. If the department determines that any of the amounts allocated and distributed as provided in this chapter during the preceding twenty-four months are incorrect, the department shall adjust future monthly allocations to correct any overages or shortages as provided in this section. The state treasurer shall distribute revenues in accordance with the adjusted allocations determined pursuant to this section.

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B. An adjustment to the amount allocated and distributed shall not be initiated pursuant to this section more than twenty-four months after the original distribution.

C. The department shall adjust the allocations as follows:

1. In the case of overages, the department shall reduce the subsequent monthly allocation by the amount of the overage, if the remaining allocation is at least seventy-five per cent of the amount that would otherwise have been allocated to the recipient. If the entire amount of the required adjustment cannot be made in a single month, the department shall repeat the procedure in subsequent months until the overage is corrected.

2. In the case of shortages, the department shall increase the subsequent monthly allocation by the amount of the shortage, if the total amount of all of the increases in any single month does not exceed the total amount of all of the reductions made pursuant to paragraph 1 in that month. If the total of all reductions in a month is less than the amount of increases, the department shall proportionally reduce the increases.