Par.1.	Material Transmitted and Purpose – Transmitted with this Manual Letter are changes to Service Chapter 430-05 – Food Stamp Policy Manual.  This incorporates changes made with IM’s 4981 – ABAWD Waivers, 4982 – Treatment of Utility Costs for Self-Employment, 4986 – Expedited Services and 4989 – Effect of TANF Diversion Assistance on Other Programs.  Amendments to this manual letter are indicated in highlighted text in items 7, 24, 26, 37, 38 and 42.  

Par. 2. 	Effective Date – This manual letter is effective for all new applications and recertifications received on or after October 1, 2006 unless otherwise indicated.  Items 4, 7, 11, 15, 17, 26, 42 and 48 that address changes in policy for Simplified Reporting and items 9, 16, 24, and 25 that address Income Conversion are effective for all new applications and recertifications received on or after November 1, 2006 based on IM 4993.  

Definitions 430-05-10

1.	430-05-10 – Definition of Spouse.  The definition of spouse was changed based on guidance from the regional office.  This is a change in policy.

		Spouse

Either of two individuals who:

1.	Are married under applicable State law.  

2.	Are living together and holding themselves out to the community as husband and wife by representing themselves as such to relatives, friends, neighbors, or town’s people.

A person of the opposite sex who is a husband or a wife.  One man and one woman can become husband and wife through marriage (a legal union).  For purposes of the Food Stamp Program, members of a same sex marriage and being partners in a civil union are not considered spouses.  
	
Application Processing 430-05-20

2.	430-05-20-05 – Opportunity to Participate.  Updated this section to reflect the change of no longer postponing interviews for expedited households.  This supersedes IM 4986.
		
Opportunity to Participate 430-05-20-05
 
Opportunity to participate consists of providing households with an EBT card and having card issuance available for households to obtain their benefits.  

For any household that is entitled to expedited services the Household must be afforded an opportunity to participate within the 30-day or 7-day expedited processing timeframes.  Federal regulations just received in our office require that Households who do not have an EBT card because the application was mailed in or the applicant is unable to stay for the screening process must:  In order to afford households the opportunity to participate within these timeframes, the household must be issued an EBT card at prescreening or at the time of interview and have their benefits authorized no later then the 29th or 6th day.  This allows for the benefits to be deposited into their EBT account and available to the household on the 30th or 7th day.  

If a household is not issued a card at the time of the prescreening for expedited services, when the interview is conducted or if an interview is waived, the household must:

1.	have their application processed postponing the interview and verification if necessary, and

1.	receive the notice of eligibility within the 7 day processing timeframe allowing two days mailing time, and

2.	receive F012 - EBT Client Training and Schedule Notice, allowing two days mailing time and allowing the household at least 24 hours within the 7 day processing timeframe to obtain an EBT card.

PLEASE NOTE: Items 1 and 2 through 3 MUST all be completed within the processing timeframe 7 days after the date of application (taking into account holidays, weekends, and the fact that any notice generated on a Friday is not mailed until the next working day).

When the household comes in for EBT training and card issuance, the county must ensure that the EBT account is reactivated, if necessary.
 
Examples:

1.	A household requests an application on November 24, 2003, is screened, identity is obtained, an EBT card is issued and an interview is scheduled for November 28, 2003.  The household fails to keep the scheduled interview on November 28, 2003.  The worker must send F018 – Notice of Missed Interview and process the application November 28, 2003 postponing the interview and verifications as the household must have benefits no later than December 1, 2003.   The household is assigned a certification period of two months (November and December 2003).  Benefits for the month of December 2003 are not issued until the household completes the interview and provides the postponed verifications.

2.	The county receives an application in the mail on November 5, 2003.   The household has no phone so the county sends a notice of a scheduled interview for November 10, 2003.  At the interview verification of identity is obtained, an EBT card is issued and it is determined that the household is entitled to expedited service. The county must process the application by November 14, 2003 as the 6th day is November 15, 2003 which is a Saturday.

In this example if based on the information on the application it appears the household is entitled to expedited service, verification of identity is already on file and the household indicated on the application that they do not have an EBT card the county must process the application by November 6, 2003.  The notice of eligibility and the F012 must be sent that day and are dated November 7, 2003. This ensures that the household receives the notice of eligibility and the notice of training for EBT by November 10, 2003.  November 11, 2003 is a holiday and the household must have 24 hours (November 12, 2003) to come in, be trained and received the EBT card.

3.	A household drops off an application on November 13, 2003, provides verification of identity, but is unable to stay for the screening and EBT training.  The county attempts to contact the household by phone and is unsuccessful.  Based on the information contained on the application, it appears the household is entitled to expedited services.  The county sends a notice of a scheduled interview for November 17, 2003.   The household fails to keep the scheduled interview.   The county sends F018 Notice of Missed Interview and must process the application that day.  The notice of eligibility and the F012 must be sent that day and are dated November 18, 2003.  This ensures that the household receives the notice of eligibility and the notice of training for EBT by November 19, 2003.  The household has November 20, 2003 to come in, be trained and receive the EBT card.

Households initially applying that are not entitled to expedited service that have an EBT card, the household must be provided benefits if eligible, prior to the 30th day.
Households initially applying that are not entitled to expedited service that do not have an EBT card must receive the notice of eligibility and the F012 - EBT Client Training and Schedule Notice prior to the 27th day to ensure that the household has an opportunity to participate by the 30th day.
 
Ongoing cases must be authorized by the last day of the month so benefits are available to the household by the 1st day of each month.

3.	430-05-20-15 – Application.  Updated this section to reflect the change from Part 2 to Section 1 of the revised SFN 405 – Application for Assistance.  Also, incorporated the policy addressed in IM 4986 – Expedited Services requiring an interview for expedited households.  This supersedes IM 4986. 

	Application 430-05-20-15

An SFN 405 - Application for Assistance is considered incomplete if it contains only the applicant's name, address and signature of a responsible household member or authorized representative. The household must be advised that it does not have to be interviewed before filing the application and may file an incomplete application form.  The incomplete application must be registered, the pending notice sent and the interview scheduled. 
 
Part 2 Section 1 will be considered a completed application if the household is entitled to expedited service and it contains the applicant's name, address, household composition, income, assets and the signature of the applicant, a responsible household member or authorized representative.  If the shelter/utility costs questions are not completed, it is still considered complete. application and those expenses are not allowed when determining expedited benefits.  
 
If the household is entitled to expedited service, Part 2 Section 1 must be registered as an application and the interview must be scheduled if the applicant is not interviewed at the time of request.  

If the household is not entitled to expedited service, Part 2 Section 1 must be registered as a pending application and the interview and mandatory verifications cannot be postponed.  To complete the application process Parts 3 through 6 of the application are required along with the interview and verifications.  The interview can be waived for hardship reasons. The pending notice must be sent to the household and the interview scheduled.  
 
The date of application is the date the county receives a signed SFN 405 – Application for Assistance.  The date of application for an Application for Assistance that is mailed in is the date the county receives it.  The date of application for a faxed Application for Assistance is the date the county receives it.  If a faxed or mailed Application for Assistance is received on a weekend or holiday, the date of application is the next working day.  The county must document the date an application is filed by recording the date it was received on the application.  The processing timeframe begins the day following the date of application.  
 
For residents of institutions who apply prior to release, the date of application is the date of the release.
 
An individual’s signature on the application attests to providing full information and to understanding the reporting requirements of the program.

4.	430-05-20-30 – Automatic Notices.  Added three new automatic notices.  One of the three will be sent when an initial application is approved depending on the reporting requirement and the household circumstances.   

		Automatic Notices 430-05-20-30

The following notices are automatically sent when an application is approved:

•	X217 - Telephone Assistance Programs – A household can complete and submit this form to their telephone provider to receive a monthly deduction off the basic telephone fee. 
•	X840 - Meal Benefit Notice - A household can complete and submit the form to the school to receive free or reduced meals for elementary or secondary school aged children.
•	X420 – Change Reporting Requirements – for households subject to change reporting this notice informs the household of their reporting requirements.
•	X421 – Simplified Reporting Requirements for Categorically Eligible Household Over Gross Income – for categorically eligible household with income over the gross income limit, this notice informs the household of their reporting requirements.
•	X422 – Simplified Reporting Requirements – for households subject to simplified reporting this notice informs the household of their reporting requirements.
	
5.	430-05-20-50-15 – Expedited Processing Standard.  Updated this section to reflect the change from Part 2 to Section 1 of the revised SFN 405 – Application for Assistance.  Also, incorporated the policy addressed in IM 4986 – Expedited Services requiring an interview for expedited households.  This supersedes IM 4986. 

	Expedited Processing Standard 430-05-20-50-15

County application procedures must be designed to identify households eligible for expedited service at the time the household requests assistance by conducting a pre-screening.  Section 1 of the Application for Assistance must be used to screen for expedited services.  The A household cannot waive its right to expedited service.
 
If any of the following apply, the household is entitled to expedited services: 
1.	Households with less than $150 in countable gross monthly income when their countable liquid assets do not exceed $100.
2.	Migrant or seasonal workers who are destitute and countable liquid assets do not exceed $100.
3.	Households who have combined countable gross monthly income and countable liquid assets that are less than the household’s monthly rent or mortgage and the appropriate mandatory utility standard.

If pre-screening identifies a household as not entitled to expedited service and it is later determined that the household is entitled to expedited services, the 7-day processing timeframe begins with the date the household is discovered entitled to expedited services. standard is calculated from the date of discovery that the household is entitled to expedited service. 
Example:
An application is filed on May 5 and indicates that the household is not entitled to expedited service. At the interview on May 12 it is discovered that the household has countable income of less than $150 and countable liquid assets, which do not exceed $100.  The application must be processed by May 17 so benefits are available to the household by the 7th day (May 18).
 
Part 2 Section 1 of the SFN 405 - Application for Assistance must be used to screen for expedited services. If the application is mailed in, the county must attempt to contact the household to complete the screening.  If the applicant is entitled to expedited services, the county must schedule an interview as soon as possible in order to meet the 7-day processing timeframe.   verification of identity of the applicant must be obtained and the applicant must be issued an EBT card if they do not already have one.  The county must ensure that the EBT account is reactivated, if necessary.  If the applicant needs assistance in completing the application, the county must provide that assistance.  
 
If the application is mailed in and the county has verification of identity on file, the county must attempt to contact the household to complete the screening process by phone.  If the household does not have a phone, the county must schedule the interview as soon as possible in order to meet the 7-day processing timeframe.  to ensure that the expedited time frames are met.
 
If the application is mailed in, the county does not have verification of identity on file, the county must attempt to contact the household to complete the screening process by phone.  If the household does not have a phone, the county must schedule the interview as soon as possible in order to meet the 7-day processing timeframe.
 
If the interview is completed and identity is verified, benefits must be available to the household on the 7th day.  If the household does not have an EBT card, a card must be issued at the time of prescreening or interview.  If the household has an EBT card, the worker must ensure the account is active.  Benefits must be issued by the 6th day for deposit into the household’s EBT account to ensure they are available to the household on the 7th day.  

If the household does not show for the interview, the notice F018 – Notice of Missed Interview must be sent.  If the household reschedules the interview in time to meet the expedited timeframe, the interview must be completed, identity verified and benefits must be available to the household on the 7th day. If the household does not have an EBT card, a card must be issued at the time of prescreening or interview.  If the household has an EBT card, the worker must ensure the account is active.  Benefits must be issued by the 6th day for deposit into the household’s EBT account to ensure they are available to the household on the 7th day.  

If the household does not reschedule the interview in time to meet the 7-day processing time frame, the household loses its entitlement to expedited services and the application is processed within the 30-day processing time frame.  If the household makes no further contact, the application must be denied on the 30th day following the date of application for failure to complete the interview process.  

		Incomplete Application
		
If an incomplete application is submitted by mail or an incomplete application is filed and the household is unable to stay for the pre-screening, eligibility for expedited processing cannot be determined. The worker must schedule an interview as soon as possible.  

If the interview is completed, identity is verified and the household is found eligible for expedited services, the 7-day processing timeframe starts with the date of interview.  Benefits must be made available to the household on the 7th day.  If the household does not have an EBT card, a card must be issued at the time of interview.  If the household has an EBT card, the worker must ensure the account is active.  Benefits must be issued by the 6th day for deposit into the household’s EBT account to ensure they are available to the household on the 7th day.  

If the interview is completed and the household is not eligible for expedited services, the application must be processed within the 30-day timeframe.  

If the household does not show for the interview, the notice F018 –Notice of Missed Interview must be sent.  If the household reschedules the interview in time to meet the expedited timeframe, the interview is completed, identity verified and the household is found eligible for expedited services, the 7-day processing timeframe starts with the date of interview.  Benefits must be made available to the household on the 7th day.  If the household does not have an EBT card, a card must be issued at the time of interview.  If the household has an EBT card, the worker must ensure the account is active.  Benefits must be issued by the 6th day for deposit into the household’s EBT account to ensure they are available to the household on the 7th day.  

If the household does not reschedule the interview in time to meet the 7-day processing time frame, the application is processed within the 30-day processing time frame.  If the household makes no further contact, the application must be denied on the 30th day following the date of application for failure to complete the interview process.

There is no limit to the number of times a household can be certified under expedited processing.
 
Exception:
Before a household is entitled to expedited services when the interview and/or verifications were postponed, the household must have provided the postponed completed the interview and verifications or have since been certified under 30-day processing standards.

6.	430-05-20-50-15-05 – Special Procedures for Expediting Services. Incorporated the policy addressed in IM 4986 – Expedited Services requiring an interview for expedited households.  This supersedes IM 4986. 
 
Special Procedures for Expediting Services 430-05-20-50-15-05
 
To expedite the certification process, a worker must use the following procedures.
 
Interviews

For a household that is entitled to expedited service, the worker must schedule an interview within the first six days.  If the household fails to keep the scheduled interview, the worker must send notice F018 – Notice of Missed Interview.  This notice informs the household that they are responsible to schedule a second interview.  However, benefits must not be delayed beyond the expedited timeframe because an interview has not been conducted.
 
If a household is entitled to expedited service and is also granted a waiver of an office interview, the worker must conduct the interview (unless the household cannot be reached), and complete the application process within the expedited service timeframes.
 
Identity

In all cases, the applicant’s or authorized representative’s identity must be verified through readily available documentary evidence or a collateral contact.  Verification of identity cannot be postponed.

If verification of identity of the applicant is not provided at the interview, the application must be processed within six days of receipt of verification of identity.  For expedited applications identity cannot be waived.
 
Example:

The county receives the application on May 10 and schedules an interview on May 11.  Verification of identity was not provided.  The household fails to show for this interview.  On May 17 the household calls to set up an interview.  Worker schedules an interview for May 20.

On May 20 the household comes in for the interview and provides the application and verification of identity.  As verification of identity and interview requirements were met on May 20, the worker has until May 26 to meet the expedited timeframe.  (The application must be processed by May 25 (6th day from May 20) so that EBT benefits are available to the household on May 26 (7th day)).  
 		
Verifications

All reasonable efforts must be made to verify within the expedited processing standards, the household's residency, income, alien status and all other factors, through readily available documentary evidence or a collateral contact. Benefits must not be delayed beyond the expedited timeframe because these eligibility factors have not been verified.
 
Postponed Interview/Verifications

Expedited households are the only households where the interview and/or mandatory verifications can be postponed.  The interview and All mandatory verifications including questionable information (i.e. income, deductible expenses, social security numbers, work requirements, citizenship, job quits, verification of participation in another state, etc.) must be postponed if unable to verify within expedited timeframes.
 
Exception:

The identity of the applicant or the authorized representative.  
 
The worker must postpone the verification(s) and interview which normally would be required, if necessary to meet the expedited timeframe.  
 
A household reapplying must not be denied for failure to complete the interview or provide postponed verifications. However, they lose their entitlement to expedited service and are processed under 30-day processing standards.
 
If it is determined that benefits were issued incorrectly because verifications or the interview were postponed in order to meet the expedited time frames, a claim is not established.
 		
Exceptions:

1.	the household failed to report information, a claim must be established.

2.	Agency errors.  
 
Work Requirements

The worker must:

1.	Require the applicant to complete the SFN 385 - Affidavit for Work Requirements, unless exempt. 

2.	Require the applicant to complete the SFN 385 - Affidavit for Work Requirements for all non-exempt household members. Work requirements for non-exempt household members must be postponed, if necessary, to meet the expedited timeframe.

3.	Require an authorized representative interviewing on behalf of a household to complete the SFN 385 - Affidavit for Work Requirements for all non-exempt household members.

4.	Postpone questionable exemptions if the expedited service timeframes cannot be met.
 
Social Security Numbers (SSN)

Expedited households are the only households in which individuals are allowed to participate without a SSN or without proof of application for a SSN for one full month of benefits.
 
In all cases, expedited households must be asked to provide a SSN for each individual in the household. 
 
Exception: 

A newborn is allowed to participate without a SSN or proof of application of SSN for six months following the month the baby is born or by the next recertification, whichever is later. 

Examples:

The following examples do not include newborns. 

1.	A five person expedited household applies May 1. Two of the five household members do not have a SSN or proof that they have applied. All five individuals are entitled to participate for the full month of May (May 1 through May 31).

In this example, the household must be certified for the month of May only, and must reapply for June. If at the time of recertification the two individuals are unable to provide a SSN or proof of application for a SSN, they are ineligible household members (DI) when determining benefits for June or until the SSN is provided. June benefits would be for a three-person household.

2.	A five person expedited household applies May 2 (anytime after the first of the month). Two of the five household members do not have a SSN or proof that they have applied. All five individuals are entitled to participate for the partial month of May (May 2 through May 31), and the full month of June (June 1 through June 30). 

In this example, the household must be certified for no more than the months of May and June and must reapply. If at the time of July recertification the two individuals are unable to provide a SSN or proof of application for a SSN, they are ineligible household members (DI) when determining benefits for July or until the SSN is provided. July benefits would be for a three-person household.

7.	430-05-20-50-15-10 – Length of Certification Period.  Added information on expedited processing for simplified reporting.  

Households that are certified on an expedited basis and have provided all required verifications, must be assigned regular certification periods. 

1.	If verification other than SSN was postponed and the household applied on or before the 15th of the month, the household must be certified for the month of application only. 

Example:

A household applies on or before June 15 and verification has been postponed. This household must be certified for the month of June only.
 
When certified only for the month of application, the worker must send notices F101 - Expedited FS Application Waived Interview/Verification, F802 - Food Stamp 1 or 2 Month Certification Expiration Notice, and provide the household with SFN 407 - Recertification for Food Stamps. The household must reapply and complete the verification, which was postponed in order to qualify for expedited service again. 
 
Exception:

Unless certified under 30-day processing standards since the last expedited application.

2.	If verification other than SSN was postponed and the household applied on the 16th of the month or later, the household must be certified for the month of application and the following month. Benefits for the second month must not be issued until the interview is completed and all postponed verifications have been provided. 

Exception:

If expenses were postponed and not provided, the second benefit month is issued without allowing unverified expenses.

When certified for the month of application and the following month, the worker must send notices F101 - Expedited FS Waived Interview/Verification and F802 - FS 1 or 2 Month Certification Expiration Notice. If the application is processed after the 25th day of the application month, the worker must also provide the household with form SFN 407 - Recertification for Food Stamps.

 				Example:

A household applies on June 16. This household must be certified for the months of June and July. Benefits for the month of June must be processed by June 22. Benefits for the month of July must not be issued until the interview is completed and all postponed verification has been obtained. July benefits are issued no later than the 5th working day from the date the interview is completed and verifications are received or July 1, whichever is later.

If the interview is not completed and postponed verifications are not received by July 31, July benefits are not issued and the case must be closed June 30.

If a household is entitled to expedited service and verifications are postponed, the household must be assigned the appropriate certification period (1 or 2 months) and is a change reporting household.  When the household files the recertification application, provides the postponed verifications, is interviewed and eligibility is determined, if the household is eligible, the worker must then determine if the household is subject to change reporting or simplified reporting requirements.  

8.	430-05-20-55-05 – Notice of Required Verification.  Updated this section to include the Application for Assistance Guidebook of the revised SFN 405 – Application for Assistance.

	Notice of Required Verification 430-05-20-55-05

	The worker must provide each household with the Application for Assistance Guidebook as part Part One of the SFN 405 - Application for Assistance at the time of application.  The Application for Assistance Guidebook Part One informs the household of the verifications the household must meet provide as a part of the application process.  This does not serve as documentation of a request from a worker for verification.

9.	430-05-20-60-30 – Gross Income.  Added policy and examples into this section to address income conversion.  This is a change in policy.  

		Gross Income 430-05-20-60-30

1.	The unearned income for all household members must be verified.

Exception:

Client statement of the household’s interest or dividend income from all sources when it is paid out and is $50 or less per month ($600 or less per year) is acceptable, unless questionable.

2.	Gross earned income must be verified for the following individuals:

a.	Age 18 and older.

b. 	Age 16 and older if not attending school at least halftime.

If the person or organization providing the income has failed to cooperate with the household and the worker, and all other sources of verification are unavailable, the worker must determine an amount based on the best available information provided by the household. The worker must document the attempt to verify income and the income used.

Actual income from the month of application to the date of interview must be verified and documented.  Income for the remainder of the month must be established and documented based on client information and prudent person judgment.  This may include using verification of the last month's income if that is what the household anticipates for the first month of the certification period.

If all income for the month of application is available prior to the interview date, that income must be used for the month of application. 

For all cases where income (both earned and unearned) is received either weekly or biweekly, weekly amounts must be multiplied by 4.3 and biweekly amounts must be multiplied by 2.15 when determining benefits.

Examples:

1.	Household applies for benefits on October 5th and is interviewed on October 17th.  At the interview the household reports they are paid every week on Fridays and verifies all earnings received in September and October to the date of interview.  September earnings were received on the 1st, 8th, 15th, 22nd and 29th.  The household received paychecks on October 6th and 13th and will receive additional paychecks on October 20th and 27th.   They state at the interview that they expect the October 20th and 27th paychecks to be the same as what they received on the October 6th and 13th paycheck.  The October 6th and 13th paycheck must be totaled and divided by two.  This amount must then be multiplied by 4.3 and used to determine eligibility and level of benefits for the month of October.  

2.	Household applies for benefits on October 17 and is interviewed on October 26th.  At the interview the household reports they are receiving biweekly unemployment benefits and verifies checks received on October 3rd and October 17th.  The household will receive a third check on October 31st.  Unemployment benefits are expected to continue.  The October 3rd and October 17th checks must be totaled and divided by two.  This amount must then be multiplied by 2.15 and used to determine eligibility and level of benefits for the month of October.  

10.	430-05-20-80 – Categorical Eligibility.  Included Diversion Assistance as a household that is categorically eligible.  This supersedes IM 4989.

		Eligibility 430-05-20-80
 
The following households are categorically eligible:

1.	Any household in which ALL members receive TANF, including Diversion Assistance.

Exception:
A TANF household remains categorically eligible if the only reason a child is not included in the monthly TANF grant is because of a benefit cap.

2.	Any household in which ALL members receive SSI, including SSI presumptive eligibility benefits or 1619b. 

3.	Any household in which ALL members receive TANF and/or SSI.

Exception:

A TANF household remains categorically eligible if the only reason a child is not included in the monthly TANF grant is because of a benefit cap.

Receipt of TANF and SSI benefits is defined as:

a.	a benefit that was authorized, but not received, or
b.	a benefit that was suspended, or
c.	a benefit that was recouped, or
d.	a benefit not paid because it was less than a minimum amount.

Households with a member(s) that has been disqualified from participation are not categorically eligible.

11.	430-05-20-95 – Certification Periods at Application.  This section was revised to address the change in certification periods as a result of simplified reporting.  This is a change in policy.

		Certification Periods at Application 430-05-20-95
 
Certification periods, conforming to calendar months, must be assigned to all eligible households. At initial application, the first month of the certification period will generally be the month in which the application is filed.
 
Simplified reporting households must be certified for 12 months. Households subject to the change reporting requirements must be assigned an appropriate certification period based on its circumstances not to exceed 12 months.  Households must be assigned the longest certification period (1 to 12 months) based on the predictability of the household’s circumstances.
 
For food stamp households, the worker is responsible to assign the appropriate certification period, up to 12 months, based on whatever is most appropriate for the household.
 
Exceptions:

1.	Households, other than those listed below, that have earned income must be certified for no more than six months.

a.	Any combination Food Stamp/TANF case.

b.	Any combination Food Stamp/Medicaid case subject to monthly reporting for Medicaid purposes.

c.	Self-employed households with annualized income.

d.	Households with averaged contract income.

These households may be assigned certification periods of up to 12 months.  

2.	Households, in which all members are in receipt of TANF, must be assigned certification periods that are the same as the TANF certification period, to the extent possible.

3.	Households eligible for a child support deduction that have no record of regular child support payments or of child support arrearages must be certified for no more than three months.

	Households with a record of regular child support payments and/or child support arrearages must be certified for no more than six months.

4.	Households containing individuals who are not exempt from the ABAWD provisions must be certified for no more than three months. 

5.	Adult siblings (age 18 or older) who live together but claim separate household status must be certified for no more than six months. 

6.	Adult children over 22 who live with parents but claim separate household status must be certified for no more than six months. 
Household with Special Circumstances 430-05-30

12.	430-05-30-15 - Group Home Living Arrangement.  Updated the thrifty food plan in the example to the new amount.  This is a change in policy.   

Treatment of Expenses
For residents who have a single payment for meals and lodging, the amount of the payment that exceeds the Thrifty Food Plan must be allowed as a shelter deduction.
 			Example:
A resident is charged a single charge of $350 for meals and lodging, $195201 ($350 – $155149 Thrifty Food Plan) is used as a shelter deduction.
If a resident has a separate identifiable payment for room charges, that amount must be allowed as a shelter deduction.

13.	430-05-30-30 – Companion Household.  This section was updated with the new income limits for companion households.  This is a change in policy.  

		Companion Household 430-05-30-30
 
An elderly and disabled individual living with another household because they are unable to purchase and prepare their own meals may be granted separate household status. The companion household is the household the elderly and disabled household member lives with.
 
Gross Monthly Income Limits for Companion Households

Verification of monthly gross income for both the companion household and the elderly and disabled household member must be verified. The gross income of the companion household must meet the following gross income limits for their appropriate household size without regard to the elderly and disabled household member. If the gross income of the companion household is within the gross income limits, eligibility and level of benefits is based solely on the elderly and disabled household members income and assets. 
 
Example:

An elderly and disabled individual lives with another household consisting of mom, dad and two children. In determining eligibility for the elderly and disabled individual the worker must verify the gross monthly income of dad, mom and two children and compare that to the gross income limit for a family of four based on the table ($27502,661). If gross monthly income for the family of four is $27502,661 or less, then eligibility and level of benefits for the elderly and disabled individual is based solely on the elderly and disabled individual’s income and assets.
 
HH Size	Maximum
Income	HH Size	Maximum Income	
1	$13481,316	5	 $32183,109	
2	18151,765	6	 36853,558	
3	22832,213	7	 41534,006	
4	27502,661	8	 46204,454	
 
	Each Additional Member	+468449	

14.	430-05-30-55-15 – Treatment of Expenses.  Added clarification to the treatment of utility expenses section for self-employed households with a business in the household’s home.  This supersedes IM 4982.
•	Utility Costs
If a self-employment business is in a household’s home, the household must be allowed the appropriate mandatory utility standard as a shelter cost deduction and no self-employment cost of doing business.
Examples:
Day care providing in home day care, beauty shop operated out of the home, Avon or Tupperware claiming a portion of home for business.
If a self-employed household’s home is on property connected to property used for self-employment, the worker must determine if the shelter costs and self-employment costs can be separately identified.
Self-employment household’s where utilities are measured and billed separately are entitled to the appropriate mandatory utility allowance for its residence and to the separately billed self-employment costs as a cost of doing business.
Self-employment households where there is only one meter must use the following to separately identify costs: 
•	Allow the appropriate mandatory utility standard for the household's residence, and 
•	Allow the total utility costs minus the appropriate mandatory utility standard as a self-employment cost of doing business.

Recertification 430-05-35

15.	430-05-35-17 – Automatic Notices.  This is a new section that addressed three new automatic notices.  One of the three will be sent when a recertification application is approved depending on the reporting requirement and the household circumstances.   
	Automatic Notices 430-05-35-17

The following notices are automatically sent when a recertification application is approved:

•	X420 – Change Reporting Requirements – for households subject to change reporting this notice informs the household of their reporting requirements.
•	X421 – Simplified Reporting Requirements for Categorically Eligible Household Over Gross Income – for categorically eligible household with income over the gross income limit, this notice informs the household of their reporting requirements.
•	X422 – Simplified Reporting Requirements – for households subject to simplified reporting this notice informs the household of their reporting requirements. 
 
16.	430-05-35-40 – Mandatory Verification.  Added policy and examples into this section to address income conversion.  This is a change in policy.

		Mandatory Verification 430-05-35-40

The worker MUST verify the following information at recertification:

1.	SSN - must be provided for all household members not previously provided.

Exception - Newborn:

A newborn without a SSN must be included in the household. The household must provide the SSN or proof of application at the next recertification or within six months following the month the baby is born, whichever is later. 

2.	Identity - Must be verified for a newly designated authorized representative if the authorized representative completes the interview.

3.	Residency - Must be verified if household has moved.

4.	Disability:

a.	Permanent disability, not previously verified, must be verified for any household member. 
b.	If the disability is not obvious, the household must provide a statement from a physician, licensed or certified psychologist, certifying that the individual is disabled. 

5.	Income:

a.	Changes in the source of income must be verified.

b.	The unearned income for all household members must be verified.

Exception:

Client statement of the household’s interest or dividend income from all sources when it is paid out and is $50 or less per month ($600 or less per year) is acceptable, unless questionable.

c.	Gross earned income must be verified for the following individuals:

(1)	Age 18 and older.

(2)	Age 16 and older if not attending school at least half time.

Actual income from the month of recertification to the date of interview must be verified and documented. Income for the remainder of the month must be established and documented based on client information and prudent person judgment. This may include using verification of last month's income if that is what the household anticipates for the first month of the new certification period.

If all income for the month of recertification is available prior to the interview date, that income must be used for the first month of the new certification period. If the household anticipates a change for the first month of the new certification period, that change must be verified and used. 

If all income for the month of recertification is not available and the household cannot reasonably anticipate the amount of income for the first month of the new certification period, base month income must be used. 

For all cases where income (both earned and unearned) is received either weekly or biweekly, weekly amounts must be multiplied by 4.3 and biweekly amounts must be multiplied by 2.15 when determining benefits.

Examples:

1.	Household files a recertification for November benefits on October 5th and is interviewed on October 17th.  At the interview the household reports they continue to be paid every week on Fridays and verifies all earnings received in September and October to the date of interview.  September earnings were received on the 1st, 8th, 15th, 22nd and 29th.  The household received paychecks on October 6th and 13th and will receive additional paychecks on October 20th and 27th.   They state at the interview that they expect the October 20th and 27th paychecks to be the same as what they received on the October 6th and 13th paycheck.  The October 6th and 13th paychecks must be totaled and divided by two.  This amount must then be multiplied by 4.3 and used to determine eligibility and level of benefits for the month of November.  

2.	Household files a recertification for November benefits on October 17 and is interviewed on October 26th.  At the interview the household reports they continue to receive biweekly unemployment benefits and verifies checks received on October 3rd and October 17th.  The household will receive a third check on October 31st.  Unemployment benefits are expected to continue.  The October 3rd and October 17th checks must be totaled and divided by two.  This amount must then be multiplied by 2.15 and used to determine eligibility and level of benefits for the month of November.  

Documentation must explain how the worker arrived at the amount of income used.

17.	430-05-35-50 – Certification Periods at Recertification.  This section was revised to address the change in certification periods as a result of simplified reporting.  This is a change in policy.

		Certification Periods at Recertification 430-05-35-50
 
Certification periods, conforming to calendar months, must be assigned to all eligible households. At recertification initial application, the first month of the certification period will generally be the month following the month in which a recertification the application is filed.
 
Simplified reporting households must be certified for 12 months. Households subject to the change reporting requirements must be assigned an appropriate certification period based on its circumstances not to exceed 12 months.  

Households must be assigned the longest certification period (1 to 12 months) based on the predictability of the household’s circumstances.
 
For food stamp households, the worker is responsible to assign the appropriate certification period, up to 12 months, based on whatever is most appropriate for the household.

 		Exceptions:

1.	Households, other than those listed below, that have earned income must be certified for no more than six months.

a.	Any combination Food Stamp/TANF case.
b.	Any combination Food Stamp/Medicaid case subject to monthly reporting for Medicaid purposes.
c.	Self-employed households with annualized income.
d.	Households with averaged contract income.

These households may be assigned certification periods of up to 12 months.

2.	Households, in which all members are in receipt of TANF, must be assigned certification periods that are the same as the TANF certification period, to the extent possible.

3.	Households eligible for a child support deduction that have no record of regular child support payments or of child support arrearages must be certified for no more than three months.

	Change reporting households with a record of regular child support payments and/or child support arrearages must be certified for no more than six months.

4.	Households containing individuals who are not exempt from the ABAWD provisions must be certified for no more than three months. 

5.	Adult siblings (age 18 or older) who live together but claim separate household status must be certified for no more than six months.
6.	Adult children over 22 who live with parents but claim separate household status must be certified for no more than six months.

Work Requirements for Participation 430-05-40

18.	430-05-40-10 – Exemptions from Work Requirements.  Included Diversion Assistance households as a household that is exempt from the work requirements.  This supersedes IM 4989.

		Exemptions from Work Requirements 430-05-40-10
 
The following individuals are exempt from the work requirements (client statement is acceptable unless questionable):

1.	Individuals age 60 or older. If an individual turns age 60 during the month of application, they are exempt. 

2.	Individuals younger than 16 years of age.

If an individual reaches their 16th birthday and they are not exempt, they must register as part of the next scheduled certification process.

3.	Individuals age 16 or 17 if:

a.	Not the head of household, or

b.	Attending school, or
c.	Enrolled in an employment or training program at least half-time.

4.	An individual enrolled at least half-time in high school or working to obtain a GED, in any recognized school, training program, or institution of higher education. 

An individual remains exempt during normal periods of class attendance, vacation, and recess. 
If an individual graduates, is suspended or expelled, drops out, or does not intend to register for the next normal term (excluding summer school), they are no longer considered a student and are not exempt.
 
Examples:

1.	An individual who graduates from high school in May and anticipates or is accepted for the fall semester in an institution of higher education is not considered a student until the first day of the school term and is not exempt from the work requirements. 

2.	An individual, who has not attended the prior school term but anticipates or is accepted for the next term, is not considered a student until the first day of the school term and is not exempt from the work requirements.

5.	Individuals physically or mentally unable to work. If the physical or mental incapacity is obvious and known to the worker, it should be documented in the case file and no further verification is needed. 

If the physical or mental incapacity is not obvious or known to the worker, verification is required.

Examples:

1.	A physician's statement.

2.	A statement from a licensed or certified psychologist or psychiatrist.
3.	Application for, receipt of, or entitlement to temporary or permanent disability benefits.
4.	Individuals who are appealing a SSA or SSI denial.

5.	Individuals who are accepted and actively involved in services through Vocational Rehabilitation as verified by Vocational Rehabilitation.

6.	An individual in receipt of Temporary Assistance to Needy Families (TANF) including Diversion Assistance or Tribal Work Experience Program (TWEP).

7.	A parent or other household member responsible for the care of a dependent child under six or an incapacitated individual who is a member of the food stamp household. Only one member may claim an exemption as the primary person responsible for the care of dependents when the responsibility is shared.

If the child's sixth birthday is reached within a certification period, the individual responsible for the child's care must register as part of the next regular recertification process unless otherwise exempt.

The exemption for the primary care giver can be changed during the household’s certification period.

8.	Individuals who are in receipt of unemployment compensation including Railroad Unemployment Benefits or one who has applied for and is eligible, but has not yet started to receive unemployment compensation. If the eligibility is questionable, verification must be obtained. 

9.	A regular participant (whether in or outpatient) in a drug addiction or alcohol treatment and rehabilitation program.

10.	Individuals who are employed and working at least 30 hours weekly (can be averaged) or receiving weekly earnings at least equal to the federal minimum wage multiplied by 30 hours. This includes:

a.	Self-employed individuals who are certified for one year when the worker determines that the employment constitutes a full-time job. 

b.	Individuals receiving a training wage. The training wage must be substituted for the applicable federal or state minimum wage when determining if the individual is exempt from work requirements. 

c.	State certified individuals who home school their children a minimum of 30 hours per week. For State certification, the school district must have certified the individual to do home schooling. 

d.	Individuals who, by contract, derive their annual income in a period of time shorter than one year.
  
19.	430-05-40-45 – Job Opportunities and Basic Skills (JOBS) and Unemployment Compensation.  Added an exception and an example regarding Diversion Assistance.  This supersedes IM 4989.  

Also, added two additional examples for clarification.

Job Opportunities and Basic Skills (JOBS) and Unemployment Compensation 430-05-40-45
 
The following provisions apply to both BEST and non-BEST counties.
 
An individual in receipt of TANF or an individual in receipt of UIB is disqualified from the Food Stamp Program for failure to comply with JOBS/Tribal NEW or UIB requirements. Based on discussion with the State Job Service Office and requirements for receipt of unemployment benefits, there is no failure to comply with UIB requirements. The individual simply does not receive a benefit.

Exceptions:

1.	If an individual is exempt from the Food Stamp work requirements for a reason other then receipt of TANF or UIB.

2.	When an existing uncured sanction is bypassed for Diversion months and the sanctioned individual's needs are included in the Diversion Assistance benefit, the individual must be included in the Food Stamp benefit.  If the existing sanction is processed when a TANF application is entered after the Diversion Assistance case closes and the individual is subject to the sanction for TANF, the disqualification applies for Food Stamps.

			Example:

A TANF/FS household includes an individual who is sanctioned for TANF and as a result is disqualified for FS and the gross TANF grant is counted in determining eligibility and level of benefits for FS.  The TANF case closes.  The FS case continues and the individual remains DW for FS and the TANF grant is removed.  

The household re-applies for TANF and is eligible for Diversion Assistance.  The sanctioned individual’s needs are included in the Diversion Assistance grant.  Since the individual is eligible for Diversion Assistance the disqualification for FS must be ended and the individual included in the FS case.  The Diversion Assistance grant is counted for FS.  

The Diversion Assistance case closes.  The household reapplies for TANF and the individual is ineligible for TANF because of the outstanding JOBS sanction.  The individual must be disqualified for FS.  The net grant is counted as the sanction is being applied at initial application for TANF and will not result in an increase in FS.
 
If an individual is sanctioned for TANF due to non-compliance with JOBS/Tribal NEW and they do not fully complete a proof of performance (POP) prior to or on the second to the last working day of the sanction penalty month, a TANF benefit must not be anticipated for the next month.  
 
If an individual fully completes a POP prior to or on the second to the last working day of a month, a TANF benefit must be anticipated for the next month.
 
Examples:

1.	An individual is scheduled to complete their POP on August 28 (the second to the last working day of the month).  At 4:00 p.m. on August 28, the JOBS/Tribal NEW coordinator calls to inform the county that the client successfully completed their POP that day. Because the client fully completed a POP prior to or on the second to the last working day of the month, a TANF benefit must be anticipated for the next month.  

2.	An individual is scheduled to complete their POP on August 29, (the last working day of the month).  Because the client has not fully completed the POP prior to or on the second to the last working day of the month, and the client may not be successful in completing the POP, a TANF benefit must not be anticipated for the next month.  

3.	An individual begins their POP on August 29, (the last working day of the month).  Even though JOBS policy allows a client’s TANF case to be reverted to open if they successfully complete the POP that started in the sanction penalty month, a TANF benefit must not be anticipated for the next month.

If an individual is sanctioned by TANF, the TANF grant prior to the reduction is counted in calculating the food stamp benefits.

Example:

Mom is sanctioned for non-compliance with a JOBS/Tribal NEW requirement. Mom’s needs are removed from the grant and the grant is reduced from $500 to $400. When calculating food stamp level of benefits, a disqualification is imposed and the grant amount of $500 is counted as unearned income.
 
An individual disqualified from the Food Stamp program for failure to comply with TANF or UIB can regain eligibility during the disqualification period if they comply with the TANF or UIB requirements or become exempt.

Examples:

1.	Ongoing TANF only case. Mom fails to comply with JOBS/Tribal NEW and is sanctioned for TANF effective December. January 3 the household applies for FS. Mom remains sanctioned for TANF. There is NO TANF related disqualification for FS because Mom was not in receipt of FS at the time the TANF sanction was imposed. Mom is subject to the FS work requirements as her needs are NOT included in the TANF grant due to the sanction. Mom must register for work unless otherwise exempt.

2.	Ongoing TANF only case. In November Mom fails to comply with JOBS/Tribal NEW and is sanctioned for TANF effective December. December 23 the household applies for FS. There is NO TANF related disqualification for FS because Mom was not in receipt of FS at the time the TANF sanction was imposed. Mom is subject to the FS work requirements as her needs are NOT included in the TANF grant due to the sanction. Mom must register for work unless otherwise exempt.

3.	Ongoing FS only case. Mom is work registered for FS. January 3 Mom applies for TANF and is eligible. Mom is now exempt from the work requirements. In February Mom fails to comply with JOBS/Tribal NEW. A sanction is imposed for TANF effective March. Mom is disqualified for FS effective March, as she does not meet any other work requirement exemptions. The TANF case closes effective March 31. The JOBS/Tribal NEW related disqualification continues for FS until Mom either becomes exempt from a FS work requirement or reapplies for TANF and complies with JOBS/Tribal NEW.

The FS case closes effective May 31 for failing to provide information. Mom reapplies for FS only on June 20. The JOBS/Tribal NEW related disqualification continues for FS until Mom either becomes exempt from a FS work requirement or reapplies for TANF and complies with JOBS/Tribal NEW.

4.	Ongoing TANF/FS case. In December Mom fails to comply with JOBS/Tribal NEW and is sanctioned for TANF effective January. Mom is also disqualified for FS effective January, as she does not meet any of the exemptions from the work requirements. 

On December 27 Mom requests in writing her FS case close effective December 31. TANF remains open. On January 3 Mom reapplies for FS. There is NO TANF related disqualification for FS because Mom was not in receipt of FS at the time the TANF sanction was imposed.

5.	Ongoing TANF/FS case. In December Mom fails to comply with JOBS/Tribal NEW and is sanctioned for TANF effective January. Mom is also disqualified for FS effective January, as she does not meet any of the exemptions for the work requirements. On December 27 Mom requests in writing her TANF and FS case close effective December 31. On January 3 Mom reapplies for both FS and TANF. TANF imposes a TANF JOBS/Tribal NEW related disqualification. There is NO TANF related disqualification for FS because Mom was not in receipt of FS at the time the TANF sanction was imposed.

6.	Ongoing TANF/FS case.  In December Mom fails to comply with JOBS/Tribal NEW and is sanctioned for TANF effective January.  Mom is also disqualified for FS effective January, as she does not meet any of the exemptions from the work requirements.  

TANF case closes the end of February as the only child in the case turns age 18.  Mom remains disqualified for FS until she meets an exemption from the work requirements. 

7.	Ongoing TANF/FS case.  In December a 17 year old child who is not in school is sanctioned for TANF for failure to comply with JOBS and is disqualified for FS effective January.  Child’s needs are removed from the case for March as the child turned 18.  The 18 year old remains disqualified for FS until they meet an exemption from the work requirements.

20.	430-05-40-50-10 – Waivers.  Updated the counties exempt from the ABAWD provisions.  This supersedes IM 4981.

		Waivers 430-05-40-50-10
 
The Department of Human Services (DHS) may request the Secretary of Agriculture waive the ABAWD work requirement for any group of individuals that reside in an area in which the unemployment rate is over ten percent or does not have a sufficient number of jobs to provide employment for the individuals.
 
If a county desires a waiver of the ABAWD work requirement, documentation that there are not a sufficient number of jobs to provide employment for non-exempt individuals in the county should be forwarded to DHS for consideration and submission to the Secretary of Agriculture.
 
Waivers expired for Dunn, McKenzie, McLean, Mercer, Pembina, Sioux, and Williams counties on February 28, 1998 and were not renewed. The able-bodied provisions apply in the above seven counties effective March 1, 1998. 
 
Sioux County became exempt from the able-bodied provisions again on April 1, 2001.  Waivers for Sioux and Mountrail counties expired on April 30, 2003.  Effective May 1, 2003, Sioux and Mountrail counties continue as exempt under the 15% exemption criteria.  
 
Waivers of the able-bodied provisions remain in effect for Benson and Rolette.  

Benson, Eddy, Emmons, Kidder, McHenry, McLean, Pembina, Pierce, Rolette, Sheridan, Sioux and Towner Counties are currently exempt from the ABAWD provisions based on a waiver. Mountrail County is exempt from the ABAWD provisions based on the 15% exemption criteria.  

The able-bodied provisions do not apply to an individual living in waivered or 15% exemption criteria counties and benefits received do not count toward the three ABAWD months.
 
The TECS system automatically bypasses the ABRE screen for any county where a waiver of the ABAWD provisions is currently in place.  Individuals exempt under the 15% exemption criteria must be coded SP on the ABRE screen.

	Assets 430-05-45
	
	21.	430-05-45-10-20 – Excluded Vehicles.  Corrected example number 1 under item 8 that addresses inaccessible vehicles.  

8.	A vehicle is excluded as inaccessible if as a practical matter the household is unable to sell the vehicle because the sale is unlikely to produce an estimated return of not more than $1500. (IA)

Examples:

1.	A household is making payments on a sedan with a fair market value of $7,000. The household has no other vehicles. The excess fair market value ($2,350) would make the household ineligible. In this instance, the worker must determine if the vehicle is inaccessible. If the household were to net $1500 or less anything less than $1,500 on the vehicle if sold, the entire value of the vehicle is excluded as an inaccessible vehicle.

2.	A household has one vehicle that is not otherwise excludable with a fair market value of $6,200. The countable fair market value is $1,550. If the household has no other countable assets that combined with other countable assets exceeds the applicable asset limit for the household, the household would remain eligible for participation. In this example, the inaccessible vehicle provision was not needed to exclude the vehicle.

	Income 430-05-50

22.	430-05-50-10-05 – Gross Income Standards.  This section was updated with the new gross income limits.  This is a mass change in policy effective for all cases October 1, 2006.

		Gross Income Standards 430-05-50-10-05
 
The following gross income eligibility standards reflect 130% of the Federal income poverty levels.

HH Size	Maximum Income	HH Size	Maximum Income	
  1	$1062 1,037	9	$4009 3,863	
  2	1430 1,390	10	4378 4,217	
  3	1799 1,744	11	4747 4,571	
  4	2167 2,097	12	5116 4,925	
  5	2535 2,450	13	5485 5,279	
  6	2904 2,803	14	5854 5,633	
  7	3272 3,156	15	6223 5,987	
  8
 	3640 3,509
 	Each additional
member	+ 369 354

Gross monthly income is arrived at by adding the total countable gross monthly earned income of all household members to the total countable monthly unearned income of all household members.

23.	430-05-50-10-10 – Net Income Standards.  This section was updated with the new net income limits.  This is a mass change in policy effective for all cases October 1, 2006.

		Net Income Standards 430-05-50-10-10
 
The following net income eligibility standards reflect 100% of the Federal income poverty levels.

HH Size	Maximum Income	HH Size	Maximum Income	
1	$817 798	9	$3084 2,972	
2	1100 1,070	10	3368 3,244	
3	1384 1,341	11	3652 3,516	
4	1667 1,613	12	3936 3,788	
5	1950 1,885	13	4220 4,060	
6	2234 2,156	14	4504 4,332	
7	2517 2,428	15	4788 4,604	
8	2800 2,700	Each additional member	+ 284 272	
 
Net monthly income is arrived at by determining gross monthly income and then subtracting the following:

1.	20% of earned income.

2.	Standard deduction based on counting only eligible household members in determining household size as follows:

•	1 through 3 4 person household - $134.00

•	4 person household - $139.00
•	5 person household - $162.00 157.00

•	6+ person household - $186.00 179.00

3.	Allowable medical deductions in excess of $35 for elderly or disabled household members.

4.	Childcare and dependent care costs not to exceed $200 per month for each child under two, $175 per month for each other dependent.

5.	Child support paid.

6.	Shelter costs in excess of 50% of net adjusted income. Shelter costs deducted cannot exceed $417.00 400.00. 

Exception:

Households containing one or more eligible elderly or disabled members are not subject to the shelter deduction maximum of $417.00 400.00.  Households in which the only elderly or disabled members are excluded are subject to the shelter deduction maximum.

24.	430-05-50-15-10 – Income Anticipation.  Added policy and examples into this section to address income conversion.  This is a change in policy.  Changed all examples as income is paid weekly or biweekly so income must be converted.  

		Income Anticipation 430-05-50-15-10

Income already received or future income that can be reasonably anticipated will be taken into account at the time of certification. If the amount or receipt of income is uncertain, that portion of the household's income that is uncertain will not be counted. That portion which can be anticipated with reasonable certainty is counted as income. 

In cases where the receipt of income is reasonably certain but the monthly amount may fluctuate, the household may elect to income average, if paid once or twice a month. 

For all cases where income is received either weekly or biweekly income must be converted.  Income received weekly must be multiplied by 4.3 and income received biweekly must be multiplied by 2.15 when determining benefits. 

Exception:

Income will not be converted when it is known that a household will not receive the income either weekly or biweekly.

Examples:

1.	A household reports at interview on October 20 that a member started a new job and received the first paycheck on October 18 and is paid every Wednesday.   Income for the month of application is not converted (October) because the individual did not receive income each Wednesday in October.  Actual anticipated income is used for October.  Income is converted for the second beginning month of November.

2.	A household reports on October 10 that a household member will be losing a job on October 25 and will receive a final paycheck on November 3.  When calculating eligibility and level of benefits for November, the income for this household member is not converted, as the individual will not receive income each week in November.  The actual anticipated last paycheck on November 3rd is used.  
 
In cases where income is received sporadically, the worker must use base month income, unless the household reports a change.  

Examples:

On call income or child support received on an irregular basis.

Households must be informed to report all changes in the source of income or in the amount of income exceeding $50 unearned or $100 earned. 

Exception:

TANF grant changes.

Calculation:	Example: Documentation must support the amount of income used.	
March 20 $400.00
April 5       425.00
               $825.00
Divided by          2
	       $412.50
                   x2.15
               $886.88

	a) Current income
Household initially applies on April 5 and is interviewed on April 9. At interview household provides March 5 check - $250.00 gross income, March 20 check - $400.00 gross income, and April 5 check - $425.00 gross income. During the interview household indicates that March 5 check is short hours due to inclement weather. Household anticipates May income to be the same as March 20 and April 5 checks. These two checks - totaling $825.00 gross income are converted and $886.88 used to determine April and May benefits. 	
April 5     $350.00
                    2.15
               $752.50	b) Decreased income
Household reports a decrease in wages on April 5 and verifies the March 5 check - $500.00 gross income, March 20 check - $500.00 gross income, and April 5 check - $350.00 gross income. The household provides verification that the decrease in hours is ongoing due to the employer cutting back all employees’ hours.
Take April 5 check and convert it times two to anticipate May gross income of $752.50 700.00. The April 5 check verifies the decrease in hours unless the worker, using prudent judgment, believes it is necessary to obtain additional verification. 	
March 5   $300.00
March 20   450.00
              $750.00
Divided by        2
              $375.00
                 x2.15
              $806.25
	c) No change - Base Month
Household verifies actual March income and provides March 5 check - $300.00 gross income, March 20 check - $450.00 gross income, and April 5 check - $190.00. The household indicates March income is what they anticipate for the month of May. March income converted to totaling $806.25 750.00 gross income is used to determine May benefits.	
April 5      $400.00
April 20      600.00
                1000.00
Divided by           2
                $500.00
                   x2.15
              $1075.00	d) No change - Current Month

Household verifies actual March and April income and provides March 5 check - $300.00 gross income, March 20 check - $450.00 gross income, April 5 check - $400.00 gross income and April 20 check - $600.00 gross income.  The household indicates no change in income.  April income converted to totaling $1075.00 1000.00 gross income is used to determine May benefits, as it is the most current information.  	
April 5      $412.00
Divided by      5.15
              80 Hours

                   $5.40
                      x80
                $432.00

                $432.00
                    x2.15
                $928.80	e) Increased income
Household provides March 5 check - $412.00 gross income, March 20 check - $412.00 gross income, and April 5 check - $412.00 gross income. The household reports a pay raise from $5.15 per hour to $5.40 per hour that will be reflected on April 20 paycheck. Household indicates no change in 40 hours per week. Take April hours from April 5 check times the new pay rate times two and convert it to anticipate May gross income of $1857.60 864.00.	

March 5    $250.00
March 20    400.00
                $650.00

March 5   $250.00
March 20   400.00
April 5        425.00
             $1,075.00
Divided by          3
                $358.33
                        x2
                $716.99

April 5      $425.00
April 20      280.00
                $705.00	f) On-call income
Household initially applies on April 5 and is interviewed on April 9. At interview household reports on-call employment and provides March 5 check - $250.00 gross income, March 20 check - $400.00 gross income, and April 5 check - $425.00 gross income. During the interview household indicates that they do not have any idea of what, if any, earnings they will have on the April 20 check or for the month of May. The worker must question the applicant further regarding any hours worked since the last pay period, do they normally receive two checks each month, etc. 
Base month income of $650.00 must be used.  

Based on the information obtained in the interview and prudent worker judgment has the following options:
•	Take the two most current checks, March 20 check - $400.00 gross income and the April 5 check - $425.00 gross income and use them for April and May.
•	Total the three checks, March 5 - $250.00 gross income, March 20 check - $400.00 gross income and April 5 check - $425.00 gross income. Divide the total $1,075.00 by three to arrive at the average of $358.33. The average of $358.33 is multiplied by two for a total of $716.99. This amount is used for April and May. 
•	Information from the household indicates that the household anticipates the April 20 check will be approximately 40 hours at $7.00 per hour. The April 5 check - $425 gross income and the anticipated April 20 check of $280.00 gross income is used for April and May. 	
March 6   $175.00
March 13   115.00
March 20   210.00
March 27   166.00
                $666.00

               $666.00
Divided by          4
               $166.50

               $166.50
                     x4.3
               $715.95	g) Extra paycheck
Household initially applies on April 5 and is interviewed on April 9. The household is paid weekly and verifies March earnings of March 6 check - $175.00 gross income, March 13 check - $115.00 gross income, March 20 check - $210.00 gross income, March 27 check - $166.00 gross income, and April 3 check - $195.00 gross income. The household anticipates April earnings to be the same as March and anticipates no changes for May.  In reviewing the pay dates, the worker discovers the household will receive five checks in May. 
March verified gross income is $666.00 and is used when determining April benefits. 
When determining April benefits the worker must divide March gross income by 4 ($166.50).  The weekly amount of $166.50 is then multiplied by 4.3 to arrive at $715.95, which is used when determining April and May benefits.
When calculating May benefits, the worker must take March earnings of $666.00 divided by the four checks received in March ($166.50) times five checks the household will receive in May ($832.50). This amount is used when determining May benefits.	

25.	430-05-50-15-20 – Income Only in Month Received.  Added policy into this section to address income conversion.  This is a change in policy.

		Income Only in Month Received 430-05-50-15-20
Actual anticipated income during the certification period must be counted only during the month it is normally received, unless converting or income averaging is used. 

Households receiving income on a recurring basis will not have their monthly income varied merely because of changes in mailing cycles or pay dates or because weekends or holidays cause additional payments to be received in a month. 

Example:

An employer may issue checks early because the normal payday falls on a weekend or a holiday. Income will be counted in the month it would normally be received, rather than the month it is actually received. 

For households in receipt of a state or federal assistance payment such as TANF, General Assistance (GA), SSI, or Social Security payments, on a recurring basis, payment is considered as having been received once a month, even if mailing cycles may cause two payments to be mailed in one month and none in another month.

Wages held at the request of the employee must be considered income in the month in which they would otherwise have been paid by the employer. 

Wages held by the employer as a general practice, even if in violation of law, will not be counted as income to the household until actually received. 

For households initially approved for both food stamps benefits and TANF at the same time, the initial TANF grant must be considered when prospectively determining the initial month of food stamp eligibility and benefits if it can be reasonably anticipated during the initial month. 

The initial TANF grant must be anticipated for the initial month of food stamp eligibility if authorization of initial month's TANF benefit is made prior to the last five working days of the month.

Example:

A household applies for both TANF and food stamps on May 20, and is authorized for initial month's TANF benefit in the amount of $300 on May 30. The initial TANF grant of $300 cannot be anticipated for May because TANF authorization was not completed prior to the last five working days of May. Therefore, the May TANF grant is not used to determine initial May food stamps. 

If TANF authorization is completed on May 26, instead of May 30, the $300 initial TANF grant is used as anticipated income for May.

26.	430-05-50-20-05 – Earned Income.  Added a new number to address housing allowances paid to military personnel.  Also, changed item number 9.  This is a change in policy.  

9.	Bonuses received on a regular basis must be counted in the month received or when they can be reasonably anticipated. They are not prorated. annualized and counted as earned income.    

13.	Variable Housing Allowances (VHA), Basic Allowance for Quarters (BAQ) and Basic Allowance for Housing (BAH) paid to military personnel for housing costs.

27.	430-05-50-20-10 – Unearned Income.  Included Diversion Assistance as an assistance payment that is countable unearned income to item 1.  This supersedes IM 4989.  

Added clarification on the mailing time allowed for unemployment compensation to item 2.

Added clarification on verification of child support at initial application and added an exception regarding the child support alert to item 13.  Also, changed the headings in this section to address ongoing cases subject to change reporting requirements.     

	Unearned Income 430-05-50-20-10
		Unearned income includes, but is not limited to:
1.	Assistance payments such as TANF including Diversion Assistance.

Exception:
 
JOBS supportive services and TANF special allowances that represent a reimbursement are not counted as income.
 
When there is a reduction in a TANF benefit due to failure to perform a required action or for IPV and an overpayment is being recouped, the gross amount of the TANF grant must be counted as income if the individual was receiving food stamp benefits at the time the penalty was imposed.

2.	Payments such as:

a.	Annuities - including IRAs and Keogh Plans

b.	Pensions - retirement or disability

c.	Veteran's benefits 

d.	Workforce Safety & Insurance

e.	Unemployment compensation – The worker must allow three working days mailing time with day one being the check date in the online Job Service system in determining when unemployment benefits were received.

f.	Social Security and SSI benefits

g.	Strike benefits

h.	Deemed income from a spouse in a nursing home to the spouse in the community.

i.	Adoption subsidies

Exception:
 
Adoption subsidies that are reimbursements for child care while the responsible adult is working or seeking employment or for medical expenses are excluded.  

j.	General Assistance

If child support or taxes are withheld from any of the above benefits, the gross amount must be counted.

If an overpayment is withheld from any of the above benefits, the net amount must be counted.

If there is a reduction in one income source due to the receipt of another income source, the net amount must be counted.

13.	The full amount of child support, spousal support, or any other payments made directly to the household from non-household members.  

Child support payments are shown as income on UNIN in TECS next to the child the payment is intended for. Spousal support payments are shown as income on UNIN in TECS next to the person the payment is intended for.
The worker must verify the following:

a.	The amount of the legal obligation.

b.	The amount of child support received.

For ongoing cases with a North Dakota court order, verification must be obtained from FACSES.  For those households with an out-of-state court order, verification must be obtained using child support stubs or documented collateral contacts.  
Federal tax intercept payments are a non-recurring lump sum and are not counted as income.  Federal tax intercept payments do not appear on the FACSES ledger.  

State and interstate state tax intercept payments are counted as income as these payment are applied to current child support.  State tax intercept payments do appear on the FACSES VIEW ledger.  

If child support income is received monthly or twice a month, it may be averaged if the household agrees to income averaging.  This must be documented in the casefile.

If child support is received via check, direct deposit or electronic payment card (EPC), the worker must allow three working days for posting to the financial account in determining when the income was received.  Day one of the three day count is the check date on the View Eligibility Ledger Detail screen in FACSES or the date on the check or child support statement for payments not processed through FACSES.  To get to the View Eligibility Ledger Detail screen in FACSES, put an X in the select ('SEL') column by a transaction on the View Eligibility Worker screen and enter.  

If child support is received as an annual payment, it is prorated over the period of time it is intended to cover (in this instance 12 months).

Based on discussion with the household and the verification provided, the worker must document the amount of child support income counted or not counted and why.

For any household that receives child support income either weekly or biweekly, unless the household actually receives each payment on the same day of each week or every other week, the worker must not anticipate an extra payment.  

If a household received child support income either weekly or biweekly, the extra payment from the base month must be converted when processing the benefit month.  

Example:

Household receives child support income weekly. The household, based on verification from FACSES, has not received payments on the same day of each week.  In September when processing benefits for October, the worker checks FACSES and determines that the household could receive five payments in October.  August verified child support income is used when determining eligibility and level of benefits for October.  

In November when processing December benefits, the worker checks FACSES and determines that the household did receive five payments in October. However, the payments were no received on the same day of each week in October.  When determining eligibility and level of benefits for December, the worker must take the five payments received in October divided by five, times four to arrive at the amount of child support counted for December.  Five payments must not be anticipated for December, as the household will only receive four.  
 
Initial Application

At application, child support income to the date of interview must be verified via FACSES and documented.  That amount must be counted along with what the household anticipates to receive for the remainder of the application month.  

If a household comes in for the interview at the end of the initial month, all child support received in the initial month must be counted. The three working days allowed for posting to the financial account in determining when income is received does not apply to any payment(s) the household may have already received in the initial or second beginning month.

When processing the second beginning month, the amount of child support income used in the initial month must be anticipated unless the household anticipates a change.  If the household anticipates a change, the change must be verified and used.  
 
Recertifications

At recertification the worker must verify all income up to the date of interview.  If the household is interviewed in the last month of the certification, base month child support income must be used, unless the household reports an anticipated change.  If the household reports an anticipated change, verification of the change must be provided and is used.

If the household files a recertification in the last month of the certification period and is not seen until the month after the end of the current certification period, the worker must verify all income up to the date of interview. If all income for the first month of the new certification period is available prior to the interview date, that income must be used for the first month of the certification period.  

Example:

A household is certified through January 31 and files a recertification application on January 26.  The household is interviewed on February 10 and receives one child support payment at the beginning of each month.  The household received child support income on February 3.  The February 3 child support income must be used for the first month of the certification period (February).  

If all income for the first month of the new certification period is not available and the household cannot reasonably anticipate the amount of income for the first month of the new certification period, income from the last month of the certification period must be used.  If the household reports an anticipated change, verification of the change must be provided and is used.  

Example:

A household is certified through January 31 and files a recertification application on January 26.  The household is interviewed on February 10 and receives two child support payments each month. The household received child support income on February 4.  The household anticipates receiving another child support payment in February, however, the amount is uncertain.   Child support income from the month of January must be used for the first month of the certification period (February).

If a household files a recertification application in the month following the end of their certification period, child support income to the date of interview must be verified via FACSES and documented.  That amount must be counted along with what the household anticipates to receive for the remainder of the application month.  

If a household comes in for the interview at the end of the initial month, all child support received in the initial month must be counted.  The three working days allowed for posting to the financial account in determining when income is received does not apply to any payment(s) the household may have already received.
  
Ongoing Cases Subject to Change Reporting Requirements

For ongoing cases subject to change reporting requirements, the most current month’s (base month) income as reflected on FACSES must be used to calculate eligibility and level of benefits, unless the household reports a change.

Examples:

1.	Household does not report any changes.   In processing benefits for the month of December, the worker checks FACSES and $200.00 in child support payments was received in October.  The $200.00 received in October is counted when calculating eligibility and level of benefits for December.

2.	Household does not report any changes.   In processing benefits for the month of December, the worker checks FACSES and no child support payments were received in October.  Zero child support is counted when calculating eligibility and level of benefits for December.

For a household that reports that they do not expect to continue to receive child support income, the worker must follow up on this reported change by sending the F442 requesting verification. Benefits are authorized the same as the previous month if the household does not respond and provide verification. 

If the household reports a change in child support income, does not provide verification of the change, and the change is not reflected in FACSES, the worker must send F442 and follow up on the reported change.  Benefits are authorized the same as the previous month if the household does not respond and provide verification.

Exceptions:

1.	If the household reports an anticipated change in the amount of child support they expect to receive that will result in a decrease in benefits, the change must be acted on without verification of it. Verification must be obtained at the next recertification.

2.	If the worker received an alert that child support was received in the base month, this change must be acted on for the last month of the certification period as it is considered known information to the agency.

28.	430-05-50-25-10 – Excludable Vendor Payments.  Included Diversion Assistance as a TANF vendor payment excluded from income, including vendor payments for utility expenses.  This supersedes IM 4989.

		Excludable Vendor Payments 430-05-50-25-10

Excludable vendor payments are those payments in money made by either an individual who is not a household member or by a public or private organization directly to a third party for a household expense. These payments are not counted as income and the payment paid to the third party for a household expense is not an allowable deduction. 

Examples: 

1.	A rent payment, when it is paid directly to the landlord by a relative or friend who is not a household member, if the payment is not considered a loan.

2.	Rent or mortgage payments paid by Housing Assistance Program (HAP) or a local housing authority directly to the landlord or mortgagee.

3.	Payments by a government agency directly to a child care agency.

4.	TANF vendor payments, including Diversion Assistance vendor payments, are excludable if they are made for:

a.	Medical assistance

b.	Child care assistance

c.	Energy assistance

d.	Emergency assistance (including, but not limited to housing and transportation payments) for migrant or seasonal worker households while they are in the job stream.

e.	Housing assistance payments made through a State or local housing authority.

				f.	Utility Expenses

5.	GA vendor payments are excludable (except for housing) if they are made for:

a.	Energy assistance.

b.	Housing assistance from a State or local housing authority.

c.	Emergency assistance for migrant or seasonal worker households while they are in the job stream.
d.	Emergency or special assistance payments.

e.	Assistance provided under a program in a State in which no GA payments may be made directly to the household in the form of cash.

Exception:

Tribal GA payments are countable.

6.	Money received and disbursed by a third party for a household expense from a benefit or fund raiser.

29.	430-05-50-25-15 – Reimbursement for Past or Future Expenses. Included Diversion Assistance as a special allowance excluded as a reimbursement.  This supersedes IM 4989.

Reimbursements for Past or Future Expenses 430-05-50-25-15

Reimbursements for past or future expenses are excluded if they do not exceed actual expenses. The worker will not consider a reimbursement to exceed the expense unless the provider or the household indicates that it is excessive.

Reimbursements for normal household living expenses such as rent or mortgage, clothes or food, are a gain or benefit and are not excluded. To exclude these payments, they must be specifically for an identified expense, other than normal living expenses, and used for the purpose intended.

When a reimbursement, including a flat allowance covers multiple expenses, it is not required that each expense be separately identified, as long as none of the reimbursement covers normal living expenses. 

Examples:

a.	Reimbursements for job or training-related expenses such as travel, per diem, uniforms, and transportation to and from the job or training site. 

b.	JOBS supportive services and TANF special allowances, including Diversion Assistance special allowances, which represent a reimbursement. 

c.	Reimbursements for out-of-pocket expenses of volunteers incurred in the course of their work.

d.	Medical or dependent care reimbursements.

e.	All TANF child care payments.

f.	Child Care Assistance Program payments.

g.	Tribal Work Experience Payments (TWEP). The incentive portion of TWEP payments is disregarded. Any amount over the incentive is unearned income.

h.	Nutrition for North Dakota Day Care Children, a United States Department of Agriculture (USDA) approved program to pay eligible in-home day care providers for food purchased for day care children.

i.	All income, allowances, and bonuses received as a result of participation in the Burdick Job Corps Program.

Deductible Expenses 430-05-55

30.	430-05-55-05 – Deductions.  This section was updated with the new standard deduction amounts.  This is a mass change in policy effective for all cases October 1, 2006.  

		Standard Deduction

Standard deduction based on counting eligible household members in determining household size is as follows:

•	1 through 3 4 person household - $134.00

•	4 person household - $139.00

•	5 person household - $162.00 157.00

•	6+ person household - $186.00 179.00
 
31.	430-05-55-20-20 – Allowable Medical Expenses.  Added clarification on Medicare premiums for QMB/SLMB case.  Also removed expenses relating to the Medicare Prescription Drug Card and added Medicare Part D costs as allowable deductions.  

		9.	Medicare premiums, co-insurance, and deductibles. 

Exceptions:

A Medicare premium for an individual who is QMB/SLMB or Buy-In for Medicaid is not an allowable medical expense for food stamp purposes as the household will be reimbursed for these premiums once it is no longer deducted from the Social Security check.  The Medicare premium is no longer allowed when the QMB/SLMB application is approved.   

Qualifying Individual 1 (QI-1) are entitled to payment of their Medicare Part B premium. The Medicare part B premium is not an allowable medical deduction.
18.	Enrollment fees and monthly premiums paid by the household for the Medicare Prescription Drug Card and the Medicaid Workers with Disabilities coverage.  

19.	Premiums, co-payments, co-insurance and deductibles paid by the household for Medicare Part D.  

32.	430-05-55-25 – Dependent Care Costs.  Added an example of the treatment of child care assistance payments received in a case with all household members receiving food stamps.   

		Dependent Care Costs 430-05-55-25
 
Households must verify current month dependent care expenses at initial application and recertification. The maximum deduction for dependent care is $200 per month for each child under the age of two and $175 per month for all other dependents. If greater amounts are entered, TECS will automatically reduce them. TECS will also automatically change the deduction to $175 for the benefit month the child turns two years of age.  A deduction for care of a child or other dependent is allowed when necessary for a household member to:

•	Accept or continue employment.
•	Seek employment.
•	Attend training or pursue education preparatory to employment.
 
The portion of child care expenses that will be reimbursed are not allowable.
 
Dependent care expenses will be allowed only if the service is provided by someone outside the food stamp household.   
	
			Example:

Grandma, mom and child are all one food stamp household.  Grandma is providing child care for the child and receiving a Child Care Assistance payment of $300.  Mom is paying out of pocket expenses to grandma of $50.  The $300 Child Care Assistance payment is counted as earned self-employment income to grandma.  The $50 Mom is paying Grandma out of pocket is not counted as income to Grandma and is not allowed as an expense for Mom.   

When the child care expense is greater than the child care assistance payment, the out-of-pocket child care expense incurred by the household is an allowable child care deduction up to the food stamp maximums.   

Example:

The child care expense for one child is $250 and child care assistance reimburses the household $100 that is applied toward that child care bill, for food stamp purposes:

1.	Disregard as income the $100 child care assistance payment.

2.	Allow a child care deduction in the amount of $150 ($250 total child care expense incurred minus the $100 child care payment).
 
If a child care assistance case is open but no payments are being made, the child care assistance sliding fee schedule must be used to determine the out-of-pocket expense to the household.
 
Exception:

If a TANF household chooses the option of receiving a work related child care disregard from the TANF grant, food stamps will count the amount of the TANF grant as unearned income and allow the household a deduction for child care expenses up to the maximum.

When a child care assistance application is pending, allow the entire child care expense as a deduction up to the maximum. Once the child care assistance application has been approved, out-of-pocket costs are allowed applying 10-10-10.
 
At application, anticipated expenses for the first two months are allowed as a deduction based on verification from the provider, information from the household, and the worker’s prudent judgment. 
 
If at the time the food stamp application is being processed the household has a pending child care assistance application, allow an anticipated child care deduction without regard to the pending child care assistance application. 
 
At recertification if the household anticipates no changes in child care expenses, use base month or current month verified expenses. If not anticipating a change and household fails to provide verification of base month or current month, no deduction is allowed.
 
For ongoing cases, if a change is anticipated and it will result in an increase in food stamp benefits, it must be verified before it can be allowed. If an anticipated change results in a decrease in benefits the change must be allowed and verified at the next recertification.

33.	430-05-55-40 – Shelter Costs.  Added an example of a non-household member making a payment that is not a loan, directly to the provider for clarification.  

Also, updated the maximum shelter deduction and the mandatory utility standards to the new amounts of HLSU $602.00, LU SA $200.00, MU $105.00.  The Telephone Standard (TL) remains unchanged at $38.00.  This is a mass change in policy effective for all cases October 1, 2006.    

Shelter Costs 430-05-55-40
 
Monthly shelter costs in excess of 50% of net adjusted income after all other deductions are allowed, not to exceed $417.00 400.

Exception:

Households containing one or more eligible elderly or disabled members are not subject to the shelter deduction maximum of $417.00400. Households in which the only elderly or disabled members are excluded are subject to the shelter deduction maximum.
 
Only the most current bills can be used for verification of shelter costs. Past due amounts are not an allowable expense.  Only the billed amount can be allowed as a deduction.  
 
Example:

Household's monthly mortgage payment is $500 per month.  The household is paying $600 a month to pay the mortgage off sooner.  Only the $500 billed amount can be allowed as a shelter cost deduction.
 
Expenses need not be in the household’s name, but must be incurred by the household and the household must be expected to pay the expense. 
 
If a non-household member pays the household’s shelter costs directly to the provider on behalf of the household, the worker must determine if the payment is a loan.
 
If the payment is a loan, it is excluded from income and the expense is allowed as a shelter deduction.
 
If the payment is not a loan, it is excluded from income and the shelter deduction is not allowed.
	
Example:

Tom owns his own home with a mortgage payment of $700.  Bill is Tom’s roommate and is claiming separate household status from Tom.  Bill pays $300 for his share of the housing costs directly to the mortgage company.  The $300 is not counted as income to Tom.  Tom’s allowable shelter expense for the mortgage is $400.
 
When separate households share shelter expenses and one receives a payment for shelter expenses from the other, the payment is not counted as income. Each household is entitled to its actual share of the shelter costs as a deductible expense.

Example:

Tom and Bill are roommates claiming separate household status. Bill pays Tom $200 a month for his share of the rent and Tom pays the landlord the $400 monthly rent. The $200 paid to Tom is not counted as income and each is allowed their share of the rent ($200) as a deductible expense.
 
Shelter costs covered by an excludable reimbursement or vendor payment are not allowable deductions. 
 
Exception:

LIHEAP payments. 
 
Example:
	
The portion of rent paid by HUD is not allowed. 
	
Benefit Determination 430-05-60

34.	430-05-60-05 – Calculating Income and Benefit Level.  Updated this section with the new standard deduction and the thrifty food plan amounts.  This is a mass change in policy effective for all cases October 1, 2006.

		Calculating Income and Benefit Level 430-05-60-05
 		Calculating Income

To determine the household’s total countable income add the monthly countable gross earned income (including self-employment income) of all household members, minus the 20% deduction, to the monthly unearned income of all household members. 
 
Calculating Net Adjusted Income

To determine a household’s net adjusted income subtract the allowable deductions from the total countable income. The following deductions are allowed:

•	Farm loss offset

•	Standard deduction based on counting only eligible household members in determining household size.

o	1 through 3 4 person household - $134.00

o	4 person household – $139.00

o	5 person household - $162.00 157.00

o	6+ person household - $186.00 179.00

•	Medical costs over $35 for elderly/disabled household members.

•	Dependent care costs (not to exceed the authorized limit)

•	Child support paid to a non-household member 

•	Excess shelter costs

Calculating Benefit Level

To determine the household’s benefit level, subtract 30% of the net adjusted income from the Thrifty Food Plan for the appropriate household size. 
 
THRIFTY FOOD PLAN

H.H. Size	 
Amount	 
H.H. Size	 
Amount	
1	$155 152	5	$615 601	
2	 284 278	6	  738 722	
3	 408 399	7	  816 798	
4	 518 506	8	  932 912	

 	Each Additional Member	+117 114	

35.	430-05-60-10 – Initial Month Proration.  Updated the examples in this section to the new standard deductions and thrifty food plan.

Reporting and Processing Changes 430-05-65

36.	430-05-65 – Reporting and Processing Changes.  Changed the title of this chapter book to Change Reporting and Processing Changes.

37.	430-05-65-05 – Reporting Requirements.  Changes the reporting requirement timeframe.  This is a change in policy for all cases effective October 1, 2006.

Also, included clarification on when a first pay check can be used as verification of new source income.
	
Reporting Requirements 430-05-65-05
 
Households must are required to report mandatory changes by the 10th day of the month following the month of the change.  within 10-days of the date the change becomes known to the household.
 
Exception:
Households are required to report a new source of income within 10 days of the household receiving their first check. This applies to both earned and unearned income.
 
Mandatory Reportable Changes

Certified households are responsible to report the following changes:

1.	Source of income.

If the household reports and provides their first paycheck and the check reflects the hourly rate of pay, pay dates, date of employment and hours worked, no additional verification is needed.  If a paycheck does not reflect the hours for a full pay period, the worker can use the client’s statement, if it is not questionable.  

If the paycheck does not contain the required information, the worker must obtain further information before acting on the change.  

2.	Amount of gross monthly unearned income exceeding $50.

Exception:

TANF grant changes. It is the worker’s responsibility to be aware of and act on TANF grant changes.

3.	Amount of gross monthly earned income of more than $100.

4.	Household composition - The addition of a new member or if a member leaves.  

5.	Residence and the resulting change in shelter costs.

6.	Vehicle ownership.

7.	Countable assets (cash on hand, stocks, bank accounts, etc) reaching the appropriate asset limit.

8.	Legal obligation to pay child support and the legally obligated amount.

9.	ABAWDS – any change in work hours that bring an individual below 20 hours per week averaged monthly.

38.	430-05-65-15-05 – Changes Resulting in an Increase in Benefits. Changed the exception on when a case is not closed for failure to provide verification.  This is a change in policy.

Changes Resulting in an Increase in Benefits 430-05-65-15-05
 
Any change that results in an increase in benefits must be verified. When verification is not provided, F442 – Request for Additional Information must be sent allowing the household 10 days from the mail date of the notice to verify the reported change.

1.	If the household provides verification within the 10 day period, the worker must act on the reported change within 10 days and send the household the appropriate notice.

2.	If the household does not provide the verification within the 10 day period, the worker will receive an alert to send the F401 – Failure to Provide Information.  If the 10th day falls on a weekend or holiday, the F401 must not be sent until the next working day.  

a.	If it is prior to advance notice deadline, the F401 must be sent and the case will close at the end of the month.

b.	If it is after advance notice deadline, the F401 cannot be sent until the first working day of the following month. Benefits for the last month of the certification period are authorized the same as the previous month.

Exceptions:
1.	If the last month of the certification period includes an extra check or if the second to the last month included an extra check, this change must be acted on for the last month of the certification period as it is considered known information to the agency.

2.	If the household has reported a change in expenses that results in an increase in benefits and fails to provide verification of the expense, the expense is not allowed and the case is not closed.

If the household has not moved and reports a change in expenses that results in an increase in benefits and fails to provide verification of the expense, the expense is not allowed and the case is not closed.  The previously reported and verified expenses continue to be allowed at the previously verified amount.  

If the expense is verified at a later date, the expense is allowed for the next benefit month.  

3.	If the household has moved and provides verification of residence but fails to provide verification of expenses, no shelter costs are allowed and the case is not closed.  

If the expense is verified at a later date, the expense is allowed for the next benefit month.  

4.	If the worker received an alert that child support was received in the base month, this change must be acted on for the last month of the certification period as it is considered known information to the agency.  

3.	If the household provides the verification during the advance notice period, the worker has 10 days from the date the verification was provided to act and the case must not be closed.

Examples:

1.	On July 5, a household reports a decrease in the number of hours of employment per week from 25 hours to 20. The worker must send F442 giving the household until July 15 to provide verification.

If the household provides the verification by July 15, the worker must act on the reported change to affect August benefits.

If the household does not provide the verification by July 15, the worker will receive an alert to send the F401. Since it is prior to advance notice deadline, the worker must send the F401 and the case will close at the end of the July. 

If the household provides the verification anytime after July 15 or before August 1, the worker has 10 days to act on the change and the case cannot close the end of July. 

2.	On July 25, a household reports a decrease in the number of hours of employment per week from 35 hours to 20 hours. The worker must send F442 giving the household until August 4 to provide verification. 

If the household provides the verification by August 4, the worker must act on the reported change to affect September benefits. Additionally, a supplement must be issued for August ($50 decrease in gross monthly income).

If the household does not provide the verification by August 4, the worker will receive an alert to send the F401 for failure to provide information. Since it is prior to advance notice deadline the worker must send the F401 and the case will close August 31. 

If the household provides the verification anytime after August 4 (before September 1) the worker has 10 days to act on the change and the case cannot be closed August 31.

3.	Household reports an increase in rent and they have not moved. The worker sends F442 allowing the household 10 days from the mail date to provide verification of the new rent amount. The household fails to provide verification of the new rent amount. No rent expense is allowed and the case is not closed.  The case is not closed.  The previously reported and verified expenses continue to be allowed at the previously verified amount.  

4.	Household reports an increase in child care costs. The worker sends F442 allowing the household 10 days from the mail date to provide verification of the new child care expense. The household fails to provide verification of the new amount. No child care costs are allowed and the case is not closed. The previously reported and verified expenses continue to be allowed at the previously verified amount. 

5.	Household reports a change of address. The worker sends F442 allowing the household 10 days from the mail date to provide verification of residence and the new shelter expenses.   

a.	If the household fails to respond to F442, the worker will receive an alert to send the F401. The worker must send the F401 and the case will close for failure to provide information.

b.	If the household responds and provides verification of residence only, no shelter costs are allowed and the case is not closed.

c.	If the household responds and provides verification of residence and shelter costs, the shelter costs are allowed as an expense and the case is not closed.

39.	430-05-65-15-15 – Unclear or Insufficient Information to Make a Benefit Determination.  Change the policy regarding expenses that are not provided.  This is a change in policy.    

Unclear or Insufficient Information to Make a Benefit Determination 430-05-65-15-15
 
Whenever a worker receives unclear or insufficient information from a household or the worker becomes aware of a change, the worker must pursue clarification and verification of household circumstances using the following procedures: 

1.	The worker must send F442 to the household clearly advising the household of the verification it must provide or the actions it must take to clarify its circumstances. The household must be allowed 10 days from the mailing date of F442 to respond and to clarify its circumstances either by telephone or by correspondence.

2.	If the household responds and provides sufficient information/verification, the worker has 10 days to act on the change and send the household the appropriate notice.

3.	If the household fails to provide sufficient information/verification within the 10-day period, the worker will receive an alert to send the F401.  If the 10th day falls on a weekend or holiday, the F401 cannot be sent until the next working day.

a.	If the household fails to provide sufficient information/verification regarding expense(s), the F401 is not sent.  and benefits are authorized without the unverified expense(s):

1.	If the household has not moved, the previously reported and verified expenses continue to be allowed at the previously verified amount.  If the expense is verified at a later date, the expense is allowed for the next benefit month.

2.	If the household has moved and provides verification of residence but fails to provide verification of expenses, no shelter costs are allowed and the case is not closed.  

If the expense is verified at a later date, the expense is allowed for the next benefit month. 

b.	If the household fails to provide sufficient information/verification other than expenses and it is prior to advance notice deadline the F401 must be sent and the case will close at the end of the month.

c.	If the household fails to provide sufficient information/verification other than expenses and it is after advance notice deadline, the F401 cannot be sent until the first working day of the following month. Benefits for the last month of the certification period are authorized the same as the previous month.

Exceptions:

1.	If the last month of the certification period includes an extra check or if the second to the last month included an extra check, this change must be acted on for the last month of the certification period as it is considered known information to the agency.

2.	If the worker received an alert that child support was received in the base month, this change must be acted on for the last month of the certification period as it is considered known information to the agency.  

40.	430-05-65-15-20 – Action on Multiple Reported Changes.  Changed example number 2 as the dates did not allow for a worker’s 10 days.  

		Action on Multiple Reported Changes 430-05-65-15-20
 
If a household reports multiple changes that result in an increase in benefits or the benefit determination is unclear, the changes must be verified.  If the household does not provide verification, the F442 – Request for Additional Information must be sent allowing the household 10 days from the mail date of the notice to verify the reported changes. 

1.	If the household provides verification within the 10 day period, the worker must act on the reported change within 10 days and send the household the appropriate notice.  If the changes result in a decrease in benefits, advance notice is required unless the change is signed by the household, then adequate notice is required.  

2.	If the household does not provide the verification within the 10 day period, the worker will receive an alert to send the F401 – Failure to Provide Information.  If the 10th day falls on a weekend or holiday, the F401 must not be sent until the next working day.  

a.	If it is prior to advance notice deadline, the F401 must be sent and the case will close at the end of the month.

b.	If it is after advance notice deadline, the F401 cannot be sent until the first working day of the following month. Benefits for the last month of the certification period are authorized the same as the previous month.

3.	If the household provides verification of one or more of the reported changes but not all of the changes and it is:

a.	prior to advance notice deadline, the F401 must be sent and the case will close at the end of the month.

b.	after advance notice deadline, the F401 cannot be sent until the first working day of the following month. The worker must act on all verified information within 10 days and send the appropriate notice.  If the changes result in a decrease in benefits, advance notice is required unless the change is signed by the household, then adequate notice is required.  The information that was reported but not verified is not acted on. 

Examples:

1.	On March 18 an individual reports a change in employment.  The worker sends the F442 on March 18 allowing the household 10 days to provide verification of the terminated source and new source income.  On March 25 the household provides verification of the terminated source income.  When working benefits for the month of April, the terminated source income is removed. The new source income cannot be anticipated as verification was not provided.  The worker must send the F401 on April 1 to close the case the end of April.

2.	On March 18 an individual reports a change in employment.  The worker sends the F442 on March 18 allowing the household 10 days to provide verification of the terminated source and new source income.  On March 205 the household provides signed verification of new source income.  When working benefits for the month of April, the new source income must be anticipated.  The terminated source income used to calculate March benefits must also be anticipated, as verification was not provided. (If March includes an extra check, the extra check must not be anticipated for April.)  The worker must send the F401 on April 1 to close the case the end of April.

41.	430-05-65-60 – Failure to Report.  Eliminated this section, as the policy is addressed in the claims chapter.  

		Failure to Report 430-05-65-60
 
Claims can be established and IPV pursued only for mandatory reportable changes.
 
Example:

A household is not required to report a change in rent during the certification period if the household has not moved. A claim is not established if a change in rent is not reported. 
 
If the worker discovers that a household failed to report a change that would have caused a reduction in food stamp benefits, a claim is prepared against the household based on 10-10-10. A 10 day advance notice must be issued if the household's benefits are reduced during the certification period. If the worker is unable to act on the change, F442 must be sent.
If the household does not respond to the F442 within 10 days from the mail date, the worker will receive an alert to send the F401.
 
If it is prior to advance notice deadline the worker must send the F401 and the case will close at the end of the month. 
 
If it is after advance notice deadline the worker cannot send the F401 until the first of the month. Benefits for the last month of the certification period are authorized the same as the previous month. 
 
Exceptions:

1.	If the last month of the certification period includes an extra check or if the second to the last month included an extra check, this change must be acted on for the last month of the certification period as it is considered known information to the agency.

2.	If the worker received an alert that child support was received in the base month, this change must be acted on for the last month of the certification period as it is considered known information to the agency. 

If the household provides the requested information anytime during the advance notice period, the information must be acted on within 10 days and the case cannot be closed.
 
A disqualification is implemented only after IPV procedures and finding.

Simplified Reporting and Processing Changes 430-05-67

42.	430-05-67 – Simplified Reporting and Processing Changes.  This is a new book with policy on simplified reporting.  This is a change in policy.
	
Simplified Reporting and Processing Changes 430-05-67

Simplified Reporting Requirements 430-05-67-05

All food stamp households are subject to simplified reporting requirements and certified for 12 months except for:

1.	Households in which all members are elderly or disabled and there is no countable earned income.
2.	A household that includes an individual in receipt of TANF, including Diversion Assistance.
3.	Migrant/seasonal farmworkers.

All simplified reporting households will be authorized through for six months. A six month report is due by the 10th day of month six for benefit determination for the next six months. 

		Exception:

Households that contain an ABAWD that is receiving NE or EE months cannot be authorized through.  

Mandatory Reportable Changes

Certified household must report the following mandatory changes by the 10th day of the month following the month of the change.

1.	Households must report a change in actual income from the base month when it exceeds the gross income limit for the household size (130% of poverty level) by the 10th day of the following month.  Actual income is countable earned and unearned income that has not been converted or averaged. 

Exceptions:

a.	If at application or recertification a household is categorically eligible and income exceeds the gross income limit for the household size (130% of poverty level) and the household is eligible for a benefit, the household is not required to report any change in income.  

b.	If an ongoing case that is categorically eligible reports a change in income that exceeds the gross income limit for the household size (130% of poverty level), and the household is eligible for a benefit, the household is not required to report any further changes in income.

Examples:

1.	A household reports actual income that exceeds the gross income limit for its household size and based on this income is not eligible for a benefit.  The household anticipates that actual income will continue to exceed the gross income limit.  The worker must send an advance notice to close the case.

2.	A household of four applies and is approved as a simplified reporting household.  The household is informed of the gross income limit for its household size of four and that they must report if their income goes over this limit.

In month three the household reports a new member with income moved in and income now exceeds the gross income limit for a household size of four.  The household remains eligible after adding the new member.  The household must now report if their gross month income exceeds the gross income limit for a household size of five.   

2.	When household member is identified as an ABAWD and the household members eligibility is based on working an average of 20 hours weekly, the household must report if the ABAWD’s hours decrease below an average of 20 hours weekly.

Example:

A household reports an eligible ABAWD reduced their hours to less then 20 hours weekly.  The household anticipates the hours will continue to be less then 20 hours weekly.  The worker must send an advance notice to disqualify the individual from the case unless the individual is eligible for Non-Exempt (NE) or Exemption Extension (EE) months.
	
Six Month Report 430-05-67-10

A household must complete a six month report that contains only the following information:

1.	Changes in the sources of income.
2.	Changes in the amount of gross monthly unearned income exceeding $50.
3.	Changes in the amount of gross monthly earned income of more than $100.
4.	Changes in household composition - - The addition of a new member or if a member leaves.  
5.	A change in residence and the resulting change in shelter costs.
6.	A change in vehicle ownership.
7.	A change in countable assets (cash on hand, stocks, bank accounts, etc.) reaching the appropriate asset limit.
8.	Changes in the legal obligation to pay child support and the legally obligated amount.
9.	Any changes in work hours that bring an ABAWD below 20 hours per week averaged monthly. 

The six month report is considered complete when it is filled out in its entirety, signed by a responsible member of the household, and verification of any changes listed on the report are provided. The information and verifications provided may result in an increase or decreased in benefits. 

Any change reported by the household that results in a decrease in benefits must be acted on without verification. Verification must be provided no later than the next recertification.  Any changes that result in an increase in benefits must be verified before acting on the change.

A six month report will be automatically mailed on the 4th to the last working day of month five.  The household has until the 10th day of month six to complete and return the six month report.  Upon receipt of the six month report, it must be registered on the SIMR (Six Month Report Registration) screen in TECS.

An interview is not conducted at six month report.  

Non-Receipt of Six Month Report 430-05-67-10-05

If a household does not return the six month report by the 10th day of month six, TECS will automatically send Notice X003 - Non Receipt of Six Month Report.  The worker will receive an alert indicating that X003 was sent.  The case will close at the end of month. If the household is interested in continued benefits, it must reapply using an application for assistance.  

If the 10th day of the month falls on a weekend or holiday, TECS generates the X003 and a closing reason of SM on FSED on the working day immediately preceding the weekend or holiday.  The X003 is mailed on the first working day immediately following the weekend or holiday.   

Workers must ensure that six month reports are registered upon receipt to prevent the X003 from being sent to a household that has submitted a six month report.
	
Example:

A household is certified from October through September. TECS automatically mails a six month report on the 23rd day of month five (February).  The household fails to return a completed six month report by the 10th day of month six (March).  TECS automatically sends Notice X003 - Non Receipt of Six Month Report and the case closes on March 31.

Incomplete Six Month Report by 10th Day of Month Six 430-05-67-10-10

If a household returns an incomplete six month report by the 10th day of month six, the worker must register the six month report as incomplete and return the six month report to the household for completion.  If the six month report has been completed and signed, and verifications are missing, the six month report should not be returned to the household.  However, if questions have not been answered, sections are incomplete or the six month report has not been signed, it must be returned to the household.  The worker must then send the household Notice F417 -Incomplete Six Month Report allowing the household 10 days from the mailing date of the notice to complete and return the six month report along with all necessary verifications.  

1.	If the household provides the requested information/verification within the 10-day timeframe, the worker must register the report as complete, determine eligibility and level of benefits, authorize the case through for the remaining six months of the household’s certification period and send the appropriate notice.  
	If changes result in a decrease in benefits, adequate notice is required.

Example:

A household is certified from October through September. TECS automatically mails a six month report on the 23rd day of month five (February).  The household returns an incomplete six month report by the 10th day of month six (March).  The worker registers the six month report on the SIMR screen in TECS as incomplete, returns the six month report to the household for completion and sends Notice F417 - Incomplete Six Month Report to the household.  The household provides the requested information/verification within 10 days from the mailing date of Notice F417.  The worker must register the report as complete, and determine eligibility and level of benefits using the information and verifications supplied on the report for the remaining six months of the certification period.
  
2.	If a household fails to provide the requested information/verification within 10-days of the mailing date of Notice F417, the case will close at the end of month six. The household must reapply if it is interested in continued benefits.

			Exceptions:

1.	If the household reports a increase in expenses that results in an increase in benefits and fails to provide verification of the expenses, the reported change in the expenses is not allowed and the case is not closed.  The previously reported and verified expenses continue to be allowed at the previously verified amount.
If the expenses are verified at a later date, the expenses are allowed for the next benefit month. 
 
2.	If the household has moved and provides verification of residence but fails to provide verification of expenses, no shelter expenses are allowed and the case is not closed for failure to provide verification. 

If the expenses are verified at a later date, the expenses are allowed for the next benefit month. 

If verifications are provided after the case is authorized for month seven, process changes as an ongoing case.

If the household fails to provide verification of residence, the case must be closed.

3.	If the household provides the information/verification prior to the case closing at the end of month six, the worker must register the report as complete by the last working day of month six so the case does not close.  The worker has 10 days to determine eligibility and level of benefits, authorize the case through for the remaining six months of the household’s certification period and send the appropriate notice.  Adequate notice is required.

				Example:

Household provides an incomplete six month report on March 8th.  The six month report is registered on SIMR as incomplete.  The F417 is sent to the household and the six month report is returned for completion on March 12th.  On March 29th the household returns the completed six month report with the needed verifications.  The worker has 10 days to determine eligibility and level of benefits for April using the six month report and verifications.  

If the changes result in an increase in benefits, the changes must be made by April 7th.   Adequate and advance notice are not required.  

If the changes result in a decrease in benefits, the changes cannot be made for April benefits as adequate notice is required.  The April benefit stays the same as the March benefit and the changes are acted on for May benefits.  If these  changes are mandatory reportable changes, month seven may be an overpayment.

Incomplete Six Month Report After 10th Day of Month Six 430-05-67-10-15

If a household returns an incomplete six month report after the 10th day of month six, the worker must register the report as incomplete and return the six month report to the household for completion.  If the six month report has been completed and signed, and verifications are missing, the six month report should not be returned to the household.  However, if questions have not been answered, sections are incomplete or the six month report has not been signed, it must be returned to the household.  The worker must send Notice F418 - Incomplete Six Month Report After Non-Filing.  This notice advises the household that the case will still close at the end of the month unless they provide the information/verification needed within 10 days from the mailing date of the notice.

Exceptions:

1.	If the household reports a increase in expenses that results in an increase in benefits and fails to provide verification of the expenses, the reported change in the expenses is not allowed and the case is not closed.  The previously reported and verified expenses continue to be allowed at the previously verified amount.

If the expenses are verified at a later date, the expenses are allowed for the next benefit month. 
 
2.	If the household has moved and provides verification of residence but fails to provide verification of expenses, no shelter expenses are allowed and the case is not closed for failure to provide verification. 

If the expenses are verified at a later date, the expenses are allowed for the next benefit month.

If the household provides the requested information/verification anytime after Notice F418 has been sent and through the last working day of month six, the worker must register the report as complete, determine eligibility and level of benefits, authorize the case through for the remaining six months of the household’s certification period and send the household the appropriate notice. Since the X003 notice was sent to the household, adequate and advance notice are not required as the household is receiving a benefit rather than case closure. 

If the household’s 10 days to provide verification falls into month seven the case will close at the end of month six.  If the household fails to provide the requested information/verification, the case remains closed.

Exception:

If expenses are the only verifications needed, the case must be worked for month seven without the change in expenses.  If the expenses are provided within the 10-days, month seven must be reworked using the expenses and an underpayment issued.

If the household provides the information/verification within the 10 day timeframe, the worker must contact the State Office or a Regional Representative to have the case reverted to open.  The worker must determine eligibility and level of benefits, authorize the case through for the remaining six months of the household’s certification period and send the household the appropriate notice. Adequate and advance notice is not required as the household is receiving a benefit rather than case closure.

Completed Six Month Report by 10th Day of Month Six 430-05-67-10-20

If a household returns a completed six month report by the 10th day of month six, the worker must register the six month report as complete, determine eligibility and level of benefits, authorize the case through for the remaining six months of the household’s certification period and send the household the appropriate notice. If changes result in a decrease in benefits, adequate notice is required.  

Example:

A household is certified from October through September. TECS automatically mails a six month report on the 23rd day of month five (February).  The household returns a completed six month report by the 10th day of month of six (March).  The worker registers the six month report on the SIMR screen in TECS and using the information and verifications supplied on the six month report processes the case for the remaining six months of the certification period. 
 
Completed Six Month Report After 10th Day of Month Six 430-05-67-10-25

If the six month report is received after the 10th day of month six or at anytime through the last working day of month six and the report is complete, the worker must register the six month report as complete by the last working day of month six so the case does not close. The worker has 10 days to determine eligibility and level of benefits, authorize the case through for the remaining six months of the household’s certification period and send the household the appropriate notice.    Adequate and advance notice is not required as the household is receiving a benefit rather than case closure.

		Processing a Complete Six Month Report 430-05-67-10-30

The six-month report must be processed using the information and verifications provided by the household.  No interview is conducted at six-month report.

Using changes reported and verified by the household, the worker must determine eligibility and level of benefits for the remaining six months of the household’s certification period.

If the changes result in ineligibility, the appropriate closing notice must be sent to the household.  Adequate notice is required.  If the X003 was sent, the household later completes the report and the household is not eligible, adequate or advance notice is not required.  The appropriate closing notice must be sent.

If the changes result in an increase or decrease in benefits, the appropriate notice is sent to the household and the case is authorized through for the remaining six months of the household’s certification period.

If the household is over the gross income limit for its household size, but eligible for a benefit, the appropriate notice is sent to the household.   The case is authorized through for the remaining six months of the household’s certification period.  The household has NO reporting requirement for the remaining six months other than if the household contains an ABAWD whose hours fall below 20 hours weekly averaged monthly.

Examples:

1.	A household files a completed six-month report by the 10th day of month six, on April 10th.  Countable base month income exceeded the gross income limit for the household size in month five (March), and the household expects the income to continue and the household is not eligible for a benefit.  Based on discussion with the household month five was the first month gross income exceeded the gross income limit for the household size.  The worker must send the household the appropriate closing notice.  Adequate notice is required.

2.	A household files a completed six-month report in month six, on May 15.  Countable base month income (April) results in an increase in benefits. The worker must send the appropriate notice to the household.  The case is authorized through for the remaining six months of the household’s certification period.

3.	A household files a completed six-month report in month six, on June 12.  Countable base month income (May) is over the gross income limit for the household size, but the household is eligible for a benefit.  Adequate or advance notice is not required as the X003 was sent to the household on June 10th and the household is receiving a benefit rather then case closure.  The worker must send the appropriate notice to the household.  The case is authorized through for the remaining six months of the household’s certification period.

4.	A household files a completed six-month report in month six, on May 17.  The household reports the loss of a job on the six-month report and attached verification from the employer regarding the last day of work and final paycheck.  In addition, the household reported new employment including the rate of pay, number of hours, date of first paycheck and how often paid.  The changes result in an increase in benefits and the appropriate notice must be sent to the household.  The case is authorized through for the remaining six months of the household’s certification period.

If the changes result in a decrease in benefits they must be acted on and the appropriate notice sent to the household.  Adequate or advance notice is not required as the X003 was sent to the household on May 10th and the household is receiving a benefit rather then case closure.  The case is authorized through for the remaining six months of the household’s certification period.  Verification of the changes must be obtained at recertification.

5.	A household files a completed six-month report in month six, on April 28.  The worker has 10 days to process the six-month report and send the appropriate notice to the household.  Adequate and advance notice is not required as the X003 was sent to the household on April 10th and the household is receiving a benefit rather then case closure. if the household is eligible for a benefit in month seven.

	If the household is not eligible for a benefit in month seven, adequate or advance notice is not required as the X003 was sent to the household on April 10th.  The appropriate closing notice must be sent to the household. 

If the household is not eligible for a benefit in month seven, adequate notice is required.   If there is insufficient time for an adequate notice, benefits for month seven must be authorized at the same level as month six.  Adequate notice must then be sent in month seven to close the case at the end of month seven.

6.	A household files a completed six-month report in month six, on May 20.  The household reports that an individual in the household was fired from employment in month three.  The individual is a mandatory work registrant and the loss of employment is without good cause.  This change along with all changes reported and verified on the six-month report must be acted on.   A job disqualification penalty must be imposed for month seven if the individual is not otherwise exempt from the work requirements for month seven.  The worker sends the appropriate notice to the household.  The case is authorized through for the remaining six months of the household’s certification period.  If the disqualification results in case closure, adequate or advance notice is not required as the X003 closing notice was sent to the household.  The appropriate closing notice must be sent.
		 
7.	A household files a completed six-month report on May 2.  The six-month report was due by April 10.  Notice X003 was automatically sent to the household on April 10 for non-receipt of the six-month report and the case closed April 30.  The case remains closed.  If the household is interested in continued benefits, a new application is required.

Action on Reported Changes 430-05-67-15

If a household reports a change via voice-mail or e-mail on a weekend, holiday or after hours, the change is considered reported on the next working day.

Changes must be acted on using the following procedures.

Changes Resulting in an Increase in Benefits 430-05-67-15-05

Any change that results in an increase in benefits must be verified. When verification is not provided, F419 – “Request for Verification” must be sent allowing the household 10 days from the mail date of the notice to verify the reported change.

1.	If the household provides verification within the 10-day period, the worker must act on the reported change within 10 days and send the household the appropriate notice.

2.	If the household fails to provide verification within the 10-day period, the previously verified amount of the reported change is used and the benefit stays the same. 

If there is no previously verified amount (i.e. household reports now paying rent and previously had not), no change is made and the benefit stays the same.

3.	If the household fails to provide verification within the 10-day period and provides verification at a later date, benefits are increased the month after receipt of the verification.

Examples:
	
1.	Worker receives an alert that child support was received in the base month for an ongoing case.  Using base month child support results in an increase in benefits.  The alert must be acted on.

2.	The annual changes in the Thrifty Food Plan, Gross and Net Income Limits, Standard Deduction, Maximum Shelter Deduction and the Mandatory Utility Standards must be acted on as they will result in an increase in benefits.  The household must be notified of their new reporting requirement (Gross Income Limit) at six month report or recertification, whichever occurs first.  The worker must send the appropriate change in benefit notice.

3.	A household reports that a job ended.  The worker must send Notice F419 – Request for Verification – Simplified Reporting.  If the household responds and provides the requested information within 10 days of the mailing date of the notice, the change must be acted on to increase benefits and the appropriate notice must be sent to the household.  

	If the household fails to provide the requested verification within the 10 days, the previously verified amount of income is used and the benefit stays the same.  

	If the household fails to provide the requested verification within the 10 days, but provides it at a later date, benefits are increased the month after receipt of the verification.  

	If verification from the employer substantiates a job quit and the individual was a mandatory work registrant, the change must be acted on regardless of whether it results in an increase or a decrease in benefits.       

Changes Resulting in a Decrease in Benefits 430-05-67-15-10

A worker must not act on changes that will result in a decrease in benefits, unless the change meets the following criteria: 

1.	The information is:
a.	not questionable, and  
b.	provided by the primary source of the information, and
c.	complete, no further information is needed, and
d.	not provided by the household.

Exception:

The worker must act when a household reports the addition of a household member or when a household member leaves.

Information that is provided by the primary source is defined as a change that is reported directly from or received directly from the source of the information or a document signed by the source of the information.

Examples:

•	SDX and Bendex Interfaces
•	TPQY 
•	A household member who has exhausted ABAWD benefit months (NE or EE months).
•	SAVE information from the United States Citizenship and Immigration Services (USCIS)  
•	The determination of an intentional program violation (IPV).
•	Failure to comply with BEST requirements (Burleigh and Cass Counties only) 
•	UIB Interface
•	Mail returned by the Postal Service with no forwarding address, or an out of state address, stamped temporarily away, general delivery that was returned because it was not picked up, stamped box rent was not paid or stamped individual is not authorized to receive mail at this address 
•	Verification from an employer’s fax machine
•	Verification from a contract agency that does payroll for a business
•	Day care billing form signed by the provider
•	Wage verification signed by the employer (this does not include a paycheck endorsed by the employer)
•	Fax from an agency (i.e. housing or BIA)
•	A report from a social or foster care worker
•	Lease agreement signed by the landlord
•	Award letter signed by the agency

2.	Household voluntarily requests case closure. 
3.	Household reports actual base month income that exceeds the gross income limit for its household size, the household expects this income to continue and based on this income is not eligible for a benefit.
4.	Household reports a change that brings an ABAWD’s hours below 20 hours weekly averaged monthly.
5.	The worker becomes aware that all households have died.  Adequate notice is required.  

If the reported change meets the criteria it must be acted on within 10 days from the date the change was reported and a 10-day advance notice must be sent. If the change is reported in writing and signed by the household, a 10-day advance notice is not required. Adequate notice is required.

Examples:

1.	An ongoing case reports that a household member left the home on October 4.  The individual must be removed from the case when determining eligibility and level of benefits for November.  If the change results in a decrease in benefits, a 10-day advance notice is required. If the change is reported in writing and signed by the household, a 10-day advance notice is not required. Adequate notice is required.

2.	The worker is notified on October 10 that an individual in an ongoing case is disqualified for an intentional program violation.  The participation code for the disqualified individual must be changed to “DF” and the IPV disqualification is imposed for November.  Notice F818 – IPV-Food Stamp Overissuance or F823 - IPV/Court Conviction – No FS Overissuance must be sent to the household.  Adequate notice is required.    

3.	Household consisting of a husband and wife initially apply on November 3.  The husband is employed 35 hours a week.  The wife is not working and is eligible to receive three non-exempt (NE) ABAWD months.  The household is certified for 12 months.  The first NE month for the wife is December.  In the third month (February), the wife’s participation code must be changed to DI when working March benefits.  A 10 day advance notice is required.  

4.	A notice is returned to the county office with no forwarding address for an ongoing case on November 14.  The worker must send an adequate notice to close the case November 30. 

5.	A household reports a new source of income.  Since this change will result in a decrease in benefits and the household did not report that their income exceeds 130% of poverty, the change is not acted on.  The worker must document the change does not meet the criteria to reduce benefits.  
		
If the reported change does not meet the criteria, the worker must not ask for verification or follow-up on the change.  The worker must document why additional information is needed.  The change is acted on at the six month report or recertification, whichever occurs first. 

Information/changes that do not meet the criteria include, but are not limited to:

1.	FACSES
2.	New Hire Matches
3.	Mail returned by the Postal Service with an in state forwarding address
4.	Household report of a new job or increase income
5.	Wage stubs, checks from UIB, Workforce Safety, Child Support, SSA/SSI 
6.	Reading information in a newspaper
7.	Becoming aware of a client working (other then from employer)

Examples:

1.	A prisoner listing received from a local jail is information reported directly from the source.  However, it does not contain enough information to determine how long the individual will be incarcerated and the affect on the food stamp case.  This information is not acted on to decrease benefits, as further information/verification is needed.  The change is acted on at the six month report or recertification, whichever occurs first. 
If the release date is part of the information provided and the individual will be incarcerated for one full calendar month, the individual must be removed as the information was provided by the primary source (local jail).  A 10 day advance notice is required.  

2.	Worker receives an alert that child support was received in the base month for an ongoing case.  Using base month child support would result in a decrease in benefits.  The alert is not acted on, as the information was not provided by the primary source (obligor).  The change is acted on at the six month report or recertification, whichever occurs first. 

3.	A Food Stamp only household reports and verifies a new source of income.  This income along with all other countable income does not exceed 130% of poverty for the household size. The information is not acted as it was provided by the household.  The change is acted on at the six month report or recertification, whichever occurs first. 

4.	Household reports on January 10th that base month income exceeded the gross income limit for its household size in December.  Based on discussion with the household, the worker must determine if this income is expected to continue.  
If it is expected to continue and the household is not eligible for a benefits, the worker must close the case with an advance notice, unless the change was reported in writing and signed by the household.  

If the household does not know if this income will continue, the worker must close the case with an advance notice, unless the change was reported in writing and signed by the household.  If the household verifies by the last working day of the processing month that gross income is below the GIL for its household size, the worker must revert the case to open and determine eligibility and level of benefits for February.  

Combination Cases 430-05-67-15-15

		Combination Medicaid Cases

The worker must determine if a change reported for Medicaid results in an increase or decrease in food stamp benefits using the following procedures: 

1.	Enter the verified changes on the benefit calculator or do a hand budget.

2.	If the changes result in an increase in benefits, the changes must be made to the case in TECS.

Exception:

In combination FS/MA cases when processing the cost of living adjustment changes in December of each year, if the recipient liability is being averaged, do not change the amount allowed as a medical expense deduction for food stamp purposes. The change is not acted on until the six month report or recertification, whichever occurs first.

3.	If the changes results in a decrease in benefits, the changes are not acted on until the six month report or recertification, whichever occurs first, and benefits continue as previously authorized.  A copy of the benefit calculator or hand budget must be retained in the casefile.

Exception:

If the change meets the criteria to reduce benefits, the change must be acted on within 10 days from the date the change was reported and a 10 day advance notice must be sent.  If the change is reported in writing and signed by the household, a 10 day advance notice is not required.  Adequate notice is required.

Examples:

1.	In a combination FS/MA case if the entire recipient liability is being allowed as a medical expense deduction and it changes as a result of a change in income reported by the household, change the amount of income being used and allow the new recipient liability if it results in an increase in benefits.  

If the change in income reported by the household and resulting change in recipient liability results in a decrease in benefits, the change is not acted on until the six month report or recertification, whichever occurs first.  

If MA closes for RL not being met, and this results in a decrease in benefits, do not remove the RL amount until six month report or recertification, whichever occurs first.

2.	Ongoing FS/MA case.  Client requests the employer fax verification of base month income to the worker.  The income must be used to determine eligibility and level of benefits.    As the verification was provided by the primary source of the information (the employer), the worker must act on the change regardless of whether it results in an increase or decrease in benefits.

3.	Ongoing FS/MA case.  Client is paid weekly and provides four of the five pay stubs from the base month.  The fifth pay stub is not required by Medicaid.  The worker must use the four pay stubs to convert the income.  If the change results in an increase in benefits, the change must be acted on.  

If the change results in a decrease in benefits, the change is not acted on and the benefits stays the same.  

4.	Ongoing FS/MA case.  Client resides in a group home and each month the case manager provides a listing of earnings for individuals in the group home to the county office.  If the change results in an increase in benefits, the change must be acted on.

If the group home is also the employer (primary source), the worker must act on the change regardless of whether it results in an increase or decrease in benefits.  

If the change results in a decrease in benefits and the group home is not the employer, the change is not acted on and the benefit stays the same. 

		Combination Child Care Assistance Cases

For household that provide a completed day care billing form along with verification of earnings on a monthly basis for Child Care Assistance, the changes must be acted on to increase or decrease benefits as the child care billing form is signed by the primary source (child care provider).    

Examples:

1.	In a combination FS/CCAP case, the household submits wages stubs along with the child care billing form.  The change must be acted on as the child care billing form is signed by the primary source of the information.  

2.	Ongoing FS/MA case applies and is approved for CCAP. If the change in income and child care expenses results in an increase or decrease in benefits, the change must be acted on. 

If the change results in a decrease in benefits, the change is not acted on until the six month report or recertication, whichever occurs first.  
		
Unclear or Insufficient Information to Make a Benefit Determination 430-05-67-15-20

Whenever a worker receives unclear or insufficient information from a household and the worker is unable to determine the effect on the benefit, the worker must pursue clarification and verification of household circumstances using the following procedures: 

1.	The worker must send Notice - F419 “Request for Verification” to the household clearly advising the household of the verification it must provide or the actions it must take to clarify its circumstances. The household must be allowed 10 days from the mailing date of F419 to respond and to clarify its circumstances either by telephone or by correspondence.

2.	If the household responds and provides sufficient verification within the 10-day period and it results in an increase in benefits, the worker must act on the reported change within 10 days and send the household the appropriate notice.

3.	If the household fails to provide verification within the 10-day period, the previously verified amount of the reported change is used and the benefit stays the same.

If there is no previously verified amount (i.e. household reports paying rent and previously had not), no change is made and the benefit stays the same.  
4.	If the household provides the verification at a later date and the change results in an increase in benefits, benefits are increased the month after receipt of the verification.

Example:

If a household reports an ongoing decrease in income on October 15, the worker must send notice F419 to the household.  If the household does not respond within 10 day of the mailing date, the reported and unverified change is not acted on when determining eligibility and level of benefits for November.  The benefit stays the same.  

On November 16, the household provides verification of the previously reported and unverified ongoing decrease in income.  When determining eligibility and level of benefits for December, the verified change is made as it results in an increase in benefits.  

5.	If the household responds and provides sufficient information/verification or provides sufficient information/verification at a later date and the change results in a decrease in benefits, the change must not be acted on until the six month report or at recertification, whichever occurs first. 

Exception:

If the change meets the criteria to reduce benefits, the change must be acted on within 10 days from the date the change was reported and a 10 day advance notice must be sent.  If the change is reported in writing and signed by the household, a 10 day advance notice is not required.  Adequate notice is required.  

Example:

Ongoing FS/MA case.  Client is paid twice a month and provides only one pay stub from the base month or provides a pay stub from the base month and one pay stub from the processing month.  Year to date totals can be used. The worker sends notice F419 requesting additional information, because we cannot determine the effect on the benefit.  If the household provides the second pay stub from the base month, the worker must determine if base month income results in an increase or decrease in benefits.  If base month income results in an increase in benefits, the income must be used.  If base month income results in a decrease in benefits, the income is not used.  The previously verified amount of income is used.  

If the household fails to provide the second pay stub from the base month, the previously verified amount of income is used.   
		
Action on Multiple Reported Changes 430-05-67-15-25 
		
If a household reports multiple changes that result in a decrease in benefits, the changes must not be acted on until six month report or recertification, whichever occurs first.

Exception:

If the changes meet the criteria to reduce benefits, the changes must be acted on within 10 days from the date the changes were reported and a 10 day advance notice must be sent.  If the changes are reported in writing and signed by the household, a 10 day advance notice is not required.  Adequate notice is required.

If a household reports multiple changes that result in an increase in benefits or the benefit determination is unclear, the changes must be verified.  If the household does not provide verification, the F419 – “Request for Verification” must be sent allowing the household 10 days from the mail date of the notice to verify the reported changes. 

1.	If the household provides verification of one, some or all of the reported changes within the 10-day period and it results in an increase in benefits, the worker must act on the verified change(s) within 10 days and send the household the appropriate notice. Changes that are not verified are not acted on.

2.	If the household fails to provide verification of any of the reported changes within the 10-day period, the reported changes are not acted on, the previously verified amount is used and the benefit stays the same.  

3.	If the household provides verification of one, some or all of the reported changes at a later date and the changes result in an increase in benefits, benefits are increased the month after receipt of the verification.

4.	If the household responds and provides sufficient information/verification of one, some or all reported changes or provides sufficient information/verification at a later date and they result in a decrease in benefits, the changes must not be acted on until the six month report or at recertification, whichever occurs first.  Changes that are not verified are not acted on.

Exception:

If the change meets the criteria to reduce benefits, the change must be acted on within 10 days from the date the change was reported and a 10 day advance notice must be sent.  If the change is reported in writing and signed by the household, a 10 day advance notice is not required.  Adequate notice is required.

Examples:

1.	A household reports the loss of a job and new employment.  The worker sends Notice F419 requesting additional verification.  The household provides the last day of work and the final pay check (including any vacation pay) for the job loss and the number of hours they will be working, dates they will be paid and the first pay check that includes the hourly wage for the new source of income.  The changes do not put the household over the 130% gross income limit.  If the changes result in an increase in benefits, the changes must be acted on.  

If the changes result in a decrease in benefits, the changes are not acted on as the household provided the verification.  The changes must be acted on at the six month report or at recertification, whichever occurs first.

If the household fails to provide verification of any of the reported changes within the 10-day period, the reported changes are not acted on, the previously verified amount is used and the benefit stays the same.  

If the household provides a statement from the employer verifying the job loss and the new source of income, and the changes result in a decrease in benefits, the changes must be acted on.  
 
2.	A household reports the loss of a job and new employment.  The worker sends Notice F419 requesting additional verification.  The household provides the last day of work and the final pay check (including any vacation pay) for the job loss but does not provide verification of the new source of income.  Removing the income from the job loss results in an increase in benefits and must be acted on. The new source income is not acted, unless the household provides verifications at a later date, until the six month report or recertification, whichever occurs first.   

Adding a New Household Member 430-05-67-20

When adding a new household member to an ongoing food stamp case, the individual is processed as a new applicant. The mandatory verifications apply to the new individual. If the individual being added has received food stamp benefits in another household, state, or through the Food Distribution Program, the individual cannot be added. 
 
Exception:

Initial application proration does not apply to the individual being added to the household. 

If the household does not provide the mandatory verifications needed to add the individual, Notice F419 – “Request for Verification” is sent allowing the household 10 days from the mailing date of the notice to provide the information needed. 

If the household provides the mandatory verifications needed to add the individual within 10 days from the mail date and it results in an increase in benefits, the individual must be added to the household for the next benefit month. If because of when the change is reported, the 10 day timeframe extends into the next benefit month, a supplement must be issued. 

If the household provides the mandatory verifications needed to add the individual and it results in a decrease in benefits, the worker must issue a 10 day advance notice unless the change was reported in writing and signed by the household. If the worker does not have 10 days for the 10 day advance notice, the individual is not added for the next benefit month, but must be added the month following the expiration of the 10 day advance notice. 

If the household does not respond to the F419 within the 10 days from the mail date, the individual is not added until the six month report or at recertification, whichever occurs first.  

If the household provides the verification at a later date, the change must be made to increase or decrease benefits the month after receipt of the verification.

The household is subject to the new gross income limit (GIL) once the individual has been added to the case.  The worker must send notice F741 or F742 whichever is appropriate in addition to the appropriate notice advising the household the individual has been added to the case.  

Removing a Household Member 430-05-67-25

When a household reports that an individual has left, the individual must be removed. 

Exception:

If the individual is temporarily away from the household for less then one full calendar month. 

Example:

Household reports on October 17 that a household member entered a 30-day treatment program on October 13 and anticipates returning on November 11.  Since the household member will be away for less then one full calendar month, the individual is not removed from the household. 

If removing the individual results in an increase in benefits, client statement is acceptable verification, unless questionable. The worker must process the change timely. 

If removing the individual results in a decrease in benefits, a 10-day advance notice is required unless the change is reported in writing and signed by the household. If the worker does not have 10-days for the 10-day advance notice, the individual is not removed for the next benefit month, but must be removed for the month following the expiration of the 10-day advance notice.

The household is subject to the new gross income limit (GIL) once the individual has been removed from the case.  The worker must send notice F741 or F742 whichever is appropriate in addition to the appropriate notice advising the household the individual has been removed from the case.

Household Moves to a New County Within the State 430-05-67-30

When the worker has information indicating a household has moved to a new county and verification has not been provided, the worker from the county the household is moving from must send Notice F419 – Request for Verification requesting any verification needed, including residency and new shelter costs. The household has 10 days from the mailing date of the F419 to provide the verification.  Verification of residency is not required until six month report or recertification, whichever occurs first.  

If the household fails to provide verification of new shelter and utility costs, the previously reported and verified expenses continue to be used until the six month report or recertification, whichever occurs first, as removing the expenses would result in a decrease in benefits.

If the household provides the verifications and it results in an increase in benefits, benefits are authorized using the verified information. 
	
If the household provides the verifications at a later date and the change results in an increase in benefits, benefits are increased the month after receipt of the verification.

If the household provides the verifications within the 10 days or provides the verification at a later date and it results in a decrease in benefits, the change is not acted on until the six month report or recertification, whichever occurs first.  

Exception:

If the change meets the criteria to reduce benefits, the change must be acted on within 10 days from the date the change was reported and a 10 day advance notice must be sent.  If the change is reported in writing and signed by the household, a 10 day advance notice is not required.  Adequate notice is required.
		
Prior to transferring the case the worker must complete the following in order.  However, the sending and receiving county must take into consideration what is in the best interest of the household.

1.	Authorize benefits.
2.	Work any IEVS for combination cases when verification has been received or case alerts.
3.	Complete any outstanding claims.
4.	Ensure that any cash payments on claims received by the worker are submitted to Finance.
5.	Review the file to ensure the mandatory verifications are included.
6.	Update narrative.
7.	Change the address.
8.	Send notice F817 – Notice to Client Case File Transfer.
9.	Transfer the case in the TECS system using the CARC screen. 
10.	Complete SFN 700 – Case Transfer Log.

Case Closing Zero Benefit 430-05-67-35

When a household’s net income exceeds the level at which benefits are provided, the worker must close the case using Notice F443 – Zero Benefit Closure.

Action on Changes Reported by Source Other than the Household 430-05-67-40 

Any change reported from a source other than the household where the effect on the benefit is an increase or unknown, must be acted on by sending the F419. The household must be allowed 10 days from the mailing date of F419 to respond and to clarify its circumstances either by telephone or by correspondence.  If the change results in a decrease in benefits, the change must be acted on at six month report or recertification, whichever occurs first.
	
Exceptions:

1.	Medical expenses that are reported from a source other than the household during the certification period must not be acted on if the worker must contact the household for verification.

Example:

A niece calls to report that her aunt who is on food stamps is paying $60 a month for prescriptions. The worker is prohibited from contacting the aunt.

2.	If the change is reported by the primary source of the information and includes all needed information/verification to act on the change, it must be acted on to increase or decrease benefits.

Example:

The annual cost of living increases and the Medicare premium changes must be acted on to increase or decrease benefits.  

3.	A household reports the addition of a new household member that is included in another Food Stamp case. The change in household composition must be acted on for both cases.

	   	Example:

Dad reports that a child came to live with him permanently who was included and receiving food stamp benefits in mom’s case.  The child must be removed from mom’s case allowing for a 10 day advance notice to reduce benefits.  The child must then be added to dad’s case.  

1.	If the household responds and provides sufficient verification within the 10-day period and it results in an increase in benefits, the worker must act on the reported change within 10 days and send the household the appropriate notice.

2.	If the household fails to provide verification within the 10 day period, the previously verified amount of the reported changes is used and the benefit stays the same.
	
If there is no previously verified amount (i.e. household reports now paying rent and previously had not), no change is made and the benefit stays the same. 

3.	If the household provides the verification at a later date and the change results in an increase in benefits, benefits are increased the month after receipt of the verification.

4.	If the household responds and provides sufficient information/verification within 10 days or provides verification at a later date and the change results in a decrease in benefits, the change must not be acted on until the six month report or at recertification, whichever occurs first. 

Exception:

If the change meets the criteria to reduce benefits, the change must be acted on within 10 days from the date the change was reported and a 10 day advance notice must be sent.  If the change is reported in writing and signed by the household, a 10 day advance notice is not required.  Adequate notice is required.

Example:

A source other than the household reports a household member is working on October 15 and the effect on the benefit is unknown.  Notice F419 was sent to the household on October 16 and the household did not respond to the notice within 10 days of the mailing date.   When determining eligibility and level of benefits for November, the reported and unverified change is not acted on.

On November 16, the household provides verification of the previously reported and unverified new source of income.  The new source of income does not put the household over 130% of the gross income limit for the household size.  When determining eligibility and level of benefits for December, the verified change is not acted on as it results in a decrease in benefits and the verification was provided by the household.  

Change in Reporting Requirements 430-05-67-45

When a household changes from one reporting requirement to the other, the reporting requirement is effective the first day of the first month the household is subject to the new requirement.

Example:

A simplified reporting household that contains all elderly household members certified in October reports the loss of all earned income on November 27th. The household remains a simplified reporting household until the six month report is due on March 10th.  The household is subject to change reporting effective April 1st.  

Changing From Simplified Reporting to Change Reporting 430-05-67-45-05

If a household certified as a simplified reporting household no longer meets the simplified reporting criteria, the household remains a simplified reporting household until the six month report or recertification, whichever occurs first.  

Exception:

If a simplified reporting household applies and is eligible for TANF, the household becomes a monthly reporting household for TANF.   The worker must change the “FS Simplified Reporting Household – Send Six Month Report Form” indicator to an “N” on the CHRS screen.  The monthly report will be sent out of Vision.     

If at six month report or recertification, the household no longer meets the simplified reporting criteria, the worker must enter an N on the FS Simplified Reporting Household – Send Six Month Report Form.  TECS will then automatically send a change report form and Notice X420 - Change Reporting Requirements to the household.

Example:

A simplified reporting household that contains all elderly household members certified in October reports the loss of all earned income on November 15th. The household remains a simplified reporting household until the six month report is due on March 10th.  At the time the six month report is processed, the FS Simplified Reporting Household – Send Six Month Report Form indicator must be sent to an N.  The household is subject to change reporting requirements for the remainder of the certification period.  

Changing From Change Reporting to Simplified Reporting 430-05-67-45-10

If a household certified as a change reporting household reports and verifies a change that meets the simplified reporting criteria, the worker must act on the reported change and change the household to a simplified reporting household. 

The worker must enter an Y on the FS Simplified Reporting Household – Send Six Month Report Form.  TECS will then automatically send the X421 – SR Requirements for CE HH Over Gross Income or the X422 - Simplified Reporting Requirements, whichever is appropriate, to the household.

Examples:

1.	A household with all elderly members with no earned income was certified in December.  On February 6th, the household reports and verifies a new source of income from employment for a household member.  The simplified report indicator must be changed to a Y for the benefit month of March.  TECS will automatically send Notice X422 and the household becomes a simplified reporting household effective March 1st.

2.	A TANF household requests their case be closed on March 26th as child support exceeds the amount of the grant.  The TANF grant must not be counted for April benefits.  The worker must change the simplified reporting indicator to a Y for the benefit month of April. TECS will then automatically send Notice X422 and the household becomes a simplified reporting household effective April 1st.

	If anticipated child support for April would result in a decrease in benefits, a 10-day advance notice is required.  

	If the worker receives an alert on May 1 that child support was paid in the base month (April), the household is now a simplified reporting household.  Counting the child support paid in the base month would result in a decrease in benefits.  The change is not acted on until six month report or recertification, whichever occurs first.  
				
If there are less than six months left in the household’s certification period, no six month report is required, as the household must be recertified at the end of its current certification period.
	
If there are more than six months left in the household’s certification period, a six month report will be mailed to the household on the 4th to the last working day of month five.   The report is due by the 10th day of month six.  In addition, the household is required to complete the recertification application at the end of the household’s current certification period. 

If the household does not submit a MR for TANF and they have a history of late reporting for TANF, anticipate the TANF grant and the household remains a change reporting household.

If the TANF grant is not counted, the household becomes a simplified reporting household for the first month after the TANF case closes.  Once TANF is reinstated, (POP) grant must be counted, as regulations require us to act on all TANF changes.  The first month that a TANF grant is counted, the household becomes a change reporting household.  Adequate notice is required.  

Change in Reporting Requirements from Simplified Reporting to Simplified Reporting for Categorically Eligible Household Over Gross Income 430-05-67-45-15

If a categorically eligible household certified as a simplified reporting household reports and verifies a change that results in the household exceeding the gross income limit for the household size and the household remains eligible for a benefit, the worker must send notice F741 – SR Requirements for CE HH Over Gross Income.  This notice informs the household they must complete a six month report and the only reporting requirement is to report a change in work hours that bring an ABAWD below an average of 20 hours weekly. 
						
Change in Reporting Requirements from Simplified Reporting for Categorically Eligible Household Over Gross Income to Simplified Reporting 430-05-67-45-20

If a categorically eligible household certified as a simplified reporting household with income that exceeds the gross income limit for the household size, reports and verifies a change that results in income no longer exceeding the gross income limit for the household size, the worker must send notice F742 – Simplified Reporting Requirements.  This notice informs the household of their reporting requirements.  

Example:

A household of four reports and verifies gross income of $2500 that exceeds the gross income limit for the household size.  In calculating eligibility and level of benefits, the household is eligible for a $22.00 benefit.  The household reports a household member lost a job resulting in gross income decreasing to below the gross income limit for the household size. The worker must send the F742 – Simplified Reporting Requirements that informs the household of the gross income limit for the household size.  The household is now required to report if income exceeds the gross income limit for the household size.

Intentional Program Violation (IPV) and Other Disqualifications 430-05-75

43.	430-05-75-25 – Other Disqualifications.  Added the SFN 376 – Drug Related Felony Review coversheet for use when submitting a review.

		Drug Related Felony
 
An individual convicted of a felony for possession, use, or distribution of illegal drugs is permanently ineligible to participate in the Food Stamp Program when the act occurred after August 22, 1996.
 
If an individual is convicted of a drug related felony, the following information must be sent to the State Food Stamp Office for review on the SFN 376 – Drug-Related Felony Review form:

•	Eligibility Worker Full Name and County
•	Individual's Social Security Number 
•	Individual's Date of Birth
•	Individual's Full Name and Middle Initial
•	Case Number Individual is Participating In
•	Individual's Client ID Number
•	Sex of Individual
•	Copies of the Criminal Complaint and Judgment or Order which substantiates the individual's drug-related felony

In order to determine whether an individual’s conviction is disqualifying, the court documents that you send to the State Office must include the date of the offense(s), the sentence or judgment of the court and the nature of the offenses.  This information is usually contained in the Criminal Complaint and Judgment document.  However, the offense date is not always listed on the Criminal Complaint and Judgment.  
 
If the Criminal Complaint and Judgment document does not contain the offense date(s) please request a copy of the “Information” or “Criminal Information” document and forward it to the State Office.  The “Information” or “Criminal Information” document will include the offense date(s).
 
If an individual is convicted in a federal court, the court documents may not indicate whether an offense was a misdemeanor or a felony.  In that case, the court documents should be forwarded to the State Office even without that information being provided.
 
The State Food Stamp Office will review the information to determine if the conviction disqualified the individual from the Food Stamp Program and notify the worker. If appropriate, the State Food Stamp Office will enter the disqualification on the sanction screen in TECS and change the individual’s participation code to DD. 

Claims 430-05-80

44.	430-05-80-30 – Calculating the Amount of Claims.  Incorporated the change in the reporting requirement timeframe.  This is a change in policy for all cases effective October 1, 2006.  

Also, added information on calculating claims in simplified reporting households.  This is a change in policy.  

		Calculating the Amount of Claims 430-05-80-30

Verifications needed to complete the claim must be obtained by using Notice F814 – “Required Verification” – allowing the household 10 days to provide the information. The worker must only request verification of new information that they become aware of.
Exception:

Quarterly wage matches through IEVS. IEVS alerts are only acted on if verification is obtained for Medicaid or TANF.  If needed verifications cannot be obtained from the individual using the appropriate IEVS verification notice, the quarterly wage must be prorated over the quarter and a claim established. The IEVS verification notices advise the household of the source of the information and also provides the household an opportunity to provide verification of the information received if it differs from the IEVS data.

If the case is closed and the household fails or refuses to respond to the request, the worker must document in the casefile that there is an outstanding claim issue. If the household applies at a later date, the household must cooperate by providing the information necessary to calculate the claim. If the household continues to fail or refuses to provide the information, the application must be denied.

If the case is an ongoing food stamp case and the household fails or refuses to respond to the request, the worker must send the F401. The case will close at the end of the advance notice period. The worker must document in the casefile that there is an outstanding claim issue. If the household reapplies at a later date, the household must cooperate by providing the information necessary to calculate the claim. If the household continues to fail or refuses to provide the information, the application must be denied.

If the household responds and indicates they need assistance in obtaining the information, the worker must attempt to obtain the information from the appropriate source. If the appropriate source fails to respond and provide the needed verification, the worker must complete the claim based on the best information provided by the household. The worker must document the attempt to verify income and the income used.

In determining the amount of a claim in all instances, the worker must apply the maximum timeframe of 10-10-10. 

•	The household has until the 10th day of the month following the month the change occurred to report 10-days to report.
 
•	The worker then has 10 days to act. 

•	In all instances 10 days must be allowed for the 10 day advance notice.  Even though 10-day advance notice may not have been required (change reported in writing and signed by the household), policy requires that 10 days must be allowed. 

Exception:

10-10-10 does not apply at initial application, recertification or at the six month report for simplified reporting households.  

Actual circumstances must be reviewed for each month. It may appear that there is an overissuance for one month but no claim established due to 10-10-10. 

For change reporting households when completing a claim for income that was used incorrectly, not reported or reported incorrectly, actual income must be used, even if income conversion applies (income paid weekly or biweekly).     

Example:

In an ongoing case where the household will not be converted to simplified reporting until recertification, a household reports and verifies the earnings of two individuals. At a later date the worker discovers that a third household member has been working for several months. When calculating the claim, the verified earnings of the two individuals remain unchanged. Actual verified income of the third individual is used in establishing the claim. 

For simplified reporting households when completing a claim for income that was used incorrectly, not reported or reported incorrectly, circumstances that should have been used at initial certification, the six month report, recertification, or when a change was reported/discovered or should have been reported that required action must be used.  If income conversion applies, the corrected converted amount from the initial month, six month report or recertification (not corrected converted income from each month in error) must be used to determine the claim.    
Claims must be established based on the reporting requirement the household was subject to when the error occurred.  

Examples:

1.	A household changed from a simplified reporting household to a change reporting household at the time of the six month report in March for April.  It was discovered that the household failed to report a source of income at the initial application in October. When completing the claim, the claim is established using procedures for a simplified reporting household.

2.	It is discovered at the six-month report that a household’s actual income exceeded the GIL (gross income limit) in month two of the certification period and the household was not eligible for a benefit.   The household had until the 10th of month three to report and did not.  The household’s income exceeded the GIL in month, three and four, was under the GIL in month five, and was over the GIL in month six.  Months four, five, and six are total overpayments because the case should have closed at the end of month three.

3.	A household initially applies on October 2 and reports and verifies income for the husband.  No income is declared for the wife. The household is certified from October 2 through September 30. In January, the worker discovers the wife had income at the time of initial certification and it was never reported.  In December the wife also received a raise, but the raise would not have put the household over the gross income limit. 

In computing the amount of the overissuance for October, the verified amount of income that the wife was receiving at the time of certification is used.  In computing the amount of the overissuance for any subsequent month, the verified amount of income the wife received at the time of certification would also be used.  The December raise would be disregarded, as it did not put the household over the gross income limit.  The claim would be for the months of October through January. 

4.	A household reports and verifies earnings at initial certification in October.  The worker incorrectly computes the monthly income and certifies the household October through September.  In January, the worker discovers the computation error and also learned the household received a pay raise in December.  The raise does not put the household over the household’s gross income limit.

In computing the amount of the overissuance, the worker would recompute the household’s benefits based solely on the verified amount of income that the household reported and verified at initial certification.  As the pay raise in December did not put the household’s income over the gross income limit, the household was not required to report the increase in income until March when the six month report was due. The pay raise would not be used in calculating the claim.  The claim would be established for October through January.

5.	Household provides verification of a quarterly wage match for Medicaid in an ongoing combination food stamp simplified reporting case.  The verification shows gross income does not exceed 130% of poverty for the household size. This information must not be acted on to decrease benefits.  There is no claim, as the household was not required to report these earnings.  This must be clearly documented in the casefile.   

6.	Household provides verification of a quarterly wage match for Medicaid in an ongoing combination food stamp change reporting case. The verification shows earnings that were not reported by the household.  The worker must establish a client error claim using 10-10-10.  

7.	Household was initially certified in November as a simplified reporting household and was over the gross income limit but eligible for a benefit. In month three a household member obtained employment that was discovered at the six month report in April.  There is no claim in this case as the household was not required to report when income exceeded the GIL for the household size.  

8.	At six month report in April, it is discovered that household income exceeded the GIL in January.  Based on information obtained, the household had until February 10th to report that income exceeded the GIL.  In determining if a claim exists for March and April, the household’s income exceeded the GIL for its household’s size.  However, the household was eligible for a benefit for both March and April.  There is no claim as the household remained eligible and had the income been reported, would have resulted in a decrease in benefits.  

When a household fails to report or to timely report earned income, the earned income deduction is not allowed when establishing the overissuance. The Earned Income Penalty Violation Code (PV) is entered on the EAIN screen for only the earned income not reported or not reported in a timely manner. 

When completing a claim for expenses, only the incorrect expenses are changed. All other expenses remain unchanged unless there is other information reported timely.

Example:

The standard utility allowance was allowed in error. The household also has rent and child care expenses. When completing the claim, the standard utility allowance is removed and the rent and child care expenses remain unchanged, unless there is other information reported timely.

If an underpayment would result instead of a claim and the household failed to report or report timely, benefits are not restored. 

If a worker failed to act on a timely reported change, the first month overissued is the first month the worker would have made the change based on 10-10-10.

If a 10 day advance notice would have been required for the month the claim is being established (individual did not report timely or worker did not act timely), it is assumed for the purpose of calculating the claim that the 10 day advance notice period would have expired without the household requesting a fair hearing.
The amount of an overissuance is the difference between the amount of entitlement and the amount received. 

Trafficking Claims

Claims from trafficking related offenses will be the amount of the trafficked benefits as determined by:

a.	the individual’s admission;
b.	adjudication; or
c.	the documentation that forms the basis for the trafficking determination.

45.	430-05-80-35 – Collecting Claims Against Households.  Added clarification of when adequate notice is required to begin allotment reduction.  

		Collecting Claims Against Households 430-05-80-35
 
Collection action must be initiated on all claims that are cost effective.
 
The worker can postpone collection action when a case is referred for possible prosecution or for administrative disqualification when the worker determines that collection action will jeopardize the case.
 
Administrative Error Claims

When an administrative error claim is established, the worker must:

1.	Send notice F819 - Food Stamp Overissuance Notice (AG error) to the household. Notice X005 - FS Demand for Payment Notice (AG error) automatically follows. 

The worker will receive an alert 30 days from the date Notice F819 is sent as a reminder that the demand for payment is due.
2.	Set the payment plan to 10% or $10 (whichever is greater) if the household does not respond and is currently participating in the program. Allotment reduction is automatic.

If a food stamp case is closed and a household reapplies at a later date, a 10-day advance notice or adequate notice is not required to begin allotment reduction in the second beginning month, provided the worker sent Notice F819 when the claim was originally established.  

If allotment reduction begins after the second beginning month, adequate notice is required.  
 
Inadvertent Household Error Claims

When an inadvertent household error claim is established the worker must:

1.	Send notice F816 - Food Stamp Overissuance Notice (CL error) to the household. Notice X007 - FS Demand for Payment Notice (CL error) automatically follows. 

The worker will receive an alert 20 days from the date Notice F816 is sent as a reminder that the demand for payment is due.

2.	Set the payment plan to 10% or $10 (whichever is greater) if the household does not respond and is currently participating in the program. Allotment reduction is automatic.

If a food stamp case is closed and a household reapplies at a later date, no 10-day advance notice or adequate notice is required to begin allotment reduction in the second beginning month, provided the worker sent Notice F816 when the claim was originally established.

If allotment reduction begins after the second beginning month, adequate notice is required.  

IPV Claims

The worker must initiate collection action against the household.

Exception:

If collection action will jeopardize the case against a household member referred for prosecution.
 
When an individual has been found guilty of IPV, the worker must:

1.	Send notice F818 - IPV - Food Stamp Overissuance Notice (FR error) to the household. This notice is a combination overissuance/demand for payment notice. 

The worker will receive an alert 10 days from the date Notice F818 is sent as a reminder that the demand for payment is due.

2.	Change the error cause from CL to FR and the payment plan from 10% to 20% or $20 (if the $20 is greater than 20%) if the household does not respond and is currently participating in the program. Allotment reduction is automatic.

If a food stamp case is closed and a household reapplies at a later date, no 10-day advance notice or adequate notice is required to begin allotment reduction in the second beginning month, provided the worker sent Notice F818 when the claim was originally established. 
 
If allotment reduction begins after the second beginning month, adequate notice is required.

When a case has been referred for prosecution the worker must request restitution be brought before the court or addressed in the agreement reached between the prosecutor and accused individual.

46.	430-05-80-65 – Bankruptcy and Claims.  If counties are notified of a bankruptcy they must notify the state office and send in any documentation they receive as there are times counties are notified and the state is not.  

		Bankruptcy and Claims 430-05-80-65
 
When a worker has been notified that a household has filed for bankruptcy, collection action must stop for all claims, pending the outcome of the court proceedings. The prohibition on collection action includes recoupment. 
 
If a county is notified of a bankruptcy, the county must inform the Legal Advisory Unit and send in any documentation received on the bankruptcy to that unit. 
	
A copy of the Notice of Bankruptcy, Notice of Bankruptcy Discharge or Order Dismissing Case Meeting of Creditors, and Deadlines and the Discharge of Debtor must be sent to the State Office Legal Advisory Unit.
	
Supplements and Replacements 430-05-85

47.	430-05-85-10 – Replacement Issuance.  Added further examples of a household misfortune and deleted the requirement that the signed statement include the household’s knowledge of the penalties for a false claim as this pertained to replacement of lost or stolen food stamp coupons.

		Replacement Issuance 430-05-85-10
 
A replacement issuance must be provided when a household reports that food purchased with food stamp benefits was destroyed in a household disaster or misfortune, such as but not limited to: 

•	A fire
•	A flood
•	A tornado
•	Loss of electricity due to a power outage of more than 4 hours
•	Food stolen from a client's home
•	Malfunction of an appliance

The household need not be currently participating.  The worker must verify the loss through a collateral contact such as, but not limited to, the fire department, Red Cross, a police report, landlord or a home visit.
 
The worker must document in the household’s case file each request for replacement, the date, the reason, and whether or not a replacement was provided. 
 
Replacement issuances are provided only:

•	If a household timely reports the loss within 10 days of the loss.
•	If a signed statement or affidavit is received within 10 days of the date of the report.

The signed statement or affidavit must be faxed to the State Office as the State Office completes all replacements. The worker must retain a copy of the signed statement or affidavit in the case file. The signed statement or affidavit must include the following:

1.	Amount destroyed up to the original issuance.

2.	Specify the reason for replacement.

3.	That the household is aware of the penalties for intentional misrepresentation of the facts, including but not limited to, a charge of perjury for a false claim.

If the worker does not receive the signed statement or affidavit within 10 days of the date of the report, no replacement is made. If the 10th day falls on a weekend or holiday, and the statement is received the day after the weekend or holiday, the worker must consider the statement timely. 
 
There is no limit to the number of replacements. 
The maximum replacement cannot be for more than one month and cannot be more than the Thrifty Food Plan if that had been the original amount issued, unless the issuance includes underpayments, which must be replaced.

	Forms 430-05-100

48.	430-05-100-120 – SFN 109 - Six Month Report/Change Report Form.  Added this form with a revised date of 10/2006. 

49.	430-05-100-125 – SFN 376 – Drug-Related Felony Review.  Added this form with a revised date of 05/2005.