Par.1.  Material Transmitted and Purpose – Transmitted with this Manual Letter are changes to Service Chapter 430-05 – Supplemental Nutrition Assistance Program (SNAP) Policy.  This also incorporates changes made with:

•	AMENDED IM 5089 2009 Self-Employment Income Tax Guidelines
•	IM 5099 Eligibility for Aliens
•	IM 5098 Exemptions from Work Requirements
•	IM 5092 Iraqi and Afghan Special Immigrant Policy
•	IM 5090 Applications and Recertifications Filed with No Address
•	IM 5081 BEST Program
•	IM 5078 Replacement Issuance
•	IM 5077 Annual Changes in SNAP
•	IM 5074 Expedited Services at Recertification

Par. 2. Effective Date – This manual letter is effective for all new applications and reviews received on or after October 1, 2010 unless otherwise indicated.  For ongoing cases the changes must be made at next desk review or at the next certification review, whichever occurs first.

Items that include a change in policy are indicated.  All other items are corrections or clarifications.

This manual letter also includes the following changes made throughout the manual.  The sections effected are not included as part of this manual letter cover.  

•	Removed all notices that were deleted, added new notices and updated all notice titles as a result of the Plain English Project.
•	Updated all forms as a result of the Plain English Project.
•	Recertification was changed to review in the Plain English Project.  This change was made throughout the manual.
•	Updated the Standard Deduction for a household size of 1-3 from $141 to $142 (all other standards did not change) and changed the Maximum Shelter Cost Deduction from $459 to $458 based on the annual cost of living adjustments.  The Gross and Net Income Limits, Thrifty Food Plan, Minimum Benefit and Mandatory Utility Standards did not change.  

Application Processing 430-05-20

1.	430-05-20-60-30 – Gross Income.  Added additional clarification to the treatment of tips, commissions, bonuses or incentives.  

	Gross Income 430-05-20-60-30
 
1.	The unearned income for all household members must be verified.

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 through 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 judgement.  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 or on the interview date, that income must be used for the month of application. If the household anticipates a change for the first month of the new certification period, that change must be verified and used. 
 
For all cases where income (both earned and unearned) is received either weekly or biweekly, income must be converted for benefit determination.  
 
Biweekly is defined as receiving earnings every two weeks.  
 
Example:

Individual receives a paycheck every other Monday.  
 
To convert weekly earnings, total the weekly checks and divide by the number of checks (4 or 5) to arrive at the weekly average.  The weekly average is then multiplied by 4.3.  
 
To convert biweekly earnings, total the biweekly checks and divide by the number of checks (2 or 3) to arrive at the biweekly average.  The biweekly average is then multiplied by 2.15.
 
Exceptions:

1.	Income conversion does not apply to self-employment income.  

2.	Income will not be converted when it is known that a household will not receive the income on each of the weekly or biweekly pay dates.

3.	Income conversion does not apply to child support income as this income is base month budgeted.
 
If tips, commissions, bonuses or incentives are paid weekly or biweekly and are included in the gross income on the weekly or biweekly paycheck or pay stub, they are converted.
 
If tips, commissions, bonuses or incentives are paid weekly or biweekly and are included on the paycheck or pay stub, but not in the gross income and the paychecks are received weekly or biweekly, they must be added to the gross income and converted.
 
If tips, commissions, bonuses or incentives are not included in or on the paycheck or pay stub and are not paid weekly or biweekly, they are not converted.  The tips, commissions, bonuses or incentives must be counted separately as earned income.
 
Examples:

1.	Cash tips received daily and reported monthly are not converted.

2.	Tips paid in a separate check that is not paid weekly or biweekly are not converted.

3.	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.

4.	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.  

5.	Household applies for benefits on January 15 and is interviewed on January 17.  At the interview the household reports they are paid weekly, however, they only received three of four weekly paychecks in December due to the weather.  The household does not know if they will receive all of the weekly earnings in February.  Since it is not known whether the household will receive weekly earnings in February, the income must be converted.  The three checks from December must be divided by three and then multiplied by 4.3.

2.	430-05-20-80.  Categorical Eligibility.  Changed the policy for categorically eligible households that include a disqualified individuals.  This is a change in policy that was incorporated as a mass change effective with the benefit month of October 2010.

Categorical Eligibility 430-05-20-80

 The following households are categorically eligible:

1.	Any household in which ALL members receive TANF, including Diversion Assistance, Transition Assistance and Kinship Care.  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.

Exception:

For TANF Pay After Performance, since the Pay After Performance individual's needs are deducted from the grant, the individual is not considered categorically eligible based on receipt of TANF.

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.
 
Automatic Asset and Income Test

Households in which ALL household members are in receipt of TANF, SSI, or a combination of TANF and SSI are categorically eligible and will automatically pass all asset and income tests in TECS. The income type of SI on the UNIN screen and/or participation of IN, in an open TANF case in Vision is used to determine categorical eligibility.
 
All eligible one and two person households are entitled to the minimum $16 monthly allotment.

Exception: 

If due to proration during the initial month, the benefit is less than $10, no benefit is issued.
 
When a household’s net income exceeds the level at which benefits are provided, the worker must deny the application using Notice F231 – Application Denied Zero Benefit.

	Non-Categorically Eligible Households
	
Households in which all members receive TANF and/or SSI that also include a member that is disqualified for fraud (DF) or a drug felony (DD) cannot be categorically eligible.  The household will automatically pass the asset test but is subject to the 130% gross income test and 100% net income test.
		
3.	430-05-20-85.  TANF Information and Referral Services.  Changed the policy to include the 200% gross income test and also changed the policy for TANF I & R households that include a disqualified individual.  Reference to categorically eligible was also removed.  Categorically eligible will be used when referring to TANF and/or SSI households only.  This is a change in policy that was incorporated as a mass change effective with the benefit month of October 2010.

	TANF Information and Referral Services 430-05-20-85
 
Any household in which ALL members receive or are authorized to receive information and referral services are eligible as a TANF Information and Referral Services (TANF I & R) household. are categorically eligible.  SNAP households receive TANF I & R services through the receipt of the DN 246 – TANF I & R brochure or the DN 405 – Application for Assistance Guidebook.  All applicants and recipients are authorized and notified of these services by signing the SFN 405 - Application for Assistance or the SFN 407 - Review of Eligibility for SNAP. Both of these forms include a statement that if the household is eligible for TANF Information and Referral Services, the household has been notified and is authorized to receive TANF Information and Referral Services.
 
The county will provide individuals with information and referrals to various other agencies, programs, organizations and community/county resources that could be of benefit to the household (such as housing, Child Care Assistance, Salvation Army, Community Action, Job Services, Bureau of Indian Affairs, etc.). 
 
Any individual who has been disqualified from participation is not eligible and authorized to receive TANF Information and Referral Services.
TECS is programmed to treat income and assets correctly based on participation codes on SSDO.
 
Automatic Asset Test

Categorically eligible TANF I & R households will automatically pass all asset tests in TECS based on participation codes. 
 
Households must provide verification of assets if questionable, in order to receive TANF Information and Referral Services. If assets are questionable based on sound judgment of the worker and the household fails or refuses to provide verification, the household is not eligible for TANF Information and Referral Services. As a result, the household is not categorically eligible.
 
If a household is not eligible for TANF I & R categorically eligible, verification of questionable assets is required. The worker must send Notice F240 – TANF Information and Referral Service Denial and Notice F201 – Failure to Provide Information to the Household.
 
	Exception:

Households with a member who is disqualified for work requirements (DW), a disqualified alien (DI), an ineligible ABAWD (DI), or failure to provide an SSN (DI) can remain TANF I & R eligible.  The household must pass the asset test, 200% gross income test and the 100% net income test.  Only the disqualified individual’s assets are applied to the asset test.

Automatic Income Test

TANF I & R households must pass the 200% gross income and 100% net income test (100% of the poverty level) based on household size.  If the household fails the 200% gross income or 100% net income test, the worker must deny the application using the F207 – Denial Excess Income notice.   When a household’s net income exceeds the level at which benefits are provided, the worker must deny the application using Notice F231 – Application Denied Denial Zero Benefit.
 
	Exception:

If the TANF I & R household fails the 200% gross income test and includes an elderly or disabled household member, the household is not considered a TANF I & R household and must be tested a second time under regular SNAP rules.  Regular SNAP rules require these households to pass the asset test and 100% net income tests only.

If the household fails the asset test, the worker must deny the application using the F208 – Denial Excess Assets.  If the household passes the asset test but fails the net income test, the worker must deny the application using the F207 – Denial Excess Income.

All eligible one and two person households are entitled to the minimum $14 monthly allotment.
 
Exception:

If due to proration during the initial month, the benefit is less than $14, no benefit is issued.

	Non-TANF I & R Households

Households with a member who is disqualified for fraud (DF) or a drug felony (DD) are not TANF I & R eligible.  The household must pass the asset test, 130% gross income test and 100% net income test.  All household members’ assets are applied to the asset test.

Recertification 430-05-35

4.	430-05-35-40 – Mandatory Verification.  Added additional clarification to treatment of tips, commissions, bonuses or incentives to item number 5 – Income.

	5.	Income:

a.	Changes in the source of income must be verified.
b.	The unearned income for all household members must be verified.
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.	

A full month's earned and unearned income from the base month or month or month of recertification if available must be verified and used.  If a pay stub is missing, year to date totals can be used to calculate the income.

If all income for the month of recertification is verified, 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 verified and used.
For all cases where income (both earned and unearned) is received either weekly or biweekly, income must be converted for benefit determination.

Biweekly is defined as receiving earnings every two weeks.  
 		
Example:

Individual receives a paycheck every other Monday.  
 
To convert weekly earnings, total the weekly checks and divide by the number of checks (4 or 5) to arrive at the weekly average.  The weekly average is then multiplied by 4.3.
 
To convert biweekly earnings, total the biweekly checks and divide by the number of checks (2 or 3) to arrive at the biweekly average.  The biweekly average is then multiplied by 2.15.
 
Exceptions:

1.	Income conversion does not apply to self employment income.
2.	Income will not be converted when it is known the household will not receive the income on each of the weekly or biweekly pay dates.
3.	Income conversion does not apply to child support income as this income is base month budgeted.

If tips, commissions, bonuses or incentives are paid weekly or biweekly and are included in the gross income on the weekly or biweekly paycheck or pay stub, they are converted.
 
If tips, commissions, bonuses or incentives are paid weekly or biweekly and are included on the paycheck or pay stub, but not in the gross income and the paychecks are received weekly or biweekly, they must be added to the gross income and converted.
 
If tips, commissions, bonuses or incentives are not included in or on the paycheck or pay stub and are not paid weekly or biweekly, they are not converted.  The tips, commissions, bonuses or incentives must be counted separately as earned income.
 
Examples:

1.	Cash tips received daily and reported monthly are not converted.

2.	Tips paid in a separate check that is not paid weekly or biweekly are not converted.

3.	Household files a recertification for June benefits on May 17th and no interview is required.  The household reports they continue to be paid every week on Fridays and verifies all earnings received in April and May to the date of recertification.  April earnings were received on the 1st, 8th, 15th, 22nd and 29th. 

The household received paychecks on May 6th and 13th and will receive additional paychecks on May 20th and 27th.  The April 1st, 8th, 15th, 22nd, and 29th paychecks must be totaled, divided by five and then multiplied by 4.3.  This amount must be used for June.   

If the household anticipates a change in May income, the change must be verified and May income used for June.

4.	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.  

5.	Household files a recertification for February benefits on January 15 and is interviewed on January 17.  At the interview the household reports they are paid weekly, however, they only received three of four weekly paychecks in December due to the weather.  The household does not know if they will receive all of the weekly earnings in February.  Since it is not known whether the household will receive weekly earnings in February, the income must be converted.  The three checks from December must be divided by three and then multiplied by 4.3.

Work Requirement for Participation 430-05-40 

5.	430-05-40-50 – Able-bodied Adults Without Dependents (ABAWD).  ABAWD provisions are reinstated effective October 1, 2010.  This is a change in policy effective for all new applications or reviews received on or after October 1, 2010.  All ABAWDS in open ongoing cases will remain exempt until their next review.  

Able-bodied Adults Without Dependents (ABAWD) 430-05-40-50
 
As a result of the American Recovery and Reinvestment Act, all counties are exempt from the ABAWD provisions through September 30, 2010.
 
This is an additional program requirement for non-exempt able-bodied adults without dependents. An individual who is not ABAWD exempt is entitled to benefits for three months (consecutive or otherwise) during a 36 month period. 
 
Any zero, prorated, or suspended benefit will not count as an ABAWD month.
 
Exception:

If a household receives a full month’s benefit that after recoupment results in a zero benefit, the month counts as an ABAWD month.

6.	430-05-40-50-15 – 36 Month Time Frames.  The 36 month rolling calendar was reset to start with October 1, 2010 for all cases.  Also, updated all of the examples with current dates.

	36 Month Time Frames 430-05-40-50-15
 
The 36 month time frame is established on a rolling calendar and is used for all non-exempt individuals.
 
36 Month Look Back Period
A worker must look back 36 months beginning with the month prior to the current month to determine if and when any ABAWD months were used.
 
Start Date
The 36-month rolling calendar begins for an individual with the first ABAWD month within the 36-month look back period. The 36-month rolling calendar progresses with each passing month and continues uninterrupted even while the individual is not participating.  The 36-month rolling calendar was reset to start October 1, 2010 for all cases as a result of the American Recovery and Reinvestment Act.  
 
Examples:

1.	An individual applies on November 1, 2013 March 1, 2000 and is not exempt from the ABAWD provisions. The worker must look back from October 2013 February 2000, 36 months (November 2010). The individual used the first ABAWD month in January 2011 June 1997, therefore, January 2011 June of 1997 starts the 36-month period (rolling clock). The 36-month period would end December 2013 June 2000. 

If January 2011 June 1997 was the only ABAWD month used, the 36-month period ends December 2013 June 30, 2000. The individual could be eligible for two ABAWD months, November and December 2013 March through June 2000. 

If the individual received ABAWD months in October, November and December 2010 June, July, August 1997, the 36-month period ends September 2013 June 30, 2000. The individual is not eligible for additional ABAWD months until November 2013 July 2000. The worker would explore possible eligibility for the extended three-month benefit period. 

2.	An individual applies March 1, 2011 2000, and is not exempt from the ABAWD provisions. The individual received ABAWD months in October 2010, December 2010 and February 2011 June, September, and December 1997. The 36-month period starts October 2010 and ends September 2013 June 1997 and ends June 30, 2000. 

The individual has already received three ABAWD months and is not eligible. The worker would have to explore possible eligibility for the extended three-month benefit period. 

If the individual is not eligible for the extended three-month benefit period, the application must be denied. 

This individual would be eligible for November 2013 July 2000 when October 2011 June 1997 drops off. If the individual applied in November July the application would be approved for November July and closed as the individual is not eligible for December August. 

This individual would again be eligible for January 2014 October 2000 when December 2010 September 1997 drops off.

This individual would again be eligible for March 2014 January 2001 when February 2011 December 1997 drops off. 

The individual has received three ABAWD months (November 2013, January 2014 and March 2014 July 2000, October 2000 and January 2001) for the new 36-month period from November 2013 – November 2016 July 2000 to July 2003.

7.	430-05-40-50-25 – Extended Three Month Benefit Period.  Added clarification the extended three months may be granted if a case was closed or denied for failure to comply with the ABAWD work requirements.     

Extended Three Month Benefit Period 430-05-40-50-25
 
1.	Once an individual has received the three ABAWD months and the case is closed or denied for failure to comply with the ABAWD work requirements or the individual failed to file a review recertify, extended benefits may be granted for three full consecutive months if the individual:

a.	Did not voluntarily quit a job without good cause in the last 30 days and has worked 80 hours or more in any 30 consecutive day period. The individual need not be currently employed and the 80 hours includes volunteer and in-kind work. 

Volunteer work is when arrangements have been made with a school, hospital, public service agency, library, nursing home, church, or other community organizations.

In-kind work is when an individual works in exchange for goods or services (e.g. working in exchange for free or reduced rent).

b.	Participated in and complies with the requirements of a work program for 80 hours or more in any 30 consecutive day period.

c.	Participated in and complies with the requirements of a SNAP Workfare Program (none in North Dakota).

d.	A 30-day period means any 30 consecutive days since the individual was closed or denied for failure to comply with the ABAWD requirements or failed to file a review. It does not have to be a calendar month - it may be a combination of two months. The employment rule of at least 80 hours in a 30-day period means the individual must have worked 80 hours in any 30-day period before eligibility may be reestablished. 

The worker must enter the code of EE (exemption extension) on the ABRE screen in TECS. 

Example:

An individual received the three ABAWD months in April, May and June and the case closed June 30 for failure to comply with the work requirements did not recertify. On August 16, the individual reapplies and verifies having worked 80 hours in a consecutive 30 days and lost the employment through no fault of their own. This individual is eligible for the extended three-month benefit period, September, October, and November.  August does not count as one of the three months due to proration. 

2.	Once an individual has received the three ABAWD months, and it has been determined that the individual quit a job without good cause, the individual does not qualify for the extended three month benefit period. 

Example:

An individual certified for March through August received the three ABAWD months in April, May and June and during the month of June found employment. The individual failed to file a review recertify for August July. On August 15, the individual quit this job and reapplies for SNAP benefits.  On October 15, the individual reapplies for SNAP and reports they quit this job on September 25.  The individual did not have good cause and a voluntary quit penalty is applied. The job does not make this individual eligible for the extended three-month benefit period because the voluntary quit penalty must be applied. 

If the individual would have applied for benefits October 28 1 (30 days or more after the job quit), the individual would qualify for the extended three month benefit period because the voluntary quit penalty no longer applies and the individual had 80 hours of employment in a 30 day period after receiving the initial three ABAWD months.

3.	The extended three month benefit period can only be approved once in a 36-month period. The three months run consecutively.  Once approved, the individual has received the extension regardless of whether they receive benefits for all three months. Case closings, disqualifications or zero benefits will not stop the three month count. 

Example:

An individual received the three ABAWD months in April, May and June and closed June 30 for failure to comply with the ABAWD work requirements did not recertify. On August 16, the individual reapplies and verifies having worked 80 hours in 30 days and lost the employment through no fault of their own. This individual is eligible for the extended three-month benefit period, September, October, and November. 

On September 10 the individual reports new employment and income that exceeds the GIL, they expect the income to continue and their case closed September 30 for excess income. provides a change report with attached verification of new employment and requests case closure September 30. Even though the individual is no longer receiving benefits, the extended three month benefit period continues through the month of November. This individual would not be eligible for an additional extended three-month benefit period during this individual's 36-month period. 

8.	430-05-40-55-10 – Exemptions from BEST.  Added additional exemptions and also incorporated exemptions that were included in IM 5081.  This is a change in policy effective for all new applications or reviews received on or after October 1, 2010. 

	Exemptions from BEST 430-05-40-55-10
 
The following individuals are not required to participate in BEST (TECS coding on the WORE screen is listed):

1.	Individuals who do not physically live in the city limits of Bismarck or Fargo.  live in any of the operational counties.

2.	Individuals exempt from work registration. (EX)

3.	Migrants in the job stream. (GE)

4.	Individuals who do not have adequate transportation to the Employment Communication Workshop site. (LT)

	4.	Individuals who have a child under the age of 12 in the home.

5.	Individuals who lack adequate child care, as determined by the worker, for children between the ages of six and 12. (CC)

5.	Individuals exempt for good cause as determined by sound, professional judgment of the worker.  The case must be thoroughly documented to support the exemption.  (GC)

6.	Individuals who are under the age of 18 or age 50 or older.

7.	Limited and non-English speaking individuals.

8.	Individuals who are participating in the Parental Responsibility Initiative for the Development of Employment (PRIDE) Program.

9.	Individuals where public transportation is limited because of where and when the public transportation is available.

10.	Individuals with a temporary disability such as a broken leg, illness, etc.

11.	Pregnant women.

12.	Individuals who do not have a fixed mailing address.

13.	Individuals who have been referred and the BEST coordinator determines the referral is not appropriate.  Justification for the exemption will be provided to the eligibility worker in writing.  

Exemption reasons four through six must be reviewed at least every three months.

Assets 430-05-45

9.	430-05-45-05 – Types of Assets.  Included TANF I & R as a household whose assets are not counted.  

	Assets 430-05-45
 
Types of Assets 430-05-45-05
 
In determining the assets of a household, the following must be included and documented in detail.
 
Assets of a categorically eligible and TANF I & R  households are not counted but must be documented and verified if questionable.
 
Liquid Assets

Types of liquid assets include but are not limited to the following:

•	Cash on hand.
•	Money in checking or savings accounts.
•	Stocks or bonds.
•	Lump sum payments (counted as assets in the month in which they are received unless excluded by Federal law).
 
To arrive at the countable cash value for any account or plan that applies penalties for early withdrawals, subtract the amount of the penalty (if any) from the value of the account or plan. 
 
If the account or plan has been used as collateral or if a lien has been placed on the account or plan, only the equity value available is counted.
	 
Money in a checking or savings account must not be counted as income and as an asset in the same month. Workers must exclude any current month's income deposited in a checking or savings account.
 
If a check has been written and sent to the payee, even if it has not yet been cashed, the money is not available for other purposes and is deducted from the account balance. The check register is used as verification of outstanding checks.
 
Non-Liquid Assets
 
Types of non-liquid assets include but are not limited to the following:

•	Personal property
•	Licensed and unlicensed vehicles 
•	Buildings
•	Land
•	Recreational properties
 
The value of non-exempt assets (except for licensed vehicles not used for income producing purposes) is the equity value. The equity value is the fair market value less the amount owed.

10.	430-05-45-10-35 – Fair Market Versus Equity Value.  Updated the vehicle values in the examples. 	

	Fair Market Value Versus Equity Value 430-05-45-10-35
 
When a vehicle is assigned both a fair market value in excess of $4,650 and an equity value, only the greater of the two amounts is counted as an asset.  If a non-exempt vehicle has no excess fair market value, then only the equity value is counted.
 
First the system will apply $4,650 to all vehicles that are not coded as totally excluded vehicles.
 
The system looks for all vehicles that are coded with partial exemptions and applies any excess over $4,650 to the asset limit. The equity value does not apply to partially exempt vehicles. 

Examples:

1.	Household consists of a single individual who owns three vehicles.

Vehicle A:	$5,600   Fair Market Value - $950 (AM)
- 4,650   ($5,600 1,000 equity value)
   					  $ 950

Vehicle B:	$4,900   Fair Market Value - $250
- 4,650   ($4,000 200 equity value)
  $ 250

Vehicle C:	$4,750   Fair Market Value - $100
- 4,650   ($400 equity value)
  $ 100

Vehicle A has a partial exemption code of (AM) and $950 is applied toward the household asset limit. The $5,600 1,000 equity value does not apply to this vehicle.

The system will compare Vehicle B's excess fair market value of $250 and the equity value of $4,000 200 and apply the greater of the two to the asset limit ($4,000 250).

The system will compare Vehicle C's excess fair market value of $100 and the equity value of $400 and apply the greater of the two to the asset limit ($400).  This vehicle should be coded IA and totally excluded as it would net less than $1,500 if sold.

The system will apply $5,350 1,600 to the asset limit as follows: $950 for Vehicle A, $4,000 250 for Vehicle B, and $400 for Vehicle C.
 
2.	Household consists of a single parent with two small children. The household is receiving TANF and has two vehicles.

Vehicle A:	$10,000   Fair Market Value - $5,350
 - 4,650   ($900 equity value)
 $ 5,350

Vehicle B:	  $4,900   Fair Market Value - $250
  - 4,650   ($3,500 1,000 equity value) 
   $ 250

As this household is in receipt of TANF, the household is exempt from the asset test.

If this were not a categorically eligible household, the system applies the excess fair market value of $5,350 to the asset limit from Vehicle A. This vehicle should be coded IA and totally excluded as it would net less than $1,500 if sold.

The system will compare Vehicle B’s excess fair market value of $250 and the equity value of $3,500 1,000 and apply the greater of the two to the asset limit ($3,500 1,000).

The system applies $8,850 6,350 to the asset limit as follows: $5,350 for Vehicle A and $3,500 1,000 for Vehicle B. This case would not be eligible based on excess assets.
 
11.	430-05-45-25 – Asset Limits.  Included TANF I & R as a household whose assets are not counted.  

	Asset Limits 430-05-45-25
 
Eligibility will be denied or terminated if the value of non-excluded assets exceeds the following:

1.	$3,000 for all households containing an elderly (age 60 or over) or disabled member.
2.	$2,000 for all other households.
 
Categorically eligible and TANF I & R household members do not have to meet the asset limits.
 
Non-categorically eligible household members must meet the asset limits.
 
The household's assets at the time of the interview must be used in determining household eligibility. An application cannot be pended allowing the household the option of spending down assets. If a household is over the asset limit on the date of interview, the application must be denied. 

Income 430-05-50

12.	Income Anticipation 430-05-50-15-10.  Added additional clarification to the treatment of tips, commissions, bonuses or incentives.  

	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 (both earned and unearned) is received either weekly or biweekly, income must be converted for benefit determination.
 
Biweekly is defined as receiving earnings every two weeks.  
 
Example:

Individual receives a paycheck every other Monday.
 
To convert weekly earnings, total the weekly checks and divide by the number of checks (4 or 5) to arrive at the weekly average.  The weekly average is then multiplied by 4.3.
 
To convert biweekly earnings, total the biweekly checks and divide by the number of checks (2 or 3) to arrive at the biweekly average.  The biweekly average is then multiplied by 2.15.
 
Exceptions:

1.	Income conversion does not apply to self-employment income.

2.	Income will not be converted when it is known that a household will not receive the income on each of the weekly or biweekly pay dates.

3.	Income conversion does not apply to child support income as this is base month budgeted.
 
If tips, commissions, bonuses or incentives are paid weekly or biweekly and are included in the gross income on the weekly or biweekly paycheck or pay stub, they are converted.
 
If tips, commissions, bonuses or incentives are paid weekly or biweekly and are included on the paycheck or pay stub, but not in the gross income and the paychecks are received weekly or biweekly, they must be added to the gross income and converted.
 
If tips, commissions, bonuses or incentives are not included in or on the paycheck or pay stub and are not paid weekly or biweekly, they are not converted.  The tips, commissions, bonuses or incentives must be counted separately as earned income.
 
Examples:

1.	Cash tips received daily and reported monthly are not converted.

2.	Tips paid in a separate check that is not paid weekly or biweekly are not converted.

3.	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.

4.	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.  

5.	Ongoing household reports on June 5, that they will not receive all of their weekly paychecks in July as the company will be closed for one week.  Since this change will result in an increase in benefits, the F419 must be sent for verification.  If verification is provided, the actual anticipated income (not converted) must be used for July as the household will not receive income on each of their weekly pay dates.  

In August, the household is anticipating to receive all of their weekly pay checks.  Since converting the income will result in a decrease in benefits, the change to conversion must not be acted on until recertification.   

Deductible Expenses 430-05-55

13.	430-05-55-25 – Dependent Care Costs.  Added an age limit for child care deductions.  This is a change in policy effective for all new applications or reviews received on or after October 1, 2010.

	Dependent Care Costs 430-05-55-25
 
Households must verify current month dependent care expenses at initial application and review recertification. The out-of-pocket child care expense incurred by the household is an allowable child care deduction.  A deduction for care of a child or other aged or disabled dependent is allowed when necessary for a household member to:

•	Accept or continue employment.
•	Seek employment.	
•	Attend training or pursue education preparatory to employment.

Child care cost are allowable for children under age 16.  If a child turns age 16 during the certification period, the child care cost will continue to be allowed until the next review as this does not meet the criteria to decrease benefits.    

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 SNAP household.   
 
Example:

Grandma, mom and child are all one SNAP 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.   
 
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 SNAP 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 TANF household chooses the option of receiving a work related child care disregard from the TANF grant, SNAP 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.
 
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. 
 
When a child care assistance application is pending, allow the entire child care expense as a deduction until the certificate has been issued and the first child care assistance billing form is received.  When the certification has been issued and the billing form is received, the worker must act on the change based on simplified reporting requirements.
 
Examples:

1.	Ongoing simplified reporting household applies for Child Care Assistance and is issued a certificate on August 5, however no billing form has been received. The entire child care expense continues to be allowed for September as a deduction as a child care billing form was not received.  The household provides a child care billing form on September 17. Since the household’s out of pocket cost based on the sliding fee scale will result in a decrease in benefits, the entire child care expense continues to be allowed until review recertification.   

2.	New application for simplified reporting SNAP household and Child Care Assistance.  

If the Child Care Assistance certificate is issued and the billing form received prior to authorizing the SNAP case, the out of pocket costs based on the sliding fee scale are allowed as a deduction for SNAP.

If the SNAP case is authorized prior to the Child Care Assistance certificate being issued and/or the billing form being received, the entire out of pocket cost continues to be allowed.  Once the certificate is issued and the billing form received, the household’s out of pocket cost based on the sliding fee scale will result in a decrease.  The entire child care expense continues to be allowed until review recertification.  
 
At review 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 SNAP benefits, it must be verified before it can be allowed. 
 
For simplified reporting households, changes resulting in a decrease must not be acted on until review recertification.
 	
If the household fails to complete a redetermination for child care assistance, the entire out-of-pocket costs must be anticipated.

14.	430-05-55-40 – Shelter Costs.  Added additional expenses that would entitle the household to the telephone standard.  This is a change in policy effective for all new applications or review received on or after October 1, 2010.

d.	Telephone Standard (TL):

Household not entitled to the HL SU, the LU SA, or MU that incur telephone expenses only are entitled to the Telephone Standard (TL on the EXSA screen) of $38.00.  The cost of telephone service for a land-line, cellular service or voice over internet protocol entitle the household to the telephone standard.  Cellular service that entitles the household to the standard includes monthly service fees or pre-paid service cards.  A statement with monthly service fees or a receipt for pre-paid service cards will serve as verification.  The household must incur the basic service fee for one telephone to be entitled to the telephone deduction.  The basic service fee for a cellular phone is allowable if that is the only phone the household has. 

Simplified Reporting and Processing Changes 430-05-67

15.	430-05-67-05 – Simplified Reporting Requirements.  Changed this section to reflect both categorically eligible and TANF I & R households.

Simplified Reporting Requirements 430-05-67-05
 
All households are subject to simplified reporting requirements.  Simplified reporting households will be certified for 6 months with a recertification interview required at 12 month review.
 
Exception:

Simplified reporting households with all elderly or disabled members and no earned income will be certified for 12 months with an recertification interview required at 12 month review.  
 
All simplified reporting households will be authorized through for six or 12 months, whichever is appropriate.   

Exceptions:

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

2.	Households that contain an individual in an open TANF, including Diversion Assistance, Transitional Assistance, TANF Pay After Performance and TANF Kinship Care cases in Vision 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. 

To determine actual income, households must be advised to total their SNAP household’s income at the end of the month.  If new individuals are present in the home, their income must be included.  If individuals have left the home, their income is not included.  If the income of all those present exceeds the original gross income limit for the household size, then the household is required to report the income.
 
Exceptions:

a.	If at application or review recertification a household is categorically eligible or TANF I & R 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 or TANF I & R 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.

16.	430-05-67-15-10 – Changes Resulting in a Decrease in Benefits.  Added new criteria to decrease benefits for TANF I & R households who income exceeds 200% of poverty and households subject to the asset test that fail.  This is a change in policy that was incorporated as a mass change effective with the benefit month of October 2010.

Also added a new criteria for one-time medical expenses as a clarification of policy.  

	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 obtained or received from:

a.	TPQY
b.	SDX
c.	BENDEX
d.	SAVE information from the United States Citizenship and e.	Immigration Services (USCIS)
e.	IEVS UIB Alerts or UIB Interface

2.	When a new application for TANF, TANF Diversion or TANF Pay After Performance is approved in an ongoing SNAP case, the information used to determine the grant along with the grant must be acted on for SNAP regardless of the effect on the benefit. 

In an ongoing case, when changes are reported for TANF that result in a change in the TANF grant, the changes along with the change in the TANF grant must be acted on regardless of the effect on the benefit. 

3.	Household voluntarily requests case closure.

If another state calls or sends an e-mail that a household is applying in their state, the case must be closed for residency allowing for adequate notice.  
    
4.	Household income exceeds the 200% gross income limit for its household size.  Case must be closed for excess income with advance notice unless reported in writing and signed by the household.  

5.	Households reports actual base month income that exceeds the 130% 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.
	
If the household reports they anticipated their income to exceeds the 130% gross income limit, the household expects this income to continue and based on this income is not eligible for a benefit, the case must be closed based on client statement.

6.	Households subject to the asset test that fail the asset limit.  Case must be closed for excess assets with advance notice unless reported in writing and signed by the household.

7.	Household reports a change that brings an ABAWD’s hours below 20 hours weekly averaged monthly.

8.	A household member who has used their ABAWD benefit months (NE or EE).  

9.	Determination of an IPV including other disqualifications such as drug felonies or fleeing felons, or failure to comply with JOBS and BEST.

10.	The worker becomes aware of information from any source that all household members have died.  Adequate notice is required.  

11.	Household reports the addition or loss of a household member.

If the household reports that all household members have moved out of state, the case must be closed for loss of residency allowing for adequate notice.

If a household reports the addition of a household member who is receiving benefits in another SNAP case, the individual must be removed from the case before being added to the new case.  If removing the individual results in a decrease in benefits, a 10-day advance notice is required unless the change was reported in writing and signed by the household the individual is being removed from.  This could include a written and signed statement from the individual being removed if they are a responsible adult household member.     

12.	If a household chooses to have a one-time medical expenses used for the next month, the expense must be removed for the following month regardless of the effect on the benefit.  

13.	When household status changes from special to regular resulting in the loss of medical expense deductions and capped shelter costs as an individual is no longer disabled.

14.	When the household reports When the primary individual that is not the spouse dies, the case must be closed using the other reason (OT) code.  The remaining household members must reapply in order to continue to receive benefits.

If the primary individual moves out of the home, the remaining household members must be removed from the primary individual's case and reapply in order to continue to receive benefits.  The primary individual's case remains open unless it is determined the primary individual is ineligible. 

15.	When an error is made in a case and corrective action results in a future month decrease or allotment reduction due to an overpayment.

16.	When the worker sends the F814 – Required Verification to obtain verification needed to complete a claim, the F401 must be sent to close the case if the household fails to respond.

17.	When the household received a closing notice and later reports a change that results in continued eligibility, the change must be acted on regardless of the effect on the benefit.

18.	When a household refuses to cooperate with Quality Control.  Quality Control will notify the worker.  The worker must terminate the household’s eligibility.  A 10-day advance notice is required.  

19.	If at application or review recertification, a household verified a change for a future month, the change must be acted on whether it results in an increase or decrease in benefits.  

Applications and reviews recertifications cannot be pended for verification of a future change and the worker must not request future verification that is not required to process the application or review recertification.

Example:

Household files a review application recertification application  on August 10 for the benefit month of September. At the interview the household reports they signed a coaching contract to coach in November and December April and May, but does not provide the contract.  The income from the contract is not anticipated for November and December in April and May, as the contract was not verified.  The household must be informed they need to report if the income from the contract puts them over the gross income limit for their household size.  
The application cannot be pended for verification and the worker must not ask for the contract, as the contract is not needed to process the application.

If the household provided verification of the contract at the time of the review recertification, the income must be anticipated when determining November and December April and May benefits, regardless of the effect on the benefit. 

If the reported change meets the criteria to decrease benefits, 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.
 
If a household reports a change that meets the criteria to decrease benefits and other changes, the worker must use the benefit calculator to determine whether the multiple changes result in an increase or decrease in benefits.
 
If the multiple changes result in an increase in benefits, verification must be requested and all verified changes must be acted on.  
 
If the multiple changes result in a decrease in benefits, then only the change(s) that meet the criteria to decrease benefits are acted on.  The change(s) that meet the criteria to decrease benefits may then result in a decrease, increase or no change in benefit.  The worker must document other changes were not acted on as they resulted in a decrease in benefits and did not meet the criteria.
 
If the multiple changes result in no change in benefits, then only the change(s) that meet the criteria to decrease benefits are acted on.

17.	430-05-67-45-15 – Change in Reporting Requirements from Simplified Reporting to Simplified Reporting for Categorically Eligible Household Over Gross Income.  Changed this section to reflect both categorically eligible and TANF I & R households.

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 or TANF I & R 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– Household Over Gross Income Limit and Eligible – Reporting Requirement SR Requirements for CE HH Over Gross Income.  This notice informs the household they must complete a recertification review form and the only reporting requirement is to report a change in work hours that bring an ABAWD below an average of 20 hours weekly. 

18.	430-05-67-45-20 – Change in Reporting Requirements from Simplified Reporting for Categorically Eligible Household Over Gross Income to Simplified Reporting.  Changed this section to reflect both categorically eligible and TANF I & R households.

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 or TANF I & R 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 – Household Under Gross Income Limit Reporting Requirement 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 Notice F742 – Household Under Gross Income Limit Reporting Requirement 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.