NORTH DAKOTA DEPARTMENT OF HUMAN SERVICES
Bismarck, North Dakota
December 31, 2003
IM 4941

TO:	Directors, County Social Service Boards
	Regional Representatives
	Quality Control Reviewers	

FROM:	Blaine L. Nordwall, Director, Economic Assistance Policy

SUBJECT:	Treatment of Income 430-05-30-55-10 and 
	Special Procedures for Expediting Services 430-05-20-50-15-05

PROGRAMS: 	Food Stamp Program

RETENTION:	Until Manualized

The following change is being made to the Installment Contract and Contract for Deed policy effective January 1, 2004 for all new applications and recertifications received on or after that date.  For ongoing cases, the changes must be made when the case is next reviewed or at the next recertification, whichever occurs first.  

Installment Contracts or Contracts for Deed

Payments a household is receiving from an installment contract or contract for deed are counted as unearned self-employment income.  These payments must be prorated over the period of time they are intended to cover.  

To arrive at the countable unearned self-employment income, subtract any allowable costs of doing business.  Allowable costs of doing business include but are not limited to the principle and interest portion of the original mortgage or loan, taxes and insurance.  The remaining amount is the countable unearned self-employment.  If the allowable costs of doing business exceed the payment, the loss can be used to offset other self-employment income.  

The following change is being made to the Postponed Interview/Verifications policy effective January 1, 2004 for all new applications received on or after that date.

Postponed Interview/Verifications

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.
 
Exception:
If the household failed to report, a claim must be established.

Claims will only be completed if a household fails to report information.  If a household reports information that is used to process benefits within the expedited timeframe and after verifications are received, the information used to process benefits is incorrect, a claim must not be completed.  

If you have any questions, please contact your regional representative.