NORTH DAKOTA DEPARTMENT OF HUMAN SERVICES
BISMARCK, NORTH DAKOTA
May 9, 2006

IM #4982

TO:		County Social Service Directors
Economic Assistance Policy Regional Representatives
Economic Assistance Policy Quality Control Reviewers

FROM:	Blaine Nordwall, Director, Economic Assistance Policy

SUBJECT:	Treatment of Utility Costs for Self-Employment 

PROGRAMS:	Food Stamps and Child Care Assistance

RETENTION: 	Until Manualized

Food Stamps - Treatment of Expenses 430-05-30-55-15

Child Care Assistance – Treatment of Expenses 400-26-20-05-03

The following change is effective June 1, 2006 for all new applications received on or after that date.  For recertifications and ongoing cases the change must be made for the benefit month of July.  
•	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.