NORTH DAKOTA DEPARTMENT OF HUMAN SERVICES
BISMARCK, NORTH DAKOTA
March 11, 2009

IM 5063

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

FROM:	Tove Mandigo, Director, Economic Assistance Policy
		Maggie Anderson, Director, Medical Services Division

SUBJECT:	New Source Income in IIM Accounts

PROGRAMS:	All

EFFECTIVE:	Immediately 

RETENTION: 	Until Manualized

SECTIONS AFFECTED:	
TANF: 	400-17-65 - Disregard of Certain Unearned Income 
Child Care Assistance: 	400-26-20-01-07 – Treatment of Unearned Income 
SNAP:  		430-05-50-30 – Income Excluded by Federal Law
Medicaid:		510-05-85-15 - Unearned Income
Healthy Steps:		510-07-40-20 - Unearned Income
LIHEAP		415-25-05-30 - Income Not Counted 

When new source income is deposited into an individual’s IIM account, the countable amount for all programs will be determined as follows:  

Verification of the IIM account must be obtained for the most recent FULL 12 month period through one of the three options currently identified in policy.  Once verification of the IIM account is received, the worker will subtract any deposits that cannot be counted as IIM income, such as inheritances, VA, SSA, SSI, gaming profits, etc., based on current policy.   Once those deposits have been subtracted, take the most current months, or an average if received for multiple months, new source income amount and multiply by 12.  That amount must be added to all countable deposits for the twelve-month period (excluding the new source income deposited into the IIM account), deduct the $2000 disregard, and then divide the remaining balance by 12 to determine the monthly countable unearned income.   

Example #1:  In 02/2009, the Eligibility Worker learns that the individual began receiving a new source income in 02/2009 through their IIM account.  The Eligibility Worker will request verification of the IIM account for the period of February 1, 2008 thru February 28, 2009, the most recent FULL 12 month period, plus the current month of 02/2009, to capture the amount of the new source income.  

Reviewing the ledger, the Eligibility Worker would determine which income is countable.  The new source income deposited in February was $850.  Multiplying $850 by 12 equals $10,200.  The countable income, not including the new source income, for the FULL 12 month period (February 1, 2008 thru January 31, 2009) totals $1,500.  The total of income to be considered for the 12-month period is $11,700 ($10,200 plus $1,500).  After deducting the $2000 disregarded amount from $11,700, $9,700 must be annualized and the monthly amount of $808.33 counted as unearned income. 

Example #2:  A new application is received in July and the Eligibility Worker requests verification of the IIM account for the period of July 1, 2008 thru June 30, 2009, the most recent FULL 12 month period.

Reviewing the ledger, the Eligibility Worker determines a new source income began to be deposited in April 2009.  The Eligibility Worker would first determine which income is countable.  The new source income deposited in April was $850, in May was $790 and in June was $825. The three months of the new source income would be totaled and divided by 3 and the average would be projected for a 12 month period ($2,465 divided by 3 equals $821.67).  Multiplying $821.67 by 12 equals $9,860.04.  The countable income, not including the new source income, for the 12 month period totals $87.29.  The total of income to be considered for the 12-month period is $9,947.33 ($9860.04 plus $87.29).  After deducting the $2000 disregard from $9,947.33, $7,947.33 must be annualized and the monthly amount of $662.28 counted as unearned income.

TANF
TANF participants are required to report all changes in household circumstances within five (5) calendar days of such change.  However, if the individual fails to report the new source income, but the county becomes aware of the income, the countable amount must be determined based on the policy above.

Once a determination of the countable income has been made, TANF must begin counting the income when received and budgeted retrospectively.

Child Care Assistance
Once a determination of the countable monthly income has been made, the monthly income must be counted in determining eligibility for Child Care Assistance.

SNAP
SNAP households are only required to report a new source of income if that income along with all other income results in the household exceeding the gross income limit for the household size.  If the household does report a new source of income, the change must not be acted on until recertification unless the change results in an increase in benefits.  The IIM account income must be verified at every recertification.   

MEDICAID
For cases in which all eligible members are Continuously Eligible the IIM accounts must be verified at every redetermination, as with any other income source.  For all other Medicaid cases, the recipient has ten days from the date they become aware of a new source of income to report that change to the county agency.  The county agency has ten days in which to act on a reported change.  The county agency must allow ten days for an advance notice before any adverse action can be taken on a case (unless the change is one of the exceptions to the Ten-Day Advance Notice).  

HEALTHY STEPS
For cases that have both Medicaid and Healthy Steps individuals, follow the Medicaid rules above.  If all the individuals in the case are Healthy Steps recipients, then the IIM accounts must be verified at every redetermination, as with any other income source.