Par.1.  Material Transmitted and Purpose – Transmitted with this Manual Letter are changes to Service Chapter 430-05 – Food Stamp Policy.  This incorporates changes made with AMENDED IM 4987 – Exclusion of Combat Pay, AMENDED IM 5029 – Iraqi Afghani Special Immigrant Policy, IM 5034 – ABAWDS Waivers, IM 5035 – Changing from Change Reporting to Simplified Reporting, IM 5045 – Annual Changes in the Food Stamp Program, IM 5048 – Census Income and IM 5050 - Best Program Participant Reimbursements.

	Par. 2. Effective Date – Effective December 1, 2008, all households are subject to simplified reporting requirements.  Changes to rescind change reporting requirements are effective for all cases on December 1, 2008.  

All other changes are effective for all new applications and recertifications received on or after December 1, 2008.  For ongoing cases the change must be made when the case is next reviewed, at six-month report or at the next recertification, whichever occurs first, unless otherwise noted.

General Information

1.	430-05-05-25-05 – Filing a Complaint.  Changed this section to include that complaints can be filed verbally or in writing.  Also, updated the address for the USDA, Office of Civil Rights and included their telephone numbers.

Filing a Complaint 430-05-05-25-05
 
Any individual who expresses an interest in filing a discrimination complaint must be advised of their right to file a complaint, verbally or in writing, with either FNS or the Civil Rights Officer, and of information necessary for investigation. If a county receives a complaint based on alleged discrimination, the complaint must be forwarded to one of the following the:

•	Secretary of USDA, Director, Office of Civil Rights
Room 326 – W, Whitten Building, 
1400 Independence Ave. SW
Washington, DC 20250-9410
(202)720-3808 (TTY) or
800-795-3272 (voice)

or

Civil Rights Officer
North Dakota Department of Human Services
600 E. Boulevard, Bismarck, ND 58505-0250 
 
A complaint must be filed within 180 days of the alleged discrimination.
 
An individual may file a written complaint with:

•	any county office

•	Civil Rights Officer

North Dakota Department of Human Services 
600 E. Boulevard Ave Dept. 325
Bismarck, ND 58505-0250

•	Food Stamp Program

North Dakota Department of Human Services
600 E. Boulevard Ave Dept. 325
Bismarck, ND 58505-0250

•	Regional Administrator, FNS
United States Department of Agriculture
Mountain Plains Region
1244 Speer Blvd.
Denver, CO 80204

•	USDA, Director, Office of Civil Rights

Room 326 – W, Whitten Building
1400 Independence Ave. SW
Washington, DC 20250-9410

2.	430-05-05-30 – Program Complaints.  Removed the national office address as program complaints are no longer processed at the national office.

	Program Complaints 430-05-05-30
 
Program complaints (other than discrimination) from participants, potential participants, or other concerned individuals or groups may be filed with any county office; State Food Stamp Office, North Dakota Department of Human Services, 600 E. Boulevard Dept. 325, Bismarck, ND 58505-0250; Regional Administrator, Food and Nutrition Services, United States Department of Agriculture, Mountain Plains Region, 1244 Speer Boulevard, Denver, CO 80204.; or Family Nutrition Programs, Food and Nutrition Services, United States Department of Agriculture, Washington, DC 20250.
 
Complaints regarding such areas as processing standards and service to participants and potential participants would generally be handled under this complaint procedure.  This does not include complaints alleging discrimination on the basis of race, color, national origin, sex, religion, age, disability or political beliefs (protected classes).  These must be files as a discrimination complaint.  
 
The county must maintain a log of all program complaints.  The log must contain the date the complaint was received, description of the complaint and how the complaint was resolved.  
 
The State Office will review the log of program complaints at least annually to assess whether patterns of problems may be present and take corrective action where needed.  The results of this review will be included in the State Quality Assurance Plan.  
 
Definitions 430-05-10

3.	430-05-10 – Definitions.  Removed the definition for Change Report Form.

Application Processing 430-05-20

4.	430-05-20-30 – Automatic Notices.  Removed the X420 – Change Reporting Requirements automatic notice as this notice will end 11/30/08.

5.	430-05-20-45-15 – Things to do Before the Interview.  Removed the Change Reporting Information Fact Sheet and the Change Report Form as items to give to the household.

6.	430-05-20-50-15-10 – Length of Certification Period.  Changed the policy that required household’s entitled to expedited service with postponed verifications be change reporting as all households are subject to simplified reporting requirements.  

	Length of Certification Period 430-05-20-50-15-10
 
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 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 all postponed verifications have been provided. 

Exception:

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

Benefits for the second month must be issued no later than the 5th working day from the date the verifications are received, or the 1st of the second month, whichever is later.  

Example:

A household applies on March 16 and is certified for the months of March and April.  Benefits for the month of March must be available to the household by March 23.  Benefits for the month of April must not be issued until all postponed verification has been obtained.  April benefits are issued no later than the 5th working day from the date the verifications are received or April 1, whichever is later.  

If postponed verifications are not received by April 30, April benefits are not issued and the case will close March 31.  The system automatically closes with a certification ending reason.  

When certified for the month of application and the following month, the worker must send notices F101 - Expedited FS Waived 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 all postponed verification has been obtained. July benefits are issued no later than the 5th working day from the date verifications are received or July 1, whichever is later.

If the 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 simplified 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.

7.	430-05-20-80 – Categorical Eligibility.  Changed the minimum benefit amount for one and two person households.  The minimum benefit was indexed as part of the 2008 Farm Bill and will change each year as part of the cost of living adjustments.  This supersedes IM 5045.  Also, included Transition Assistance and Kinship Care as households in receipt of TANF and corrected what is used to determine categorically eligible households in TECS.

	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.

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.
 
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 types of TF and SI on the UNIN screen are used to determine categorical eligibility in the TECS system.  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 $14 $10 monthly allotment.

Exception: 

If due to proration during the initial month, the benefit is less than $14 $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.

8.	430-05-20-85 – TANF Information and Referral Services.  Changed the minimum benefit amount for one and two person households.  The minimum benefit was indexed as part of the 2008 Farm Bill and will change each year as part of the cost of living adjustments.  This supersedes IM 5045. 

9.	430-05-20-95 – Certification Periods at Application.  Changed the certification period timeframe assigned at application.  

	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 will be certified for 6 months with a recertification interview required at 12 months. 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.  
 
Exception:

Simplified reporting households with all elderly or disabled members will be certified for 12 months with a recertification interview required at 12 months.  Migrant and seasonal worker households must be certified for no more than six months.  

	Household’s with Special Circumstances

10.	430-05-30-10 – Drug Addiction/Alcohol Treatment/Rehabilitation Program.  Removed the requirement to provide an individual leaving a Drug Addiction/Alcohol Treatment/Rehabilitation Program an SFN 378 – Change Report Form.  

11.	430-05-30-15 – Group Home Living Arrangement.  Removed the requirement to provide an individual leaving a Group Home an SFN 378 – Change Report Form.

12.	430-05-30-30 – Companion Household.  Updated the Gross Income Limits for Companion Households.  This supersedes IM 5045.

	Recertification

13.	430-05-35-05 – Recertification Application.  Changed the requirement to complete an interview on all recertifications, to completing an interview when required at recertification.  

	Recertification Application 430-05-35-05
 
Recertification (for all households) is determining continued eligibility based on circumstances anticipated for the certification period. 
 
To determine continued eligibility a household must:

•	File the recertification application SFN 407 - Recertification for Food Stamps or if a client is also on TANF and/or Medicaid, the Vision Redetermination form.  (If the household completes the SFN 405 - Application for Assistance during the recertification month, it must be accepted in place of the SFN 407).

•	Complete an interview, if required, and provide required verifications.
 
The date of a recertification application is the date the county receives a signed form. The completed form must be filed in the last month of the current certification period. 
 
Example:

If a household's certification period expires at the end of March, the household must file the recertification application for April by March 31.
 
If a recertification application is not filed in the last month of the certification period, the case will automatically go to close in TECS. 
 
A worker must approve or deny a recertification application.

14.	430-05-35-15 – Notice of Expiration of Certification.  Added the new X008 – Recertification Due with No Interview notice to this section and changed the current X004 to Recertification Due with Interview.  

	Notice of Expiration of Certification 430-05-35-15
 
TECS automatically sends Notice X004 - Recertification Due with Interview and Notice X006 - Food Stamp Notice of Required Verifications to the household 45 days prior to the expiration of the current certification period when an interview is required as part of the recertification process. 
 
Notice X004 informs the household of the following:

1.	When the certification period expires.

2.	That the county will schedule a face-to-face interview after the recertification application has been submitted.

3.	To complete a recertification form and submit it to the county.

4.	That the recertification form is mailed to them by the end of the 			month.

5.	The recertification form must be submitted by the 15th of the following month.
 
TECS automatically sends Notice X008 - Recertification Due with No Interview and Notice X006 - Food Stamp Notice of Required Verifications to the household 45 days prior to the expiration of the current certification period when there is NOT an interview required as part of the recertification process. 
 
Notice X008 informs the household of the following:

1.	When the certification period expires.

2.	That they are NOT required to complete an interview as part of the recertification.

3.	To complete a recertification form and submit it to the county.

4.	That the recertification form is mailed to them by the end of the 			month.

5.	The recertification form must be submitted by the 15th of the following month.

Notice X006 informs the household of the following:

1.	The verification requirements the household must meet as a part of the application process.

2.	The county responsibility to assist the household in obtaining required verification provided the household is cooperating with the county.
 
15.	430-05-35-20-10 – Timely Application for Recertification.  Changed the requirement to complete an interview in order for a recertification to be considered timely, to completing an interview only when required.  Also, corrected the example for expedited households certified for two months that timely reapply for recertification.  
 
	Timely Application for Recertification 430-05-35-20-10
 
A recertification application is considered timely when it is filed by the 15th day of the last month of the certification period and the following completed by the last day of the household’s current certification period.
 
1.	An interview completed if required; and

2.	All required verifications received.
 
When all of these conditions are met, eligibility must be determined by the end of the current certification period for the new certification period and the appropriate notice sent by the last day of the certification period. 
 
Exceptions - Households Assigned One or Two Month Certification Periods
 
Households certified for one month, and households certified for two months when the recertification application is processed in the second month, must have 15 days from the mailing date on Notice F802 - Food Stamp 1 or 2 Month Certification/Expiration Notice to timely file a recertification application. 
 
If the household is eligible, benefits must be made available no later than 30 days after the last issuance. This could include a recertification application that is received after the household's current certification period has expired.
 
Example - One month certification period assigned:

A household was certified for May on May 10 and issued May benefits on May 11. Notice F802 dated May 11 was sent to the household. The household timely reapplies for June (prior to May 26) and is found eligible. June benefits must be made available to the household no later than June 10 (30 days after the last issuance). 
 
Example - Two month certification period assigned:

A household was certified for April and May on May April 25 and issued benefits for April and May on May on April 26 with waived verification.  Notice F101 – Expedited Food Stamp Application Waived Verification and F802 dated May April 26 was were sent to the household.  The household provides the postponed verification on May 7.   May benefits must be issued by May 13.  Case closed May 31. 

The household timely reapplies for June within 15 days (on or before prior to June May 10) and is found eligible. June benefits must be made available to the household no later than June 13 26 (30 days after the last issuance) and are not prorated. 

The worker must revert the case to open, NEXT to CLIR and use function 3, enter the case, office, unit and caseload number and enter off the screen.  In this instance, the worker must register the recertification application with a benefit start date of June 1 on the REAP screen.

16.	430-05-35-20-15 – Late Application for Recertification.  Changed the requirement to complete an interview, to completing an interview only when required.  

	Late Application for Recertification 430-05-35-20-15

If a household files a recertification application after the 15th day of the last month of the certification period, it is considered a late recertification. If the an interview is required and completed, and all verifications are received prior to the end of the household’s current certification period, the worker has 30 days from the date of the recertification application to process it.
 
If the an interview is required and completed, and/or verifications are received after the end of the household’s current certification period, delays in processing applies.

17.	430-05-35-30 – Interviews.  Changed the requirement to complete an interview on all recertifications, to completing an interview when required at recertification.  

	Interviews 430-05-35-30
 
All households with an interview required at recertification, including those submitting recertification applications by mail, must have face-to-face interviews with a worker prior to recertification. An interview must be conducted at the food stamp office or other mutually acceptable location (including a household’s residence – this must be scheduled in advance). The primary purpose of interviewing a household is to obtain and furnish information. The interview must be conducted as an official and confidential discussion of household circumstances. The individual’s right to privacy must be protected during the interview. Facilities must be adequate to preserve the privacy and confidentiality of the interview.
 
The individual interviewed may be the head of household, spouse, any other responsible member of the household, or an authorized representative. The worker must review the information that appears on the recertification application, explore and resolve inconsistent and incomplete information. 
 
Households must be advised of their rights and responsibilities during the interview, including the appropriate processing timeframes and the household’s responsibility to report changes.
 
Households that are applying for or receiving TANF must be advised that time limits and other requirements that apply to TANF do not apply to Food Stamps. These households must also be advised that they may still be eligible for Food Stamps if they are no longer receiving TANF because they have reached the TANF time limit, have begun working, or for other reasons.
 
Workers, during the interview, must inquire about any changes in household circumstances between the time the recertification application was completed and the time of the interview.
 
Changes occurring after the interview but before the date of the notice of eligibility must be reported by the household within 10 days of the date of the notice of eligibility. If a household reports a change after the interview but prior to the recertification being processed, the change must be acted on.

1.	The worker must also:

a.	Document the date the recertification application was filed by recording the date it was received by the county.

b.	Document the date the interview was conducted and the name of the individual interviewed on the application. 

c.	Examine and explore each section of the recertification application with the household or its authorized representative.

(1)	If it is incomplete, assist the household in completing the form.

(2)	Ensure that the recertification application is completed and signed.

d.	If the household has not designated an authorized representative, explain to the household the functional capacity of the authorized representative and allow them the opportunity to designate someone.

e.	The worker must remain flexible, avoid biases, be sincerely interested in people, and be sensitive to their individual circumstances.

2.	The worker must keep in mind an interview is not:

a.	a criminal investigation.

b.	a counseling session.

c.	an interrogation.

18.	430-05-35-30-10 – Scheduling of Interviews.  Changed the requirement to schedule an interview on all recertifications, to scheduling an interview when required at recertification.  

	Scheduling of Interviews 430-05-35-30-10
 
The county must schedule interviews, if required, for all recertification applications as promptly as possible. Counties must schedule interviews so that the household has at least 10 days to provide requested verifications before the end of the current certification period.
 
If the household fails to appear for the first 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. If the household contacts the county for a second interview, the interview must be held and the recertification application processed. If the household does not contact the county for a second interview, the recertification application is denied 30 days after the date of recertification application.

19.	430-05-35-30-15 – Things to do Before the Interview.  Removed the DN 693 – FS Change Reporting Information Fact Sheet and the SFN 378 – Change Report Form from the list of information to give to the household.  

20.	430-05-35-30-20 – Things to Do During the Interview.  Changed what income must be verified at recertification.  This change applies to all recertifications regardless of whether or not there is an interview required.  

	Things to do During the Interview 430-05-35-30-20
 
1.	Give opportunity to change head of household.

2.	Discuss work requirements and complete SFN - 385 Affidavit for Food Stamp Work Requirements if necessary.

3.	Review SFN 407 - Recertification Application and make sure it is complete.

4.	Verify a full month’s earned and unearned income from the base month or month of recertification.
Verify base month and current month income received up to time of interview and document projection of income for remainder of interview month and next month.

5.	Compare information with what is in case record.

6.	Discuss and clarify any conflicting information.

7.	Review utility expenses to determine appropriate utility standard.

8.	Review averaged expenses such as homeowner's insurance, taxes, medical expenses.

9.	Request and document any needed verification and give client a checklist.

10.	Review rights and responsibilities.

11.	Advise households that are applying for or receiving TANF that:

•	Time limits and other requirements that apply to TANF do not apply to Food Stamps.
•	They may still be eligible for Food Stamps if they are no longer receiving TANF because they have reached the TANF time limit, have begun working, or for other reasons.

12.	Review the DN 405 - Application for Assistance Guidebook and make appropriate referrals for other assistance programs such as Child Care, LIHEAP, Medicaid, TANF, housing, unemployment, WIC.

13.	Ask if there are any changes that may affect FS benefit or eligibility.

14.	Explain EBT and schedule training, card replacement or change of PIN if necessary.

21.	430-05-35-30-30 – Processing a Recertification When No Interview is Required.  This is a new section that addresses policy on processing a recertification when an interview is not required.  

	Processing a Recertification When No Interview is Required

When a household files a recertification application and there is no interview required, the worker must document the date the recertification application was filed by recording the date it was received by the county.  The worker must then examine and explore each section of the recertification application.  

If the recertification application is incomplete or mandatory verifications were not provided, the worker must:

1.	Register the recertification application.  

2.	If the recertification application is not complete, return the incomplete application to the household highlighting the areas not completed.

		The recertification application is considered complete when:

•	The household answers all questions that are appropriate and provides all requested information.  
•	Signed by a responsible member of the household or authorized representative.
•	Mandatory verifications including verification of a full month’s earned and unearned income from the base month or processing month if available is included.  If a pay stub is missing, year to date totals can be used to calculate the income.  
•	The SFN 385 – Affidavit for Food Stamp Work Requirements is complete for all household members required to work register.

3.	Send the F301 – FS Application/Recertification Pended – Additional Information notice to the household.  The notice must indicate that the recertification application is being returned for completion, if not complete, and to request mandatory verifications not provided with the recertification application.  Mandatory verifications include a full month’s earned and unearned income from the base month or month of recertification.

4.	If the completed recertification is not returned, the worker must send the F212 – Recert Denied – Failed to Provide Info notice to the household no later than 30 days following the date the recertification application was filed. If the 30th day falls on a weekend or holiday, the recertification application must be denied on the next working day following the 30th day.

If the recertification application is complete and all verifications are provided, the worker must:

1.	Register the recertification application.

2.	Compare information with what is in previous case records.

3.	Review utility expenses to determine appropriate utility standard.  

4.	Review averaged expenses such as homeowner’s insurance, taxes, medical expenses.

5.	Check Motor Vehicle records:

•	Check under names of all household members

•	Check under maiden names, alleged absent parent names, or other names used by household members.

•	Print the Motor Vehicle screens and check trade-in value.

•	Check for expiration date of license and note any unlicensed vehicles.

6.	Check FACSES and New Hire.

7.	Copy MOIA (Monthly Inquiry Authorization) screens (Function 3 on MOMM menu) for the last benefit month.  Compare MOIA to the recertification application noting reported changes.

8.	Read the last narrative.

9.	Check case alerts.  

10.	Review the last application or recertification application.

11.	Check DIRE to see if there are any outstanding claims.  

12.	Complete the recertification and authorize benefits.  

13.	Send the appropriate recertification notice.

14.	Write the narrative.

22.	430-05-35-40 – Mandatory Verification.  Clarified what income must be verified at the time of recertification in item 5 of this section as interviews are not required for every recertification.  This change applies to all recertifications regardless of whether or not there is an interview.  

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 judgement. 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.
			
A full month’s earned and unearned income from the base month or month of recertification processing month 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 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 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 included in the gross income on the paycheck or pay stub, they are converted.
 
If tips, commissions, bonuses or incentive 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 incentive 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 November June benefits on October May 17th and no interview is required 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 April and May to the date of recertification.  September April earnings were received on the 1st, 8th, 15th, 22nd and 29th.  The household received paychecks on October May 6th and 13th and will receive additional paychecks on October May 20th and 27th. They report on the recertification state at the interview that they expect the October May 20th and 27th paychecks to be the same as what they received on the October May 6th and 13th paycheck.  The October May 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 June November.

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.

Documentation must explain how the worker arrived at the amount of income used.
 
In all examples that follow, pay dates are the 5th and 20th of each month. 

Calculation:	Example: Documentation must support the use of these amounts.	
March 20 $400.00
April 5     $425.00
              $825.00	a) Current income.
Household submitted a recertification application on April 5 and 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 The 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 used to determine May benefits. 	
 April 5     $350.00
         X2  $700.00	 b) Decreased income.
Household submitted a recertification application on April 5 and interviewed on April 9. At interview household provides March 5 check - $500.00 gross income, March 20 check - $500.00 gross income, and April 5 check - $350.00 gross income. April 5 check indicates a decrease in hours. At the interview The household indicates the decrease in hours is ongoing due to employer cutting back all employee's hours. Take April 5 check times two to anticipate May gross income of $700.00. The April 5 check verifies the decrease in hours unless the worker, using prudent judgement, believes it is necessary to obtain additional verification. 	
 March 5  $300.00
March 20 $450.00
$750.00	 c) No change – Base Month.
Household submitted a recertification application on April 5 and interviewed on April 9. At interview household provides March 5 check - $300.00 gross income, March 20 check - $450.00 gross income, and April 5 check - $190.00. At interview The household indicates March income is what they anticipate for the month of May. March income totaling $750.00 gross income is used to determine May benefits.	
 April 5  $412.00
  Divided by 5.15/hr
         80 Hour
 
5.40
 x 80
$432.00
 
$432.00
 x2
$864.00	 d) Increased income.
Household submitted a recertification application on April 5 and interviewed on April 9. At interview household provides March 5 check - $412.00 gross income, March 20 check - $412.00 gross income, and April 5 check - $412.00 gross income. At interview The household reports and verifies 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 the April 5 check times the new pay rate times two to anticipate May gross income of $864.00. 	
 April 5    $510.00
April 20  $480.00
      $990.00	 e) Late recert – Current Income.
Household submitted a recertification application on April 5 and interviewed on April 27. At interview The household provides March 5 check - $490.00 gross income, March 20 check - $490.00 gross income, April 5 check - $510.00 gross income, and April 20 check - $480.00 gross income. Household indicated that there would be no change in income for May. April gross income totaling $990.00 is used to determine May benefits.	
 	 f) Late recert – Pended.
Household submitted a recertification application on April 16 and interviewed on April 27. At interview household and provides March 5 check - $200.00 gross income and March 20 check - $600.00 gross income. All April income has been received by household prior to the date of the recertification.  interview. The recertification must be pended for verification of all April income. If not provided by May 16, the recertification must be denied.
If the household provides all April income anytime between April 27 and April 30, the worker has until May 27 16 to complete the recertification. 	
 
23.	430-05-35-50 – Certification Periods at Recertification.  Changed the certification timeframes assigned at recertification.  

	Certification Periods at Recertification 430-05-35-50
 
Certification periods, conforming to calendar months, must be assigned to all eligible households. At recertification, the first month of the certification period will generally be the month following the month in which a recertification is filed.
 
Simplified reporting households will be certified for 6 months with a recertification interview required at 12 months.  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.
 
Exception:

Simplified reporting households with all elderly or disabled members will be certified for 12 months with a recertification interview required at 12 months.  Migrant and seasonal worker households must be certified for no more than six months.  

Work Requirements for Participation 430-05-40

24.	430-05-40-05 – Work Requirements.   Changed the requirement to work register at application and recertification to application and every 12 months.  

	Work Requirements 430-05-40-05

	Individuals are required to:

•	Register for work by completing the SFN 385 - Affidavit for Food Stamp Work Requirements at the time of application and every 12 months. recertification.
•	Seek and accept suitable employment.
•	Have good cause when quitting suitable employment.
•	Comply with Job Opportunities and Basic Skills (JOBS) and Basic Employment Skills Training (BEST) requirements.
•	Comply with Unemployment Insurance Benefits (UIB).  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.

Workers are required to provide DN 1860 - Notice to All Food Stamp Work Registrants at the time of application and every 12 months. recertification.
 
Individuals are not required to:
•	Register for work at Job Service.
•	Apply for Unemployment Benefits.

25.	430-05-40-30 – Voluntary Quit.  Removed reference to change reporting households.  

	Voluntary Quit 430-05-40-30
 
When an individual quits or loses a job through their own actions or reduces their work effort voluntarily and after the reduction is working less than 30 hours per week, the worker must explore whether the voluntary quit provisions apply. The voluntary quit provisions do not apply to individuals exempt from the work requirements, other than individuals exempt due to employment of 30 hours per week or receiving weekly earnings at least equivalent to the federal minimum wage currently in effect multiplied by 30 hours. 
 
When a household files an application for participation, or when a participating household reports the loss of a source of income or a reduction in hours, the worker must determine:

1.	For a household subject to change reporting, if the quit or reduction in hours occurred within 30 days prior to the date of initial application, anytime prior to the certification of the initial application or anytime during the certification period.
1.	For a household subject to simplified reporting, if the quit or reduction in hours occurred within 30 days prior to the date of initial application or within 30 days prior to the date of receipt of the six-month report or recertification.  

2.	If the individual was a mandatory work registrant at the time of the quit or reduction in hours.

3.	If the individual was hired for employment of 30 hours or more per week (can be averaged), regardless of the length of employment or if the individual received weekly earnings at least equivalent to the federal minimum wage currently in effect multiplied by 30 hours.  

Example:

A mandatory work registrant was hired to work 30 hours per week. The individual quit the second day of employment without good cause. This would be considered a voluntary job quit. 

4.	If the quit was without good cause.
 
Benefits must not be delayed beyond expedited processing time frames pending the outcome of the determination.
	 
If it is determined that a voluntary quit or reduction in hours occurred after benefits have been issued and verifications were postponed in order to meet the expedited time frames, a claim must NOT be established. 
 
A disqualification penalty is applied to a voluntary quit when an individual:

1.	Voluntarily quits or reduced hours without good cause.

2.	Simply leaves a job unannounced or does not return to work 			without good cause.

3.	Had been warned by the employer and continues the objectionable behavior after the warning and is terminated. 

Example:

An individual is continually late for work or does not show up for work.

4.	Is terminated without prior warning.

Examples:

Stealing from the employer or drinking on the job.

If the individual states they quit a job or reduced their hours and are not claiming good cause, an employer contact is not required. This must be thoroughly documented in the case file. 
 
A disqualification penalty is not applied to a voluntary quit when:

1.	The reason for the termination/reduction was beyond the individual’s control.

2.	Terminating a self-employment enterprise.

3.	Resigning a job at the demand of an employer, when an individual has been given the option of resigning or being terminated due to circumstances beyond the individual’s control.

4.	Terminating employment through a training program such as WIA.

5.	An individual quits a job, secures new employment at comparable wages or hours and is then laid off, or through no fault of their own loses the new job, the earlier quit will not form the basis of a disqualification. 

Example:

An individual quits a full-time job without good cause and several days later applies for food stamps. At the time of application, the individual has secured new employment and is exempt from work requirements. A disqualification would not be imposed against the individual as at the time of application, the individual is exempt from the work requirements.

2.	During a certification period an individual quits a job without good cause, secures new employment, and reports this information. within 10-days. The new employment exempts the individual from the work requirements. The individual would not be disqualified because the individual had obtained new employment before a disqualification could be imposed.

If the individual had failed to timely report, a disqualification would not be imposed; however, the worker must determine based on 10-10-10 whether or not there is a claim. If an underpayment would result, benefits are not issued as the household failed to report timely. 

26.	430-05-40-50-10 – Waivers.  Added the additional exempt counties.  This supersedes IM 5034.

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.
 
Benson, Billings, Eddy, Emmons, Grant, Hettinger, Kidder, Logan, McHenry, McLean, Mountrail, Oliver, Pembina, Pierce, Rolette, Sheridan, Sioux, Slope, Towner and Wells Counties are currently exempt from the ABAWD provisions based on a waiver. Mountrail County is Bowman, Golden Valley and Mercer Counties are exempt from the ABAWD provisions based on the 15% exemption criteria.
 
The able-bodied provisions do not apply to an individual living in waived 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.

27.	430-05-40-50-40 – Certification Periods.  Changed the certification timeframes assigned to household containing an individual who is not exempt from the ABAWD provisions.  

	Certification Periods 430-05-40-50-40B

	A household containing an individual who is not exempt from the ABAWD provisions must be assigned a 12-month 6-month certification period, however, the individual is only eligible for the remaining ABAWD months or the extended three month benefit period.  

28.	430-05-40-55-35 – Participant Reimbursement.  Changed the participant reimbursements amounts and removed the reimbursement for dependent care expense.  This supersedes IM 5050.

	Participant Reimbursement 430-05-40-55-35
 
BEST Program mandatory and voluntary participants are reimbursed as follows: a flat rate of ten dollars per day for transportation and other costs directly related to participation in the BEST Program, up to a maximum of $50 per month.

•	Flat rate of five dollars per day for transportation and other costs directly related to participation in BEST, up to a maximum of $25 per month.
•	A maximum of $200 per dependent per month for each child under two, and $175 per month for each other dependent. 

Reimbursements are excluded as income.
 
Reimbursements will be made by the State Office in TECS directly to participating individuals during the month following participation. For dependent care reimbursement SFN 132 - Best Dependent Care Reimbursement must be sent to the State Office by the worker certifying the client as eligible for the dependent care reimbursement. 

If participation in a BEST component would result in dependent care expenses in excess of the dependent care reimbursement amount, the individual is deferred from participation in BEST. 

Assets 430-05-45

29.	430-05-45-05 – Types of Assets.  Removed retirement accounts from liquid assets included in the household’s asset consideration.  Retirement accounts were excluded as part of the 2008 Farm Bill.

	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 household 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).
•	Individual retirement accounts (IRAs).
•	Keogh plans which do not involve the household member in a contractual relationship with individuals who are not household members.
•	Simplified Employer Pension Plans (SEPs).
 
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.

30.	430-05-45-35 – Asset Exclusions.  Changed the exclusion of retirement accounts to include retirement accounts excluded as part of the 2008 Farm Bill.

4.	All tax-preferred retirement accounts.  These include but are not limited to:

•	State Retirement
•	Teacher’s Retirement
•	457 plans
•	401(k) plans 
•	Federal employee thrift savings plans
•	403(b) plans
•	501(c)(18) plans
•	Keogh plans
•	Individual Retirement Accounts (IRA’s)
•	Simplified Employer Pension Plans (SEPs)

If withdrawn, they become an available asset in the month received.

The cash value of pension plans or funds that involve a contractual agreement with non-household members, regardless of whether the person is currently employed. 

Examples:

State Retirement, Teacher's Retirement, 457 plans, 401(k) plans, the Federal employee thrift savings plan, 403(b) plans, and 501(c)(18) plans.
 
The cash value of pension plans or funds which do not involve a contractual agreement with non-household members are counted. Some examples include Keogh plans and Individual Retirement Accounts (IRA's).

Contractual agreements normally refer to retirement plans with employers. If withdrawn, they become an available asset in the month received.

Income 430-05-50

31.	430-05-50-10-05 – Gross Income Standards.  Updated the Gross Income Standards.  This supersedes IM 5045.
	
32.	430-05-50-10-10 – Net Income Standards.  Updated the Net Income Standards, Standard Deductions and the Maximum Shelter Cost Deduction.  Also, removed the maximum deduction for dependent care expenses.  This supersedes IM 5045.

33.	430-05-50-20-05 – Earned Income.  Added census income as a countable earned income.  This supersedes IM 5048.

	Earned Income 430-05-50-20-05
 
Earned income includes, but is not limited to:

1.	All wages and salaries of an employee, including individuals under the age of 18 who are not attending school. This includes wages paid by the Census Bureau for temporary employment related to census activities and short term disability payments from the employer.

Exception:

Short-term disability payments from an outside source other than the employer are considered unearned income.

34.	430-05-50-20-10 – Unearned Income.  Changed the verification of income at recertification and removed the section of policy for Ongoing Cases Subject to Change Reporting Requirements under Child Support Income.  Also, added the child support alert for no income in the base month to policy. 

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 VIEW ledger.  

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

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.  

Child support income is base month budgeted.
 
Exceptions:

1.	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.

2.	If child support is received quarterly, semi-annually or as an annual payment, it is prorated over the period of time intended to cover.

3.	If child support income is being retained because the household is receiving TANF, child support income is excluded.

When the TANF case closes, base month child support retained by the state must be anticipated as income.  
 
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.
 
Initial Application

At application, child support income to the date of interview must be verified via FACSES or by the household 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 a full month’s child support income from the base month or month of recertification, if available, must be verified and used.  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.  

Examples:

1.	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).  

2.	A household is certified through June 30 and files a recertification application on June 26 with no interview required.  The household reports they receive two child support payments each month and received all of their June child support income.  Since the full month’s child support from the recertification month is available, June child support income must be used.   

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 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 files a recertification application in the month following the end of their certification period, comes in for the interview and all child support has been received in the initial month, it 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.

If the household reports they do not expect to continue to receive child support income or reports a change that will result in an increase in benefits, 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.  

1.	If the household responds to the F442 and provides sufficient information/verification, the worker has 10-days to act on the reported change and send the household the appropriate notice.

2.	If the household fails to provide sufficient information/verification, 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 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 are authorized using base month child support.  

Exception:
 
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.
 
Ongoing Cases Subject to Simplified Reporting

For ongoing cases, subject to simplified reporting requirements, if the worker receives an alert that child support was received in the base month, the most current month’s (base month) income as reflected in FACSES must be used to determine the effect on the benefit.  If the base month income results in an increase in benefits, the change must be acted on.  

If the base month income results in a decrease in benefits, the change is not acted on until six month report or recertification, whichever occurs first.  
 
If the worker receives an alert that no child support was received in the base month, the worker will need to check FACSES.  If no child support was received (applying the three working day policy for child support received in the month prior to the base month) in the base month, no child support income is used to determine the effect on the benefit for the benefit month.

Exception:

If acting on another change from a primary source, the change in child support income must also be acted on regardless of the effect on the benefit.  
 
If a household reports they do not expect to continue to receive child support income, the worker must follow up on this reported change by sending the F419 requesting verification. If verification is provided, the change must be acted on to increase benefits.  If verification is not provided, the previously verified amount of income continues to be used until six-month report or recertification, whichever occurs first.   

If a household reports a change in child support income that will result in an increase in benefits, does not provide verification of the change, and the change is not reflected in FACSES, the worker must send F419 and follow up on the reported change.  If verification is provided, the change must be acted on to increase benefits.  If verification is not provided, the previously verified amount of income continues to be used until six-month report or recertification, whichever occurs first.

35.	430-05-50-30 – Income Excluded by Federal Law.  Added an additional item under this section to manualize AMENDED IM 4987 – Exclusion of Combat Pay which was put into law with the passage of the Farm Bill.  This supersedes AMENDED IM 4987.

16.	Monies made available to a household by an absent member deployed to a designated combat zone must be excluded when establishing the household’s income for food stamp purposes as follows: 

a.	The worker must establish what amount of the military person’s net pay was actually available to the household prior to the deployment of the military person to a designated combat zone. The line of thinking here is that we would only count the absent person’s pay that was actually available to the food stamp household (net income).  

Keep in mind that the net income is used only if the military person was in the food stamp household prior to deployment to a combat zone.  If the military person was NOT in the food stamp household prior to deployment, the amount actually made available to the food stamp household is counted as unearned income.

b.	The worker must then determine the amount of his or her military pay that the absent member deployed in a designated combat zone is making available to his or her family.

If the amount of his or her military pay that the absent member deployed in a designated combat zone is making available is equal to or less than the amount the household was receiving from the military person prior to deployment to a designated combat zone (net income), all of the allotment would be counted as income to the household for food stamp purposes.  Any portion of the amount that exceeds the amount the household was receiving prior to deployment of the military person to a designated combat zone should be excluded when determining the household’s income for food stamp purposes.

In order to arrive at this amount, the worker must review the last LES (Leave and Earnings Statement) of the military person immediately prior to deployment.  The LES will identify combat pay if it is being received and can be used to establish deployment to a combat zone.  Deployment to a combat zone can also be established through orders issued to the military person.  

				Example:

A food stamp household that included a military person was receiving $900.00 (net income) prior to deployment to a designated combat zone.  The military person is now providing $1,400.00 to the remaining household members.  When determining the household’s income for food stamp purposes, $900.00 would be counted and $500.00 is excluded.  

Designated Combat Zones

Combat zones are designated by an Executive Order from the President as areas in which the U.S. Armed Forces are engaging or have engaged in combat. There are currently three such combat zones (including the airspace above each):

•	Arabian Peninsula Areas, beginning Jan. 17, 1991 -- the Persian Gulf, Red Sea, Gulf of Oman, the part of the Arabian Sea north of 10° North latitude and west of 68° East longitude, the Gulf of Aden, and the countries of Bahrain, Iraq, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

•	Kosovo area, beginning Mar. 24, 1999 -- Federal Republic of Yugoslavia (Serbia and Montenegro), Albania, the Adriatic Sea and the Ionian Sea north of the 39th Parallel.

•	Afghanistan, beginning Sept. 19, 2001.

Public Law 104-117 designates three parts of the former Yugoslavia as a Qualified Hazardous Duty Area, to be treated as if it were a combat zone, beginning Nov. 21, 1995 -- Bosnia and Heruegovina, Croatia, and Macedonia.

In addition, the Department of Defense has certified these locations for combat zone tax benefits due to their direct support of military operations, beginning on the listed dates:

In support of Operation Enduring Freedom (Afghanistan combat zone):

•	Pakistan, Tajikistan and Jordan - Sept. 19,2001
•	Incirlik Air Base, Turkey - Sept. 21 , 2001 through Dec. 31, 2005
•	Kyrgyzstan and Uzbekistan - Oct. 1, 2001
•	Philippines (only troops with orders referencing Operation Enduring Freedom) - Jan. 9. 2002
•	Yemen - Apr. 10, 2002
•	Djibouti - July 1, 2002
•	Somalia - Jan. 1, 2004

In support of Operation Iraqi Freedom (Arabian Peninsula Areas combat zone): 

•	Turkey - Jan. 1, 2003 through Dec. 31, 2005
•	Israel - Jan. 1 through July 31, 2003
•	the Mediterranean Sea east of 30° East longitude - Mar. 19 through July 31, 2003
•	Jordan - Mar. 19, 2003
•	Egypt - Mar. 19 through Apr.20, 2003

Deductible Expenses 430-05-55

36.	430-05-55-05 – Deductions.  Updated the Standard Deductions.  This supersedes IM 5045.

37.	430-05-55-25 – Dependent Care Costs.  Removed the maximum deduction amount as actual out-of-pocket costs are allowable and removed reference to change reporting households.  This supersedes IM 5045.

Dependent Care Costs 430-05-55-25
 
Households must verify current month dependent care expenses at initial application and recertification.  The out-of-pocket child care expense incurred by the household is an allowable child care deduction.  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 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.
 
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 judgement. 
 
When a child care assistance application is pending, allow the entire child care expense as a deduction up to the maximum 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 the change reporting or simplified reporting requirements.  Adequate notice is required as the household signs the billing form.
 
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 recertification.   

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

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

If the Food Stamp 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 recertification.  

3.	Ongoing change 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 as a deduction for September as a child care billing form was not received.  The household provides a child care billing form on September 5. The household’s out of pocket cost based on the sliding fee scale must be anticipated for October.  

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. 
 
For change reporting households, if an anticipated change results in a decrease in benefits the change must be allowed and verified at the next recertification.  
 
For simplified reporting households, changes resulting in a decrease must not be acted on until recertification.  Changes are not acted on at six month report unless the household reports a change on the six month report form.
 
If the household reports a change that results in an increase in benefits and does not provide verification, verification must be requested using F417 - Incomplete Six Month Report or F418 - Incomplete Six Month Report After Non-Filing.  If not provided, the previously reported and verified expense continues to be allowed at the previously verified amount and the case is not closed.
 
If the household reports a change that results in a decrease in benefits on the six-month report, the change must be acted on without verification.  Verification must be provided at recertification.
 
Examples:

1.	On September 13, the household reports an expected change in dependent care costs on the six-month report form that will result in an increase in benefits, but does not provide verification.  The worker sends the F418 – Incomplete Six Month Report After Non-Filing allowing the household 10-days to provide verification.  

If the household provides the verification, the changes must be acted on to increase or decrease benefits.  

If the household fails to provide the verification within 10-days, the previously reported and verified expense continues to be allowed at the previously verified amount and the case is not closed. 

2.	On September 5, the household reports an expected change in dependent care costs on the six-month report form that will result in a decrease in benefits, but does not provide verification. 

The change must be acted on without verification.  Verification must be provided at recertification. 
 
If the household fails to complete a redetermination for child care assistance, the entire out-of-pocket costs must be anticipated.

38.	430-05-55-30 – Child Support Paid.  Removed reference to change reporting households.  This is a change in policy.

39.	430-05-55-40 – Shelter Costs.  Updated the Maximum Shelter Cost Deduction and the Mandatory Utility Standards throughout this section.  This supersedes IM 5045.

Benefit Determination

40.	430-05-60-05 – Calculating Income and Benefit Level.  Updated the Standard Deductions and the Thrifty Food Plan.  This supersedes IM 5045.

41.	430-05-60-10 – Initial Month Proration.  Updated the examples to reflect the changes in the Standard Deduction and the Thrifty Food Plan.  

42.	430-05-60-15 – Minimum Benefit.  Changed the minimum benefit amount for one and two person households.  The minimum benefit was indexed as part of the 2008 Farm Bill and will change each year as part of the cost of living adjustments.  This supersedes IM 5045.

Change Reporting and Processing Changes

43.	430-05-65 – Change Reporting and Processing Changes.  This chapter was rescinded as all households are now subject to simplified reporting requirements.

Simplified Reporting and Processing Changes

44.	430-05-67-05 – Simplified Reporting Requirements.  Changed this section as it applies to all Food Stamp cases and change the certification periods assigned to simplified reporting households.  Also, added additional exceptions to authorizing cases through.  

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

Simplified reporting households with all elderly or disabled members will be certified for 12 months with a recertification interview required at 12 months.  

1.	Households in which all members are elderly or disabled and there is no countable earned income.

Examples:

1.	Household with an elderly individual and a 5-year-old child (not disabled) is a simplified reporting household.

2.	Household with a single disabled individual with no countable earned income is subject to change reporting requirements.  

3.	Household with an individual who is disqualified (not elderly or disabled) with no earned income and a disabled individual is a simplified reporting household.  

2.	A household that includes an individual in receipt of TANF, including Diversion Assistance and Transitional Assistance.

When a household applies for Food Stamps and TANF, including Diversion Assistance, and is approved for Food Stamps while the TANF is still pending, the household is subject to change reporting requirements.

If the TANF application is denied, the household becomes a simplified reporting household effective the following month.

3.	Migrant/seasonal farmworkers.

All simplified reporting households will be authorized through for six or 12 months, whichever is appropriate.  A six month report is due by the 10th day of month six for benefit determination for the next six months. 

Exceptions:

1.	Households that contain an ABAWD that is receiving NE or EE months cannot be authorized through.  
2.	Household that contain an individual in an open TANF case 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 food stamp 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 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.   

3.	A household with an individual who is disqualified (not elderly or disabled) with no earned income and a disabled individual is a simplified reporting household and is subject to report based on the gross income limit for a household size of 1.  

4.	A three person household is approved and informed to report if their income exceeds the gross income limit for a household size of three.  In month three the household reports a new individual moved in with income that results in the household exceeding the gross income limit for a three person household.  The household is required to report their income exceeding the gross income limit by the 10th day of month four.

Since the new member purchases and prepares meals with the household, the new member and their income are required to be added to the case regardless of the effect on the benefit.  

If the household remains eligible by adding the new member and their income, the household must be informed to report if their income exceeds the household size of four.

If the household is not eligible by adding the new member and their income, the F419 must be sent to determine if the income will continue. 

a.	If the household does not respond to the F419, the case must be closed with advance notice unless the change was reported in writing and signed by the household.

b.	If the household responds and expects the income to continue, the worker must close the case with an advance notice, unless the change was reported in writing and signed by the household.

c.	If the household responds and 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 prior to case closure 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 using the newly verified income.

d.	If the household responds and states they do not expect the income to continue, the household must provide verification other then client statement that their income will not continue to exceed the gross income limit for their household size.

If the newly verified income results in an increase or decrease in benefits, the change must be acted on as adding an individual and their income meets the criteria to decrease benefits.

5.	Mom, Dad and two children apply and are approved and informed to report if their income exceeds the gross income limit for a household size of four.  Dad leaves the home in month four.  The household did not report and is not required to report Dad left the home.  Dad’s income is not included in determining if the household’s income exceeds the gross income limit for a household size of four.

6.	Sally and her daughter Molly live in the same home and purchase and prepare their meals separate from Jill and her son Michael.  Both Sally and Molly and Jill and Michael apply and are approved in February as separate simplified reporting households.  Both households must be informed to report if their income exceeds the GIL for a household size of 2.  

Jill and Michael’s income is not considered in Sally’s case and Sally and Molly’s income is not considered in Jill’s case as they have been determined to be a separate household.

In April, Jill’s husband Al returns to the home.  Al’s income results in a household size of two exceeding the GIL.  Both Sally and Jill are required to report their income exceeds the household size of two.

Since Al is required to be in Jill’s case, no changes are made to Sally’s case.

If Jill’s case remains eligible by adding Al and his income, the household must be informed to report if their income exceeds the household size of three.

If Jill’s case is not eligible by adding Al and his income, the F419 must be sent to determine if the income will continue. 

a.	If they do not respond to the F419, the case must be closed with advance notice unless the change was reported in writing and signed by the household.

b.	If they respond and expect the income to continue, the worker must close the case with an advance notice, unless the change was reported in writing and signed by the household.

c.	If they respond and do 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 they verify prior to case closure that gross income is below the GIL for their household size, the worker must revert the case to open and determine eligibility and level of benefits using the newly verified income.

d.	If they responds and state they do not expect the income to continue, they must provide verification other then client statement that their income will not continue to exceed the gross income limit for their household size.

If the newly verified income results in an increase or decrease in benefits, the change must be acted on as adding an individual and their income meets the criteria to decrease benefits.

7.	A three person household is approved and informed to report if their income exceeds the gross income limit for a household size of three.  In month three the household reports a new individual moved in with income that results in the household exceeding the gross income limit for a three person household.  The household is required to report their income exceeding the gross income limit by the 10th day of month four.

Since the new member purchases and prepares meals separately from the household, the new member and their income are not added.  The three person household remains eligible and must report if their income exceeds the GIL for a household size of three.  The household does not need to continue to report the new member’s income monthly as they have been determined to be a separate household.  

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 than 20 hours weekly.  The household anticipates the hours will continue to be less than 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.

45.	Changes Resulting in a Decrease in Benefits 430-05-67-15-10.  Removed the criteria to reduce benefits when the maximum dependent care cost is reduced as households are no longer subject to a maximum deduction.  Added two new criteria to decrease benefits and added additional policy for clarification when a household reports the addition or loss of a household member and that IPV’s include other disqualifications such as drug felonies and fleeing felons.

	Under changes that do not meet the criteria, clarified that mail returned with an unknown or out-of state address does not meet the criteria to decrease benefits and is not followed up on.
 
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 Immigration Services (USCIS)
e.	IEVS UIB Alerts or UIB Interface

2.	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 client is applying in their state, it is considered a client request to close the case.  Adequate notice is required.  

4.	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.

	If the household reports they anticipate their income to exceed the 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.

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

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

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

8.	The worker becomes aware of information that all household members have died.  Adequate notice is required.  

9.	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 Food Stamp 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.     

9.	When the maximum dependent care deduction is reduced from $200 to $175 for the benefit month a child turns age two.  

10.	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.

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

12.	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.

13.	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.  

14.	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.  

15.	If at application, recertification or six month report, 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 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 recertification.

Example:

Household files a recertification application on August 10, 2007 for the benefit month of September. At the interview the household reports they signed a coaching contract to coach track in April and May, but does not provide the contract.  The income from the contract is not anticipated 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 recertification, the income must be anticipated when determining 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.

Examples:

1.	Mom and her two children are receiving benefits in one county.  Dad is receiving benefits in another county.  Dad reports one of the children came to live with him and would like the child added to his case.  A 10-day advance notice is required to remove the child from Mom’s case.  The child must be added to Dad’s case the month the child is removed from Mom’s case.   

2.	An ongoing case received a $300 benefit for the month of October.  The household reports an increase in their income due to a new source which results in their income exceeding the GIL for their household size.  The household expects this income to continue and using this income results in the household not being eligible for a benefits.  The worker sends advance notice to close the case on October 8.  

On October 25, the household reports and verifies a change in the new source income.  Based on the change, the household is eligible for a $200 benefit.  The change must be acted on for November benefits.  Advance or adequate notice is not required as receiving a benefit is an increase from the case closure.   

3.	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.

4.	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.

5.	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.

6.	Ongoing simplified reporting case.  In month three the worker discovers they failed to convert income at the time of application.  A claim is completed using the corrected converted amount of income.  Allotment reduction is used to recoup the claim resulting in a decrease in benefits.    

7.	Recertification filed in November for December benefits.  Household consists of husband and wife who have both received their three NE month.  At recert, the wife reports she is pregnant and the husband is now working 40 hours per week.  The case is certified with both eligible as a simplified reporting household.  In December, household reports husband lost his job.  The worker sends notice F419 to determine if the individual is exempt for another reason.  The household responds and indicates the individual is not exempt.  Since the household is required to report if an ABAWDS hours decrease below 20 hours per week and the change meets the criteria to decrease benefits, the change must be acted on without verification by removing the income and changing the husband’s participation to DI.

In January household reports husband found a new job and anticipates working 25 hours per week at $6.50 per hour.  Based on this information, the change will result in an increase in benefits.  The worker sends the F419 requesting verification of the new job and hours.  If the household provides the verification, the change must be acted on to increase benefits.  

If after verification is received, the change would result in a decrease in benefits, the change is not acted on (husband remains DI with no income) until six month report.  

8.	Single individual with a 10-year-old is exempt from the work requirements at the time of application as they are working full time.  Individual reports they lost their job.  Worker sends F419 for verification of the terminated income.  Household provides statement from employer that verifies the terminated income but does not substantiate a voluntary job quit.  The change in income must be acted on as it results in an increase in benefits.  

The SFN 385 must be completed at the time of recertification, as this is not a mandatory reportable change.  

9.	Single individual applies in December and reports they plan on applying for unemployment benefits.  Individual was entitled to expedited benefits and approved without postponed verifications for the benefit months of December and January.  January is the individuals first NE month.  In January when working February benefits, the worker received an IEVS UIB alert indicating the individual received two unemployment checks in December.  IEVS UIB meets the criteria to decrease benefits and must be acted on for February.  The individual must also be changed to an exempt ABAWD for February.

10.	Household reports on January 25th that base month income exceeded the gross income limit for its household size in December and the worker determines the household is not eligible for a benefit. The worker must send the F419 to determine if the income will continue to exceed the gross income limit and request verification if it is not expected to continue, allowing the household 10-days to respond.

February benefits are authorized with the same income used for January.

a.	If the household does not respond to the F419, the case must be closed for excess income the end of February.

b.	If the household responds and expects the income to continue, the worker must close the case with an advance notice the end of February, unless the change was reported in writing and signed by the household.

c.	If the household responds and does not know if this income will continue, the worker must close the case with an advance notice the end of February, unless the change was reported in writing and signed by the household.  

	If the household verifies by the last working day of February 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 March using the newly verified income.

d.	If the household responds and states they do not expect the income to continue, the household must provide verification other then client statement that their income will not continue to exceed the gross income limit for their household size.    

If the newly verified income results in an increase in benefits, the change must be acted on.

If the newly verified income results in a decrease in benefits, the change must not be acted on until six month report or recertification, whichever occurs first.

11.	ABAWD receiving their NE months reports they started a job and are working at least 20 hours per week averaged monthly.  The worker must send the F419 for verification of the new job and hours the individual is working.  If the verification indicates the individual is now an eligible ABAWD working 20 hours per week averaged monthly, the individual’s ABAWD status must be changed to exempt (HR on the ABRE screen) for the following month.  

If the income is provided and using the income results in a decrease in benefits, the change in income is not acted on until six month report or recertification, whichever occurs first.    

If the household does not respond to the F419, the individual is eligible for up to 3 months (NE or EE).  Once the NE or EE months have been used, the individual’s participation code must be changed to “DI”.  A 10-day advance notice is required unless the change was reported and signed by the household.  

12.	Household is certified with income over the GIL as they are eligible for a benefit.  The household is not required to report any changes in income.  The worker received a child support alert and uses base month child support to determine the effect on the benefit.  Based on the household's other income and the child support income, the household is no longer eligible for a benefit.  The worker must send the F419 to determine if the increase in income is going to continue and to request verification if the income is not expected to continue.  

a.	If the household does not respond to the F419, the case must be closed for excess income.

b.	If the household responds and expects the income to continue or does not know if the 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 February 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, using the newly verified income.

c.	If the household responds and states they do not expect the income to continue, the household must provide verification other then client statement that their income will not continue to exceed the gross income limit for their household size.  

If the newly verified income results in an increase in benefits, the change must be acted on.  

If the newly verified income results in a decrease in benefits, the change must not be acted on until six month report or recertification, whichever occurs first.   
 
If the reported change does not meet the criteria to decrease benefits, 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.	Employer verification signed by the employer, income tax forms or a report from a self-employed household.  

4.	Mail returned by the Postal Service with an unknown or out-of-state address.

5.	Day care billing forms

6.	Household report of a new job or increased income

7.	Wage stubs, checks from UIB, Workforce Safety, Child Support, SSA/SSI

8.	Reading information in a newspaper

9.	Becoming aware of a client working

Examples:

1.	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 change is acted on at the six month report or recertification, whichever occurs first.

2.	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. As this change will result in a decrease in benefits and does not meet the criteria, the change is not acted on until six month report or recertification, whichever occurs first.

3.	An individual was DW at the time of application for a job quit.  In the third month of the certification period, the individual reports a new job and provides their first paycheck.  Changing the individual to IN and adding their income results in a decrease in benefits.  The individual’s participation is not changed and the income is not added until the six month report or recertification, whichever occurs first.

4.	Application is approved for a 45 year old dad not working and his 17 year old son who is a full time student with earned income.  In month three of the certification period the 17 year old will turn 18.  No change is made to the case as adding the income will result in a decrease in benefits.  The dad is an eligible ABAWD until recertification as no change was reported.  

5.	Ongoing FS/Medicaid case includes an eligible student.  The household reports a change in income that results in an increase in benefits, as the student is no longer working an average of 20 hours per week.  The change in income must be acted on as it results in an increase in benefits.  Because the student may be eligible for another reason and student status is not a mandatory reportable change, the student remains eligible until recertification.

46.	430-05-67-15-15 – Combination Cases.  Added TANF Combination Cases to this section.

	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 recertification.

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 decrease 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 recertification.    

2.	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 stay the same.  

3.	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 change results in a decrease in benefits the change is not acted on until six month report or recertification, whichever occurs first. 

4.	Ongoing FS/MA case.  Household provides base month and all of the processing month pay stubs. The processing month pay stubs must be used to determine the effect on the benefit, as it is the most current information.

5.	Ongoing FS/MA case.  Household provides pay stubs for Medicaid.  Actual income on the pay stubs is not over the gross income limit.  Worker converts the income as the individual is paid biweekly which results in the converted income exceeding the gross income limit.  

If the household is eligible for a benefit, no change is made	 as it would result in a decrease in benefit.  The worker must send the F741 to the household.   

If the household is not eligible for a benefit, the worker must send the F419 to determine if the income will continue.  

a.	If the household responds and indicates the income will continue or the household does not respond, the case must be closed for excess income.

b.	If the household responds and states they do not know if the income will continue to exceed the gross income limit for the household size, the case must be closed.  

If the household verifies by the last working day of the processing month that gross income is below the gross income limit for the household size, the worker must revert the case to open and determine eligibility and level of benefits based on the newly verified income. 

c.	If the household responds and states they do not expect the income to continue, the household must provide verification other than client statement that their income will not continue to exceed the gross income limit for their household size.  If the household does not provide the verification, the last reported converted income is used to close the case.

If the household provides the verification and the newly verified income results in an increase in benefits, the change must be acted on

If the household provides the verification and the newly verified income results in a decrease in benefits, the change must not be acted on until six month report or recertification, whichever occurs first.

	Combination TANF Cases

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.

Whenever a change results in the reduction or termination of a household’s TANF benefits within the household’s food stamp certification period, the worker must make a separate determination for food stamp eligibility.  A worker must not terminate a household’s food stamp benefits solely because the TANF case has closed.

When a household has not submitted a TANF monthly report by the third to the last working day of the month, the TANF grant must not be counted prospectively to determine food stamp benefits.

Exception:

If there is a two immediate prior consecutive month history, which could include the processing month, of late reporting for TANF, the TANF grant must be counted prospectively to determine food stamp benefits.  Monthly reports for TANF are due on the fifth of the month or the first working day after the fifth of the month if the fifth falls on a weekend or holiday.  A TANF monthly report received after the due date is considered a late report.

Example:

TANF/FS household files a monthly report for TANF on August 10 and September 20.  As of October 29, no monthly report has been filed.  On October 29 the worker is working November Food Stamp benefits.  The TANF grant must be anticipated for November.  
 
When a TANF household changes from TANF Diversion to TANF or from TANF to TANF Diversion, a TANF grant is anticipated as follows:

1.	A household received four months of TANF Diversion Assistance and a closing notice is sent in month four. The household submits a TANF monthly report in month four and a Request for Benefits.  A TANF grant must be anticipated and counted for month five.

2.	A household received four months of TANF Diversion Assistance and a closing notice is sent in month four. The household submits a TANF monthly report in month four but does not submit a Request for Benefits.  A TANF grant is not anticipated or counted for month five.

3.	A household received four months of TANF Diversion Assistance and a closing notice is sent in month four. The household does not submit a TANF monthly report in month four but does submit a Request for Benefits.  A TANF grant is not anticipated or counted for month five.

4.	A household received four months of TANF Diversion Assistance and a closing notice is sent in month four. The household does not submit a TANF monthly report or a Request for Benefits in month four.  A TANF grant is not anticipated or counted for month five.

5.	A household received two months of TANF.  The household submits a Request for Benefits and a TANF monthly report in month two to be changed to TANF Diversion.  A TANF grant must be anticipated and counted for month three.

If a change is made to the TANF case after authorizing food stamps and it results in the TANF case closing, the worker must revert TANF to close and reauthorize the food stamp case as the household is no longer considered categorically eligible.

If a change in household circumstances requires a reduction or termination in the TANF grant and the worker has sufficient information to determine how the change affects the household’s food stamp eligibility and benefit level, the worker must take the following actions:

1.	If the change requires a reduction or termination of food stamp benefits, the worker must issue adequate notice or advance notice for both the TANF and food stamp actions on the same day. If the household requests a fair hearing within the period provided by the notice, the worker must continue the household’s food stamp benefits on the basis authorized immediately prior to sending the adequate or advance notice. 

If a fair hearing is requested for both programs, the hearing must be conducted according to TANF procedures and timeliness standards.

If the food stamp certification period expires before the fair hearing process is completed, the household must reapply for food stamp benefits.

2.	If the change will result in an increase in benefits as a result of the reduction or termination of the TANF grant, the worker must issue the TANF advance notice, but must not take any action to increase the household’s food stamp benefits until the household decides whether it will appeal the TANF advance notice.

If the household appeals and the TANF grant is continued, the household’s food stamp benefits must continue at the previous level.
	
If the household does not appeal, the worker must act on the changes along with the change in the TANF grant. The 10-days for the worker to act on the increase is calculated from the date the TANF advance notice period expires.

			Examples:

1.	Ongoing TANF/FS case reports an increase in earned income on the TANF October 5 TANF monthly report.  The change results in a decrease in the TANF grant.  The increased earned income and the decreased TANF grant must be acted for November benefits allowing for adequate notice as the change meets the criteria to decrease benefits.  

2.	Ongoing TANF/FS case calls the worker to report a household member left the home on October 25.  Since the change will result in a decrease in TANF and requires advance notice for both TANF and Food Stamps, the household member must be removed and the decreased TANF grant must be anticipated for December benefits.  The TANF advance notice and the Food Stamp advance notice must be issued on the same day.

Whenever a change results in the reduction or termination of the TANF grant and the worker does not have sufficient information to determine how the change affects food stamp eligibility and benefit level (such as an absent parent returning to the household and the household asked to have its TANF case closed without providing any information on the income of the new household member), the worker must take the following action:

1.	If the situation requires a reduction or termination of the TANF grant and requires a TANF advance notice, the worker must issue F419 at the same time it sends a TANF advance notice giving the household 10 days from the mail date to provide the needed information. Before taking further action, the worker must wait until the TANF advance notice period expires, or until the household requests a fair hearing, whichever occurs first.

a.	If the household requests a fair hearing and elects to have the TANF grant continue pending the appeal, the worker must continue food stamp benefits at the same level.

b.	If the household does not request a fair hearing and provides the information requested, the worker has 10 days to act on the changes and the change in the TANF grant allowing for advance or adequate notice.  

c.	If the household does not request a fair hearing and fails to provide the information, only the change in the TANF grant is acted on allowing for advance or adequate notice.   

2.	If the situation does not require a TANF advance notice, the worker must send F419 giving the household 10 days from the mail date to provide the needed information. If the household provides the requested information within the 10 days, the worker has 10 days to act on the information allowing for advance or adequate notice.

If the household fails to provide the requested information, only the TANF grant is removed when determining food stamp benefits.

			Example:

Ongoing TANF/FS case calls the worker on October 5 to report the absent parent returned to the household and asked to have their TANF case closed.  The worker must send the F419 – Request for Information on the same day the TANF advance notice to close is sent allowing the household 10 days to provide the information for the absent parent.  

The household provides the information on October 10.  The worker must not act on the changes until October 15.  If the household does not request a fair hearing for TANF, the change to add the absent parent and remove the TANF grant must be acted on.       

47.	430-05-67-20 – Adding a New Household Member.  Added an additional exception to mandatory verifications required when adding a new household member.

	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 is not exempt from the work requirements, the individual is also required to complete SFN 385 - Affidavit for Food Stamp Work Requirements.  
 
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. 
 
Exceptions:

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

2.	Drug felony and fleeing felon status is pursued at the next recertification completed after adding the new household member.
 
If the household does not provide the mandatory verifications needed to add the individual, Notice F419 – “Request for Verification” is sent, along with the SFN 385 if appropriate, 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.
 
Exception:
 
If the household reports their income exceeds the gross income limit for their household size with the addition of a new member and does not respond to the F419, the case must be closed for excess income.
 
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.

48.	430-05-67-35 – Case Closing Zero Benefit.  Rescinded this section as exceeding the net income limit does not meet the criteria to decrease benefits for simplified reporting.

49.	430-05-67-45 – Change in Reporting Requirements.  Changed the title of this section to Change in Simplified Reporting Requirements and deleted the current policy in this section as all households are subject to simplified reporting requirements.

50.	430-05-67-45-05 – Change from Simplified Reporting to Change Reporting.  Rescinded this section as all households are subject to simplified reporting requirements.

51.	430-05-67-45-10 – Change from Change Reporting to Simplified Reporting.  Rescinded this section as all households are subject to simplified reporting requirements.

52.	430-05-67-50 – Adequate Notice.  The Adequate Notice section was added under the Simplified Reporting and Processing Changes book as the Change Reporting and Process Changes chapter was rescinded.

	Adequate Notice 430-05-65-75
 
A household must receive adequate notice no later than the date the household receives or would have received its next benefit allotment. Adequate notice must be generated in the system by the worker on the third to the last working day of the month to allow for two days mailing time to the household. 
 
Adequate notice is not required for increases in benefits. 
 
An adequate notice is required for the following changes:

1.	When verification is received from the household and meets 		the following conditions:

a.	Information is reported in writing and signed by a responsible adult household member, resulting in the reduction or termination of benefits, and

b.	The worker can determine the household’s allotment or ineligibility based solely on the information provided by the household.

Examples of Signed Verifications:

•	Change report form for Medicaid
•	Signed application for TANF, Medicaid, Child Care Assistance, or LIHEAP.
•	Check stubs with household’s signature.
•	A child care form reporting a change with the household’s signature.
•	The cover sheet of a fax that contains the client’s signature.

Exception:

A handwritten return address on an envelope is not considered a signature.

2.	Case closure - household request. The request must be made in writing by a household or in the presence of the worker and documented. Notice F414 - Closure-Client Request must be sent to the household confirming the request. The household can request a fair hearing.

If the request is made by telephone, a 10-day advance notice is required. 

3.	Mass changes for adjustments to eligibility standards, benefits, deductions, utility standards, grant adjustments, changes in federal benefits and the annual SSA/SSI cost of living adjustments. The State Office provides mass media notices.

4.	Death of all household members.

5.	When another state calls or sends an e-mail that a household is applying in their state or a household reports that all household members have moved out-of-state. 

6.	Completion of an underpayment. When a household is entitled to an underpayment and has chosen monthly installments instead of a lump sum, and the household was previously notified in writing when the monthly installments would terminate.

7.	Joint TANF/Food Stamp application results in the receipt of food stamps pending TANF grant approval and household is notified at the time of certification that food stamp benefits would be reduced upon receipt of a grant.

8.	When a member of the household is disqualified for IPV and benefits of the remaining members are reduced or terminated. 

9.	Changing a household from cash repayment to allotment reduction as a result of failure to make the agreed payments.

53.	430-05-67-55 – 10-Day Advance Notice.  The 10-day Advance Notice section was added under the Simplified Reporting and Processing Changes book as the Change Reporting and Process Changes chapter was rescinded.

	10-Day Advance Notice 430-05-65-80
 
When there is a reduction or termination of benefits within a certification period, a 10-day advance notice must be sent to the household, unless changes are reported in writing and signed by the household. 
 
The written notice must contain the following:

1.	Action taken or intended.

2.	Reason for the intended action.

3.	Household's right to request a fair hearing.

4.	Name and phone number of a person to contact for additional information.

5.	Availability of continued benefits.

6.	Household liability for any overissuance received pending a fair hearing decision when the decision is adverse to the household.

Notices sent through TECS informing the household of the reduction or termination of benefits show the benefit calculation and reason. 
 
If a 10-day advance notice to reduce benefits is sent to a household and later that same month the household reports a change that results in an additional decrease in benefits, another 10-day advance notice is required.

Example:

A household received $300 for the benefit month of December. On December 10, the case is processed for January and a 10-day advance notice is sent to the household as January benefits decreased to $250. On December 22, the household reports and verifies a change that results in an additional decrease in the January benefit to $200.

The 10-day advance notice sent on December 10 only addresses the reduction to $250. Another 10-day advance notice is required to decrease benefits to $200. Since it is past advance notice deadline, this change cannot be made for January benefits. The change must be made for the benefit month of February. 
 
If a household has been sent a 10-day advance notice to reduce, suspend, or terminate benefits and later that same month reports a change that results in the household receiving a benefit or an increase in benefits, a 10-day advance notice is not required.

Example:

A household received $400 for the benefit month of December. On December 5, the household reports their income exceeding the GIL and is not eligible for a benefit.  The F419 is sent to determine if the income is expected to continue and to request verification if the income is not expected to continue.  The household fails to respond to the F419 within 10 days so the F407 – Excess Income notice is sent to close the case.  On December 23, the household provides verification that their income is not expected to continue to exceed the GIL and the household is eligible for a $200 benefit for January. A 10-day advance notice is not required.

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

54.	430-05-75-05 – Intentional Program Violation (IPV).  Removed reference to change reporting requirements and corrected the reporting requirement timeframe.

Intentional Program Violation (IPV) 430-05-75-05
 
In order to determine if an individual(s) has committed an IPV, that individual must have intentionally:

1.	Made a false or misleading statement, misrepresented, concealed, or withheld facts.

Examples:

Failure to report:

•	Income exceeding the GIL
•	A source of income at the time of application or recertification
•	A household member at the time of application or recertification.
•	Increase in earned income of $100 or more.
•	New source of income.
•	Change in household composition.
•	Change of residence.

2.	Committed any act that constitutes a violation of the Food Stamp Act, Food Stamp Program regulations, or any State statute for the purpose of using, presenting, transferring, acquiring, receiving, possessing, or trafficking of coupons, authorization cards, or reusable documents used as part of an automated benefit delivery system.

Examples:

•	Purchasing alcohol or tobacco with food stamp benefits.
•	Purchasing food and reselling for cash. 
•	Selling food stamp benefits.

The use of the term "intentionally" in the regulations does not mean the worker has the burden of proving that an individual intended to commit a fraudulent act. The worker does not have to prove a deliberate intent to defraud. An individual’s signature on the application attests to providing full information and to understanding the reporting requirements.

Example:

Intent is satisfied if an individual is aware of the mandatory reporting requirements, but for whatever reason did not report. 

If an individual does not report a mandatory change by the 10th of the following month, within 10 days, a program violation may have occurred. 
 
If a failure to report is discovered by the worker, the worker must consider initiating an IPV. 
 
An IPV may exist regardless of whether there is a claim. There is no requirement that a claim exist when pursuing IPV. 
 
An individual disqualified from participation in the Food Stamp Program due to an IPV or court conviction of fraud may not participate in the Food Distribution Program until the period of disqualification expires. Counties must notify the Food Distribution Program administering agency in writing of Food Stamp disqualified individuals, along with the inclusive dates of disqualification.

55.	430-05-75-15-05 – Evidence.  Removed the change report form as a type of evidence.

56.	430-05-75-15-35 – Unsigned Waiver.  Removed the change report form from the list of items to send to the Appeals Supervisor.

Claims 430-05-80

57.	430-05-80 – Claims.  Added an additional exception to establishing claims.

	Claims 430-05-80
 
Claims must be established for any household that received more Food Stamp benefits than it was entitled to receive or for benefits that are trafficked.

Exceptions:

1.	Claim for errors caused by the client must only be established for mandatory reportable changes.
2.	Claims must not be established when the only household members are under age 18.  
 
A claim is established by calculating and authorizing the overpayment and sending the appropriate notice to the household. Each person who was an adult member of the household when the overpayment or trafficking occurred is responsible for the repayment of the claim. Authorized representatives who actually traffic benefits are responsible for repayment of the claim.
 
If there is a change in household composition, counties can pursue collection action against any adult who was a member of the household at the time overissuance occurred. 
 
At the time of certification outstanding claims against a household must be identified and appropriate action taken. The worker is responsible to identify outstanding claims at the time of certification by checking TECS claim alerts (SEOO function 2) and direct recoupment (DIRE).
 
Federal regulations prohibit benefit reduction of an initial benefit, a retroactive initial benefit, and a current month's supplemental benefits. TECS does not allow recoupment in these instances.

Exception:

TECS will recoup from an initial benefit when there has not been a break in participation from the previous month.

Example:

Food Stamp case closed January 31 for excess income. Household reapplies February 1 and is eligible. TECS will recoup from February benefits.

58.	430-05-80-25 – Claims that are Not Cost Effective.  Added policy to clarify the dollar amount after offset is used in determining if a claim is cost effective.

Claims That are Not Cost Effective 430-05-80-25
 
The State Office has determined that it is not cost effective to collect any claim when the food stamp case is closed and the amount of the claim is less than $125.  When benefit months are reworked resulting in both underpayments and overpayments, the overpayments must be authorized first. Underpayments are then authorized and will offset the claim.  In determining if a claim is cost effective to collect, the dollar amount of the claim after offset is used.  
 
In this instance, the worker must calculate the total overpayment and authorize it on OVCA. A notice of overpayment must not be sent to the household and must be deleted. The worker must contact the State Office to adjust the claim.
 
Exceptions:

1.	A claim must be completed for any case cited and reported as an overissuance by Quality Control regardless of the amount.

2.	A claim that has already been established.

59.	430-05-80-70 – Types of Payments.  Added exceptions to allotment reduction and offsetting claims when the only eligible household members were under 18 at the time the claim was completed.

	Types of Payments 430-05-80-70
 
Claims can be paid using any of the following types of payments or a combination of them:

1.	Allotment Reduction

Allotment reduction is automatic for participating households and begins with the first allotment issued after the appropriate notification.

Exception:

Allotments cannot be reduced when the only eligible household members were under age 18 at the time the claim was completed.  In this situation, contact the State Food Stamp Office to close/suspend the claim.      

a.	Administrative and inadvertent household error claims. The amount of food stamp benefits recovered each month is the greater of 10% of the household’s monthly allotment or $10 per month, whichever is greater. 

b.	IPV claims. The amount of food stamp benefits recovered each month is the greater of 20% of the household’s monthly allotment or $20, whichever is greater.

c.	If a household requests benefit reduction at a rate higher than those listed in (a) or (b) immediately above, benefits are reduced by that amount. Supporting documentation must be in the case file.

Exception:

If collecting at the limits listed in (a) or (b) immediately above are greater than the requested benefit reduction by the household, then (a) or (b) immediately above must be used.

2.	Offsetting Underpayments

When a household has an outstanding balance on a claim and is entitled to an underpayment, the system will automatically apply the underpayment to the overpayment.

Exception:

Underpayments cannot be used to offset claims when the only eligible household members were under age 18 at the time the claim was completed.  In this situation, contact the State Food Stamp Office to close/suspend the claim before authorizing the underpayments.  

3.	Lump Sum or Installment Payments

If the household chooses an installment payment plan and their food stamp case is currently open, the payment must be equal to or greater than 10% or $10, whichever is greater.  
 
Exception:
 
If the claim is due to fraud, the payment must be equal to or greater than 20% or $20, whichever is greater.  
 
Acceptable forms of lump sum or installment payments include a check, cash, money order or EBT benefits whether it represents partial or full payment. 

If a household fails to submit a negotiated payment, the claim is subject to additional collection actions.

4.	Treasury Offset Program (TOP)

This is informational and is a State Office procedure.

Properly established administrative error, inadvertent household error and IPV error claims can be submitted if they meet the following requirements:

a.	Case must be closed.

b.	Claims must be $25 or more. Smaller claims for an individual can be combined.

c.	A claim must be at least three months delinquent but no more than nine years and 11 months old when sent for offset December 1 of each year.

Exceptions:

1.	There is a court order.

2.	If part of a combined claim is under judgement, it is not limited by the ten-year time frame.

3.	Double submissions of claims involving more than one adult household member are not allowed.

4.	Claims submitted for bankruptcy cannot be referred.

d.	The State Office must provide households a 60-day notice informing them that the delinquent claim will be referred for offset.

5.	Client Authorized EBT Benefits

A household must be allowed to pay a claim using benefits from its EBT account.  If the household is currently participating in the program, allotment reduction is automatic.  The worker must explain to the household that choosing repayment from its EBT account in addition to allotment reduction or an EBT benefit greater than allotment reduction is strictly voluntary.  

Written authorization must be obtained from the client which specifies the amount. The Demand for Payment notice can be used. This information must be submitted to the State Office.

6.	Stale EBT Account Debits

An automatic notice will be sent to the household allowing the household 10 days to advise either the worker or the State Office that they do not want these benefits used to pay the claim.

If the household advises the worker that they do not want these benefits used, they cannot be used. The worker must contact the State Office with this information.

7.	Expunged EBT Benefits

Any benefits in an EBT account that has not been used in 365 days are expunged and no longer available to the household. Expunged benefits are applied to any outstanding claim using the EX code. This is a State Office procedure.

8.	Other Collection Actions

Other collection action may be used to collect claims such as collection agencies.

9.	Unspecified Joint Collections

When an unspecified payment is received for a combined case, each program must receive a prorata share of the amount collected.

10.	Public Service

If authorized by a court, the value of a claim may be paid by performing public service.

Supplements and Replacements 430-05-85

60.	430-05-85-05 – Supplements and Replacements.  Removed the policy for change reporting households.

Federally Mandated Reduction, Suspension or Cancellation of Benefits 430-05-95

61.	430-05-95 – Federally Mandated Reduction, Suspension, or Cancellation of Benefits.  Changed the minimum benefit amount for one and two person households.  The minimum benefit was indexed as part of the 2008 Farm Bill and will change each year as part of the cost of living adjustments.  This supersedes IM 5045.

Forms 430-05-100

62.	430-05-100-10 – SFN 405 – Application for Assistance.  Updated the links to the 03/08 revised date. 

63.	430-05-100-15 – SFN 378 – Change Report Form.  Rescinded this form.

64.	430-05-100-30 – DN 693 – Food Stamp Change Reporting Information Fact Sheet.  Rescinded this form.

65.	430-05-100-50 – SFN 132 – Dependent Care Payments.  Rescinded this form.

66.	430-05-100-130 – DN 696 – Simplified Reporting Information Fact Sheet.  Updated the link to the 08/08 revised date.