Prospective Budgeting 400-19-105-15

(Revised 4/1/2012 ML #3309)

View Archives

 

 

(N.D.A.C. 75-02-01.2-56)

 

Prospective Budgeting is determining eligibility and benefit amounts for the initial two months based on the best estimate of income, expenses and household circumstances in those months. After the initial two months, all factors of eligibility, except income and expenses, must be considered prospectively each month to determine continued eligibility.

 

The TANF Eligibility Worker must also gather supplemental information from the applicant to determine eligibility and benefits for the second month. The TANF Eligibility Worker must note the information on the Statement of Facts or the Application for Assistance (SFN 405) relating to the second prospective month. Income reasonably expected to be received and expenses expected to be incurred during the first two months must be used to determine the initial two months’ benefits. Previous months' pay stubs and expense receipts may be requested to assist in determining the most accurate amounts. The method(s) used to anticipate income and expenses during the initial two prospective months will vary according to the circumstances of each household. It is the responsibility of the TANF Eligibility Worker to decide on the best approach. Whatever the method used, it is imperative that the rationale for arriving at estimated income and expenses be clearly and thoroughly explained in the case narrative.

 

The TANF benefit is based on prospective income and expenses for the first two months and retrospective (two months prior to the benefit month) for all subsequent months. Benefits for the first prospective month will be made by immediate issuance. Benefits for the second prospective month will be made by regular issuance unless the second prospective month's benefits are authorized after its regular issuance deadline.

 

If, in the first prospective month, ineligibility is caused by excess earned or unearned income, and ineligibility is expected to last for one month only, the household is ineligible and the application must be denied.

Note: The application can be used to determine eligibility for the month following the month of denial and the new application month becomes the first prospective month.

 

If, in the second prospective month, ineligibility is caused by the anticipated receipt of an extra check from a recurring earned or unearned income source and ineligibility is expected to last for one month only, the TANF case is suspended for that month and the following month becomes the second prospective month.(Review Policy at 400-19-55-10-15, Income Resulting from the Receipt of an Extra Check.)

Note:  If the household is prospectively ineligible for any other reason, TANF must be closed at the end of the first prospective month.

 

When the final payment of income is received during the 1st or 2nd prospective months, the income is considered a terminated source of income.  Income cannot be treated as a terminated source of income if it continues to be received in the 1st retrospectively budgeted benefit month.  (Review Policy at 400-19-55-10-10, Terminated Source of Income.)

 

The first monthly report filed by the household will contain the actual income and expenses from the initial month (the first prospective month). If the actual amounts are different from those used to determine the initial benefit, the initial month (first prospective month) must be reworked to establish an underpayment or overpayment for that month. A supplemental payment will be issued immediately to adjust any underpayment. Benefit adjustments for an overpayment will be made in subsequent months.

Note: If the household is later determined ineligible for the first prospective month, the month continues to be considered the first prospective month and the budgeting cycle does not change.

 

The second monthly report filed by the household will contain the actual income and expenses from the second prospective month. If the actual amounts are different from those used to determine the TANF benefit for the second prospective month, that month must be reworked to establish the amount of underpayment or overpayment. A supplemental payment will be issued immediately to adjust any underpayment. Benefit adjustments for an overpayment will be made in subsequent months. (Also see Section 400-19-105-40-30, Budgeting for Persons Being Added to the Household.)

 

If a TANF case closes at the end of the first prospectively budgeted month and the household reapplies for TANF in the month following the month of closure, the household will be budgeted prospectively for one additional month; this since there has not been a break in assistance for a least one full calendar month. However the benefit is prorated from the date of the application or date of eligibility, whichever is later.