us-ca/regulation/cdss-mpp/division-63/fsman08/block-7 — 63-509 INCOME ELIGIBILITY AND BENEFIT CALCULATION 63-509

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(a)Income Eligibility and Grant Calculation for Quarterly…#

(a) Income Eligibility and Grant Calculation for Quarterly Reporting Households

Benefits for the QR Payment Quarter will be determined using prospective budgeting, reasonably anticipated income and income-averaging rules.

(1) Prospective Budgeting

Income and household information from the QR Data Month and anticipated changes in income and expenses must be considered when determining eligibility and benefit levels for a Payment Quarter. Documentation is required in the case folder which explains how income was projected in determining benefit calculations. Case narrative entries must include, but are not limited to, the following types of documentation:

(A) Income the recipient states is expected in future months;

(B) Whether anticipated income will be different than income that the recipient reported receiving for the QR Data Month;

(D) Other information used to determine what income will be used in the benefit calculations (verifications, employer’s statements, case history, etc.) if the recipient's estimate is not used.

HANDBOOK BEGINS HERE

Case narratives and other documentation will be critical when documenting new income, income that is expected to change, income that fluctuates, and income that is so unstable that the recipient cannot make a reasonable estimate of what income to expect in future months. QC reviewers will rely heavily on case documentation when reviewing case files to determine if benefits have been issued in the correct amounts. To avoid QC errors, case documentation is a necessary requirement.

HANDBOOK ENDS HERE

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-04-07 Effective 7/1/04

Page 376.27

FOOD STAMP REGULATIONS

63-509 (Cont.) ELIGIBILITY DETERMINATIONS Regulations

63-509 INCOME ELIGIBILITY AND BENEFIT CALCULATION 63-509

FOR QUARTERLY REPORTING (Continued)

(2) Reasonably Anticipated Income

Income is "reasonably anticipated" when the CWD determines it is reasonably certain that the recipient will receive a specified amount of income during any month of the QR Payment Quarter and applies to all income, earned or unearned.

If the amount of income or when the income will be received is uncertain (i.e., it cannot be reasonably anticipated), that portion of the household's income that is uncertain or cannot be reasonably anticipated will not be counted when determining income eligibility and benefit levels.

If the household reports a decrease in income for the Submit Month, the CWD will treat it as a mid-quarter change and use the information of decreased income to anticipate income for the next QR Payment Quarter if the change continues into the next quarter.

Income shall be considered to be reasonably anticipated if it is determined that:

(A) The income has been or will be approved or authorized within the upcoming quarter; and,

(B) The household is otherwise reasonably certain that the income will be received within the quarter; and

1. A determination of what income is reasonably anticipated is required when a household:

a. first applies for benefits;

b. reports new income on the QR 7;

c. reports on the QR 7 that income is expected to change;

d. has income that changes; and

e. makes a mid-quarter report of an income change.

2. Using Different Sources to Determine Reasonably Anticipated Income

a. The sources used to determine what income is reasonably anticipated may differ based on the circumstances listed in 63-509.121. The following sources may be used, but are not all inclusive:

(ii)the source of income; and/or#

(ii) the source of income; and/or

(iii) payment dates, hours of work; and/or

(iv) the recipient's estimation of income.

b. If, with the help of the recipient, a determination of how income will change cannot be made, only that portion of income that the household reasonably anticipates shall be used in the benefit calculation.

3. The following are guidelines to determine income that is reasonably anticipated by the household. They include, but are not limited to the following.

a. Take into account income that the household reports/estimates as being reasonably anticipated for the upcoming QR Payment Quarter;

b. If the household is unable to provide an estimate of anticipated income on the QR 7, the recipient, may be contacted for additional information;

c. If the household is unable to estimate future income with the CWD's assistance, the employer or source of income may be contacted with authorization from the recipient.

d. If income received during the past 30 days does not provide enough information to determine changes in income, take into account past income received by the household as an indicator of income to expect over the next quarter, if it will provide a more accurate indication of fluctuations in future income.

e. For seasonally fluctuating income, a review of the employment history for the most recent past season can be used if it will provide a more accurate indication of fluctuations in future income.

f. Past income cannot be used as an indicator of anticipated income for the quarter if changes in income have occurred or can be anticipated.

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-05-03 Effective 8/5/05

Page 376.29

FOOD STAMP REGULATIONS

63-509 (Cont.) ELIGIBILITY DETERMINATIONS Regulations

63-509 INCOME ELIGIBILITY AND BENEFIT CALCULATION 63-509

FOR QUARTERLY REPORTING (Continued)

g. A new source of income, such as a new job, cannot be anticipated if it is uncertain when the job will start or what amount the recipient will be paid.

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Example: A recipient reports on the QR 7 that a household member will start a new job in the upcoming quarter. The household reports that the payday falls within the next QR Payment Quarter and reports the anticipated wage amount and expected hours. Because the timing and amount of the income is reasonably certain, the CWD should consider this income to be reasonably anticipated and therefore should use it in the benefit calculations for the next QR Payment Quarter. The CWD shall document the recipient’s statement of expected hours and wages in the case file to substantiate the recipient’s estimate.

Example: A household reports that a member has been verbally approved for State Disability Insurance (SDI). However, the household member has not received an actual award letter or check, and does not know the exact start date or amount. Because the timing and amount of the income is not known, the CWD should not prospectively use this income in the calculation for the upcoming QR Payment Quarter. If the hours/rate of pay can be anticipated, but the start date of pay is not known, then the CWD cannot anticipate the income.

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(3) Reasonably Anticipated Medical, Child Support and Child Care Expenses

(A) Medical, child care and court-ordered child support expenses shall be determined as follows:

1. Determine the expense amount that is reasonably anticipated in each month of the quarter.

2. Average the anticipated amounts over the months of the quarter and use the resultant amount as the expense deduction when computing benefits.

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-05-03 Effective 8/5/05

Page 376.30

FOOD STAMP REGULATIONS

Regulations ELIGIBILITY DETERMINATIONS 63-509 (Cont.)

63-509 INCOME ELIGIBILITY AND BENEFIT CALCULATION 63-509

FOR QUARTERLY REPORTING (Continued)

3. Expenses paid on a weekly or bi-weekly basis shall be converted to a monthly deductible expense by multiplying the weekly and bi-weekly figure expense by 4.33 or 2.167 as appropriate if income is also multiplied by these conversion factors.

4. Document the rationale for the determination of the anticipated expense deduction.

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Example 1 Example 2

Child Care for: January $175 $200

February 200 0

March 150 150

Total $525 $350

Quarterly Expense 5÷3 $175 $116

The allowable average child care expense for the Quarter in Example 1 is $175. In Example 2, it is $116.

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(B) Shelter Costs

Shelter costs shall be determined at application and recertification and shall remain fixed at the determined amount until the household reports either a change on the QR 7, makes a voluntary mid-quarter report, or a mandatory report of a move.

1. Increased shelter costs reported mid-quarter shall be recomputed using the new shelter cost. The new shelter deduction amount is fixed and will remain the same until another change is reported or until the next recertification occurs.

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-05-03 Effective 8/5/05

Page 376.31

FOOD STAMP REGULATIONS

63-509 (Cont.) ELIGIBILITY DETERMINATIONS Regulations

63-509 INCOME ELIGIBILITY AND BENEFIT CALCULATION 63-509

FOR QUARTERLY REPORTING (Continued)

2. If the report of a shelter cost increase results in increased benefits mid-quarter, the increased cost need not be reported on the next QR 7. Food stamp benefits shall be supplemented if benefits can be increased mid-quarter.

3. If a report of a shelter cost decrease would result in a mid-quarter decrease, the recipient shall be notified via a "No Change NOA" that no mid-quarter change resulted.

Entitlement to the SUA, LUA, or telephone allowance shall be determined at application and at recertification and shall remain in effect during the certification period per Section 63-502.363.

(4) Income Averaging Over the Quarter

(A) Averaging Income Reported on the QR 7

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-06-04 Effective 11/1/06

Page 376.32

FOOD STAMP REGULATIONS

Regulations ELIGIBILITY DETERMINATIONS 63-509 (Cont.)

63-509 INCOME ELIGIBILITY AND BENEFIT CALCULATION 63-509

FOR QUARTERLY REPORTING (Continued)

The following basic income averaging steps shall be taken to determine the monthly income average that shall be used in the benefit calculation for fluctuating income over the QR Payment Quarter.

1. Add the reasonably anticipated gross unearned income for each month of the quarter and divide by three. If the household receives the exact amount of income from month to month in the QR Payment Quarter, averaging over the quarter is not necessary. (Refer to Section 63-509(a)(5) for usage of the weekly and bi-weekly conversion factors when averaging income over the QR Payment Quarter.)

2. Apply all applicable allowances and deductions to the averaged income amounts to generate an average Net Non-exempt Income (NNI).

3. Add the NNI of each income type together to determine the average monthly NNI for the household.

4. For households that receive a CalWORKs benefit, the actual CalWORKs grant amount for each month must be used when computing food stamp benefits. The actual anticipated CalWORKs grant shall not be averaged over the QR Payment Quarter.

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Example: The quarter is October/November/December. The mother submits the QR 7 for November to the CWD on December 10. On the QR 7, she reports that she started a part-time job in December that will only last until the end of January, when the holiday shopping season ends. She reports that she will be paid $900 in January and $800 in February. The mother's aided spouse is also receiving Unemployment Insurance Benefit (UIB) of $100 paid bi-weekly.

Benefits for the January/February/March quarter are computed based on the income the household anticipates it will receive for that quarter as follows:

HANDBOOK CONTINUES

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-05-03 Effective 8/5/05

Page 376.33

FOOD STAMP REGULATIONS

63-509 (Cont.) ELIGIBILITY DETERMINATIONS Regulations

63-509 INCOME ELIGIBILITY AND BENEFIT CALCULATION 63-509

FOR QUARTERLY REPORTING (Continued)

HANDBOOK CONTINUES

Income Determination

Earned Income for January $900

+Earned Income for February 800

+Earned Income for March 0

Subtotal Earned Income for Quarter $1700

Earned Income Divided by 3 $566.67

Computation

Averaged Gross Monthly Earned Income $566.67

Less Earned Income Deduction -113.33

Less Standard Deduction -134

Average Monthly Net Earned Income $319.34

Add average Monthly Net Earned Income +319.34

Add Average Monthly UIB

($100 x 2.167) +216.70

(For usage of conversion factors, refer to (B)

below)

Add CalWORKs Monthly Grant +372

Subtotal $908.04

Less Excess Shelter Deduction - 350

Net Income $ 558

HANDBOOK ENDS HERE

(5) Weekly and Bi-Weekly Conversion Factor Usage

Under the following circumstances the CWD shall add weekly or bi-weekly Data Month income amounts reported on the QR 7 and divide that total by the number of pay periods in the Data Month to arrive at an average weekly or bi-weekly income amount to which the conversion factors shall be applied.

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-04-07 Effective 7/1/04

Page 376.34

FOOD STAMP REGULATIONS

Regulations ELIGIBILITY DETERMINATIONS 63-509 (Cont.)

63-509 INCOME ELIGIBILITY AND BENEFIT CALCULATION 63-509

FOR QUARTERLY REPORTING (Continued)

(A) A household reports on the QR 7 that it is paid on a weekly or bi-weekly basis and indicates that it does not anticipate any changes in income in the upcoming quarter compared to the data month income actually reported on the QR 7, and the CWD is in agreement with the household's report of no change in income, or

(B) A household reports on the QR 7 that it is paid on a weekly or bi-weekly basis and indicates that it does anticipate changes in its income in the upcoming quarter, but the county determines in its follow-up review that the AU’s/HH’s reasonably anticipated income in the next quarter will not change from what was reported in the Data Month on the QR 7, or

(C) A household reports that it is paid on a weekly or bi-weekly basis, indicates that there are changes in income in the upcoming quarter, the amount is known and will remain the same for the entire QR payment quarter, and the CWD is in agreement with the reported income.

(D) The average weekly and bi-weekly amounts arrived at above shall be converted to a monthly amount by using a 4.33 conversion factor for weekly payments and a 2.167 conversion factor for payments received bi-weekly.

(E) The conversion figures can only be used if weekly and bi-weekly payments are paid throughout the entire QR Payment Quarter for each week or for every-other week in the quarter.

(F) The conversion factors shall not be used for income received on a monthly or semi-monthly schedule.

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Examples:

1. The recipient reports on the QR 7 that 4 weekly paychecks were received in the following amounts: $115, $100, $135 and $95. The recipient also indicates on the QR 7 that his/her income is not expected to change during the next payment quarter compared to reported income on the QR 7. The CWD will add the 4 weeks of income together, divide by 4 and then factor the resultant amount by 4.33 (use the appropriate conversion factor for the payment frequency) to arrive at the monthly income amount for the next QR Payment Quarter. If 5 pay periods were reported in the Data Month on the QR 7, the CWD will add each week together and divide by 5 and then factor the resultant amount by 4.33.

HANDBOOK CONTINUES

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-05-03 Effective 8/5/05

Page 376.35

FOOD STAMP REGULATIONS

63-509 (Cont.) ELIGIBILITY DETERMINATIONS Regulations

63-509 INCOME ELIGIBILITY AND BENEFIT CALCULATION 63-509

FOR QUARTERLY REPORTING (Continued)

HANDBOOK CONTINUES

2. The QR Payment Quarter is January/February/March. The recipient indicated on the QR 7 that weekly income of $100 was received in the Data Month and marks on the QR 7 that this income amount will not continue during the upcoming QR Payment Quarter. The CWD consults with the recipient and finds out that the recipient anticipated a change in income because he/she hopes to get a new job in the next quarter but has no firm offer. The recipient states that if he/she does not get a new job, he/she will continue at the current job throughout the next quarter making the same amount. Due to the speculative nature of the new job and the recipient’s statement regarding the current job, the CWD determines that the income reported in the data month on the QR 7 is reasonably anticipated to continue during the next quarter. Therefore the CWD would apply the conversion factor of 4.33 to the $100 weekly amount to arrive at the monthly income amount for the next QR Payment Quarter (In this example, because the 100 weekly amount remains the same for each pay period, the step requiring that the weekly amounts be added together and divided by the number of pay periods is not necessary)

3. The recipient reports on the QR 7 that she is paid on a weekly basis except she only works 3 weeks in a month and indicates that this frequency of pay will remain the same throughout the QR Payment Quarter and will remain unchanged throughout the next QR Payment Quarter. She is typically paid $115, $100, $135. The CWD will add the 3 weeks of income together to arrive at a reasonably anticipated monthly income for the next QR Payment Quarter. Since income is not paid every week of the QR Payment Quarter, the income cannot be factored.

HANDBOOK ENDS HERE

(6) Benefit Determination Based on Income That Will Change in the Upcoming QR Payment Quarter

(A) When the household has or reports income that will change during the next QR Payment Quarter, the determination of whether income is reasonably anticipated will require additional steps and thorough case documentation. First use the household's anticipation of income if the household is able to provide it and if there is no conflicting information. If the information is questionable or the household is unable to anticipate future income, the household may be contacted to obtain additional information about anticipated pay and/or hours of work. If the household cannot be contacted, or if the household and/or the CWD are unable to anticipate future income levels, the recipient or the CWD with the household's written permission, may contact the household's employer regarding anticipated work hours or pay.

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-05-03 Effective 8/5/05

Page 376.36

FOOD STAMP REGULATIONS

Regulations ELIGIBILITY DETERMINATIONS 63-509 (Cont.)

63-509 INCOME ELIGIBILITY AND BENEFIT CALCULATION 63-509

FOR QUARTERLY REPORTING (Continued)

(B) If the CWD is still unable to reasonably anticipate future income, the CWD may also look at the recipient's prior work patterns to assist in determining the number of future work hours, if the recipient states that s/he had prior work hours/wages that are similar to the anticipated work pattern. This may include asking the recipient to provide available prior work information and/or reviewing information in the case file. The CWD is not limited to reviewing income from the previous quarter only, but may use income information from the past 12 months to help establish patterns in income. However, if the household states that his/her future work hours and wages will differ from prior work patterns, the CWD shall not use the prior work patterns to determine the income for the QR Payment Quarter.

HANDBOOK BEGINS HERE

Example: A teacher's aide works part time from September through June 5 of every year. Historical case data indicates that she has also worked every year through the summer as a tour guide at the zoo. She did not report the summer job on her QR 7. The CWD will need to look at the case file for prior work information and must clarify with the recipient whether she is working or will be working during the summer months, as she has in previous years. Only after clarification is obtained can the CWD determine what income is reasonably anticipated when determining the food stamp benefit amount for the recipient.

HANDBOOK ENDS HERE

(b) Mandatory Mid-Quarter Changes to Benefits

Recipients may report mid-quarter changes in writing, verbally or in person to the CWD. If a recipient chooses to verbally report a mid-quarter change, the CWD shall document the report in the case file.

(1) Mandatory Recipient Mid-Quarter Reports

(A) Recipients are mandated to report the following changes to the CWD within 10 calendar days of the date the change becomes known to the household:

1. For both PAFS and NAFS households, address changes and the accompanying shelter cost changes;

2. For NAFS cases, any reduction in the number of hours worked to less than 20 hours per week or 80 hours per month for ABAWDs. Persons who are satisfying the ABAWD work requirement through a combination of education/training and employment of less than 20 hours per week are not subject to the mid-quarter requirement when hours of employment are reduced.

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-05-03 Effective 8/5/05

Page 376.37

FOOD STAMP REGULATIONS

63-509 (Cont.) ELIGIBILITY DETERMINATIONS Regulations

63-509 INCOME ELIGIBILITY AND BENEFIT CALCULATION 63-509

FOR QUARTERLY REPORTING (Continued)

(B) Action shall be taken on the food stamp case when the following mandatory CalWORKs changes are reported in the CalWORKs program:

1. Disqualifying drug felony convictions as specified in MPP Section 63-402.229;

2. Fleeing felon status;

3. Violation of conditions of probation or parole;

4. Income exceeds the IRT.

HANDBOOK BEGINS HERE

a. The CalWORKs IRT level is the greater of 130 percent of the FPL for family size or the level at which a family becomes financially ineligible.

b. The CalWORKs Program is responsible for informing recipients of their individual IRT levels.

c. The Food Stamp Program is responsible for monitoring the IRT change reported in the CalWORKs case and acting on the information as discussed in Section 63-212(d).

HANDBOOK ENDS HERE

(1) Disqualifying Drug Felony Conviction, Fleeing Felon Status, Parole/Probation Violations

Food stamp recipients are not required to report a change in disqualifying drug felon status or fleeing felon status or probation/parole violations mid-quarter. However, if a CalWORKs household reports disqualifying drug felon or fleeing felon status or a parole/probation violation, the CWD shall be required to act on the reported information in the food stamp case. The CWD must discontinue the individual from the PAFS household at the same time CalWORKs discontinues the individual, at the end of the month after 10-day notice can be provided.

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-05-02 Effective 7/1/05

Page 376.38

FOOD STAMP REGULATIONS

Regulations ELIGIBILITY DETERMINATIONS 63-509 (Cont.)

63-509 INCOME ELIGIBILITY AND BENEFIT CALCULATION 63-509

FOR QUARTERLY REPORTING (Continued)

(2) Change of Address – Move Out of State

This reporting requirement is applicable to both PAFS and NAFS households. A timely notice of action is not required if the CWD determines that the household will not be residing in the state. Action to discontinue the household shall be for the end of the month in which the change was reported. An adequate notice is required.

(3) Change of Address – Move Out of County

A PAFS household that moves out of county shall be discontinued from the prior county at the same time the transfer of the CalWORKs case is completed; the transfer is completed when the former county discontinues the CalWORKs case as specified in Section 63-503.7.

(A) NAFS households shall be terminated at the time an address change is reported in another county. (Continued)

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Example: PAFS Case

A household is currently living in County A. On February 5th, the household informs County A that she now lives in County B. Due to the CalWORKs transfer period, County A will continue benefits to the household until March 31st. County B will pick up the CalWORKs case on April 1st. FS benefits will be discontinued in County A on March 31st to coincide with the transfer period of the CalWORKs case. The household may reapply for FS benefits any time after moving to County B, but will not be eligible to receive FS benefits in County B until April 1st. County A is responsible for ensuring that the household can easily access FS benefits for February and March.

Example: NAFS Case

A household is currently living in County A. On February 5th, the household informs County A that she now lives in County B. FS benefits will be discontinued in County A effective the end of February and County A shall inform the household that a new application is needed in County B for food stamp benefits to resume.

HANDBOOK ENDS HERE

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-05-03 Effective 8/5/05

Page 376.39

FOOD STAMP REGULATIONS

63-509 (Cont.) ELIGIBILITY DETERMINATIONS Regulations

63-509 INCOME ELIGIBILITY AND BENEFIT CALCULATION 63-509

FOR QUARTERLY REPORTING (Continued)

(4) CalWORKs Income Exceeds the IRT

There is no mandatory mid-quarter recipient requirement to report income in excess of the IRT for the food stamp household. If the CalWORKs benefits did not change as a result of the report of IRT (the CalWORKs household was not discontinued), no further action is required in the PAFS case. However, for PAFS cases, if information regarding income that exceeds the IRT is reported in the CalWORKs program and results in discontinuance of CalWORKs benefits, the food stamp benefits must be recalculated as described below:

(A) If the CalWORKs household reports income that exceeds the IRT, the CWD shall determine if the CalWORKs household's benefits will be continued or discontinued.

(B) If CalWORKs benefits will be continued, no further action is required in the PAFS case.

(C) If the CalWORKs cash grant is discontinued, households whose CalWORKs benefits are discontinued shall be processed for Transitional Food Stamp Benefits (TFS).

(d) Voluntary Mid-Quarter Recipient Reports

Recipients may report mid-quarter changes in income and circumstances in writing, verbally or in person at any time during the quarter. The CWD shall only take mid-quarter action on those voluntary reports that result in an increase to benefits except as provided in Section 63-509(d)(8). Some mid-quarter reports that may increase benefits are, but not limited to, income decreases, someone moves into the home, an allowable deduction increases. If a recipient chooses to verbally report a mid-quarter change, the CWD shall document the report in the case file.

(1) Action to increase benefits shall be effective in the month the change actually occurs or is reported, whichever is later, and after all verification has been received.

(A) If the change occurred prior to the date of report, recalculate and increase benefits based on the date of report after verification is received.

(B) If the change will occur in a future month, recalculate and increase benefits based on the date the change is expected to occur after verification is received.

(2) Voluntarily reported changes may result in an increase in benefits for one program (CalWORKs), while decreasing benefits for the other program (Food Stamp Program). Action shall be taken to increase benefits in the one program, while suppressing the decrease to the other program's benefits.

(3) Verification shall be requested immediately from the recipient when there is a decrease in income or a new household member is reported in the household, or for other changes that would require verification when benefits are increased. Action to increase benefits shall not take place until verification is received. The recipient shall be allowed 10 days to provide the requested verification.

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-05-03 Effective 8/5/05

Page 376.40

FOOD STAMP REGULATIONS

Regulations ELIGIBILITY DETERMINATIONS 63-509 (Cont.)

63-509 INCOME ELIGIBILITY AND BENEFIT CALCULATION 63-509

FOR QUARTERLY REPORTING (Continued)

(4) The effective date for increases in benefits is determined differently for increases due to decreased income than for increases due to adding household members. Those effective dates are as follows:

(A) Increases due to decreased income are effective the first of the month in which the change is reported or the month the change occurred, whichever is later.

(B) Increases due to the addition of new household members are effective the first of the month following the report of the change.

(5) When a household includes two members with income and one member experiences a decrease in income, only the decreased income of the one member is used to recalculate benefits.

(6) If there are different sources of income received by the household and a decrease is reported for one of the sources, the CWD shall recalculate benefits using only the income from the decreased source. The recalculated income shall be added to the existing averaged household’s income.

(7) A "No Change NOA" shall be sent to the recipient when benefits cannot be increased. The "No Change NOA" must be sent within 30 days of the reported change. The NOA must remind the recipient to re-report the change on the QR 7.

The NOA must remind the recipient to re-report the change on the QR 7.

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The QR 377.4 has language under the "No Change in Benefits" check box that informs households that any voluntarily reported changes must be reported again on the next QR 7 and supported with verification of the change.

CWDs have the option of beginning to process voluntary mid-quarter reports prior to the end of the quarter that do not result in a change in benefits. However, the CWD must ensure that the information reported on the QR 7 is consistent with the “no change report” and information reported by the household.

HANDBOOK ENDS HERE

(A) If information on the QR 7 is inconsistent with what was previously voluntarily reported mid-quarter, action shall be taken to resolve the discrepancy and to determine the actual current household circumstances.

(B) The discrepancy should first be attempted to be resolved by contacting the recipient. If this contact is not possible, the QR 7 shall be considered incomplete.

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-05-03 Effective 8/5/05

Page 376.41

FOOD STAMP REGULATIONS

63-509 (Cont.) ELIGIBILITY DETERMINATIONS Regulations

63-509 INCOME ELIGIBILITY AND BENEFIT CALCULATION 63-509

FOR QUARTERLY REPORTING (Continued)

(C) If a Non-Assistance Food Stamp (NAFS) household voluntarily reports income over 130 percent of the Federal Poverty Level (FPL), the household shall be discontinued mid-quarter. Only voluntarily-reported income exceeding 130 percent of the NAFS household, excluding the mid-quarter report of a new household member and his/her income shall render the NAFS household ineligible (refer to Section 63-509(f)(4)(A). Only voluntarily-reported income exceeding 130 percent FPL excluding the mid-quarter report of a new household member and his/her income, shall render the NAFS household ineligible [refer to Section 63-509(f)(4)(A)].

(e) Action on Voluntary Mid-Quarter Recipient Reports

To determine if the voluntary reported change results in increased benefits mid-quarter, a recalculation of benefits for the current and remaining months of the quarter using the new income that the household reasonably expects to receive is required. If the anticipated income will be different in each of the remaining months of the quarter and the recipient knows with reasonable certainty what the amount would be for each month, the new income shall be averaged for the current and remaining months in the quarter.

(1) When the CalWORKs grant is supplemented, the new CalWORKs grant amount to be used in the FS budget will include the original CalWORKs grant, as well as the additional CalWORKs supplement.

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Example 1: A household of three is receiving cash aid of $192 and FS benefits of $165. The grant amount was based on the mother having earned income of $1200 per month. In the April/May/June quarter, the mother reports on April 5 that she lost her job the day before. She will only receive one more paycheck that month for $600, and anticipated no additional income after that. The CWD immediately requests verification of the job loss, and the recipient provides it by April 10. The CWD uses the new income to recalculate benefits for that month, as well as for the remaining months of the current quarter as follows:

Recalculation of averaged income:

$600 (April Actual)

+ 0 (May anticipated)

+ 0 (June anticipated)

$600

Divide the total by 3 (the number of months for which new income is expected) = $200 per month. After re-computing the current and remaining months in the Quarter, the new CalWORKs grant is $679.

HANDBOOK CONTINUES

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-05-03 Effective 8/5/05

Page 376.42

FOOD STAMP REGULATIONS

Regulations ELIGIBILITY DETERMINATIONS 63-509 (Cont.)

63-509 INCOME ELIGIBILITY AND BENEFIT CALCULATION 63-509

FOR QUARTERLY REPORTING (Continued)

HANDBOOK CONTINUES

Food Stamp Program Computation:

Average Monthly Income 200

Add New CalWORKs Grant +679

Less Earned Income Deduction - 40

Less Standard Deduction -134

Subtotal $705

Less Excess Shelter Deduction $350

Net Income $355

New Allotment Amount $259

Benefits Received -165

Supplement for April $ 94

Example 2: Using the same scenario as in Example 1, except that the mother reports on May 5th that she lost her job and will only get one paycheck for $600 in May and expects no income for June.

Recalculation of averaged income:

+ $600 (May actual/anticipated)

+ 0 (June anticipated)

$600 ÷ 2 = $300

The new CalWORKs grant amount is $642 after re-computation.

Food Stamp Program Computation:

Average Monthly Income $300

Add New CalWORKs Grant +642

Less Earned Income Deduction - 60

Less Standard Deduction -134

Subtotal $748

Less Excess Shelter Deduction -350

Net Income $398

New Allotment Amount $246

Benefits Received -165

Supplement for May $ 91

HANDBOOK ENDS HERE

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-04-07 Effective 7/1/04

Page 376.43

FOOD STAMP REGULATIONS

63-509 (Cont.) ELIGIBILITY DETERMINATIONS Regulations

63-509 INCOME ELIGIBILITY AND BENEFIT CALCULATION 63-509

FOR QUARTERLY REPORTING (Continued)

(2) If decreased income is reported for the first time on the QR 7 rather than as a mid-quarter voluntary report, the CWD shall treat the report of decreased income as a voluntary mid-quarter report in order to determine if a supplement should be issued in the Submit Month.

HANDBOOK BEGINS HERE

Household changes that occur in the Submit Month and are reported on the QR 7 will be considered voluntary mid-quarter reports, and acted upon as such.

HANDBOOK ENDS HERE

(3) If a recipient has reported a voluntary mid-quarter decrease in income or increase in food stamp expenses, and the CWD has taken appropriate action to increase the cash aid and/or FS benefits, the CWD shall not take action to adjust benefits again if the recipient reports the same change later in the quarter.

HANDBOOK BEGINS HERE

The household includes a mother and two children. The mother was working full-time and receiving $1200 per month gross earnings. On May 5 of an April/May/June quarter, the mother reports that she lost her job and expects to receive one last paycheck in May for $600 and no income for the month of June. The CWD recalculates benefits for May and June, using $300 per month gross income (the new averaged income amount), and issues a food stamp supplement to the household for May and increases the June allotment. In June, the mother calls her worker and reports that she will not receive any income in June. Since the zero income amount has already been taken into consideration when calculating May and June benefits, the CWD would not act on the mother's report of "decreased" income in June.

HANDBOOK ENDS HERE

(4) In any instance where two or more changes are reported to the CWD at the same time, the CWD must evaluate each change separately and according to the sequence of occurrence, keeping in mind the timing of when benefits can be increased based on decreased income and new household members being added to the household unit. The evaluation of separate events is also applicable to reports of mandatory reports of changes.

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-05-03 Effective 8/5/05

Page 376.44

FOOD STAMP REGULATIONS

Regulations ELIGIBILITY DETERMINATIONS 63-509 (Cont.)

63-509 INCOME ELIGIBILITY AND BENEFIT CALCULATION 63-509

FOR QUARTERLY REPORTING (Continued)

HANDBOOK BEGINS HERE

Example: A household consists of mother and one child. The QR Payment Quarter is January/February/March. A second child enters the home on January 5th and the mother loses her job on January 7th. Both changes are reported to the CWD on January 9th. The first change occurred on January 5th where the job was lost. Since this is a mid-quarter change, benefits can be increased mid-quarter. The second change occurred on the 7th with the second child entering the home. The child is eligible and is included in the household effective February 1st.

HANDBOOK ENDS HERE

(f) Household Composition Changes Reported Mid-Quarter

Recipients may voluntarily report changes in household composition at any time during the quarter. Action should only be taken on those changes that result in an increase to the household's benefits.

If the change results in increased benefits, action shall be taken to add the person effective the first of the month following the month in which the change was reported, after all verification has been provided. If it does not result in an increase, no action shall be taken to change the household's benefits until the following quarter.

(1) The following are steps to be taken when a new person is reported in the home.

(A) Review eligibility for the new person in accordance with Food Stamp Program regulations as an initial step to determine if the new household member should be included as part of the household.

(B) If the new person should be included in the household, determine if the household meets all non-financial eligibility criteria.

(C) If the household meets all non-financial eligibility criteria with the addition of the new person, continue to determine if the new person has income that should be included in the benefit calculation.

(D) Run a test benefit calculation to determine if adding the person and his/her income to the pre-existing household's income would result in an increase or decrease to the household's benefits. Add the new person’s income for the months in which they would be added to the household. The existing household's income shall not be reaveraged to include the new household member's income.

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-05-03 Effective 8/5/05

Page 376.45

FOOD STAMP REGULATIONS

63-509 (Cont.) ELIGIBILITY DETERMINATIONS Regulations

63-509 INCOME ELIGIBILITY AND BENEFIT CALCULATION 63-509

FOR QUARTERLY REPORTING (Continued)

(E) When taking action to add the new person into the household, include the new person's income along with the household's pre-existing income to recalculate benefits for the month the person is added to the household and any remaining months in the quarter. The existing household's income shall not be reaveraged to include the new household member's income.

(2) Adding a New Household Member Mid-quarter

(A) When all verification is received, all eligibility factors are met and the addition of the new person results in increased benefits, add the new household member to the household and increase benefits to the household, as a mid-quarter change, effective the first of the month following the month in which the change was reported.

(B) In any circumstance where the new household member has income, only that member’s income is averaged over the remaining months in the quarter. The new household member’s averaged income is then added to the existing household’s averaged income to determine if benefits are to be increased or would result in a decrease mid-quarter. The new household member’s averaged income is used to calculate benefits only for the months in which the new member is included in the household.

HANDBOOK BEGINS HERE

Example 1: The CWD is currently aiding a two-person household consisting of a mother and child. The designated quarter for this example is January/February/March. The mother voluntarily reports in February that the father moved into the home in February and the father has no income. After establishing eligibility for the father, the CWD adds him to the household effective March 1.

Example 2: Same scenario as in Example 1 except the mother does not voluntarily report the father as moving into the home in mid-quarter. She waits until she submits the QR 7 in March to report that the father moved in during February. The CWD would add the father to the household effective the first of April.

HANDBOOK ENDS HERE

(3) Household Composition Change Results in Decreased Benefits

(A) If the result of a new person reported in the household decreased benefits, no action shall be taken to decrease benefits mid-quarter. A NOA shall be sent to the household informing them that the voluntary report of the new person did not increase benefits. The NOA shall remind the household to report the new person and any income or property he/she has on the next QR 7.

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-05-03 Effective 8/5/05

Page 376.46

FOOD STAMP REGULATIONS

Regulations ELIGIBILITY DETERMINATIONS 63-509 (Cont.)

63-509 INCOME ELIGIBILITY AND BENEFIT CALCULATION 63-509

FOR QUARTERLY REPORTING (Continued)

1. The CWD shall treat notification of a recipient death mid-quarter as a voluntary recipient report for discontinuance of benefits for the deceased individual. If the information was received verbally, the CWD shall discontinue benefits at the end of the month in which timely and adequate notice can be provided. If the information was received in writing, the CWD shall discontinue at the end of the month with only adequate notice.

(B) Information reported on the QR 7 shall be used in the determination of eligibility and benefit level for the upcoming quarter. The earliest the benefits could be decreased is the first of the next Payment Quarter provided 10-day notice is given. Discontinuance of benefits for ineligibility shall occur at the end of the Submit Month.

(4) New Person Results in Financial Ineligibility or Ineligibility Due to Other Eligibility Factors

If addition of the new person would render the household ineligible mid-quarter, no action shall be taken to change the household's benefits. A NOA shall be sent to the household informing them that the voluntary report of the new person did not increase benefits and that the household is responsible for reporting the new person and his/her income/property on the next QR 7. The earliest that food stamp benefits can be discontinued is the end of the Submit Month.

(A) Only voluntarily reported income exceeding 130 percent of FPL of the NAFS household, excluding the mid-quarter report of a new household member and his/her income, shall render the NAFS household ineligible per Section 63-509(d)(8).

(g) Voluntary Recipient Request for Discontinuance of Benefits

Benefit adjustments shall be made mid-quarter when a recipient requests discontinuance of benefits. A recipient may voluntarily request mid-quarter that the entire household be discontinued; or for any individual member of the household who is no longer in the household.

(1) Recipient Makes a Verbal Request for Discontinuance of Benefits

A verbal request shall require that a 10-day notice be sent before discontinuance or a decrease in benefits can be made at the end of the month. A written request shall require that an adequate notice be sent at the end of the month.

(2) Recipient Makes a Written Request for Discontinuance of Benefits

A voluntary mid-quarter report of someone leaving the home shall not be assumed to mean that it equates to a voluntary request for discontinuance of the household member. A determination must be made to determine whether the voluntary mid-quarter report of someone leaving the household is actually a request of discontinuance by contacting the household to clarify the report and to inform the household that a discontinuance of the individual will result in decreased benefits mid-quarter. Discontinuance of the individual shall occur only if he/she is out of the home or is considered a separate household member.

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-05-03 Effective 8/5/05

Page 376.47

FOOD STAMP REGULATIONS

63-509 (Cont.) ELIGIBILITY DETERMINATIONS Regulations

63-509 INCOME ELIGIBILITY AND BENEFIT CALCULATION 63-509

FOR QUARTERLY REPORTING (Continued)

(h) County-Initiated Mid-Quarter Actions

In addition to making mid-quarter adjustments to benefits as a result of mandatory and voluntary recipient reports mid-quarter, action shall also be taken on certain changes in eligibility status at the end of the month in which timely and adequate notice can be provided to the household.

(1) Changes Resulting in County-initiated Actions Mid-Quarter

The changes that are considered county-initiated and that can occur at any time during the quarter:

(A) Sanctions or financial penalties;

(B) Failure of the household to comply with a Quality Control Review.

HANDBOOK BEGINS HERE

Example 1: Curent quarter is Jan/Feb/March. The current food stamp household consists of a mother and two children. On February 4th, one of the children goes to live with grandmother. Grandmother comes in to apply for food stamps for the child on February 5th. Since duplicate aid cannot be authorized for the child now living with the grandmother, the child must be deleted effective the end of February with a 10-day NOA from the mother's food stamp household, and aid will be authorized effective the first of March for the grandmother and the child. The application for February will be denied for the child; however, if the grandmother was eligible, aid would be granted for her.

Example 2: Current quarter is Jan/Feb/March. The current food stamp household consists of a mother and two children. On February 4th one of the children goes to live with grandmother. Grandmother comes in to apply for food stamps for the child on February 25th. Since duplicate aid cannot be authorized for the child now living with the grandmother, the child must be deleted effective the end of March with a 10-day NOA from the mother's food stamp household, and aid will be authorized effective the first of April for the child. The application for February and March will be approved for the grandmother if eligible, and denied for the child.

HANDBOOK ENDS HERE

(D) Discontinuances due to the termination of a CalWORKs inter-county transfer as described in Section 63-503.7;

(E) Status changes in the California Food Assistance Program (CFAP).

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-05-03 Effective 8/5/05

Page 376.48

FOOD STAMP REGULATIONS

Regulations ELIGIBILITY DETERMINATIONS 63-509 (Cont.)

63-509 INCOME ELIGIBILITY AND BENEFIT CALCULATION 63-509

FOR QUARTERLY REPORTING (Continued)

(F) Cost-of-Living adjustments (COLAs) for the Food Stamp Program, CalWORKs, General Assistance and for those COLAs administered by the Social Security Administration.

(G) Adjustments due to erroneous or incomplete recipient QR 7 or mid-quarter reports of information or lack of action by the county on the QR 7 or mid-quarter recipient reports.

(H) The three-month time limit for an ABAWD ends or an ABAWD who has regained eligibility and subsequently stops meeting the work requirements.

(I) Discontinuance due to an ineligibility determination when recertification falls outside the Submit Month.

(2) County-Initiated Actions To Be Taken at the Beginning of the Quarter

An exception to mid-quarter county-initiated actions occurs when adjustments/reductions to benefits are begun for recoupment of an O/I per Sections 63-801.44 and .45. This action shall be taken at the beginning of a quarter.

(3) Known to County Information

(A) Use of Known to County Information

Information that is "known to county" and is considered information that is subject to mandatory reporting shall be used to:

1. Calculate an OI when the information received is obtained after benefits have been issued, such as in the case of Income and Eligibility Systems (IEVS) matches; and

2. Take prospective action to change benefits mid-quarter or at the beginning of a quarter if information reported by the recipient does not accurately reflect a mandatory mid-quarter report of information or information reported on the QR 7.

(B) CWD Action on Public Assistance (PA) Changes Known to CWD

1. Changes to PA benefits shall be considered information that is known to county.

2. All changes to PA benefits shall be reviewed by the CWD for possible benefit increases or decreases by calculating a new budget.

3. Food stamp benefits shall be increased if the calculation indicates such an increase.

4. If a mid-quarter decrease is indicated, benefits cannot be decreased.

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-05-03 Effective 8/5/05

Page 376.49

FOOD STAMP REGULATIONS

63-509 (Cont.) ELIGIBILITY DETERMINATIONS Regulations

63-509 INCOME ELIGIBILITY AND BENEFIT CALCULATION 63-509

FOR QUARTERLY REPORTING (Continued)

HANDBOOK BEGINS HERE

Example 1: A county becomes aware that the CalWORKs grant has decreased mid-quarter. The CWD will calculate the impact on food stamp benefits to determine if benefits can be increased or decreased. If the calculation indicates an increase, the CWD will supplement/increase benefits. Benefits would not decrease mid-quarter. This is an exception to the general QR rule that do not permit an increase to benefits mid-quarter unless they are reported by the household as described in the next example.

Example 2: A county becomes aware of known to county information that UIB being budgeted is exhausted. There are two months remaining in the QR Payment Quarter. The county will not act on this information to increase benefits. The recipient must report that UIB is ending before benefits can be increased mid-quarter.

HANDBOOK ENDS HERE

(C) CWDs shall not act on information “known to county” that is not required to be reported, even if benefits could be increased mid-quarter based on the given information. The recipient must report a change before benefits will be increased.

(i) Third Party Information

Third party information is not known to the county and is a report from an anonymous source about a household’s circumstances.

(j) CWD Action on Information Obtained from Match Systems

(1) The CWD shall consider information received from match systems such as the Income and Eligibility Verification System (IEVS), the Payment Verification System (PVS), and other such sources for purposes such as:

(A) To determine if information reported on QR 7s is accurate;

(B) To determine if a fraud referral or an overissuance claim/adjustment is necessary;

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-05-03 Effective 8/5/05

Page 376.50

FOOD STAMP REGULATIONS

Regulations ELIGIBILITY DETERMINATIONS 63-509 (Cont.)

63-509 INCOME ELIGIBILITY AND BENEFIT CALCULATION 63-509

FOR QUARTERLY REPORTING (Continued)

HANDBOOK BEGINS HERE

The following examples apply only to Public Assistance households:

Examples of Match Systems information include, but are not limited to: Eligibility Verification System (IEVS), Payment Verification System (PVS), Integrated Fraud Detection/Earnings Clearance System (IFD), Franchise Tax Board (FTB), Asset Match/Internal Revenue Service (IRS) Match, Beneficiary Earnings Exchange Record (BEER), New Hire Registry (NHR), other matches from special investigative units, and known information from CalWORKs or other assistance programs.

HANDBOOK ENDS HERE

(k) Resolving Conflicting Information Based on Third-Party/Known to County Reports

The recipient shall be contacted and informed that eligibility information is in question. The recipient shall be given the opportunity to verify the correct circumstances before action is taken to reduce/correct benefits. Action shall not be taken mid-quarter based on third party information regarding changes that the household is not required to report during the quarter.

(l) Treatment of Multiple Changes Within A QR Payment Quarter

Multiple changes during a QR Payment Quarter shall be acted upon in accordance with QR/PB rules for mandatory and voluntary recipients reports, and on county-initiated and third-party reports. Each change shall be acted upon separately, using the rule that is unique to that type of change. Circumstances shall not be combined to effect a change in benefits.

A household may voluntarily report a change that does not result in an increase to benefits, and later in the quarter, report another change that was required to be reported, which would result in a decrease to benefits. A change shall not be made to benefits based on the voluntary report; however, benefits shall be decreased later based on the mid-quarter report. The decrease in benefits shall be based solely on the circumstances resulting from the mandatory report.

HANDBOOK BEGINS HERE

Example 1: The quarter is January/February/March. On January 15, the household reports that the father moved back into the home, and he has a part-time job. In reviewing whether the household would be entitled to an increase as a result of new household member, the CWD determines that earnings from the father's job would result in a decrease to the household's benefits. The CWD is unable to add the father to the household the first of February because QR/PB rules do not allow for benefits to be decreased as a result of a voluntarily reported mid-quarter change.

HANDBOOK CONTINUES

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-05-03 Effective 8/5/05

Page 376.51

FOOD STAMP REGULATIONS

63-509 (Cont.) ELIGIBILITY DETERMINATIONS Regulations

63-509 INCOME ELIGIBILITY AND BENEFIT CALCULATION 63-509

FOR QUARTERLY REPORTING (Continued)

HANDBOOK CONTINUES

On January 17, the household reports that the mother violated conditions of her parole. The CWD must take action to remove the mother from the household effective January 31, because she is ineligible. The CWD decreases benefits to the remaining household members effective February 1. When decreasing February benefits, the CWD may not take action to add the father and his earned income at the same time as discontinuing the mother. The CWD may only take action to add the father and his income at the beginning of the next QR Payment Quarter when the household has submitted the QR 7 for February, reporting that the father is still in the home and has the same level of income.

Example 2: The current payment quarter is January, February, and March. The household consists of a mother and child. The mother reports that the father, who is earning $900, moved into the home on January 10th. Adding the father from February 1st reduces benefits to the household, so the father must be evaluated for the upcoming payment quarter (April, May, and June). The father loses his job on February 10th. The mother reports the father's job loss on February 13th. The new report is that father is requesting to be added and he has reduced income. The change in circumstances caused by the job loss is a new mid-quarter report. The father can now be added to the household effective March 1st.

HANDBOOK ENDS HERE

(m) Changes Held Until Next Quarter

Changes that occur in the current quarter but shall not take effect until the upcoming QR Payment Quarter include: third month reporting of a new household member that increases benefits and adjustments to begin collection of O/Is.

(n) Restorations and Reapplications Under QR/PB

(1) When a household has been sent a discontinuance notice and the effective date of the discontinuance is pending and the circumstances that made the household ineligible have changed, benefits shall be reinstated and the discontinuance rescinded.

(2) When an application has been denied or the case discontinued, the household must reapply for benefits and be treated as a new applicant. Benefits shall be prorated from the new application date.

NOTE: Authority cited: Sections 10553, 10554, 11265, 18901.3, 18904, and 18910, Welfare and Institutions Code; Reference: Sections 10554, 11265.1, .2, and .3, 18901.3, 18904, and 18910, Welfare and Institutions Code; and Federal Nutrition Service Quarterly Reporting/Prospective Budgeting waiver approval dated April 1, 2003; and the Farm Security and Rural Investment Act of 2002 (P.L. 107-171) [ 7 U.S.C. 2014(e)(6)(C)(iii)].

CALIFORNIA-DSS-MANUAL-FS

MANUAL LETTER NO. FS-06-04 Effective 11/1/06

Page 376.52

(a)Income Eligibility and Grant Calculation for Quarterly…#

(i)information provided by an employer; and/or#

(ii)the source of income; and/or#