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Chapter: 2400 Budgeting Income Program: MFAM 31 not expected to recur at four week intervals, the breaks will be disregarded in computing the average. Such a break without pay might be due to illness, a death, vacation, employer leaving town, and the like. When such breaks are part of the pattern of the applicant/recipient's employment, the weeks are taken into consideration in computation of the average (for example, construction workers).

When the applicant/recipient begins employment by working only a partial week, thus having lower wages for that week only, the initial partial week should not be included in the average used to compute the budgeted income.

Unearned income such as spousal support may be averaged using the same procedures. 2430.0501 Averaging Fluctuating Income (MFAM) To average income, consider the standard filing unit’s anticipation of monthly income fluctuations over the eligibility period. When averaging income, use the most recent consecutive four weeks or the best available information when it is representative of the individual’s future earnings.

When the most recent consecutive four pay stubs are provided and there are no major changes in pay or number of work hours, project future monthly earnings on an average of the four pay stubs provided.

When the most recent consecutive four pay stubs are provided and there has been a change to the hourly rate of pay or work hours use the most recent pay stub(s), which are representative of future earnings. 2430.0505 Less than a Four Week Average (MFAM) When a shorter than four week average is to be computed, use the number of weeks available up to four at the new amount, to compute the revised average. When the applicant/recipient has just begun employment and only one full week's earnings are available or only the wage and hours are known, compute the budget based on the best information available. 2430.0509 Income More Often than Monthly (MFAM) The following procedure to calculate the average of earned or unearned income received in varying amounts more frequently than monthly is the same for all programs:

1. Add the gross income amounts for the past four weeks to get the total. 2. If income is received weekly, add four pay periods and divide by four to get the weekly average. 3. If income is received biweekly, add two pay periods and divide by two to get the biweekly average. 4. If income is received semimonthly, add two pay periods and divide by two to get the semimonthly average. 5. If income is received monthly, use the most recent month if representative.

The result of the above is called the averaged amount. With the exception of monthly amounts, the averaged amount described above must be converted to a monthly amount.

Note: When an individual has just begun or terminated a job in the current month, a full month's income is not budgeted but only that amount received in the month or anticipated to be received. 2430.0600 ROUNDING (MFAM) When it is necessary to divide because of averaging or prorating, round the resulting amount to the nearest cent as follows: