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• semi-monthly, • monthly, • quarterly, • semi-annually, • annually, • less often than monthly, or • irregular. 3405.10.00 BUDGET METHODS
Once the frequency of an income is determined, the method of budgeting the amount is determined.
The following sections list the various budget methods and the circumstances under which they are used. 3405.10.05 REGULAR BUDGET METHOD
Regular income is income received in the same amount each pay period with no variances.
The monthly amount is determined using the appropriate conversion factor as follows (f2): • The gross amount of income received weekly is to be multiplied by 4.3. • The gross amount of income received biweekly is to be multiplied by 2.15. • The gross amount of income received semimonthly is to be multiplied by 2.
Enter the amount of the income which corresponds to the frequency. The eligibility calculator will convert it to a monthly amount. 3405.10.10 FLUCTUATING BUDGET METHOD
Income which varies each pay is to be converted to a monthly amount. The client can request that the "averaging" method be used. Refer to 3405.10.15 for the averaging budget method.
The payments received during the months being reviewed are added together and the total is divided by the number of payments. Then, the appropriate conversion factor as explained in Section 3405.10.05 is applied.
A pay which is unusually high or unusually low should not be included in the calculation. The budget method "Exclude" should be entered for a pay which is not reflective of what can be expected to be received in the future. When utilizing the “Exclude” budget method extra care should be taken to ensure that it is being used appropriately. Any time “Exclude” is used there should be clear and thorough notes explaining why.
If "Exclude" is used in an application month, the pay amount will be included for the application month calculation but will be skipped for months past the application month.