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The following sections list the IEDSS budget methods and the circumstances under which they are used.

3405.10.05 REGULAR BUDGET METHOD The monthly income is calculated by values entered in the Frequency and Amount fields. Additional pay record details that impact income budgeting principles include, type, income date, amount, actual/anticipated, reason to exclude from average, and if applicant/member requested income to be averaged. Actual income refers to pay that have been received. Anticipated income refers to pays that must be projected. Regardless of income type, the monthly amount is determined using the appropriate frequency conversion factor as follows:

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 semi-monthly is to be multiplied by 2.

The gross amount of income received quarterly is to be divided by 3. IEDSS automatically calculates a monthly and annual amount based on values entered in the amount and frequency fields. Annual calculation includes money that an individual, business, or asset will earn over the course of a year. Annualized income can be calculated with less than 12 months of income. Example: Member only works 8-9 months a year and the income is intended to meet the household’s needs for the entire year. To calculate the annual income for the household IEDSS uses the income received for the specific calendar year and then divides it by 12 months. 3405.10.10 FLUCTUATING BUDGET METHOD Actual (all or some of pay records that have been received and verified) or Anticipated (used when income must be projected) income is converted to a monthly amount in IEDSS using the "fluctuating budget method" unless the client requests that the "averaging" method be used. Fluctuating method:

IEDSS defaults to the Fluctuating Budget method unless Averaging Methods are selected. The actual or anticipated 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 payment that is unusually high or low, infrequent, or irregular should be excluded in the budget calculation. The budget factor