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3. Subtract the average monthly operational expense from the average monthly gross income to determine adjusted gross income. (Refer to IX. for computation). Use this amount to determine eligibility.

F. Conversions

1. Upon receipt of the verified base period income, total the income for each pay/benefit period. Divide by the number of pay periods. This is the average income.

2. Convert the average income to a gross monthly amount.

a. If received weekly, multiply by 4.3.

b. If received bi-weekly, multiply by 2.15.

c. If received semi-monthly, multiply by 2.

d. If received monthly, use the monthly gross.

e. If salaried, and contract renewed annually, divide annual income, etc., by 12.

EXAMPLE: Applicant receives income bi-weekly. On Sept. 7, he received $300 gross and on 9-21, he received $300 gross. $300 plus $300 = $600. Divide $600 by 2 (number of pay periods received and used). This equals $300 (average income). Convert the $300 by multiplying $300 by 2.15 = $645.00 (countable gross monthly income).

V. CHANGES AND/OR TERMINATED INCOME

A. Definition of Changes

1. Earned Income

a. Change is defined as beginning employment, increase or decrease in rate of pay, or increase or decrease in the required number of hours worked. Beginning employment includes initial employment as well as change of job with same or different employer.

b. Do not consider fluctuating wages or hours as a change.

2. Unearned Income