1 Appendix 3300 Change #5-2016 October 1, 2016 APPENDIX 3300 Glossary Change #5-2016 October 1, 2016

3300.01 PROGRAMS

Program Name: Program Description:

Crisis Intervention Program (CIP) CIP is a program which provides assistance to low-income families who are experiencing or in danger of experiencing a heating or cooling- related emergency.

Low Income Energy Assistance Program (LIEAP) LIEAP provides for a one-time cash payment to help eligible families pay their heating bills.

Medical Assistance Assistance (Medicaid, MA) A program to assist eligible aged, disabled, blind individuals, pregnant women, families and/or children with the cost of medical care under Title XIX of the Social Security Act.

North Carolina Health Choice A publicly funded program that helps working parents provide health insurance for their children at either low or no cost.

SA Special Assistance (Domiciliary Care) Cash payments and medical assistance for eligible aged, disabled, and blind individuals residing in a domiciliary care facility.

SA Special Assistance (Certain Disabled) Cash payment only for individuals in a private living arrangement who meet the state’s definition of disability. (This program is not available in all counties.)

Work First Family Assistance (WFFA) A program which provides a money payment and medical assistance to certain relatives and children when the children have been deprived of parental support and care due to the death, physical or mental incapacity, continued absence of either parent from the home, or unemployment of one or both parents.

3300.02 DEFINITIONS

Term: Definition:

Absent Parent Any individual who does not have custody of a dependent child but is legally responsible for providing financial support for that dependent child.

Able-bodied Adult without Dependent (ABAWD) Physically and mentally fit individuals from the ages of 18 through 49, included in a Food and Nutrition Services (FNS) unit that does not include a person under age 18.

Automated Collection and Tracking System (ACTS) Comprehensive computer system that tracks activities and payments in the North Carolina Child Support Program and performs automated case activities to assist the caseworker.

Administrative Disqualification Hearing (ADH) A hearing initiated by the county department of social services to determine if an individual has committed an Intentional Program Violation (IPV).

Alien Any person who is not a citizen or native of the United States.

Alimony Court ordered financial support that is to be paid to one's former spouse.

Allotment The total value of food stamp benefits a household is authorized to receive each month.

Applicant An individual who applies for benefits for himself or on behalf of others.

2 Appendix 3300 Change #5-2016 October 1, 2016 Application A written request for assistance that is signed by an applicant or his authorized representative under penalty of perjury.

Application Process A series of actions beginning with a signed application leading to a determination of eligibility for assistance.

Approval Authorization of benefits after all eligibility factors are met.

Authorized Status of individuals who have met all eligibility factors and are receiving benefits.

Authorized Representative An individual who acts on behalf of a Food and Nutrition Services unit (FNSU). In the Food and Nutrition Services Program, the authorized representative must be designated in writing by the head of the household, spouse, or other responsible household member.

Available Accessible or obtainable by a FNSU.

Award Letter A statement to an individual from a governmental or private agency indicating benefits for which he is eligible.

Base Period A designated time for verifying income that is counted in determining the benefit.

Basic Utility Allowance (BUA) A fixed Food and Nutrition Services deduction for utilities when the household incurs at least two non-heating/non-cooling utility expenses which are billed separately from rent or mortgage.

Bendex Beneficiary Data Exchange. A computerized match of a recipient's social security benefit amount.

Benefit Month The month in which a client receives benefits.

Boarder A person who lives in a household and pays a set amount for room and meals.

Bonds

A certificate or evidence of debt on which the borrower promises to pay the bondholder a specified amount of interest and principal on a certain date.

Burial Plan

--Irrevocable

--Revocable A contract whereby the funeral home or insurance company agrees to provide a burial as agreed upon in the contract. There are two types: --These plans do not allow the individual to get a refund as stipulated in the contract. These plans cannot be cashed in upon request. --These plans can be cashed in upon request.

Burial Plot A portion of ground set apart for burial.

Case File A file containing the application and all documents verifying initial and continuing eligibility for members of the assistance unit.

Categorically Eligible FNSU’s that consist entirely of Work First and/or SSI recipients; or at least one member of the FNSU is authorized to receive an available service from Work First Employment Services; or the income of the household is at or below the 200% maximum allowable gross income and the household does not contain disqualified individuals.

Certificate of Deposit (CD)

A written acknowledgment by a banker with promise to pay the depositor the sum plus interest at a given time. There is usually a penalty if the funds are withdrawn early.

Certification Period A defined period of time for which eligibility has been determined.

Change in Situation A change in a recipient's circumstances which may affect eligibility for assistance.

3 Appendix 3300 Change #5-2016 October 1, 2016 Child Support Money or in-kind goods given for a child by a parent for the child's care.

Client A term used to refer to applicants and recipients.

Closing Date The last day of the month in which the applicant/recipient is eligible for benefits.

Collateral A person or agency that gives an oral confirmation of a household’s circumstances.

Combined Funds A bank account consisting of separate and jointly shared funds that are combined with excluded funds in such a manner that neither can be distinguished from the other.

Commingled Funds Also referred to as combined funds.

Communal Dining Facility A public or non-profit private establishment, approved by Food and Nutrition Service, which prepares or serves meals for elderly persons or for SSI recipients and their spouses.

Community Alternatives Program Special Medicaid for individuals placed in the communities who are at risk for institutionalization.

Confidentiality Safeguarding client information.

Contested Decision A tentative state hearing decision with which a county or the applicant/recipient disagrees.

Contiguous Property Real property with boundaries which touch the home site property, disregarding the presence of streets, roads, rivers, or streams.

Contract Sale The transfer to property from one party to another with either a verbal or written agreement to pay a certain amount for the property, usually paid in installments.

Contribution Donation of cash or in-kind made by an individual to or on behalf of a member of the budget unit.

Court Orders Decisions made by judges in courts of competent jurisdiction that specify changes and/or procedures the State and county departments must follow (i.e., Alexander v. Hill, Blue v. Craig, child support, custody).

Custodial Parent The parent who has custody of the child(ren) when both parents do not live together.

Deductible The amount over the income level which must be paid or incurred by the client for medical expenses prior to authorization for Medicaid.

Deduction Allowable expenses subtracted from income.

Deemed The process of considering income and reserve of persons in the household or sponsors of non-exempt aliens.

Denial Rejection of benefits of the application.

Deprivation Lack of parental support or care of a dependent child due to the continued absence, incapacity, death, or unemployment of either parent.

Dependent An individual who is financially dependent upon another for his well-being.

Deregistration The process by which an individual is removed from work registrant status.

4 Appendix 3300 Change #5-2016 October 1, 2016 Destitute Households A migrant or seasonal farm worker household whose terminated income was received prior to the date of application and/or no more than $25 will be received from a new source by the tenth day of the month of application.

Determination of Eligibility The process of verifying eligibility factors for persons applying for assistance.

Disability A physical or mental condition of such severity that it precludes the person from engaging in substantial gainful activity as determined by Disability Determination Services based on SSI guidelines.

Disqualified Individual An individual removed from Food and Nutrition Services benefits due to an IPV or for failure or refusal to comply with all program requirements.

Disregard of Income The procedure for exempting certain portions of income when determining benefits.

Documentation Recorded data substantiating all points of eligibility.

Documentary Evidence A written confirmation from a person or agency of a FNSU’s circumstances.

Domiciliary Care Facility Licensed group care facility.

Eligibility Information System (EIS) An automated system which contains information pertinent to an individual's eligibility to receive benefits under a number of public assistance programs.

Elderly A person age 60 or over.

Eligible Alien A person who is not a United States citizen but who meets the alien status requirements in Section 225.

Encumbrance A claim, lien, charge, or liability.

Equity The value of property after encumbrances has been subtracted.

Emancipated Minor An individual who is under age 18 who marries, becomes a member of the U. S. Armed Forces, or is declared emancipated by the court.

Escrow Account A bank account generally held in the name of the depositor and the escrow agent (usually the mortgage holder) which is used to pay taxes, mortgage insurance, fire insurance, etc.

Expedited Service A procedure whereby the agency provides certain Food and Nutrition Services households an opportunity to receive benefits within a shortened timeframe.

Fair Market Value The amount an item would bring if sold on the current market.

Final Decision A decision by the State hearings officer after all non-judicial appeal rights have been exhausted.

Food and Nutrition Services A federal program which provides monthly benefits that help low- income households buy the food they need for good health.

Food and Nutrition Services Unit (FNSU) A FNSU is a person or a group of people applying for or receiving Food and Nutrition Services benefits.

Food Stamp Information System (FSIS) An automated system which contains information pertinent to an individual's eligibility to receive Food and Nutrition Services benefits.

Forgery Signing someone else's name without proper authorization.

Fraud A criminal act in which an applicant/recipient or authorized representative makes a false statement and/or withholds information willfully, knowingly, and with deceitful intent and, as a result, obtains or attempts to obtain assistance for which he is not eligible.

Good Cause An acceptable reason for failure to comply with a regulation.

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Grandfathered Individuals who are eligible under new rules/regulations by virtue of their eligibility under previous rules/regulations.

Guardian A person appointed by a court to be legally in charge of the affairs of a minor or of someone incapable of taking care of his own needs.

Hearing A review requested by an applicant/recipient to establish whether an adverse action or eligibility determination taken by the county department of social services was correct. (See appeal.) --Local Hearing --A review before an impartial official of the county. --State Hearing --A review before an impartial official of the Division of Social Services.

Heir Property Property conveyed to a person at the death of the property owner.

Homeless An individual who lacks a permanent or fixed residence.

Homesite Principal place of residence owned by applicant/recipient or FNSU member.

Incapacitated A verified mental, emotional, or physical impairment that prevents a person from performing his normal duties

Incorporated A business is incorporated when it has been granted a charter legally recognizing it as a separate entity having its own privileges, rights, and liabilities distinct from other businesses and persons.

Illegal Alien A person who entered the United States without approval by the U.S. Citizenship and Immigration Services (USCIS) or who, after entering legally, remained in the United States past the time limit granted by USCIS without authorization.

Income Cash and/or in-kind resources which are available to members of the FNSU. --Earned Income --Money received as a result of employment. --Fluctuating Income --Fluctuating income is earned and/or unearned income that varies by $1 or more each benefit or payment period. --Gross Income --Total income before allowable deductions. --Net Income --Income after all allowable deductions. --Stable Income --Stable income is earned and/or unearned income that does not vary by a $1 each benefit or payment period. --Unearned Income --Money received from any source other than employment.

Incur To be personally liable.

Individual Development Account (IDA)

These are dedicated savings accounts, similar in structure to Individual Retirement Accounts (IRA’s), that can only be used for purchasing a first home, education or job training expenses, or capitalizing a small business (micro enterprise development). They are managed by community organizations, and accounts are held at local financial institutions. Contributions for lower income participants are matched using both private and public sources. Funds contained in the IDA must be disregarded in determining eligibility for assistance in any federal means-tested program as long as the account continues to be maintained. The following restrictions apply to IDA funds: a recipient may only deposit earned income into an IDA; a recipient’s contributions to an IDA may only be matched by, or through, a qualified entity; a recipient may withdraw funds only for the reasons indicated above.

Individual Retirement Account (IRA) Money set aside for retirement or another future use. There is a penalty if the funds from the account are withdrawn prior to retirement.

In-kind Contributions Non-monetary assistance.

Inquiry A request for information regarding assistance or other services.

Intake An initial interview.

6 Appendix 3300 Change #5-2016 October 1, 2016

Investigation A thorough examination of all eligibility factors.

Irrevocable Cannot be sold or “cashed in.”

Irrevocable Trust A contract in which the terms cannot be altered.

Jointly Owned Property owned by more than one person.

Keogh Account Money set aside for a retirement plan available to self-employed persons. Contributions to the plan are tax deductible.

Lien A claim on property that is pending the payment of a debt.

Lifetime Right/Life Estate Interest An estate whose duration is limited to the life of the party holding it or to some other person. Upon the death of the life tenant (life estate holder), the property will go to the holder of the remainder interest.

Live-in Attendant An individual who resides in a household solely for the purpose of providing medical, housekeeping, or child care services.

Local Conference A conference held by the county department of social services with a recipient regarding the proposed action on his case.

Loans Money given with the intention of repayment.

Lump Sum Money received in one payment rather than recurring payments.

Mass Change Certain changes which are initiated by the State or federal governmental which may affect the entire caseload or significant portions of the caseload.

Means-tested Program An assistance program in which an applicant's financial circumstances are considered.

Medicare A health insurance program for aged and disabled individuals who meet the program's eligibility requirements under Title XVIII of the Social Security Act.

Migrant Farm Worker A person who moves with the migrant stream in order to follow seasonal farm work employment and does not return to his permanent home each night.

Minor Mother A mother below a certain age as defined by a specific program.

Misrepresentation An intentional or unintentional statement giving incomplete, false, or misleading information.

Motor Vehicle An automobile or other vehicle used for transportation. This may include a boat if it is the primary mode of transportation.

Mutual Funds An investment company that raises money by selling its stock to the public and investing the proceeds in other securities.

Name The name of each Food and Nutrition Services household member to be entered in FSIS through the Individual ID assignment process or the Name Change (NC) screen must match Social Security Records. Use the name on the SDX, BENDEX, SOLQ, TPQ, Social Security Card, or Medicare Card. If a discrepancy exists, use the name from the online verification.

Need Standard The amount of money the State determines essential to meet minimal standard of living for a family of a specified size.

Net Profit The income received from self-employment, farming, roomers, boarders, or small business, minus allowable expenses.

Newborn Coverage Automatic Medicaid coverage for newborns based solely on mother's eligibility status.

Non-Public assistance Household A Food and Nutrition Services household in which all family members are not recipients of WFFA, SSI, or a combination of the two.

7 Appendix 3300 Change #5-2016 October 1, 2016 Non-cooperation Failure of a FNSU member to comply with program requirements.

Non-custodial Parent The parent who does not have custody of the child(ren) when both parents do not live together.

Old Bills Outstanding medical bills that were incurred prior to the current certification period that have not been considered in establishing previous authorizations.

Overissuance/ Overpayment Benefits in excess of the amount for which the recipient was eligible.

Public Assistance Household (PA) A Food and Nutrition Services household in which all members receive or are determined eligible to receive SSI, WFFA, or a combination of the two.

Partial Payment Assistance paid for a portion of the month.

Patient Monthly Liability The portion of cost of care a client in long-term care/or Community Alternatives Program (CAP) is expected to pay.

Payee The person in whose name the assistance is made.

Payment Month The month for which a client receives payment.

Penalty Payment Monies paid to a recipient when his application is not processed in accordance with Alexander v. Hill court order.

Perjury The voluntary violation of an oath or vow by swearing to what is untrue or by failure to do what was promised under oath.

Personal Effects Refers to clothing, furniture, jewelry, kitchen items, household appliances, pets, etc.

Personal Property Property or belongings owned by an individual(s), except real property.

Personal Representative A substitute payee appointed by the court when the specified relative payee is unwilling or unable to manage the assistance payment in the best interest of the children.

Poverty Level A federally established income guideline used to define persons who are economically disadvantaged.

Presumptive Disability or Blindness Conditions under which SSI presumes that disability or blindness requirements are met and makes payment for a period of three months.

Presumptive Eligibility Conditions under which certain pregnant women are presumed eligible for ambulatory prenatal services.

Primary Hearing Source The main source of heat used by the household.

Private Living Arrangement Housing owned by an individual or private company.

Probate Legal procedure to establish the validity of a will prior to division or disbursement of the property to heirs.

Processing Deadline The last date in the month the county can take appropriate action on a case.

Promissory Note A written promise made by one or more persons to pay another a specified amount of money at a specified time or on demand.

Prorated Benefits Benefits issued from the date of application through the end of the application month.

Prospective Budgeting The best estimate of income for a specified period.

Protective Payee A substitute payee appointed when the payee mismanages her money or fails to comply with program regulations.

Public Housing Housing owned by the government. This can be apartments or houses.

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Public Institution An institution supported wholly or in part by government funds.

Public Law A generic name for statutes passed by Congress.

Pull Check The procedure used in the State Office to stop delivery of an assistance check.

Quality Control (QC) A management tool used to determine the accuracy of eligibility and evaluation of needed corrective action.

Quarterly Recertification A quarterly recertification is a three-month mail-in recertification.

Real Property Includes, but is not limited to, land and buildings.

Reapplication A subsequent application when a case has been terminated or suspended.

Recipient An eligible person whose needs are included in the assistance unit.

Recertification A review of all factors of eligibility.

Recoupment Action to recover overpayments/overissuances made to recipients.

Redbook Value An official car valuation by National Market Reports, Inc.

Redetermination A complete review of all eligibility factors.

Registrant An applicant/recipient who is required to register for work according to program regulations.

Registrant Pool The entire group of individuals who are registered with ESC for manpower services.

Reinstatement The reopening of a case without the necessity of a signed application.

Remainder Interest The ownership of property limited by the life estate interest (See “Lifetime Right.”).

Renter An individual who pays for separate living quarters.

Replacement of Benefit Duplicate benefits issued by the county.

Resource Cash or its equivalent (liquid assets) and/or real or personal property (non-liquid assets) which are currently available to members of the FNSU.

Residence Broadly stated, the county where an applicant/recipient lives with intent to remain.

Restored Benefits Benefits issued to a FNSU that were lost due to an administrative error; by an administrative disqualification for IPV that was subsequently reversed; or when a judicial action finds that benefits were wrongfully withheld.

Resulting Trusts This exists when a party holds the title of property for the benefit of another but receives no benefit from the property.

Retroactive Benefits Benefits authorized for a period of time prior to the date of application.

Retroactive Period The first, second, or third month prior to the month of an application.

Retrospective Budgeting Computing income for the benefit month based on actual income received in a previous month.

Revocable Able to be sold or “cashed in.”

Revocable Trust A contract in which terms can be altered.

9 Appendix 3300 Change #5-2016 October 1, 2016 Right of Recovery The responsibility of an individual, institution, corporation, or public or private agency to pay for all or part of medical costs of an applicant/recipient.

Roomer A person who lives in a house and pays a set amount for a room only.

Security Deposit Money deposited by a tenant with a landlord as security against the terms of the lease and any damage to the property.

Self Supporting Maintaining one’s self without financial assistance from others.

Specialty Hospitals Hospitals providing designated special services.

Specified Person An individual who is age 60 or over; receives SSI benefits under Title XVI of the Social Security Act or disability or blindness payments under Titles I, II, XIV, XVI of the Social Security Act (such persons include those who have been certified but whose initial payments have not yet been received, or whose checks are entirely recouped to repay a prior overpayment); receives a VA disability payment for a 100% service connected disability; or is a disabled surviving spouse or child of a Veteran.

Specified Relative A relative with whom a child lives who provides care and supervision of the child.

Spouse An individual who is married to another person , or for Food and Nutrition Services purposes, an individual who is of the opposite sex or to the same sex; if the couple is lawfully married under state law, regardless of the individual's domicile, and such a marriage between individuals of the same sex.

Standard Utility Allowance (SUA) A fixed Food and Nutrition Services deduction for utilities when the household incurs a heating or cooling expense which is billed separately from rent or mortgage payments.

Step parent The person who has married a child’s natural parent.

Stocks Certificates of ownership of shares of a corporation entitling the holder to dividends and other rights of ownership.

Subsidized Housing A federal subsidy to assist with shelter and utility expenses.

Supplemental Issuance Additional benefits issued during the same month as current benefits are issued.

Supplemental Security Income (SSI) A cash payment program administered by the Social Security Administration for low-income aged, blind, or disabled persons.

Support Payments Money paid by an absent parent.

Suspected Fraud Basis for belief that an intentional misrepresentation may have occurred.

Tax Value The latest tax value of property assessed by the county tax office.

Telephone Utility Allowance (TUA) Fixed Food and Nutrition Services deduction if the only utility expense incurred is for a telephone.

Temporary Resident Status One-year period for which an alien has lawfully been granted the privilege of residing in the United States. The temporary status may be removed after one year when the Immigration Office rules favorably or unfavorably on granting permanent resident status to the alien.

Tentative Decision A preliminary decision.

Termination The ending of specific benefits.

10 Appendix 3300 Change #5-2016 October 1, 2016 Thrifty Food Plan An USDA determined cost of diet for persons of different ages; the basis upon which Food and Nutrition Services allotments are determined.

Timely Notice A written notice to inform the recipient of intended action.

Time Share A joint ownership or lease of property through which persons occupy the property individually for set periods of time.

Time Standard The requirement to process an action within a specified time.

Transfer of Resources An act of one party to convey an asset or resources to another party.

Trust Fund A fund held by a trustee subject to restrictions set forth in the trust.

Unemployment Insurance A benefit check received by a budget unit member from the ESC.

Underissuance The amount of benefits issued to a household that is less than the amount it was eligible to receive.

Underpayment A payment that is less than the recipient is eligible to receive.

Uniform Transfer to Minors Account Custodial bank accounts set up to benefit minors. Money is donated irrevocably. The custodian has access to the account and can make any withdrawals. The money becomes the property of the minor at age 21.

Unmet Medical Needs Medical expenses which Medicaid will not cover (i.e., medical insurance premiums, co-payments).

Vehicle Any device by which a person or property is or may be transported upon the highway, water, or airways.

Vendor Payment A payment made in money on behalf of a household/individual by an outside party.

Verification The confirmation of facts and information used in determining eligibility.

Verification Date The date verified information is received in the county.

Verified Upon Receipt Verified upon receipt means that information:  Is not questionable, and  The provider is the primary source of the information such as BENDEX from SSA, SDX from SSA, SAVE from BCIS, Employment and Training (E&T) compliance information received from ESC, and Intentional Program Disqualifications (IPV’s) from Program Integrity Staff, non- cooperation with Quality Control (QC) from QC staff, UIB from ESC.

Vulnerable A household is vulnerable if it is subject to the rising cost of heating and has a heat source. ---Fully Vulnerable Household --Vulnerable households are those who live in a private living arrangement, are subject to the rising cost of heating, and have a heat source. Also includes households living in public housing where utilities for heat are billed separately from the rent or where utilities for heat are included in the rent, and the household has paid an excess in utilities for heat in the last 12 months at the current address. ---Not Vulnerable Household --A household that is not subject to the cost of heating.

Work Programs Programs in designated counties that are designed to help the applicant/recipient find employment.

Work Release Funds Funds issued to dependents from a prisoner who is employed.

Worker’s Compensation Benefits received due to an on-the-job injury.

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401(K) Account Personal funds set aside for retirement or other future uses.

3300.03 COMMONLY USED ACRONYMS

Abbreviation: Stands for:

ABAWD Able-bodied Adult Without Dependent AS Adult Services or Adoption Subsidy A/R Applicant/Recipient AA Aid to the Aged AA-BD Aid to the Aged, Blind, Disabled AA-MA Aid to the Aged – Medical Assistance (M-AA) AB Aid to the Blind AB-MA Aid to the Blind – Medical Assistance (M-AB) AD Aid to the Disabled AD-MA Aid to the Disabled – Medical Assistance (M-AD) AOC Administrative Office of the Court ADH Administrative Disqualification Hearing AP Absent Parent APA Administrative Procedures Act APS Adult Protective Service ASVI Alien Status Verification Index BCIS Bureau of Citizenship and Immigration Services BEER Beneficiary Earnings Exchange Report BENDEX Beneficiary Data Exchange BH Boarding Home BUA Basic Utility Allowance C/S Client Statement CAA Community Action Agency CAP Community Alternatives Program DA Disabled Adult CC Child Care CD Certain Disabled CD-SA Certain Disabled – Special Assistance CF Certain Foster Care CFR Code of Federal Regulations CHS Community Health Services CIP Crisis Intervention Program CMV Current Market Value COBRA Consolidated Omnibus Budget Reconciliation Act 1985 COC Cost of Care COLA Cost of Living Adjustment CP Certification Period CP&L Carolina Power and Light CPS Child Protective Service CSC Clerk of Superior Court CWEP Community Work Experience Program CWS Child Welfare Services DAC Disabled Adult Child DDS Disability Determination Services DEC Developmental Evaluation Center DHHS Department of Health and Human Services DMA Division of Medical Assistance DMH Department of Mental Health DMV Department of Motor Vehicles DOA Date of Application DOB Date of Birth DOC Department of Corrections DOT Department of Transportation DP Data Processing DPH Department of Public Health

12 Appendix 3300 Change #5-2016 October 1, 2016 DRG Diagnosis Related Groupings DSB Division of Services for the Blind DSS (County) Department of Social Services DSS (State) Division of Social Services E&T Employment and Training EA Emergency Assistance EEOC Equal Employment Opportunity Commission EITC Earned Income Tax Credit EIS Eligibility Information System EOO Economic Opportunity Office ESC Employment Security Commission FAEP Food Assistance and Energy Programs Representative FC Foster Care FEMA Federal Emergency Management Act (National Board Program, Emergency Food and Shelter) FFP Federal Financial Participation FH Foster Home FNS Food and Nutrition Service FNSU Food and Nutrition Services Unit FRR Financial Resource Report FSA Family Service Association FSIS Food Stamp Information System FY Fiscal Year GA General Assistance GS General Statutes HH Household HHS U. S. Department of Health and Human Services HUD U. S. Department of Housing and Urban Development IC Infants and Children ICCA Individual Child Care Arrangement ICF Intermediate Care Facility ID Identification Number or Card IDA Individual Development Account IEVS Income Eligibility Verification System IHE Inadvertent Household Error IMC Income Maintenance Caseworker IMS Income Management System IMS Income Maintenance Supervisor (Regional) IPV Intentional Program Violation IRCA Immigration Reform and Control Act IRS Internal Revenue Service IV-D Child Support Enforcement IV-E WFFA Foster Care and Adoption Assistance LIEAP Low Income Energy Assistance Program LPR Lawful Permanent Resident LTC Long-Term Care LTR Lawful Temporary Resident M-AA Medical Assistance to the Aged M-AB Medical Assistance to the Blind M-AD Medical Assistance to the Disabled M-AF Medical Assistance to the Families with Dependent Children M-IC Medicaid for Infants and Children M-PW Medicaid for Pregnant Women M-RC Medicaid - Reasonable Classification M-RF Medicaid for Refugees M-SB Medicaid - Special Assistance to the Blind MA Medical Assistance MAABD Medical Assistance - Aged, Blind, Disabled MECCA Medicare Catastrophic Coverage Act of 1988 MCI Master Client Index MR-DD Mentally Retarded – Developmentally Disabled N/C No Change

13 Appendix 3300 Change #5-2016 October 1, 2016 NA Non-Assistance NCAC North Carolina Administrative Code NCGC North Carolina General Code NCGS North Carolina General Statutes NPA Non-Public Assistance OASDHI Old Age and Survivors, Disability and Health Insurance (now RSDI) OJT On-the-Job Training PA Public Assistance PE Presumptive Eligibility PIL Poverty Income Level PL Public Law PLA Private Living Arrangement PML Patient Monthly Liability PPA Past-Paid Public Assistance PRUCOL Permanently Residing in the U. S. Under Color of Law PRWORA Personal Responsibility and Work Opportunity Reconciliation Act of 1996 PW Pregnant Woman QC Quality Control R/S Representative's Statement RC Reasonable Classification RDO Register of Deeds Office RF Refugee RR Railroad Retirement RSDI Retirement, Survivors, Disability Insurance SA Special Assistance SAA Special Assistance for the Aged (S-AA) SAB Special Assistance for the Blind (S-AB) SAD Special Assistance for the Disabled (S-AD) SAVE Systematic Alien Verification for Entitlement Programs SCD Special Assistance for the Certain Disabled (S-CD) SDX State Data Exchange SIS Services Information System SNAP Simplified Nutritional Assistance Program SO State Office SSA Social Security Administration SSI Supplemental Security Income SSN Social Security Number SUA Standard Utility Allowance SW Social Worker T/C Telephone Call TAD Turn Around Document TC Transaction Code TPQY Third Party Query TUA Telephone Utility Allowance UA Utility Allowance UI Unemployment Insurance UIB Unemployment Insurance Benefits USDA United States Department of Agriculture WFR Work First Representative VA Veterans Administration VR Vocational Rehabilitation WIA Workforce Investment Act WIC Women, Infants, and Children WP Work Program WR Work Registration

FOOD AND NUTRITION SERVICES MANUAL

GENERAL PROCEDURES & REQUIREMENTS FNS 100 FOOD & NUTRITION SERVICES MANUAL MAINTENANCE AND PUBLIC ACCESS

1 Change #1-2021 May 1, 2021 FNS 100 FOOD AND NUTRITION SERVICES MAINTENANCE AND PUBLIC ACCESS Change #1-2021 May 1, 2021

100.01 THE FOOD AND NUTRITION SERVICES CERTIFICATION MANUAL A. The Food and Nutrition Services (FNS) certification manual provides instructions for determining eligibility and the level of benefits for the FNS Program. B. The FNS certification manual contains instructions for program areas directly related to the FNS eligibility process. C. The FNS certification manual contains interpretations of federal and state laws, regulations, and rules governing the FNS Program. D. The FNS certification manual is the primary tool for the caseworker. Like any tool, skill in its use depends on sound training and experience. E. The Table of Contents should be used to locate general topics or subject areas. F. All material is arranged numerically by section and numerically within sections. Individual sections are also numbered by page. Examples of required or suggested formats are shown as figures at the end of each section.

100.02 MAINTENANCE OF THE MANUAL A. The Department of Health and Human Services (DHHS), Department of Social Services (DSS) is responsible for maintaining and updating the FNS certification manual online. B. The DHHS, DSS will issue consecutively numbered manual change notices when the manual is revised. The change notice will include the section number, change notice number, and the revised date. C. County Department of Social Services have responsibility to review the change notice and ensure understanding of: 1. The effective date of the material. 2. Implementation of the new or changed material. D. It is suggested that county offices maintain one electronic or paper copy of the certification manual for use in situations when the on-line manual is unavailable.

100.03 PUBLIC ACCESS TO THE FNS CERTIFICATION MANUAL A. The FNS Certification Manual is a public document.

FOOD AND NUTRITION SERVICES MANUAL

GENERAL PROCEDURES & REQUIREMENTS FNS 100 FOOD & NUTRITION SERVICES MANUAL MAINTENANCE AND PUBLIC ACCESS

2 Change #1-2021 May 1, 2021 1. Upon request the county department of social services must inform the public of the location to view the FNS certification manual online. 2. The county department of social services must make the manual available for examination by the public on regular workdays during regular office hours. 3. Current copies of this manual and other policy issuance are available from DHHS upon request and without charge to welfare groups, community action groups, legal aid offices, and other groups or organizations that meet the following criteria: a. The requested material is for the purpose of serving the welfare public; b. Groups or organizations who are centrally located and publicly accessible to the welfare public they serve; and c. Groups or organizations that agree to accept responsibility for filing all amendments and changes forwarded by the agency. B. The county department of social services evaluates requests for complete manuals or policy issuance because the county is best qualified to determine if a group or an organization meets the above criteria. Once the county department determines that the above criteria is met, the county forwards the requests to the DHHS, DSS, Economic & Family Services Section. C. Federal regulations, federal procedures contained in FNS notices and policy memos, and State Plans of Operation (including specific planning documents such as Corrective Action Plans) are available upon request for examination by members of the public during regular office hours at the State Office, as well as at FNS Regional and National Offices.

FOOD AND NUTRITION SERVICES MANUAL

GENERAL PROCEDURES & REQUIREMENTS FNS 105 PRUDENT PERSON CONCEPT

1 Change #1-2021 May 1, 2021 FS 105 Prudent Person Concept Change #1-2021 May 1, 2021

105.01 PRUDENT PERSON CONCEPT The policies and procedures throughout this manual are intended to be a guide for Food and Nutrition Services (FNS) certification and are broadly written within the limits imposed by the Food Stamp Act of 1977 and the Supplemental Nutrition Assistance Program (SNAP) regulations. A. Policy contained in this manual is intended to be sufficiently flexible to allow the caseworker to exercise reasonable judgement in executing his/her responsibilities. B. It is impossible to write procedures that cover every possible situation that arises during the daily maintenance of FNS cases. In this regard, the concept of the “prudent person” is helpful to the caseworker. The term refers to the reasonableness of the judgements made by an individual in a given situation. C. In making a certification decision, the caseworker should ask themselves if their judgement is reasonable, based on experience and knowledge of the program. For example, if the client’s statement of incurred shelter expenses are out of line with the amount of income and/or resources available to the client, the caseworker must ask for an explanation prior to certification. D. Similarly, it is the caseworker’s responsibility to exercise judgement in determining if a given number of individuals who apply for benefits as a single household do in fact meet the FNS Program’s household concept. E. If the caseworker encounters a problem in a specific case that he feels may necessitate a change in policy or the development of new policy, they should refer the matter to their supervisor. 1. If necessary, the supervisor will refer the problem to the appropriate state support staff. 2. In some cases, it may be necessary for state support staff to refer a question for further research with the United States Department of Agriculture’s (USDA) Regional Office. F. If a case situation only applies to a specific case, or to a limited number of cases, and is generally covered by existing policy guidelines, the caseworker should make a judgement that they can defend as reasonable and prudent and document the case record. NOTE: Use of the prudent person concept does not replace required actions of the FNS caseworker, nor does it eliminate any eligibility requirements for the FNS unit.

FOOD AND NUTRITION SERVICES MANUAL GENERAL PROCEDURES & REQUIREMENTS FNS 110 PURPOSE AND AUTHORITY OF THE FOOD & NUTRITION SERVICES PROGRAM

1 Change #02-2023 September 1, 2023 FNS 110 Purpose and Authority of the Food and Nutrition Services Program Change 02-2023 September 1, 2023

110.01 PURPOSE OF THE FOOD AND NUTRITION SERVICES PROGRAM The Food and Nutrition Services (FNS) Program is designed to promote the general welfare and to safeguard the health and wellbeing of the nation's population by raising the levels of nutrition among low-income households. FNS assists low-income adults in obtaining employment and increasing their earnings. Such employment and earnings, along with program benefits, will permit low-income households to obtain a more nutritious diet through normal channels of trade by increasing food purchasing power for all eligible households who apply for participation.

110.02 FOOD AND NUTRITION SERVICES PROGRAM AUTHORITY A. The FNS Program is authorized by the Food and Nutrition Act of 2008 (Title VI, As Amended through P.L. 110-246). Regulations issued pursuant to the Act are contained in 7 CFR Parts 270285. B. Program operations are conducted in North Carolina under the terms of North Carolina General Statutes, Chapter 108, and Sections 51-53.1. The provisions of G.S. 108-51 are repeated below. “108A-51 Authorization for Food and Nutrition Services. The Department is authorized to establish a statewide Food and Nutrition Services program as authorized by the Congress of the United States. The Department of Health and Human Services is designated as the State agency responsible for the supervision of such programs. The boards of county commissioners through the county departments of social services are held responsible for the administration and operation of the programs.”

110.03 FINANCIAL LIABILITIES If the United States Department of Agriculture determines negligence in the initial certification of applicant households, any subsequent certifications, or the issuance of benefits, the county will, on demand, pay a sum equal to the amount of any benefits issued as a result of such negligence or fraud. The county is liable for any overissuance of benefits as a result of errors made by personnel.

110.04 COUPONS AS OBLIGATIONS OF THE UNITED STATES, CRIMES AND OFFENSES A. “Coupon'' means any coupon, stamp, type of certificate, authorization card, cash, or check issued in lieu of a coupon or access device, including an electronic benefit

FOOD AND NUTRITION SERVICES MANUAL GENERAL PROCEDURES & REQUIREMENTS FNS 110 PURPOSE AND AUTHORITY OF THE FOOD & NUTRITION SERVICES PROGRAM

2 Change #02-2023 September 1, 2023 transfer (EBT) card or personal identification number (PIN), issued pursuant to the provisions of this act. B. Food and Nutrition Services benefits are an obligation of the United States within the meaning of Section 8 of Title 18, United States Code. The provision of Title 18 of the United States Code, “Crimes and Criminal Procedure,” relative to counterfeiting, misuse, and alteration of obligations of the United States are applicable to Food and Nutrition Services benefits, authorization cards, and access device systems. Any unauthorized issuance, use, transfer, acquisition, alteration, possession, or presentation of benefits may subject any individual, partnership, corporation, or other legal entity to prosecution under Sections 15(b) and (c) of the Food and Nutrition Act or under any other applicable federal, State or local law, regulation, or ordinance. Sections 15(b) and (c) of the Food and Nutrition Act read as follows: (b)(1) Subject to the provisions of paragraph (2) of this subsection, whoever knowingly uses, transfers, acquires, alters, or possesses benefits in any manner contrary to this act or the regulations issued pursuant to this act shall, if such benefits are of a value of $5000 or more, be guilty of a felony and shall be fined not more than $250,000 or imprisoned for not more than twenty years, or both, and shall, if such benefits are of the value of $100 or more, but less than $5000, or if the item used, transferred, acquired, altered, or possessed is an benefit that has a value of $100 or more, but less than $5000, (3) be guilty of a felony and shall, upon the first conviction thereof, be fined not more than $10,000 or imprisoned for not more than five years, or both, and, upon the second and any subsequent conviction thereof, shall be imprisoned for not less than six months nor more than five years and may also be fined not more than $10,000 or, if such benefits are of a value of less than $100, or if the item used, transferred, acquired, altered, or processed is an benefit that has a value of less than $100, shall be guilty of a misdemeanor, and, upon the first conviction thereof, shall be fined not more than $1000 or imprisoned for not more than one year, or both, and upon the second and any subsequent conviction thereof, shall be imprisoned for not more than one year and may also be fined not more than $1000. In addition to such penalties, any person convicted of a felony or misdemeanor violation under this subsection may be suspended by the court from participating in the supplemental and nutrition assistance program for an additional period of up to eighteen months consecutive to that period of suspension mandated by section 6(b)(1) of this act. (b)(2) In the case of any individual convicted of an offense under paragraph (1) of this subsection, the court may permit such individual to perform work approved by the court for the purpose of providing restitution for losses incurred by the United States and the State agency as a result of the offense for which such individual was convicted. If the court permits such individual to perform such work and such individual agrees thereto, the court shall withhold the imposition of the sentence on the condition that such individual performs the assigned work. Upon the successful completion of the assigned work the court may suspend such sentence.

FOOD AND NUTRITION SERVICES MANUAL GENERAL PROCEDURES & REQUIREMENTS FNS 110 PURPOSE AND AUTHORITY OF THE FOOD & NUTRITION SERVICES PROGRAM

3 Change #02-2023 September 1, 2023 (c) Whoever presents, or causes to be presented, benefits for payment of redemption of the value of $100 or more, knowing the same to have been received, transferred, or used in any manner in violation of the provisions of this act or the regulations issued pursuant to this act, shall be guilty of a felony and, upon the first conviction thereof, shall be fined not more than $20,000 or imprisoned for not more than five years, or both, and, upon the second and any subsequent conviction thereof, shall be imprisoned for not less than one year nor more than five years and may also be fined not more than $20,000, or, if such benefits are of a value of less than $100, shall be guilty of a misdemeanor and, upon the first conviction thereof, shall be fined not more than $1000 or imprisoned for not more than one year, or both, and, upon the second and any subsequent conviction thereof, shall be imprisoned for not more than one year and may also be fined not more than $1000. In addition to such penalties, any person convicted of a felony or misdemeanor violation under this subsection may be suspended by the court from participation in the Supplemental Nutrition Assistance Program for an additional period of up to eighteen months consecutive to that period of suspension mandated by section 6(b)(1) of this act.

110.05 BENEFITS AS INCOME The Food and Nutrition Act of 2008, Section 8 (B) states as follows: The value of benefits that may be provided under this act shall not be considered income or resources for any purpose under any federal, State, or local laws, including, but not limited to, laws relating to taxation, welfare, and public assistance programs, and no participating State of political subdivision thereof shall decrease any assistance otherwise provided an individual or individuals because of the receipt of benefits under this act.

110.06 DELIVERED MEALS A. Eligible FNS unit members and their spouses who are 60 years of age or over, housebound, physically disabled, or otherwise disabled to the extent that they are unable to adequately prepare all their meals, may use Food and Nutrition Services benefits to purchase meals prepared for and delivered to them by a non-profit meal delivery service authorized by FNS to accept FNS benefits. B. Advise the delivered meals household that their Food and Nutrition Service benefits may be used to purchase food in an authorized retail store as well as meals delivered by an authorized meal delivery service.

110.07 COMMUNAL DINING FACILITIES Eligible FNS unit members 60 years of age or over and their spouses, or those receiving SSI and their spouses, may use benefits issued to them to purchase meals prepared

FOOD AND NUTRITION SERVICES MANUAL GENERAL PROCEDURES & REQUIREMENTS FNS 110 PURPOSE AND AUTHORITY OF THE FOOD & NUTRITION SERVICES PROGRAM

4 Change #02-2023 September 1, 2023 especially for them at communal dining facilities authorized by FNS to accept Food and Nutrition Service benefits for that purpose.

110.08

IDENTIFICATION CARDS Electronic Benefits Transfer (EBT) Cards Each Food and Nutrition Services (FNS) household certified as eligible to participate in the program is issued an EBT card. This card is the required proof of eligibility issued to the households to use the Food and Nutrition Services benefits.

FOOD AND NUTRITION SERVICES MANUAL

GENERAL PROCEDURES & REQUIREMENTS

FNS 115 ADMINISTRATION OF THE FOOD AND NUTRITION SERVICES PROGRAM

1 Change #1-2021 May 1, 2021 FNS 115 Administration of the Food and Nutrition Services Program Change #1-2021 May 1, 2021

115.01 UNITED STATES DEPARTMENT OF AGRICULTURE (USDA) Within USDA, the Food and Nutrition Service (FNS) is responsible for the federal administration of the program and, in this capacity, consults and provides policy and guidance to the State Division of Social Services. FNS maintains eight regional offices throughout the United States. The Southeast Regional Office in Atlanta, Georgia provides technical assistance and oversight of the North Carolina FNS Program. FNS also maintains a Field Office in Raleigh. The primary role of the Field Office is to authorize, and monitor program compliance of retailers authorized to accept FNS benefits. Additional duties of the Field Office staff include: A. Conducting reviews of county departments of social services on such topics as client services or employment training. These reviews are coordinated through the State Division of Social Services. B. Conducting inquiries into all civil rights complaints. While conducting these inquiries, FNS staff must be given direct and unrestricted access to FNS case files and staff. The purpose of the inquiry is to determine the facts surrounding the complaint. FNS Field Office staff forwards a report to the Atlanta Regional Office for review and evaluation. The findings of the inquiry, including any recommended corrective action, are directed to the State Office. The State is responsible for working with the county office to correct any problems identified. C. Other inquiries. Field Office staff may contact the county departments of social services (DSS) to follow up on such matters as recipient inquiries, complaints, or reports of alleged program violations.

115.02 NORTH CAROLINA DEPARTMENT OF HEALTH AND HUMAN SERVICES (DHHS), DEPARTMENT OF SOCIAL SERVICES (DSS) The DHHS, DSS provides general State policies and procedures. The Division also provides supervision of the administration of the program through county departments of social services, including the conduct of performance reporting reviews.

115.03 COUNTY DEPARTMENT OF SOCIAL SERVICES A. The county directors of DSS are responsible for the certification of applicant households. B. The county DSS must provide the most current application from the DHHS Online Publications forms website for participation in the FNS Program to any person upon request and must accept an identifiable North Carolina state application when submitted.

FOOD AND NUTRITION SERVICES MANUAL

GENERAL PROCEDURES & REQUIREMENTS

FNS 115 ADMINISTRATION OF THE FOOD AND NUTRITION SERVICES PROGRAM

2 Change #1-2021 May 1, 2021 1. An identifiable application is an application containing a legible name and address that has been signed. 2. The person making the application is responsible for cooperating with the county DSS in providing the information necessary for the county DSS to make a determination of eligibility. 3. The county DSS must accept an identifiable application when submitted even if an appointment for an interview is assigned at a future date. 4. The practice of accepting applications only at the interview is not in accordance with federal regulations. 5. Counties must continue their efforts to assure timely and correct certifications by increasing certification staff and providing adequate certification facilities. C. County DSS have direct responsibility for: 1. Determining the eligibility of applicants for the program; 2. Periodically reviewing such eligibility determinations; 3. Authorizing FNS benefits to those certified as eligible; and 4. Providing every applicant and participating household an opportunity for a fair hearing in accordance with the instructions contained herein. D. County DSS are required to: 1. Have the most current version of the DSS-8207, Application for FNS, readily accessible to individuals and groups involved with outreach effort. (Outreach groups include, but are not limited to, senior citizen facilities, community action groups, and the Social Security Administration.); 2. Provide the most current versions of written information (such as pamphlets, brochures, etc.) to persons who request information about the FNS Program but choose not to apply; 3. Make available the most current version of the DSS-8625, Food and Nutrition Services Program Facts Pamphlet; and 4. Display the most current version of the required posters in waiting areas and other areas where the public is served. Required posters include, but are not limited to, the Nutrition Poster, the Non-Discrimination Poster, and the Complaint Poster. To check for the latest version and order posters contact: North Carolina Department of Health and Human Services Division of Social Services Carlotta Dixon MHS, CPM Program Compliance Section Chief SERT ESF 6 Lead Title VI-Civil Rights Coordinator

FOOD AND NUTRITION SERVICES MANUAL

GENERAL PROCEDURES & REQUIREMENTS

FNS 115 ADMINISTRATION OF THE FOOD AND NUTRITION SERVICES PROGRAM

3 Change #1-2021 May 1, 2021 820 S Boylan Ave MSC 2401 Raleigh NC 27603 Courier #56-20-25 Tel:919-527-6421

5. County departments of social services must explain client rights and responsibilities to all applicants. a. Explain that a client has a right to: • Receive an application on the same day it is requested in person at the county department of social services and for the application to be accepted by the county department of social services; • Select an authorized representative; • Non-discrimination; • A fair hearing; and • Receive deductions for legally obligated child support, childcare expenses, medical expenses, shelter expenses, utility expenses, and operational expenses for self-employment. b. Explain the following client responsibilities. • Change reporting requirements; • Work Registration requirements; • Able Bodied Adults Without Dependent (ABAWD) requirements; • Enumeration requirements. c. Explain the following penalties to all applicants and recipients. • Intentional Program Violation; o If anyone is convicted by a court of giving false information regarding residence in order to receive Work First Family Assistance (WFFA), FNS benefits, Medicaid, or Supplemental Security Income (SSI) in more than one place, that person will be ineligible to receive both cash assistance and FNS benefits for ten years from the date of conviction; o If a member of a FNS unit is convicted of buying guns, explosives, or ammunition with FNS benefits or selling FNS benefits of $500 or more, the individual will not receive FNS benefits for the remainder of his life;

FOOD AND NUTRITION SERVICES MANUAL

GENERAL PROCEDURES & REQUIREMENTS

FNS 115 ADMINISTRATION OF THE FOOD AND NUTRITION SERVICES PROGRAM

4 Change #1-2021 May 1, 2021 o If the applicant gives false information about identity in order to receive FNS benefits and/or WFFA in more than one place, the applicant will not receive FNS benefits and/or WFFA for ten years; and o Substance abuse convictions. d. Explain to the applicant that the applicant’s signature on the application workbook indicates the applicant: • Answered truthfully to the best of his knowledge; • Understands that providing willfully incorrect or false information could cause the applicant to be charged with fraud; • Understands that authorization to contact any other person, agency, or organization to determine eligibility for assistance is given to the county department of social services; • Understands his rights and responsibilities; • States that all members of the FNS unit are either U.S. citizens or allowed to live in the U. S. by law; • Understands that information provided may be released to law enforcement officers (including probation/parole officers); and • Acknowledges that he has received an explanation of their right to an income deduction for the following items: legally obligated child support, child care expenses, medical expenses, utility expenses, and operational expenses for self-employment and understands that failure to report or verify any of the income deductions is viewed as a statement that the FNS unit does not want to receive a deduction for the unreported. e. Explain the Electronic Benefit Transfer (EBT) system. Explanation for the following must be given. • The method of issuing FNS benefits; • The time period for expedited service; • How to use FNS benefits; and • Procedures to follow if benefits are not received.

115.04 NON-DISCRIMINATION POLICY A. Neither the State nor counties can discriminate against any applicant or participant for reasons of race, color, national origin, sex, religion, age, disability, or political beliefs in any aspect of program administration including, but not limited to:

FOOD AND NUTRITION SERVICES MANUAL

GENERAL PROCEDURES & REQUIREMENTS

FNS 115 ADMINISTRATION OF THE FOOD AND NUTRITION SERVICES PROGRAM

5 Change #1-2021 May 1, 2021 1. Certification of the household; 2. Issuance of benefits; 3. Conduct of fair hearings; or 4. Conduct of any other program service. B. It is the policy of Department of Health and Human Services to provide services, care, benefits, and assistance to all qualified persons without regard to race, color, national origin, sex, religion, age, disability, or political beliefs. You can get information about regulations against discrimination and how to file a complaint by writing the: North Carolina Department of Health and Human Services Division of Social Services Carlotta Dixon, MHS, CPM Program Compliance Section Chief Equal Employment Opportunity Title VI Civil Rights Coordinator 2401 Mail Service Center Raleigh, N.C. 27699-2401 Refer to Section 120, Complaints and Fair Hearings

C. County Responsibilities 1. Each county has the responsibility to: a. Publicize the procedures described in Section 120.02, Fair Hearings, and 120.03, Discrimination Complaints. b. Display the DSS-8240 and the DSS-8240sp, Food and Nutrition Services Complaint Procedures form. c. Ensure that all offices involved in administering the program and serving the public display the nondiscrimination poster provided by USDA/FNS. d. Ensure that participants and other low-income households have access to information regarding nondiscrimination statutes and policies, complaint procedures, and the rights of participants within ten days of the date of a request. e. Ensure that applicants and recipients are advised of their rights under Title VI of the Civil Rights Act of 1964 and Section 504 of the Rehabilitation Act of 1973. f. When an individual alleges discrimination verbally, complete the NCDHHS Complaint Form and mail to the address in Section 115.04 B. within five calendar days of receipt of complaint. g. Mail written complaints of discrimination to the address in Section 115.04 B. within five calendar days of receipt.

FOOD AND NUTRITION SERVICES MANUAL

GENERAL PROCEDURES & REQUIREMENTS

FNS 115 ADMINISTRATION OF THE FOOD AND NUTRITION SERVICES PROGRAM

6 Change #1-2021 May 1, 2021 h. Include these requirements as part of orientation and training for new staff and review with staff on an annual basis. Documentation of review efforts must be maintained, including the names of staff involved in the review session. i. County agencies must conduct annual Civil Rights training and maintain attendance records of the training. County agencies are required to make the attendance records available to the Management Evaluation reviewer as part of the regularly scheduled Management Evaluation Review. j. County agencies are required to make case files or other pertinent information necessary to complete reviews available to state staff upon request.

115.05 ELECTRONIC BENEFITS TRANSFER (EBT) Electronic Benefit Transfer (EBT) is an electronic system that allows FNS recipients to access their benefits to make food purchases with a plastic card at U.S. Department of Agriculture (USDA), FNS authorized retailers. EBT is the method used in the State of North Carolina to issue FNS benefits. A. Once eligibility and level of benefits have been determined, an account is established at a financial institution in the recipient’s name, and FNS benefits are deposited electronically into the account each month. A plastic card, similar to a bank card, is mailed by the financial institution to the recipient. The EBT card carrier instructs clients to contact EBT Customer Service to complete the telephone PIN selection process. The telephone accessible Automated Response Unit (ARU) gives clients the capability to PIN their EBT. A personal identification number (PIN) is chosen by the recipient which activates the card and allows access to the account when making purchases at an authorized retailer. Recipients are offered the opportunity to change the PIN number at any time by calling EBT Customer Service and accessing the Automated Response Unit (ARU). The contact number for EBT Customer Service is 1-888-622-7328. B. Explain to each new FNS household that card PINning instructions will be mailed along with the EBT card. FNSU’s can contact EBT Customer Service and access the ARU 24 hours a day, seven days a week. EBT cards are mailed along with instructions explaining the card PINning procedure. Inform the FNSU to follow the instructions on the card carrier to PIN their EBT card by telephone. Benefits are accessible to the FNSU once the EBT card is PINned. C. Offer assistance to households who have difficulty understanding the telephone PIN selection process. Assist these households by advising the household of its right to an authorized representative and, if necessary, by assisting in finding an authorized representative who can act in their behalf or by using other appropriate means. Refer to Section 175, Authorized Representatives. D. When paying for groceries, the FNS recipient can swipe the EBT card at a Point of Sale (POS) terminal or sign a manual form. When the card is swiped at the POS, the recipient enters the secret PIN number to access the FNS account. The processor electronically verifies the PIN and the account balance and sends an authorization or denial back to the retailer. If the transaction is authorized, the recipient’s account is debited for the

FOOD AND NUTRITION SERVICES MANUAL

GENERAL PROCEDURES & REQUIREMENTS

FNS 115 ADMINISTRATION OF THE FOOD AND NUTRITION SERVICES PROGRAM

7 Change #1-2021 May 1, 2021 amount of the purchase. No money and no FNS coupons change hands. Payment is made to the retailer through a settlement process at the end of the business day. Although no PIN is used with the manual form, the process for the store to get authorized transaction approval is the same. E. EBT benefits are available 24 hours a day, seven days per week (including weekends and holidays) for FNS units that do not reside in Alcohol and Drug Treatment Centers (ADTC’s). FNS benefits are issued on a monthly basis. Each month, in which a FNSU is eligible for an allotment, benefits are placed into their account. The benefit availability date is determined by the last digit of the head of household’s social security number as indicated below. Benefits are available to the FNSU at 6:00 a.m. on their issuance date F. Benefits for a FNS unit that resides in an ADTC are disbursed three times during each month the FNS unit remains eligible. The dates of disbursements are the 5th, 15th, and 25th calendar day of each month. Refer to Section 220, Authorized Representatives. If the last Digit is: 1 2 3 4 5 6 7 8 9 0 Benefits are available on: 3rd 5th 7th 9th 11th 13th 15th 17th 19th 21st

NOTE: The benefits availability date shown above is the actual calendar date. EXCEPTION: The benefit availability date for non-citizens without a SSN is the third calendar day of the month. If the head of household’s SSN is unknown and is all zeroes in NC FAST, the benefit availability day will be the third calendar date of the month.

FOOD AND NUTRITION SERVICES MANUAL GENERAL PROCEDURES & REQUIREMENTS FNS 120 COMPLAINTS AND FAIR HEARING PROCESS

1 Change #1-2021 May 1, 2021 FNS 120 COMPLAINTS AND FAIR HEARING PROCESS Change #1-2021 May 1, 2021

120.01 COMPLAINTS PROCEDURES A. There are three distinct procedures for filing and processing complaints regarding operation of Food and Nutrition Services (FNS). The nature of the complaint must be examined in order to determine which of the three systems is appropriate for the particular complaint. The three systems are: 1. Fair Hearings, 2. Discrimination, and 3. State Complaint Procedures. B. Persons or agencies desiring program information whose requests cannot be satisfied at the local or State level may contact the FNS Regional Office at: USDA/Food and Nutrition Service Southeast Region 61 Forsyth St. S.W. Room 8T36 Atlanta, GA 30303-3427

120.02 FAIR HEARINGS A. Complaints concerning eligibility for the program and benefit levels are handled according to procedures in Section 705, Hearings. B. Complaints concerning the establishment of or the amount of inadvertent household or agency error claims and complaints concerning the amount of Intentional Program Violation (IPV) claims are also handled under fair hearing procedures. C. Complaints concerning the establishment of an IPV claim are not handled under fair hearing procedures, as IPV claims result from either prosecution through the court system or an administrative disqualification hearing.

120.03 DISCRIMINATION COMPLAINTS A. People who believe that they have been subjected to discrimination as specified in Section 115.04 may file a complaint with the United States Department of Agriculture (USDA). Complaints alleging discrimination in any aspect of program administration, including, but not limited to, the certification of a household, the issuance of FNS, the conduct of a fair hearing, or the conduct of any other program service on the basis of race, color, national origin, sex, religion, age, disability, or political beliefs are made to the United

FOOD AND NUTRITION SERVICES MANUAL GENERAL PROCEDURES & REQUIREMENTS FNS 120 COMPLAINTS AND FAIR HEARING PROCESS

2 Change #1-2021 May 1, 2021 States Department of Agriculture. The county department explains the complaint system to each individual who expresses an interest in filing a discrimination complaint and advises the individual of the right to file a complaint. Persons who believe they have been subject to discrimination may file a written complaint with USDA at the following address: U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights 1400 Independence Avenue, SW Washington, D.C. 20250-9410; (866) 632-9992 (voice) or (800) 877-8339 (TTY)

B. A complaint must be filed no later than 180 days from the alleged discrimination. However, the USDA Secretary of FNS may extend the time of filing.

C. In the event an individual verbally alleges that a discriminatory act has been committed but the individual is unable or is reluctant to put the allegations in writing, the USDA employee receiving the complaint will do so. The following information is requested during the complaint process.

1. Name, address, and telephone number or other means of contacting the person alleging discrimination.

2. Location and name of the organization or office which is accused of discriminatory practices.

3. The nature of the incident, action, or the aspect of program administration that led the person to allege discrimination.

4. The reason for the alleged discrimination (race, color, national origin, sex, religion, age, disability, or political belief).

5. Names, titles (if appropriate), and addresses of persons who may have knowledge of the alleged discriminatory act.

6. The date(s) on which the discriminatory actions occurred.

D. Complaints are accepted by the USDA, even if the information specified in 120.03 C. is not complete. However, investigations are conducted only if the information concerning C. 2., 3., and 4. is provided. The USDA determines the action to be taken on individual complaints in accordance with current laws and regulations.

FOOD AND NUTRITION SERVICES MANUAL GENERAL PROCEDURES & REQUIREMENTS FNS 120 COMPLAINTS AND FAIR HEARING PROCESS

3 Change #1-2021 May 1, 2021 120.04 STATE COMPLAINT PROCEDURES The N.C. Department of Health and Human Services (DHHS) maintains a system for handling complaints filed by participants, potential participants, or other concerned individuals or groups. Complaints regarding such areas as processing standards, general service to participants or potential participants, and complaints in areas not covered by fair hearing or discrimination complaint procedures are processed in the following manner. A. The N.C. DHHS ensures that each reported incident is studied, resolved in the appropriate manner, and corrective or remedial action taken when warranted. The N.C. DHHS notifies the complainant of the disposition of the complaint within a reasonable period of time. B. Records of complaints received, and their disposition are filed and checked periodically for possible patterns of deficiencies. When appropriate, any identification of causal factors is included in the State Corrective Action Plan. C. Forward complaints of discrimination, including the information in Section 125.03 C, to the N.C. DHHS within five calendar days at the address below. This information will then be sent to USDA. North Carolina Department of Health and Human Services Carlotta Dixon, MHS, CPM Program Compliance Section Chief Equal Employment Opportunity Title VI Civil Rights Coordinator 820 S. Boylan Avenue 2401 Mail Service Center Raleigh, N.C. 27699-2401 NOTE: Complaints regarding such areas as processing standards and service to participants are generally handled under this complaint procedure. 120.05 County Complaint Tracking Requirements A. The local Department of Social Services is required to track customer complaints received by workers, supervisors, or agency call centers, regardless of the reason on the state approved custome complaint tracking log. At the end of each quarter it is the counties responsibility to analyze, determine trends and take appropriate actions such as staff meetings, training, etc. B. The customer complaint log must be submitted to the Division of Social Services every six months to determine the potential need for statewide training and/or process improvement. • Complaints made October 1st through March 31st are due to the state office no later than April 30th. • Complaints made April 1st through September 30th are due to the state office no later than October 31st.

FOOD AND NUTRITION SERVICES MANUAL GENERAL PROCEDURES & REQUIREMENTS FNS 125 DISCLOSURE OF INFORMATION AND INQUIRIES

1 Change #1-2021 May 1, 2021 FNS 125 DISCLOSURE OF INFORMATION AND INQUIRIES Change #1-2021 May 1, 2021

125.01 DISCLOSURE OF INFORMATION In accordance with Section 11(e)(8) of the Food Stamp Act (7 U.S.C. 2020) and 7 CFR 272.1(c), the agency must restrict the use of information obtained from applicant or recipient households, exclusively for the program, to: A. Persons directly connected with the administration and enforcement of the Food and Nutrition Services (FNS) Program or with other federal assistance programs or federally assisted State programs that provide assistance on a means-tested basis to low-income individuals. B. Persons directly connected with the administration or enforcement of the programs which are required to participate in the State Income and Eligibility Verification System (IEVS) to the extent that FNS information is useful in establishing or verifying eligibility or benefit amounts under those programs. C. Persons directly connected with the verification of immigration status of aliens applying for Food and Nutrition Services benefits, through the Systematic Alien Verification for Entitlement (SAVE) Program, to the extent the information is necessary to identify the individual for verification purposes. D. Persons directly connected with the administration of the Child Support Program under Part D, Title IV of the Social Security Act in order to assist in the administration of that program. E. Employees of the Secretary of Health and Human Services, as necessary, to assist in establishing or verifying eligibility or benefits under Titles II and XVI of the Social Security Act. F. Employees of the Comptroller General's Office of the United States for audit examination authorized by any other provision of law. G. Persons directly connected with nutrition education and outreach efforts may be provided with the names and addresses of participating households. H. Local, State, or federal law enforcement officials, upon their written request, for the purpose of investigating an alleged violation of the Food Stamp Act or regulation. The request must include the identity of the individual requesting the information and his authority to do so, violation being investigated, and the identity of the person on whom the information is requested. I. The agency must make available, upon written request by any law enforcement officer (including parole/probation officials), the address, social security number (SSN), and photograph (if available) of any active or inactive Food and Nutrition Services recipient if the officer furnishes the recipient's name and notifies the agency that : 1. The recipient is fleeing to avoid prosecution, custody, or confinement for a felony; or

FOOD AND NUTRITION SERVICES MANUAL GENERAL PROCEDURES & REQUIREMENTS FNS 125 DISCLOSURE OF INFORMATION AND INQUIRIES

2 Change #1-2021 May 1, 2021 2. The recipient is violating a condition of parole or probation; or 3. The recipient has information necessary for the officer to conduct an official duty related to a felony parole violation for a household member. NOTE: Recipients of information released under 130.01 A. of this section must adequately protect the information against unauthorized disclosure to persons or for purposes not specified in this section. In addition, information received through the Income and Eligibility Verification System (IEVS) must be protected from unauthorized disclosure as required by regulations established by the information provider. Information released to the agency pursuant to Section 6103(1) of the Internal Revenue Code of 1954 is subject to the safeguards established by the Secretary of the Treasury in Section 6103(1) of the Internal Revenue Code and implemented by the Internal Revenue Service in its publication, Tax Information and Security Guidelines.

125.02 INQUIRIES A. Congressional Inquiries The Food and Nutrition Services Program policy makes case file information available to individuals outside the administration of the program when the subject of the case file agrees to the review in writing. A congressional inquiry, or inquiry by other government officials at the State level, on behalf of a household, can be construed as meeting this requirement. Therefore, any request for case file information that originated from an inquiry by the household for which the information is requested should be honored. In any case, when there is doubt that the household wants the information released, contact the household regarding their wishes. B. Collateral Contacts Information divulged as a necessary part of the collateral contact process required by this manual is not a violation of the disclosure of information provisions of the Food and Nutrition Services Program. C. Written Request by a Household If there is a written request by a responsible member of the household, its currently authorized representative, or a person acting on its behalf to review materials contained in its case file, make material and information in the case file available for inspection during normal business hours. However, the county department may withhold confidential information, such as the names of individuals who have disclosed information about the household without the household's knowledge or the nature or status of pending criminal prosecutions.

FOOD AND NUTRITION SERVICES MANUAL

GENERAL PROCEDURES & REQUIREMENTS FNS 130 RECORDS RETENTION, OWNERSHIP, AND DOCUMENTATION

1 Change #1-2021 May 1, 2021 FNS 130 Records Retention, Ownership, and Documentation Change #1-2021 May 1, 2021

130.01 RETENTION OF RECORDS A. All programs must follow the guidance provided by the controller’s office to determine the required length of record retention. The record retention schedule can be viewed at: https://www.ncdhhs.gov/about/administrative-offices/office-controller/records-retention . The county Department of Social Services (DSS) keeps records and submits accurate and timely reports and other information as may be required from time to time by the State and Food and Nutrition Service (FNS). 1. Certification Records - Certification records are available for review and audit by FNS or the United States Department of Agriculture (USDA) for a period of three years from the month of origin of each record. The three-year retention is required by federal regulations and applies regardless of whether or not an audit or review is performed in the three-year period. a. North Carolina Controller’s Office may require longer retention for certification records. Refer to DHHS Records Retention and Disposition Schedule at web address listed above. b. Records containing an Intentional Program Violation (IPV) disqualification and/or an IPV claim must be retained indefinitely. c. Records entered into NC FAST cannot be deleted at the county department of social services level. They will be retained in NC FAST until all audits have been completed and time-limits have been met. 2. Fiscal Records - Fiscal records and accountable documents must be retained for three years from the date of fiscal or administrative closure. Refer to DHHS Records Retention and Disposition Schedule at web address listed above. Fiscal closure means that obligations for or against the federal government have been liquidated. Administrative closure means that the State agency has determined and documented that no further action to liquidate the obligation is appropriate.

130.02 RECORD OWNERSHIP A. All client files are the property of the county DSS, and employees of the agency must safeguard the confidentiality of information in the files. The requirement that the confidentiality of client information be safeguarded applies regardless of whether the caseworker is working in the agency or at home. B. The agency must provide a secure place or places with controlled access for the storage of records. Only individuals who must access client information in order to carry out

FOOD AND NUTRITION SERVICES MANUAL

GENERAL PROCEDURES & REQUIREMENTS FNS 130 RECORDS RETENTION, OWNERSHIP, AND DOCUMENTATION

2 Change #1-2021 May 1, 2021 assigned duties or who are approved by the agency shall have access to the record storage areas. Only authorized individuals may remove a client record from the storage area. The authorized individual is responsible for the security of the record until it is returned to the storage area. C. The agency is responsible for establishing security procedures to prevent unauthorized disclosure of client information from automated systems. The county DSS director is responsible for ensuring that all authorized individuals are informed of the confidential nature of client information and that training is provided for all persons with access to client information. D. Volunteers, interns and contract employees are treated the same as county DSS employees for the purposes of confidentiality and security of records.

130.03 CASE RECORD DOCUMENTATION A. Verifications are the means by which points of eligibility are determined to be accurate. B. Documentation means the type of verification and a summary of the information obtained has been entered in the appropriate evidences and/or case notes in NC FAST. 1. Documentation must be detailed so that a County, State, or Federal reviewer is able to determine the reasonableness of the determination. 2. Documentation also applies to updating the case record to reflect that all program requirements have been met in the processing of an application, redetermination, or change in circumstances impacting eligibility.

FOOD AND NUTRITION SERVICES MANUAL

GENERAL PROCEDURES & REQUIREMENTS FNS 135 SECOND PARTY REVIEW & QUALITY CONTROL

1 Change #1-2021 May 1, 2021 FNS 135 Second Party Review & Quality Control Change #1-2021 May 1, 2021

135.01 SECOND PARTY REVIEWS State rules require counties to conduct second-party reviews. A. This procedure reviews actions conducted on all households with five or more members applying for initial certification or recertification for Food and Nutrition Services (FNS). B. Action taken on households with four or fewer members is subject to a second-party review as determined by the division director based on the future error prone profiles. C. County agencies may voluntarily implement additional second party reviews as they deem necessary.

135.02 QUALITY CONTROL A. Federal FNS Program regulations require the establishment of a Quality Control (QC) System. 1. This system is an ongoing, statistically valid review of participating households to validate the accuracy of household eligibility, to determine the extent to which households are receiving the allotments to which they are entitled, and to ensure that decisions to deny or terminate household participation are valid. 2. The QC System further involves the periodic assembly and analysis of findings to determine incidence and amounts of errors and action to bring excessive levels of errors within established tolerances. 3. States with the highest or most improved performance in the administration of the FNS Program are awarded performance bonuses each fiscal year. The bonuses are awarded for payment accuracy, negative error rate, participation rate, and application processing timeliness. 4. Follow instructions in Section 210.13, Households with Special Circumstances, when a FNS Unit does not cooperate with the QC review. B. Requirement to cooperate with Quality Control Review

1. A household is ineligible to participate in the FNS if it refuses to cooperate with State and/or USDA staff who conduct QC Reviews. Cooperation includes, but is not limited to: a. Being available for a personal interview b. Providing requested information.

FOOD AND NUTRITION SERVICES MANUAL

GENERAL PROCEDURES & REQUIREMENTS FNS 135 SECOND PARTY REVIEW & QUALITY CONTROL

2 Change #1-2021 May 1, 2021 2. Terminate FNS benefits if a State or Federal QC Reviewer informs the agency of a household’s refusal to cooperate. a. If a household is terminated for refusal to cooperate with a QC Reviewer, the household can reapply at any time. b. The household cannot be determined eligible until it cooperates or the disqualification time period ends. c. The QC Referral will indicate the maximum disqualification for refusal to cooperate. d. Do not terminate FNS benefits based on a FNS unit’s failure to cooperate with QC in another state.

FOOD AND NUTRITION SERVICES MANUAL GENERAL PROCEDURES & REQUIREMENTS FNS 140 PERSONNEL REQUIREMENTS

1 Change 1-2021 May 1, 2021 FNS 140 Personnel Requirements Change # 1-2021 May 1, 2021

140.01 PERSONNEL REQUIREMENTS A. The county department of social services is required to provide a sufficient number of qualified employees necessary to assure that prompt action is taken on all applications. County employees used to certify households for participation in the Food and Nutrition Services (FNS) Program must meet the standards set by State Human Resources in the certification of applicants for benefits under the federally aided public assistance programs. Only qualified county employees may conduct the interview of applicant households and determine the household's eligibility or ineligibility and the level of assistance. B. Exceptions to the use of State approved personnel in the interview and certification process are made for: 1. Supplemental Security Income (SSI) households applying at the Social Security Administration. 2. The county department of social services may utilize temporary, non-merit-based staff for the administration of the Disaster Food and Nutrition Services (DFNS) Program. This includes retired eligibility staff, staff from other county or state departments, as well as contracted staff that are adequately trained and supervised by county merit-based staff. This does not include keying in NC FAST unless the individual has prior NC FAST experience. C. Program discrepancies tied to staff shortages include such areas as applications pending over allowable time standards, incomplete verifications, omissions on forms, failure to comply with the work registration requirement, information already available in the case file, etc. Corrective action is needed in many areas of program operations, but none is as important as this single area. An adequate number of trained staff is required so that each case is assured of receiving program expertise and reducing program discrepancies.

140.02 SPECIAL PROVISIONS Special provisions apply regarding two groups of individuals. A. Volunteers Volunteers or other persons not employed by the county may be used in certification related activities but are not permitted to conduct the interview or certify as eligible, applicant households. Volunteers are used to provide program information, teach nutrition education, and provide transportation to the certification office. They may also assist households who need help with completing the application and other forms and in securing the needed verification of information reported on the application. In certain

FOOD AND NUTRITION SERVICES MANUAL GENERAL PROCEDURES & REQUIREMENTS FNS 140 PERSONNEL REQUIREMENTS

2 Change 1-2021 May 1, 2021 situations, volunteers may act as an authorized representative for households who are unable to personally come to the certification office. B. Personnel and Facilities of Parties to a Strike The county department may not use, in any certification-related activity, persons or organizations that are parties to a strike or lockout. Such persons are not permitted to certify applicant households, interview households, or secure verification required of such households. These individuals may be used as a source of verification for information provided by the applicant household if they would, under normal circumstances, be in the best position to confirm a household's circumstances. Facilities of persons or organizations who are parties to a strike or lockout may not be used in the certification process or as a site for the interview.

140.03 FRAUD DETECTION A. Counties are required to establish and operate fraud detection units in counties where 5,000 or more households participate in the program. The fraud detection unit is responsible for detecting, investigating, and assisting in the prosecution of program fraud. The workers fulfilling this function are not required to work full-time in fraud detection or work exclusively on the program. B. A written county procedure that systematically identifies and refers potential fraud cases to investigators is considered a detection activity meeting the requirements of this section. C. It is strongly recommended that all counties establish and operate fraud detection units regardless of the number of households participating in the program.

140.04 BILINGUAL REQUIREMENTS A. Based on the estimated total number of low-income households in a county which speak the same non-English language (a single-language minority), the county department must provide bilingual program information, certification materials, and staff or interpreters as specified in this section. Single language “minority" refers to households which speak the same non-English language, and which do not contain adult(s) fluent in English as a second language. 1. The county must provide materials used in program information activities in the appropriate language as follows. a. In counties with less than 2,000 low-income households if approximately 100 or more of those households are of a single-language minority. b. In counties with 2,000 or more low-income households if approximately five percent or more of those households are of a single-language minority.

FOOD AND NUTRITION SERVICES MANUAL GENERAL PROCEDURES & REQUIREMENTS FNS 140 PERSONNEL REQUIREMENTS

3 Change 1-2021 May 1, 2021 c. In counties with a certification office that provides bilingual service as required in 140.04 B. 2. The county must provide both certification materials in the appropriate language and bilingual staff or interpreters as follows. a. In each individual certification office that provides service to an area containing approximately 100 single-language minority low-income households. b. When there is a total of less than 100 low-income households if a majority of those households are of a single-language minority. c. "Certification materials" include the application form, change report form, and appropriate notices sent to households. 3. In counties with a seasonal influx of non-English speaking households, the county department must provide bilingual materials and staff or interpreters if, during the seasonal influx, the number of single-language minority households which move into the county meets or exceeds the requirements in 140.04 A. and 140.04 B. 4. The county department must ensure that certification offices subject to the requirements in 140.04 A. or 140.04 B. provide sufficient bilingual staff or interpreters for the timely processing of non-English speaking applicants. 5. The county department develops estimates of the number of low-income single- language minority households, both participating and not participating in the program, for the county and each certification office by using census data (including the Census Bureau's Current Population Estimates and Projections, Series P25, No.627) and knowledge of the county and areas serviced by the certification offices. a. Local Bureau of Census offices, Community Services Administration offices, Community Action Agencies, planning agencies, migrant service organizations, and school officials may be important sources of information in determining the need for bilingual services. b. If these information sources do not provide sufficient information to determine if there is a need for bilingual staff or interpreters, each certification office will, for a six-month period, record the total number of single-language minority households that visit the office to make inquiries about the program, file a new application, or be recertified. c. Those certification offices that are contacted by a total of over 100 single- language minority households in the six-month period will be required to provide bilingual staff or interpreters. d. County departments also combine the figures collected in each certification office to determine the need for bilingual outreach materials in the county.

140.05 TRAINING REQUIREMENTS

FOOD AND NUTRITION SERVICES MANUAL GENERAL PROCEDURES & REQUIREMENTS FNS 140 PERSONNEL REQUIREMENTS

4 Change 1-2021 May 1, 2021 A. The State provides periodic training to counties regarding policies and procedures of the FNS Program. B. County directors, through their FNS supervisors, are solely responsible for direct orientation and training of new personnel, as well as providing day-to-day training and consultation for each FNS caseworker to ensure appropriate eligibility determinations and program effectiveness. Supervisors are responsible for developing and instituting training sessions for the appropriate workers in their agencies. County training programs must cover: 1. FNS eligibility criteria; 2. FNS certification procedures; 3. Household rights and responsibilities, including non-discrimination rights; 4. Other job-related responsibilities concerning the certification of households, for example, interviewing skills, supervisory training, etc.; 5. Date management and issuance related activities; and 6. Record keeping and reporting requirements. NOTE: County agencies are required to maintain a training file for documenting training activities conducted or attended. C. Employees assigned responsibility for the certification of households must be provided sufficient training prior to initially assuming their duties. Formal training must be provided periodically to all FNS Program staff, as needed. The need for training is established by policy changes and program deficiencies identified through the Performance Reporting System. Inadequate performance by individual employees may also indicate the need for training. D. State and/or county may allow public attendance at formal certification training sessions that are conducted on a statewide, regional, countywide, or citywide basis. Attendance at these training sessions may be allowed if, in view of the agency, such participation is beneficial. The State and/or county: 1. May invite individuals who represent recipients or organizations working on behalf of recipients who are knowledgeable about program rules, certification requirements; 2. May invite individuals who are actively engaged in work or volunteer activity related to FNS certification rules; 3. Should not arbitrarily exclude individuals (who otherwise meet this criteria) due to disagreements between these individuals and the State or county concerning aspects of FNS operations; and 4. The county may limit the role of public participants to observation only.

FOOD AND NUTRITION SERVICES MANUAL GENERAL PROCEDURES & REQUIREMENTS FNS 140 PERSONNEL REQUIREMENTS

5 Change 1-2021 May 1, 2021 D. Training must be provided to volunteers and to the staff of other organizations and agencies that the State or county uses for providing program information. The training will be in sufficient detail and frequency to ensure the information provided is accurate. E. State hearing officials and quality control reviewers are provided with sufficient training prior to initially assuming their duties. This training includes a detailed comprehensive study of the regulations and State hearing or performance reporting procedures, as appropriate. Formal training is also provided periodically to hearing officials and reviewers. The need for training is established by policy changes and program deficiencies indicated by the performance reporting system. F. The Food and Nutrition Service (FNS) of the United States Department of Agriculture reviews and approves State training procedures. County training is subject to county review conducted under the State Performance Reporting System. FNS reviews the effectiveness of State and county training based on information obtained from the performance reporting system and other sources.

140.06 DIVISION OF RESPONSIBILITIES A. System functions are divided into three categories: 1. Inquiry only: appropriate for any county agency employee who has the need to know FNS case data. Such persons can include support staff who answer questions about certification status and benefit availability as well as caseworkers, supervisors, and other administrators. 2. Transaction Keying Authority: access is appropriate only to those agency employees who authorize benefits. Since direct worker entry, caseworkers became responsible for all tasks necessary to establish and authorize FNS benefits. 3. Transaction Authorization: may be given to caseworkers and supervisors to key requests for supplements, restored benefits, and replacement benefits in addition to keying new cases. B. Electronic Benefit Transfer (EBT) Admin Terminal Inquiry and Update Functions 1. Admin Terminal Inquiry is appropriate for any county agency employee who has the need to know FNS, Work First, or Special Assistance EBT data. Such persons may include support staff who answer questions about card issuance and benefit availability, as well as caseworkers, supervisors, and other administrators. 2. Admin Terminal Update Functions include Card Maintenance Screen, Benefit Maintenance Screen, Client Maintenance Screen, and Adjustment/Repayment Screen. To ensure separation of duties, Admin Terminal Update Functions cannot be given to Individuals that have Transaction Keying Authority or Transaction Authorization as described in 140.06 2 & 3.

FOOD AND NUTRITION SERVICES MANUAL GENERAL PROCEDURES & REQUIREMENTS FNS 140 PERSONNEL REQUIREMENTS

6 Change 1-2021 May 1, 2021 a. Card Maintenance Screen allows the user to reset a pin, place an EBT card in lost, damaged, stolen, or other status which deactivates it immediately and causes a new EBT card to be mailed to the client. A fee of $2.50 is debited from the client’s account, for lost or stolen cards only, at the time of the status change. If the account balance does not have sufficient funds, a message will appear, and the account will be moved to “Not Sufficient Funds” to inactivate the account until funds are available. b. Benefit Maintenance Screen allows activation or cancellation of the entire EBT account for a client. This function will be performed by designated staff with the Economic Services Section by telephone at 866-719-0141.

140.07 MERIT BASED STAFF A. Staff performing eligibility determination functions for FNS are required to meet merit- based requirements as set forth in federal Office of Personnel Management Standards, Subpart F – Standards for Merit System of Personnel Administration; Section 900.603 (pages 579-580), which include principles of recruitment, selection and advancement, compensation, training, performance, and “fair treatment” principles of personnel management. In addition, 7 CFR 272.4(a)(1) requires that personnel used in the certification process or administration of SNAP (Food and Nutrition Services) be employed in accordance with the current standards for a merit system of personnel administration. Any questions about compliance with the merit-based requirements of FNS staff should be referred to your county Human Resources Office. B. Non merit based FNS staff shall not conduct certification interviews or certify FNS cases in NC FAST. Staff not meeting the merit-based requirements may be used to assist applicants in the application and certification process, excluding interviewing, as well as assisting in securing needed verifications. Non-merit-based staff may also be used to assist with updating information related to Able-Bodied Adults without Dependents per Dear County Director Letter EFS-FNSEP-24-2015.

FOOD AND NUTRITION SERVICES MANUAL

GENERAL PROCEDURES & REQUIREMENTS FNS 145 CLAIMS

1 Change 1-2021 May 1, 2021 FNS 145 CLAIMS Change #1-2021 May 1, 2021

145.01 CLAIMS AGAINST HOUSEHOLDS Handle cases where a participating household received an overissuance of benefits in accordance with Section 800, Claims. Any intentional misrepresentation on the part of the household may subject the individual to prosecution. Applicable provisions of the General Statutes of North Carolina are repeated below. 108A-53. “(a) Any person whether provider or recipient or person representing himself as such, who knowingly obtains or attempts to obtain, or aids or abets any person to obtain by means of making a willfully false statement or representation or by impersonation or by failing to disclose material facts or in any manner not authorized by this part or the regulations issued pursuant thereto, transfers with intent to defraud any food stamps or authorization cards to which that person is not entitled in the amount of four hundred dollars ($400.00) or less shall be guilty of a Class 1 misdemeanor. Whoever knowingly obtains or attempts to obtain by means of making a willfully false statement or representation or by impersonation or by failing to disclose material facts or in any manner not authorized by this part or the regulations issued pursuant thereto, transfers with intent to defraud any food stamps or authorization cards to which he is not entitled in an amount more than four hundred dollars ($400.00) shall be guilty of a Class I felony. (b) Whoever presents or causes to be presented food stamps or authorization cards for payment or redemption, knowing the same to have been received, transferred, or used in any manner in violation of the provisions of this part or the regulations issued pursuant to this part shall be guilty of a Class 1 misdemeanor. (c) Whoever receives any food stamps for any consumable item knowing that such food stamps were procured fraudulently under subsections (a) and or (b) of this section shall be guilty of a Class 1 misdemeanor. (d) Whoever receives any food stamps for any consumable item whose exchange is prohibited by the United States Department of Agriculture shall be guilty of a Class 1 misdemeanor.”

FOOD AND NUTRITION SERVICES CERTIFICATION

GENERAL PROCEDURES & REQUIREMENTS FNS 150 COMMODITIES PROGRAMS

1 Section 150 Change #02-2021 June 1, 2021 FNS 150 Commodities Program Change #02-2021 June 1, 2021

150.01 COMMODITIES PROGRAM The Emergency Food Assistance Program (TEFAP) is a federal program that helps supplement the diets of low-income Americans, including elderly people, by providing them with emergency food and nutrition assistance at no cost. Under TEFAP, the United States Department of Agriculture (USDA) makes commodity foods available to the North Carolina Department of Agriculture (NCDA). The NCDA provides the food to local agencies that they have selected. The local agencies are usually food banks. TEFAP is administered at the Federal level by the Department of Agriculture’s Food and Nutrition Service (FNS). FNS also administers the Supplemental Nutrition Assistance Program at the Federal level. NCDA receives the food and supervises overall distribution. TEFAP is handled in two different ways in North Carolina. Some counties choose to have the county Department of Social Services (DSS) administer the program while other counties have non-profit organizations administering TEFAP. Regardless of the method of delivery, individuals who are eligible for FNS are also eligible for TEFAP commodities. 150.02 FOODS AVAILABLE THROUGH TEFAP The types of commodity foods USDA purchases for TEFAP distribution vary depending on the preferences of states and agricultural market conditions. Commodities normally include meat products, dairy products, grains, fruits, and vegetables. 150.03 COUNTY DSS-ADMINISTERED TEFAP COMMODITIES PROGRAMS The following procedures are in place for counties that participate in the county DSS- administered program. A DSS-3449, Authorization for USDA Donated Foods, is printed for each FNS unit certified at the time of selection. The card serves as the official application form. Upon receipt of the commodities, the FNS unit member signs the card to acknowledge receipt of the specified foods and quantities. The FNS unit member must present the DSS-3449 and their EBT card or other form of identification. The DSS-3449 contains the name and address of the head of household, county name, North Carolina Families Accessing Services through Technology (NC FAST) case number, household size, month of commodity distribution, authorized foods to be distributed, quantity of food to be distributed (or a blank), and a message. A. The county DSS is responsible for keying certain information in NC FAST to generate the information that is printed on the DSS-3449. The county DSS must key the following required fields: 1. Month of commodity distribution; 2. Authorized foods;

FOOD AND NUTRITION SERVICES CERTIFICATION

GENERAL PROCEDURES & REQUIREMENTS FNS 150 COMMODITIES PROGRAMS

2 Section 150 Change #02-2021 June 1, 2021 3. Quantity selection; and 4. Message – The message must include dates, times, and location of the pickup. Include the physical address of the pickup location. NOTE: All other information printed on the DSS-3449 is system-generated and requires no data entry or action by county DSS. B. The cutoff date for commodity distribution entry is the third working day prior to the end of the month. Automation staff may be contacted whenever commodity cards need to be printed earlier or later than the cutoff date. They can be reached at 919-733-8938. C. Commodity cards are mailed no later than the fifth calendar day of the distribution month. To ensure that commodity cards are received prior to distribution dates, counties must allow ample time between the fifth calendar day and actual distribution dates. D. Advise an individual to self-declare their income when they do not have a commodities card. The commodities distributor will determine their eligibility. E. Direct questions concerning commodities automation issues to the Performance Reporting/Automation Unit at 919-733-8938. For questions concerning the commodities program, contact the Food Distribution Division, North Carolina Department of Agriculture and Consumer Services. The phone number is 919-575-4490 or toll free 1- 888-498-3449.

FOOD AND NUTRITION SERVICES CERTIFICATION GENERAL PROCEDURES & REQUIREMENTS LIFELINE/LINK-UP ASSISTANCE PROGRAMS

1 Section 155 Change #02-2021 June 1, 2021 FNS 155 Lifeline/Link-Up Assistance Programs Change #02-2021 June 1, 2021

155.01 LIFELINE/LINK-UP ASSISTANCE PROGRAMS The Federal Communications Commission’s (FCC’s) Lifeline Assistance Program is a government benefit program designed to promote universal service by helping low-income individuals afford telephone service in every state, territory, commonwealth and/or Tribal lands. Lifeline Assistance allows low-income customers to receive a credit on their monthly telephone bill. The FCC Lifeline Assistance Program is supported by the federal Universal Service Fund (USF). Customers may not receive both discounts at the same time. In addition to the Lifeline Program, the Link-Up Program is another federal benefit program that provides a discount to subscribers living on Tribal lands. The Link-Up program provides a discount that reduces the installation or activation of a wireline or wireless telephone for the primary residence. 155.02 LIFELINE/LINK-UP ASSISTANCE PROGRAMS REQUIREMENTS A. The customers must have an income that is at or below 135% of the federal Poverty Guidelines and receive assistance from one of these programs: 1. Food and Nutrition Services; 2. Medicaid; 3. Supplemental Security Income (SSI); 4. Federal Public Housing Assistance; 5. Veterans or Survivors Pension Benefits; 6. Bureau of Indian Affairs General Assistance; and 7. Tribally Specific programs. B. Head of household must have the telephone service listed in his/her name; and C. Receive the telephone bill.

155.03 LIFELINE PROGRAM PROCEDURES FOR APPLICATIONS & REAPPLICATIONS

A. The county Department of Social Services (DSS) is responsible for explaining the Lifeline and Link-up Assistance Programs to the applicant.

FOOD AND NUTRITION SERVICES CERTIFICATION GENERAL PROCEDURES & REQUIREMENTS LIFELINE/LINK-UP ASSISTANCE PROGRAMS

2 Section 155 Change #02-2021 June 1, 2021 B. The county DSS is not responsible for providing a form to the client; households interested in this service must contact their provider directly to apply for the Lifeline Program. At this time no new brochures or posters will be made available.

FOOD AND NUTRITION SERVICES MANUAL

GENERAL PROCEDURES & REQUIREMENTS FNS 160 AUTOMATED INQUIRY AND MATCH PROCEDURES

1 Section 160 Change 03-2021 June 1, 2021 FNS 160 AUTOMATED INQUIRY AND MATCH PROCEDURES Change #03-2021 June 1, 2021

160.01 INCOME AND ELIGIBILITY VERIFICATION SYSTEM (IEVS) REQUIREMENTS Federal regulations require the State to maintain and use an IEVS. Using the social security number (SSN) for all household members, the State matches information with the following agencies: • Division of Employment Services • Social Security Administration • Internal Revenue Service • Other State agencies A. Information gained through the IEVS process is used to: 1. Verify eligibility; 2. Determine the amount of Food and Nutrition Services (FNS) benefits due to eligible FNS units; 3. Investigate a potential overissuance of FNS benefits; and 4. Obtain information that is used in conducting criminal or civil prosecutions based on the receipt of FNS benefits to which they were entitled by participating FNS units. Note: Use of the IEVS process does not relieve the FNS household from the responsibility to provided required verifications. If information in incorrect or unavailable through the IEVS process request the information from the FNS household using the DSS-8650, Notice of Information Needed. B. In addition to using the State-produced match reports and North Carolina Families Accessing Services through Technology (NC FAST) produced worker tasks, the county Department of Social Services (DSS) is required to conduct NC FAST on-line data matches at application, reapplication or recertification to verify eligibility and reduce the incidence of fraud. Matches are to be completed, when appropriate, to verify reported changes. C. Complete appropriate action on match reports that are “verified upon receipt” within 30 calendar days of the date on the match report unless adverse action is required FRR’s and BEER’s are not considered verified upon receipt and no action is taken until the next recertification. If adverse action is required, issue the notice no later than the 30th calendar day. D. Refer to the NC FAST Help for instructions on how to handle worker tasks generated by the system.

FOOD AND NUTRITION SERVICES MANUAL

GENERAL PROCEDURES & REQUIREMENTS FNS 160 AUTOMATED INQUIRY AND MATCH PROCEDURES

2 Section 160 Change 03-2021 June 1, 2021 160.02 NORTH CAROLINA DIVISION OF EMPLOYMENT SECURITY (DES) Access to DES files is available through NC FAST on-line data matches. Use NC FAST on- line data matches information as part of the eligibility determination process at application, reapplication, and recertification. Information gained through the DES match is used to discover leads of possible wages, previous work history, potential eligibility for Unemployment Benefits (UIB), and to verify current UIB income. Refer to NC FAST Help for instructions regarding access to the DES inquiry. A. At application, reapplication and recertification request NC FAST on-line data matches for DES. Use all reported SSN’s to obtain online data matches in NC FAST for each FNS unit member’s wage and UIB data to discover leads of possible wages, previous work history, and potential eligibility for UIB. County DSS are not required to print copies of the online data matches as NC FAST will maintain a history of all data matches performed. B. If the inquiry shows the FNS unit member has wages or UIB, compare the place and period of employment and quarterly earnings or the amount of UIB shown by DES to the information provided by the applicant. Document the findings on the appropriate evidence in NC FAST. C. Follow up on all leads by discussing them with the applicant. Document the applicant’s response. When a discrepancy between the match and the information provided by the applicant is discovered, obtain verification to determine eligibility. D. If either wages or UIB has been verified and the verification is consistent with the inquiry information, document the source of verification in the appropriate evidence in NC FAST. E. If either wages or UIB was not reported or is incorrect, contact the household to determine continuing eligibility and to resolve the discrepancy. F. Evaluate the verification to determine if the FNS household failed to report wages or UIB benefits during a previous application, reapplication or recertification; or failed to report a required change in situation during a previous certification period. G. If appropriate, follow procedures in Section 800, Claims for overissuance and Section 825, IPV Disqualifications, for suspected Intentional Program Violation (IPV).

160.03 BENEFICIARY DATA EXCHANGE (BENDEX) The BENDEX System is a computer match by Social Security Number (SSN) between the public assistance case files and Social Security Administrations records. BENDEX files are available through NC FAST on-line data matches and individual information sheets. Use NC FAST on-line data matches as part of the eligibility determination process at applications, reapplications, and full recertifications. A. NC FAST On-line Data Matches 1. Request NC FAST on-line data matches at application, reapplication, and at each full recertification for every household member using all reported SSN's. Information

FOOD AND NUTRITION SERVICES MANUAL

GENERAL PROCEDURES & REQUIREMENTS FNS 160 AUTOMATED INQUIRY AND MATCH PROCEDURES

3 Section 160 Change 03-2021 June 1, 2021 obtained through the NC FAST on-line data matches are used to verify and explore possible payments available to the FNS unit. 2. If a match is found, take the following actions, and document the verification in the appropriate evidences and comments sections of NC FAST. a. Verify the entitlement amount. Document verification in the appropriate evidence. b. Complete the NC FAST on-line data matches (SOLQ) or the Third Party Query (TPQY) request to resolve a discrepancy between the FNS unit’s statement and the information shown in the BENDEX System. NOTE: It is recommended that the Third Party Query be used to verify alien quarters only. c. If the information was not reported or is incorrect, contact the FNS unit to determine continuing eligibility. d. If appropriate, follow procedures in Section 800, Claims, for over-issuance and in Section 825, IPV Disqualifications, for suspected fraud. 3. If the information is incorrect, document the case file and wait until the next BENDEX is received. 4. Check the BENDEX record for other information that may affect eligibility. If information is found that differs from that reported by the FNS unit, give the FNS unit an opportunity to verify the information from another source. B. BENDEX Information Sheets BENDEX information sheets are mailed to the county in any of the following situations. 1. First receipt of social security benefits; 2. Increase or decrease in benefits; 3. Hospital benefits change; 4. A recipient becomes entitled to Supplemental Medicare B insurance; or 5. There is any other change in the Social Security Administration’s Master Beneficiary Requirements. C. County DSS Action Requirements Take the appropriate timely action as specified in 160.01 C. on BENDEX information sheets. 1. Pull the case file. Compare the information on the BENDEX information sheet with the information in the case file. 2. If the case file indicates the information on the BENDEX information sheet was previously verified and the verification is consistent with the BENDEX information

FOOD AND NUTRITION SERVICES MANUAL

GENERAL PROCEDURES & REQUIREMENTS FNS 160 AUTOMATED INQUIRY AND MATCH PROCEDURES

4 Section 160 Change 03-2021 June 1, 2021 sheet, document the case file that the BENDEX System was checked. No further action is necessary. 3. If the information was not reported or is incorrect, contact the FNS unit to determine continuing eligibility. 4. If appropriate, follow procedures in Section 800, Claims, for overissuance and Section 825, Intentional Program Violation (IPV) Disqualifications, for suspected fraud. D. Retention Retain the BENDEX information sheet for three years from the date on the sheet. 160.04 STATE DATA EXCHANGE (SDX) The SDX provides detailed information about Supplemental Security Income (SSI) benefits. Access to SDX information is available through the NC FAST on-line Data Matches and paper listings. The NC FAST on-line data matches information is updated daily. Use NC FAST on-line data matches at application, reapplication, and full recertifications to verify benefit amount and to check for potential receipt of benefits. A. NC FAST On-line Data Matches The NC FAST on-line data matches inquiry reflects the most current information regarding SSI and is updated daily. 1. Perform a NC FAST on-line data matches inquiry at application, reapplication, and at each recertification for each FNS unit member who is a potential SSI recipient. A potentially eligible recipient is anyone age 65 or over or disabled (including a child). A potentially eligible recipient is also anyone that receives a social security disability check that is less than the maximum SSI benefit. NOTE: A check on all FNS unit members may be conducted at the county’s option. However, do not exceed normal processing standards. 2. Use the checklist in the application/recertification workbook to conduct the inquiry. Obtain a screen print of each positive match. File the screen print in the case file. A screen print for negative matches is not required. 3. County DSS Action Requirements a. Verify the SSI amount for information that has been reported. Document the appropriate evidences in NC FAST. b. Complete the SOLQ or TPQY request to resolve a discrepancy between the FNS unit’s statement and the information shown on the SDX. NOTE: It is recommended that the Third Party Query (TPQY) be used to verify alien quarters only. c. Contact the FNS unit when the information is not reported or is incorrect.

FOOD AND NUTRITION SERVICES MANUAL

GENERAL PROCEDURES & REQUIREMENTS FNS 160 AUTOMATED INQUIRY AND MATCH PROCEDURES

5 Section 160 Change 03-2021 June 1, 2021 d. Follow procedures in Section 800, Claims, for overissuance and Section 825, IPV Disqualifications, for suspected fraud when appropriate. e. Check the SDX record for other information that may affect eligibility. When information is discovered that differs from what has been reported by the FNS unit, give the FNS unit an opportunity to verify the information from another source. B. SDX Data Sheets SDX Data Sheets provide information regarding accretions, deletions, changes of address, and other changes in situation. Take appropriate timely action as specified in 160.01 C. Upon receipt of an SDX Data Sheet, check the update against NC FAST. Determine if a FNS unit member has started to receive SSI or has a change in the amount of SSI. If an FNS unit member is identified as receiving SSI or has a change in the amount of SSI, take appropriate action to adjust the allotment. Follow instructions in Section 450, Simplified Reporting Changes during the Certification Period, for acting on a change.

160.05 BENEFICIARY EARNINGS EXCHANGE REPORT (BEER) AND FINANCIAL RESOURCE REPORT (FRR) The BEER Report is produced monthly and identifies FNS unit members who have Self- Employment (SE), Federal Employment (FE), Pension Income (PE), or Military Employment (ME) income reported to the Social Security Administration (SSA). Match information is sent to the counties. The Financial Resource Report (FRR) is an Internal Revenue Service (IRS) match conducted monthly for newly approved Non-Categorically Eligible FNS units and once yearly for Non-Categorically Eligible recipient FNS units. Match information is mailed to counties. Refer to Figure 160-1 for a list of FRR Codes. 160.06 TIME STANDARDS FOR COMPLETING FRR AND BEER REPORTS FRR’s and BEER’s are not considered verified upon receipt and no action is taken until the next recertification. 160.07 SECURITY PROCEDURES There are certain security requirements that are placed on the FRR and BEER Reports under federal law. A. Responsibilities of the County Director All agency employees with access to federal tax information must be thoroughly briefed on security procedures and instructions requiring their awareness and compliance. This includes cleaning staff, security staff, mail handlers, and any other individuals with access to this data because of their job responsibilities. Copies of Internal Revenue Code Sections 7213(A) and 7431 must be given to each employee. (See Figure 160-2.)

FOOD AND NUTRITION SERVICES MANUAL

GENERAL PROCEDURES & REQUIREMENTS FNS 160 AUTOMATED INQUIRY AND MATCH PROCEDURES

6 Section 160 Change 03-2021 June 1, 2021 Review of these procedures must be conducted annually, and employees are required to sign a Documentation of Annual Security Training (See Figure 160-3.). This is the responsibility of the county director. Semi-annually, the IEVS Coordinator mails an internal inspection letter to counties to ensure that security training is conducted. This report must be completed by the county and returned to the IEVS Coordinator. The form is used to track security training. (See Figure 160-3 for a copy of the Internal Inspection Letter.) The director appoints the Security Control Officer and a back-up Security Control Officer. The director also appoints the FRR/BEER control person and a back-up FRR/BEER control person. The director ensures security requirements are met for the agency. The IRS requires two barriers to accessing federal tax information (FTI) – secured perimeter/locked container, locked perimeter/secured interior, or locked perimeter/security container. The FRR/BEER Reports contain FTI; therefore, the agency must meet these IRS security requirements. Details of the security requirements are contained in IRS Publication 1075. This publication can be accessed through the Internet. Go to: http://www.irs.gov/pub/irs- pdf/p1075.pdf. Section 4.0 contains the security information. If your agency does not have access to the Internet, you may contact the IEVS Coordinator with questions or information needed regarding the security requirements. B. Responsibilities of the FRR/BEER Control Person The FRR and BEER Reports are mailed to counties marked “Confidential.” These reports must not be opened in the mailroom but must be delivered to the designated FRR/BEER control person. Immediately upon receipt, the control person must distribute the worker’s copies to the appropriate income maintenance staff for follow-up. To ensure that only individuals who are allowed access to this information handle these reports, the control person must keep a log indicating to whom the reports are given, the date signed out, and the date the information is returned. This log must be maintained for five years before it is destroyed. The control person must also ensure: 1. The reports remain under lock and key when they are not being used by a caseworker; 2. The reports are acted on within the time frames allowed for the specific program; and 3. All caseworker copies of the report are returned and filed with the control copy. 4. FRR/BEER Reports are not destroyed until all copies are returned. C. Responsibilities of the Security Control Officer The Security Control Officer is responsible for conducting internal inspections and semi- annual reviews of county DSS staff to determine if the safeguards are being met. The request for this review is mailed in April and October.

FOOD AND NUTRITION SERVICES MANUAL

GENERAL PROCEDURES & REQUIREMENTS FNS 160 AUTOMATED INQUIRY AND MATCH PROCEDURES

7 Section 160 Change 03-2021 June 1, 2021 If the Security Control Officer and the FRR/BEER Control Officer are the same, another member of the management staff should complete the Internal Inspection and semi- annual review. See Figure 160-4. Please refer to the Security Control Officers Handbook issued by the Division of Social Services and the Division of Medical Assistance in April 1994 for other duties of the Security Control Officer. D. Caseworker Responsibilities The caseworker must safeguard the FRR and BEER Reports while in his possession. If the caseworker leaves the office prior to completing the report, the report must be locked in a file cabinet or drawer or in a locked office. If the caseworker does not have a lock available, the report must be returned to the control person when the office is vacant. If the caseworker’s supervisor has a locking file cabinet or drawer, the caseworker may give the report to the supervisor to safeguard until he is ready to return. 160.08 COUNTY ACTION REQUIREMENTS A. Once the caseworker determines that there are resources or income reported on the FRR or BEER Reports, the caseworker must independently verify these resources or income at recertification. Follow the steps outlined below when working the FRR or BEER Reports. EXCEPTION: When the IRS is the payor of income reported on the 1099-INT, consider the information verified. Do not contact the IRS for additional verification. Refer to Figure 160-1 for a list of Financial Resource Report Codes. 1. Check the case file to see if the resource or income has been previously reported. If the resource or income has not been previously reported, attempt to obtain the information from the client. Send a DSS-8650, Notice of Information Needed, to the client requesting the name of the financial institution and the account number. Allow the FNS unit ten calendar days to provide the requested information. a. If the FNS unit provides the name of the institution and the account number, document the case file that the information has been provided. The source of the information is no longer the FRR or BEER. Attempt to obtain a signed a DSS- 3431, Request for Financial Information. NOTE: Do not ask the client to sign a blank DSS-3431, Request for Financial Information, prior to the receipt of an FRR or BEER Report. i. If the client signs a DSS-3431, send the request for verification of the income or resources to the institution. • The copy of the verification letter may remain in the case file. • Once the verification letter is returned, file the verification letter in the case file.

FOOD AND NUTRITION SERVICES MANUAL

GENERAL PROCEDURES & REQUIREMENTS FNS 160 AUTOMATED INQUIRY AND MATCH PROCEDURES

8 Section 160 Change 03-2021 June 1, 2021 ii. If the client refuses to sign the DSS-3431, issue a DSS-8553, Notice of Adverse Action, DSS-8553, to terminate the case. Refer to Manual Sections FNS 450 Simplified Reporting Changes during the Certification Period and FNS 550, Transitional Food and Nutrition Services Benefits to determine the appropriate reporting requirements prior to determining if it is necessary to react to a change in income. iii. Document the results of the match on the FRR and return it to the control person. b. If the client does not respond to the request or refuses to provide the name of the institution from which he receives the income or resource, fill in the financial institution and account number on a DSS-3431 and attempt to obtain the client’s signature. i. If the FNS unit signs the DSS-3431, send the request for verification of the income or resource to the appropriate financial institution. • The copy of the verification letter must be filed with the FRR or BEER Reports. • When the verification letter is returned, file the verification letter with the FRR or BEER Report. Destroy the copy using procedures in Section 160.09. • Document in the case file the appropriate resource or income, the amount of the resource or income, and that verification is filed with the FRR or BEER dated MM/DD/CCYY. Do not document the name of the institution or account number in the record as this information is considered IRS data. • If the client refuses to sign the DSS-3431, send a DSS-8553, Notice of Adverse Action to terminate the case. Refer to Manual Sections 400 through 550 and determine appropriate reporting requirements prior to determining if it is necessary to react to a change in income. • Document the results of the match on the FRR and return it to the control person. ii. If the income or resource is documented in the case file and was previously verified and, iii. It was verified as terminated. No further verification is required. Document the FRR that the information matched the case file and return the report to the control person. iv. The resource or income is active and, • The record indicates that this resource or income was previously reported by the client, document on the FRR that the information matched the

FOOD AND NUTRITION SERVICES MANUAL

GENERAL PROCEDURES & REQUIREMENTS FNS 160 AUTOMATED INQUIRY AND MATCH PROCEDURES

9 Section 160 Change 03-2021 June 1, 2021 information that is in the case file. There is no need to reverify this information. • The case file indicates that this resource or income was originally obtained from the FRR or BEER, document on the FRR that the information matched the information in the case file. There is no need to reverify this information. • Document the case file that the verification is filed with the FRR or BEER dated MM/DD/CCYY. NOTE: If the case file indicates the information was originally obtained from the FRR or BEER, the source of this information never changes. All subsequent verifications of this information must be filed with the FRR or BEER. B. The caseworker may disclose the information printed on the FRR and may disclose that the information was obtained from the IRS to the individual who has resources reported on the FRR or the individual’s authorized representative. C. If the FNS unit is ineligible based on verification obtained as a result of information on the FRR or BEER Report, terminate the case. Refer to Manual Sections FNS 450 Simplified Reporting Changes during the Certification Period and FNS 550, Transitional Food and Nutrition Services Benefits to determine appropriate reporting requirements prior to determining if it is necessary to react to a change in income. D. Other Disclosure Rules 1. If the case is prosecuted for fraud, verification received from the FRR or BEER Reports may be used; however, it may not be stated that this information was obtained from the IRS to the individuals (other than the client) involved in the case. The caseworker may only state the information was verified through the source (the financial institution). 2. If there is a hearing or appeal, the information obtained from the FRR may be presented as evidence, if necessary. E. Retention of the FRR and BEER Reports The FRR and BEER must be maintained in the county for three years, unless there is a current fraud case. The FRR and BEER related to that case should be flagged for retention. 160.09 DESTRUCTION A. The FRR, BEER, and information obtained from these reports may be destroyed after three years by one of the following methods. 1. Incineration Ensure that all pages are consumed.

FOOD AND NUTRITION SERVICES MANUAL

GENERAL PROCEDURES & REQUIREMENTS FNS 160 AUTOMATED INQUIRY AND MATCH PROCEDURES

10 Section 160 Change 03-2021 June 1, 2021 2. Shredding In order to make reconstruction difficult, the paper should be inserted so that lines are perpendicular to the cutting line. The paper should be shredded into strips that are no wider than 5/16 inch. 3. Microfilmed data must be incinerated or melted or shredded to a 1/35 inch by 3/8 inch strip. B. SSA data (SDX, BENDEX, TPQY, and SOLQ) may be destroyed after three years or after all audits have cleared by one of the following methods. 1. Shredding; 2. Incineration; 3. Sealing the material in cardboard boxes and burying at a landfill under management supervision; or 4. Microfilmed data must be incinerated or melted or shredded to a 1/35 inch by 3/8 inch strip. 160.10 OTHER SECURITY MEASURES A. Treat microfilmed or imaged case information data with the same security measures as case files. B. Store screen prints of ESC, BENDEX, SDX, TPQY, and SOLQ sheets in an area that is physically safe from access by unauthorized individuals during normal business hours, as well as non-business hours. C. If screen prints are routed to a shared printer in a common area, retrieve screen prints immediately. This is especially important if the printer is located in a hallway through which visitors pass. 160.11 DEPARTMENT OF CORRECTION (DOC) INQUIRY Use the DOC inquiry to check for drug felony convictions or receipt of work release when the household reports an absent parent is in prison. Use DOC to screen for reported drug felony convictions. If the inquiry indicates there is work release income, verify the information through the North Carolina Department of Correction, Work Release Accounting, 2020 Yonkers Rd., Mail Service Center 4220, Raleigh, NC 27699-4220. Document the information in the case file.

160.12 CHILD SUPPORT ENFORCEMENT’S AUTOMATED COLLECTION AND TRACKING SYSTEM (ACTS) NEW HIRE SCREEN Use the ACTS New Hire Inquiry screen to check for possible employment for household members, at each application, reapplication, and full recertification. Information gained

FOOD AND NUTRITION SERVICES MANUAL

GENERAL PROCEDURES & REQUIREMENTS FNS 160 AUTOMATED INQUIRY AND MATCH PROCEDURES

11 Section 160 Change 03-2021 June 1, 2021 through the ACTS New Hire inquiry or through NC FAST generated tasks is used to discover leads of possible wages and previous work history. Check each reported SSN and use any hits of possible new employment as leads in determining the household’s income. Follow up on all leads by discussing them with the applicant and documenting the response in the application workbook. If a discrepancy between the match and the information provided by the applicant is discovered, obtain verification to determine eligibility. If appropriate, follow procedures in Section 800, Claims, for overissuance and Section 825, IPV Disqualifications, for suspected Intentional Program Violations. Refer to the ACTS on-line manual and NC FAST Help for instructions to access the New Hire Inquiry and tasks.

FOOD AND NUTRITION SERVICES CERTIFICATION GENERAL PROCEDURES AND REQUIREMENTS FNS 165 INACTIVE ELECTRONIC BENEFIT TRANSFER (EBT) ACCOUNTS REPORT

1 Section 165 Change #06-2022 September 24, 2022 FNS 165 Inactive Electronic Benefit Transfer (EBT) Accounts Report Change #06-2022 September 24, 2022

165.00 INACTIVE ELECTRONIC BENEFIT TRANSFER (EBT) ACCOUNTS REPORT eFunds transmits information to the State on all EBT accounts that have not been accessed for 30, 60, or 90 days. This information is accessible through XPTR (Exporter) stores an online version of production reports. The Aged Authorization Detail Report is updated daily and only lists accounts that meet the 30, 60 or 90-day inactivity criteria for that day. The report is not cumulative; therefore, the report must be viewed daily.

165.01 ACTIVE FOOD AND NUTRITION SERVICES CASES (FNS) Take the following actions when an active FNS case appears on the Aged Authorization Detail Report. A. Attempt to contact the FNS unit either verbally (through telephone contact) or through written request (See B. below) to determine the reason the FNS unit is not using the available FNS benefits. B. Send the FNS unit a DSS-8650, Information Needed to Determine Eligibility, to the most recent address shown in the case file when the FNS unit is unable to be contacted by telephone. Request that the FNS unit contact the agency within 10 calendar days regarding their EBT account. 1. Do not take action on the case if the DSS-8650 is returned to the agency because the household has moved to an unknown address. 2. If the DSS-8650 is returned with a new forwarding address that is within North Carolina, send a DSS-8650 to the new address. Request that the FNS unit contact the agency within 10 calendar days to determine if this is the correct address. Also request that the FNS unit contact the agency regarding their EBT account. 3. Do not take action on the case if the FNS unit fails to contact the agency. A case cannot be terminated for failure to use EBT benefits. C. Upon contact with the FNS unit, take the following actions. 1. Notify the FNS unit of the available benefits in their EBT account. 2. Determine the reason the FNS unit has not used the available benefits. a. Assist the FNS unit with additional training regarding the EBT System or refer the FNS unit to customer service at 888-622-7328.

FOOD AND NUTRITION SERVICES CERTIFICATION GENERAL PROCEDURES AND REQUIREMENTS FNS 165 INACTIVE ELECTRONIC BENEFIT TRANSFER (EBT) ACCOUNTS REPORT

2 Section 165 Change #06-2022 September 24, 2022

b. Explain the authorized representative system to the FNS unit and offer the FNS unit assistance in obtaining an authorized representative, if needed. Refer to Section 220, Authorized Representatives. c. If the FNS unit has moved but continues to live in North Carolina update the case file with the new address. Refer to sections 215.05, 450.05 and 550.04 for reacting to the change. d. If the FNS unit has moved out of North Carolina: 1. Terminate the case as residence is out-of-state. 2. The FNS unit may use the North Carolina EBT card in the new state as long as the new state can accept a North Carolina EBT Card.

165.02 INACTIVE FOOD AND NUTRITION SERVICES CASES If the FNS case listed on the Aged Authorization Detail Report is inactive and there is an outstanding claim, the county Program Integrity Unit may choose to contact the FNS unit to determine if the FNS unit wishes to voluntarily apply these benefits to pay on the FNS unit’s claims balance. If the FNS unit agrees to apply part or all of these benefits to the outstanding claim, follow instructions in Sections 810, 815, and 820, Methods of Payment.

165.03 BENEFITS EXPUNGED AFTER NINE (9) CONSECUTIVE MONTHS OF INACTIVITY A. Inactivity: Benefits will remain in the EBT account and available to the FNS household until the EBT account has been inactive for 9 consecutive months (274 days). When a FNS household fails to make any purchases within a 9-month period (274 days) of time they are considered inactive. All benefits will be automatically expunged by NC FAST from the EBT account when the account is inactive for 9 consecutive months (274 days). NC FAST will generate a notice that will be mailed to the FNS household 30 days prior to the expungement to inform them that the benefits will be expunged if the EBT account remains inactive. Once expunged the benefits cannot be restored to the FNS household. However, the FNS household can reactivate the EBT account by making a purchase on the 273rd day. The full benefit amount does not have to be spent all at once to prevent the benefits from being expunged. The days for the remaining benefits to be expunged will start over on day one after a purchase has been made. Note: The expungement is based on the activity of the account, not the date the benefits are received.

FOOD AND NUTRITION SERVICES CERTIFICATION GENERAL PROCEDURES AND REQUIREMENTS FNS 165 INACTIVE ELECTRONIC BENEFIT TRANSFER (EBT) ACCOUNTS REPORT

3 Section 165 Change #06-2022 September 24, 2022 For example: A FNS household has $300 in benefits that were issued on January 1, 2021. The household has not had any activity on the account for 234 days.

1/1/2022 - Benefits available 1/10/2022 - The household spends $20 of the benefits leaving $280. 9/11/2022 - Letter is generated and mailed to inform the FNS household that benefits will be expunged if the EBT account remains inactive on the 274th day (10/11/2022). 9/14/2022 - The FNS household makes a purchase of $20. Because the household makes a purchase, they are no longer considered inactive and the benefits will not be expunged on the 10/11/2022 date. The 274th day count starts over on 10/12/2022. The FNS household has another 274 days to use the remaining $260 in the account.

B. Death: If all members of the FNS unit are deceased, all remaining FNS benefits will be automatically expunged by NC FAST from the EBT account when the FNS case is closed. This automatic expungement will only apply if the entire household is deceased. Once expunged the benefits cannot be restored to the FNS household. Caseworkers will not need to take action.

FOOD AND NUTRITION SERVICES CERTIFICATION GENERAL PROCEDURES & REQUIREMENTS FNS 170 NOTICES

1 Section 170 Change #21-2021 November 15, 2021 FNS 170 NOTICES Change #21-2021 November 15, 2021

170.01 REQUIREMENT TO PROVIDE NOTICE

A. Food and Nutrition Services (FNS) units must receive notification when changes are made to the FNS case that effects their eligibility or benefit amount. There are two types of notifications: 1. Timely Notices are required when any action will negatively (decrease or terminate) impact the FNS unit’s eligibility or benefit amount. 2. Adequate Notices are required when any action positively (increases) impacts or makes no change to the FNS unit’s eligibility or benefit amount. B. FNS caseworkers must review all notices to ensure the information and evidences have been entered into the North Carolina Families Accessing Services through Technology (NC FAST) eligibility system. C. The FNS caseworker is required to issue all notices through the NC FAST automated system, whenever possible. Manual notices may only be used in the following circumstances: 1. The correct notice cannot be generated in NC FAST due to a system error or failure; or 2. The caseworker is instructed by NC FAST to issue a manual notice; or 3. The caseworker is instructed by state policy to issue a manual notice. Note: The caseworker must upload a copy of the manual notice into NC FAST and document the reason for issuing a manual notice in the appropriate NC FAST notes. D. The FNS caseworker must ensure addresses are correct in NC FAST and that all notices are mailed to the last known address of the FNS household.

170.02 TRANSMITTING INFORMATION BETWEEN PUBLIC ASSISTANCE PROGRAMS A. Use the DSS-8194, Income Maintenance Transmittal Form, encrypted email, secure county communication system, or NC FAST communications to transmit information

FOOD AND NUTRITION SERVICES CERTIFICATION GENERAL PROCEDURES & REQUIREMENTS FNS 170 NOTICES

2 Section 170 Change #21-2021 November 15, 2021 between public assistance programs. This includes changes reported by the FNS unit or when the FNS worker is aware of other pertinent facts. B. Document the program, method, date, type, and any verifications that are transmitted to the other public assistance program in appropriate NC FAST notes section. Do not wait until action is taken on the FNS case to route the information to the other program. 170.03 EFFECT OF CHANGE (DSS-8562)

Use the DSS-8562, Effect of Change, to notify the FNS unit when a reportable change results in no change in benefits or to notify a FNS unit of an increase in benefits. A FNS unit has 10 calendar days to request a hearing from the date the notice is sent if the FNS unit wishes to continue benefits at the current rate. 170.04 NOTICE OF ADVERSE ACTION (DSS-8553) Use the DSS-8553, Notice of Adverse Action, to notify the FNS unit of a proposed reduction or termination of benefits within a certification period as a result of a reportable change, including when a change becomes known during the postponed verification period of an expedited case. Exceptions to this requirement are listed in FNS 170.05 Exceptions to Notice of Adverse Action. A. Enter information into NC FAST to allow the system to make a correct eligibility determination. B. Review the decision summary and evidences in NC FAST to ensure eligibility has been determined correctly. C. Issue the DSS-8553, Notice of Adverse Action through the NC FAST system using the timely notice function. NC FAST will calculate the required 10 business day notice period and make the change effective the first month after expiration of the 10 business day notice period. D. If a manual notice is required, the following steps must be completed: 1. Complete the DSS-8553, Notice of Adverse Action, in NC FAST, if available. Mail or give the notice to the FNS unit at least ten working days (exclude weekends and holidays) prior to the effective date of the action. 2. Unless the FNS unit requests a fair hearing and continued benefits, the effective date of the action is the first day of the month following the expiration of the ten working day notice. See Section FNS 705, Fair Hearings. 3. The notice must contain the following information.

FOOD AND NUTRITION SERVICES CERTIFICATION GENERAL PROCEDURES & REQUIREMENTS FNS 170 NOTICES

3 Section 170 Change #21-2021 November 15, 2021 i. A statement of the proposed action; ii. A clear explanation of the reason for the action, including the regulation on which the action is based; iii. The effective date of the action; and iv. The name and telephone number of the person or office to contact for more information or to request a fair hearing. 170.05 EXCEPTIONS TO NOTICE OF ADVERSE ACTION (DSS-8553) Exceptions to DSS-8553, Notice of Adverse Action, does not relieve the caseworker’s responsibility to inform the client using an Adequate notice. Use the DSS-8562, Effect of Change adequate notice for the exceptions to notice of adverse action unless otherwise specified below. Individual DSS-8553, Notices of Adverse Action are not required for the following: A. Mass Changes The FNS section is responsible for the issuance of notices for mass changes. B. Expedited Services with Postponed Verification At certification, NC FAST sends notification to the FNS unit that no benefits will be issued beyond the month of application until postponed verification is received. Act on postponed verification without further notice. Refer to Section FNS 320, Expedited Service. C. Notice of Death Terminate the case when the agency receives notification of the death of all members of a FNS unit. Notification must be from a reliable source, such as contact from friends or relatives of the deceased, other agencies, or an obituary notice. Note: If there is at least one remaining FNS unit member, a DSS-8553 is required to reduce benefits. D. Household Moves from State. Refer to Manual Sections FNS 450 Simplified Reporting Changes During the Certification Period, FNS 550 Transitional Food and Nutrition Services Benefits, or FNS 600 Simplified Nutritional Assistance Program to determine if the change must be reacted to. If the change must be reacted to refer to FNS 170.07 Confirmation of Voluntary Termination of Benefits (DSS-8632).

FOOD AND NUTRITION SERVICES CERTIFICATION GENERAL PROCEDURES & REQUIREMENTS FNS 170 NOTICES

4 Section 170 Change #21-2021 November 15, 2021 E. Disqualified Household Member (Intentional Program Violation [IPV]) Reduce or terminate benefits when a FNS unit member is disqualified for an IPV in accordance with sections FNS 705 Hearings, FNS 800 Claims, or the benefits of the remaining FNS unit members are reduced or terminated to reflect the disqualification of that FNS unit member. F. Variable Allotment When the FNS unit's allotment varies from month-to-month within the certification period due to changes that were anticipated at the time of certification, notify the FNS unit at the time of certification. Send a manual DSS-8551 Notice of Eligibility regarding the variable allotment. G. Joint Application Change benefits when the household jointly applied for Work First Family Assistance (WFFA) and FNS benefits and has been receiving FNS benefits pending the approval of the WFFA benefit. The household was notified at the time of certification that FNS benefits would be reduced upon approval of the WFFA. If the FNS unit did not jointly apply for WFFA and FNS, a DSS-8553, Notice of Adverse Action is required. H. Conversion to Allotment Reduction Once a claim is established, NC FAST sends the DSS-8554, Notice of Overissuance, containing the DSS-8553, Notice of Adverse Action’s requirement for the client to request an appeal. If an allotment reduction is invoked following the expiration of the ten workdays provided in this notice, no further DSS-8553, Notice of Adverse Action, is required. I. Loss of Certification/Disqualification of Treatment Center Terminate benefits of residents of a drug or alcoholic treatment center or a group living arrangement if the facility either loses its certification from the appropriate agency or has its status as an authorized representative suspended due to being disqualified as a retailer by FNS. However, residents of group living arrangements may apply on their own behalf and be eligible to participate. J. Voluntary Request for Termination or Reductions of Benefits When a household requests, in writing or verbally, that its benefits be reduced or terminated, refer to FNS 170.07 Confirmation of Voluntary Termination of Benefits (DSS- 8632). K. Last Month of Certification Period

FOOD AND NUTRITION SERVICES CERTIFICATION GENERAL PROCEDURES & REQUIREMENTS FNS 170 NOTICES

5 Section 170 Change #21-2021 November 15, 2021 When a change is reported or becomes known in the last month of the certification period, the change will be made during the recertification process. L. Month prior to the last month of the certification When the change cannot be made in time to affect benefits for the last month of the certification period. 170.06 CANCELING OR VOIDING THE NOTICE OF ADVERSE ACTION (DSS-8553) Void DSS-8553, Notices of Adverse Action only when: A. Benefits are being reduced or terminated due to failure to comply with a work requirement and the non-compliance is cured prior to the sanction being invoked. (Once the sanction is imposed, it cannot be stopped.) EXAMPLE: A Notice of Adverse Action is issued on January 5 to decrease benefits effective January 31. The FNS unit cures the sanction on January 28. The notice is voided. B. The FNS unit requests a hearing with continued benefits. If the FNS unit wins the appeal, the notice is voided by the appeal decision. If county action is affirmed, the adverse action is only delayed. C. The notice was issued in error. D. A case is sent to Transitional Food and Nutrition Services Benefits. E. The household provides sufficient information to determine eligibility and/or benefit level, prior to the effective date of the DSS-8553, Notice of Adverse Action. Act on new circumstances in accordance with sections FNS 450.06 Situations when Benefits Cannot be Increased, and FNS 550.04 Change During the Transitional Food and Nutrition Services Benefit Period. If necessary, adjust the households' participation with a new DSS-8553, Notice of Adverse Action. 170.07 CONFIRMATION OF VOLUNTARY TERMINATION OF BENEFITS (DSS-8632) Use the DSS-8632, Confirmation of Voluntary Termination of Benefits, to notify a FNS unit of a proposed reduction or termination of benefits within a certification period when a Notice of Adverse Action is not required. A. Move from the State When the FNS caseworker receives notification that the FNS unit has moved from the state, send a DSS-8632, Notice of Termination no later than the next scheduled issuance

FOOD AND NUTRITION SERVICES CERTIFICATION GENERAL PROCEDURES & REQUIREMENTS FNS 170 NOTICES

6 Section 170 Change #21-2021 November 15, 2021 date. If the new address is unknown, send the notice to the last known address with a request to “please forward” on the outside of the envelope. NOTE: Refer to Manual Sections FNS 450 Simplified Reporting Changes During the Certification Period, FNS 550 Transitional Food and Nutrition Services Benefits, or FNS 600 Simplified Nutritional Assistance Program (SNAP) to determine if the change must be reacted to. B. Voluntary Request for Termination or Reduction When the FNS unit requests, in writing or verbally to reduce or terminate its benefits, send a DSS-8632, Notice of Termination. Written request does not include the same rights as a DSS-8553, Notice of Adverse Action except that the FNS unit may request a fair hearing. 170.08 CHANGE REPORT FORM (DSS-8550) Give or mail a FNS unit subject to Simplified Reporting requirements a DSS-8550, Change Report, at the time of interview, recertification, and anytime that a completed DSS-8550 is received by the agency. 170.09 FOOD AND NUTRITION SERVICES (FNS) NOTICE OF INFORMATION NEEDED (DSS-8650) The DSS-8650, FNS Notice of Information Needed is used to request required information, deductions, and schedule interviews. Whenever possible, the automated DSS-8650 in NC FAST should be used. If a manual DSS-8650 is required complete lines 1-5 and 10–15 on all requests. In addition, complete the appropriate sections based on the type of information needed as outlined below: A. Required information: • Complete lines 6, 7. B. Deductions: • Complete lines 6, 8, 9. C. Interview Appointments: • Complete line 7. Note: The caseworker must upload a copy of the manual notice into NC FAST and document the reason for issuing a manual notice in the appropriate NC FAST notes.

FOOD AND NUTRITION SERVICES CERTIFICATION GENERAL PROCEDURES & REQUIREMENTS FNS 170 NOTICES

7 Section 170 Change #21-2021 November 15, 2021 170.10 DSS-8650A DOCUMENTS NEEDED TO COMPLETE YOUR APPLICATION The DSS-8560A Documents Needed to Complete Your Applications must be provided to all applicant households. The form provides the household with the following information: • Description of the type of verifications required to process the FNS application. • Examples of the types of documents that can be used to verify information. • Time period that verifications should cover. • How the applicant can provide the verifications. • What will happen to the application if verifications are not provided. • How to receive help to obtain verifications. 170.11 DSS-8551 FNS NOTICE OF ELIGIBILITY, DENIAL, OR PENDING STATUS FNS households must be notified in writing of all approvals, denials, and pending status using the DSS-8551 FNS Notice of Eligibility, Denial, or Pending Status. All evidences in NC FAST must be updated to ensure the DSS-8551 is mailed to the most current address on file and includes sufficient information to correctly inform the FNS household of the eligibility decision. A. All eligible households must be informed of: 1. The amount and start date of benefits; and 2. The certification period; and 3. Right to request a fair hearing; and 4. Correct contact information for the agency and caseworker. B. All ineligible households must be informed of: 1. The correct denial reason; and 2. Their right to request a fair hearing; and 3. Correct contact information for the agency and caseworker.

FOOD AND NUTRITION SERVICES CERTIFICATION

ELIGIBILITY REQUIREMENTS

FNS 175 AUTHORIZED REPRESENTATIVE

1 Section 175 Change #02-2021 June 1, 2021 FNS 175 Authorized Representative Change #02-2021 June 1, 2021

175.01 AUTHORIZED REPRESENTATIVE REQUIREMENTS An authorized representative is an individual designated by the Food and Nutrition Services (FNS) unit to apply for benefits, use FNS benefits to purchase food for the FNS unit, or both apply and use FNS benefits on behalf of the FNS unit. The following conditions apply to Authorized Representatives: A. Authorized Representatives designated to apply for or apply for and use FNS benefits: 1. The authorized representative designated by the household to apply for FNS benefits for the household must be an adult who is not included in the FNS unit. 2. A person who is currently disqualified for an Intentional Program Violation can not make application or be responsible for reporting changes. If allowed to be an authorized representative in this capacity, the decision must be based on a determination that there is no other suitable applicant/recipient to represent the FNS. The county director must approve in writing on the DSS-1688 that this individual can represent the FNS to make application and to be responsible for reporting changes. Document the situation in the case file. 3. A retailer who is authorized to accept FNS benefits cannot be an authorized representative unless approved in writing by the county Department of Social Services (DSS) director on the DSS-1688. If allowed to be an authorized representative, the decision must be based on a determination that no other suitable authorized representative is available for the FNS unit. Document the situation in the case file. 4. An agency employee who is involved in the FNS certification and/or issuance process cannot be an authorized representative unless approved in writing by the county Department of Social Services (DSS) director on the DSS-1688. If allowed to be an authorized representative, the decision must be based on a determination that no other suitable authorized representative is available for the FNS unit. Document the situation in the case file. B. Authorized Representatives designated to use FNS benefits only to purchase food for the FNS: 1. Another adult household member (such as the spouse) can be an authorized representative for using FNS benefits. 2. An individual who is currently disqualified for an Intentional Program Violation can be an authorized representative for using FNS benefits without director approval.

FOOD AND NUTRITION SERVICES CERTIFICATION

ELIGIBILITY REQUIREMENTS

FNS 175 AUTHORIZED REPRESENTATIVE

2 Section 175 Change #02-2021 June 1, 2021 175.02 AUTHORIZED REPRESENTATIVE RESPONSIBILITIES Explain to the authorized representative applying on behalf of the FNS unit that: A. They are certifying that the information provided is true and complete; and B. They are responsible for reporting changes in the FNS unit’s circumstances when the FNS unit is unable to report the change. Advise the authorized representative that upon approval of FNS benefits, a Change Report Form, DSS-8550, will be mailed to the household. This form can be used to report changes to the agency; and C. The household and authorized representative are equally responsible for any erroneous issuance as a result of incorrect or incomplete information provided by the authorized representative, except when benefits are trafficked or misused by the authorized representative without the FNS unit’s knowledge. The authorized representative is responsible for an erroneous issuance while acting as the representative for an alcoholic/drug treatment center, or when found guilty of trafficking EBT benefits. NOTE: An authorized representative with only the authority to purchase food for the FNS unit does not have the responsibilities listed in this section. 175.03 AUTHORIZED REPRESENTATIVE RESTRICTIONS A. The FNS unit can have no more than two active authorized representatives for the case. B. An authorized representative may represent more than one FNS unit at the same time. C. Any FNS unit that resides in an Alcohol and Drug Treatment Center (ADTC) may only have one authorized representative. 175.04 DSS-1688 DESIGNATION OF AUTHORIZED REPRESENTATIVE FORM Complete the DSS-1688, Designation of Authorized Representative by checking all appropriate boxes and obtaining signatures at application, full recertification, and when the FNS unit changes its authorized representative. Distribute a copy to the FNS unit and the authorized representative upon request. Save original DSS-1688, Designation of Authorized Representative in North Carolina Families Accessing Services through Technology (NC FAST) and record on the evidence dashboard in NC FAST. A. The head of household's signature is required on the DSS-1688 when: 1. The FNS unit designates an authorized representative who does not have Power of Attorney. 2. The Power of Attorney authorization is limited to a specific purpose that does not include applying for and/or using FNS benefits. 3. The Power of Attorney authorization is time-limited and will expire within 30 days.

FOOD AND NUTRITION SERVICES CERTIFICATION

ELIGIBILITY REQUIREMENTS

FNS 175 AUTHORIZED REPRESENTATIVE

3 Section 175 Change #02-2021 June 1, 2021 B. The head of household's signature is not required on the DSS-1688 when: 1. The authorized representative is a person employed by and designated to act on behalf of residents of an ADTC or a group home. Document this designation on the application form. 2. The authorized representative has full Power of Attorney for the FNS unit. File a copy of the Power of Attorney document in the case file and document the application form. 3. The authorized representative has legal guardianship of a disabled person who is not capable of signing the DSS-1688. Use prudent judgment to determine if an authorized representative is appropriate. Document the case file and include legal guardianship documentation. 4. The head of household of a Simplified Reporting case is deceased and the remaining household members are minors. 5. Due to Simplified Reporting requirements, there may be other situations in which the HOH is not available to sign the DSS-1688. Use prudent judgment to determine if an authorized representative is appropriate. C. Do not complete the DSS-1688 for FNS unit members designated as authorized representative to use the benefits.

175.05 REMOVING AN AUTHORIZED REPRESENTATIVE If you have evidence that an authorized representative provided false information, misrepresented the FNS unit’s circumstances, or improperly used FNS benefits, prohibit the authorized representative from serving as a representative for any household for one calendar year. A. Document the situation in the case file or on the application form. B. Notify the FNS unit and the authorized representative in writing 30 calendar days prior to the date of removal. Include the proposed action, the reason, the FNS unit’s right to a fair hearing, and the name and telephone number of the person to contact for additional information. NOTE: Representatives designated to act on behalf of residents of an ADTC or group home are exempt from this provision. 175.06 STATUS OF AUTHORIZED REPRESENTATIVE IF FOOD AND NUTRITION SERVICES CASE CLOSES Evaluate the need of deactivating an authorized representative’s EBT card when a Food and Nutrition Services case terminates. NC FAST does not automatically deactivate the authorized representative. Use the evidence dashboard in NC FAST to reactivate an authorized representative when necessary.

FOOD AND NUTRITION SERVICES MANUAL ELIGIBILITY REQUIREMENTS FNS 200 ELIGIBILITY REQUIREMENTS OVERVIEW

1 FNS 200 Change #6-2021 July 12, 2021 FNS 200 ELIGIBILITY REQUIREMENTS OVERVIEW Change #6-2021 July 12, 2021

200.01

ELIGIBILITY REQUIREMENTS A. Eligibility for the Food and Nutrition Services Program (FNS) is based on certain non-financial and financial requirements. Each applicant household and recipient of FNS benefits must meet the requirements. The following mandatory requirements are discussed in the appropriate sections. 1. FNS 205 Identity 2. FNS 210 Household Composition 3. FNS 212 Household Composition Special Arrangements 4. FNS 215 Residency 5. FNS 220 Categorical Eligibility 6. FNS 225 Citizenship 7. FNS 227 Non-citizen Requirements 8. FNS 230 Social Security Enumeration 9. FNS 235 Student of Higher Education 10. FNS 240 Work Registration Requirements 11. FNS 250 Resources 12. Integrated Eligibility Manual - Income 13. FNS 135 Second Party Review and Quality Control 14. FNS 270 Controlled Substance Felons B. Verification requirements and types are discussed within the specific section for each eligibility requirement. C. Documentation is critical when determining eligibility and benefit levels for the FNS Program. Clear and concise documentation is needed in order to ensure accuracy. All documentation should be entered into North Carolina Families Accessing Services through Technology (NC FAST).

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 205 IDENTITY

1 Section 205 Change #6-2021 July 12, 2021 FNS 205 IDENTITY Change #6-2021 July 12, 2021

205.01

IDENTITY REQUIREMENT A. At each application or at any point an individual’s identity is found questionable, verify the identity of the following individuals: 1. The identity of the person filing the application, this does not have to be the Head of Household. 2. An authorized representative that applies on behalf of a Food and Nutrition Services (FNS) unit. In this situation the identity of both the authorized representative and the head of the FNS unit must be verified. Verify the identity of any new or changed authorized representative that applies on behalf of a FNS unit at a change or recertification. 3. Do not require verification of identity for any individuals other than those listed in 1 and 2 above. 205.02

VERIFICATION A. Accept any document that reasonably establishes the applicant's identity. Examples of acceptable verifications include but are not limited to: • Driver's license • Work or school ID • ID for health benefits • Voter registration card • Wage stubs • Birth certificate • Citizenship requirement • Verification of receipt of other social services programs such as but not limited to Medicaid and Work First Family Assistance. There is no timeframe to the receipt of the other programs as long as receipt of the other program can reasonably verify their identity.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 205 IDENTITY

2 Section 205 Change #6-2021 July 12, 2021 B. Request missing verification using the DSS-8650 FNS Notice of Information Needed. Do not request a specific type of document to verify identity, such as a driver’s license, accept any verification that reasonably verifies identity. C. If documentary evidence is not available, use a collateral contact. 205.03

DOCUMENTATION A. Scan the verification document into North Carolina Families Accessing Services through Technology (NC FAST) at the Person level using the appropriate taxonomy as outlined in NC FAST help. B. Once scanned into NC FAST the individual does not need to provide Identification at subsequent applications. The information stored in NC FAST can be used to verify identity.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 210 HOUSEHOLD COMPOSITION

1 Section 210 Change #20-2021 November 1, 2021 FNS 210 HOUSEHOLD COMPOSITION Change #20-2021 November 01, 2021

210.01 HOUSEHOLD COMPOSITION REQUIREMENT All individuals who eat together must be included in the same Food and Nutrition Services (FNS) unit. At application, recertifications, and reported change in household composition, determine the total number of people who live in a residence, their relationship to each other, and their ages. Ask about the arrangements for purchasing and preparing meals. Based on the household’s arrangements determine if the individuals are: A. Required household members: These members must be included together in the same FNS unit. B. Separate household members: These members may choose to be included in the same FNS unit or may choose to be in a separate FNS unit based on circumstances. C. Excluded household members: These members are not allowed to be included in any FNS unit. 210.02 DEFINITION OF AN FNS UNIT An FNS unit can be any of the following: A. A person living alone; or B. A group of people living together who purchase and prepare meals together regardless of relationship to each other; or C. A person or group of people who state they will purchase and prepare meals separate from the others with whom they live upon receipt of Food and Nutrition Services benefits; or D. In certain situations, a person or group of people living with others but who purchase food and prepare meals separate and apart from those others; or E. A homeless person or group of homeless people who purchase food; or F. Certain residents of group homes, shelters, and institutions. 210.03 REQUIRED HOUSEHOLD MEMBERS The following Individuals must be included in the same FNS unit:

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 210 HOUSEHOLD COMPOSITION

2 Section 210 Change #20-2021 November 1, 2021 A. Individuals who live together and purchase and prepare their food together, regardless of the relationship to each other; B. Spouses living together regardless of whether they purchase and prepare their food together. 1. Spouse refers to individuals who are currently married to each other under applicable State law. 2. Divorced individuals are no longer considered spouses and are not required household members unless they meet a different requirement within this section. 3. Unmarried couples who live together and do not have common children are not required to be included in the same FNS unit. North Carolina does not recognize common law marriage. If an unmarried couple moves from a state that recognizes common law marriage, then a couple married under the common law of that state must be treated as having a legitimate marriage in North Carolina. C. A child 21 years of age and under living with his/her natural, adoptive, stepparents unless the conditions in 210.04 G. are met. 1. Children must be included in the FNS unit with their natural or adoptive parent(s) even if another household member has legal custody. 2. If the household consists of a natural parent and an adoptive parent, the child must be included in the FNS unit with the adult who exercises parental control. D. A child (other than a foster child) 17 years of age and younger who lives with and is under the parental control of a household member other than his/her parent. NOTE: For purposes of this provision, parental control exists if a child, age 17 or younger, is financially or otherwise dependent on a member of the household. 210.04 SEPARATE HOUSEHOLD MEMBERS Individuals that are not required or excluded FNS household members may be a separate FNS unit from other household members if they state they purchase and prepare food separately from others in the home or will do so upon receipt of FNS benefits. Separate household members include:

A. An adult child age 22 and over living with his/her natural, adoptive, or stepparent.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 210 HOUSEHOLD COMPOSITION

3 Section 210 Change #20-2021 November 1, 2021 B. An individual age 18 and over living with anyone other than his/her natural, adoptive, or stepparent. C. An individual age 17 and under who is living with anyone other than a natural, adoptive, or stepparent as long as he/she is not under the parental control of an adult FNS unit member. D. Natural, adoptive, half, or stepsiblings under 18 who live together if one is a parent living with his child(ren) or neither exerts parental control over the other (Once 18, parental control is not an issue.). E. Two adults who are not married to each other and live together. F. A specified person who is not a child under age 22 whose food is purchased and prepared separately by another household member. See 212.02 for the definition of a specified person. G. An individual age 60 or older and his spouse may be a separate FNS unit if the individual and spouse share meals with others because they are unable to purchase and prepare their own meals because of a disability defined in FNS 212.02 Specified Person. These individuals cannot choose to prepare their own meals separately, they must be unable to prepare their own meals because of the disability. • These are the only parents who may choose to be a separate FNS unit from their child(ren) under age 22. • If unable to purchase and prepare their own meals due to the disability, they must also meet the following conditions: o The gross income of the other household members cannot exceed 165% of the poverty level. o Exclude the income of the elderly individual and his spouse to make this income determination. H. Boarders Individuals living with others and paying reasonable compensation to the others for lodging and meals (excluding residents of a commercial boarding house) are boarders. Boarders are not eligible to participate in the program separate from the household providing the board. They may participate as members of the FNS unit which provides the boarder services to them upon request by the FNS unit.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 210 HOUSEHOLD COMPOSITION

4 Section 210 Change #20-2021 November 1, 2021 a. The household within which a boarder resides (including the household of the proprietor of a commercial boarding house) may participate in the program if the household meets all the eligibility requirements for program participation. b. Residents of commercial boarding houses are ineligible to participate. A commercial boarding house is defined as an establishment licensed as an enterprise which offers meals and lodging for compensation. In areas without licensing requirements, a commercial establishment which offers meals and lodging for compensation with the intent of making a profit will be considered a commercial boarding house. The number of boarders residing in a boarding house is not a criterion for determining if a boarding house is a commercial enterprise. c. Do not consider the following as boarders: i. The spouse of an FNS unit member; or ii. A child under age 18 who is under the parental control of an FNS unit member; or iii. Parents living with their natural, adoptive, or stepchildren under age 22 who are FNS unit members or such children living with their parents; or iv. A sibling of an FNS unit member when the sibling is under age 18 and the adult FNS unit member exerts parental control over the sibling; or v. Individuals paying less than a reasonable monthly payment for meals. Individuals who pay less than reasonable compensation must be considered part of the FNS unit providing the service. • To determine if an individual is paying reasonable compensation, count only the amount paid for meals provided that the amount is distinguishable from the amount paid for lodging. Reasonable monthly payment may be either of the following. • If the board arrangement is for more than two meals per day, the boarder must pay an amount that equals or exceeds the maximum Food and Nutrition Services allotment for the size of the boarder household, or • If the board arrangement is for two meals or less per day, the boarder must pay an amount that equals or exceeds two-thirds of the maximum Food and Nutrition Services allotment for the size of the boarder household.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 210 HOUSEHOLD COMPOSITION

5 Section 210 Change #20-2021 November 1, 2021 EXAMPLE: Mrs. Jackson applies for Food and Nutrition Services and states that Mr. Jones is a boarder who pays her $10 each week for three meals per day. Since his monthly payment of $43 ($10 x 4.3) does not equal or exceed the maximum allotment for one person, Mr. Jones must be included in Mrs. Jackson's FNS unit. EXAMPLE: Mrs. Johnson applies for Food and Nutrition Services and states that Mr. Smith and his two children are boarders who pay $400 per month for three meals per day. Since his monthly payment exceeds the maximum allotment for three persons, Mr. Smith and his children are boarders. Mrs. Johnson may choose, but is not required, to include them in her FNS unit. I. Foster Care Individuals Individuals placed in the home of relatives or others by a federal, State, or local governmental foster care program are not eligible to participate in the program as a separate FNS unit from the household providing their care. However, they may be included in the FNS unit at its request. If the FNS unit chooses this option, count foster care payments received as unearned income to the FNS unit. J. Individuals Receiving Guardianship Payments Individuals placed in the home of relatives or others who receive Title IV-E Guardianship Payments are not eligible to participate in the program as a separate FNS unit from the household providing their care. However, they may be included in the FNS unit at its request. If the FNS unit chooses this option, count guardianship payments received as unearned income to the FNS unit. K. Live-In Attendant A live-in attendant is a person who resides in a household solely to provide medical, housekeeping, childcare, or similar personal services and is not a part of the required FNS unit. The household has the option of including the attendant in its FNS unit or the attendant may participate as a separate FNS unit, if otherwise eligible. 210.05 EXCLUDED HOUSEHOLD MEMBERS The following individuals cannot be included in the FNS unit: A. Ineligible Able-Bodied Adult without Dependents (ABAWDs) Able-bodied adults from the ages of 18 (beginning the month after the 18th birthday) through age 49 (the month before the 50th birthday, as ABAWD no longer

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 210 HOUSEHOLD COMPOSITION

6 Section 210 Change #20-2021 November 1, 2021 applies) without dependents may be ineligible to participate in the program unless they meet the ABAWD requirements. Document the case file in North Carolina Families Accessing Services through Technology (NC FAST). B. Ineligible Non-citizen Individuals who do not meet the citizenship or non-citizen status requirements as defined in FNS 225 Citizenship and FNS 227 Non-citizen Requirements, are ineligible to participate in the program. Document the case file in NC FAST. C. Ineligible as a Fleeing Felon or Probation/Parole Violator Applicants are required at application and recertification to sign a statement declaring whether any member of the FNS unit is a fleeing felon or a probation/parole violator. This includes SSI recipients. Use the Department of Corrections (DOC) website at www.doc.state.nc.us/offenders/ as a lead to confirm an individual’s status. Document the case file in NC FAST. 1. Fleeing felons are individuals who are acting with the intent to avoid prosecution, or custody for a crime, or an attempt to commit a crime, that would be classified as a felony (or in the State of New Jersey, a high misdemeanor) or who are violating a condition of probation or parole under a Federal or State law shall not be considered eligible household members. 2. Before an individual is determined to be a “fleeing” felon, the following criteria must be met: a. There must be a felony warrant for the individual. b. Individual must be aware of or should reasonably be able to expect that a warrant has or would have been issued. c. The individual has to have taken some action to avoid being arrested or jailed. d. Law enforcement agency must be actively seeking the individual. Actively seeking is defined, a law enforcement agency is actively seeking an individual when it informs the State agency it intends to enforce an outstanding felony warrant or arrest an individual for probation or parole violation. If the county determines during the application processing time period that an individual has a warrant out for arrest, verify with the individual whether

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 210 HOUSEHOLD COMPOSITION

7 Section 210 Change #20-2021 November 1, 2021 they have knowledge of the warrant. Counties should give the individual an opportunity to submit documentation that the warrant has been satisfied. Give the FNS Unit the DSS-8650 Notice of Information Needed to Complete Your Food Assistance to request information. Give the FNS unit at least ten calendar days to provide the verification. 3. An individual can only be considered to have violated probation or parole when a judge rules that a violation has occurred. Obtain verification from the local law enforcement or Clerk of Court to determine if the violation has been cured. D. Ineligible Students Persons from the age of 18 through 49 who are enrolled in an institution of higher education and fail to meet the eligibility criteria in FNS 235 Student of Higher Education are ineligible to participate in the program. Document the case file in NC FAST. E. Disqualified for Enumeration Persons who fail or refuse to provide or apply for a social security number as defined in FNS 235 Social Security Enumeration are disqualified from participating in the program. Document the case file in NC FAST. F. Disqualified for a Controlled Substance Felony Conviction Applicants are required at application and recertification to sign a statement declaring whether any FNS unit member who committed and was convicted of a drug-related felony committed on or after August 23, 1996. Individuals convicted of a felony involving possession, use, or distribution of a controlled substance after this date are permanently disqualified from the program. This includes SSI recipients. Refer to FNS 270 Controlled Substance Felons for requirements and exceptions. Document the case file in NC FAST. G. Disqualified for Fraudulently Misrepresenting Identity and Residence A recipient who fraudulently misrepresents his/her identity or residence in order to receive multiple Food and Nutrition Services benefits is disqualified for ten years. Complete an inquiry into the disqualification menu in NC FAST and document the case file. H. Disqualified for Intentional Program Violation (IPV) A person disqualified for an IPV is not eligible to participate in the program for the period of their disqualification. Document the case file in NC FAST.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 210 HOUSEHOLD COMPOSITION

8 Section 210 Change #20-2021 November 1, 2021 I. Disqualified for Transferring a Resource An individual who transfers a resource for the purpose of becoming eligible for Food and Nutrition Services benefits may make the entire FNS unit ineligible to participate in the program for a period of time determined by the value of the transferred resource. See FNS 250 Resources. Document the case file in NC FAST. J. Disqualified for Voluntary Quit or Other Work-Related Reasons An individual may be disqualified if he/she voluntarily quits a job without good cause, voluntarily and without good cause reduces his work effort to less than 30 hours per week or refuses without good cause to provide sufficient information to allow a determination of employment status or job availability. The individual may be ineligible to participate in the program for a period of time as defined in FNS 240 Work Registration. Document the case file in NC FAST. K. Disqualified for Work Registration/Workfare An individual disqualified for failing or refusing to comply with Employment and Training or Workfare requirements is ineligible to participate in the program for a period of time as defined in FNS 240 Work Registration Requirements. Document the case file in NC FAST. L. Roomers A roomer is an individual who pays for lodging but not for meals. Individuals who must be members of the FNS unit as stated in 210.03 cannot be roomers. Roomers are not eligible to be members of the FNS unit. Document the roomers in the application workbook. A roomer is eligible to apply as a separate FNS unit. M. Food Distribution Program on Indian Reservations (FDPIR) recipients FDPIR provides commodity foods to low-income households living on Indian reservations and to American Indian households residing in approved areas near reservations or in Oklahoma. Many households participate in the FDPIR as an alternative to the Food and Nutrition Services program. FDPIR is administered locally by either Indian Tribal Organizations (ITOs) or an agency of a State government. Households may not participate in FDPIR and the Food and Nutrition Services program in the same month. N. Lottery/Gambling Disqualified FNS Units

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 210 HOUSEHOLD COMPOSITION

9 Section 210 Change #20-2021 November 1, 2021 FNS unit members that receive $3,750 in lottery/gambling winnings are ineligible to participate in the FNS program until they have regained eligibility by meeting the non-categorical eligibility financial resources and income eligibility requirements. O. Aggravated sexual abuse, Murder, and Sexual assault Violators 1. Individuals shall not be eligible for FNS benefits if they meet both a and b below: a. If the individual is convicted of at least one of the following offenses on or after February 8, 2014: • Aggravated sexual abuse under section 2241 of title 18, United States Code; or • Murder under section 1111 of title 18, United States Code; or • A Federal or State offense involving sexual assault as defined in section 40002(a) of the Violence Against Women Act of 1994 (42 U.S.C. 13925(a)); or • An offense under State law determined by the Attorney General to be substantially similar to an offense described in 1, 2, or 3. And b. The individual is not in compliance with the terms of the conviction (such as probation or parole) of the individual. A conviction alone does not make the individual ineligible. In addition to the conviction the individual must be out of compliance with the terms of the sentence. Individuals that state they are not incompliance with the terms of the sentence, or the caseworker has verification that the individual is not in compliance with the terms of the sentence must be disqualified from participation in the FNS program. Example: An individual that was convicted for aggravated sexual abuse under section 2241 of title 18 was incarcerated and subsequently released without parole. This person is considered in compliance and is not disqualified. Example: An individual that was convicted for murder under section 1111 of title 18 and was incarcerated and subsequently released with parole. This person is considered in compliance as long as they state that they are meeting the conditions of parole. If the

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 210 HOUSEHOLD COMPOSITION

10 Section 210 Change #20-2021 November 1, 2021 individual states that they are not meeting the conditions of parole, they will be disqualified for participation in the FNS program. 2. Client’s statement is acceptable verification that they are in compliance with the terms of the sentence of the individuals. Do not require additional verification unless the client’s statement is questionable. If the caseworker determines the client’s statement is questionable, the caseworker must clearly document the case notes stating the reason the statement is considered questionable and what steps have been taken to verify the information. 3. Individuals that have been disqualified may regain eligibility at any time by proving they are in compliance with the terms of the sentence. Accept any reasonable verification to prove compliance with the terms of the sentence. Terminated households must reapply to be determined eligible for FNS benefits. For active households refer to FNS 515 SR Changes During the Certification Period for policy relating to reacting to changes. 210.06 VERIFICATION OF HOUSEHOLD SIZE AND COMPOSITION Accept the FNS unit’s statement as verification of household size and composition. Request that the FNS unit provide additional verification of household size and composition only if questionable. This policy applies to applications, recertifications and changes. Household size and composition are considered questionable when the household composition is inconsistent with statements made by the applicant or with other information in agency case files. Document case files in NC FAST with the reason a household’s composition is considered questionable. A. Give the FNS unit a DSS-8650 Notice of Information Needed to Complete Your Food and Nutrition Services Application. B. Allow at least ten calendar days for the FNS unit to provide verification. C. Acceptable collateral contacts include landlords, neighbors, or other persons, preferably non-related, with knowledge of the FNS unit’s circumstances. Documentary evidence such as agency records and/or school records may be used as written confirmation of an FNS unit’s circumstances. D. If needed, offer assistance to the FNS unit in obtaining verification. E. Resolve any discrepancies prior to certifying the case.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 210 HOUSEHOLD COMPOSITION

11 Section 210 Change #20-2021 November 1, 2021 210.07 VERIFICATION AND DOCUMENTATION OF SEPARATE HOUSEHOLD STATUS Explore separate household status for the purpose of receiving Food and Nutrition Services (FNS) benefits at application, recertification, and when a change in household size and composition becomes known. List the names of individuals in the home who purchase food and prepare meals separately or those who will do so upon receipt of FNS benefits. Accept the applicant's signed statement on the DSS-8207 Application for Food and Nutrition Services, DSS2435I/R Food and Nutrition Services (FNS) Notice of Expiration Recertification Form, and NC FAST application as verification of separate household status. A signed statement from the other household is not required. 210.08 DOCUMENTATION OF HOUSEHOLD SIZE AND COMPOSITION Document the verification source in North Carolina Families Accessing Services through Technology (NC FAST). Scan any supporting documents in NC FAST using the appropriate taxonomy as outlined in NC FAST help. Upon receipt of the requested verification, document the case file in NC FAST including: A. The source; B. The method of verification; C. The date verification is received; and D. The details of how any discrepancies were resolved.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 212 HOUSEHOLD COMPOSITION SPECIAL ARRANGEMENTS

Section 212 Change #3-2026 September 1, 2026 Change #3-2026 September 1, 2026

FNS 212 HOUSEHOLD COMPOSITION SPECIAL ARRANGEMENTS 212.01 HEAD OF THE FNS UNIT A. The FNS unit must designate an individual to be the head of the FNS unit. The person chosen as the head of the FNS unit must: 1. Have primary responsibility for the health and well-being of the FNS unit members; and/or 2. Have responsibility for the financial obligations of the FNS unit; and/or 3. Be otherwise exercising control over the FNS unit B. Change of Head of Household: 1. The designation as head of the FNS unit may be changed at application, recertification, or removal of the current head of the FNS unit. 2. Keep in mind that the household’s EBT card will be issued to the head of household. 3. The individual who will purchase groceries and handle daily business transactions would be an appropriate head of household. C. Do not use the head of the FNS unit designation to impose special requirements, such as requiring the head of the FNS unit to make application, recertification, or request changes. Unless otherwise stated in policy, all adult household members may complete application, recertification, or request changes. 212.02 SPECIFIED PERSON An individual meeting one of the following criteria is considered a specified person: A. An individual 60 years of age or older; or B. A person who receives supplemental security income benefits under Title XVI of the Social Security Act or disability or blindness payments under Titles I, II, X, XIV, or XVI of the Social Security Act; or C. A person who receives federally or State administered supplemental benefits under Section 1616(a) of the Social Security Act provided that the eligibility to receive the benefits is based upon the disability or blindness criteria used under Title XVI of the Social Security Act; or

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 212 HOUSEHOLD COMPOSITION SPECIAL ARRANGEMENTS

2 Section 212 Change #3-2026 September 1, 2026 D. Receives disability benefits from a governmental agency based on permanent Social Security disability requirements; or E. Is a Veteran who receives 100% Veterans Administration (VA) disability payments (service or non-service connected) or is rated as 100% disabled but receives less than 100% disability payment; or F. Is a Veteran considered by the VA to be in need of regular aid and attendance or permanently housebound under Title 38 of the U. S. Code; or G. Is a disabled surviving spouse or disabled surviving child of a veteran and in need of regular aid and attendance or permanently housebound or considered by the VA to be entitled to compensation for a service-connected death or pension benefits for a nonservice-connected death under Title 38 of the U. S. Code; or H. Receiving Railroad Retirement and determined to be eligible for Medicare; or I. Receiving Interim Assistance Payments (DSS General Assistance to applicants for SSI that is repaid by SSA upon approval of the SSI application); or J. Receiving Medicaid based on disability; or K. Benefits under the Federal Employees Compensation Act (FECA) based on Social Security disability requirements. 212.03 INDIVIDUALS RESIDING IN A SPECIAL ARRANGEMENT A. Institutionalized Individuals are considered residents of an institution when the institution provides them with the majority of their meals (over 50% of three meals daily) as part of the institution's normal services. Students of higher education that are required to purchase meal plans as part of normal school policy are not considered institutionalized. Institutionalized individuals are not eligible to participate except as specified in B - F below. B. Group Home/Group Living Arrangement (GLA) A GLA is a public or private non-profit residential setting that serves no more than 16 residents. A GLA resident must be blind or disabled or receiving benefits under Title II or Title XVI of the Social Security Act to be eligible for FNS benefits. 1. The GLA must meet the following conditions prior to certifying any of its residents for FNS benefits:

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 212 HOUSEHOLD COMPOSITION SPECIAL ARRANGEMENTS

3 Section 212 Change #3-2026 September 1, 2026 a. Be authorized by USDA to accept Food and Nutrition Services benefits; or b. Be certified by the State as a GLA; and c. The GLA must be determined to be a non-profit organization. 2. Residents can apply through the facility which will serve as an authorized representative. Eligibility must be determined as a one-person FNS unit; or 3. The resident may apply on his own behalf or select an authorized representative of his own choice. This will be determined by the GLA, based on the individual's mental and physical ability to handle his/her own affairs. The FNS unit size will be based on the number of individuals purchasing and preparing meals together. 4. The GLA may only purchase food for eligible Food and Nutrition Services recipients. If the Food and Nutrition Services recipient makes someone at the GLA his/her Authorized Representative. Refer to Section 220, Authorized Representatives. C. Residents of a Shelter for Battered Women and Children Battered Women and Children's Shelter is a public or private non-profit residential facility that serves battered women and their children. If such a facility services other individuals, a portion of the facility must be set aside on a long-term basis to serve only battered women and children. Residents of shelters may be considered as either an individual FNS unit (including their children) or a group FNS unit. To make this determination, you will need to know whether food is customarily purchased and prepared separately or in common with the group. These provisions apply to battered women and children but do not apply to battered men. These special provisions concern Food and Nutrition Services eligibility for residents of shelters for battered women and children that provide meals to their residents. 1. Prior to certifying residents of battered women’s shelter: a. Verify that the shelter meets the definition of a shelter for battered women and children. Shelters authorized by USDA to accept EBT benefits meet the definition of a battered women's shelter. b. Shelter residents may appoint an authorized representative though it is not required. See Section 220, Authorized Representatives, for more details.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 212 HOUSEHOLD COMPOSITION SPECIAL ARRANGEMENTS

4 Section 212 Change #3-2026 September 1, 2026 2. When the resident of the battered women's shelter is in a currently certified FNS unit: a. Shelter residents may apply for and receive Food and Nutrition Services benefits separately from the household they are currently certified in. This can only be done if they are a member of a certified household that contains the person who subjected them to the abuse. b. Shelter residents who are included in a currently certified FNS unit may receive an additional allotment as a separate FNS unit only once a month. c. Certify shelter residents based on their income, resources, and allowable expenses. Do not consider the former household's income, resources, or other expenses against the shelter individual(s). d. Take prompt action to ensure that the shelter residents are removed from their former FNS unit. D. Certain Residents of Federally Subsidized Housing Residents of federally subsidized housing for the elderly built under Section 202 of the Housing Act of 1959 are residents of institutions. These individuals are allowed to participate in the Food and Nutrition Services Program. E. Residents of an Alcohol and Drug Treatment Center 1. For Food and Nutrition Services purposes, Alcohol and Drug Treatment Centers (ADTC) are publicly operated or private non-profit institutions providing treatment that can lead to the rehabilitation of the residents, this includes faith-based and community Drug Addiction and Alcoholic (DAA) Treatment and Rehabilitation Programs.

2. Narcotic addicts or alcoholics who regularly participate in drug or alcoholic treatment and/or rehabilitation program(s) on a resident basis, including their children but not the spouses of such persons who live with them at the treatment center or facility, may participate in the Food and Nutrition Services Program providing all points of eligibility are met.

a. Center residents must apply and be certified through an authorized representative who is employed by the drug addiction or alcohol treatment center and designated by the center for that purpose. b. Center residents must be certified as a one-person FNS unit unless their child(ren) are living with them, in which case their children must be included in the FNS unit with the parent.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 212 HOUSEHOLD COMPOSITION SPECIAL ARRANGEMENTS

5 Section 212 Change #3-2026 September 1, 2026 c. At each application and recertification, verify approved drug treatment programs through: Chief, Drug and Rehabilitation Branch Division of Mental Health/DD/SAS Department of Health and Human Services 3007 Mail Service Center Raleigh, North Carolina 27699-3007 (919) 855-3795 3. Responsibilities of the ADTC when participating in the Food and Nutrition Services Program. a. The facility must be an approved treatment center. Verify approved alcohol treatment center programs through the Division of Mental Health. A listing of the licensed treatment centers, by county can be found on DHSR website, https://info.ncdhhs.gov/dhsr/. If an ADTC is not licensed by the Division of Mental Health and cannot provide documentation that meets the Food and Nutrition Services criteria for an ADTC, provide the ADTC with contact information to the Division of Mental Health. b. Key Routine Dates: 5th and 20th of Each Month 10th and 25th of Each Month Provide the local agency a list of clients that are currently residing and participating in the ADTC/DAA treatment center.

Providing the list of clients to the local agency with a signature and date from a reliable center official indicating the validity of the list. Verifying that the list provided to the local agency is accurate during the site visit by the center’s official/authorized representative. There is no requirement to physically see the residents for verification.

c. The treatment center must report changes in the FNS unit’s situation, such as income, resources, and circumstances of individuals in the assistance unit. Refer to Sections 450 and 550 for reportable changes. d. When the FNS unit leaves the treatment center, the ADTC must perform the following:

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 212 HOUSEHOLD COMPOSITION SPECIAL ARRANGEMENTS

6 Section 212 Change #3-2026 September 1, 2026 i. Notify the county DSS office. If possible, the center must provide the FNS unit with a change report form (DSS-8550) to report to the county the FNS unit’s new address and other circumstances after leaving the center and return the form to the agency within 10 days. After the FNS unit leaves the ADTC/DAA treatment center, the center can no longer act as the FNS unit’s authorized representative for certification purposes or for obtaining or using benefits. The ADTC will use the DSS-8550 Change Report Form link to maintain copies of the DSS-8550, and counties will ensure the treatment centers also have copies available.

ii. Provide the FNS unit with its EBT and ID card if it is in the possession of the ADTC/DAA treatment center. The center must return to the agency any EBT card not provided to departing residents by the end of each month.

NOTE: The ADTC/DAA treatment center is responsible for any misrepresentative, overissuance, or Intentional Program Violation. e. Ensure the use of a Point of Service (POS) device. Effective September 2026, FNS benefits will be issued to the FNS recipients’ EBT cards. ADTC/DAA’s will no longer have one card for residents in the facility. FNS recipients will have their own card. To purchase food for FNS recipients, ADTC/DAA facilities are required to have a Point of Service (POS) device. If a facility declines to get a POS device, then that facility will no longer be an authorized representative for FNS recipients to purchase food. Therefore, facility staff are responsible for assisting each FNS recipient with purchasing their own food. f. Each treatment center must have a PIN Safeguard Plan on hand. It is the responsibility of the county to share the plan with the treatment centers. The PIN Safeguard Plan should include the following elements and NC-specific EBT security procedures: PIN Safeguard Plan Establish Unique PINs Ensure clients do not use simple PINs (e.g.,1234,1111) or predictable numbers (e.g., birth years). Regular PIN Changes Encourage, or for ADTCs manage, the regular changing of the client's PIN (at least monthly or when benefits are loaded) http://www.ebtedge.com/.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 212 HOUSEHOLD COMPOSITION SPECIAL ARRANGEMENTS

7 Section 212 Change #3-2026 September 1, 2026 No Sharing Policy Enforce a strict policy that, except for Authorized Representatives, clients must not share their PIN or card with anyone, including other residents or staff. Immediate Reporting Report lost, stolen, or damaged cards immediately by calling 1-888- 622-7328. Secure Storage For ADTC/DAA facilities holding cards, cards must be stored in a secure location.

NC-Specific EBT Security Procedures Locking Cards Utilize the EBT app to lock/freeze the card when not in use to prevent fraudulent transactions, particularly if residents are leaving the facility. PIN Change Method Change the PIN through the secure IVR system (1-888-622-7328) or http://www.ebtedge.com/. EBT Edge Tools Block out-of-state and online transactions using the ebtEDGE mobile app or web portal. Skimming Check Inspect point-of-sale terminals for, or report, suspicious overlays on card readers.

g. Ensure the use of the FNS Monitoring Tool. To meet the quarterly data reporting requirement from the United States Department of Agriculture (USDA). DSS is required to use the FNS Monitoring Tool for all site visits. The FNS Monitoring Tool must be completed by the facility and DSS and submitted by DSS to DCFW.FNS.Policy@dhhs.nc.gov by the last day of each month. Submission must include the following: FNS Monitoring Tool EBT Balances The starting balance of EBT cards at the beginning of the reconciliation period and the current balance at the time of reporting. Resident Documentation An updated list of all current facility residents.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 212 HOUSEHOLD COMPOSITION SPECIAL ARRANGEMENTS

8 Section 212 Change #3-2026 September 1, 2026 Benefit Accountability The total number of benefits expunged, if applicable, and the number of benefits overissued to the facility, if applicable. Fraud Referrals Indication of any fraud referrals initiated as a result of the reconciliation process and the total number of referrals completed.

4. Responsibilities of the County Department of Social Services. a. Ensuring every ADTC/DAA treatment center has the DSS-1688 Designation of Authorized Representative form on file, including the name of the authorized representative and ADTC/DAA treatment center. b. Key Routine Dates: 5th and 20th of Each Month 10th and 25th of Each Month Designating a point of contact for the ADTC/DAA treatment center to provide a list of the clients that are residing in the treatment center. Conducting a site visit with the center official/authorized representative at the ADTC/DAA treatment center to verify the list provided by the treatment center is accurate.

c. Take action on any discrepancies found by the site visit prior to the next benefit issuance date. d. Ensure a PIN Safeguard Plan is in place and that the plan is shared with the ADTC/DAA treatment center. Required elements of the PIN Safeguard Plan include: PIN Safeguard Plan Replacement Cards The FNS recipient, together with the authorized representative for the treatment center, will contact the EBT Call Center to deactivate the card and request a replacement as soon as fraud is reported. Clients should be reminded to set a new,

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 212 HOUSEHOLD COMPOSITION SPECIAL ARRANGEMENTS

9 Section 212 Change #3-2026 September 1, 2026 secure PIN once the new card is issued. Educate on Fraud Inform clients that neither DSS nor NCDHHS will ever ask for their PIN. Authorized Representatives Verify authorized representatives are properly designated in NC FAST for ADTC/DAA residents.

e. Ensure the use of the FNS Monitoring Tool during all site visits. To meet the quarterly data reporting requirement from the United States Department of Agriculture (USDA). DSS is required to use the FNS Monitoring Tool for all site visits. The FNS Monitoring Tool must be completed by the facility and DSS and submitted by DSS to DCFW.FNS.Policy@dhhs.nc.gov by the last day of each month. Submission must include the following: FNS Monitoring Tool EBT Balances The starting balance of EBT cards at the beginning of the reconciliation period and the current balance at the time of reporting. Resident Documentation An updated list of all current facility residents. Benefit Accountability The total number of benefits expunged, if applicable, and the number of benefits overissued to the facility, if applicable. Fraud Referrals Indication of any fraud referrals initiated as a result of the reconciliation process and the total number of referrals completed.

F. Residents of Public or Private Nonprofit Shelters for Homeless Persons Residents of public or private nonprofit shelters for homeless persons are allowed to use their Food and Nutrition Services benefits to purchase prepared meals from USDA approved homeless meal providers. Individuals who are residents of public or private nonprofit shelters for the homeless are the exception to the requirement that states residents of institutions that provide individuals with the majority of their meals (over 50%) of three meals daily are not eligible for Food and Nutrition Services benefits.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 212 HOUSEHOLD COMPOSITION SPECIAL ARRANGEMENTS

10 Section 212 Change #3-2026 September 1, 2026 A homeless shelter, however, cannot be the authorized representative for the homeless individual. Even though a shelter provides meals, it does not mean that the individual that stays in the shelter is there to partake of the meal provided. The individual is still homeless and may still wander during the day and stay at the shelter at night. The individuals in a homeless shelter can participate in the program and must be treated as separate households from the others with whom they reside, subject to mandatory household combination as required by law (i.e., homeless spouse in the same shelter cannot be a separate household). 212.04 HOUSEHOLDS WITH SPECIAL CIRCUMSTANCES A. Temporary Absence There is no provision for temporary absence in the Food and Nutrition Services Program. At application and recertification exclude an individual who is residing away from the FNS unit on a temporary basis. Refer to Manual Sections 450 and 550 to determine appropriate reporting requirements. B. Absent Wage Earners An absent wage earner is an individual who is often away from his/her residence because of the distance to work. Include an absent wage earner in the FNS unit. To exclude the absent wage earner, the FNS unit is responsible for establishing that the wage earner is not an FNS unit member. If the absent wage earner maintains a separate residence from the FNS unit, consider whether the individual is separate from the FNS unit. Evaluate each case on its own merit using the best available information. Some examples of absent wage earners may include, but are not limited to, individuals who drive trucks, fish commercially, and those who are traveling salespeople.

C. Military Personnel Military personnel are often stationed away from their households with little advance warning. Individuals "left behind" for undetermined periods of time that are 30 days or more in length may apply for Food and Nutrition Services benefits. This applies to both temporary duty (TDY) and permanent change of station (PCS). Determine eligibility based on the situation of the remaining FNS unit members. Consider any gain or benefit that is not in the form of money as in-kind and exclude it as income. Count any contribution made by the member to the FNS unit as unearned income. If a military allotment is being sent to the FNS unit, count as unearned income to the FNS unit. If the FNS unit shares a joint bank account with the absent military personnel and their pay is directly deposited into this account, count the money as unearned

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 212 HOUSEHOLD COMPOSITION SPECIAL ARRANGEMENTS

11 Section 212 Change #3-2026 September 1, 2026 income to the FNS unit. Upon return of the military member to the FNS unit, count all income and resources at the time the change occurred. See Section 250, Resources, and 4070 in the Integrated Eligibility Manual, Income, for resources and income procedures. D. Migrants Migrant farm laborers travel either in state or out-of-state often following a particular crop. Because these households have no fixed place to reside during the work season, residency can be difficult to determine. Verifications may be obtained through the crew leader, the local farmer, or the following organizations. 1. Employment Service 2. Farm Labor Bureau 3. Rural Manpower Development 4. Farmer's Cooperative Service 5. The Grower's Organization 6. Migrant Service Organization 7. The County Agriculture Extension Services Agency E. Strikers A striker is anyone involved in a strike. Persons on strike are not considered to have quit their jobs. FNS units containing a striker(s) are ineligible unless the striker(s) is exempt from work registration (See FNS 240 Work Registration) or was eligible prior to the strike. F. Joint Custody A joint custody agreement is not required to be a court document; it can be a verbal agreement between the parents. The child must be included in the FNS household that they physically live with the majority of the time, regardless of the terms of a custody agreement. 1. 50/50 Custody: In cases of joint custody where a child lives exactly the same amount of time with each parent, the household that applies for FNS benefits first may include the child in their FNS unit.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 212 HOUSEHOLD COMPOSITION SPECIAL ARRANGEMENTS

12 Section 212 Change #3-2026 September 1, 2026 2. Other Custody: The parent that the child lives with for 51% or more of their time is the only parent that may include the child in their FNS case. The other parent may not include the child in their FNS case unless custody changes. G. Students If a student attends college and returns home often, the residence is determined by where the student states that he/she eats the majority of his/her meals. This only applies to students who are eligible to receive Food and Nutrition Services benefits based on the eligibility requirements in FNS 235 Student of Higher Education. H. House Arrest A person placed under house arrest by the court is to be included in the FNS unit unless their conviction is a drug-related felony. The individual must still meet all Food and Nutrition Services eligibility requirements, such as Work Registration, Resources, etc. I. Refusal to Cooperate with Quality Control Review A household is ineligible to participate in the Food and Nutrition Services if it refuses to cooperate with State and/or USDA staff who conduct Quality Control (QC) Reviews. Cooperation includes, but is not limited to, being available for a personal interview and providing requested information. Terminate Food and Nutrition Services benefits if a State or Federal QC Reviewer informs the agency of a household’s refusal to cooperate. If a household is terminated for refusal to cooperate with a QC Reviewer, the household can reapply at any time but cannot be determined eligible until it cooperates or the disqualification time period ends. The QC Referral will indicate the maximum disqualification for refusal to cooperate. Do not terminate Food and Nutrition Services benefits based on an FNS unit’s refusal to cooperate with QC in another state.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 215 RESIDENCE FNS 215 RESIDENCE Change #02-2026 August 4, 2026 215.01 RESIDENCE REQUIREMENT A Food and Nutrition Services (FNS) household must live in North Carolina to file an application and participate in the FNS program in North Carolina. The following conditions apply to residence requirements: A. There is no durational residency requirement to be considered a resident of North Carolina. B. No individual may participate as a member of more than one FNS household or in more than one state, in any month or any part of a month, unless an individual is a resident of a shelter for battered women and children and meets the requirements found in FNS 212.03 C. Household Composition Special Arrangements. C. Otherwise eligible households are not required to reside in a permanent dwelling or have a fixed mailing address as a condition of eligibility. D. There is no requirement to show intent to reside permanently in the State. E. Persons in North Carolina solely for vacation purposes shall not be considered residents. F. While legal custody can be considered a lead to determining residence for children, it in itself does not verify residence. FNS residence is based on the actual physical location of each individual. Example: A grandmother has legal custody of the children in Anytown, NC, but the children actually live with their mother in Other Town, NC. The children’s residence is the location that they physically live, which would be Other Town, NC. 215.02 FILING AN FNS APPLICATION A. In-Person: 1. The Food and Nutrition Services (FNS) unit must live in the county in which it makes an in-person application for FNS benefits. 2. If the worker determines that the applicant resides outside their county prior to starting the application process in North Carolina Families Accessing Services through Technology (NC FAST) they may refer the applicant to the county Department of Social Services (DSS) in the applicant’s county of residence and Section 215 Change #02-2026 August 4, 2026

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 215 RESIDENCE Section 215 Change #02-2026 August 4, 2026 provide information on mailing, faxing and filing an online application to the applicant. 3. If the worker determines that the applicant resides outside their county after starting the application process in NC FAST, the application must be taken, processed and transferred to the household’s county of residence upon disposition. B. Mail, Fax, Email, Dropped Off: 1. Applications submitted by mail, fax, email, or dropped off in a county in which the household does not reside must be faxed to the county of residence within one business day. 2. If the receiving county fails to fax the application within one business day to the actual county of residence, the receiving county must process the application and transfer upon disposition. 3. The application date is the date received by first county. C. Online Applications: Applications filed online through the state website ePASS.nc.gov must be processed by the county that receives the application, regardless of the county of residence. The receiving county must transfer the application to the county of residence after disposition. 215.03 RESIDENCY VERIFICATION A. Non-Categorical Eligible FNS Units: 1. Verify residency at initial application and reported change of residence. Act on the resulting shelter and utility costs under FNS 515.12. 2. Verify residency in conjunction with the verification of other information such as, but not limited to, all shelter expenses (mortgage payments, utility bills, etc.), household size/composition (if questionable), and identity. 3. If residency cannot be verified in conjunction with other verifications, use a collateral contact or other documentary evidence. a. Accept any document that reasonably establishes the applicant's residency. b. Do not request or require any specific type of document. NOTE: Verification of residency may not be reasonably accomplished for some households such as homeless, migrant farmworkers, or households newly arrived in a project area. Verification must be pursued unless the household

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 215 RESIDENCE Section 215 Change #02-2026 August 4, 2026 indicates that verification cannot be obtained. If it is determined that verification cannot be obtained, accept the client’s statement for residency and document why the verification was not obtainable. B. Categorical Eligible FNS Units: Do not require verification of residence for FNS households that are categorically eligible. Accept the household’s statement. 215.04 DOCUMENTATION Document the verification source in NC FAST using the appropriate notes and evidences. Scan any supporting documents in NC FAST using the appropriate taxonomy as outlined in NC FAST help. 215.05 MOVE BY THE FNS UNIT WITHIN THE STATE When a household with an active FNS or SNAP case reports it has moved to another county, document the new address, phone number and county of residence. Prior to transferring the case, update the address in NC FAST and address applicable changes in the household’s situation. Do not transfer a case until all applicable changes have been completed. Act on the shelter and utility costs arising from the move in accordance with FNS 515.12, Change of Residence During the Certification Period. A. County Transfer Policy Rules for all active FNS and SNAP Cases. 1. Do not transfer: a. An application to another county. Once the application is approved, transfer the ongoing case. b. A pending recertification. Once the recertification is approved, transfer the ongoing case. c. A case with any other pending action. Once the pending action is completed, transfer the ongoing case. Note: If the FNS unit reports a non-required change but fails to provide verification of the changed information, the case may be transferred after all time standards for requesting information have expired. 2. Transfer of cases in the last two months of the certification period or in the suspense month: a. The FNS household has not visited or submitted an application to the new county of residence:

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 215 RESIDENCE Section 215 Change #02-2026 August 4, 2026 i. Do not refer the client or the application/recertification to the new county of residence. ii. The county in which the client is active is responsible for completing the recertification. iii. Complete the transfer after the recertification is disposed. b. The FNS household has submitted an application or visited the new county of residence in-person: i. Do not refer the client back to the active county. ii. The new county is responsible for the recertification. iii. A supervisor in the new county must contact the county in which the household is active within 3 days of receipt of the application/recertification or office visit. iv. The county in which the client is active is responsible for changing the address and the owner of the income support and product delivery case. NOTE: If an action is pending in the active county and the new county receives a DSS-2435, the form should be forwarded to the active county. 215.06 MOVE BY THE FNS UNIT OUT OF THE STATE When an FNS unit moves out of the state, take the following steps. A. Terminate the FNS unit without Notice of Adverse Action. B. Provide the FNS unit with a DSS-8632 Confirmation of Voluntary Reduction or Termination of Benefits, which indicates the date benefits were last received in North Carolina. C. Advise the FNS unit to contact the appropriate FNS Office in the new state. D. The FNS unit may use their EBT card in the other state if the new state’s EBT System can accept a North Carolina EBT card. NOTE: Returned mail with an out of state forwarding address by itself would not be considered reliable information to act upon.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS

FNS 220 CATEGORICAL ELIGIBILITY

1 Section 220 Change #02-2024 October 01, 2024 FNS 220 CATEGORICAL ELIGIBILITY CHANGE #02-2024 OCTOBER 01, 2024

220.01 CATEGORICAL ELIGIBILITY Categorical eligibility simplifies the Food and Nutrition Services (FNS) application process for both county agencies and households by reducing the amount of information that must be verified if a household already qualifies and has been determined eligible to receive benefits from another assistance program. 220.02 CATEGORICAL ELIGIBILITY TYPES FNS households are categorically eligible when they meet the criteria in one of the following categorical eligibility types: A. Work First Family Assistance (WFFA): All members of the FNS unit are authorized to receive WFFA. This includes all WFFA payment types including Benefit Diversion. B. Work First Services for Low-Income Families at or Below 200% of Poverty & Employment Services for Non-Custodial Parents: At least one member of the FNS unit is authorized to receive an available service from Work First. This includes FNS units that are at or below 200% of the federal poverty level and at least one member of the FNS unit is authorized to receive Work First Services available through the Temporary Assistance for Needy Families (TANF) Block Grant. The individual may receive services available for working low-income families or for non-custodial parents. “Authorized to receive” means that an individual has been determined eligible for benefits and has been notified of this determination, even if the benefits have been authorized but not received, authorized but not accessed, suspended, or recouped. Develop verification procedures within the agency to determine individuals that are authorized for Work First Employment Services. Document the North Carolina Families Accessing Services through Technology (NCFAST) case file that the individual is authorized for Work First Employment Services. NOTE: This policy applies only to counties that provide these services within their agency and have submitted a Work First Plan indicating they are providing these services. Welfare-to-Work and other contracted employment services are not considered Work First Employment Services for categorical eligibility determination.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS

FNS 220 CATEGORICAL ELIGIBILITY

2 Section 220 Change #02-2024 October 01, 2024 C. Supplemental Security Income (SSI) benefits: All members of the FNS unit are authorized to receive SSI benefits. D. Combination SSI and WFFA: All members receive a combination of WFFA and/or SSI benefits. E. Expanded (200%) Categorical Eligibility: FNS units must meet four (4) criteria to be considered expanded categorically eligible. The FNS unit must meet all of the following criteria: 1. The FNS unit does not meet the criteria for A, B, C or D above; and 2. The income of the household is at or below the 200% maximum allowable gross income limit; and 3. The FNS unit is not ineligible per FNS 220.03; and 4. The FNS unit has been notified of TANF funded services. The notification for TANF funded services is included on all state approved applications. Therefore, the FNS unit may be considered expanded (200%) categorically eligible from the date of application as long as all other criteria in this section are met. Note: Do not require or request verification of residency for expanded (200%) categorically eligible FNS units. Refer to FNS 215 Residency for more information. Once determined expanded (200%) categorically eligible at application disposition, the FNS unit retains the determination unless one of the conditions referenced in 220.04 Loss of Categorical eligibility. NOTE: Refer to FNS 225 Citizenship and FNS 227 Non-citizenship Status, to first determine FNS eligibility for aliens. An individual can be eligible for SSI, WFFA, or Work First Employment Services but ineligible for FNS benefits due to his/her non-citizen status. Non-citizens are not automatically categorically eligible. 220.03

INELIGIBLE FOR CATEGORICAL ELIGIBILITY STATUS A FNS household can not be considered categorical eligible if one or more of the following applies: A. Any member of the household is disqualified for an intentional program violation (IPV); or

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS

FNS 220 CATEGORICAL ELIGIBILITY

3 Section 220 Change #02-2024 October 01, 2024 B. The head of household is disqualified for failure to comply with work program requirements as required in FNS 240 Work Requirements: or C. Any member of the household is disqualified for conviction of a drug felony since August 23, 1996, for an act committed on or after August 23, 1996; or D. Any FNS unit that loses eligibility due to receiving lottery/gambling winnings of $4,500 or more cannot be considered categorical eligible if they reapply for benefits. The household’s application must be processed using all non- categorically eligible financial resources and income eligibility requirements.

220.04

LOSS OF CATEGORICAL ELIGIBILITY A. With the exception of lottery or gambling winnings, loss of categorical eligibility is not a required reportable change. When the FNS household loses categorical eligibility status as the result of a change take the following actions: 1. Consider resources that have been excluded during the current certification period. 2. Address only resources that are known and documented in the file that exceed the resource limit. 3. If the known resources exceed the resource limit, terminate assistance following notice requirements found in FNS 170 Notices. 4. If the resources are questionable, address at the next certification. The agency does not interview the household about resources until the next certification. B. A household is no longer categorically eligible if: 1. WFFA, Work First Services for Low-Income Families at or Below 200% of Poverty, Employment Services for Non-Custodial Parents, and/or SSI benefits, Benefit Diversion terminates; AND the income of the household exceeds the 200% maximum allowable gross income limit; or 2. A household member becomes disqualified due to one of the reasons listed in 220.03; or 3. If WFFA, SSI, or Work First Employment Services benefits are terminated but the household is still eligible for FNS benefits, advise the FNS unit of the appropriate work requirements.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS

FNS 220 CATEGORICAL ELIGIBILITY

4 Section 220 Change #02-2024 October 01, 2024 220.05 VERIFICATION OF WFFA, WORK FIRST EMPLOYMENT SERVICES, OR SSI A. Categorically eligible FNS unit’s are subject to all FNS eligibility requirements with the exception of those listed in this section. FNS units must meet all other eligibility requirements, such as but not limited to citizenship/alien status, disqualifications, work requirements, student status, etc., prior to being evaluated for categorical eligibility. Do not require verification of the following information from categorical eligible households: 1. Resources – The household automatically passes the resource test. Do not require additional verification of resources. 2. Gross and net income – The FNS unit is exempt from the gross and net income limits test. 3. Residency – Do not request or require verification of residency from categorical eligible households. 4. Enumeration. B. Verify the type of assistance received and the authorization period. Document in the NCFAST case record that an individual is authorized for: 1. WFFA; or 2. Benefit Diversion; or 3. Work First Employment Services for Working Low-Income Families; or 4. Work First Employment Services for Non-Custodial Parents; or 5. SSI Benefits. C. Use the TANF funded evidence to document in the NCFAST case file that the household was provided information for Healthy Marriages and Teen Pregnancy Prevention, which are TANF funded services, at each application, reapplication, recertification and change in situation by use of state approved application, recertification, and change forms. 220.06 APPLICATION PROCESSING FOR HOUSEHOLDS APPLYING FOR BOTH FNS BENEFITS AND WFFA/SSI/WORK FIRST EMPLOYMENT SERVICES A. Approving an FNS Application Pending WFFA, SSI, or Work First Employment Services Approval 1. Follow regular FNS policy verification procedures for eligibility factors that are needed solely for determining FNS eligibility. If the household’s income is at

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS

FNS 220 CATEGORICAL ELIGIBILITY

5 Section 220 Change #02-2024 October 01, 2024 or below the 200% maximum allowable gross income limit the household meets the categorical eligibility criteria and the application is processed. 2. If the FNS unit has provided sufficient verification to meet FNS verification requirements but has failed to provide sufficient verification for WFFA, SSI, or Work First Employment Services approval, process the FNS application following regular FNS Program rules. Do not deny the FNS application for failure to provided sufficient verification or for failure to comply with processing requirements. 3. If an FNS unit’s categorical eligibility cannot be established due to a pending WFFA, SSI, or Work First Employment Services application, and the FNS unit does not meet the 200% maximum allowable gross income limit criteria, pend the FNS application until the 30th day unless the FNS unit is entitled to expedited service. This only applies when categorical eligibility is needed to establish FNS eligibility. 4. Once WFFA, SSI, or Work First Employment Services is approved, the FNS unit is considered categorically eligible if all other eligibility criteria are met. 5. If the WFFA or SSI approval can be reasonably anticipated, include the monthly payment amount as income. “Reasonably anticipated” means that the WFFA application-processing deadline is approaching and no processing delays are expected or an SSI award letter has been issued. 6. Do not include WFFA or SSI payments intended for prior months as income. 7. If the amount and/or date of receipt of the initial WFFA or SSI benefits cannot be reasonably anticipated, do not count the payment as income. Consider the WFFA or SSI approval as a change in situation. 8. For pending Work First Employment Services applications, and the FNS unit does not meet the 200% maximum allowable gross income limit criteria, the FNS unit is not categorically eligible until at least one member of the FNS unit is authorized for Work First Employment Services. If authorization can be reasonably anticipated, consider the FNS unit categorically eligible. If authorization cannot be reasonably anticipated, follow regular FNS eligibility rules. B. Denying an FNS Application Pending WFFA, Work First Employment Services, or SSI Approval Do not deny the application of a potentially categorically eligible household until the 30th calendar day following the date of application if pending for an eligibility factor that is related to categorical eligibility. If the household’s income is at or below the 200% maximum allowable gross income limit the household meets the categorical eligibility criteria and the application is processed.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS

FNS 220 CATEGORICAL ELIGIBILITY

6 Section 220 Change #02-2024 October 01, 2024 If a household is ineligible based on FNS eligibility criteria and the WFFA, Work First Employment Services, or SSI eligibility decision is still pending on the 30th day, take the following actions. 1. Deny the FNS application on the 30th day using regular FNS rules. 2. Ensure that the denied application of a potentially categorically eligible household is easily retrievable. A manual tracking system, or any method that will provide accessibility as needed, may accomplish this task. Continue to monitor the pending SSI, WFFA, or Work First Employment Services application until a determination is made regarding eligibility. This can be accomplished by monitoring SSI applications for a period of 90 days (the period of time that the Social Security Administration has to approve or deny SSI benefits) and by monitoring WFFA or Work First Employment Services applications for 45 days (the period of time allowed to approve or deny a WFFA application). If the SSI, WFFA, or Work First Employment Services application pends longer than the allowable time frames, inform the household of their responsibility to provide notification of the approval or denial. C. Reopening a Previously Denied FNS Application Upon WFFA, Work First Employment Services, or SSI Approval If the household becomes categorically eligible after the FNS application is denied, reevaluate the original application upon request or when you become aware of the household’s SSI, WFFA, or Work First Employment Services approval. Take the following actions: 1. Reopen the application. The date of application is either the original date of application or the effective date of the WFFA, Work First Employment Services, or SSI approval, whichever is later. 2. Do not reinterview the household. Update the original application using available information. Contact the household via telephone or mail to explore changes in situation. 3. If information obtained from the household differs from original information or changes have occurred, a household member or authorized representative must initial all changes, re-sign and date the updated application, and provide necessary verification. 4. Allow deductions for specified persons beginning with the date of the FNS application or the effective date of the SSI payment, whichever is later. 5. Authorize FNS benefits back to the date of the FNS application for FNS unit’s that are determined eligible for WFFA, SSI, or Work First Employment Services for a period of time within the 30-day FNS processing time.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS

FNS 220 CATEGORICAL ELIGIBILITY

7 Section 220 Change #02-2024 October 01, 2024 6. If an FNS unit files a joint application and is determined categorically eligible after being denied FNS benefits under regular program rules, prorate FNS benefits from the date of the FNS application or the date the public assistance (PA) benefits are authorized, whichever is later. D. Allotments for Categorically Eligible Households 1. All categorically eligible one or two-person FNS unit’s are entitled to a minimum monthly allotment. 2. There is no minimum allotment for categorically eligible households with three or more members. FNS budgeting procedures may determine these households ineligible based on a zero allotment amount as determined by the FNS unit’s income level. 220.07 SUSPENDED CATEGORICALLY ELIGIBLE HOUSEHOLDS Prior to July 1, 2010, if a categorically eligible household of three or more was ineligible for an allotment, the case was suspended. Effective July 1, 2010, if categorically eligible households suspend due to ineligibility for a payment, the case will be terminated.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 225 UNITED STATES CITIZENSHIP

1 Section 225 Change #6-2021 July 12, 2021

FNS 225 UNITED STATES CITIZENSHIP Change #6-2021 July 12, 2021

225.01

CITIZENSHIP REQUIREMENT Each applicant/recipient of Food and Nutrition Services (FNS) must be a U.S. citizen or a non-citizen lawfully admitted into the U.S. under specific immigration status to participate in the FNS program. A. United States Citizenship Requirement: 1. Any person (other than the child of a foreign diplomat) born in the continental U.S., Alaska, Hawaii, Puerto Rico, Guam, U.S. Virgin Islands, Northern Mariana Islands, American Samoa, or Swains Islands. 2. Any person who is a naturalized citizen of the U.S. 3. A child born outside the U.S. when either parent is a citizen of the U.S., provided one of the requirements in 225.03 are met. B. Non-citizen Requirement: See manual section FNS 227 Non-citizen Requirements.

225.02

CERTIFICATION OF CITIZENSHIP A. The applicant or FNS Unit member must certify, under penalty of perjury, the citizenship of themselves and all individuals included in the FNS unit. B. The head of household or an adult FNS unit member meets this requirement by: 1. Signing the application or recertification; and 2. Stating the citizenship of all new FNS unit members when a change in household composition is reported. 225.03

VERIFICATION OF UNITED STATES CITIZENSHIP A. Unless questionable, accept the applicant’s certification as verification of citizenship. B. The applicant's statement regarding citizenship is considered questionable when:

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 225 UNITED STATES CITIZENSHIP

2 Section 225 Change #6-2021 July 12, 2021 1. The claim of citizenship is inconsistent with statements made by the applicant or with other information on the application or previous applications. 2. The claim of citizenship is inconsistent with information received from another source. 3. Lack of proficiency in speaking or writing English is not sufficient cause to question an individual’s citizenship. C. If the applicant's statement is questionable, verify citizenship using: 1. Birth certificates showing birth in the U. S. or areas indicated in 225.01 a; or 2. Hospital/doctor records established at the time of birth. This includes a hospital-issued birth certificate; or 3. Birth certificates or documents verifying the U.S. citizenship of at least one parent, and that the child is the biological child of that parent. Example: A mother applying for benefits for herself and two children was born in Texas, but the children were born in Mexico, as the mother spent time in both countries. If the mother can prove that she is a U.S. citizen and that the children are her biological children, the children are U.S. citizens. 4. Certificates of Citizenship or Naturalization issued by U.S. Citizenship and Immigration Services (USCIS); or 5. U.S. Passport (except limited passports, issued for periods of less than five years); or 6. Report of birth abroad of a U.S. citizen (FS-240) issued by the Department of State to a U.S. citizen; or 7. Verification of receipt of Work First (if Work First verified citizenship); or 8. Social Security Administration Records; or 9. Certificate of Naturalization (N-550 or N-570). The N-570 is a replacement certificate issued when the N-550 has been lost or the individual’s name has been changed; or 10. Certificate of birth (FS-545) issued by a foreign service post or Certification of Report of Birth (DS-1350) issued by the Department of State; or 11. Certificate of Citizenship (N-560 or N-561) issued by the USCIS to individuals who derive citizenship through a parent. The N-561 is a replacement certificate issued when the N-560 has been lost or the individual’s name changed; or

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 225 UNITED STATES CITIZENSHIP

3 Section 225 Change #6-2021 July 12, 2021 12. United States Citizen Identification Card (I-197) issued by the USCIS until April 7, 1983, to U.S. citizens living near the Canadian or Mexican border who needed it for frequent border crossings. The I-179 was issued prior to the I-197 until February 1974; or 13. Northern Mariana Identification Card (issued by the USCIS to a naturalized citizen of the U.S. born in the Northern Mariana Islands before November 3, 1986; or 14. Statement provided by a U.S. consular officer certifying that the individual is a U.S. citizen who does not have a FS-240, FS-545, or DS-1350; or 15. American Indian Card with a classification code of “KIC” and a statement on the back (identifying U.S. citizen members of the Texas Band of Kickapoos living near the U.S./Mexican border; or 16. Two of the following: a. School records; b. Bible records; c. Hospital, physician, or health department records; d. Court records; e. U.S. census record showing name, U.S. citizenship or a U.S. place of birth, and a date of birth or age of applicant; f. Evidence of civil service employment by the U.S. government before June 1, 1976; g. A witnessed statement from an individual who has specific knowledge about the birth of the person whose citizenship is in question. The statement must include: i. Name of the person whose citizenship is in question; and ii. Date of birth; and iii. Place of birth; and iv. Relationship, if any, to the person whose citizenship is in question; and v. Basis of the individual's knowledge. D. Procedure When No Verification Is Provided 1. If the applicant cannot provide verification of citizenship, request documentation using regular request for information policy found in manual section FNS 170 Notices.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 225 UNITED STATES CITIZENSHIP

4 Section 225 Change #6-2021 July 12, 2021 2. If no documentation is available, refer the applicant to the local USCIS at: www.uscis.gov by going to the “Services and Benefits” section to find the appropriate field office; or by calling USCIS customer service at 1-800-375- 5283. 3. Treat this individual as an ineligible non-citizen until verification is provided. 225.03

DOCUMENTATION OF UNITED STATES CITIZENSHIP Document the verification source in North Carolina Families Accessing Services through Technology (NC FAST). Scan any supporting documents in NC FAST using the appropriate taxonomy as outlined in NC FAST help.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

1 Section 227 Change #1-2026 February 1, 2026 FNS 227 NON-CITIZEN REQUIREMENTS Change #1-2026 February 1, 2026

227.01 IMPLEMENTATION OF SECTION 10108 OF H.R. 1 (Pub. L. 119-21) A. Overview Section 10108 of H.R. 1 (Pub. L. 119-21), the One Big Beautiful Bill Act of 2025, amends Section 6(f) of the Food and Nutrition Act of 2008 (7 U.S.C. § 2015(f)) to limit FNS eligibility to three categories of non-citizens. This policy implements the federal statutory changes effective February 1, 2026 in North Carolina. B. Federal Guidance This policy aligns with guidance issued by USDA Food and Nutrition Service on: • October 31, 2025 – OBBB Implementation Memo: Alien SNAP Eligibility • December 9, 2025 – OBBB Alien SNAP Eligibility Q&A Set 1 (revised December 10, 2025) NCDHHS will monitor for additional federal guidance, which will be incorporated into policy through subsequent transmittals.

Note: Per 7 CFR 275.12(d)(2)(vii), a 120-day variance exclusion period applies to new federal policy changes. Quality control findings related to these eligibility changes will not be subject to liability during the initial implementation period. In State of New York v. Rollins, No. 6:25-cv-02186-MK (D. Or. Dec. 15, 2025), the court granted a preliminary injunction extending the “hold harmless” period through April 9, 2026. C. Eligible Non-Citizen Categories Under H.R. 1 Effective February 1, 2026, non-citizens must fall into one of the following three categories to be eligible for FNS: Category Definition Waiting Period Lawful Permanent Residents (LPRs) "Green card" holders admitted under INA §§ 101(a)(15) and 101(a)(20) Subject to 5-year waiting period unless exempt (see FNS 227.06) Cuban and Haitian Entrants As defined in Section 501(e) of the Refugee Education Assistance Act of 1980 (Pub. L. 96-422) None -- eligible immediately

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

2 Section 227 Change #1-2026 February 1, 2026 COFA Migrants Citizens of Federated States of Micronesia, Republic of Marshall Islands, or Republic of Palau per PRWORA § 402(b)(2)(G) None -- eligible immediately

Statutory Authority: 7 U.S.C. § 2015(f)(2)(B) (LPRs); 7 U.S.C. § 2015(f)(2)(C) (Cuban and Haitian Entrants); 7 U.S.C. § 2015(f)(2)(D) (COFA Migrants).

Non-Citizen U.S. Nationals: Per USDA guidance, non-citizen U.S. nationals (primarily individuals from American Samoa, Swains Island, or the United States Minor Outlying Islands) are eligible immediately with no waiting period. See also FNS 225 for citizenship/national status requirements.

D. Categories No Longer Independently Eligible The following "qualified alien" categories under PRWORA (8 U.S.C. § 1641) are no longer independently eligible for FNS based on their status: • Refugees admitted under INA § 207 • Asylees granted asylum under INA § 208 • Individuals with deportation/removal withheld under INA § 243(h) or § 241(b)(3) • Conditional entrants under INA § 203(a)(7) • Parolees admitted under INA § 212(d)(5) for at least one year • Battered aliens under the Violence Against Women Act (VAWA) • Victims of severe forms of trafficking • Amerasian immigrants • Iraqi and Afghan Special Immigrants (SIVs) • Certain Afghan nationals granted parole between July 31, 2021 and September 30, 2023 • Certain Ukrainian nationals granted parole between February 24, 2022 and September 30, 2024 Pathway to Eligibility: Individuals in these categories may become eligible for FNS by adjusting status to Lawful Permanent Resident (LPR). Per 7 CFR 273.4(a)(6)(iv), "Each category of eligible alien status stands alone for purposes of determining eligibility." 7 CFR 273.4(a)(6)(iv). Eligibility is determined by current immigration status, not prior status.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

3 Section 227 Change #1-2026 February 1, 2026 Many LPRs who adjusted from these prior statuses are exempt from the five-year waiting period (see FNS 227.06). E. What HAS NOT Changed H.R. 1 did not amend PRWORA's five-year waiting period provisions (8 U.S.C. §§ 1612-1613). The waiting period rules, including all categorical and personal exemptions, remain in effect for LPRs. See FNS 227.06 for waiting period determination procedures. Sponsor deeming rules under 8 U.S.C. § 1631 also remain unchanged. See FNS 227.08 for sponsored non-citizen requirements. Phase 2 Implementation (Deferred): Changes to income counting rules (FNS 350) and shelter deduction proration (FNS 340) for mixed-status households require additional NC FAST system updates and will be implemented in a subsequent phase. Until Phase 2 implementation, continue applying current FNS 350 and FNS 340 rules for mixedstatus household budgeting. USDA has special rules and procedures for handling the income and resources of ineligible non-citizens living in households with other eligible members. North Carolina intends to exercise its State discretion under 7 CFR 273.11(c)(3)(i) and 7 CFR 273.11(c)(3)(ii) to standardize income counting for all ineligible non-citizens by using prorated income for ALL purposes (gross income test, expedited screening, and benefit calculation). After systems changes can be completed, NC will adopt a uniform policy to standardize treatment of income across all ineligible non-citizens categories for the purposes of administrative simplification and error reduction. F. Implementation Apply H.R. 1 non-citizen eligibility criteria at initial application and recertification effective February 1, 2026. 1. At Initial Application. Effective February 1, 2026, apply H.R. 1 non-citizen eligibility criteria to all new FNS applicants. Pending Applications: For FNS applications received before February 1, 2026 but processed on or after February 1, 2026, determine eligibility separately for each benefit month based on the policy in effect for that month.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

4 Section 227 Change #1-2026 February 1, 2026 SAVE Verification Requirement: County agencies must verify eligible immigration status of all non-citizen household members applying for FNS. Households are required to submit U.S. Citizenship and Immigration Services (USCIS) documentation for each noncitizen applying for FNS benefits as a condition of eligibility. County agencies must then verify the validity of these documents through the Systematic Alien Verification for Entitlements (SAVE) program. See FNS 227.07 for acceptable documentation and SAVE verification procedures.

Non-Applicant Household Members: County agencies cannot request verification or attempt to verify citizenship or immigration status for household members not seeking FNS benefits—for example, non-citizen parents submitting an application for their children. 2. At Recertification Effective February 1, 2026, for households already receiving FNS, review household circumstances and apply H.R. 1 eligibility criteria at the household’s next recertification. SAVE Verification: County agencies must initiate SAVE verification at every recertification for non-citizen FNS unit members who are seeking benefits for themselves, regardless of whether a change in immigration status has been reported. Document SAVE results in NC FAST using the appropriate evidence type. 3. Households in Active Certification Period.

For households currently certified as of the effective date of the H.R. 1 changes: • Do not send Requests for Contact or take adverse action regarding immigration status mid-certification due to prior NCFAST certification status. • Apply H.R. 1 non-citizen eligibility rules at the household's next scheduled recertification. • If a household voluntarily reports a change in immigration status, act on the reported change and initiate SAVE verification. IMPORTANT: Immigration status is not a required reporting item. Households are not required to report changes in immigration status during a certification period.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

5 Section 227 Change #1-2026 February 1, 2026 4. No Claims for Pre-Recertification Benefits Individuals who lose eligibility at recertification due to H.R. 1 non-citizen eligibility changes are not subject to claims for benefits received between the H.R. 1 enactment date and their recertification date. Regulatory Authority: Per 7 CFR 273.12(a)(1), 7 CFR 273.12(d), and 7 CFR 273.18, households cannot be held liable for overissuances resulting from circumstances they were not required to report. 5. Implementation Summary

Scenario Action New application on/after 2/1/2026 Apply H.R. 1 eligibility criteria; initiate SAVE verification. Application filed prior to 02/01/2026 and pending as of 2/1/2026 Evaluate January 2026 or earlier months benefits under prior rules; February 2026 benefits under H.R. 1 criteria; initiate SAVE verification. Recertification on/after 2/1/2026 Apply H.R. 1 criteria; initiate SAVE verification; provide notice if status changes Currently certified; no change reported No action until recertification; do not initiate midcertification adverse action based on prior NCFAST certification status. Voluntary report of status change Act on reported change; initiate SAVE verification Benefits received before recertification No claims for pre-recertification benefits due to H.R. 1 changes

Proceed to FNS 227.02 Non-Citizen Requirement for detailed eligibility determination procedures.

227.02 NON-CITIZEN REQUIREMENT Each applicant/recipient of Food and Nutrition Services (FNS) must be a U.S. citizen, a U.S. national, or a non-citizen in an eligible immigration category under Section 6(f) of the Food and Nutrition Act (7 U.S.C. § 2015(f)) to participate in the FNS program.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

6 Section 227 Change #1-2026 February 1, 2026 A. United States Citizenship and National Status See manual section FNS 225 Citizenship. B. Non-citizen Eligibility Categories and Requirements: To participate in the FNS program, non-citizens must: 1. Fall into one of the three eligible non-citizen categories under H.R. 1: • Lawful Permanent Resident (LPR) • Cuban or Haitian Entrant • COFA Migrant (citizen of Federated States of Micronesia, Republic of the Marshall Islands, or Republic of Palau) 2. Meet the five-year waiting period requirement (LPRs only), unless exempt, and 3. Meet all other FNS eligibility requirements.

Note: Being a "qualified alien" under PRWORA (8 U.S.C. § 1641) does not, by itself, establish FNS eligibility. Eligibility is determined by the categories in Section 6(f) of the Food and Nutrition Act as amended by H.R. 1. Proceed to FNS 227.03 Certification of Non-Citizen Status 227.03 CERTIFICATION OF NON-CITIZEN STATUS A. The applicant or (FNS) Unit member must certify, under penalty of perjury, the non-citizen status of themselves and all individuals included in the (FNS) Unit. B. The head of household or (FNS) Unit member meets this requirement by: 1. Signing the application; and 2. Stating the non-citizen status of all new unit members when a change in household composition is reported. C. Members of the household who are not applying for FNS benefits for themselves do not have to disclose anything pertaining to their immigration status. Note: County agencies cannot request verification or attempt to verify citizenship or immigration status for household members not seeking FNS benefits.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

7 Section 227 Change #1-2026 February 1, 2026 Proceed to FNS 227.04 Determining Non-Citizen Status.

227.04 DETERMINING NON-CITIZEN STATUS Determining non-citizen status is a multi-step process. Follow the steps outlined in this policy section to determine non-citizen status and eligibility to participate in the FNS program. Terms used throughout the section: • Non-citizen: Individuals who are not citizens or nationals of the United States. • Ineligible non-citizen: Individuals who, by reason of their citizenship or immigration status, are not eligible to receive FNS benefits. This includes individuals with no lawful status, as well as individuals with lawful statuses that do not confer FNS eligibility under Section 6(f) of the Food and Nutrition Act. • Eligible non-citizen: Individuals who fall into one of the three eligible categories under H.R. 1 (LPR, Cuban/Haitian Entrant, or COFA Migrant) and meet all other eligibility requirements. See FNS 227.05 for the eligibility determination table. STEP 1: INELIGIBLE NON-CITIZENS Individuals in many types of immigration status, both lawful and unlawful, may be considered ineligible non-citizens who cannot participate in the FNS program. This category includes: • Individuals with no current lawful status • Individuals with lawful statuses that do not confer FNS eligibility, including: o Short-term visas (tourist, student, work visas) o Deferred Action for Childhood Arrivals (DACA) o Temporary Protected Status (TPS) o Refugees, asylees, parolees (unless adjusted to LPR) o Many other forms of lawful presence

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

8 Section 227 Change #1-2026 February 1, 2026 If the individual does not claim to have one of the statuses that makes them eligible for FNS benefits, or does not seek benefits for themselves, no further verification of the individual's immigration status is required

If the individual claims to be in an eligible immigration category AND seeks benefits for themselves: Proceed to Step 2 (FNS 227.05) to determine eligibility based on their claimed status.

227.05 STEP 2: DETERMINING NON-CITIZEN ELIGIBILITY H.R. 1 Framework: Under H.R. 1 (Section 10108), only three categories of noncitizens may participate in the FNS program: • Lawful Permanent Residents (LPRs) - subject to five-year waiting period determination (Step 3) • Cuban/Haitian Entrants - eligible immediately • COFA Migrants (Federated States of Micronesia, Marshall Islands, Palau) - eligible immediately Some individuals with lawful immigration status are eligible for FNS benefits, and others are not. The chart below lists categories of immigration status, types of documents that evidence that status, and the eligibility determination under H.R. 1. Individuals listed as "ELIGIBLE IMMEDIATELY" may participate if they meet all other eligibility requirements. LPRs must proceed to Step 3 (FNS 227.06) to determine if subject to the five-year waiting period or 40 quarter requirements. Key Change: Many categories previously eligible (refugees, asylees, parolees, etc.) are now NOT ELIGIBLE unless they have adjusted status to LPR. If adjusted to LPR, proceed to Step 3 to determine waiting period status. Individuals that are listed as “Not Eligible” are not eligible to participate in the FNS program. Do not proceed to Step 3. A. Use the USCIS or DHS document provided by the non-citizen to determine eligibility to participate in the FNS program.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

9 Section 227 Change #1-2026 February 1, 2026 B. This list is not exhaustive. Non-citizens may be living in the U.S. with the knowledge and permission of USCIS and may have in their possession other USCIS forms or letters that indicate status. Also, not all coding or wording that may appear on the forms listed are included.

ALIEN CLASSIFICATION VERIFICATION DOCUMENTS ELIGIBILITY (H.R. 1) Cuban/Haitian Entrant (CHE) Benefit eligibility designation under REAA § 501(e) - not an immigration status • I-94 stamped "Cuban/Haitian Entrant (Status Pending)" • I-94 or passport with § 212(d)(5) parole stamp (Cuban or Haitian national) • I-766 EAD coded C11 (parolee) with Cuban or Haitian nationality • I-766 EAD coded A04 (paroled as refugee) with Cuban or Haitian nationality • I-766 EAD coded C08 (pending asylum) - Cuban or Haitian national • I-797C receipt for I-589 (pending asylum) - Cuban or Haitian national • I-862 Notice to Appear (removal proceedings) - Cuban or Haitian national not subject to final removal order • I-220A Order of Release on Recognizance - Cuban or Haitian national • I-551 codes CU6, CU7, CH6, or HB6 (NOTE: Does not conclusively establish CHE - request SAVE CHE verification) ELIGIBLE IMMEDIATELY CHE is a benefit eligibility designation, not an immigration status. No five-year waiting period required. Paroled Cubans/Haitians may remain CHE even after obtaining another status. Must request SAVE verification using CHE-specific button to confirm. I-220B Order of Supervision does NOT establish CHE. Compact of Free Association (COFA) Migrants Citizens of Federated States of Micronesia (FSM), Republic of the Marshall Islands (RMI), or Republic of Palau • FSM/RMI/Palau passport with admission stamp: CFA/FSM, CFA/MIS (or CFA/RMI for older stamps), or CFA/PAL • I-94 showing D/S (duration of status) admission under COFA • I-766 EAD coded 274a.12(a)(8) or A08 (free of charge to COFA citizens) • SAVE verification confirming COFA status ELIGIBLE IMMEDIATELY No five-year waiting period required. Use SAVE to verify COFA status.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

10 Section 227 Change #1-2026 February 1, 2026 Lawful Permanent Resident (LPR) "Green card" holder • I-551 ("Green Card") or earlier versions (I151, AR-2, AR-3) • Reentry permit (I-327) • Foreign passport with I-551 stamp • I-90 receipt for replacement LPR card • Memorandum of Creation of LPR (I- 181) with approval stamp • I-94 with stamp for lawful permanent residence • Order from INS/DHS, immigration judge, BIA, or federal court granting adjustment MAY BE ELIGIBLE IMMEDIATELY OR MAY BE SUBJECT TO 5-YEAR WAITING PERIOD PROCEED TO STEP 3 (FNS 227.06) Determine if subject to 5-year waiting period or 40 quarters requirement. Whether waiting period applies depends on how individual obtained LPR status. Certain American Indians Born Abroad Under INA § 289 or § 4(e) of Indian Self-Determination and Education Assistance Act • I-551 with code S13 • Canadian passport with unexpired I-551 stamp (S13) • Letter or tribal document certifying 50% American Indian blood plus Canadian birth certificate • Tribal membership document for federally recognized tribe • Contact tribal government if no membership document (DOJ Office of Tribal Justice: 202-514-8812) NOT ELIGIBLE UNLESS ADJUSTED STATUS TO LPR, THEN ELIGIBLE IMMEDIATELY See FNS 227.06 for eligibility after LPR adjustment. No five- year waiting period if adjusted to LPR.

ALIEN CLASSIFICATION VERIFICATION DOCUMENTS ELIGIBILITY (H.R. 1)

• American Indian Card (form I-872)

Amerasians Under § 584 of Foreign Operations Appropriations Act of 1988 • I-551 with code AM6, AM7, or AM8 • I-94 with code AM1, AM2, or AM3 (direct immigrant admission) • Unexpired I-551 stamp in passport NOT ELIGIBLE UNLESS ADJUSTED STATUS TO LPR, THEN ELIGIBLE IMMEDIATELY See FNS 227.06 for eligibility after LPR adjustment. No five-year waiting period if adjusted to LPR given prior Amerasian status. Asylee Granted asylum under INA § 208 • I-94 or passport stamped "asylee" or "§ 208" • Order granting asylum from INS/DHS, immigration judge, BIA, or federal court • I-688B or I-766 coded 274a.12(a)(5) or A5 • Refugee travel document (I-571) NOT ELIGIBLE UNLESS ADJUSTED STATUS TO LPR, THEN ELIGIBLE IMMEDIATELY See FNS 227.06 for eligibility after LPR adjustment. No five-year waiting period if adjusted to LPR given prior asylee status.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

11 Section 227 Change #1-2026 February 1, 2026 Refugee Admitted under INA § 207 • I-94 or passport stamped "refugee" or "§ 207" • I-688B or I-766 coded 274a.12(a)(3) or A3; or (a)(4) or A4 (paroled as refugee) • Refugee travel document (I- 571) NOT ELIGIBLE UNLESS ADJUSTED STATUS TO LPR, THEN ELIGIBLE IMMEDIATELY See FNS 227.06 for eligibility after LPR adjustment. No five-year waiting period if adjusted to LPR given prior refugee status. Withholding of Deportation/Removal (Granted) Under INA § 243(h) or § 241(b)(3) • Court order showing deportation withheld under § 243(h) (pre-4/1/1997) or removal withheld under § 241(b)(3) • I-571 Refugee Travel Document • I-766 or I-688B coded 274a.12(a)(10) or A10 • Receipt for Form EOIR-40, EOIR- 42, or I881 NOT ELIGIBLE UNLESS ADJUSTED STATUS TO LPR, THEN ELIGIBLE IMMEDIATELY See FNS 227.06 for eligibility after LPR adjustment. No five-year waiting period if adjusted to LPR given prior status. Iraqi or Afghan Special Immigrant (SIV) • Iraqi or Afghan passport with immigrant visa stamp noting IV admission • I-94 with code SI1, SI2, SI3 or SQ1, SQ2, SQ3 • I-551 with code SI6, SI7, SQ6, or SQ7 (LPR adjustment) • I-551 showing Iraqi or Afghan nationality with SIV notation NOT ELIGIBLE UNLESS ADJUSTED STATUS TO LPR, THEN ELIGIBLE IMMEDIATELY See FNS 227.06 for eligibility after LPR adjustment. No five-year waiting period if adjusted to LPR given prior SIV status. Hmong or Highland Laotian And spouses, surviving • Contact NCDHHS Help Desk if LPR

NOT ELIGIBLE UNLESS ADJUSTED STATUS TO LPR, THEN ELIGIBLE

ALIEN CLASSIFICATION VERIFICATION DOCUMENTS ELIGIBILITY (H.R. 1) spouses, unmarried dependent children. Must have assisted U.S. during Vietnam era (8/5/19645/7/1975).

IMMEDIATELY See FNS 227.06 for eligibility after LPR adjustment. No five-year waiting period if adjusted to LPR given prior status.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

12 Section 227 Change #1-2026 February 1, 2026 Trafficking Survivors • HHS ORR Certification • ORR eligibility letter (if under 18) • HHS Trafficking Verification Line: 866-4015510 • I-914 (T status application) • I-797 approval for "CP" (continued presence) • I-94 or passport stamped T-1, T-2, T-3, T4, or T-5 • I-766 EAD coded 274a.12(a)(16) or A16 • I-551 with code T16, T26, T36, T46, or T56 (T visa holders adjusted to LPR) NOT ELIGIBLE UNLESS ADJUSTED STATUS TO LPR, THEN ELIGIBLE IMMEDIATELY See FNS 227.06 for eligibility after LPR adjustment. No five-year waiting period if adjusted to LPR given prior status. Certain Afghan Nationals Granted Parole Between July 31, 2021, and September 30, 2023 • I-94 indicating parole with dates within specified period • Afghan passport with parole documentation NOT ELIGIBLE UNLESS ADJUSTED STATUS TO LPR, THEN ELIGIBLE IMMEDIATELY See FNS 227.06 for eligibility after LPR adjustment. No five-year waiting period if adjusted to LPR given prior status. Certain Ukrainian Nationals Granted Parole Between February 24, 2022, and September 30, 2024 • I-94 indicating parole with dates within specified period • Ukrainian passport with parole documentation NOT ELIGIBLE UNLESS ADJUSTED STATUS TO LPR, THEN ELIGIBLE IMMEDIATELY See FNS 227.06 for eligibility after LPR adjustment. No five-year waiting period if adjusted to LPR given prior status. Battered Aliens (VAWA) Includes battered alien's child and parent of battered alien child • Receipt of I-130 visa petition under immediate relative (IR) or 2nd family preference (P-2) • Form I-360 (VAWA self-petition) • I-797 Notice of Action for pending I- 130, I- 360, or prima facie case • I-688B or I-766 coded C9, C10, C14, or C31 (approved VAWA self-petition) NOT ELIGIBLE UNLESS ADJUSTED STATUS TO LPR See FNS 227.06 for eligibility after LPR adjustment. Subject to five-year waiting period as LPR unless otherwise exempt. Conditional Entrant Admitted under INA § 203(a)(7) before 4/1/1980 • I-94 or document indicating "conditional entrant" or "§ 203(a)(7)" • I-688B or I-766 coded 274a.12(a)(3) or A3 NOT ELIGIBLE UNLESS ADJUSTED STATUS TO LPR See FNS 227.06 for eligibility after LPR adjustment. Subject to five-year waiting period as LPR unless otherwise exempt. Parolees • I-94 indicating "parole," "PIP," or NOT ELIGIBLE UNLESS

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

13 Section 227 Change #1-2026 February 1, 2026

ALIEN CLASSIFICATION VERIFICATION DOCUMENTS ELIGIBILITY (H.R. 1) Paroled for 1+ year under INA § 212(d)(5) "212(d)(5)" • I-688B or I-766 coded 274a.12(a)(4) or A4, or (c)(11) or C11 ADJUSTED STATUS TO LPR See FNS 227.06 for eligibility after LPR adjustment. Subject to five-year waiting period as LPR unless otherwise exempt. Applicants for Adjustment to Permanent Resident Status • Receipt for Form I-485 • I-797 ASC Appointment Notice for I-485 • I-688B or I-766 coded C9 or C9P NOT ELIGIBLE UNLESS ADJUSTED STATUS TO LPR Pending applicants are not eligible. See FNS 227.06 for eligibility after LPR adjustment. Subject to five-year waiting period as LPR unless otherwise exempt. Applicants for Asylum or Withholding Including CAT claims • I-797 Receipt for I-589 • I-688B or I-766 coded C8 NOT ELIGIBLE UNLESS ADJUSTED STATUS TO LPR Pending applicants are not eligible. If granted asylum and then LPR, see FNS 227.06. Deferred Action (DACA) Deferred Action for Childhood Arrivals and all forms of Deferred Action • I-797 Notice of Action showing deferred action approval • I-688B or I-766 coded C14 or C33 NOT ELIGIBLE UNLESS ADJUSTED STATUS TO LPR DACA recipients are not eligible for FNS. See FNS 227.06 for eligibility after LPR adjustment. Subject to five-year waiting period as LPR unless otherwise exempt. Temporary Protected Status (TPS) • I-766 or I-688B coded 274a.12(a)(12) or A12 • I-797A Approval Notice for TPS NOT ELIGIBLE UNLESS ADJUSTED STATUS TO LPR TPS holders are not eligible for FNS. See FNS 227.06 for eligibility after LPR adjustment. Subject to five-year waiting period as LPR unless otherwise exempt. Non-immigrant Visa Holders A, B, C, D, E, F, G, H, J, K, L, M, N, O, P, Q, R, S, V visas • I-94 Arrival/Departure Record • Foreign passport with non- immigrant visa • I-766 or I-688B coded C21 • I-797 approving extension/change of nonimmigrant status NOT ELIGIBLE UNLESS ADJUSTED STATUS TO LPR Non-immigrants are admitted temporarily and are not eligible for FNS. See FNS 227.06 for eligibility after LPR adjustment. Subject to five-year waiting period as LPR unless otherwise exempt.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

14 Section 227 Change #1-2026 February 1, 2026 Deferred Enforced Departure • I-766 or I-688B coded 274a.12(a)(11) or A11 • Approval Notice showing grant of DED NOT ELIGIBLE UNLESS ADJUSTED STATUS TO LPR See FNS 227.06 for eligibility after LPR adjustment. Subject to five-year waiting period ALIEN CLASSIFICATION VERIFICATION DOCUMENTS ELIGIBILITY (H.R. 1)

as LPR unless otherwise exempt. Family Unity Beneficiaries • I-688 Temporary Resident Card • I-688B or I-766 coded 274a.12(a)(14), (c)(20), (c)(22), or (c)(24) • I-698 Application to Adjust from Temporary to Permanent Residence NOT ELIGIBLE UNLESS ADJUSTED STATUS TO LPR See FNS 227.06 for eligibility after LPR adjustment. Subject to five-year waiting period as LPR unless otherwise exempt. Lawful Temporary Resident Under IRCA • I-688B or I-766 coded 274a.12(a)(2) or A2 NOT ELIGIBLE UNLESS ADJUSTED STATUS TO LPR See FNS 227.06 for eligibility after LPR adjustment. Subject to five-year waiting period as LPR unless otherwise exempt. Order of Supervision • Notice or Form showing release under order of supervision • I-688B or I-766 coded 274a.12(c)(18) or C18 NOT ELIGIBLE UNLESS ADJUSTED STATUS TO LPR See FNS 227.06 for eligibility after LPR adjustment. Subject to five-year waiting period as LPR unless otherwise exempt. Special Agricultural Workers (SAW) IRCA 1986 legalization program - historical category • I-688 Temporary Resident Card (historical) • I-766 or I-688B coded 274a.12(a)(2) or A2 (temporary resident) • Most SAW holders adjusted to LPR status long ago NOT ELIGIBLE UNLESS ADJUSTED STATUS TO LPR Historical category from 1986 IRCA legalization. See FNS 227.06 for eligibility after LPR adjustment. Subject to five-year waiting period as LPR unless otherwise exempt. Applicants for Cancellation of Removal or Suspension of Deportation • Receipt for EOIR-40, EOIR-42, or I-881 • I-256A (former suspension application) • I-688B or I-766 coded C10 NOT ELIGIBLE UNLESS ADJUSTED STATUS TO LPR Pending applicants are not eligible. See FNS 227.06 for eligibility after LPR adjustment. Subject to five-year waiting period as LPR unless otherwise exempt. Proceed to FNS 227.06 Step 3: Five-Year Waiting Period Determination

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

15 Section 227 Change #1-2026 February 1, 2026

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

16 Section 227 Change #1-2026 February 1, 2026 227.06 STEP 3: DETERMINING IF NON-CITIZEN IS SUBJECT TO WAITING PERIOD OR 40 QUARTERS This section determines whether an eligible non-citizen is subject to the PRWORA fiveyear waiting period (8 U.S.C. § 1613). H.R. 1 did NOT change the five-year waiting period rules or exemptions. LPRs must either: (1) be exempt from the waiting period, (2) have held qualified alien status for at least five years, or (3) have 40 qualifying quarters of work. A. Directly Eligible Categories (No Waiting Period Analysis Required) Key Point: The following categories are directly eligible under H.R. 1 Section 10108. They do not need to become LPRs and are not subject to any waiting period. Skip the rest of this section for these individuals. 1. Cuban/Haitian Entrants - Eligible immediately regardless of how long in the U.S. See FNS 227.05 for documentation. 2. COFA Migrants (citizens of Federated States of Micronesia, Marshall Islands, or Palau) – Eligible immediately. See FNS 227.05 for documentation. B. LPRs Exempt from Five-Year Waiting Period The following LPRs are exempt from the five-year waiting period based on their prior immigration status before adjusting to LPR. They may participate in FNS immediately upon obtaining LPR status, provided they meet all other eligibility requirements. A sample image of an I-551 is below.

December 9, 2025 USDA Clarification: Per USDA FNS Q&A Set 1, individuals who held certain humanitarian statuses before adjusting to LPR remain exempt from the 5-year waiting period under 8 U.S.C. § 1612(b)(2).

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

17 Section 227 Change #1-2026 February 1, 2026 I-551 Category Codes - LPRs Exempt from Waiting Period Prior Status Before LPR I-551 Category Codes Waiting Period? Former Refugees RE-6, RE-7, RE-8, RE-9, CU-6, CU- 7, IC-6, IC-7, R-86, M-83, Y-64 NO Former Asylees AS-6, AS-7, AS-8, GA-6, GA-7, GA8, SY-6, SY-7, SY-8 NO Former Deportation/Removal Withheld Per documentation NO Amerasians AM-1, AM-2, AM-3, AM-6, AM-7, AM-8 NO Former Iraqi/Afghan SIVs SI-1, SI-2, SI-3, SI-6, SI-7, SI-8, SI-9, SQ-1, SQ-2, SQ-3, SQ-6, SQ-7, SQ-8, SQ-9 NO Former Trafficking Survivors ST-6, ST-7, ST-8, ST-9, ST-0 NO Certain American Indians Born Abroad S13 NO Hmong/Highland Laotian Tribal Members (Per verification) NO Former Afghan Parolees (7/31/21-9/30/23) (Per documentation) NO

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

18 Section 227 Change #1-2026 February 1, 2026 Former Ukrainian Parolees (2/24/22-9/30/24) (Per documentation) NO

C. LPRs Subject to Five-Year Waiting Period The following LPRs are subject to the five-year waiting period unless they meet a personal exemption in Section D:

Prior Status Before LPR I-551 Codes Waiting Period? Former Conditional Entrants A7, § 203(a)(7) YES Former Battered Aliens (VAWA) (Various) YES Former Parolees (1+ year, not Afghan/Ukrainian) A4, C11, 212(d)(5) YES Prior Status Before LPR I-551 Codes Waiting Period? All Other LPRs (family-sponsored, employmentbased, diversity lottery, etc.) (Other codes) YES

D. Personal Exemptions from Waiting Period (Any LPR) Regardless of I-551 category code, LPRs in Section are exempt from the five- year waiting period if they meet any of the following: 1. Under Age 18: All eligible children under 18 are exempt from the waiting period. 2. Blind or Disabled: As defined in FNS 212.02. 3. 40 Qualifying Quarters of Work: Own quarters or credited from spouse/parent. See FNS 227.09 for calculation procedures. 4. U.S. Military Connection: Veteran, on active duty, or otherwise-eligible spouse or dependent child of veteran/active duty member. a. Active Duty: Full-time duty in Armed Forces (not National Guard duty). Verify with military ID card (DD Form 2). After 9/7/1980, minimum 2 years continuous active duty required. b. Veteran Spouse: Unremarried surviving spouse of deceased veteran if married 1+ year, OR married any period with child of marriage, OR child born before marriage.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

19 Section 227 Change #1-2026 February 1, 2026 c. Veteran Dependent Child: Legally adopted or biological dependent child under 18, OR full-time student under 22, OR child dependent on veteran at death, OR disabled child 18+ if disabled before 18th birthday. 5. Lawfully Residing on 8/22/1996 and Age 65+: Individual was lawfully residing in U.S. on August 22, 1996 AND is currently age 65 or older. 6. Entered Before 8/22/1996 with Continuous Presence: Individual entered U.S. before August 22, 1996 and has maintained continuous presence until obtaining qualified immigrant status. E. Calculating the Five-Year Waiting Period Critical Rule (Dec. 9, 2025 USDA Q&A): The five-year waiting period runs from the date the individual obtained "qualified alien" status under pre-H.R. 1 law—NOT from the date of LPR adjustment. Example: An individual was paroled into the U.S. on January 1, 2022, and adjusted to LPR on June 1, 2025. The 5-year period began on January 1, 2022 (parolee status date), not June 1, 2025 (LPR date). This individual will have completed the 5year waiting period on January 1, 2027. How to Verify "Resident Since" Date: • Check the "Resident Since" date on the face of the I-551 (green card). • This date reflects when the individual first obtained qualified alien status, NOT the LPR adjustment date. • If the individual held multiple qualified statuses, use the earliest qualifying date. • If unclear, request additional documentation (I-94 arrival record, asylum grant letter, etc.) to establish the earliest qualifying date. F. LPRs Who Have Completed the Waiting Period Any LPR subject to the five-year waiting period (Section C) who has held qualified alien status for at least five years is eligible to participate in FNS, provided they meet all other eligibility requirements. Alternatively, any LPR who has earned or can be credited with 40 qualifying quarters of work is eligible regardless of how long they have held LPR or qualified alien status. See FNS 227.09 for 40 quarters calculation procedures. Proceed to FNS 227.07 Step 4: Verification of Non-Citizen Status

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

20 Section 227 Change #1-2026 February 1, 2026 227.07 STEP 4: VERIFICATION OF NON-CITIZEN STATUS This section describes the verification requirements for non-citizen eligibility claims. Verification is required to confirm that the individual holds the immigration status they have claimed and, where applicable, the date that status was obtained. Important: County agencies must verify non-citizen status through SAVE at initial application and every recertification to ensure ongoing eligibility under the revised categories. SAVE is now available at no cost. Do NOT delay, deny, reduce, or terminate benefits pending verification results if the individual has provided acceptable documentation. Each unit member who is a non-citizen and who is applying for FNS benefits for him or herself must provide original documentation of his non-citizen status. The law requires non-citizens applying for FNS to provide documentation of eligible immigration status as a condition of eligibility. This documentation must be verified electronically using the Systematic Alien Verification for Entitlements (SAVE) database. State agencies cannot use any other method of verification for non-citizen eligibility. A. Verification Overview Under H.R. 1, only three categories of non-citizens are eligible for FNS benefits: • Lawful Permanent Residents (LPRs) — subject to 5-year waiting period unless exempt (see FNS 227.06) • Cuban/Haitian Entrants (CHE) — eligible immediately • COFA Migrants (citizens of FSM, RMI, or Palau) — eligible immediately The verification process confirms the individual's claimed status using documentation and the SAVE database. B. Acceptable Verification Documents Refer to FNS 227.05 for a list of acceptable documents by immigration category. Key document types include: Lawful Permanent Residents • I-551 (Permanent Resident Card / Green Card) • Unexpired I-551 stamp in foreign passport • I-797 Notice showing LPR status

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

21 Section 227 Change #1-2026 February 1, 2026 Cuban/Haitian Entrants • I-551 with category code CU6, CH6, or HB6 • I-94 with Cuban or Haitian nationality and parole stamp • I-797 Notice of Action indicating CHE status • SAVE response confirming CHE designation IMPORTANT: Cuban/Haitian Entrant (CHE) is a benefit eligibility designation, NOT an immigration status. An I-551 with category code CU6, CH6, or HB6 does NOT conclusively establish CHE status. SAVE verification is required. COFA Migrants • I-94 with admission class CFA/FSM, CFA/MIS, CFA/RMI, or CFA/PAL • I-766 (Employment Authorization Document) • I-797 Notice of Action • FSM, RMI, or Palau passport with U.S. admission stamp (I-94 required) Note: A foreign passport alone is NOT sufficient for SAVE verification. COFA migrants must present at least one U.S.-issued identifier. C. Reasonable Opportunity for Verification Documents 1. Request verification documents using the DSS-8650 Food and Nutrition Services (FNS) Notice of Information Needed and allow the FNS Unit at least ten calendar days to provide the documentation. Note: If the 10-day reasonable opportunity period provided does not lapse before the 30th day following the date of application, the County agency shall provide the household with benefits no later than 30 days following the date of application provided the household is otherwise eligible. 2. When the applicant provides insufficient documentation to verify his non- citizen status, further verification is required. a. Offer to contact USCIS when you are presented with an USCIS document which:

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

22 Section 227 Change #1-2026 February 1, 2026 i. Is not listed in policy; or ii. Is not considered sufficient proof of non-citizen status; or iii. Is illegible or incomplete. b. If the applicant gives consent to contact USCIS to verify the validity of documentation, contact the Charlotte USCIS Office at (800) 375-5283 to verify non-citizen status. USCIS will need: i. The applicant's full name and date of birth; ii. Alien registration number, if you have it; and iii. A description of the USCIS document. D. SAVE Database Verification The Systematic Alien Verification for Entitlements (SAVE) database is used to verify immigration status. NC FAST includes integrated SAVE functionality. 1. When to Use SAVE a. At application: When individual claims non-citizen status and seeks benefits; b. At recertification: Verify status at each recertification; c. At reported change: When individual reports change in immigration status. 2. SAVE Verification Levels a. Level 1 (Primary): Initial automated check; provides immediate response in most cases; b. Level 2 (Additional): DHS review when Level 1 cannot confirm; typically 3-5 business days; c. Level 3 (Third Level): Manual USCIS review with scanned documents; may take 10+ business days. Cuban/Haitian Entrant Verification: Cuban/Haitian Entrant status verification must be sent to SAVE as a Third Level (Level 3) verification request. Documentation of CHE status should be scanned and attached to the SAVE request.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

23 Section 227 Change #1-2026 February 1, 2026 E. NCFAST SAVE Procedures For detailed step-by-step instructions on using SAVE in NC FAST, refer to NCFASTHelp Job Aid: SAVE Automation Verification. Key policy requirements are summarized below. Required Information for SAVE Request Enter applicable information in the DHSID Details evidence. Required fields may include (not every field applies to all document types):

Field Description Alien Number Must start with letter A and be exactly 9 digits I-94 Number Exactly 11 characters; may include one letter in 10th position Country/Region of Origin Country of birth or origin Date of Entry Date applicant entered the United States Date Alien Status Granted If different from Date of Entry SEVIS ID (if applicable) Leading letter N plus 10 digits Passport Number 6-12 alphanumeric characters; requires Country of Issuance Visa Number Exactly 8 alphanumeric characters Card/Receipt Number 13 characters (3 alpha + 10 numeric) Naturalization Number 6-12 alphanumeric characters Citizenship Number 6-12 alphanumeric characters When Document Attachments Are Required Scan the document front and back and merge into a single PDF file. Attachments are required for: • All Level 3 (Third Level) SAVE verification requests • Cuban/Haitian Entrant status verification (always requires Level 3) • Suspected counterfeit or altered documents • When SAVE response indicates resubmission with documents required F. Benefits Pending Verification 1. If SAVE cannot immediately verify status: a. Proceed to Level 2 or Level 3 verification as indicated by SAVE response; b. Document the pending verification in case notes;

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

24 Section 227 Change #1-2026 February 1, 2026 c. Issue benefits based on acceptable documentation provided; d. Monitor SAVE work queue for response (task created automatically); and, e. Take appropriate action when verification is received Policy: Do NOT delay, deny, reduce, or terminate benefits pending additional SAVE verification if the individual has provided acceptable documentation of their claimed status. If otherwise eligible based on claimed documented status and all other eligibility requirements, authorize benefits based on the documentation provided while verification is pending. Document in NCFAST the date of the agency's transmission to USCIS. G. Inability to Verify 1. After complying with USDA’s requirements for verification of the validity of the non-citizen’s USCIS documents, if SAVE ultimately cannot verify eligible non-citizen status based on the documentation provided by the non-citizen applicant: a. Determine the individual as an ineligible non-citizen; b. Document in NCFAST the use of SAVE and the responses received from USCIS. c. Take appropriate action to deny, reduce, or terminate benefits through written notice a DSS-8551 or DSS-8553. d. Provide households the opportunity to request a fair hearing through the appropriate adverse action notice. H. Treatment of Income and Resources of Ineligible Non-Citizens. If the applicant fails to provide documentation of non-citizen status or if SAVE ultimately cannot verify eligibility, consider the non-citizen member an ineligible non-citizen. 1. Refer to FNS 390 Resources, FNS 350 Income, and FNS 340 Deductions for treatment of resources and income for an ineligible non- citizen. I. Documentation: 1. Document the source of verification used for each non-citizen member included in the unit and the date provided in NC FAST using the appropriate evidences. 2. Make a copy, if possible, of the document presented as verification of alien status and enter into NC FAST using the appropriate taxonomy. If verification with USCIS is pending, document the date of the request.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

25 Section 227 Change #1-2026 February 1, 2026 Policy Questions: When in doubt about a non-citizen eligibility determination, submit DSS-9000 with case number to: dss.policy.questions@dhhs.nc.gov. Before submitting, ensure SAVE has been requested and all documents have been uploaded to the case. J. Enumeration Requirements for Non-Citizens Non-citizens are subject to ALL FNS eligibility requirements, including enumeration (SSN). Verification of immigration status alone does not complete the eligibility determination. Key Rule: Do NOT include a non-citizen in the budget until enumeration is provided. Exception: Expedited Service households per FNS 425.

Review FNS 230 Enumeration for enumeration and SSN requirements.

227.08 STEP 5: SPONSORED NON-CITIZENS

Note: Sponsor deeming rules under 8 U.S.C. § 1631 are unchanged by H.R. 1. This section continues existing policy for calculating income and resources of sponsored non-citizens. Deeming is a process in which the income and resources of the sponsor are included in the non-citizen’s eligibility determination for SNAP benefits. Deeming applies only to eligible Lawful Permanent Residents (LPRs) whose sponsor has signed a legally binding affidavit of support (known as 213A affidavits, mostly I-864 forms) on or after Dec. 19, 1997. To determine eligibility and benefit level of a household that contains an eligible sponsored non-citizen, the income and resources of the sponsor and the sponsor’s spouse must be deemed. Refer to B. below for exemptions to deeming. Eligibility workers are required to determine if a non-citizen is subject to sponsor deeming and collect sponsor information during the certification process, making the interview an important time to ensure the County agency has all necessary information. Workers can check whether someone has a sponsor through the Systematic Alien Verification for Entitlements (SAVE) system. If verification is requested regarding whether a non-citizen has a sponsor, the individual’s eligibility for benefits cannot be delayed, denied, reduced, or terminated pending receipt of such verification.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

26 Section 227 Change #1-2026 February 1, 2026 Please note that Quality Control (QC) will review whether the amount of the allotment received by a sponsored non-citizen is correct independent of any action taken by the State agency to determine sponsor liability. Such actions are not reviewable for QC purposes. A. Definitions 1. Sponsored Non-citizen: A non-citizen admitted lawfully for permanent residence that is sponsored by an individual who has signed an affidavit of support. If a church or institution sponsors the non-citizen, the special provisions described below do not apply. 2. Sponsor: A person who executed an affidavit of support on or after December 19, 1997 on behalf of a non-citizen as a condition of the noncitizen's entry or admission to the U.S. Only individuals are considered sponsors. Organizations and institutions, such as churches, are not considered sponsors. 3. Deemed Income/Resources: The process of considering a sponsor's income and resources as available to the sponsored non-citizen for purposes of determining FNS eligibility and benefit amount. B. Exemptions from Sponsored Non-Citizen Requirements The following non-citizens are NOT subject to sponsor deeming requirements: 1. Same-Household Sponsor: A non-citizen who is participating in the Food and Nutrition Services Program as a member of his sponsor's unit. 2. Not Required to Have Sponsor: A non-citizen who is not required to have a sponsor under the Immigration and Nationality Act such as, but not limited to: a. A refugee admitted after March 31, 1980; b. A parolee admitted under Section 212(d)(5); c. One granted political asylum; d. A Cuban or Haitian Entrant; e. A conditional entrant granted status before April 1, 1980; f. Individuals who held the above statuses and have since obtained their Lawful Permanent Residence (LPR) status. 3. Vietnamese Amerasians: A non-citizen from Vietnam who enters the U.S. under the Foreign Operations Act. These non-citizens should be considered

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

27 Section 227 Change #1-2026 February 1, 2026 as though they are refugees under Section 207 of the Immigration and Nationality Act. 4. Indigent Non-Citizens: An indigent non-citizen that the county agency has determined is unable to obtain food and shelter, taking into account the non-citizen's own income, plus any cash, food, housing and other assistance provided by other individuals, including the sponsor (see Section C below for indigence determination procedures). 5. Battered Spouses or Children: Deeming does not apply during any 12month period if a non-citizen is a battered spouse, battered child or parent, or child of a battered person provided the battered non-citizen lives in a separate household from the person responsible for the battery. The exemption can be extended for additional 12-month periods if the noncitizen demonstrates that the battery is recognized by a court, administrative order, or by USCIS, and if the battery has a substantial connection to the need for benefits. 6. Children: Children Under age 18. 7. Pre-1997 Affidavits: Non-Citizens whose sponsors signed affidavits of support before December 19, 1997 (these prior affidavits of support were known as I-134s). C. Sponsor Deeming Requirements 1. If the Affidavit of Support (I-864) was signed on or after December 19, 1997, the total countable income and resources of a non-citizen sponsor and the sponsor's spouse (if living with the sponsor) is counted as unearned income and resources to the non-citizen. 2. The sponsored non-citizen must provide verification of the sponsor's income and resources to calculate the deemed amount. 3. If the Affidavit of Support was signed on or after December 19, 1997, the total income of the sponsor and spouse is credited to the non-citizen until: a. The sponsored non-citizen becomes a naturalized citizen; b. The sponsored non-citizen can be credited with 40 qualifying quarters (see FNS 227.09); c. The sponsored non-citizen loses LPR status and leaves the U.S.; d. The sponsored non-citizen obtains in removal proceedings a new grant of adjustment of status as relief from removal (in this case, if a new I864 form is required, the support obligation and deeming will apply to the new sponsor); OR,

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

28 Section 227 Change #1-2026 February 1, 2026 e. The sponsor dies. 4. Review FNS 315 Special Budgeting, § 315.02 Alien Sponsors for procedures for calculating countable deemed income from sponsors. D. Indigence Exemption Determination 1. Definition: "Unable to obtain food and shelter" means that the sum of the eligible sponsored non-citizen's household's own income, the cash contributions of the sponsor and others, and the value of any in-kind assistance the sponsor and others provide does not exceed 130% of the poverty income guideline for the non-citizen's household size. 2. Indigence Determination Process a. Pre-Determination Explanation: Prior to conducting an indigence determination, the County agency must explain the purpose of the determination to a non-citizen applying for FNS and provide the noncitizen the opportunity to refuse the indigence determination. The sponsored non-citizen must be informed of the consequences of refusing an indigence determination, i.e., the sponsor’s income and resources will be deemed to the non-citizen. i. If the sponsored non-citizen is exempt based on indigence, the names of the sponsors and sponsored non-citizen must be reported to USCIS. ii. If the sponsored non-citizen refuses the indigence determination, the sponsor’s income and resources will be deemed. b. Self-Declaration. A sponsored non-citizen may self-declare that he or she is not being supported by the sponsor. Verification from the sponsor of non-support is not needed. i. If the sponsored non-citizen self-declares nonsupport from the sponsor, all that can be estimated when determining indigence is the sponsored non-citizen household's income, the value of in-kind support, and any other income received from others. c. Compare to Gross Income Limit: Determine the amount of income (include both countable and non-countable income), cash contributions, and the value of in-kind support provided in the month of application. Use a reasonable method to assign a monetary value to in-kind assistance. Compare the total income, contributions, and value of inkind support, to the gross income limit for the non-citizen's household size. If the total is greater than the gross income limit, the non-citizen is not

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

29 Section 227 Change #1-2026 February 1, 2026 indigent. If the total is less than the gross income limit, the noncitizen is indigent. d. If Indigent: Process the case counting only the actual amount of cash support from the sponsor for a 12-month period beginning with the month of determination. Non-countable income is used in the indigent test only, not in the actual budget. e. Duration: Once a determination of indigence is made, the non-citizen remains indigent for 12 months from the date of eligibility, regardless of any secondary information from SAVE on the sponsor within the household's certification period. f. Renewal: Each indigence determination is renewable for additional 12month periods. 3. USCIS Reporting for Indigence Determinations. When an indigent determination is made, send written notice of the determination to USCIS at the address below. NCDHHS must be copied on the written notice. Include the name of the indigent sponsored non-citizen(s) and the name(s) of the sponsor(s). The written notice should include the reference “Determinations under 421(e) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.” Office of Policy and Strategy U.S. Citizenship and Immigration Services 20 Massachusetts Avenue, NW Washington DC, 20529 E. Verification and Documentation If the sponsored non-citizen is not indigent and not otherwise exempt from sponsor deeming, sponsor deeming rules apply and the sponsor’s total income and resources must be verified. The sponsored non-citizen unit is responsible for providing the verification or documentation of the sponsor's income and resources. Indigent Exemption: A non-citizen who is indigent is exempt from sponsor deeming and does not need to provide verification of the sponsor's income and resources. However, if the non-citizen receives cash contributions from the sponsor, then the amount of cash given must be verified. Count the actual amount of cash support provided from the sponsor for a 12-month period beginning on the date of eligibility determination. 1. Ineligibility Pending Verification: The sponsored non-citizen who is not indigent is ineligible to participate until verification of the sponsor’s income and resources are provided. However, determine the eligibility of any remaining unit members. Count the income and resources of the ineligible non-citizen using

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

30 Section 227 Change #1-2026 February 1, 2026 instructions in FNS § 390 Resources, and FNS § 350 Whose Income is Counted. 2. Required Verification Items: Verify the following items for sponsored noncitizens (in addition to normal verification requirements): a. The income and resources of the sponsor and the sponsor's spouse (if living with the sponsor); b. The provision of the Immigration and Nationality Act under which the noncitizen was admitted; c. The date of the non-citizen's entry or admission as a lawful permanent resident as established by USCIS; d. The non-citizen's date of birth, place of birth, and alien registration number. F. USCIS Contact Information 1. For questions about SAVE verification that cannot be resolved through standard channels: a. SAVE Help Desk: 1-877-469-2563 b. SAVE Program Website: https://www.uscis.gov/save c. Email: save.help@uscis.dhs.gov 227.09 CALCULATING 40 QUALIFYING QUARTERS

Note: The 40 qualifying quarters exemption under 8 U.S.C. § 1612(a)(2)(B) is unchanged by H.R. 1. LPRs who can be credited with 40 qualifying quarters of work are exempt from the 5-year waiting period and sponsor deeming, if applicable. This section provides guidelines for determining whether an individual meets the 40 qualifying quarters of coverage (QCs) exemption. The 40 quarters must be verified prior to participation, if the eligible non-citizen is not otherwise exempt from the waiting period. A. Definitions: Quarter -- A period of three calendar months ending March 31, June 30, September 30, or December 31. Covered Earnings -- Wages or self-employment income which requires payment of FICA (social security) taxes.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

31 Section 227 Change #1-2026 February 1, 2026 Non-covered Earnings -- Wages or self-employment income which do not require payment of FICA (social security) taxes. Quarter of Coverage (QC) -- Credit for a requisite amount of covered earnings assigned to a calendar quarter. Number Holder -- An individual who has a social security number assigned to him/her. QC History (QCH) -- A display of Quarters of Coverage (QC’s) by quarter and year. TPQY -- Third Party Query, the system which will be used to request QC Histories. Lag Quarters -- Current year quarters and preceding year quarters which may not appear in the QC history because the employer report has not been processed by SSA. This could be up to seven quarters depending on when a request for QC history is processed. CRITICAL CONCEPT: Quarters are based on ANNUAL EARNINGS, not actual quarters worked. The dates the person earned the income do not matter. An individual can earn all four QCs for a year in a single month if their earnings are high enough. B. Who Can Contribute Quarters The non-citizen's work and work by his/her parents and/or spouse (with certain exceptions) can be combined to attain the 40 qualifying quarters. These quarters may be used by more than one individual. For example, if a parent has 40 quarters, both children could use the full 40 quarters to qualify. 1. Number Holders Whose Quarters Can Be Credited a. The non-citizen individual — always b. Biological parents — only quarters worked prior to the non-citizen's 18th birthday (includes quarters earned before birth) c. Adoptive parents — only quarters worked prior to the non-citizen's 18th birthday (includes quarters earned before adoption) d. Stepparents — provided the step relationship still exists, only for quarters worked while the relationship was in existence and the non-citizen was under age 18 e. Current spouse — only for quarters worked during the spousal relationship. If a couple divorces, stop counting their quarters toward each other at next recertification, application, or reapplication.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

32 Section 227 Change #1-2026 February 1, 2026 f. Former spouse — only if the marriage ended by death, and only for quarters worked during the marriage

Important Restriction: None of the qualifying quarters earned after December 31, 1996 are counted if the wage earner received any federal means-tested public assistance benefit during the period for which the qualifying quarter is credited. Federal means-tested public benefits include: Work First assistance, Food and Nutrition Services, Medicaid, NC Health Choice, or SSI. C. Assessing QC Status: Obtain sufficient information to determine whether the 40 QC exception may apply. Always credit the non-citizen individual's own quarters first — this simplifies verification because many non-citizens will have sufficient quarters on their own record. 1. Step 1: Establish Relationships Obtain sufficient information to determine that family relationships exist, the date of birth of the non-citizen, and identifying information needed to access the SSA QC History System. 2. Step 2: Determine Feasibility a. Ask how many years the non-citizen and each relevant person have lived in the United States. Add the years together. If the total equals at least 10 years, proceed to Step 3. b. If the total is less than 10 years, ask whether the non-citizen, parents, or spouse ever commuted to work in the U.S. from another country before coming here to live, or worked for a U.S. company overseas and paid U.S. income taxes or FICA taxes. c. If the total is still less than 10 years after adding any commuter/overseas work, STOP. The applicant cannot meet the 40 QC requirement. 3. Step 3: Estimate Qualifying Quarters a. Four quarters in each year can be credited to the non-citizen from each relevant individual. b. Request TPQY verification if information shows the non-citizen may meet the 40 QC exception (with or without lag quarters) D. Making the Determination QC History Data can be accessed in NC FAST through OVS. 1. Review the non-citizen's TPQY response record.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

33 Section 227 Change #1-2026 February 1, 2026 Does the Non-citizen QC field equal 40? a. If yes, the applicant meets the exception requirement; b. If no, determine if there are other records from which the non-citizen can gain credit (parents, spouse). 2. If using parent/spouse records, access QC History for each contributing individual. When adding the QCs to the non-citizen's record, do they equal 40? a. If yes, check the QC History to determine if the quarters were earned for the correct time period; b. If so, the individual is eligible. c. If no, proceed to Step 3. 3. Review the total number of QCs with the non-citizen. Consider lag quarters (up to 7 quarters may not yet be posted). a. If the TPQY response shows 34 QC’s or more and the non-citizen individual believes that QC’s are missing, check the QC History. b. If the non-citizen individual believes the records are correct, he/she cannot meet the exception requirements. If a QC History is used or if wage records are provided from another source, the “Quarter of Coverage” chart from the Social Security Administration found at https://www.ssa.gov/oact/cola/QC.html will assist in determining whether the individual has the level of earnings to count as a Qualifying Quarter.

Quarter of Coverage - Earnings Required Source: Social Security Administration (ssa.gov/oact/cola/QC.html) Year Earnings Year Earnings Year Earnings 1978 $250 1995 $630 2012 $1,130 1979 $260 1996 $640 2013 $1,160 1980 $290 1997 $670 2014 $1,200 1981 $310 1998 $700 2015 $1,220 1982 $340 1999 $740 2016 $1,260 1983 $370 2000 $780 2017 $1,300 1984 $390 2001 $830 2018 $1,320 1985 $410 2002 $870 2019 $1,360 Year Earnings Year Earnings Year Earnings 1986 $440 2003 $890 2020 $1,410 1987 $460 2004 $900 2021 $1,470

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

34 Section 227 Change #1-2026 February 1, 2026 1988 $470 2005 $920 2022 $1,510 1989 $500 2006 $970 2023 $1,640 1990 $520 2007 $1,000 2024 $1,730 1991 $540 2008 $1,050 2025 $1,810 1992 $570 2009 $1,090 2026 $1,890 1993 $590 2010 $1,120

1994 $620 2011 $1,120

For 1978 and later, credits are based solely on the total yearly amount of earnings. The number of creditable QC’s are obtained by dividing the individual’s total earned income by the increment amount for the year. All types of earnings follow this rule. The amount of earnings needed to earn a credit increases and is different for each year. For 1978 through 2026, the amount of earnings needed for each credit is noted above. A current year quarter (must be a full quarter) may be included in the 40 quarter computation. Use the current year amount as the divisor to determine the number of quarters available. There is a limit of four quarters per year. 4. If there is a discrepancy between the assessment estimate and TPQY results, work with the non-citizen to reconcile. Common issues include: a. Lag quarters not yet posted to SSA records b. Non-covered employment (no FICA taxes paid) c. Quarters earned before certain dates not creditable to children d. Quarters earned while receiving means-tested benefits after 12/31/1996 E. Reconciliation: 1. Lag Quarters When the non-citizen individual or other FNS Unit member does not agree with the response provided by the TPQY and the problem is missing quarters in the current year, accept a current employer prepared wage statement as proof of earnings, and credit a quarter for each increment. Assume the earnings are covered employment if the wage statement shows FICA withholding. a. If the problem is quarters in the last taxable year and the query was requested prior to August 31st, check the QC History to determine if quarters are recorded. If quarters are missing, accept forms such as W2

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

35 Section 227 Change #1-2026 February 1, 2026 and/or W-2c, employer prepared wage statements, or an IRS copy of the individual’s tax return and credit Qualified Quarters to the applicant. Assume the earnings are covered if the proof submitted indicates FICA taxes were withheld. b. If the query was requested after August 31st, the earnings are not lag and should be determined following the instructions in 2. below. 2. Covered Employment Whenever the non-citizen individual or any other FSU member does not agree with the response provided by the TPQY, reconcile the discrepancy. When the individual believes that the work, he/she performed was in Covered Employment and the earnings do not fall within the lag period, SSA is responsible for investigating the discrepancy and correcting the record. a. Refer all covered employment cases to SSA as follows. i. If the individual indicates that he/she used more than one SSN or allowed others to use his/her SSN, the individual must contact the local Social Security Office. He must take a copy of the QC History and identifying information to the office with him. ii. If the individual indicates there are missing quarters, have the noncitizen individual, if he/she is the number holder of the SSN, complete the SSA-7008. Proof of earnings such as W-2’s, pay slip/stub, tax return, or statement from the employer should be provided. On top of the SSA-7008, write “Welfare Reform.” If the non- citizen individual is not the number holder, advise the non-citizen individual that the number holder must complete the SSA-7008 and provide proof of earnings as shown above. iii. All SSA-7008’s, along with the documentation, should be mailed to:

SSA, OCRO Post Office Box 17752 Baltimore, MD. 21235-0001

b. If the non-citizen individual has no documentation, he/she should contact their local Social Security Office to arrange an appointment. If the non-citizen states that the wages were earned but not reported, refer him/her to the Social Security Office for an investigation and attempt to credit these earnings. If Social Security must research files for determination of quarters, and the non-citizen individual provides a document from SSA indicating that the case is under review, the

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

36 Section 227 Change #1-2026 February 1, 2026 noncitizen may participate up to six months based on their statement of earnings for 40 quarters. 227.10 REPORTING REQUIREMENTS This section describes the requirements for reporting certain information to U.S. Citizenship and Immigration Services (USCIS) and the confidentiality protections that apply to applicant and participant information. A. What Must Be Reported to USCIS 1. State agencies are required to notify USCIS when: • The agency determines that a household member is ineligible to receive SNAP benefits because that member is not lawfully present in the United States; • The State agency determines a non-citizen is indigent and therefore exempt from sponsor deeming; or • The State agency obtains a final civil judgment against the sponsor. 2. Declining to provide documentation of immigration status is NOT a valid reason for referral. The applicant who declines to present documentation of immigration status will not receive benefits and therefore there is no reason to seek further verification of their non-citizen status. See 7 CFR 273.4(b)(2). • USDA guidance has affirmed that State agencies may report for unlawful presence only those non-citizens who have applied for SNAP benefits – not other household members, and not adults applying strictly for their children. 3. Specific Guidance for Compliance with Reporting Requirements. On September 28, 2000, an Interagency Notice was published in the Federal Register (65 FR 58301) that provided guidance for compliance with Section 404 of PRWORA. The Interagency Notice clarified that a government entity “knows” that a non-citizen is not lawfully present in the U.S. only when the entity’s finding or conclusion of unlawful presence is made as part of a formal determination by the entity, is subject to administrative review, and is supported by a determination of DHS or the Executive Office for Immigration Review, such as a Final Order of Deportation. See 7 CFR 273.4(b)(1). 4. Protecting Civil Rights. Conforming to the Interagency Notice allows State agencies to comply with Federal law while protecting the individual civil and privacy rights of the SNAP applicant, while also ensuring that USDA policies are consistently applied throughout the United States.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

37 Section 227 Change #1-2026 February 1, 2026 In reporting unlawful presence under Section 11(e)(15) of the Food and Nutrition Act of 2008, as amended, State agencies must also adhere to the Civil Rights compliance provisions of Section 11(c) of the Act. Reporting unlawful presence should never give rise to discrimination. Four major civil rights laws (the Age Discrimination Act of 1975, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, and Title VI of the Civil Rights Act of 1964) apply to all aspects of SNAP. SNAP is subject to these laws. Under no circumstances may a SNAP household member be reported as being unlawfully present based on race or national origin or on a suspicion that the member is present in the U.S. in an undocumented status because of the individual’s appearance or because the individual speaks limited English or is proficient in another language. B. Reporting Procedures Local Department of Social Services (DSS) offices must make a report to the Division of Child and Family Well-Being (DCFW) if it determines that there are non-citizens who are illegally present in the United States, only in the situation described above where the DSS office has received specific evidence from EOIR such as a Final Order of Deportation. It is only necessary to send a report to the office when non-citizens who are not legally present in the United States are identified in this manner. Such reports will be made by the director or designee of the county DSS. Upon receipt and review, the Deputy Director of Nutrition of NCDHHS DCFW will forward the relevant and policy-compliant reports to the USCIS. If a report is necessary, it must include the person’s name, address, the reason for the referral and any other identifying information, including supporting documentation, and be sent to: NC Department of Health and Human Services Division of Child and Family Well-Being 2416 Mail Service Center Raleigh, NC 27699-2416 ATTN: Deputy Director of Nutrition, Brian P. Hogan C. Confidentiality of Citizenship/Non-citizen Status All rules of confidentiality must be applied in regard to citizenship/noncitizen status. It is a breach of confidentiality to discuss the citizenship/noncitizen status of an individual with employers, landlords, etc.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

38 Section 227 Change #1-2026 February 1, 2026 227.11 BUDGETING FOR HOUSEHOLDS WITH INELIGIBLE NONCITIZENS A. H.R. 1 Did Not Change Budgeting Rules

1. H.R. 1 (Section 10108, effective July 4, 2025) amended which non-citizen categories are eligible for FNS. The budgeting rules for households with ineligible non-citizens were NOT affected and continue to follow 7 CFR 273.11(c)(3).

Key Point: H.R. 1 changed WHO is eligible/ineligible. It did NOT change HOW we budget for households with ineligible non-citizens.

B. Two Categories of Ineligible Non-Citizens for Budgeting Purposes

Federal regulations distinguish between two categories of ineligible non-citizens based on when the non-citizen became ineligible — before or after the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of August 22, 1996.

1. Pre-PRWORA Ineligible Non-Citizens

Regulatory Authority: 7 CFR 273.11(c)(3)(i)

Who: Non-citizens who were ineligible BEFORE PRWORA

Examples: Visitors, tourists, diplomats, students, undocumented non-citizens

State Options: States may choose to: 1. Prorate income and deductions; 2. Apply all income for gross income test for eligibility determinations, then prorate income and deductions for allotment calculations; OR, 3. Count ALL income and deductions

NC’s Pre-H.R. 1 Election: Option 2 for Pre-PRWORA Ineligible Non-Citizens – All income for gross income test for eligibility determination, then prorate income and deductions for allotment calculations.

2. Post-PRWORA Ineligible Non-Citizens

Regulatory Authority: 7 CFR 273.11(c)(3)(ii)

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

39 Section 227 Change #1-2026 February 1, 2026

Who: Non-citizens made ineligible BY PRWORA (August 22, 1996 and after)

Examples: LPRs in the 5-year waiting period, parolees, refugees, asylees, and other categories of non-citizens that were previously identified “qualified” as non-citizens.

State Options: States may choose to: 1. Prorate income and deductions 4. Count NONE of income but cap allotment at lower amount

NC’s Pre-H.R. 1 Election: Option 1 — Proration of income for both eligibility and allotment calculations for Post-PRWORA ineligible non-citizens.

C. Why This Distinction Continues to Matter Post-H.R. 1

1. For pre-PRWORA ineligibles: NC uses Option 2 — Apply full income of ineligible non-citizen to household’s gross income test first. If household passes gross income test, then prorate income for net income and benefit calculation.

Under FNS 350.01 pre-PRWORA ineligible non-citizens are referred to as Non-Qualified Ineligible Aliens.

2. For post-PRWORA ineligibles: NC uses Option 1 — Prorate income for all purposes (gross income test, expedited screening, and benefit calculation).

Under FNS 350.01 post-PRWORA ineligible non-citizens are referred to as Qualified Ineligible Aliens.

3. Workers and NCFAST must continue to determine whether the ineligible noncitizen is a pre-PRWORA ineligible non-citizen or post-PRWORA qualified ineligible non-citizen for budgeting purposes, then apply the correct budgeting method.

Phase 2 Implementation (Deferred): Changes to income counting rules (FNS 350) and shelter deduction proration (FNS 340) for mixed-status households require additional NC FAST system updates and will be implemented in a subsequent phase. Until Phase 2 implementation, continue applying current FNS 350 and FNS 340 rules for mixed-status household budgeting.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 227 NON-CITIZEN REQUIREMENTS

40 Section 227 Change #1-2026 February 1, 2026 North Carolina intends to exercise its State discretion under 7 CFR 273.11(c)(3)(i) and 7 CFR 273.11(c)(3)(ii) to standardize income counting for all ineligible non-citizens by using prorated income for ALL purposes (gross income test, expedited screening, and benefit calculation). After systems changes can be completed, NC will adopt a uniform policy to standardize treatment of income across all ineligible non-citizens categories for the purposes of administrative simplification and error reduction.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 230 SOCIAL SECURITY ENUMERATION

FNS 230 Change #8-2021 July 21, 2021 FNS 230 SOCIAL SECURITY ENUMERATION Change #8-2021 July 21, 2021 230.01 SOCIAL SECURITY NUMBER (SSN) ENUMERATION REQUIREMENT Each household member participating or applying for participation in the Food and Nutrition Services (FNS) Program is required to provide enumeration. Do not include an individual in the FNS budget until enumeration is provided for each individual who does not have an SSN except as provided in Section 320, Expedited Service. 230.02

ENUMERATION When a SSN or verification of application of a SSN is provided for an individual, the individual is considered enumerated. A. An individual is enumerated on the date when one of the following occurs: 1. The FNS unit member provides the SSN verbally or in writing; or 2. The DSS-8174 Referral for SSN Application, is signed and dated by Social Security Administration. Date stamp the DSS-8174 when received from Social Security Administration; or 3. The receipt for application for a SSN is signed and dated by Social Security Administration and the receipt is date stamped when received in the agency; or 4. The household provides the Certificate of Live Birth, DHS-1201, or the mother’s copy of the birth certificate on which block 17 is checked “yes.” This means that the child has been enumerated at birth. B. Enumeration is required for each FNS unit member participating or applying for participation in the FNS program, unless good cause can be determined per FNS 230.06. 1. If a household member has more than one SSN, all numbers are required. 2. Once the individual is enumerated, the individual has until the next recertification to provide verification of the SSN. 230.03

SOCIAL SECURITY NUMBER (SSN) USAGE The SSN is used to: A. Prevent duplicate participation; and B. Verify Social Security (SSA) and Supplemental Security Income (SSI) benefits; and

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 230 SOCIAL SECURITY ENUMERATION

FNS 230 Change #8-2021 July 21, 2021 C. Determine accuracy of information given by the Food and Nutrition Services unit (FNSU); and D. Perform matches with the Department of Employment Services (DES), Social Security Administration (SSA), and the Internal Revenue Service (IRS) as required by the Income and Eligibility Verification System (IEVS); and E. Facilitate mass changes in federal benefits. Once the individual provides a SSN, the individual has until the next recertification to provide verification of the SSN. 230.04

TYPES AND VERIFICATION OF SSN A. Types of Social Security Cards and Numbers: The Social Security Administration issues three types of Social Security cards. All cards show the name and Social Security Number (SSN). • Cards and Numbers are issued to both U.S. Citizen and Non-citizens. • Non-citizen and lawful permanent residents’ cards may have work restrictions listed on the Social Security Card. Type 1 2 3 Issued to: • U.S. Citizens; and • People lawfully admitted to the United States on a permanent basis. Issued to: • People lawfully admitted to the United States on a temporary basis who have DHS authorization to work. Issued to: People from other countries who: • Are lawfully admitted to the United States without work authorization from DHS, but have a valid non-work reason for needing a SSN; or • Need a number because of a federal law requiring a SSN to get benefit or services. Shows the individual’s name and SSN and lets them work without restriction. Shows the individual’s name and SSN with the restriction, “VALID FOR WORK ONLY WITH DHS AUTHORIZATION” Shows the individual’s name and SSN with the restriction, “NOT VALID FOR EMPLOYMENT” To determine who is eligible to receive a SSN and the type refer to Social Security Administration at www.ssa.gov.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 230 SOCIAL SECURITY ENUMERATION

FNS 230 Change #8-2021 July 21, 2021

B. When to verify SSN: 1. Verify each SSN provided by the FNS unit at initial certification whenever possible. 2. If verification of a reported SSN is not completed at the time of initial certification, it must be completed at the time of or prior to the household's next recertification. a. Do not delay initial certification of an otherwise eligible household if verification of the SSN is not received. b. Certify the individual and obtain verification prior to the household's next recertification. 3. If verification is not received at next recertification or reapplication, do not deny case. a. Explore good cause for failure to provide verification. b. If good cause is not found disqualify the individual(s) that fail to provide verification. 4. Enter each verified SSN into North Carolina Families Accessing Services through Technology (NC FAST) under the Person page. Note: Once verified in NC FAST you do not need verification again at any subsequent changes, recertifications, or reapplications. C. Verify the SSN by one of the following methods: 1. View the social security card or any official document containing the SSN. ("Official Document" is any document which contains an SSN provided by an organization or source which has verified the number for its purposes, such as a Social Security Award Letter.); NOTE: A driver’s license, pay stub, school ID, or metal card where the recipient provided the SSN is not an "Official Document.” There is no proof that the SSN on such documents was verified. 2. Bendex, SDX, or SOLQ;SSN which appears on an Enumeration Data Sheet; 3. SSN which has been verified by Work First Family Assistance (WFFA) or Medicaid Units; 4. SSN which has been automatically added to the NC FAST case record.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 230 SOCIAL SECURITY ENUMERATION

FNS 230 Change #8-2021 July 21, 2021

230.05

CHILDREN ENUMERATED AT BIRTH When the FNS unit states that a child was enumerated at birth: A. Request the Certificate of Live Birth, DHS1201, mother's copy of the birth certificate, or other reasonable verification that proves the child was enumerated at birth. B. Do not include the child in the FNS unit until verification of enumeration has been provided. C. Advise the household to report the SSN of the newborn when received but no later than six months following the date of the child’s birth or at the next scheduled recertification, whichever is later. D. Determine if good cause exists when the newborn's SSN is not received by the next recertification or within six months after the child’s date of birth, whichever is later. E. If no good cause exists for failure to provide the SSN by the next recertification or within six months after the child’s date of birth, whichever is later, disqualify the newborn for failure to enumerate. 230.06

GOOD CAUSE FOR FAILURE TO ENUMERATE Determining Good Cause A. To determine if good cause exists for failure to comply with the enumeration requirement, consider information from the household, Social Security Administration, and any other source. Using prudent judgement determine good cause for each FNS unit member that failed to comply. B. Documentary evidence or collateral information that the household has applied for the number or made every effort to supply the necessary information to complete the application is considered good cause. Good cause does not include delays due to illness, lack of transportation, or temporary absence. C. If the household member applying for a SSN has been unable to obtain the documents required by Social Security Administration, such as a birth certificate, offer to assist the individual in obtaining these documents. D. If the household member can show good cause why an application for a SSN has not been completed, allow that member to participate for one month in addition to the month of application. Determine good cause monthly for each member who failed to comply; otherwise, the member may not continue to participate.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 230 SOCIAL SECURITY ENUMERATION

FNS 230 Change #8-2021 July 21, 2021 230.07 PROCEDURES FOR REFERRING AN INDIVIDUAL TO THE SOCIAL SECURITY OFFICE A. Do not call or write the local Social Security Office to verify that an individual has applied for a SSN. This is not acceptable verification of enumeration B. Complete the DSS 8174, Referral for SSN Application, for each individual for whom a SSN is needed. C. Instruct the individual to carry the DSS 8174 and necessary documentation to the local Social Security Office. D. When completing documents to be sent to SSA, please note the following. 1. If the county department owns the documents proving identity and age, note on the DSS-8174 the documents are owned by the county. The local Social Security Office returns these documents to the county. If the individual owns the documents, note this on the DSS-8174 and the local Social Security Office returns these documents to the individual. If ownership is not documented on the DSS-8174, the local Social Security Office returns the documents to the applicant. 2. Explain to the individual the types of documentation that must be provided to the local Social Security Office to complete the application for a SSN, such as a birth certificate, driver’s license, draft card, etc. If necessary, assist him in obtaining needed documentation. 3. Explain to the individual that if a parent applies for his child’s SSN at the local Social Security Office, the parent must provide proof of identity. 4. If the county completes and sends the necessary forms to the local Social Security Office, the county should attach any certified documents proving identity and age to the forms sent. a. If the individual owns the certified documents proving age and identity, have him sign the DSS-8173, Release for Enumeration. This releases the county from any liability if the documents are lost. If the individual refuses to sign the DSS-8173, document on the form his refusal and continue with the enumeration procedures. b. If the county owns the documents, do not have the applicant sign the DSS-8173 230.08 PROCEDURES WHEN AN INDIVIDUAL CANNOT GO TO THE LOCAL SOCIAL SECURITY OFFICE An individual who is not able to go the local Social Security Office to apply for a SSN may have a representative apply for him. If there is no representative for the individual, complete the DSS 8174, Referral for SSN Application and a SS-5,

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 230 SOCIAL SECURITY ENUMERATION

FNS 230 Change #8-2021 July 21, 2021 Application for a SSN (found on the SSA website): Submit both forms to the local Social Security Office accompanied by the appropriate documentation. A. Complete the SS-5 to the line that says, "Do Not Write Below This Line (For SSA Use Only)." Follow the instructions given on the SS-5 for completion of the form. Ensure that the individual signs the SS 5. B. Complete the DSS-8174 for each individual for whom a SSN is needed. Attach the DSS-8174 to the SS-5. C. Mail the DSS 8174, the SS 5, and the certified documents to the local Social Security Office. Retain a copy of the DSS-8174 in the case file. D. If the SS-5 is improperly completed, the local Social Security Office returns the DSS 8174, the SS-5, and the certified documents to the DSS office for correction. Within five workdays, return the corrected SS-5, DSS-8174, and the certified documents to the local Social Security Office. 230.09 PROCEDURES FOR AN INDIVIDUAL WHO WANTS TO MAIL THE SS-5 AND DOCUMENTS TO SSA If an individual wants to mail the application for a SSN to the local Social Security Office, complete the DSS-8174, Referral for SSN Application and attach it to a blank SS-5, Application for a SSN: The individual completes the SS-5 and mails both forms along with documents proving identity and age, if applicable, to the local Social Security Office. Consider using this method when the local Social Security Office is not easily accessible, or transportation is a problem for the individual. A. Complete the DSS-8174 for each individual for whom a SSN is needed. B. Attach the completed DSS-8174 to a blank SS-5. Explain what must be completed on the SS-5. Instruct the individual to sign the SS-5. Assist him in completing the SS-5, if necessary. C. Instruct the individual to mail the DSS 8174, the SS-5, and the documentation to the local Social Security Office.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 235 STUDENT OF HIGHER EDUCATION

1 Section 235 Change #6-2021 July 12, 2021 FNS 235 STUDENT OF HIGHER EDUCATION Change #X-2021 July 12, 2021

235.01 DETERMINING A STUDENT OF HIGHER EDUCATION A. An individual is defined as a student of higher education if they meet the following conditions: 1. Enrolled in an institution of higher education (235.02); and 2. Enrolled at least half time as defined by the institution of higher education. B. Individuals that do not meet both of these conditions are not considered students of higher education and the policy in FNS 235 Students of Higher Education does not apply. 235.02 INSTITUTION OF HIGHER EDUCATION An institution of higher education includes online and traditional classroom studies, those include but are not limited to the following: A. College or university that offers degree programs regardless of whether a high school diploma is required. B. Business, technical, trade, or vocational school that normally requires a high school diploma or equivalent for enrollment in the curriculum which normally requires high school graduation or an equivalency certificate to enroll. C. Students attending an institution under special circumstances are considered enrolled in an institution of higher education. Some institutions make exceptions for students who the institution feels can benefit from the program offered, even though the student has not graduated from high school. If courses offered provide college level credit or the credit is transferable to other degree programs, it is considered higher education. Note: These individuals must be enrolled in the institution of higher education at least half time. 235.03 ENROLLMENT IN INSTITUTION OF HIGHER EDUCATION A. Enrollment begins the first day of the school term at the institution of higher education. Enrollment status during vacations and recess is determined based on the student's status just prior to the school break.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 235 STUDENT OF HIGHER EDUCATION

2 Section 235 Change #6-2021 July 12, 2021 B. Enrollment ends when the student graduates, is suspended, expelled, drops out, or decides not to register for the next normal term (except summer school). 235.04 STUDENT OF HIGHER EDUCATION EXEMPTIONS An individual who is a student of higher education is ineligible to participate in the FNS Program unless the individual meets one of the exemptions listed in this section. A student of higher education is eligible and may be included in the Food and Nutrition Services (FNS) unit if any one of the following exemptions is met. A. Age 17 or younger or age 50 or older. NOTE: The age requirement for ongoing cases begins the month after the month of the 18th or 50th birthday. The age requirement for applications is determined by the individual’s age on the date of application. B. Physically or mentally unfit (as defined for work registration). C. Employed for either an average of 20 hours per week or a total of 80 hours per calendar month and paid for that employment. D. Self-employed for an average of 20 hours per week, or a total of 80 hours per calendar month. At a minimum, earnings must at least equal minimum wage multiplied by 20 hours per week or minimum wage multiplied by 80 hours per month. NOTE: You cannot round up the weekly average. However, consider the student to have met the 80 hours per month rule when the hours worked are greater than 79 hours. (i.e., 79 hours, 15 minutes; 79 hours, 30 minutes, etc.). E. Responsible for the care of a dependent FNS Unit member under the age of six (If there are two parents and two or more children under six, both parents can claim this exemption. If there is only one child in the home, then only one parent can claim this exemption.). F. Be a single parent enrolled in an institution of higher education on a full-time basis (as determined by the institution) and be responsible for the care of a dependent child under age 12. 1. This provision applies in those situations where only one natural, adoptive, or stepparent (regardless of marital status) is in the same food stamp household as the child.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 235 STUDENT OF HIGHER EDUCATION

3 Section 235 Change #6-2021 July 12, 2021 2. If the natural, adoptive, or stepparent does not live with the child, another full-time student in the same FNS Unit with the child may qualify for eligible student status under this provision if he or she has parental control over the child and is not living with his or her spouse. Parental control means the individual is responsible for the day-to-day decisions and care of the child. (Babysitting does not meet this definition.) G. Be responsible for the care of a dependent FNS Unit member who has reached the age of six and is under age 12 if adequate child care is not available to enable the student to attend class and work 20 hours each week (not averaged) or participate in a State or federally financed work-study program. In a two-parent household, both parents may claim the exemption if there are two or more children who meet this definition. H. Work First Family Assistance recipient. I. Assigned to or placed in an institution of higher education through: 1. A program under the Workforce Investment Act (WIOA); or NOTE: WIA Programs are operated under the auspices of local Workforce Development Boards. 2. The Food and Nutrition Services Employment and Training Program or a government sponsored employment and training program for low-income households equivalent to an employment and training component; or 3. A program under Section 236 of the Trade Act of 1974; or 4. Work First Employment Services; or 5. A training program under the North American Free Trade Agreement (NAFTA). Self-initiated placements during the period of time the student is enrolled in one of these employment and training programs shall be considered to be in compliance with the requirements of the employment and training program in which the person is enrolled provided that the program has a component for enrollment in an institution of higher education and that program accepts the placement. A student who voluntarily participates in one of these employment and training programs and is placed in an institution of higher education through or in compliance with the requirements of the program will also qualify for the exemption. J. Participating in an on-the-job training program.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 235 STUDENT OF HIGHER EDUCATION

4 Section 235 Change #6-2021 July 12, 2021 1. An on-the-job training program for Food and Nutrition Services purposes is one in which a participant is hired by a private or public employer and while engaged in productive work receiving training that provides knowledge or skills essential to the full and adequate performance of that job. 2. The student is considered to be participating in on-the-job training only during the period of time the person is being trained by the employer. During the period of time that the person is attending classes, he or she would have to meet one of the other eligible student criteria to be eligible for the program. EXAMPLE: A person is in a program which requires that he or she attend classes full-time at an education institution for ten weeks and, subsequently, be trained by an employer for an additional ten weeks. Only the latter ten-week period would be considered participation in an on-the- job training program for purposes of the student provision. During the ten- week period the person is only attending classes, he or she would be ineligible unless he or she meets one of the other eligible student criteria. K. Be participating in a State or federally financed work-study program during the regular school year. 1. The student must be approved for work-study at the time of application or will be added as a change when the work-study is approved; and 2. The work study must be approved for the school term; and 3. The student must be working to earn this exemption. 4. This exemption begins with the month the school term starts or the month the work-study is approved, whichever is later. The exemption continues until the end of the month in which the school term stops. 5. Do not continue this exemption if the student refuses a work-study assignment. 6. Do not continue this exemption between school terms when the break is more than a month unless the student participates in work-study during the break. 235.05 STUDENT OF HIGHER EDUCATION VERIFICATION A. Client statement is acceptable verification of student status for online and/or traditional classroom studies unless questionable.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 235 STUDENT OF HIGHER EDUCATION

5 Section 235 Change #6-2021 July 12, 2021 B. If questionable and verification is necessary, accept any document that reasonably establishes the individual’s student status. This includes but is not limited to: 1. Documentary evidence from the school. 2. Verbal contact with a school official. 3. Student verification form. Note: Do not require a student verification form unless enrollment information is questionable or to verify reported student income and expenses. C. Request missing verification using the DSS-8650 FNS Notice of Information Needed. Do not request a specific type of document, such as a student verification form, accept any verification that reasonably verifies necessary information.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS

FNS 240 WORK REGISTRATION

1 Section 240 Change #02-2025 December 1, 2025

FNS 240 WORK REGISTRATION Change #2-2025 December 01, 2025

240.00 WORK REGISTRATION REQUIREMENTS A. Food and Nutrition Services (FNS) unit members ages 16 through 59 are required to be registered for work unless exempt as defined in 240.03 below. B. Work registration occurs when: 1. The appropriate work registration evidence is entered in the North Carolina Families Accessing Services through Technology (NC FAST); and 2. The DSS-8640 Work Registration Responsibilities is completed and the original is provided to the FNS units. A copy is filed in the case record. Document the case file that the DSS-8640 was provided. 240.01 DSS-8640 WORK REGISTRATION RESPONSIBILITIES FORM REQUIREMENTS A. The DSS-8640 must be completed and given/mailed to the FNS unit at the time of interview or if no interview is conducted, it must be given/mailed at time of disposition in the following circumstances: 1. Application, reapplication, and recertifications when there are non-exempt individuals or individuals that may become non-exempt during the new certification period. 2. Change that results in loss of exemption status. a. If a FNS unit member loses an exemption because of a change in circumstances that is subject to the change reporting requirements, register the individual for work within ten calendar days of receipt of the reported change. b. If a FNS unit member loses the exemption because of a change in circumstances that is not subject to the change reporting requirements, react to the change per FNS 515.01 Reacting to Changes During the Certification Period and register the individual for work within 10 days of the receipt of change. EXAMPLE: An alcoholic or narcotics addict who stops his non- residential treatment and rehabilitation program; or EXAMPLE: An eligible student who stops attending school; or

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS

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2 Section 240 Change #02-2025 December 1, 2025

EXAMPLE: A 17 year old who turns 18. B. Multiple work registrants of a FNS unit may be given a single notice. C. The worker must explain to all applicant households which contain individuals age 16 through 59 that each non-exempt household member is required to comply with the following FNS work requirements: 1. Register for work at the time of application and every 12 months after initial registration; and 2. Participate in a FNS Employment and Training (E&T) program if assigned; and 3. Participate in a Workfare program if assigned; and 4. Do not voluntarily and without good cause quit a job of 30 or more hours a week or reduce work effort to less than 30 hours a week. D. No further action is required. 240.02 DEREGISTRATION FROM WORK REQUIREMENTS Deregister a FNS unit member when the individual meets an exemption from work registration requirements by: A. Sending a DSS-8640 to notify the FNS unit that the individual(s) are no longer required to register for work due to meeting an exemption. B. Update the work registration and any other appropriate evidences in NC FAST 240.03 EXEMPTIONS FROM WORK REQUIREMENTS FNS unit members in the following categories are exempt from work registration and the FNS work requirements. A. Age 1. Age 60 or older; 2. Younger than age 16; 3. Age 16 or 17 and not the head of household; 4. Age 16 or 17 head of household and in school at least half-time; 5. Age 16 or 17 head of household and in an employment or training program. B. Parent/Caretaker

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS

FNS 240 WORK REGISTRATION

3 Section 240 Change #02-2025 December 1, 2025

1. A parent or other FNS unit member who is responsible for providing the care of a child under age six. If both parents are in the home, only one can claim this exemption, regardless of the number of children that live in the home. If the child has his sixth birthday within the certification period, register the individual responsible for the care of the child at the next recertification, unless otherwise exempt. 2. A parent responsible for a child over age 5 and under age 12 is exempt when child care is not available to allow the parent to work or join a work study program. EXAMPLE: Mary works 25 hours a week for a convenience store. She works third shift. She has a child age 7. There are no child care providers in her area that offer services during the time she works. Mary meets the exemption and is exempt from work registration requirements. 3. The child does not have to be a member of the FNS unit. The child does not have to live in the same residence as the FNS unit. Do not apply the exemption if the child resides in another household and that household provides the care. 4. Accept the FNS unit’s statement as verification regarding who cares for the child on a daily basis. C. Unemployment Insurance Benefits (UIB) A FNS unit member who has applied for or is receiving UIB. If the UIB is denied or the ongoing case is terminated because a FNS unit member fails to comply with the Department of Employment Services (DES) job search requirements, disqualify the member if he/she is not exempt from work requirements for any reason other than UIB or Work First. If, during the disqualification for failure to comply with DES, the individual becomes subject to and complies with the UIB requirement (thus meeting the FNS exemption criteria), or becomes exempt from work requirements for any reason other than UIB or WFFA, treat this as a change in situation. Refer to the approriate section for changes during the certification period. Also allow this exemption for individuals who are in UIB appeal status awaiting a final determination. NOTE: Do not allow an exemption for an individual participating in Workfare who has applied for or is receiving UIB. NOTE: If a disqualified FNS unit member does not comply with UIB the disqualification continues unless the FNS unit member meets a work

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS

FNS 240 WORK REGISTRATION

4 Section 240 Change #02-2025 December 1, 2025

registration exemption for reasons other than application or receipt of UIB or WFFA. D. Physically or Mentally Unfit for Employment Allow this exemption for any mentally or physically disabled individual, including FNS unit members who receive Veteran’s Administration disability classified as unemployable but not 100 percent service or non-service connected. This code does not allow a medical deduction or an uncapped shelter deduction. A woman who is obviously pregnant is not necessarily unfit for employment or disabled. A doctor’s statement of a temporary disability is required. NOTE: Verify the disability if the person does not receive a disability payment. A statement from a physician, nurse, nurse practitioner, designated representative at a doctor’s office, or other medical personnel deemed appropriate, or a licensed or certified psychologist is required. The DSS-8655 Report of Medical Examination may be used to obtain verification of a mental or physical disability. E. Disabled Specified Person A FNS unit member is automatically exempt if he meets the definition of a disabled specified person. This code allows uncapped shelter deductions and medical deductions. F. Employed Exempt a FNS unit member who works an average of 30 hours weekly or receives weekly earnings equal to the federal minimum wage multiplied by 30 hours. Migrant and seasonal farm workers under contract or similar agreement with an employer or crew chief to begin employment within 30 days meet this requirement. EXAMPLE: A FNS unit member babysits for 30 hours per week and earns $50 per week. The individual is exempt from the work requirements because he is working a minimum of 30 hours per week. NOTE: School employees (other than contracted employees) are not exempt during the summer or other school breaks. Register these individuals if not exempt for any other reason. G. Self-Employed Exempt an individual who: 1. Works an average of 30 hours weekly for E&T purposes; or

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS

FNS 240 WORK REGISTRATION

5 Section 240 Change #02-2025 December 1, 2025

2. Works a minimum of 30 hours weekly for Workfare purposes; or 3. Receives weekly gross earnings equal to the federal minimum wage multiplied by 30 hours (E&T and Workfare). 4. Compute hours on an annual basis for year-round self-employment. 5. For seasonal self-employment (i.e., farming), determine average or minimum weekly work hours for the period of self-employment. If the work meets the 30-hour requirement, the member is exempt even during non- work periods. If the work does not meet the 30-hour requirement, register the member during non-work periods. 6. Contracts out the day-to-day activities of the business and works 30 hours per week in the business. H. Narcotics Addict or Alcoholic Exempt a FNS unit member who participates regularly as a resident or nonresident in a drug or alcoholic treatment and rehabilitation program. (Alcoholics Anonymous is not an acceptable plan.) Verify participation (treatment plan) through the organization or institution operating the program. I. Student Exempt an individual who is 18 or older and is a student enrolled at least half- time (as defined by the institution or program in which he is enrolled) in any training program or school, including high school or institution of higher education, which is recognized by a federal, State, or local government. This includes individuals who may be enrolled at least half-time in an on-line curriculum, via the internet, in any training program or school, including high school or institution of higher education, which is recognized by a federal, state, or local government. Student status is maintained during normal periods of class attendance and over vacation and recess periods, such as summer or winter vacation, spring break, and intervals between semesters or quarters. Do not apply this exemption to: 1. A student who has graduated, dropped out, been expelled or suspended, or otherwise does not intend to return to school. 2. A FNS unit member enrolled in mail, self-study, or correspondence courses. 3. An E&T participant who has been placed in an education or training program by DES (GED, ABE, etc.), and is attending classes.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS

FNS 240 WORK REGISTRATION

6 Section 240 Change #02-2025 December 1, 2025

J. Caretaker of Incapacitated Person Exempt a FNS unit member who is responsible for the care of an incapacitated person. An incapacitated person is an individual who, due to a physical, cognitive, developmental, or behavioral condition, cannot independently perform basic activities of daily living or requires ongoing supervision or support to maintain personal safety or functioning. Self-attestation by the FNS unit member must be accepted for verification of the third-party’s incapacity, unless it is questionable. The self-attestation is only questionable if it is inconsistent with other verified information already known by the agency. The incapacitated person does not have to be a member of the FNS unit. The incapacitated person does not have to live in the same residence as the FNS unit. Do not apply the exemption if the incapacitated person resides in another household and that household provides the care. Accept the FNS unit’s statement about who cares for the incapacitated person. K. Jointly Processed SSI Household Exempt a FNS unit member who applies for both Supplemental Security Income and FNS benefits at the Social Security Administration Office. If approved for SSI, the FNS unit member remains exempt from work registration. If denied for SSI, determine if the FNS unit member must register for work at the next recertification. The individual is not exempt during the SSI appeal period, unless a doctor’s statement is provided. L. Refugee Household Exempt a refugee who is subject to work requirements imposed by a Refugee Resettlement Program (RRP) such as the Indochinese Refugee Assistance Program (IRAP). Contact the Economic and Family Services Section for verification or if you have questions concerning this exemption. M. Work First Family Assistance (WFFA) Employment Services Applicant or Participant Exempt individuals that are applying for or receiving WFFA who are subject to WFFA employment services requirements. Do not register these individuals. These individuals are subject to the Work First work requirements. If the Work First application is denied or the ongoing case is terminated, because a FNS unit member fails to comply with WFFA work requirements, disqualify the member if not exempt from work requirements for any reason other than UIB or WFFA. If, during the disqualification for failure to comply with WFFA, the individual becomes subject to and complies with the WFFA requirement (thus meeting the FNS exemption criteria), or becomes exempt

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS

FNS 240 WORK REGISTRATION

7 Section 240 Change #02-2025 December 1, 2025

from work requirements for any reason other than UIB or WFFA, treat this as a change in situation. EXAMPLES: FNS unit member disqualified due to failure to comply with WFFA work requirements reports the addition of her newborn in the household. The disqualification ends as the FNS unit member becomes exempt from work requirements as the caretaker of a child under 6 years of age. FNS unit member disqualified due to failure to comply with WFFA work requirements reports the receipt of UIB benefits. The disqualification continues as receipt of UIB is not a work requirement exemption that will end the disqualification. NOTE: If a disqualified FNS unit member does not comply with WFFA the disqualification continues unless the FNS unit member meets a work registration exemption for reasons other than application or receipt of UIB or WFFA. N. Parent Operating a Home School North Carolina law defines a home school as a non-public school in which the student receives academic instruction from his/her parent, legal guardian or a member of the household in which the student resides. For FNS purposes, this is considered employment. The individual is exempt from work requirements when the academic instruction is conducted at least 30 hours per week. Verification of the registration of a home school can be obtained through the NC Division of Non-Public Education at www.ncdnpe.org/hhh303a.htm. Ask for the name of the home school. If the home school is not listed on the website and other verification is not provided, no exemption exists. NOTE: If required verification is not received for an exemption and the individual does not meet another exemption, register the individual for work. 240.04 DISQUALIFICATION DUE TO FAILURE TO COMPLY WITH WORK REQUIREMENTS A. If a FNS unit member fails to comply with a work requirement, the individual is disqualified from the FNS Program. Disqualification applies to FNS unit members who: 1. Are subject to and voluntarily quit or reduce hours without good cause. No compliance activity (cure) is needed after the disqualification period ends. If an individual becomes exempt from work requirements prior to the end of the disqualification period, the disqualification ends. Add the individual back to the FNS case the month following the month the

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8 Section 240 Change #02-2025 December 1, 2025

disqualification ends either by serving the minimum disqualification period or becoming exempt from work requirements. If the FNS case is not active, the individual must reapply. 2. Fail to comply with Unemployment Insurance Benefits (UIB) and do not meet another work requirement exemption other than UIB or Work First Family Assistance (WFFA). The minimum disqualification must be served even if the individual complies with the required activity. If during the disqualification for failure to comply with Employment Security Commission (ESC) the individual becomes exempt from work requirements for reasons other than application or a receipt of UIB or WFFA, the disqualification ends and the minimum disqualification period does not have to be served. If otherwise eligible add the individual back to the FNS case the month following the month the disqualification ends either by serving the minimum disqualification period OR becoming exempt from work requirements. If the FNS case is not active, the individual must reapply. NOTE: If a disqualified FNS unit member does not comply with UIB the disqualification continues unless the FNS unit member meets a work registration exemption for reasons other than application or receipt of UIB or WFFA. 3. Fail to comply with WFFA Employment Services and do not meet another work registration exemption other than UIB or WFFA. The minimum disqualification period must be served even if the individual complies with the required activity. If during the disqualification for failure to comply with WFFA the individual becomes exempt from work registration for reasons other than application or receipt of UIB or WFFA, the disqualification ends and the minimum disqualification period does not have to be served. If otherwise eligible add the individual back to the FNS case the month following the month the disqualification ends either by serving the minimum disqualification period OR becoming exempt from work requirements. If the FNS case is not active, the individual must reapply. NOTE: If a disqualified FNS unit member does not comply with WFFA the disqualification continues unless the FNS unit member meets a work registration exemption for reasons other than application or receipt of UIB or WFFA. 4. Are currently disqualified due to non-compliance with E&T, Career Start, or Workfare program requirements prior to 07/01/09. The minimum disqualification period must be served even if the individual complies with the required activity. See FNS 250.02 Curing Non-

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS

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9 Section 240 Change #02-2025 December 1, 2025

Compliance with E&T Requirements and FNS 250.03 Curing a Workfare Disqualification. B. Determine the eligibility and benefit level of a FNS unit containing a disqualified member as follows. 1. Count the income and resources of the disqualified member. 2. Give full deductions (not prorated). 3. Do not include the disqualified member in the household size to determine the benefit level or to determine eligibility when comparing the total countable income to the income eligibility standards. C. The minimum disqualification periods are: 1. First Offense - One month 2. Second Offense - Three months 3. Third and Subsequent Offenses - Six months D. The caseworker must reference the NC FAST notes, sanctions, and disqualifications to ensure that the next level of disqualification is imposed should it be necessary to disqualify an individual, regardless of the time that has elapsed between the disqualifications. 240.05 FAIR HEARINGS FOR WORK REQUIREMENTS The FNS unit may request a fair hearing to appeal the denial, reduction, or termination of benefits due to the local DSS office’s determination of non-exempt status or the determination of non-compliance.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 245 EMPLOYMENT & TRAINING (E&T)

1 Section 245 Change #17-2021 September 20, 2021 FNS 245 EMPLOYMENT & TRAINING (E&T) Change #17-2021 SEPTEMBER 20, 2021

245.00 EMPLOYMENT AND TRAINING (E&T) WORK PROGRAM The purpose of the Food and Nutrition Services (FNS) Employment and Training (E&T) Program is to provide FNS recipients opportunities to gain skills, training or experience that will improve employment prospects and reduce the reliance on FNS benefits. Employment and Training counties are defined as counties that have an executed contract with the North Carolina Division of Social Services (DSS). Employment and Training Partners are agencies that contract directly with the NC DSS or Local Departments of Social Services to operate any portion of the E&T program. The term “partner” implies shared responsibilities in terms of the program’s operation and often with program financing. To participate in E&T, FNS recipients must meet the following requirements: • Be an eligible member of an active FNS unit • Be 16 years of age and older • Must have path to employment upon completion of program • A resident of a county that is operating an Employment and Training Program • Be an unemployed FNS recipients seeking employment • Be an underemployed FNS recipient that desire to gain better employment • FNS recipients who are exempt from Work Registration can volunteer if seeking employment Individuals who are ineligible to participate E&T Program are: • Work First Family Assistance (WFFA) applicants and recipients required to participate in employment services • Refugees receiving cash assistance while participating in a Refugee Resettlement Program (RRP)

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 245 EMPLOYMENT & TRAINING (E&T)

2 Section 245 Change #17-2021 September 20, 2021 245.01 REFERRING FNS UNIT MEMBER RECIPIENT TO FNS E&T PROGRAM A. Upon approval of FNS eligibility and the recipient’s request to be referred, county DSS staff will enter the E&T referral within 3 calendar days into NC FAST and send notification to the county E&T Coordinator, E&T Social Worker or contracted FNS E&T partner. Refer to NC FAST Job Aid Employment and Training (E&T) Referral Process. B. The following information must be included in the encrypted email or confidential notification: • Date of referral • Recipient’s name • FNS Product Delivery Number • Month and Year of current FNS certification period C. When the E&T Partner becomes aware of any changes (ex. Address and telephone number, new household members, changes in employment status, failure to comply with E&T partner), the E&T Partner has a responsibility to notify DSS of the change within 10 calendar days. DSS will be required to make updates to the NC FAST E&T Screen and document on the Income Support page in the Case Details tab in NC FAST. D. If DSS becomes aware of any changes that effect the participant’s FNS eligibility or E&T status, DSS is to make the Employment and Training Partner aware within 10 calendar days, make updates to the NC FAST E&T Screen and document in Case Notes. 245.02 EMPLOYMENT AND TRAINING COMPONENTS An E&T program offered by a local DSS agency must include one or more of the components listed in this section. Counties can select the component(s) they want to provide. The county’s selected services must be included in the county’s annual Plan of Action. The Plan of Action can be amended on a quarterly basis as needed. A. Job Search Training • A component that strives to enhance job readiness skills by providing instruction in job seeking techniques and increasing motivation and self- confidence. Component may consist of job skills assessments, job finding clubs, job placement services, or other direct training or support activities. Other activities may include resume writing workshops and learning to use

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 245 EMPLOYMENT & TRAINING (E&T)

3 Section 245 Change #17-2021 September 20, 2021 online job search tools. This component may combine job search activities with other training and support activities. B. Work Experience • Goal is to enable participants to move to regular employment. • Work assignments can be with private and/or for-profit companies. • Assignments may not replace the employment of a regularly employed individuals performing similar work for equal hours. • FNS household members volunteering in Work Experience must not be required to work more hours monthly than the total obtained by dividing the household’s monthly FNS allotment by minimum wage. • Depending on the amount of the household’s FNS allotment, mandatory E&T participants can be required to work up to 30 hours per week, and the individual’s total hours of participation in both work and non-work components is limited to 120 hours per month. • Work experience may include non-paid activities such as: o on-the-job training o pre-apprenticeship o apprenticeship placements • Viable work experience sites are those that have entered an agreement with the state DSS office C. Education Programs • Acceptable education activities are programs that establish a direct link to job readiness. Federal E&T funds cannot take the place of non-federal funds for existing educational services. Federal financial participation for operating education components may be authorized only for costs that exceed the normal cost of services provided to persons not participating in E&T. Programs include: o Adult Basic Education (ABE) o Basic Literacy o English as a Second Language (ESL)

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 245 EMPLOYMENT & TRAINING (E&T)

4 Section 245 Change #17-2021 September 20, 2021 o High School equivalency (GED) o Post-secondary education D. Vocational and Technical Training • Vocational courses and programs often result in a certificate of completion. This type of program focuses on teaching a specific trade with a hands-on approach, like construction, agriculture or health, as well as teaching general employment skills, such as typing. • Technical, community or junior colleges offer technical courses and programs, and these usually result in an associate degree, pre-bachelor's technical degree or certificate. Technical programs typically focus on studying books and manuals for computer-oriented training and careers. • Vocational and Technical Training examples: o Computer Specialist o Radiation Therapist o Dental Hygienist o Electrical and Electronics Repairman o Electrician o Plumber o HVAC Technician o Mason o Early Child Care Education o Medical Transcription o Paramedic -EMT o Pharmacy Technician E. Job Retention o Job retention component provides supportive services for up to 90 days to individuals who have secured employment. This component is meant to help achieve satisfactory performance, retain employment, or to increase

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 245 EMPLOYMENT & TRAINING (E&T)

5 Section 245 Change #17-2021 September 20, 2021 earnings over time. Job retention is only applicable to individuals who have previously participated in other E&T components and were receiving FNS benefits in the month of or one month prior to beginning job retention services. Job retention is a standalone component. A participant cannot be in job retention and another component simultaneously. Job retention services can be granted even if the individual is no longer a member of an active FNS case. There is no limit to the number of times an individual may receive job retention services, as long as the individual has re- engaged with E&T prior to obtaining new employment. Supportive services providing can include: o Case management o Life skill classes o Referrals to other services o Test fees o Licensing and bonding fees o Clothing required for job o Equipment or tools required for a job o Relocation expenses for employment purposes o Transportation assistance o Childcare F. Self-Employment Training • This is a component that improved the employability of participants by providing training in setting up and operating a small business or other self-employment venture. G. Pre-Apprenticeship /Apprenticeship • Pre-apprenticeship is a component designed to prepare individuals to enter and succeed in an Apprenticeship program. These programs promote a diverse and skilled workforce and prepare participants to meet the basic qualifications for entry into an apprenticeship, through: o An approved training curriculum based on industry standards,

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 245 EMPLOYMENT & TRAINING (E&T)

6 Section 245 Change #17-2021 September 20, 2021 o Educational and pre-vocational services, o Hands-on training in a simulated lab experience or through volunteer opportunities, and o Assistance in applying to Apprenticeship programs. H. Apprenticeship is a component that is an employer-driven, “learn-while-you- earn” program that combines on-the-job training, provided by an employer that hires the apprentice, with job-related instruction in curricula tied to the attainment of national skills standards. 245.03 PARTICIPANT REIMBURSEMENT REQUIREMENTS A. The FNS E&T Program requires that participants are reimbursed for actual expenses incurred (e.g. transportation, books and personal safety items). 1. Expenses reimbursed by the local DSS are paid to the participant upon confirmation of participants’ compliance with E&T program. This confirmation is received from the E&T Partner. Reimbursements are given in accordance with the county’s Employment and Training Plan of Action.

2. Participant expenses that are paid by the Employment and Training Partner are to be received by the participant within 30 calendar days of compliance. All payments should be in accordance with the reimbursement agreement with the local or State DSS as detailed in a Plan of Action. B. Reimbursement for Transportation and Other Expenses Reimburse participants for transportation and other expenses (i.e., books, uniforms, and personal safety items) incurred that are reasonably necessary and directly related to participation in the E&T Program as follows. 1. Actual expenses incurred up to the amount the county has agreed upon per month; or 2. A flat monthly fee, for expenses incurred, up to the amount the county has agreed upon; or 3. A predetermined prorated amount that is specified in the county E&T Plan of Action; or

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 245 EMPLOYMENT & TRAINING (E&T)

7 Section 245 Change #17-2021 September 20, 2021 4. Arrange or purchase transportation (i.e., provide bus passes) or pay vendors directly for any items necessary for participation up to whatever amount the county sets per month. The payments to FNS E&T participants may be made in advance for anticipated expenses in the coming month. 245.04 TERMINATION OF VOLUNTEER E&T STATUS PROCEDURES A. When any of the following changes occur, terminate the volunteer status of the FNS participants. Document the reason for the termination and send to E&T Partner within ten calendar days of the effective date of the change. Use the DSS-8640, Work Registration Responsibilities to notify the FNS participant that the individual is not an E&T work program participant. Reasons for termination of volunteer status are: 1. The volunteer moves from the Employment and Training county. 2. The volunteer no longer wishes to volunteer. 3. The volunteer does not comply with the E&T Partner. 4. The volunteer is terminated from FNS for reasons other than disqualification for failure to comply with work requirements or failure to reapply. Update NC FAST E&T Screen and document the Income Support page in the Case Details tab in NC FAST. B. A volunteer is automatically terminated from volunteer status when the FNS unit participant fails to apply for recertification within 30 days after the end of its certification period. 245.05 WORKERS COMPENSATION INSURANCE All FNS recipients who participate in FNS E&T Program component Work Experience are covered by a statewide worker’s compensation insurance policy. The policy is renewed annually and maintained by NC DSS. The coverage is provided by Key Risk Management Services. When a participant contacts the local E&T provider to report a claim: A. Call the toll-free telephone reporting service at 1-866-847-8872 to initiate the claims process. This should be done immediately but no later than five (5) business days from the date the county social services agency learns of the incident. The policy number is 992-444. The North Carolina Department of

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 245 EMPLOYMENT & TRAINING (E&T)

8 Section 245 Change #17-2021 September 20, 2021 Health and Human Services, Division of Social Services is the insured agency. B. Notify the Economic and Family Services Section/ Food and Nutrition Employment and Training at 919-527-6300 to report the incident and to provide the claim number. This should be done immediately but no later than five (5) business days from the date the county social services agency learns of the incident. C. Use the Report of Injuries Log, DSS-5322, to list all report of injuries sustained by participants engaged in Community Service or Work Experience activities. Submit the log quarterly to the Division at the attention of the FNS Employment and Training Program by the timelines identified on the log. It is not necessary to submit the log if there are not any injuries for the report period. D. In the event of worksite injury, the insurance carrier recommends the CompCareLXTM managed care network of pharmacies and medical providers. Please ensure all worksite sponsors of aware of the network providers and procedures related to worksite injuries and workers’ compensation.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 250 WORKFARE

1 Section 250 Change #17-2021 September 20, 2021 FNS 250 WORKFARE Change #17-2021 SEPTEMBER 20, 2021 250.00 WORKFARE PROGRAM The Workfare Program is an optional component of the Employment and Training (E&T) work program in which a county may choose to operate. Under this program, Food and Nutrition Services (FNS) members ages 18 through 59 may volunteer to perform work in a public service capacity. The primary goal of Workfare is to improve employability and enable individuals to move into regular employment. Counties considering participating in the Workfare Program should contact the Economic and Family Services Section at (919) 527-6300. NOTE: All FNS members ages 16 through 59 are required to be registered for work unless exempt from work requirements. See Section FNS 240 Work Requirements for work registration procedures, work requirements, and work disqualifications. 250.01 PROCEDURES FOR REFERRING FNS MEMBER VOLUNTEERS TO THE WORKFARE PROGRAM A. At application or recertification, explain that any FNS unit member ages 18 through 59 can volunteer for the Workfare Program. Inform the FNS unit that volunteers are placed in public service-like jobs which are expected to improve their employability for regular paying jobs. Also discuss reimbursement of participant expenses and the monthly reimbursement rate. Refer to Section 250.05. B. Complete all information requested in Section A of the DSS-8616 FNS Workfare Referral for each volunteer referred. 1. Indicate the number of hours he/she is willing to work each month. A volunteer Workfare participant may chose to participate more than 120 hours per month. 2. Enter the referral date in “Date of DSS Action” on the DSS-8616 and send to the Workfare unit within 10 calendar days of the volunteer’s request or within 10 calendar days of the date the FNS unit is certified. Do not send the DSS-8616 until the FNS unit is certified. 3. File the duplicate copy in the case record along with the copy of the DSS-8640 Work Registration Responsibilities (see Section 240, Work Requirements).

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 250 WORKFARE

2 Section 250 Change #17-2021 September 20, 2021 C. If information provided on the “new” or “renewal” referral form changes (such as address, telephone number, volunteer no longer a FNS member), use the DSS-8616 to notify the Workfare unit of the change within 10 calendar days. 250.02 RESPONSIBILITIES OF COUNTY DEPARTMENT OF SOCIAL SERVICES (DSS) AS WORKFARE OPERATING AGENCY The county DSS, as the Workfare operating agency, is responsible for establishing and monitoring job sites, as well as monitoring the volunteer participants. These duties are carried out by a worker(s) other than a FNS eligibility worker. For policy purposes, this worker is referred to as the Workfare worker. A. The Workfare worker arranges for jobs located only in public or private non-profit agencies. 1. Contractual agreements must be established between the county DSS and organizations providing jobs. These agreements include, but are not limited to, designation of the job slots available and responsibility for provision of benefits, if any are required, for Workfare participants. 2. A Workfare participant must receive the same benefits as a similar non-Workfare employee if the benefits are related to the specific job and not just to being employed by the firm. Such job-related benefits include, but are not limited to, uniforms, tools, and training specific to the job. Firm-related benefits (i. e. health and life insurance, annual and sick leave, and educational benefits) do not have to be provided for Workfare participants. 3. Workers compensation insurance must be provided for Workfare participants. Currently, all FNS applicants and recipients who participate in FNS work program activities are automatically covered by a Statewide workers compensation insurance policy. See Section 241.05 Workers Compensation Insurance, if a participant contacts you to report a Workfare job-related injury. B. The Workfare worker is responsible for interviewing, assessing, and assigning participants to appropriate job sites. 1. Each Workfare participant is notified where and when to report, whom to report, the number of hours to work, and provided with a brief description of job duties for the particular placement.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 250 WORKFARE

3 Section 250 Change #17-2021 September 20, 2021 2. A volunteer Workfare participant can not be required to work more than 8 hours per day without his/her consent and can work more than 120 hours per month if he/she desires. 3. A Workfare participant may be placed in job search prior to being placed in a Workfare assignment. The job search period can only follow initial household certification, not recertification, and can last up to 30 days. No other job search requirements can be imposed. C. The Workfare worker sends the DSS-8628 FNS Workfare Information Transmittal within 10 calendar days to notify the local DSS when: 1. A participant is placed in a Workfare job or obtains employment (section A); 2. Changes occur, such as address, telephone number, the Workfare participant moves out of the FNS unit, etc. (section B); 3. Termination of Workfare status is requested by the volunteer or Workfare worker (section C); 4. A disqualified individual complies or does not comply with a cure request (section E). 250.03 CURING A WORKFARE DISQUALIFICATION For currently disqualified individuals who were subject to FNS Workfare requirements prior to July 1, 2009, the minimum disqualification period must be served even if the individual complies with the required Workfare activity. If the individual becomes exempt from work requirements at any time since the non-compliance occurred, the disqualification ends and the minimum disqualification period does not have to be served. See Section 240.03 Exemptions from Work Requirements. The minimum disqualification periods are: • First violation – One month and until the individual complies. • Second violation – Three months and until the individual complies. • Third and subsequent violations – Six months and until the individual complies. NOTE: Disqualifications for voluntarily quitting a job of at least 30 hours per week and voluntarily reducing work hours below 30 hours per week are covered in FNS Section 255 Voluntary Quit and Voluntary Reduction. Non-compliance with the work

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 250 WORKFARE

4 Section 250 Change #17-2021 September 20, 2021 requirements for Unemployment Insurance Benefits (UIB) and Work First Family Assistance (WFFA) Employment Services are covered in FNS Section 240.04 Disqualification Due to Failure to Comply with Work Requirements. A. If a disqualified individual of an ongoing Workfare household wishes to comply with Workfare requirements at any time during the certification period: 1. Indicate that a cure is required on the DSS-8650, Notice of Information Needed to Complete Your Food and Nutrition Services (FNS). Check the “Other” block and document the Workfare requirement. Send the DSS-8650 and DSS-8640 to the disqualified individual. 2. Request a cure using the DSS-8628 checking the appropriate block for the type of cure. Forward the DSS-8628 to the Workfare worker within 10 calendar days of the individual’s request to cure. B. If the Workfare worker returns the DSS-8628 indicating the disqualified individual complied during the certification period, treat this as a change in situation. Refer to the appropriate FNS manual sections for changes during the certification period. 1. If the disqualified individual serves the minimum disqualification period and then complies, and all other eligibility requirements are met, add the individual back to the FNS case the month after the non-compliance is cured. 2. If the disqualified individual complies during the disqualification period and all other eligibility requirements are met, add the individual back to the FNS case the month after the minimum disqualification period is served. NOTE: If the Workfare worker indicates on the DSS-8628 that the individual wishes to continue participation as a volunteer, complete Section A of the DSS-8616 and send to the Workfare worker within 10 calendar days of adding the individual to the FNS benefits. Send a DSS-8640 to the volunteer. C. If a disqualified individual becomes exempt from work requirements during the certification period, the disqualification ends and the minimum disqualification period does not have to be served. See Section 240.03 Exemptions from Work Requirements.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 250 WORKFARE

5 Section 250 Change #17-2021 September 20, 2021 1. Treat as a change in situation. Refer to the appropriate FNS manual sections for changes during the certification period. 2. Reinstate the individual the next calendar month after the exemption occurs, as long as all other eligibility requirements are met. D. At reapplication or recertification, if a disqualified individual wishes to comply with Workfare requirements: 1. Indicate that a cure is required on the DSS-8650. Check the “Other” block and document the Workfare requirement. Send the DSS- 8640 to the disqualified individual. 2. Request a cure using the DSS-8628 checking the appropriate block for the type of cure. Forward the DSS-8628 to the Workfare worker within 10 calendar days of the individual’s request to cure. E. If the Workfare worker returns the DSS-8628 indicating the disqualified individual complied, and: 1. The disqualified individual served the minimum disqualification period prior to the end of the 30-day application processing timeframe, and all other eligibility requirements are met, authorize benefits from the original application date. 2. The disqualified individual did not serve the minimum disqualification period prior to the end of the 30-day application processing timeframe, and: a. The application/recertification is for the disqualified individual only, deny the case. b. The application/recertification is for at least one non-disqualified FNS member and all other elgibility requirements are met, approve the case but do not include the disqualified individual. 3. If the disqualified individual later serves the minimum disqualification period during the certification, treat this as a change in situation. Refer to the appropriate FNS manual sections for changes during the certification period. Add the individual back to the FNS case the month after the minimum disqualification period is served, as long as all other eligibility requirements are met. NOTE: If the Workfare worker indicates on the DSS-8628 that the individual wishes to continue participation as a volunteer, complete Section A of the DSS-8616 and send to the

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 250 WORKFARE

6 Section 250 Change #17-2021 September 20, 2021 Workfare worker within 10 calendar days of adding the individual to the FNS benefits. Send a DSS-8640 to the volunteer. F. If the Workfare worker does not return the DSS-8628 prior to the end of the application processing timeframe, and 1. The application/recertification is for the disqualified individual only, deny the case. 2. The application/recertification is for at least one non-disqualified FNS member and all other eligibility requirements are met, approve the case but do not include the disqualified individual. 3. If the Workfare worker later returns the DSS-8628 indicating the disqualified individual complied with Workfare requirements during the certification period, and a. The minimum disqualification period is served, or is later served during the certification, treat this as a change in situation. Refer to the appropriate FNS manual sections for changes during the certification period. b. Add the individual back to the FNS case the month after the minimum disqualification period is served, as long as all other eligibility requirements are met. NOTE: If the Workfare worker indicates on the DSS-8628 that the individual wishes to continue participation as a volunteer, complete Section A of the DSS-8616 and send to the Workfare worker within 10 calendar days of adding the individual to the FNS benefits. Send a DSS- 8640 to the volunteer. G. If the disqualified individual became exempt from work requirements prior to the date of application or becomes exempt from work requirements prior to the end of the application processing timeframe, the disqualification ends. See Section 240.03 Exemptions from Work Requirements. 1. The non-compliance does not have to be cured and the minimum disqualification period does not have to be served. 2. Authorize benefits from the original application date, if all other eligibility requirements are met.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 250 WORKFARE

7 Section 250 Change #17-2021 September 20, 2021 250.04 COUNTY ACTION WHEN A DISQUALIFIED INDIVIDUAL MOVES FROM AN EMPLOYMENT & TRAINING (E&T) COUNTY TO A WORKFARE COUNTY OR MOVES FROM A WORKFARE COUNTY TO AN E&T COUNTY, A COUNTY WITH NO DES CONTRACT, OR ANOTHER WORKFARE COUNTY

A. If an individual who is disqualified for failure to comply with E&T requirements moves to a Workfare county and applies for benefits, the individual remains disqualified until the minimum disqualification period (1, 3, or 6 months) is served. If he/she became exempt from work requirements at any time since the non-compliance occurred, the disqualification ends. If not,

1. Request a copy of the DSS-8642, Explanation of Disqualification, from the E&T county to determine the minimum dates of disqualification. See Section 250.03, Curing a Workfare Disqualification, concerning serving the minimum disqualification period.

2. If otherwise eligible, the individual can participate once the minimum disqualification period ends.

B. If an individual who is disqualified for failure to comply with Workfare requirements moves to an E&T county or a county with no DES contract and applies for benefits, the individual remains disqualified until the minimum disqualification period (1, 3, or 6 months) is served. If he/she became exempt from work requirements at any time since the non-compliance occurred, the disqualification ends. If not,

1. The new county must contact the Workfare county to request a copy of the DSS-8629, Explanation of FNS Workfare Non- Compliance, or DSS-8630, Non-Compliance with FNS Workfare, in order to determine the minimum dates of disqualification. See Section 250.03, Curing a Workfare Disqualification, concerning serving the minimum disqualification period.

2. If otherwise eligible, the person can participate after the minimum disqualification period ends.

C. If an individual who is disqualified for failure to comply with Workfare requirements moves from one Workfare county to another Workfare county and applies for benefits, the individual remains disqualified until compliance with Workfare requirements is met and the minimum disqualification period (1, 3, or 6 months) is served. If he/she became

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 250 WORKFARE

8 Section 250 Change #17-2021 September 20, 2021 exempt from work requirements at any time since the non-compliance occurred, the disqualification ends. If not,

1. The second county must contact the first county to request a copy of the DSS-8629, Explanation of FNS Workfare Non-Compliance, or DSS-8630, Non-Compliance with FNS Workfare, in order to determine the reason for non-compliance with Workfare requirements and the minimum dates of disqualification.

2. If otherwise eligible, the person can participate after the non- compliance is cured and the minimum disqualification period ends. Follow the procedures in Section 250.03, Curing a Workfare Disqualification.

NOTE: If the Workfare worker indicates on the DSS-8628 that the individual wishes to continue participation as a volunteer, complete Section A of the DSS-8616 and send to the Workfare worker within 10 calendar days of adding the individual to the FNS benefits. Send a DSS-8640 to the volunteer.

D. If an individual who is disqualified for failure to comply with Workfare requirements moves back to the original Workfare county and applies for benefits, the individual remains disqualified until compliance with Workfare requirements is met and the minimum disqualification period (1, 3, or 6 months) is served. If he/she became exempt from work requirements at any time since the non-compliance occurred, the disqualification ends. Follow the procedures in Section 250.03, Curing a Workfare Disqualification.

NOTE: If the Workfare worker indicates on the DSS-8628 that the individual wishes to continue participation as a volunteer, complete Section A of the DSS-8616 and send to the Workfare worker within 10 calendar days of adding the individual to the FNS benefits. Send a DSS-8640 to the volunteer.

250.05 PARTICIPANT REIMBURSEMENT REQUIREMENTS A. Provide volunteer applicants and recipients who participate in the Workfare Program with reimbursement for incurred expenses, subject to the limits outlined in this section. Expenses must be reimbursed whether or not there is an agreement in place between the local department of social services and the operating agency and/or other

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 250 WORKFARE

9 Section 250 Change #17-2021 September 20, 2021 agencies. Reimbursement is allowed for any time period the volunteer participated. Inform participants of the rate of reimbursement. B. Reimbursement for Transportation and Other Expenses Reimburse volunteer participants for transportation and other expenses incurred (i.e., books, uniforms, and personal safety items not provided by the job site) that are reasonably necessary and directly related to participation in the Workfare Program. Payments to FNS members can be made in advance for anticipated expenses in the coming month. Reimburse up to the amount the county has agreed upon per month, based on: 1. Actual expenses incurred; or 2. A flat monthly fee for expenses incurred; or 3. Arrange or purchase transportation (i.e., provide bus passes) or pay vendors directly for items necessary for participation. NOTE: Participant reimbursements are matched with 50% federal funds. Allow reimbursements for any time period the participant complied (i.e., attended assessment interview, but did not go to job site). 250.06 TERMINATION OF VOLUNTEER WORKFARE STATUS PROCEDURES A. When any of the following changes occur, terminate the volunteer status of the FNS member(s). Document the reason for termination in Section B of the DSS-8628 and send to the Workfare worker within 10 calendar days of the effective date of the change. Use the DSS-8640 to notify the FNS unit that the individual is not a Workfare participant at this time. Reasons for termination of volunteer status are: 1. The volunteer moves from the Workfare service area. 2. The volunteer no longer wishes to participate in the Workfare program. 3. The volunteer does not attend Workfare activities and there is no contact with the Workfare worker.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 250 WORKFARE

10 Section 250 Change #17-2021 September 20, 2021 4. The volunteer is terminated from FNS for reasons other than disqualification for failure to comply with work requirements or failure to reapply. B. A volunteer is automatically terminated from volunteer Workfare status when the FNS unit fails to apply for recertification within 30 days after the end of its certification period. 1. Report SLENU-033ET, Volunteer Work Registration Termination for Closed Cases, which lists alphabetically all volunteer work registrants with name, social security number, county FNS number, and work status. 2. The FNS office prints the Volunteer Work Registration Termination report from NCXPTR and sends a copy to the Workfare worker so that volunteers can be terminated from the Workfare Program. An individual DSS-8628 is not required. 250.07 COUNTY DSS WORKFARE REPORTING REQUIREMENTS TO STATE DIVISION OF SOCIAL SERVICES The county DSS must submit a quarterly report to the Division of Social Services by the 15th of the month following the end of the calendar quarter. The report must include: A. The number of volunteers: 1. Referred to Workfare each month of the report period. Include all referrals made during the quarter at the time of application, recertification, or change in situation, that resulted in referral for Workfare participation. 2. Newly assigned to Workfare jobs each month of the report period. 3. Participating in Workfare each month of the report period. This number must be equal to or greater than the number of individuals assigned to jobs each month of the report period. B. The total number of hours worked by volunteer participants each month of the report period. C. During each month of the report period, the number of: 1. Volunteer applicant and recipient Able Bodied Adults Without Dependents (ABAWDs) subject to the 3-month Food and Nutrition Services (FNS) time limit who participated in qualifying ABAWD Employment and Training (E&T) activities.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 250 WORKFARE

11 Section 250 Change #17-2021 September 20, 2021 NOTE: A qualifying ABAWD E&T activity maintains FNS eligibility for individuals subject to ABAWD time limits. Qualifying activities include participation in: a. Workfare b. Job search, during the first 30 days after initial certification, before assignment to a Workfare position. c. 20 hours or more each week in qualifying activities in a program under: i. Title I of the Workforce Investment Act of 1998 ii. Section 236 of the Trade Act of 1974 2. All other volunteer applicants and recipients who participated in Workfare, including ABAWDs who participated in non-qualifying activities. D. On the 4th quarter report: 1. List the components offered during the fiscal year and the number of ABAWD and non-ABAWD volunteers who participated in each component. 2. List the number of ABAWD and non-ABAWD volunteers who participated in Workfare during the fiscal year. Count each volunteer only once.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 255 VOLUNTARY QUIT AND VOLUNTARY REDUCTION

1 Section 255 Change #17-2021 September 20, 2021 FNS 255 VOLUNTARY QUIT AND VOLUNTARY REDUCTION CHANGE #17-2021 SEPTEMBER 20, 2021

255.00 VOLUNTARY QUIT AND VOLUNTARY REDUCTION An individual that is required to meet the work requirements described in FNS 240 Work Registration may be disqualified from the Food and Nutrition Services (FNS) program if they: A. Voluntary Quit: An individual that voluntarily quits a job that is equal to or greater than 30 hours per week or wages are equal to or greater than the minimum wage times 30 hours per week. B. Voluntary Reduction: An individual that reduces their work hours (effort) to less than 30 hours per week or reducing wages to less than minimum wage times 30 hours per week. 255.01 REQUIREMENT FOR DETERMINING VOLUNTARY QUIT AND VOLUNTARY REDUCTION A. Determine during the application interview if any FNS member voluntarily quit a job, voluntarily reduced work hours to less than 30 hours per week or reduced wages to less than minimum wage times 30 hours per week during the 30 days prior to the date of application. Determine during the recertification if any FNS member voluntarily quit a job, voluntarily reduced work hours to less than 30 hours per week or reduced wages to less than minimum wage times 30 hours per week at any time during a certification period. The job quit must have been for an average of 30 hours or more per week or have had earnings equivalent to the federal minimum wage multiplied by 30 hours. The job quit does not have to be the most recent job. The voluntary reduction of work effort applies if, before reduction, the individual was employed 30 hours or more per week or have had earnings equivalent to the federal minimum wage multiplied by 30 hours. The reduction must have been voluntary and without good cause. If the individual reduces work hours to less than 30 a week, but continues to earn weekly wages that exceed the Federal minimum wage multiplied by 30, the individual remains exempt from work requirements. B. Unless exempt from the voluntary quit provision as defined in Section 255.02, disqualify a FNS member who voluntarily quits a job without good cause as follows:

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 255 VOLUNTARY QUIT AND VOLUNTARY REDUCTION

2 Section 255 Change #17-2021 September 20, 2021 1. First Offense - One month 2. Second Offense - Three months 3. Third and Subsequent Offenses - Six months NOTE: No compliance activity (cure) is needed after the penalty ends. Add the individual back to the FNS case once the penalty has ended. If an individual gains a work registration exemption prior to the end of the penalty, the disqualification is ended. NOTE: The disqualification runs whether the individual receives FNS benefits or not. The proposed period of disqualification runs for a future period, not retroactively. Example: An individual is disqualified for June, July, and August. The certification period ends in June. The FNS unit does not complete a recertification and the case terminates at the end of July. The FNS unit returns in September to reapply for benefits. Even though the individual did not receive FNS benefits during the months of July and August, those months are still countable as part of the disqualification period. The individual would be eligible September forward as long as all other criteria are met. C. If the member finds comparable employment or becomes exempt from work registration before the application is processed or before the Notice of Adverse Action period ends, do not impose the penalty. The FNS member may cure the voluntary quit and lift the penalty without serving the full disqualification period if he finds a comparable job in salary or hours to the job that was quit; if he finds a job that offers benefits that the other job did not offer such as health care; or he becomes exempt from work registration. D. If the FNS member leaves the household, the penalty follows him. E. If the FNS requests a fair hearing and continued benefits, and the hearing decision upholds the county’s decision, begin the disqualification the month following the notice of the hearing decision.

255.02 EXEMPTIONS FROM VOLUNTARY QUIT AND VOLUNTARY REDUCTION A FNS member is exempt from voluntary quit if: A. The individual is exempt from work requirements (except due to employment). Refer to FNS 240.02 for the list of work requirement exemptions.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 255 VOLUNTARY QUIT AND VOLUNTARY REDUCTION

3 Section 255 Change #17-2021 September 20, 2021 EXAMPLE: An individual quits a job where he was working 40 hours per week to accept a job where he will only work 35 hours per week. The individual is not subject to the voluntary quit provisions because he has not reduced his hours to less than 30 hours per week. B. The employer initiates a reduction in the employee’s number of work hours. An individual that voluntarily and without good cause reduces his work hours to less than 30 hours per week is subject to the voluntary quit provisions. C. The individual terminates a self-employment business. D. The individual resigns from a job at the demand of the employer. E. The individual is fired for absenteeism. Absenteeism is unauthorized absence from work. The employer must be contacted to determine if voluntary quit applies.

EXAMPLE: A FNS applied in April. The individual states that he/she was working 35 hours per week and was fired in March due to absenteeism. The employer verified that the individual was fired for unauthorized absenteeism. This is exempt as the employer fired the individual.

EXAMPLE: A FNS applied in March. The individual states that he/she was working 35 hours per week and was fired in February due to absenteeism. The employer verified that the individual was considered to have abandoned the job because he/she stopped coming to work. This would be subject to voluntary quit. If good cause does not exists then the voluntary quit penalty would be applied. F. The individual is on strike. A government employee dismissed because of participation in a strike is not exempt from the voluntary quit provisions. G. The individual gets a job comparable to the job which was quit. Comparable employment may be less hours or lower salary than the job which was quit. To be considered comparable, the new job must provide some additional benefit or have the potential for advancement. For example, the new job may pay less but provide health insurance or pay child care expenses or the new job may provide higher wages after a probationary period. EXAMPLE: A FNS applies in May. An individual is currently employed; however, he voluntarily quit a job in April that was for 40 hours per week. His new job is for 25 hours per week but provides health insurance; the other job did not have this benefit. Do not apply the voluntary quit penalty.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 255 VOLUNTARY QUIT AND VOLUNTARY REDUCTION

4 Section 255 Change #17-2021 September 20, 2021 EXAMPLE: A FNS applies in June. An individual is currently employed; however, she voluntarily quit a job in May that was for 40 hours per week. The new job is for 20 hours per week. She quit because she did not want to work full time. Apply the voluntary quit penalty.

255.03 GOOD CAUSE FOR VOLUNTARY QUIT AND VOLUNTARY REDUCTION

Good cause reasons for voluntarily quitting a job include: A. Discrimination by an employer based on race, color, national origin, gender, religion, age, disability, or political beliefs. B. Work demands or conditions that render continued employment unreasonable, such as not being paid on schedule or being required to work overtime and not being paid for it. C. Acceptance of another offer of employment as long as the new job meets the minimum requirement of this provision (30 or more hours per week or earnings equivalent to federal minimum wage times 30 hours). D. Enrollment at least half-time in any recognized school, training program, or institution of higher education which requires the FNS to move. E. Resignation by the member under the age of 60 which is recognized by the employer as retirement. F. Acceptance of an offer of employment of 30 hours or more per week (or equivalent earnings) which because of circumstances beyond the control of the member does not materialize or results in employment which does not meet the suitability criteria specified in 255.04. G. Leaving a job in connection with patterns of employment. For example, migrant farm laborers or construction workers often go from one employer to another. If this type of FNS unit applies for FNS benefits between jobs because work is not yet available at the new work site, consider this good cause for quitting the last job if it is the pattern of that type of employment. H. Circumstances beyond the member’s control. This includes, but is not limited to, illness of the member or another family member requiring the member’s presence, household emergency, or unavailability of transportation.

255.04 SUITABILITY OF EMPLOYMENT

Employment is not considered suitable if:

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 255 VOLUNTARY QUIT AND VOLUNTARY REDUCTION

5 Section 255 Change #17-2021 September 20, 2021 A. The wages are less than the highest of the federal minimum wage, State minimum wage, training wage, or 80% of the federal minimum wage if others do not apply. B. Employment is on a piece rate basis and the average hourly yield reasonably expected by the employee is less than the applicable hourly wage. C. The member, as a condition of employment or continuing employment, is required to join, resign from, or refrain from joining any legitimate labor organization. D. The work offered is at a site subject to a strike or lockout at the time of the offer unless the strike has been enjoined under Section 208 of the Labor- Management Relations Act (29 U.S.C. 78) (commonly known as the Taft- Hartley Act) or unless an injunction has been issued under Section 10 of the Railway Labor Act (45 U.S.C. 160). NOTE: The Labor Management Relations Act (or Taft-Hartley Act) was passed by Congress in 1947. The act prohibits unions from coercing employees to join the union and requires unions to participate in collective bargaining. E. The degree of risk to health and safety is unreasonable. F. The member is physically or mentally unfit to perform the employment. Verify by medical evidence or reliable information from other sources. G. The employment offered within the first 30 days of registration is not in the members major field of experience. H. The distance from the member’s home to the place of employment is unreasonable, considering the expected wage, time, and cost of commuting. Distance is unreasonable when commuting exceeds two hours per day, not including the transportation of a child to day care. Employment is also unsuitable if neither public nor private transportation is available and walking distance to the job is in excess of two miles round trip. I. The working hours or nature of the employment interferes with the member’s religious observances, convictions, or beliefs. 255.05 DETERMINING VOLUNTARY QUIT AND VOLUNTARY REDUCTION FOR APPLICANTS A. During the application interview, ask whether any member quit a job in the 30 days prior to the date of application. Determine if the member who quit is exempt from the voluntary quit provisions. If he is exempt, voluntary quit does not apply.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 255 VOLUNTARY QUIT AND VOLUNTARY REDUCTION

6 Section 255 Change #17-2021 September 20, 2021 B. Contact the employer to verify voluntary quit. Verify the number of hours worked per week and the weekly earnings. Average fluctuating hours worked in the 30 calendar days prior to the date the individual quit the job to determine if the job was for 30 hours or more per week. C. Determine if the quit was for good cause and the employment was suitable. If the voluntary quit was not for good cause and the employment was suitable, disqualify the member using the time frames defined in 255.01. D. Continue to count the disqualified member’s entire income and resources and allow full deductions. E. If it is a one-person FNS, deny the application and mail a manual DSS-8551 Notice of Denial and the DSS-8642 Explanation of Disqualification to the applicant. Refer to 255.01 for disqualification time frames. F. If the applicant FNS reports that a member lost a source of earned income or he changed jobs after the interview but before the application is processed, determine if this results in a voluntary quit. If the quit was for good cause, do not impose the penalty. If the quit was not for good cause, disqualify the member, refer to 255.01 for disqualification time frames. NOTE: When good cause determination for voluntary quit cannot be completed on an emergency case, certify the FNS with postponed verification of good cause. If you later determine that the quit was not for good cause, terminate the case.

255.06 DETERMINING VOLUNTARY QUIT AND VOLUNTARY REDUCTION FOR PARTICIPATING FNS UNITS A. When a participating FNS reports that any member has lost his source of earned income or has changed jobs, determine if voluntary quit provisions apply. Determine if the member is exempt from voluntary quit. If he is exempt, voluntary quit does not apply. B. Contact the employer to determine if the job was for 30 hours or more per week. Verify the reason for the quit with the employer. Determine if the quit was for good cause or if the employment was unsuitable. If the quit was for good cause or the employment was unsuitable, do not impose a penalty. Unless the cause for the quit can be determined and verified, do not impose a penalty. If the employer refuses to cooperate, do not impose the penalty. If discrimination is alleged, accept a collateral as verification. If a collateral is not available, accept client’s statement. C. If the employer provides information that indicates voluntary quit, attempt a telephone call to the FNS to explain good cause and suitability criteria. If the FNS cannot be reached by phone, send a DSS-8650 Notice of Information Needed to Complete your Food and Nutrition Services. Advise the FNS that it

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 255 VOLUNTARY QUIT AND VOLUNTARY REDUCTION

7 Section 255 Change #17-2021 September 20, 2021 must contact the agency within ten calendar days to establish good cause. Failure to do so may result in the member’s disqualification based on the employer’s statement. D. When the FNS responds, explain the good cause reasons and criteria for suitability of employment. Determine if the individual’s reason for quitting was for good cause. Request verification of the household’s statement of good cause only if the information given is questionable. The FNS has primary responsibility for providing verification. Acceptable sources of verification include the previous employer, employee associations, union representatives, grievance committees and organizations, documentary evidence, or a collateral. E. If the FNS does not respond to the DSS-8650 send a DSS-8553 Notice of Adverse Action to impose a penalty or terminate a one-person household.

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FNS 260 ABLE-BODIED ADULTS WITHOUT DEPENDENTS (ABAWD) CHANGE #02-2025 DECEMBER 1, 2025

260.00 GENERAL OVERVIEW OF ABLE-BODIED ADULTS WITHOUT DEPENDENTS (ABAWD) TIME LIMITS, WORK REQUIREMENTS, AND EXEMPTIONS Federal law limits the amount of time a time-limited participant, commonly referred to as an able-bodied adult without dependents or ABAWD, can participate in FNS to any three countable months in a 36-month period (the ABAWD time limit) unless the person meets the ABAWD work requirements. An ABAWD is a FNS applicant or recipient, aged 18 to 64, who does not meet the criteria for an exemption from the general SNAP work registration requirements outlined in FNS Manual § 240.03 or the exceptions from the ABAWD time limit, outlined at FNS Manual § 260.01. On July 4, 2025, H.R. 1, the One Big Beautiful Bill Act of 2025 (OBBB) was signed into law. H.R. 1 amended the Food and Nutrition Act of 2008 (the Act) and significantly modified the ABAWD time limit exceptions. Revisions to FNS Manual § 260, effective December 1, 2025, implement the modified exception criteria of H.R. 1. In addition, USDA published final regulations on December 17, 2024, Supplemental Nutrition Assistance Program: Program Purpose and Work Requirement Provisions of the Fiscal Responsibility Act of 2023, which implemented provisions of the Fiscal Responsibility Act (FRA) of 2023. The final rule clarifies procedures for screening for exceptions to the ABAWD time limit and clarifies verification requirements for the exceptions. The final rule is codified at 7 CFR 273.24(k) and 7 CFR 273.24(l). Revisions to FNS Manual § 260, effective December 1, 2025, clarify the ABAWD exceptions screening and verification requirements. Please note that the Act and federal regulations refer to exemptions from the ABAWD time limits as “exceptions.” To conform to North Carolina’s current practice and to avoid confusion, the Department refers to both the work registration exemptions and the ABAWD time limit exceptions as “exemptions” for FNS policy. Given the significant changes to ABAWD policy, FNS Manual § 260.00 summarizes the modified exemption criteria due to H.R. 1 and discusses the screening sequence that eligibility workers must conduct when assessing whether an individual is exempted from the general work registration requirements and the ABAWD time limit.

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General Work Registration Exemptions H.R. 1 did not amend the general work registration exemptions found at FNS Manual § 240. Individuals receiving FNS must follow general work registration requirements, unless they meet an exemption from work registration under FNS Manual § 240.03.

Category An individual is exempt from work registration requirements if… Age Younger than age 16, or age 60 or older. Those ages 60-64 may need to meet ABAWD work requirements.

Children Responsible for the care of a child under age 6 or an incapacitated person.

Work Working 30 hours or more a week or earning at least $217.50 a week.

Benefits Receiving or have applied for unemployment benefits. Individuals receiving disability benefits that qualifies for Disabled Specified Person status under FNS Manual § 212.02, e.g., SSI, SSDI, Medicaid based on disability (MA- D), and VA disability payments rated at 100%.

Ability to work Physically or mentally unfit for employment either verified by medical personnel, or VA disability benefits classified as unemployable but not 100% rated.

Education Going to school, college, or training program at least half-time.

TANF Meeting the work rules for Temporary Assistance for Needy Families (TANF).

Other Participating in a drug addiction or alcohol treatment and rehabilitation program.

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ABAWD Work Requirement Exemptions In addition to the general work registration requirements, individuals may also be subject to the ABAWD work requirements and time limits, unless they meet an ABAWD exemption. H.R. 1 modifies the ABAWD requirements by adding exemptions for Indians, Urban Indians, or California Indians. H.R. 1 eliminates exemptions for veterans, individuals experiencing homelessness, and former foster youth. In addition, H.R. 1 increases the upper age limit exemption from age 55 to 64, and limits the exemption based on living with a dependent child to households with a child under age 14, instead of 18.

Category (Pre-H.R.1) Individual is exempt from ABAWD work requirements if… (Post-H.R.1) Individual is exempt from ABAWD work requirements if… General Already exempt from general work requirements under FNS 240.03. No changes; except those aged 60-64 are no longer exempt on this basis alone. Age Younger than age 18 or age 55 and older Younger than age 18 or age 65 and older; individuals ages 55-64 are now subject to ABAWD work requirements, unless otherwise exempt. Dependent age Living with someone under age 18 in household Living with someone under age 14 in household; individuals with dependents ages 14-17 in households are subject to ABAWD work requirements, unless otherwise exempt. Ability to work Obviously mentally or physically unfit for employment as determined by the State agency or statement from medical personnel verifying unfitness. Other populations Experiencing homelessness

N/A; homeless individuals are now subject to ABAWD work requirements, except North Carolina policy finds that individuals experiencing chronic homelessness have physical or mental barriers to work and may be found exempt as unfit. A veteran N/A; veterans are subject to ABAWD work requirements, unless receiving VA disability benefits at any rating. 24 years or younger and in foster care when at age 18 N/A; former foster youth are subject to ABAWD work requirements. Receiving temporary or permanent disability benefits. Pregnant N/A Indian, Urban Indian, or California Indian

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FNS Work Rules Screening Flow

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Screening for Exemptions All FNS participants must be screened at certification and recertification for the work registration exemptions (FNS Manual § 240.03) and ABAWD exemptions (FNS Manual § 260.01) as mandated by 7 CFR § 273.24(k). • First, screen household members for an exemption from the general work registration requirements under FNS Manual § 240.03; and, • Then, sequentially, screen household members for an exemption from the ABAWD work requirements under FNS Manual § 260.01. o Do not assign countable months unless the participant has been screened and it is determined that no exemption applies. When an individual qualifies for more than one exemption, apply the exemption that will be in effect the longest. o Proper screening of participants is one of the most important aspects of implementing the FNS work requirements. The Food and Nutrition Act establishes two purposes for SNAP: (1) to alleviate hunger and malnutrition among low-income households, and (2) to assist low- income adults in obtaining employment and increasing their earnings. Comprehensive screening for exemptions serves both purposes by ensuring eligible individuals maintain food security while appropriately engaging work-ready individuals in activities that support employment and self-sufficiency.

• After screening participants for exemptions, notify participants about the program rules that apply to them, such as reporting requirements. The Consolidated Work Notice (DSS-8569) must be provided to participants. A verbal explanation of all applicable work requirements, including the general work requirements and ABAWD work requirements. Participants must be provided the Consolidated Work Notice and verbal explanation at certification, recertification, and whenever a previously exempt household member or new household member becomes subject to work requirements. • Track and assign countable months. • Apply the time limit to participants who have received FNS benefits while not meeting the ABAWD work requirements for three months in a 36-month periods. • Determine whether time-limited participants are meeting the ABAWD work requirement and if not, and not otherwise exempt, whether they have “good cause” for not meeting the ABAWD work requirement. o Good cause shall include circumstances beyond the individual's control,

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such as, but not limited to, illness of the individual, illness of another household affecting the individual’s ability to work, a household emergency, or the unavailability of transportation. Examples of good cause are described in FNS Manual § 260.04. ABAWD Work Requirements Time-limited participants can meet the ABAWD work requirements in several ways: • Working 80 hours a month. Work can be for pay, for goods or services (in kind), unpaid, volunteer work, or any combination; • Participating in a qualifying work program for 80 hours a month; or, • Working and participating in a qualifying work program for a total of 80 hours a month, as determined by the State agency. ABAWD requirements do not replace any other eligibility requirements, nor do they create eligibility where it does not otherwise exist. While ABAWD, Employment & Training, and Work Registration policies are related to each other, each are applied individually. Non-exempt FNS unit members will continue to be subject to the general work registration requirements described in FNS Manual § 240 Work Registration Requirements regardless of whether they are exempt from the ABAWD work requirements.

260.01 WHO IS EXEMPT FROM THE ABAWD TIME-LIMIT? All individuals must be screened for exemptions at certification and recertification as required by 7 C.F.R. § 273.24(k). When an individual meets multiple exemptions, apply the exemption that will be in effect the longest. An individual who meets at least one of the exemptions listed in this section is not subject to the ABAWD time-limit. If an individual is exempt for any part of the month, the individual is exempt for the entire month. A. Verification of Exemption Status (7 CFR § 273.24(l)) 1. Self-attestation must be accepted for verification of ABAWD exemptions, unless questionable. USDA promulgated 7 CFR 273.24(l) on December 17, 2024 clarifying that eligibility workers must accept an individual’s attestation that they, or another household member, meet an exemption from the time limit, unless it is questionable. In addition, eligibility workers must not consider information provided through self-attestation to be questionable without reviewing on a case-by-case basis. a. Consistent with this regulation and subsequent USDA guidance,

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the Department may not set verification standards that target certain participants as a group in a discriminatory manner for more intensive verification, such as requiring all time-limited participants to verify exception status or by considering all self- attestation of an exception status to be questionable. b. Note: Receipt of temporary or permanent disability benefits still require verification other than self-attestation. 2. If self-attestation is questionable, attempt to verify using all available information before requiring an individual to provide verification of their exemption status. a. If an individual attests that they, or another household member, meet an exemption, and the statement is questionable, eligibility workers are required to attempt to verify using all available information before requiring individuals to provide verification of their exemption status. This requirement is specific to verification of exemptions from the ABAWD rules only. 3. Individuals must be given at least 10 days to return additional verification of an ABAWD exemption, but only if the self-attestation was questionable or unfitness for work is not obvious. a. If self-attestation regarding meeting an exemption is questionable, and the eligibility worker could not verify exemption status using information available through NCFAST or other sources, existing standards for timely verification apply and the eligibility worker must give the household at least 10 days to return additional verification. A DSS-8650 Notice of Information Needed may be used for this purpose. 4. After an individual is screened for all exemptions, do not deny or delay an application or recertification due to exemption verification, if the individual is: a. Not otherwise exempt based on self-attestation, because the statement is questionable because of information known to the agency or prior conflicting statements that cannot be reasonably resolved; and, b. Not otherwise exempt using information available to the agency, such as information from other public assistance programs through data sharing; and, c. Not otherwise exempt due to obvious mental or physical unfitness as determined by the State agency; and,

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d. Not otherwise exempt because they have not provided requested verifications after receiving a Notice of Information Needed, and they have not requested additional assistance with obtaining such verifications. 5. An application or recertification should never be denied or delayed for failure to respond to a request for verification of an exemption if the participant is otherwise eligible for FNS. Verification of ABAWD exemption status is not a mandatory verification. a. If an individual has been screened for all exemptions at initial application and recertification, and the individual is not otherwise exempt from ABAWD time limits, then countable months can be assigned to the participant if they do not fulfill work requirements without good cause or become otherwise exempt. B. ABAWD Exemption: Age 1. The ABAWD work requirement does not apply during any month when the individual is under age 18 or age 65 or older. a. Individuals aged 60 or older remain exempt from the general work registration requirements, including mandatory participation in SNAP Employment and Training (E&T), but may now be subject to ABAWD time limits, unless otherwise exempt under an another exemption. b. H.R. 1 did not change the definition of "elderly" for FNS purposes. Individuals age 60 or older remain classified as elderly under FNS Manual § 212.02. Continue to apply all elderly- specific policies to individuals in this age group, including the excess medical expense deduction (FNS Manual § 340.13) and excess shelter deductions (FNS Manual § 340.12). C. ABAWD Exemption: FNS households with a member who is under age 14 1. An individual is exempt from the ABAWD time limit if they reside in a FNS household with responsibility for a child under age 14. 2. The individual is not required to be the parent of the child. 3. The individual is not required to be responsible for the child. 4. The child can be an ineligible member of the FNS household for any reason (such as, but not limited to, being an ineligible alien). 5. The child can be temporarily absent from the home (no longer than 30 days).

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D. ABAWD Exemption: Pregnant 1. An individual who is pregnant is exempt from the ABAWD time limit. 2. There is no minimum length of pregnancy to meet the exemption. The exemption is effective beginning the month of conception, includes the month of the child’s birth, and applies until the individual is no longer pregnant. a. Verification: Self-attestation is sufficient, unless questionable. A medical statement is not necessary to verify pregnancy. E. ABAWD Exemption: Exempt from FNS work registration requirements (FNS Manual § 240) 1. An individual who is exempt from the general work registration requirements under FNS Manual § 240 is exempt from the ABAWD time limit, unless the exemption was solely due to the individual being age 60 or older. 2. Follow FNS Manual § 240 Work Registration for the work registration verification requirements for this exemption. F. ABAWD Exemption: Unfit for employment. The State agency may determine an individual to be medically certified as physically or mentally unfit for employment if the individual is: 1. Receiving public or private disability benefits. An individual is medically certified as physically or mentally unfit for employment if the individual is receiving temporary or permanent disability benefits issued by governmental or private sources, including but not limited to: a. Workers' compensation and other temporary disability benefits. b. Medicaid based on disability. c. Supplemental Security Income benefits under title XVI of the Social Security Act, or disability or blindness payments under titles I, II, X, XIV, XVI of the Social Security Act, e.g., Social Security Disability Insurance. d. Veterans Administration (VA) benefits (regardless of VA disability percentage). i. A veteran receiving VA disability compensation at any disability rating percentage is exempt. The percentage

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of the VA disability rating is not relevant to the application of this exemption. Veterans who are not receiving VA disability compensation may still qualify for exemption under other categories in this section. e. Short-term or long-term disability benefits from private insurance. f. Verification of receipt of public or private disability benefit: Requesting additional verification is not required if information regarding the receipt of disability benefits is already known to the agency through data exchanges. If the information is not known to the county, proof of receipt of disability benefits may be requested. Assist the individual with obtaining required verifications if requested. 2. Obviously physically or mentally unfit for work An individual does not need to meet the FNS definition of “disabled” or to be receiving disability benefits to meet the physically or mentally unfit for work criteria for an ABAWD exemption.

When an individual's unfitness for work is obvious during the certification or recertification interview, the State agency does not need to require a statement or verification from medical personnel. The eligibility worker's determination that unfitness is obvious is sufficient to establish the exemption. a. Indicators of obvious unfitness for employment as determined by the State agency. The following conditions, when apparent to the eligibility worker or through information readily available in the case record, and depending on the totality of the circumstances, can indicate that an individual may be obviously unable to work at least 80 hours per month or 20 hours per week on average based on the worker's discretion. This list is not exhaustive. i. Mobility limitations: Individual uses mobility aids (wheelchair, walker, crutches); reports difficulty walking or standing for extended periods; or has amputations or paralysis. ii. Chronic pain or fatigue: Individual describes severe pain or fatigue secondary to a medical condition that would interfere with maintaining employment. iii. Sensory impairments: Individual is blind, deaf, or has significant vision or hearing impairment that interferes with

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ability to work. iv. Chronic medical conditions: Individual reports cancer, heart disease, kidney disease, liver disease, or other serious chronic conditions and describes ongoing treatment (dialysis, chemotherapy) or symptoms that limit ability to maintain a regular work schedule. v. Serious mental illness: Individual reports diagnosis of schizophrenia, bipolar disorder, major depression, or other serious mental illness with severe symptoms (hallucinations, severe anxiety, panic attacks) that would interfere with employment. vi. Cognitive or developmental disabilities: Individual has intellectual or developmental disability, traumatic brain injury, or dementia and demonstrates difficulty understanding interview questions or completing application. vii. Combined medical-vocational factors with severe impairment: Individuals aged 55-64 with a limited education (less than a high school degree or equivalent), no substantial gainful work activity in the past five years, and any health condition limiting work capacity would be considered disabled under Social Security’s adverse medical-profiles and would be obviously unfit for work. viii. Recent hospitalization or medical crisis: Individual was recently hospitalized or is recovering from surgery, stroke, heart attack, or other acute medical event. b. Substance Use Disorders and obvious unfitness. Individuals with an active substance use disorder that functionally impairs their ability to work are determined to be an individual obviously physically or mentally unfit for employment for purposes of the ABAWD exemption based on eligibility worker’s discretion. i. Involvement in an alcohol or drug treatment program is not required for an ABAWD work exemption. c. Chronic homelessness and obvious unfitness. A person experiencing chronic homelessness is an individual who lacks a fixed and regular nighttime residence, including locations such as a homeless or domestic violence shelter;

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outdoor or makeshift locations; vehicles; RV-type structures without active utilities or sewer or septic hookups; or other places not designed for, or ordinarily used as, regular sleeping accommodations for human beings. This includes environments without access to toilets or where basic hygiene or stable sleep cannot be maintained. When the individual’s housing situation, as described, creates barriers that prevent working 20 hours per week, they are determined to be an individual obviously physically or mentally unfit for employment for purposes of the ABAWD exemption based on eligibility worker’s discretion. d. Domestic Violence and obvious unfitness. Survivors of recent acts of domestic violence, sexual harassment, sexual assault, or stalking that have impacted their physical or mental health and currently interferes with their ability to maintain work, are determined to be obviously physically or mentally unfit for employment for purposes of the ABAWD exemption based on eligibility worker’s discretion. e. If the individual is obviously unfit, succinctly document in the case record the basis for the determination (what made unfitness obvious). f. No medical verification is required when unfitness is obvious. When unfitness is obvious, workers must not request medical documentation. Requiring verification when unfitness is obvious creates an unnecessary barrier to benefits. 3. Not obviously unfit – medical statement is required. If an individual's unfitness for employment is not obvious to the eligibility worker after thorough screening, and the individual has indicated that they are unfit to work, the individual may establish physical or mental unfitness by providing a statement from appropriate medical personnel. a. Acceptable sources for medical statement: i. Federal regulations provide that a statement from any of the following sources is acceptable: (a) Physician (b) Physician's Assistant (c) Nurse

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(d) Nurse Practitioner (e) Designated representative of physician's office (office staff authorized to provide statement) (f) Licensed or Certified Psychologist (g) Social Worker b. The Department expands acceptable sources for purposes of this section: i. In accordance with 7 CFR. § 273.24(c)(2)(iii), to lower undue burdens on individuals and medical providers, the Department determines that the following additional medical sources are deemed appropriate to provide statements of unfitness for employment for this section: (a) Physical Therapist (b) Occupational Therapist (c) Speech Language Pathologist (d) Licensed Professional Counselor (LPC) (e) Licensed Marriage and Family Therapist (LMFT) (f) Licensed Clinical Mental Health Counselor (LCMHC) (g) Certified Addiction and Drug Counselor (CADC) (h) Certified Substance Abuse Counselor (CSAC) (i) Certified Community Health Worker (CCHW) c. Content of statement of unfitness for work: i. The statement need not be on official letterhead or use specific language. A statement may be taken verbally and telephonically attested but must be documented in NCFAST. An acceptable statement: (a) Identifies the source (name, title, organization/credentials, and contact information) (b) States that the individual is physically or mentally unfit to work 20 hours per week or more OR describes a condition or limitation that makes the

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individual unfit to work 20 hours per week or more (c) The statement may, but need to, specify diagnosis, describe specific limitations, and state duration of unfitness. d. Timeline for verification for Medical Statement. If unfitness for employment was not obvious to the eligibility worker, and the eligibility worker could not verify another exemption status using information available through NCFAST or other sources, existing standards for timely verification apply and the eligibility worker must give the household at least 10 days to return a medical statement from a provider. A specific form is not required for the medical statement. The DSS-8209 Medical Report may be used to obtain a medical statement and a copy of this form should be given to the individual. G. ABAWD Exemption: An Indian, Urban Indian, or California Indian as described in the Indian Health Care Improvement Act. 1. Effective November 1, 2025, American Indians who meet the definition of "Indian," "Urban Indian," or "California Indian" under the Indian Health Care Improvement Act (IHCIA), are exempt from ABAWD work requirements. USDA guidance, as of October 3, 2025, defines Indian, Urban Indian, and California Indian as follows: 2. Indian a. An individual is an "Indian" per 25 USC § 1603(13) if they are a member of an Indian tribe. b. "Indian tribe" is defined as any Indian tribe, band, nation, or other organized group or community, including any Alaska Native village or group or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act, which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians. 3. Urban Indian a. An individual is an "Urban Indian" per 25 USC § 1603(18) if they: i. Reside in an urban center, defined as any community which has a sufficient urban Indian population with unmet health needs to warrant assistance under subchapter IV of the IHCIA, as determined by the Secretary of Health and

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Human Services; and ii. Meet at least one of the following four criteria: (a) Regardless of whether they live on or near a reservation, is a member of a tribe, band, or other organized group of Indians, including those tribes, bands, or groups terminated since 1940 and those recognized now or in the future by the State in which they reside, or who is a descendant, in the first or second degree, of any such member; (b) Is an Eskimo or Aleut or other Alaska Native; (c) Is determined to be an Indian under regulations promulgated by the Secretary of Interior; or (d) Is determined to be an Indian under regulations promulgated by the Secretary of Health and Human Services. 4. California Indian a. An individual is a "California Indian" under 25 USC. § 1679(a) if they: i. Are a member of a federally recognized Indian tribe in California. ii. Are a descendant of an Indian who was residing in California on June 1, 1852, if such descendant: (i) is a member of the Indian community served by a local program of the Indian Health Service; and (ii) is regarded as an Indian by the community in which such descendant lives; iii. Are an Indian who holds trust interests in public domain, national forest, or reservation allotments in California; or iv. Are an Indian of California who is listed on the plans for distribution of the assets of rancherias and reservations located within the State of California under the Act of August 18, 1958, and any descendant of such an Indian. 5. Implementation guidance for the Indian, Urban Indian, and California Indian exemption, effective November 1, 2025. a. Screen for the American Indian exemptions at all applications

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and recertifications beginning November 1, 2025. b. Meeting the exception during the certification period. If clear information that an individual within their certification period meets the American Indian exemption, apply the exemption promptly and do not assign a countable ABAWD month. c. Verification of American Indian exemption. Self-attestation of this exemption must be accepted, unless questionable. An individual’s self-declaration of their status as an Indian, Urban Indian, or California Indian as described in the Indian Health Care Improvement Act is questionable only if it is inconsistent with other information in NC FAST or prior known statements made by individual. If the information is questionable, acceptable verification may include, but is not limited to tribal enrollment or membership card, letter from the Bureau of Indian Affairs or tribal government, and similar indicia that the individual meets the specified criteria for the exemption. d. After screening and verifying at initial application and recertification, ensure that "American Indian/Alaskan Native" indicator is selected in the individual's demographic information in NC FAST. e. The exemption for American Indians does not replace any other eligibility requirements, nor does it create eligibility where it does not otherwise exist. Participants exempted under the American Indian exemptions will continue to be subject to the general FNS work requirements described in FNS Manual § 240 Work Registration Requirements, unless they are otherwise exempt from the work registration requirements under FNS § 240.03.

260.02 ABAWD EXEMPTION SCREENING REQUIREMENTS

In compliance with 7 CFR § 273.24(k), which became effective on January 16, 2025, and to ensure that work registrants who can work, engage in work requirements, FNS participants must be screened for all exemptions from the general work registration requirements (FNS Manual § 240) and ABAWD work requirements (FNS Manual § 260) at initial application and recertification. Screening at recertification is not optional. Screening is an independent requirement from the application and recertification interview. A. Eligibility workers must screen for exemptions in a comprehensive, sequential manner: 1. First, screen for exemptions from general work requirements under FNS

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Manual § 240, as these confer automatic exemption from ABAWD time limits, unless the individual is exempt from work registration due to being age 60 or older. 2. Second, if the individual is not exempt from general work requirements, screen specifically for ABAWD exemptions under FNS Manual § 260.01. 3. Continue screening even after identifying one exemption, to identify all applicable exemptions. 4. When multiple exemptions apply, document all exemptions in NC FAST and apply the exemption that will be in effect the longest. B. Use open-ended questions and active listening to identify potential exemptions. Examples include: 1. "Do you have any physical or mental health conditions that affect your ability to work?" a. "How does this condition affect your daily activities?" b. "Are you currently receiving treatment or seeing a doctor for this condition?" c. "Do you take medications for this condition?" 2. "Have you experienced any challenges with housing or homelessness?" 3. "Are you currently receiving any disability benefits from any source?" 4. "Are you a veteran? If yes, do you receive any VA benefits?" 5. "Do you have any substance use or mental health concerns that affect your daily activities?" C. FNS Work Rules Screening Checklist.

19 Section 260 Change #02-2025 December 1, 2025 FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 260 ABLE-BODIED ADULTS WITHOUT DEPENDENTS (ABAWD)

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260.03 DETERMINING COUNTABLE MONTHS North Carolina uses a fixed clock to measure the 36-month period. The current fixed clock is a 3-year period which is January 1st, 2025 through December 31st, 2027. The 36-month period runs continuously without a break, regardless of whether the individual receives FNS benefits. A. 3-month participation time limit. Individuals subject to the ABAWD work requirements are generally limited to receiving 3 countable months of FNS benefits during the 36-month fixed period. B. A countable month is a month during which an individual receives FNS benefits for the full benefit month while not fulfilling the ABAWD work requirements, without good cause, and without otherwise being exempt from the work requirements under FNS Manual § 260.01. a. The 3-month limit is cumulative. b. Countable months can be assigned non-consecutively during the fixed 36-month period if the individual subject to ABAWD rules does not fulfill the work requirements without good cause in that month. C. Countable months must not be assigned to an individual until they have been screened for all general work registration exemptions and ABAWD work requirement exemptions at initial application or recertification, and it is determined that no exemption applies. D. ABAWDs are required to report when they experience a reduction in work hours below 20 hours per week or 80 hours a month by the 10th of the month following the month the work hours were reduced. If a non-exempt ABAWD exceeds 3 countable months, explore referral for overpayment if the household failed to report or failed to timely report a reportable change. Do not explore overpayments for non-countable months or months that the individual is exempt from ABAWD requirements.

An over issuance is not created under the following situations: 1. If a change is reported timely or discovered within the household’s reporting timeframe that requires a Notice of Adverse Action and there is not sufficient time to decrease or terminate benefits prior to the next month. 2. If a non-reportable change is reported or discovered. a. The loss of an exemption during a certification period is a non-

21 Section 260 Change #02-2025 December 1, 2025 FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 260 ABLE-BODIED ADULTS WITHOUT DEPENDENTS (ABAWD)

reportable change, e.g., turning age 18, or the youngest dependent child in the household turning age 14. Countable months cannot be assigned to an individual losing an exemption during their certification period because the individual has not been screened for all other exemptions. Screening for all other exemptions will occur during the individual’s recertification.

260.04 COUNTABLE AND NON-COUNTABLE ABAWD MONTHS A. Countable ABAWD months. Each month of the ABAWD’s participation must be evaluated individually. If the individual is exempt for one day or more, they are exempt for the entire month. A countable ABAWD month is any month that the individual: 1. Received a full month (not prorated) of FNS benefits; and 2. Was not exempt from ABAWD requirements; and 3. Did not fulfill the work requirements. B. Non-countable ABAWD months. Any month in which the individual meets at least one of the following conditions is considered non-countable and does not count toward the ABAWDS 3-month limit. 1. Prorated months. 2. Any month in which the individual meets at least one of the following ABAWD Work Requirements: a. Working an average of 20 hours per week (80 hours in the month). Consider an ABAWD to have met the 80 hours per month rule when the hours worked are at least 80 hours. ABAWDs are required to report changes by the 10th of the month following the month of change when the number of hours working reduce below 20 hours a week or 80 hours less per month regardless of simplified reporting requirements. 3. Work can be: a. Paid employment regardless of earnings. i. Request verification of income and hours worked. ii. Document the number of hours worked in NC FAST. b. Self-employment regardless of earnings. i. Request the individual’s statement of number of

22 Section 260 Change #02-2025 December 1, 2025 FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 260 ABLE-BODIED ADULTS WITHOUT DEPENDENTS (ABAWD)

hours worked per month if the individual is self-employed or a contractor. c. Volunteer work in a public or private organization. i. Accept volunteer work for any nonprofit, churches or other religious groups, community organizations, or governmental agency, or community service ordered by a court. ii. Request written or verbal verification from the agency of the number of hours volunteered in a month. d. Work in exchange for goods or services (such as but not limited to, work in exchange for a place to live). i. Request written or verbal verification of the number of hours worked in a month. Document in NC FAST. e. Any combination of the above. f. Participating in and complying with the requirements of a work program for an average of 20 hours per week (80 hours per month) including: i. A program under the Workforce Innovation and Opportunity Act (WIOA); ii. A program under Trade Adjustment Assistance Act Program (TAA); iii. A program that includes qualifying ABAWD activities so long as job search and/or job search training is less than half hours required by of the program (See chart below). iv. ABAWDs are not required to participate in a work program for longer than the 20 hours per week to fulfill the ABAWD work requirement. However, if the ABAWD has been referred to the More Than a Job NC program in order to fulfill the ABAWD work requirement, the More Than a Job NC program may require additional hours of participation. v. An ABAWDs total hours of required participation in More Than A Job NC, together with any hours worked for compensation in cash or in-kind (including work experience) cannot exceed 120 hours per month. Participants may volunteer for additional hours of training.

23 Section 260 Change #02-2025 December 1, 2025 FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 260 ABLE-BODIED ADULTS WITHOUT DEPENDENTS (ABAWD)

vi. ABAWDs participating in a work program can combine job search and/or job search training (9 hours maximum) with other ABAWD qualifying activities to allow ABAWDs to meet the 20-hour weekly work requirement (See chart below). C. Qualifying Work Program Activities:

Qualifying Component Description Hours required per week WIOA (WIA) programs The goal is to increase opportunities for employment, education, and training. Can include job search, occupational skills training, on-the-job training, job readiness training, adult education and literacy activities, etc. 20 hours A program under section 236 of the Trade Act of 1974 Trade Adjustment Assistance (TAA): Training programs for workers that have lost or may lose a jobs Provides aid to workers who have lost a job as a result of foreign trade. 20 hours More Than A Job NC education or training Aims to improve basic skills or employability and have a direct link to employment. Can include basic education, vocational or technical training, and on-the-job training. Job search activities must be less than half of required hours. Activities must be described in State SNAP E&T Plan. 20 hours, alone or combined with other activities

24 Section 260 Change #02-2025 December 1, 2025 FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 260 ABLE-BODIED ADULTS WITHOUT DEPENDENTS (ABAWD)

More Than A Job NC work experience Designed to improve the employability of participant through actual work experience and/or training; placements can be with private, for-profit companies. Placements at public and private sector employers. Can include for-profit employers. Activities must be described in the State SNAP More Than A Job NC Plan. 20 hours, alone or combined with other activities. Mandatory unpaid work hours equal to the result obtained by dividing a household’s SNAP allotment by the higher of the applicable Federal or State minimum wage.

1. Note: North Carolina currently has no counties operating in FNS Workfare program. Policy will be updated to reflect Workfare participation if any county initiates a FNS Workfare program in the future. D. Good Cause 1. For individuals subject to the ABAWD time limit who would have worked hours in a month but missed some hours of work or participation in a work program for good cause, the county must grant good cause and the individual shall be considered to have met the ABAWD work requirements if the absence from work or work program participation is temporary. The month shall not be counted as an ABAWD countable month. 2. Good cause shall include circumstances beyond the individual's control, such as, but not limited to, illness of the individual, illness of another household affecting the individual’s ability to work, a household emergency, or the unavailability of transportation. Refer to FNS Manual § 255 Voluntary Quit and Voluntary Reduction for good cause policy. 3. For additional guidance for eligibility workers on the application of good cause, eligibility workers should apply good cause liberally, recognizing that many circumstances beyond an individual's control can temporarily prevent work. Individuals subject to the ABAWD work rules must not be held to a stricter, more restrictive standard than other workers when navigating the complexity and uncertainty of circumstances that are beyond an individual’s control. Thus, good cause for the ABAWD work requirements also includes, a. A household emergency, including but not limited to: loss of housing due to an eviction proceeding, domestic violence

25 Section 260 Change #02-2025 December 1, 2025 FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 260 ABLE-BODIED ADULTS WITHOUT DEPENDENTS (ABAWD)

situations, natural disasters, utility shutoffs, family crises, or other urgent material circumstances requiring immediate attention. b. The unavailability of transportation, including: lack of public transportation, vehicle breakdown, inability to afford transportation costs, distance to work location, or unsafe transportation conditions. c. Lack of childcare or breakdown of childcare arrangements, including situations where formal or informal childcare providers are unavailable. d. Caring for an incapacitated household member, including elderly parents, disabled family members, or others requiring care. e. Court appearances, legal proceedings, or mandatory meetings with probation officers, social workers, or other officials. f. Participation in medical appointments, substance use disorder treatment, mental health services, or other health-related activities necessary for the individual's wellbeing. g. Domestic violence, dating violence, sexual assault, or stalking that affects the individual's ability to work or participate in work programs. h. Any other circumstances that a reasonable person would consider to constitute good cause, as determined by the eligibility worker using prudent judgment. 4. Accept self-attestation for verification, unless questionable.

260.05 REGAINING ABAWD ELIGIBILITY A. ABAWDs can regain eligibility to participate in FNS if they: 1. Worked (paid and unpaid) 80 hours or more in a 30-day period; or 2. Participated in and complied with the requirements of a work program for 80 or more hours in a 30-day period; or 3. Any combination of work and participation in a work program for a total of 80 hours or participated in and complied with a workfare program in a 30- day period; or 4. Become otherwise exempt from work requirements; or 5. The 36-month (3-year) period expires.

26 Section 260 Change #02-2025 December 1, 2025 FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 260 ABLE-BODIED ADULTS WITHOUT DEPENDENTS (ABAWD)

B. Bonus Months. ABAWDs who have regained eligibility and are not meeting the FNS work requirements outlined in 260.04 can gain an additional 3 consecutive months once during the 3-year period of eligibility. These months are known as Bonus months. 1. Bonus months: a. Apply only to ABAWDs who regained eligibility but are no longer fulfilling the FNS work requirement. b. Must be consecutive months. c. Only full months of benefits count toward the Bonus months. 2. Bonus months start dates: a. If the individual was working, the consecutive 3 months must start when the participant reports that he or she is no longer in compliance with ABAWD FNS work requirements. b. If the individual was participating in a work program, the consecutive 3 months will start when it is determined the ABAWD is no longer in compliance. C. An individual regaining eligibility shall have benefits calculated as follows: 1. For individuals regaining eligibility through eligibility for 3 bonus months, prorate benefits from the day the 30 days of work were completed or from the date of application (whichever comes last). 2. For individuals regaining eligibility through a new 36-month period, beginning with the first month covered by the application in the new 36- month period. 3. For individuals regaining eligibility because currently exempt, beginning with the first month covered by the application in which an ABAWD exemption is met for at least part of the month. 4. For individuals regaining eligibility because now working, beginning with the first month covered by the application in which the individual is working.

260.06 APPLICATION / REAPPLICATION / RECERTIFICATION / CHANGE

A. At application the caseworker must explain all general work registration and ABAWD work requirements to the household including the following: 1. Explanation of each applicable work requirement;

27 Section 260 Change #02-2025 December 1, 2025 FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 260 ABLE-BODIED ADULTS WITHOUT DEPENDENTS (ABAWD)

2. Which individuals are subject to which work requirement; 3. Exemptions from each applicable work requirement; 4. An explanation of the process to request an exemption (including contact information to request an exemption); 5. The rights and responsibilities of each applicable work requirement; 6. What is required to maintain eligibility under each applicable work requirement; 7. Pertinent dates by which an individual must take any actions to remain in compliance with each applicable work requirement; a. Individuals subject to the ABAWD work requirements are required to report changes by the 10th of the month following the month of change when the number of hours working fall below 20 hours per week regardless of simplified reporting requirements. 8. The consequences for failure to comply with each applicable work requirement; 9. An explanation of the process for requesting good cause (including examples of good cause circumstances and contact information to initiate a good cause request); and 10. Any other information the eligibility worker believes would assist the household members with compliance. 11. The case file must be documented that this information was verbally explained and the date when explained; 12. Provide the individual with the DSS-8569 Consolidated Work Notice. The case file must be documented with the date the notice was verbally explained, how the notice was given, if by hand delivery or mailed. B. Reapplication 1. At reapplication the worker must explore each previously countable ABAWD month to determine if the ABAWD met an exemption in one of the previous months; 2. Ask whether the applicant has completed the ABAWD work requirements within 30 consecutive days or more at any time since losing FNS eligibility, even if the applicant is not currently meeting the ABAWD work requirements; 3. Recode any previous months as exempt, but an individual cannot be

28 Section 260 Change #02-2025 December 1, 2025 FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 260 ABLE-BODIED ADULTS WITHOUT DEPENDENTS (ABAWD)

retroactively assigned countable month unless they were screened for all exemptions within the prior certification period. 4. Explain all general work registration and ABAWD work requirements to the household including the following: a. Explanation of each applicable work requirement; b. Which individuals are subject to which work requirement; c. Exemptions from each applicable work requirement; d. An explanation of the process to request an exemption (including contact information to request an exemption); e. The rights and responsibilities of each applicable work requirement; f. What is required to maintain eligibility under each applicable work requirement; g. Pertinent dates by which an individual must take any actions to remain in compliance with each applicable work requirement; i. Individuals subject to the ABAWD work requirements are required to report changes by the 10th of the month following the month of change when the number of hours working fall below 20 hours per week regardless of simplified reporting requirements. h. The consequences for failure to comply with each applicable work requirement; i. An explanation of the process for requesting good cause (including examples of good cause circumstances and contact information to initiate a good cause request); and j. Any other information the eligibility worker believes would assist the household members with compliance. 5. The case file must be documented that this information was verbally explained and the date when explained; 6. Provide the individual with the DSS-8569 Consolidated Work Notice. The case file must be documented with the date the notice was verbally explained, how the notice was given, if by hand delivery or mailed. C. Special situations

29 Section 260 Change #02-2025 December 1, 2025 FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 260 ABLE-BODIED ADULTS WITHOUT DEPENDENTS (ABAWD)

1. Pend applications, reapplications, and late recertifications for postponed verification when an ABAWD has already been assigned 3 countable months in the 36-month period if the ABAWD claims physical or mental unfitness for work or another exemption, and the self-attestation to verify the exemption is questionable, or the individual’s unfitness for work is not obvious. a. Pend the case until the ABAWD or a collateral contact provides verification of the exemption. b. If verification of the exemption is received within 30 days, approve the case back to the original date of application even if the onset of the exemption is after the date of application but during the same calendar month. c. If the ABAWD has been assigned 3 countable months, they are not eligible for expedited service unless the verification (if needed) is provided within 7 days of the expedited processing requirements. 2. Pend a case when an ABAWD has been assigned 3 countable months in the 36-month period at the time of an application and has not yet become exempt or compliant but has the potential to earn 80 hours within the 30-day processing period. a. If the ABAWD earns 80 hours within the processing time frame, and all other eligibility requirements are met, approve the reapplication from the original date of application. b. If the ABAWD does not earn 80 hours within the 30-day processing period, deny the application. D. Recertification: 1. At recertification the worker must explore each previously countable ABAWD month during the prior certification period to determine whether the ABAWD met an exemption or complied with the work requirement in that month. 2. If during the prior certification period an individual had a non-reportable change in circumstance that resulted in the loss of an exemption, the individual cannot be retroactively assigned countable because the individual had not been screened to determine whether any other exemptions could have applied. 3. Reevaluate exemptions for ongoing eligibility, but do not request additional verifications of exemptions if the information is already known to the agency and sufficient for verification;

30 Section 260 Change #02-2025 December 1, 2025 FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 260 ABLE-BODIED ADULTS WITHOUT DEPENDENTS (ABAWD)

4. Recode any month in the prior certification period as exempt or in compliance, as applicable; and 5. Consider bonus month eligibility if the applicant completed the ABAWD work requirements for 30 consecutive days at any time since losing FNS eligibility, even if the applicant is not currently meeting or exempt from the ABAWD work requirements. 6. Explain all general work registration and ABAWD work requirements to the household including the following: a. Explanation of each applicable work requirement; b. Which individuals are subject to which work requirement; c. Exemptions from each applicable work requirement; d. An explanation of the process to request an exemption (including contact information to request an exemption); e. The rights and responsibilities of each applicable work requirement; f. What is required to maintain eligibility under each applicable work requirement; g. Pertinent dates by which an individual must take any actions to remain in compliance with each applicable work requirement; i. Individuals subject to the ABAWD work requirements are required to report changes by the 10th of the month following the month of change when the number of hours working fall below 20 hours per week regardless of simplified reporting requirements. h. The consequences for failure to comply with each applicable work requirement; i. An explanation of the process for requesting good cause (including examples of good cause circumstances and contact information to initiate a good cause request); and j. Any other information the eligibility worker believes would assist the household members with compliance. 7. The case file must be documented that this information was verbally explained and the date when explained; 8. Provide the individual with the DSS-8569 Consolidated Work Notice. The

31 Section 260 Change #02-2025 December 1, 2025 FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 260 ABLE-BODIED ADULTS WITHOUT DEPENDENTS (ABAWD)

case file must be documented with the date the notice was verbally explained, how the notice was given, if by hand delivery or mailed. E. Changes during certification period: 1. If during the certification period an individual has a change in circumstances that results in the loss of an exemption from the time limit, do not assign countable months until the individuals is screened to determine whether any other exception applies at their next recertification. 2. If during the certification period an individual subject to the time limit has a change in circumstance that results in the individual now meeting an exemption, act promptly to apply the exemption and do not assign countable months once the county receives information that is not questionable. If it is determined that the information is questionable, then act promptly to verify the information. Once verified, apply the exemption and do not assign countable months.

260.07 NC FAST TRACKING ABAWD ELIGIBILITY NC FAST will track ABAWD eligibility for all ABAWDS within a FNS unit. NC FAST will also send all appropriate notices to the FNS households to terminate or reduce benefits when an individual has reached their 3-month time limit. A. NC FAST decisions are based on the available evidence. The worker must update all applicable evidence for each potentially countable month to ensure NC FAST has accurate information. B. The system tracks the following information for each ABAWD member: 1. The 36-month period; 2. Non-compliant months, 3-month limit (countable months); 3. Bonus months (3 additional months); 4. Months in which the ABAWD complies with the work requirements (compliant months); 5. Months in which the ABAWD fails to comply with the work requirements (non-compliant months); 6. Exemption status; 7. Good cause; 8. ABAWDs that move from another county or state. 9. Note: Document in NC FAST when the FNS unit member’s ABAWD

32 Section 260 Change #02-2025 December 1, 2025 FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 260 ABLE-BODIED ADULTS WITHOUT DEPENDENTS (ABAWD)

status changes if a change in situation occurs, e.g., if it becomes known to the agency that the individual is now exempt. If the ABAWD temporarily fails to meet the work requirement (with good cause), do not count as a non-compliant month.

260.08 ABAWD MORE THAN A JOB NC SERVICES PROGRAM The Able-Bodied Adults without Dependents (ABAWD) More Thana Job NC Services Program is an optional program that counties may participate in to help ABAWDS become employable and maintain eligibility for Food and Nutrition Services (FNS) benefits beyond the three-month limit.

Local county departments of social services are not required to participate in this program; however, the Division strongly encourages each county to implement services for ABAWDS. Counties that wish to implement the ABAWD Services Program must contact the Food and Nutrition Services More Than a Job NC Coordinator in the Economic Services at (919) 527-6300 prior to implementing the program.

260.09 COMPONENT ACTIVITIES FOR ABAWDS The following activities are optional for each county. It is not required that counties carry out the activities either as a function of the department of social services or under contract. The local department of social services has the authority to contract with local providers to carry out these activities. A. An ABAWD is placed in and actively participates in a program under the Workforce Investment Act (WIA) for a minimum of 20 hours each week. B. An ABAWD is placed and actively participates in a community college program or programs (i.e., Pathways to Employment, HRD, GED, ABE, AHS) for a minimum of 20 hours each week. C. An ABAWD is placed and actively participates in community work experience (work site) for the required number of hours a month. Determine the number of hours that are required monthly by dividing the FNS benefit amount by the current federal minimum wage. 1. EXAMPLE: A FNS benefit of $123 divided by $7.25 = 17 hours a month work site obligation. a. If the ABAWD is a member of a household where others are receiving FNS benefits, divide the entire household FNS benefit amount by hourly minimum wage. 2. EXAMPLE: An ABAWD is in a FNS unit with two non-ABAWDS. The household benefit is $321. Divide $321 by minimum wage to determine

33 Section 260 Change #02-2025 December 1, 2025 FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 260 ABLE-BODIED ADULTS WITHOUT DEPENDENTS (ABAWD)

the number of hours the ABAWD must work. The $321 benefit divided by $7.25 equals 44 hours. a. In a household with more than one ABAWD member or a household with more than one ABAWD member and non- ABAWD members, the county may determine how the required hours are distributed among each ABAWD. b. Regardless of the total household obligation for community work experience work hours, an ABAWD cannot be required to work over 120 hours per month. c. NOTE: When performing calculations, round down to the nearest whole number. ABAWDS must not work beyond the number of required hours unless it is voluntary and strictly for training. D. Self-initiated Community Work Experience (work sites) 1. If an ABAWD reports that he is working as a volunteer at a public or private non-profit agency, the work may qualify as a self-initiated community work experience work site. For the work site to qualify as a More Than a Job NC work site, the ABAWD must work the required number of hours as described in C. above, and the agency must be under a work site agreement with the local department of social services.

260.10 ADDITIONAL GUIDANCE A. It is allowable to combine work and participation in the ABAWD Services Program for a portion of the month if there is an average of 20 hours of work and participation per week. B. The Food and Nutrition Act specifically excludes job search and job search training programs as qualifying work programs that will keep ABAWDS eligible for FNS benefits. However, the act does not preclude local departments of social services from requiring ABAWDS to conduct some job search activities while participating in the ABAWD Services Program. In any given month, education and training activities must account for the majority (minimum of 75% or 15 hours) of the time spent in the component.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 265 ABAWD SERVICES PROGRAM

1 Section 265 Change #18-2021 September 20, 2021 FNS 265 ABAWD SERVICES PROGRAM Change #18-2021 SEPTEMBER 20, 2021

265.00 ABAWD SERVICES PROGRAM The Able-Bodied Adults without Dependents (ABAWD) Services Program is an optional program that counties may participate in to help ABAWDS become employable and maintain eligibility for Food and Nutrition Services (FNS) benefits beyond the three-month limit described in FNS 260 Able-Bodied Adults without Dependents (ABAWD). All local county departments of social services (Employment and Training [E&T], 15% Exempt, Remote, and Workfare) have the authority to draw down 100% E&T ABAWD funds to pay the cost of operating a program for ABAWDS that results in their placement and participation in an education, training, or work experience (work site). The federal funds are capped and must be earned through the placement of ABAWDS in approved activities. Local county departments of social services are not required to participate in this program; however, the Division strongly encourages each county to implement services for ABAWDS. Counties that wish to implement the ABAWD Services Program must contact the Food and Nutrition Services E&T Coordinator in the Economic Services at (919) 527-6300 prior to implementing the program. 265.01 COMPONENT ACTIVITIES FOR ABAWDS The following activities are optional for each county. It is not required that counties carry out the activities either as a function of the department of social services or under contract. The local department of social services has the authority to contract with local providers to carry out these activities. A. An ABAWD is placed in and actively participates in a program under the Workforce Investment Act (WIA) for a minimum of 20 hours each week. B. An ABAWD is placed and actively participates in a community college program or programs (i.e., Pathways to Employment, HRD, GED, ABE, AHS) for a minimum of 20 hours each week. C. An ABAWD is placed and actively participates in community work experience (work site) for the required number of hours a month. Determine the number of hours that are required monthly by dividing the FNS benefit amount by the current federal minimum wage. EXAMPLE: A FNS benefit of $123 divided by $7.25 = 17 hours a month work site obligation.

FOOD AND NUTRITION SERVICES CERTIFICATION ELIGIBILITY REQUIREMENTS FNS 265 ABAWD SERVICES PROGRAM

2 Section 265 Change #18-2021 September 20, 2021 1. If the ABAWD is a member of a household where others are receiving FNS benefits, divide the entire household FNS benefit amount by $5.15 (current hourly minimum wage). EXAMPLE: An ABAWD is in a FNS unit with two non-ABAWDS. The household benefit is $321. Divide $321 by $5.15 to determine the number of hours the ABAWD must work. The $321 benefit divided by $5.15 equals 63 hours. 2. In a household with more than one ABAWD member or a household with more than one ABAWD member and non-ABAWD members, the county may determine how the required hours are distributed among each ABAWD. 3. Regardless of the total household obligation for community work experience work hours, an ABAWD cannot be required to work over 120 hours per month. NOTE: When performing calculations, round down to the nearest whole number. ABAWDS must not work beyond the number of required hours unless it is voluntary and strictly for training. D. Self-initiated Community Work Experience (work sites) If an ABAWD reports that he is working as a volunteer at a public or private non- profit agency, the work may qualify as a self-initiated community work experience work site. In order for the work site to qualify as an E&T work site, the ABAWD must work the required number of hours as described in C. above, and the agency must be under a work site agreement with the local department of social services. 265.02 ADDITIONAL GUIDANCE A. It is allowable to combine work and participation in the ABAWD Services Program for a portion of the month as long as there is an average of 20 hours of work and participation per week. B. The Food Stamp Act specifically excludes job search and job search training programs as qualifying work programs that will keep ABAWDS eligible for FNS benefits. However, the act does not preclude local departments of social services from requiring ABAWDS to conduct some job search activities while participating in the ABAWD Services Program. In any given month, education and training activities must account for the majority (minimum of 75% or 15 hours) of the time spent in the component.

FOOD AND NUTRITION SERVICES CERTIFICATION

ELIGIBILITY REQUIREMENTS FNS 270 CONTROLLED SUBSTANCE FELONS

1 Section 270 Change #18-2021 September 20, 2021 FNS 270 Controlled Substance Felons Change #18-2021 September 20 2021 270.01 REQUIREMENT FOR CONTROLLED SUBSTANCE FELONS A. The following individuals are considered Controlled Substance Felons and are permanently disqualified from receiving FNS benefits unless they meet the exception listed in FNS 270.02 Exceptions to Permanent Disqualification: 1. An individual who both committed and was convicted under federal or State law on or after August 23 , 1996, of any offense classified as a felony by the law of the jurisdiction involved with an element of the possession, use, or distribution of a controlled substance; or 2. In New Jersey anyone convicted of a drug related crime and sentenced to serve one year or more in prison is considered a drug felon for FNS purposes. B. Things to consider when determining Controlled Substance Felons eligibility: 1. This includes Supplemental Security Income (SSI) and SNAP recipients. 2. The justice system often combines two or more charges together to form a Habitual Felon charge. Do not consider the Habitual Felon charge itself, you must consider the individual charges that make up the Habitual Felon charge. 3. Postponed convictions are not considered convictions while in the postponed period. 4. Deferred prosecutions are not considered convictions until the deferral is removed. 5. Only the drug related convictions are countable. Charges for probation or parole violations stemming from the drug felony conviction are not counted. C. Controlled Substance Felons provisions do not apply to the following individuals: 1. Individuals convicted of a controlled substance felony offense committed on or before August 22, 1996. 2. Individuals convicted of a felony offense other than a controlled substance felony offense. 3. Individuals with “deferred prosecutions” as these individuals have not been convicted until the deferral is removed.

FOOD AND NUTRITION SERVICES CERTIFICATION

ELIGIBILITY REQUIREMENTS FNS 270 CONTROLLED SUBSTANCE FELONS

2 Section 270 Change #18-2021 September 20, 2021 D. Client’s Statement: 1. Applicants are required at application and recertification to sign a statement declaring whether any FNS unit member has been convicted of a drug-related felony committed on or after August 23, 1996. The statement is included in all state approved applications and recertification forms. 2. Impose disqualification based on client's statement of ineligibility or upon verification through Department of Correction OVS or other reliable sources. 270.02 EXCEPTIONS TO PERMANENT DISQUALIFICATION A. An individual convicted of a Class H or I felony that involved possession, use, or distribution of a controlled substance committed on or after August 23, 1996, in North Carolina may reestablish eligibility for FNS benefits if they meet both conditions listed in 1 and 2 below: 1. Met the Minimum Disqualification Period; and a. Individuals that were committed to custody may regain eligibility for FNS benefits six months after release from custody, if all other requirements are met. Example: Joe Doe was convicted of a Class H felon in North Carolina on June 5th. Joe was committed to custody and later released on August 3rd. The minimum disqualification period for Joe is August 3rd to February 2nd. Joe may regain eligibility effective February 3rd. b. Individuals that were never committed to custody may regain eligibility for FNS benefits six months after the date of conviction, provided there has been no additional controlled substance felony convictions within six months of the first conviction and all other requirements are met. Example: Joe Doe was convicted of a Class H felon in North Carolina on June 5th. Joe was put on probation and was never committed to custody. The minimum disqualification period for Joe is June 5th to December 4th. Joe may regain eligibility effective December 5th. c. If an individual is convicted of more than one Class H or Class I controlled substance felony over a period of time, the six-month disqualification rule still applies from the date of the most recent conviction. Example: Joe Doe committed a Class H felon on June 5th and another on July 20th. Joe was convicted for both charges North Carolina on August

FOOD AND NUTRITION SERVICES CERTIFICATION

ELIGIBILITY REQUIREMENTS FNS 270 CONTROLLED SUBSTANCE FELONS

3 Section 270 Change #18-2021 September 20, 2021 25th. Joe was put on probation and was never committed to custody. The minimum disqualification period for Joe is August 25th to February 24th. Joe may regain eligibility effective February 25th. d. If a subsequent conviction of a Class H or I controlled substance felony occurs during the six-month disqualification period, the individual is ineligible to receive FNS benefits until six months has elapsed from the most recent conviction. Example: Joe Doe was convicted of a Class H felon in North Carolina on June 5th. Joe was put on probation and was never committed to custody. The minimum disqualification period for Joe is June 5th to December 4th. Joe committed another Class H felon in North Carolina on November 6th and was convicted on December 3rd and placed on probabtion. Joe’s new minimum disqualification period is December 3rd to June 2nd. Joe may regain eligibility effective June 3rd. e. If an individual is convicted of a violation of probation or parole related to a Class H or I controlled substance felony the six-month disqualification period begins with the original date of conviction or release, not from the date of the probation or parole violation. Example: Joe Doe was convicted of a Class H felon in North Carolina on June 5th. Joe was put on probation and was never committed to custody. Joe was found in violation of his probation and committed to custody on August 3rd and released on September 3rd. Because Joe was committed to custody for probation violation and not a drug charge, Joe’s minimum disqualification period does not change. The minimum disqualification period is June 5th to December 4th. 2. After serving the minimum disqualification period per FNS 270.02 A. 1. the individual may regain eligibility if they meet the following requirements: a. The individual cannot be determined eligible to receive FNS benefits until notice of compliance is received from the Area Mental Health Authority (AMHA). Only the AMHA may determine if the controlled substance felon has meet the requirement to participate. b. Individuals already participating in drug and alcohol treatment programs must be referred to the AMHA for evaluation.

FOOD AND NUTRITION SERVICES CERTIFICATION

ELIGIBILITY REQUIREMENTS FNS 270 CONTROLLED SUBSTANCE FELONS

4 Section 270 Change #18-2021 September 20, 2021 c. When notified that the individual has successfully completed, or has continuously participated in, a required substance abuse treatment program as determined appropriate by the AMHA. Take the following actions: i. If the AMHA determines no ongoing treatment is appropriate and the individual has complied: • The disqualification is considered cured and ongoing participation a treatment program is not required. • Once considered cured, do not disqualify indivudals for the same conviction again. The disqualification is cured and the same conviction cannot be considered a condition of eligibility in future eligibility determinations. ii. If the AMHA determines ongoing treatment is appropriate and funds and programs are available they may determine that participation in an ongoing treatment program is a condition of compliance: • The disqualification is considered cured as long as the individual successfully participates in the ongoing treatment as determined by the AMHA. • If the AMHA determines the individual is no longer successfully participating in the treatment program, the individual may be disqualified again for the same conviction. • If the AMHA determines the individual has successfully completed the ongoing treatment program and is no longer required to participate, consider the disqualification cured and the same conviction cannot be considered a condition of eligibility in future eligibility determinations. NOTE: There is a co-payment for outpatient behavioral health services for individual who receive Medicaid benefits. On November 1, 2010, Medicaid implemented a new co- payment requirement. A co-payment of $3.00 will be charged for clinic and outpatient services including visits for outpatient behavioral health services. Providers may bill the patient for the applicable co-payment amount, but may not refuse services for inability to pay co-payment. 270.03 REFERRING INDIVIDUALS TO AREA MENTAL HEALTH

FOOD AND NUTRITION SERVICES CERTIFICATION

ELIGIBILITY REQUIREMENTS FNS 270 CONTROLLED SUBSTANCE FELONS

5 Section 270 Change #18-2021 September 20, 2021 A. For those individuals convicted in North Carolina determine the classification of the controlled substance felony as follows: 1. Use available information in the Department of Corrections Inquiry. 2. Contact the individual’s parole or probation officer. 3. Use any resource available to your agency such as contacting the Clerk of Court. (Sometimes the Clerk of Court can provide a criminal record check with the full name of the individual; however, there may be a fee charged for this service.) B. At application, reapplication, full recertification, and when a new household member is reported. Address the following questions: 1. Has anyone in your home been convicted since August 22, 1996, of a controlled substance felony offense that was committed on or after August 23, 1996? If the answer to this question is “no,” accept the FNS unit’s written statement at application, reapplication, or recertification, unless questionable. Accept the FNS unit’s verbal statement if a change in household composition is reported by telephone, and the FNS unit indicates that no FNS unit member has a controlled substance felony. 2. Was the conviction classified as a Class H or Class I controlled substance felony charge? Note: Individuals who have been convicted of a felony class other than H or I continue to be permanently disqualified from participating in FNS. 3. Was the conviction in North Carolina? Note: Individuals who have been convicted outside North Carolina continue to be permanently disqualified from participating in FNS. 4. Has it been at least six months since their release from custody, or if they were never committed to custody, has it been six months since the date of conviction? If the answer to any or all of the above questions is “yes,” verify the individual’s status as a Class H or I controlled substance felon. Verify that the individual has not been convicted of any other controlled substance felony offense during the six-month period of ineligibility. If the FNS unit answers no to all of the questions, determine eligibility based on eligibility criteria discussed in Section 200, Eligibility Requirements.

FOOD AND NUTRITION SERVICES CERTIFICATION

ELIGIBILITY REQUIREMENTS FNS 270 CONTROLLED SUBSTANCE FELONS

6 Section 270 Change #18-2021 September 20, 2021 C. Obtain a signed DSS-8219 Consent For Release of Confidential Information. The signed release is necessary in order for the substance abuse professional to notify the county of the individual’s progress with his treatment plan. D. Refer the individual to the local AMHA for assessment. Mental Health staff determines which substance abuse program is appropriate for the individual or determines treatment is not warranted. Refer the individual even though he may already be in a treatment program required by the court as the determination cannot be made by any other individual or organization. E. Verify compliance before approving benefits since assessment and/or participation in a treatment program is an eligibility requirement. F. Disqualify the individual from FNS if: 1. Mental Health provides notification that the individual has failed to follow through with the required assessment and/or treatment; or 2. The individual refuses to sign the consent form; or 3. It has not been six months since release from custody or, if the individual was never committed to custody, six months after the date of conviction if there has been no additional controlled substance felony convictions. G. Add the disqualified individual back to the FNS case when the disqualification ends. 1. For applications, add the disqualified individual to the FNS case if it has been six months since his release from custody. If the individual was never committed to custody, add the disqualified individual six months after the date of conviction if there are no additional controlled substance felony convictions and the treatment provision is met. EXAMPLE: The individual was convicted on April 4 and was not committed to custody. The earliest he could be eligible for FNS benefits would be October 4. 2. For ongoing cases, add the disqualified individual to the FNS case the month following his sixth month after release from custody. If the individual was never committed to custody, add the disqualified individual in the month following his six months after conviction if there have been no additional controlled substance felony convictions and the treatment provision is met.

FOOD AND NUTRITION SERVICES CERTIFICATION

ELIGIBILITY REQUIREMENTS FNS 270 CONTROLLED SUBSTANCE FELONS

7 Section 270 Change #18-2021 September 20, 2021 EXAMPLE: The individual was convicted on April 4 and was not committed to custody. The earliest he could be added to the FNS case would be November 1. 270.03 REACTING TO CHANGES A. The FNS unit is not required to report a controlled substance felony conviction. If the FNS unit fails to report the conviction during the certification period, do not establish a claim as this is not considered a reportable change. B. If a substance abuse felony is reported by a third-party source, refer to Section 515 of the Food and Nutrition Services Certification Manual and follow the appropriate procedures for changes reported by a third-party source. C. When an individual’s disqualification period ends, treat as a change in situation. Add the individual to an ongoing case effective the first day of the month following the disqualification period. EXAMPLES: 1. Client applied for FNS benefits. Client was convicted on September 5, 1999, of a Class H controlled substance felony offense committed on June 15, 1999, in N.C. He was never incarcerated, and he has not been convicted of another controlled substance felony offense during the six-month waiting period. The AMHA determined that treatment is not necessary. If he meets all other eligibility criteria, the client may be eligible for FNS benefits effective March 5, 2000. 2. Client was convicted on September 5, 1999, of a Class I controlled substance felony offense committed on June 15, 1999, in N.C. He was incarcerated until December 1, 1999, and he has not been convicted of another controlled substance felony offense during the six-month waiting period. The AMHA determined that treatment is necessary. If he meets all other eligibility criteria and completes the treatment program, he may be eligible for FNS benefits effective June 1, 2000. 3. Client was convicted on September 5, 1999, of a Class H controlled substance felony offense committed on June 1, 1999, in Virginia. He is permanently disqualified from FNS because he has a drug-related felony outside of N.C. 4. Client was convicted on September 2, 1997, of a controlled substance felony offense committed on July 1, 1996. He is not disqualified from FNS because he committed the felony prior to August 23, 1996.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

1 Section 300 Change #01-2022 January 11, 2022 FNS 300 SOURCES OF INCOME Change #01-2022 January 11, 2022

300.01 TYPES OF INCOME A. Earned Income Earned income is payment for labor or services rendered from paid employment or business ownership. Some common examples of earned income include wages, salaries, tips, and self-employment. B. Unearned Income Unearned income is all income that is not earned from one’s job or from one’s business. Some common examples of unearned income include contributions, railroad retirement, Social Security, and Veteran’s benefits. C. Lump sum Payments Earned or unearned income from any source that is received in a lump sum payment is not countable as income. Some types of lump sum payments include but are not limited to: • Supplemental Security or Social Security back payments received in one lump sum payment, • Federal or State tax returns, • Stimulus payments, • Insurance settlements. 300.02 SOURCES OF INCOME CHART The sources of income chart list the most common types of income available to the Food and Nutrition Services (FNS) unit. It would be impossible to list every income type, if a worker encounters a type of income that is not listed in the chart, they should use their prudent person concept to determine the type of income and verification required. Different organizations have different names for programs funded by the same source. It is necessary in those circumstances to determine the source of the income to determine if it is countable. Example: A FNS unit member works for Helping Hands Services and states they were told the income would not count for FNS. The worker contacts the employer and verifies that the source of the income is Title V of the Older Americans Act. The

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

2 Section 300 Change #01-2022 January 11, 2022 worker determines that the income is not countable and documents the record to indicate the income is not countable. If the worker is unable to determine the type of income, their supervisor or other authorized personnel may submit a question to their Operational Support Team representative for assistance. Source of Income Description Count Type Reference Section -A- Active Corps of Executives (ACE) Volunteer organization where executives in business donate their time in order to assist small businesses in the United States with planning, strategy, and marketing. Established in 1969 and is affiliated with the Service Corps of Retired Executives, or SCORE. N -- -- Adoption Assistance or Subsidy Adoption assistance programs provide payments and/or services for children whom unassisted adoption is unlikely because of age, ethnic background, physical, mental or emotional disability, etc. Usually adoption assistance will be formalized in a written agreement between the adopting parents and the agency involved. Y U -- Adult Developmental Activities Program (ADAP) A program that provides long- term care clients appropriate opportunities to learn skills in center or community-based settings. N -- -- Aid to Families with Dependent Children (AFDC) See Work First Family Assistance Y U 315.36 Alien Sponsor’s Income A sponsor is a person who signed an affidavit or other statement accepted by the U.S. Citizenship and Immigration Service (USCIS) agreeing to support an alien as a Y U 315.02

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

3 Section 300 Change #01-2022 January 11, 2022 condition of the alien's admission for permanent residence. A sponsor is an individual, not an organization. Alimony / Spousal Support Alimony is money paid by one spouse to the other either during the divorce process or after. Once referred to exclusively as alimony, it is now more commonly called Spousal Maintenance or Spousal Support. Y U -- Americorps Payments Payments received for services performed through the AmeriCorps organization. N -- -- Annuities (if paid annually, average over 12 months) Annuities are paid yearly or at specified intervals. They may be purchased from an insurance company or by an employer for services rendered, sometimes referred to as retirement plans. Y U -- Attendant Care Payments Payments for attending to individuals with special needs that require assistance with activities of daily living. Y U 315.03 -B- Basic Allowance for Quarters (BAQ) (Military Pay) BAQ is designed to provide uniformed service members housing compensation based on housing costs in each local market. Y E 315.24 Benefit Diversion Cash payment assistance alternative to Work First for families with a temporary non- recurring situation associated with employment or other sources of financial stability. N -- -- Black Lung Benefits Brown Lung Benefits Black Lung Benefits Act (BLBA) is administered by the Office of Workers’ Compensation Programs (OWCP). The Act provides for monthly payments to and medical treatment for coal miners totally disabled from Y U --

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

4 Section 300 Change #01-2022 January 11, 2022 pneumoconiosis (black lung disease) arising from their employment in or around the nation's coal mines. Brown Lung Benefits Act - Directs the Secretary of Health, Education, and Welfare to pay benefits to any textile worker and to the surviving dependents of any such worker whose death was caused who has been totally disabled by chronic dust disease of the lung arising out of employment in a textile plant. Boarders Income from individuals living with others and paying reasonable compensation to the others for lodging and meals (excluding residents of a commercial boarding house). Y E -- Bonus Pay Money given by the employer to an employee in addition to employee’s regular pay. Y E 315.04 Bureau of Indian Affairs (BIA) Educational Aid Educational Assistance received through the Bureau of Indian Affairs N -- -- -C- Cafeteria Plans and Flexible Benefits Monetary credits available to the employee to be used for a variety of things such as health insurance. N/Y U 315.05 Campaign Contributions Donations towards a political campaign. N -- -- Capital Gains The actual capital gain from the sale of capital good or equipment. Y E 315.06 Census Income (Permanent Employees) This is earnings received by permanent census employees. Y E 315.35 Census Income (Temporary Employees) This is earnings received by temporary census employees. Note: Exemptions to temporary census income are periodically allowed by Y E 315.35

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

5 Section 300 Change #01-2022 January 11, 2022 USDA. Dear County Director Letters will be issued to inform of any exemption periods. Child Care Wages Self-employment income. Y E 315.28 Child Nutrition Act of 1966 Assistance Value This act extended, expanded, and strengthened the school lunch program to more effectively meet the nutritional needs of our children. N -- -- Child Support Child support is a payment made by a child’s absent parent which is available to meet the child’s basic needs. It may be paid voluntarily, under a court order or enforced in compliance with a State agreement under title IV-D. Y U 315.08 College Work Study Federal Work-Study that provides part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay education expenses. N -- 315.09 Commissions A fee paid to an agent or employee for transacting a piece of business or performing a service Y E 315.35 Community Service Administration’s Energy Crisis Assistance A crisis assistance component through their Low Income Home Energy Assistance Program (LIHEAP). N -- -- Community Spouse/Dependent Income Allowance (payments received from an institutionalized Medicaid recipient) The community spouse may keep one-half of the couple's total "countable" assets up to a limit set by Medicaid policy. Called the "community spouse resource allowance," this is the most that a state may allow a community spouse to retain without a hearing or a court order. Y U --

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

6 Section 300 Change #01-2022 January 11, 2022 Contract Sales paid in installments for the sale of a resource. Agreement to sell something in exchange for installment payments made over time. Y U -- Contract Wages This is money paid to an individual, such as teachers and other school employees, based on a written or verbal agreement (contract). Y E 315.10 Contributions Cash or monetary gifts including charitable contributions given on a regular basis to meet FNS unit’s needs. Count only if recurring. Y U 315.07 Court Ordered Restitution Restitution is an order of the court by which offenders are held accountable for the financial losses they caused to the victims of their crimes. Y U 315.12 Crisis Intervention Program (CIP) Payments Federally funded program that assists individuals and families who are experiencing a heating or cooling related crisis. N -- -- -D- Dependent Care Payments Payments received to care for a FNS unit member due to disability. Y U 315.13 Disability Payments (Other than SSI or Social Security) Payments made by a federal, state or private entity to an individual who does not have the ability to engage in substantial gainful activity (SGA). Does not include SSI. Y U -- Disaster Relief Act of 1974 Assistance Payments Includes federal emergency situation such as disaster, natural catastrophe, or emergency that the President determines as needing federal assistance. N -- -- Domestic Employment (Self-Employment) Employment in domestic services such as housekeeping. Y E 315.14 Domestic Volunteer Service Act of 1973 Payments Includes Active Corps of Executives (ACE), Service Corps of Retired Executive (SCORE), AmeriCorps and VISTA Payments, Retired Senior Volunteer Y U 315.34

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

7 Section 300 Change #01-2022 January 11, 2022 Program (RSVP), Senior Companion Program. -E- Earned Income Tax Credit A refundable tax credit for low- to moderate-income working individuals and couples, particularly those with children. N -- -- Educational Assistance not designated for room and board. Includes federal assistance including Pell Grants, and assistance from civic groups, educational institutions, and athletic scholarships. Includes Title VII and Bureau of Indian Affairs Educational Aid. N -- 315.15 Educational Assistance designated for room and board. Includes federal assistance including assistance from civic groups, educational institutions, and athletic scholarships. Includes Title VII and Bureau of Indian Affairs Educational Aid. Y U 315.15 Education Stipend Fixed and regular payments for services rendered in an educational setting. Does not include stipends for non- students. N -- -- Energy Assistance Payments Includes Community Service Administration's Energy Crisis Assistance, LIEAP, CIP, Project Share, (Progress Energy), and Utility Assistance Payments (HUD). N -- -- Experimental Housing Allowance Program (EHAP) Payments Special Housing improvements programs and grants; such as HUD payments.

N -- -- -F- Family Subsistence Supplemental Allowance Program established to supplement a military member's income to a high enough level so that the member's family doesn't need to get benefits under the United States Department of Y E 315.24

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

8 Section 300 Change #01-2022 January 11, 2022 Agriculture (USDA) Supplemental Nutrition Assistance Program. Farm Income (gross sales, non-excluded crop insurance settlements, ASCS payments, and capital gains) Self-employment income derived from farming. This can include but not limited to crops, fish, and livestock. Y E 315.28 Federal Crop Insurance Corporation (FCIC) Payments to farmers that experience crop losses. N -- 315.16 Federal Emergency Management Act (FEMA) Payments Includes federal emergency situation such as disaster, natural catastrophe, or emergency that the President determines as needing federal assistance. N -- -- Federal Employee’s Compensation Act (FECA) Benefits Provides compensation benefits to Federal employees for work- related injuries or illnesses and to their surviving dependents if a work-related injury or illness results in the employee’s death. Y U -- Federal Income Tax Refunds

N -- -- Food Assistance Includes food subsidies, Free and Reduced Lunch Program, National School Lunch Act, Nutrition Program for the Elderly, Food Stamps and Surplus Commodities. N -- -- Foster Care Payments

Including foster care payments for individuals age 18 and up. Financial compensation from the placement agency for a foster child's room, board, and other living expenses. Note: Payments are countable if child is a member of the FNS Unit. If child is not included, exclude payments. Y U 315.17 Foster-grandparents Program Volunteer Services (Title II) Provides grants to qualified agencies and organizations for the dual purpose of engaging persons 60 or older, with limited incomes, in volunteer service to meet critical community needs N -- --

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

9 Section 300 Change #01-2022 January 11, 2022 and to provide a high quality volunteer experience that will enrich the lives of the volunteers. -G- Gaming Proceeds, per Capita proceeds to Members of the Eastern Band of Cherokee Nation semi- annually (prorate over the six-month period between payments) Bi-annual payment received from the operation of casino on tribal land. Y U 315.18 General Assistance (GA) Payments Short-term payments to clients through DSS. Count if ongoing or recurring. Do not count one-time lump sum payments. Y U -- GI Bill Income The GI Bill provides educational assistance to servicemembers, veterans, and their dependents. N -- 315.19 Gifts (Monetary) Money given voluntarily by one person to another without compensation. Y U 315.07 Guardianship Payments Note: Payments are countable if child is a member of the FNS unit. If child is not included, exclude payments Financial assistance to caregivers who assume legal guardianship of a child in out-of-home care. Y U 315.17 -H- Held Wages Wages held at the employee’s request in the month the wages would otherwise be paid. Y E 315.35 Home Produce for household’s consumption Produce grown or raised for personal consumption. If sold for compensation, count as earned income. N -- -- Housing Improvement Grants Grants program to promote improvement of lower income housing. N -- -- -I- In-kind Income In-kind donations which are not in the form of direct cash N -- --

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

10 Section 300 Change #01-2022 January 11, 2022 payments to applicant/recipients. This may include food, clothing, furniture contributions, in-kind military benefits and vendor payments. Does not include instances when individuals use their business to pay for such types of items. In- kind donations do not include direct cash payments to applicant/recipient. Independent Living Initiatives of Title IV-E of the Social Security Act (payments or services provided) Currently known as the John Chafee Foster care independent act. Builds a network of service so the child will have ongoing connection with family, community, employer’s education, financial assistance, skills training, and other resources to facilitate the transition to adulthood. N -- -- Indian Payments (All Types) Payments to Indian tribe members as permitted by federal law. Does not include per capita gaming proceeds (unearned income). Y U 300.03 Individual Development Accounts (IDA) Withdrawn Funds Interest Accrued on IDA as long as it is paid into the IDA IDAs are special bank accounts designed to help an individual save for education, purchase a home or start a business. Includes Plan for Achieving Self- Support (PASS) Account Deposit, an SSI provision to help individuals with disabilities return to work. N -- -- Infrequent/irregular Income that doesn’t exceed $30 in a quarter

N -- 315.07 Inheritance Note: Lump sums are not countable as income but as resource. An inheritance payment is cash received as the result of someone's death. Count inheritance paid in installments, not in a lump sum. Y U 315.20

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

11 Section 300 Change #01-2022 January 11, 2022 Installment Payments received for the sale of a resource

Y U 315.21 Insurance Settlements Installment payments received from a settlement with an insurance company Y E 315.22 Interest and Dividend Income Interest paid from stocks, bonds, bank accounts and other Investments including dividend payments from a life insurance company’s annual surplus earnings. Y U -- -J- Job Corp This is income received while participating in an education and vocational training program administered by the U.S. Department of Labor. N -- -- Jump Pay (Military)

Y E 315.24 Jury Duty Payments This is income received while participating in jury duty or witness pay. Does not include witness in professional capacity, which would count as earned income. N -- -- -L- Legally Obligated Money payable to any FNS unit member but diverted to pay an expense. Money that is otherwise payable to a member of the FNS unit but is diverted by the provider of the payment to a third party for a household expense, shall be counted as income and not excluded. Y U 315.23 Loans A loan is not considered income. This applies to legally binding loan agreements as well as verbal agreements between private parties. N -- -- Long Term Care Insurance Payments Long Term Care (LTC) insurance is considered a third-party payment and can help pay for skilled nursing care, domiciliary level of care and/or home care. N -- --

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

12 Section 300 Change #01-2022 January 11, 2022 A Long-Term Care policy is a contractual agreement that the owner can activate at their own discretion, therefore it is not considered a benefit that the A/B must activate. Longevity Pay Annual compensation to an employee based on seniority. Count if reasonably expected or will reoccur during the certification period. Y E 315.35 Lottery / Gambling / Bingo Winnings (if paid annually, average over twelve months.) Count only if received on a regular basis. One-time only count as resources Gambling, lottery and prizes won in a game of chance lottery or contest. Y U -- Low Income Energy Assistance Program (LIEAP) Payments Programs to assist households with heating, cooling, water, and waste water expenses. N -- -- Lump Sum Payments (non-recurring) (including, but not limited to income tax refunds, rebates, or credits, retroactive on- time lump sum payment of social security, SSI, Railroad retirement benefits, and unemployment insurance; retroactive lump-sum WFFA/TANF payments; annual VA disability pension adjustments; lump-sum insurance settlements; and refunds of security deposits on rental property or utilities) This is income that is received in a one-time payment and is nonrecurring unless exceptions noted in specific income type. Count as resource, not income. Severance pay is not considered a lump sum payment. N -- --

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

13 Section 300 Change #01-2022 January 11, 2022 Count as a resource and use actual amount received -M- Migrant Income If the FNS unit receives one payment for work performed by all FNS unit members, do not count earnings of children age 17 or younger who are not the head of household and attending elementary or secondary school after academic breaks. Prorate equally among the persons who worked. Do not count the children’s prorated share Y E 315.35 Military Allotments Benefits received by dependents of military personnel. Y U 315.24 Military Clothing Maintenance Allowance (CMA)

N -- 315.24 Military Pay – Including: • Base Pay • Basic Pay • Basic Allowance for Housing (BAH) • Basic Allowance for Quarters (BAQ) • Basic Allowance for Subsistence (BAS) • Bonuses • Combat Pay • Career Sea Pay • Enlistment Bonus • Family Subsistence Supplemental Allowance (FSSA) • Incentive Pay • Family Allowances • Flight Pay • Jump Pay • Leave • Living Allowances Y E 315.24

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

14 Section 300 Change #01-2022 January 11, 2022 • Reenlistment Bonus • Separate Rations • Sea Duty • Special Pay • Variable Housing Allowance (VHA)

Military Mandatory Salary Reduction to Fund GI bill This is a military income reduction to fund veteran's Education Act of 1984. N -- 315.24 Monthly Disbursements from a Trust Fund (unless set up as an SSI lump sum) Count as unearned income periodic disbursements or dividends received by the FNS unit member from the trust fund when these amounts can be anticipated with reasonable certainty. Y U 315.32 -N- Native American Gaming Proceeds Includes Cherokee tribal per capita income paid to adult family members. Y U 315.18 North America Free Trade Agreement (NAFTA) Payments. Note: Exclude money received as a reimbursement. NAFTA-TRA Program assists workers who lose their jobs or whose hours of work and wages are reduced as a result of trade with, or a shift in production to, Canada or Mexico. Y U -- National Flood Insurance Program (NFIP) Payments The National Flood Insurance Program (NFIP), managed by the Federal Emergency Management Agency (FEMA), enables homeowners, business owners and renters in participating communities to purchase federally backed flood insurance. N -- -- National School Lunch Program The National School Lunch Program (NSLP) is a federally assisted meal program operating in public and nonprofit private schools and residential child care institutions. It provides nutritionally balanced, low-cost N -- --

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

15 Section 300 Change #01-2022 January 11, 2022 or free lunches to children each school day. Nutrition Program for the Elderly Funds, of the Older Americans Act of 1965 These services include both home-delivered meals and healthy meals served in group settings, such as senior centers and faith-based locations. N -- -- -O- On-the-job Training (OJT) Payments On-the-job Training is funded through the federal Workforce Investment Act (WIA). OJT provides an opportunity for employers to receive financial assistance for training new employees in the skills needed to perform effectively. Y E 315.38 Overpayments to the same source Exclude any money used to repay an overpayment to the same source. Example: SSA over payment being recouped out of the SSA. Note: SSI and SSA are both administered by the SSA but are two separate sources of income. N -- -- -P- Pass through Payments This is a payment that a household receives from and uses on behalf of a third-party (e.g. portion of utility bills). Count as roomer income if household receives payments for property it owns. Y/N U 315.25 Pay Advances Count when received. Do not count again when it is deducted from the next pay. Y E 315.35 Payments made to FNS unit members because of their status as victims of Nazi persecution.

N -- -- Pell Grants The Pell Grant is a form of need- based federal financial aid that typically does not have to be N -- 315.15

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

16 Section 300 Change #01-2022 January 11, 2022 repaid. It is awarded by the U.S. Department of Education to help eligible low-income students pay for college costs, including tuition, fees, room and board, and other educational expenses. Pensions

Y U -- Plan for Achieving Self- Support (PASS) Account Deposit

N -- -- Private Disability Benefits

Y E -- Private Unemployment Benefits

Y U -- Produce Grown for the family’s own use

N -- -- Project Share (Progress Energy) Payments

N -- -- Public Service Employment (PSE)

Y E -- -R- Radiation Exposure Compensation Act (October 15, 1990) Payments

N -- -- Railroad Retirement (Administered by the U.S. Railroad Retirement Board, Mart OFC Building, 800 Briar Creek Rd., Rm AA-405, Charlotte, NC 28205- 6903, Phone: 704-344- 6118

Y U -- Refugee Income from Reception and Placement (R&P) and Cuban/Haitian Entrant Programs The R&P Program promotes the successful reception and placement of all persons who are admitted to the US under the U.S. Refugee Admissions Program/Section 207 and is usually provided by local resettlement agencies. Y U --

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

17 Section 300 Change #01-2022 January 11, 2022 These services include help with housing, essential furnishings, food, clothing, and other basic necessities. Special Immigrant Visa Holders (SIVs) may also be eligible for R&P. Refugee Match Grants A federal program designed to help Office of Refugee Resettlement (ORR) eligible populations (refugees, asylees, Cuban/Haitian entrants, certain Amerasians from Vietnam, Victims of Severe Forms of Trafficking, and Special Immigrant Visa Holders (SIVs)) to become economically self- sufficient within 120 to 180 days of program eligibility, without accessing public cash assistance. Participating local resettlement agencies match the ORR grant with cash and in-kind contributions.

Y U -- Reimbursements Includes income to compensate for expenses that do not represent a gain or benefit, such as loans and promissory notes when there is an agreed upon timetable for reimbursement. Y/N E 315.26 Rental Assistance paid to landlord This is income paid by a third party to assist with shelter expenses. Includes government subsidized housing paid to landlord. Only count rental assistance if paid directly to household. N -- -- Rental Income FNS unit member manages property 20 hours or more a week. (Self-employment) Income from property owned directly by the individual, such as heir property. If the claimant has an ownership interest in property that produces income, Y

E/U 315.28

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

18 Section 300 Change #01-2022 January 11, 2022 FNS unit member manages property under 20 hours a week considered unearned income but deductions for cost of doing business allowed. the claimant also has a legal interest in the income. Repatriated Americans Program This is loans which provide temporary assistance for eligible repatriates referred by the U. S. Department of State. N -- -- Representative Payments Monies received by a protective payee and legally intended to be used for the care and maintenance of a beneficiary who is not a household member of the protective payee. If funds are NOT used for care and maintenance of beneficiary, count as unearned income. Y U 315.27 Restitution Under the Civil Liberties Act of 1988

N -- -- Retired Senior Volunteer Program (RSVP) Title II

N -- -- Retirement Benefits Payments paid to someone from a qualified retirement plan. May be set up by employers, insurance companies, the government or other institutions such as employer associations or trade unions. Y U -- Reverse Mortgages A loan allowing certain homeowners to access the equity of their home. N -- -- Royalties Royalties include compensation paid to the owner of property for the use of the property. Y U -- -S- Salary

Y E 315.35

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

19 Section 300 Change #01-2022 January 11, 2022 Scholarships received from Civic Groups, Educational Institutions, and Athletic Scholarships

Y U 315.15 Section 8 Utility Assistance

N -- -- Self-Employment Income from being employed in one's own trade, profession, or business; not by an employer. Including but not limited to: • Uber/Lyft • Door dash /Grub hub • Tupperware • Babysitting • Blood/Plasma Sales • Capital Gains • Commercial Fishing • Consignment Sales from a business • Cosmetology • Crabbing • Home Assembly of Products • Notary Public Fees Earned • Roomers • Seasonal Employment • Selling Recyclables • Yard Work Y E 315.28 Senior companions Payment Program (Title II of the Older Americans Act) Organizations include, but not limited to: • Green Thumb, • National Council on Aging, • National Council of Senior Citizens, • American Association of Retired Persons, • U.S. Forest Service, • National Association for Spanish Speaking Elderly, • National Urban League, • National Council on Black Aging. N -- --

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

20 Section 300 Change #01-2022 January 11, 2022 Service Corps of Retired Executives (SCORES) Payments

N -- 315.15 Severance Pay A severance package is pay and benefits an employee receives when he or she leaves employment at a company. Y U

Shared Expenses (See pass-through payments for exceptions)

N -- 315.25 Sick Pay

Y E 315.35 Social Security Benefits (SSA, OASDI, and RSDI) Note: Count the gross amount of the social security benefit if the benefits are reduced due to federal offset to repay a federal debt. Offset information will not appear on the BENDEX record but may appear on the award letter to the client. (Use BENDEX record for verification.) Income received monthly by retired workers and their surviving spouses / dependents who have paid into the Social Security system during their working years or to those who are permanently and totally disabled according to the strict criteria set forth by the Social Security Administration. Y U -- Special Assistance (SA) Demonstration Project Income allows individuals living at home to receive SA payments State-County Special Assistance for Adults (SA) provides a cash supplement to help low-income individuals residing in adult care homes (such as assisted living) The SA In-Home Program provides assistance to adults who need the level of care in an adult care home but live in a private living situation. This also include SA for the Certain Disabled Y U 315.29 Special Government Compensation Includes but not limited to payments from: • Alaska Native Claims Settlement Act N -- --

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

21 Section 300 Change #01-2022 January 11, 2022 • Payments to Victims of Nazi Persecution • Radiation Exposure Compensation Act • Restitution under the Civil Liberties Act of 1988 • Relocation/Acquisition Act Payments • Wartime Relocation of Civilian's Law Payments • Agent Orange • Allowances paid under the law to Vietnam veterans’ child(ren) born with spina bifida and other birth defects, Eugenics Asexualization and Sterilization Compensation (EASCP). State Income Tax Refunds This is income is due to allowable tax credits which can include EIC and Dependent Care Tax Credits. N -- -- Stipends.

Y U -- Stipends for educational assistance

N -- -- Striker’s Benefits (including picket pay) Does not include strike duty pay, which is earned income. Strike benefits paid by a union to its members are not wages whether or not such members actually do picket duty during the strike or are subject to call to do so. These benefits are paid as a result of the affiliation of the member with the union and are not compensation for services. Y E 315.30 Student Earned Income (Students age 17 and younger who are attending elementary or secondary school and are not the head of household)

N -- --

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

22 Section 300 Change #01-2022 January 11, 2022 Summer Youth Employment Program (WIA)

N -- 315.38 Supplemental Security Income (SSI) The Supplemental Security Income (SSI) program pays benefits to disabled adults and children who have limited income and resources and to people 65 and older without disabilities who meet the financial limits. Administered by SSA. Y U 315.31 SSI retroactive lump- sum installments payable in not more than three installments at six-month intervals

N -- -- Surplus Commodities

N -- -- -T- Temporary Assistance for Needy Families (TANF) (WFFA)

Y U 315.36 TANF-EA (WFFA-EA)

N -- -- Tax Intercept Payments (Support)

N -- -- Telamon Payments

Y U -- Tips

Y E 315.35 Title IV, Educational Aid

Including but not limited to: • Basic Educational Opportunity Grants • Federal Pell Grants • Presidential Access Scholarships • Federal Supplemental Educational Opportunity Grants • State Student Incentives Grants • Federal Direct Student Loan Programs • Federal Perkins Loan Program • Federal Work Study Program • TRIO Grants • Upward Bound N -- --

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

23 Section 300 Change #01-2022 January 11, 2022 • Student Support Services • Robert E. McNair Post- Baccalaureate Achievement • Robert C. Byrd Honors Scholarship • College Assistance Migrant Program • High School Equivalency Program National Early Intervention Scholarship and Partnership Program Title V of the Older Americans Act Funds Includes, but not limited to, Senior Community Service Employment Program (SCSEP), A community service and work- based training program for older workers that provides subsidized, service-based training for low- income persons 55 or older who are unemployed and have poor employment prospects.

Some organizations receiving these funds are but not limited to: • Green Thumb • National Council on Aging • National Council of Senior Citizens • American Association of Retired Persons • U.S. Forest Service • National Association for Spanish Speaking Elderly • National Urban League • National Council on Black Aging N -- -- Title VII Funds

N -- -- Title XX Funds

N -- -- Tobacco Allotment Settlement Buy-out Compensation received as cash payments as a result of the elimination of the tobacco quota or allotment system. Include as earned income if paid in annual payments. Y E --

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

24 Section 300 Change #01-2022 January 11, 2022 Trade Readjustment Benefits Trade Readjustment Allowances are income support payments to individuals who have exhausted Unemployment Compensation and whose jobs were affected by foreign imports as determined by a certification of group coverage issued by the Department of Labor. Y U -- Training Allowances from Vocational and Rehabilitative Programs recognized by federal, State, and local governments (except WIOA)

Y E -- Trust Funds and Dividends from Trust Funds Dividends paid from a trust fund. Y U 315.32 -U- Unemployment Insurance Benefits (UIB) Note: If taxes or child support are deducted, count gross amount. Public or private income received by an individual as compensation for loss of employment due to layoff, suspension, or firing. It may include additional amounts paid by unions or employers. Y U -- Unemployment Insurance Benefits received in a Disaster

N -- -- Uniform Relocation Assistance and Real Property Acquisition Act of 1970 Reimbursements

N -- -- Utility Assistance Payments (HUD or Section 8)

N -- -- -V- Vacation Pay

Y E/U 315.35 Vendor Payments

N -- 315.33 VA Educational Benefits and GI Bill Income received by veterans for educational expenses. For FNS this does not include the N -- --

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

25 Section 300 Change #01-2022 January 11, 2022 monthly housing allowance (MHA) under the Post 9/11 GI Bill. Veterans Administration Benefits (VA) Including: • Pension and Compensation • Aid and Attendance • Aid to the Homebound • Caregiver’s Stipend Program • Reduced Improved Pension • Unreimbursed Medical Expenses

Pension-supplemental income through veterans’ pension and survivor benefit programs. Compensation-Compensation for veterans at least 10% disabled because of injuries or disease that occurred or were aggravated during active military service.

Aid and Attendance - Additional monthly pension benefit administered by the Department of Veterans Affairs that may be available to wartime Veterans and surviving spouses who have in-home care or who live in nursing homes or assisted-living facilities. Aid to the Homebound - An additional monthly pension benefit administered by the VA when a person is substantially confined to their immediate premises because of permanent disability. Caregiver’s Stipend Program – Stipend provided to caregivers of a veteran injured after September 11, 2001. Reduced Improved Pension - The Improved Disability Pension provides a monthly benefit to certain low-income veterans. Unreimbursed Medical Expenses - Reimbursement from VA for medical bills that the veteran has paid. Y U -- Vocational Rehabilitation

Y U --

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

26 Section 300 Change #01-2022 January 11, 2022 Volunteers in Service to America (VISTA)

Y E 315.34 -W- Wages Note: If wages are garnished for any reason other than to repay a prior overpayment to the current employer, count the gross amount. Wages, salaries, and tips received for performing services as an employee of an employer. Y E 315.35 Wartime Relocation of Civilian’s Law Payments

N -- -- Witness Pay

N -- -- Work First Family Assistance (TANF) Cash payment program for families with children who are low income. Known as TANF on the national level. Y U 315.36 Work First Family Assistance Emergency Assistance (WFFA-EA) This is short term assistance used to alleviate a crisis. N -- -- Work First Employment Services Payments Income received by participants in the program are reimbursements for employment expenses. N -- -- Works for Rent / Room (provided free shelter by landlord)

N -- -- Work Release Payments to dependents from a prisoner who is employed. Y U -- Work Study

N -- 315.09 Worker’s Compensation Benefits resulting from loss of employment due to injury on the job. Y U -- Workforce Investment Act

Y/N E 315.38 -Y- Youthbuild allowances, earnings and payments under Youthbuild of the Housing and Community This is income and payments received under the Youthbuild of the Housing and Community Development Act of 1992. N -- --

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

27 Section 300 Change #01-2022 January 11, 2022 Development Act of 1992

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

28 Section 300 Change #01-2022 January 11, 2022 300.03 PAYMENTS TO CERTAIN INDIAN TRIBES The following Indian Payments are excluded as Income. Therefore, do not count Indian payments to tribes and from sources listed below as income.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

29 Section 300 Change #01-2022 January 11, 2022 Source of Payment -A- Alaska Native Claims Settlement Act Apache Tribe of the Mescalero Reservation Payments Aroostook Band of Micmac Settlement Payments Assiniboine and Sioux Tribes Payments Assiniboine Tribe of Montana Payments Assiniboine Tribe of the Fort Belknap Indian Community, Montana, Per Capita and Interest Payments Assiniboine Tribe of the Fort Peck Indian Reservation, Montana Per Capita and Interest Payments -B- Bad River Band of the Lake Superior Tribe of Chippewa Indians of Wisconsin Payments Blackfeet Tribe Payments Blackfeet Tribe of Montana Payments -C- Cherokee Nation of Oklahoma Payments Cheyenne River Sioux Tribe Payments Chippewas of Lake Superior Per Capita Payments Chippewas of the Mississippi Per Capita Payments Confederated Tribes and Bands of the Yakima Indian Nation Indian Claims Commission Payments Crow Creek Sioux Tribe Payments -D- Devils Lake Sioux Tribe Payments -F- Fond du Lac Reservation Per Capita Payments Fort Belknap Indian Community Payments Fort Belknap Indian Community Montana, Payments -G- Grand Portage Reservation Per Capita Payments Grand River Band of Ottawa Indians Payments Grosvenor Tribe of Montana Payments -H- Hopi Tribal Relocation Assistance Houlton Band of the Maliseet Indians Payments Under the Maine Settlement Act of 1980 -I- Independent Seminole Indians of Florida (Per Capita Payments of $2,000 or Less) Indian Child Welfare Programs Assistance Indian Judgment Fund Act (Per Capita Payments of $2,000 or Less) -K- Keweenaw Bay Indian Community Payments

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

30 Section 300 Change #01-2022 January 11, 2022 Keweenaw Bay Indian Community (L’Anse, Lac Vieux Desert, and Ontonagon Bands) Per Capita -L- Lac Courte Oreilles Band of Lake Superior Chippewa Indians Payments Lac Courte Oreilles Reservation of Wisconsin Per Capita Payments Lac du Flambeau Reservation Per Capita Payments Lower Brule Sioux Tribe Payments -M- Maine Indian Claims Settlement Act of 1980 Payments Miccosukee Tribe of Indians of Florida (Per Capita Payments of $2,000 or Less) Mille Lac Reservation, Minnesota, Per Capita Payments Minnesota Chippewa Tribe Payments -N- Navajo Tribe Payments and Relocation Assistance Payments Nett Lake Reservation (including Deer Creek and Vermillion Lake) Per Capita Payments -O- Oglala Sioux Tribe Payments Old Age Assistance Claims Settlement Act Payments to Heirs (Per Capita Shares of $2,000 or Less) -P- Papago Tribe of Arizona Payments Passamaquoddy Tribe Payments Under the Maine Indian Claims Settlement Act of 1980 Penobscot Nation Payments Under the Maine Indian Claims Settlement Act of 1980 Puyallup Tribe of Indians Settlement Act of 1989 Funds -R- Red Cliff Reservation Per Capita Payments Red Lake Band of Chippewa Funds Rosebud Sioux Tribe Payments -S- Sac and Fox Tribe of Oklahoma Per Capita Payments Sac and Fox Tribe of the Mississippi in Iowa Per Capita Payments Saginaw Chippewa Indian Tribe of Michigan Payments Seminole Nation of Oklahoma Per Capita Payments (Per Capita Payments of $2,000 or Less) Seminole Tribe of Florida (Per Capita Payments of $2,000 or Less) Seneca nation Settlement Act of 1990 Funds Shoshone Bannock Tribes Payments St. Croix Reservation Per Capita Payments -T- Turtle Mountain Band of Chippewas, Arizona, Payments -W- White Earth Band of Chippewa Indians in Minnesota Payments White Earth Reservation Per Capita Payments

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 300 SOURCES OF INCOME

31 Section 300 Change #01-2022 January 11, 2022 White Earth Reservation Land Settlement Act of 1985 Payments

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 305 RULES FOR BUDGETING INCOME

1 Section 305 Change #01-2023 January 09, 2023 FNS 305 RULES FOR BUDGETING INCOME Change #01-2023 January 09, 2023

305.01 GENERAL RULES FOR BUDGETING INCOME When determining countable income for the certification period use the following guidelines: A. Food and Nutrition Services (FNS) uses a prospective, or income averaging, budgeting method to determine eligibility and the benefit amount. B. All income shall be counted in the calendar month the household receives the income unless it is otherwise noted. C. Budget all countable gross earned and unearned income using the same procedures except for income types listed in section FNS 315 Special Budgeting Procedures. D. Representative income is income received during the base period that is considered reflective of the FNS unit’s future income. Representative income is used to calculate and budget a monthly amount that is reasonably expected to be available to the FNS unit during their certification period. E. Nonrepresentative Income is income received during the base period that is irregular, changed, new, or terminated and cannot be reasonably expected to be available to the FNS unit during their certification period. Explore other budgeting methods to calculate and budget a monthly amount that is reasonably expected to be available to the FNS unit during their certification period. F. Exclude any money used to repay an overpayment to the same source. Example: If the individual’s Social Security (SSA) check is garnished to repay an overpayment from previous SSA overpayment, exclude the overpayment amount from the gross income. This is a repayment to the same source. Example: If the individual’s SSA check is garnished to repay a Supplemental Security Income (SSI) overpayment, the gross amount is used. These are not repayments to the same source. Refer to manual section FNS 315 Special Budgeting Procedures for SSI payments. Example: An individual’s private retirement check is garnished to repay a previous overpayment from the same source, exclude the overpayment amount from the gross income. This is a repayment to the same source.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 305 RULES FOR BUDGETING INCOME

2 Section 305 Change #01-2023 January 09, 2023 305.02 Base Periods A. Representative Income: Determine the base period for representative income based on the type of income. Certain types of income that require special base periods, as listed in FNS 315 Special Budgeting Procedures. 1. Timeframe: a. Application and Reapplication: Unless otherwise specified, the base period for income is 30 calendar days prior to the date the application is received. b. Recertification: Unless otherwise specified, the base period for income is 30 calendar days prior to the date the recertification is received. Note: An example has been provided below to understand the base period for income. The chart does not include leap year, therefore some of the days for February and March must be calculated accordingly.

Date of Application From To Date of Application From To Date of Application From To Date of Application From To 1/1 12/2 12/31 2/1 1/2 1/31 3/1 1/30 2/28 4/1 3/2 3/31 1/2 12/3 1/1 2/2 1/3 2/1 3/2 1/31 3/1 4/2 3/3 4/1 1/3 12/4 1/2 2/3 1/4 2/2 3/3 2/1 3/2 4/3 3/4 4/2 1/4 12/5 1/3 2/4 1/5 2/3 3/4 2/2 3/3 4/4 3/5 4/3 1/5 12/6 1/4 2/5 1/6 2/4 3/5 2/3 3/4 4/5 3/6 4/4 1/6 12/7 1/5 2/6 1/7 2/5 3/6 2/4 3/5 4/6 3/7 4/5 1/7 12/8 1/6 2/7 1/8 2/6 3/7 2/5 3/6 4/7 3/8 4/6 1/8 12/9 1/7 2/8 1/9 2/7 3/8 2/6 3/7 4/8 3/9 4/7 1/9 12/10 1/8 2/9 1/10 2/8 3/9 2/7 3/8 4/9 3/10 4/8 1/10 12/11 1/9 2/10 1/11 2/9 3/10 2/8 3/9 4/10 3/11 4/9 1/11 12/12 1/10 2/11 1/12 2/10 3/11 2/9 3/10 4/11 3/12 4/10 1/12 12/13 1/11 2/12 1/13 2/11 3/12 2/10 3/11 4/12 3/13 4/11 1/13 12/14 1/12 2/13 1/14 2/12 3/13 2/11 3/12 4/13 3/14 4/12 1/14 12/15 1/13 2/14 1/15 2/13 3/14 2/12 3/13 4/14 3/15 4/13 1/15 12/16 1/14 2/15 1/16 2/14 3/15 2/13 3/14 4/15 3/16 4/14 1/16 12/17 1/15 2/16 1/17 2/15 3/16 2/14 3/15 4/16 3/17 4/15 1/17 12/18 1/16 2/17 1/18 2/16 3/17 2/15 3/16 4/17 3/18 4/16 1/18 12/19 1/17 2/18 1/19 2/17 3/18 2/16 3/17 4/18 3/19 4/17 1/19 12/20 1/18 2/19 1/20 2/18 3/19 2/17 3/18 4/19 3/20 4/18 1/20 12/21 1/19 2/20 1/21 2/19 3/20 2/18 3/19 4/20 3/21 4/19 1/21 12/22 1/20 2/21 1/22 2/20 3/21 2/19 3/20 4/21 3/22 4/20 1/22 12/23 1/21 2/22 1/23 2/21 3/22 2/20 3/21 4/22 3/23 4/21 1/23 12/24 1/22 2/23 1/24 2/22 3/23 2/21 3/22 4/23 3/24 4/22 1/24 12/25 1/23 2/24 1/25 2/23 3/24 2/22 3/23 4/24 3/25 4/23 1/25 12/26 1/24 2/25 1/26 2/24 3/25 2/23 3/24 4/25 3/26 4/24 1/26 12/27 1/25 2/26 1/27 2/25 3/26 2/24 3/25 4/26 3/27 4/25 1/27 12/28 1/26 2/27 1/28 2/26 3/27 2/25 3/26 4/27 3/28 4/26 1/28 12/29 1/27 2/28 1/29 2/27 3/28 2/26 3/27 4/28 3/29 4/27 1/29 12/30 1/28 3/29 2/27 3/28 4/29 3/30 4/28 1/30 12/31 1/29 3/30 2/28 3/29 4/30 3/31 4/29 1/31 1/1 1/30 3/31 3/1 3/30 April January February March

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 305 RULES FOR BUDGETING INCOME

3 Section 305 Change #01-2023 January 09, 2023

Date of Application From To Date of Application From To Date of Application From To Date of Application From To 5/1 4/1 4/30 6/1 5/2 5/31 7/1 6/1 6/30 8/1 7/2 7/31 5/2 4/2 5/1 6/2 5/3 6/1 7/2 6/2 7/1 8/2 7/3 8/1 5/3 4/3 5/2 6/3 5/4 6/2 7/3 6/3 7/2 8/3 7/4 8/2 5/4 4/4 5/3 6/4 5/5 6/3 7/4 6/4 7/3 8/4 7/5 8/3 5/5 4/5 5/4 6/5 5/6 6/4 7/5 6/5 7/4 8/5 7/6 8/4 5/6 4/6 5/5 6/6 5/7 6/5 7/6 6/6 7/5 8/6 7/7 8/5 5/7 4/7 5/6 6/7 5/8 6/6 7/7 6/7 7/6 8/7 7/8 8/6 5/8 4/8 5/7 6/8 5/9 6/7 7/8 6/8 7/7 8/8 7/9 8/7 5/9 4/9 5/8 6/9 5/10 6/8 7/9 6/9 7/8 8/9 7/10 8/8 5/10 4/10 5/9 6/10 5/11 6/9 7/10 6/10 7/9 8/10 7/11 8/9 5/11 4/11 5/10 6/11 5/12 6/10 7/11 6/11 7/10 8/11 7/12 8/10 5/12 4/12 5/11 6/12 5/13 6/11 7/12 6/12 7/11 8/12 7/13 8/11 5/13 4/13 5/12 6/13 5/14 6/12 7/13 6/13 7/12 8/13 7/14 8/12 5/14 4/14 5/13 6/14 5/15 6/13 7/14 6/14 7/13 8/14 7/15 8/13 5/15 4/15 5/14 6/15 5/16 6/14 7/15 6/15 7/14 8/15 7/16 8/14 5/16 4/16 5/15 6/16 5/17 6/15 7/16 6/16 7/15 8/16 7/17 8/15 5/17 4/17 5/16 6/17 5/18 6/16 7/17 6/17 7/16 8/17 7/18 8/16 5/18 4/18 5/17 6/18 5/19 6/17 7/18 6/18 7/17 8/18 7/19 8/17 5/19 4/19 5/18 6/19 5/20 6/18 7/19 6/19 7/18 8/19 7/20 8/18 5/20 4/20 5/19 6/20 5/21 6/19 7/20 6/20 7/19 8/20 7/21 8/19 5/21 4/21 5/20 6/21 5/22 6/20 7/21 6/21 7/20 8/21 7/22 8/20 5/22 4/22 5/21 6/22 5/23 6/21 7/22 6/22 7/21 8/22 7/23 8/21 5/23 4/23 5/22 6/23 5/24 6/22 7/23 6/23 7/22 8/23 7/24 8/22 5/24 4/24 5/23 6/24 5/25 6/23 7/24 6/24 7/23 8/24 7/25 8/23 5/25 4/25 5/24 6/25 5/26 6/24 7/25 6/25 7/24 8/25 7/26 8/24 5/26 4/26 5/25 6/26 5/27 6/25 7/26 6/26 7/25 8/26 7/27 8/25 5/27 4/27 5/26 6/27 5/28 6/26 7/27 6/27 7/26 8/27 7/28 8/26 5/28 4/28 5/27 6/28 5/29 6/27 7/28 6/28 7/27 8/28 7/29 8/27 5/29 4/29 5/28 6/29 5/30 6/28 7/29 6/29 7/28 8/29 7/30 8/28 5/30 4/30 5/29 6/30 5/31 6/29 7/30 6/30 7/29 8/30 7/31 8/29 5/31 5/1 5/30 7/31 7/1 7/30 8/31 8/1 8/30 May June July August Date of Application From To Date of Application From To Date of Application From To Date of Application From To 9/1 8/2 8/31 10/1 9/1 9/30 11/1 10/2 10/31 12/1 11/1 11/30 9/2 8/3 9/1 10/2 9/2 10/1 11/2 10/3 11/1 12/2 11/2 12/1 9/3 8/4 9/2 10/3 9/3 10/2 11/3 10/4 11/2 12/3 11/3 12/2 9/4 8/5 9/3 10/4 9/4 10/3 11/4 10/5 11/3 12/4 11/4 12/3 9/5 8/6 9/4 10/5 9/5 10/4 11/5 10/6 11/4 12/5 11/5 12/4 9/6 8/7 9/5 10/6 9/6 10/5 11/6 10/7 11/5 12/6 11/6 12/5 9/7 8/8 9/6 10/7 9/7 10/6 11/7 10/8 11/6 12/7 11/7 12/6 9/8 8/9 9/7 10/8 9/8 10/7 11/8 10/9 11/7 12/8 11/8 12/7 9/9 8/10 9/8 10/9 9/9 10/8 11/9 10/10 11/8 12/9 11/9 12/8 9/10 8/11 9/9 10/10 9/10 10/9 11/10 10/11 11/9 12/10 11/10 12/9 9/11 8/12 9/10 10/11 9/11 10/10 11/11 10/12 11/10 12/11 11/11 12/10 9/12 8/13 9/11 10/12 9/12 10/11 11/12 10/13 11/11 12/12 11/12 12/11 9/13 8/14 9/12 10/13 9/13 10/12 11/13 10/14 11/12 12/13 11/13 12/12 9/14 8/15 9/13 10/14 9/14 10/13 11/14 10/15 11/13 12/14 11/14 12/13 9/15 8/16 9/14 10/15 9/15 10/14 11/15 10/16 11/14 12/15 11/15 12/14 9/16 8/17 9/15 10/16 9/16 10/15 11/16 10/17 11/15 12/16 11/16 12/15 9/17 8/18 9/16 10/17 9/17 10/16 11/17 10/18 11/16 12/17 11/17 12/16 9/18 8/19 9/17 10/18 9/18 10/17 11/18 10/19 11/17 12/18 11/18 12/17 9/19 8/20 9/18 10/19 9/19 10/18 11/19 10/20 11/18 12/19 11/19 12/18 9/20 8/21 9/19 10/20 9/20 10/19 11/20 10/21 11/19 12/20 11/20 12/19 9/21 8/22 9/20 10/21 9/21 10/20 11/21 10/22 11/20 12/21 11/21 12/20 9/22 8/23 9/21 10/22 9/22 10/21 11/22 10/23 11/21 12/22 11/22 12/21 9/23 8/24 9/22 10/23 9/23 10/22 11/23 10/24 11/22 12/23 11/23 12/22 9/24 8/25 9/23 10/24 9/24 10/23 11/24 10/25 11/23 12/24 11/24 12/23 9/25 8/26 9/24 10/25 9/25 10/24 11/25 10/26 11/24 12/25 11/25 12/24 9/26 8/27 9/25 10/26 9/26 10/25 11/26 10/27 11/25 12/26 11/26 12/25 9/27 8/28 9/26 10/27 9/27 10/26 11/27 10/28 11/26 12/27 11/27 12/26 9/28 8/29 9/27 10/28 9/28 10/27 11/28 10/29 11/27 12/28 11/28 12/27 9/29 8/30 9/28 10/29 9/29 10/28 11/29 10/30 11/28 12/29 11/29 12/28 9/30 8/31 9/29 10/30 9/30 10/29 11/30 10/31 11/29 12/30 11/30 12/29 10/31 10/1 10/30 12/31 12/1 12/30 October November December September

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 305 RULES FOR BUDGETING INCOME

4 Section 305 Change #01-2023 January 09, 2023 2. Three months: The base period for child support, spousal support and alimony is the three months prior to the month of application or redetermination. Note: Three-month average is only used if the income is received on a monthly basis, for income received more often than monthly see FNS 315 Special Budgeting Procedures for details. 3. Twelve Months: If the income is received annually or from self-employment, the base period is 12 months. B. Nonrepresentative Income: If the income received during the base period is not representative of what the client expects to receive during the certification period: 1. Explore alternative budgeting methods for projecting or averaging income. 2. Based on experience and prudent judgement, determine what budgeting method will be the most representative estimate of the income the FNS unit will receive during their certification period. 3. Clear documentation must be provided to explain why the income is considered nonrepresentative and what income and budgeting method was used to determine countable income. 305.03 ROUNDING PROCEDURES Unless otherwise noted, use standard rounding procedures to round to two decimals (cents). A. Round down when the third decimal is 4 or less. Example: $100.22 X 2.15 = $215.473 round to $215.47. B. Round up when the third decimal is 5 or more. Example: $100.66 X 4.3 = $431.419 round to $431.42. 305.04 DOCUMENTATION PROCEDURES Documentation means the type of verification and summary of the information obtained has been entered in the appropriate evidence in North Carolina Families Accessing Services through Technology (NC FAST). Documentation must be detailed enough that a County,

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 305 RULES FOR BUDGETING INCOME

5 Section 305 Change #01-2023 January 09, 2023 State, or Federal reviewer is able to determine the reasonableness of the determination. The following information must be documented: A. Applicant’s statements regarding available income; including client’s statement of no income. Note: Accept the FNS unit’s signature on the DSS-8207 Application for Food and Nutrition Services, DSS2435 I/R Food and Nutrition Services (FNS) Notice of Expiration Recertification Form, and NC FAST application as their statement of no income. Do not require a separate signed statement. B. The source, amount, frequency, and type of income, and a collateral contact if one is necessary. 1. A collateral contact is a person knowledgeable enough about the information needed to provide an accurate statement of verification. Examples of acceptable collateral contacts may include employers, landlords, social service agencies, migrant service agencies, and neighbors of the household who can be expected to provide accurate third-party verification. Collateral contact verification must include: a. The date; and b. The name of the person spoken to; and c. The title of the person spoken to, if applicable; and d. The method of contact, such as telephone number or email address; and e. The exact information that was verified. C. Copies of correspondence and documents, forms, and notifications if available. D. Any changes to income which are anticipated to occur during the certification period. E. Other facts, information, or dates used to support your eligibility decision. 305.05 VERIFICATION SOURCES AND REQUIREMENTS A. Sources There are four main sources of verification that can be used when determining eligibility.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 305 RULES FOR BUDGETING INCOME

6 Section 305 Change #01-2023 January 09, 2023 2. Electronic verifications received through the Online Verification System (OVS) from the source of the income. This includes but is not limited to Social Security income, Supplemental Security Income Work Number, and Unemployment. NOTE: The Department of Employment Services (DES) is not the source of earned income and cannot be used as verification of wages. 3. Documentary evidence which includes wage stubs, work number, award letters, bank statements, etc. a. The FNS unit has primary responsibility for providing documentary evidence to support statements on the application and to resolve any questionable information. b. The FNS worker must assist the applicant or household in obtaining verifications as needed or if requested by the FNS unit. c. Documentary evidence may be provided in person by the FNS unit to the county, by mail, electronically, by fax, or through an authorized representative. d. Do not require a specific type of verification. Accept any reasonable documentary evidence that adequately proves the information provided by the FNS unit. Client’s statement is acceptable, unless questionable, if the FNS unit states that they cannot obtain the required or mandatory verification 435 Determining Eligibility and the FNS worker takes the following steps: a. The FNS caseworker must try to obtain the information through telephone or electronic means if available. b. If unable to contact by telephone or obtain through electronic means the FNS caseworker must issue a DSS-8650, written request directly with the source of the verification and allow them 10 days to provide the verification. i. If the source of verification refuses to provide the required verification, the worker may use the client’s statement as best available information upon the refusal by the source of verification. ii. If the source of verification fails to provide the required verification, the worker may use the client’s statement as best available information after the expiration of the written request made directly with the source of the verification.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 305 RULES FOR BUDGETING INCOME

7 Section 305 Change #01-2023 January 09, 2023 Note: This section does not apply if the FNS unit does respond to the request for verifications. The FNS unit must specifically state that they cannot obtain the verification. B. Requirements 1. Applications: Verify all statements concerning mandatory 435 Determining Eligibility and required verifications 435 Determining Eligibility made by the FNS unit prior to certification. This includes statements regarding terminated, ongoing, new, or change income received or expected to be received: a. In the base period; or b. In the month of application; or c. Reasonably anticipated during the certification period. 2. Recertification: a. Verify all statements concerning mandatory 435 Determining Eligibility and required verifications 435 Determining Eligibility made by the FNS unit prior to certification. This includes statements regarding terminated, ongoing, new, or change income received or expected to be received: i. In the base period; or ii. In the month of application; or iii. Reasonably anticipated during the certification period. b. Unless the information is incomplete, inaccurate, inconsistent, or outdated, verification is not required for income at recertification if it meets the following criteria: i. The source has not changed; and ii. The amount is unchanged or has changed by $50 or less. Note: The worker should use prudent person concept and reasonable judgement to determine on a case-by-case basis if the information is incomplete, inaccurate, inconsistent, or outdated and document the reason in the NC FAST case file. Example: The FNS household returns their recertification form and states that they are receiving $1256 a month in Social Security

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 305 RULES FOR BUDGETING INCOME

8 Section 305 Change #01-2023 January 09, 2023 income. This is the same amount that is being budgeted in the FNS case. However, when running Online Verification, the BENDEX shows the individual is receiving $1287 in Social Security income. Even though the change is less than $50, the information provided by the FNS household is incorrect and the worker must determine the correct amount prior to recertification. 3. Changes in Situation in an Ongoing Case a. Document the source of the verification in NC FAST evidence and notes as appropriate. b. If available, scan the verification document(s) into NC FAST using the appropriate taxonomy as outlined in NC FAST Help. c. Verify all statements concerning mandatory (FNS 435.01 A.) and required verifications (FNS 45.01 B.) made by the FNS unit prior to effecting the change. If verification is not provided follow procedures outlined in FNS 515.07 Changes with Unclear Information. 305.06 BUDGETING ONGOING INCOME WITH REPRESENTATIVE BASE PERIOD INCOME The budgeting of ongoing income is based on the representative earned or unearned income received by the FNS unit during their base period and no changes are expected to occur up to the point of certification. A. Calculate the ongoing income to be budgeted from each source separately using the following steps. 1. Determine the number of times the income was received in the base period. Remember to use the date the income was paid or made available to the FNS unit. Consider income mailed to the FNS unit as received on the third postal day after the mail date. 2. Add the income received during the base period together. Result is total monthly income. This includes adding in a zero for a pay or benefit period when no income was received in the base period and this is also representative of the next certification period. Do not add zeros if the income is fluctuating or inconsistent. Example: Adding a zero for a pay or benefit period when no income was received in the base period.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 305 RULES FOR BUDGETING INCOME

9 Section 305 Change #01-2023 January 09, 2023 Week 1: $245.32

Week 2: $0

Week 3: $245.32

Week 4: $245.32

Pay period amount: $245.32 + $0 + 245.32 + 245.32 = $735.96/4 3. Divide the total base period income by the number of times the income was received from step 1. Result is the average income. 4. Multiply the average income by the following formulas to convert or project incomes to a monthly amount. • If received weekly, multiply by 4.3 • If received bi-weekly, multiply by 2.15 • If received semi-monthly, multiply by 2 • If received quarterly, divide by 3 • If received monthly, use the monthly gross • If received semi-annually, divide by 6 • If received annually, divide by 12 NOTE: Income received on a daily or sporadic basis may be difficult to project. If the FNS unit’s income is received on a daily or sporadic basis, verify the income received during the prior month. Use this income as a monthly amount. Do not convert the income. Document that the income is received sporadically. If the prior month’s income is not representative of what will be received in the certification period, use best available information and document the reason. B. Budget this income until the next recertification or reported change. Note: While it is important that the FNS worker understands how to calculate monthly income, it is recommended and acceptable to enter information into NC FAST and allow the system to perform the calculations.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 310 BUDGETING NEW, CHANGED, TERMINATED INCOME

1 Section 310 Change #01-2023 January 09, 2023 FNS 310 BUDGETING NEW, CHANGED, TERMINATED INCOME Change #01-2023 January 09, 2023 310.01 CHANGES IN INCOME Caseworkers are required to react to a change in income that is expected to continue for at least one month beyond the month in which the change is reported. A. A change in earned income is defined as: 1. A change in the rate of pay; or 2. An ongoing change in the number of work hours; or 3. A new source of income; or 4. A terminated source of income. B. A change in unearned income is defined as: 1. A change in the award amount (increase or decrease in the number in the WFFA assistance unit; a sanction or penalty in WFFA or SSI; or the annual increase in SSA, SSI, VA, or other retirement, etc.); or 2. A change in the source of income; or 3. A new source of income; or 4. A terminated source of income. 310.02 BUDGETING NEW OR CHANGED INCOME RECEIVED DURING THE BASE PERIOD A. In the base period, if the FNS unit receives a full month of income and all the income received is 30 calendar days prior, the income is considered representative. Budget income as follows: Calculate and convert income: Use the income received during the base period. Calculate and convert the income to a monthly amount using instructions from FNS 305.06 Budgeting Ongoing Income with Representative Base Period Income. Example: The individual began a new job and received two (2) paychecks in the base period. The individual is paid every two weeks. Week 1: $198.55 Week 2: $223.84

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 310 BUDGETING NEW, CHANGED, TERMINATED INCOME

2 Section 310 Change #01-2023 January 09, 2023 Pay period amount: $198.55+$223.84 = $422.39 / 2 = $211.20 Monthly calculation: $211.20 X 2.15 = $454.08 1. Budget the monthly amount based on the type of action being taken. a. Initial application or reapplication: Budget the calculated and converted amount for the month of application and ongoing months. b. Recertification: Budget the calculated and converted amount for the first month of the new certification period and ongoing months. B. In the base period, the individual receives a full month of payments and one or more of the payments received are nonrepresentative. Budget income as follows: 1. Calculate and convert income: Use only the representative payments received during the base period to calculate and convert the income to a monthly amount using instructions from FNS 305.06 Budgeting Ongoing Income with Representative Base Period Income. Example: The individual begins a new job and receives two (2) paychecks in the base period. The first pay partial and is not representative. The second pay is representative of ongoing income. The individual is paid every two weeks. Pay 1: $83.22 Pay 2: $343.84 Monthly calculation: $343.84 X 2.15 = $739.26 2. Budget the monthly amount based on the type of action being taken. a. Initial application or reapplication: Budget the calculated and converted amount for the month of application and ongoing months. b. Recertification: Budget the calculated and converted amount for the first month of the new certification period and ongoing months. 310.03 BUDGETING NEW OR CHANGED INCOME RECEIVED DURING MONTH OF APPLICATION OR RECERTIFICATION A. In the month of application or recertification, the individual receives a full month of payments and all payments received are representative. Budget income as follows:

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 310 BUDGETING NEW, CHANGED, TERMINATED INCOME

3 Section 310 Change #01-2023 January 09, 2023 Calculate and convert income: Use the income received 30 calendar days prior to the date of application or recertification is received. Calculate and convert the income to a monthly amount using instructions from FNS 305.06 Budgeting Ongoing Income with Representative Base Period Income. Example: The individual began a new job and received two (2) paychecks in the month of application. The individual is paid every two weeks. Week 1: $198.55 Week 2: $223.84 Average pay period amount: $198.55+$223.84 = $442.39 / 2 = $211.20 Monthly calculation: $211.20 X 2.15 = $454.08 1. Budget the monthly amount based on the type of action being taken. a. Initial application or reapplication: Budget for the month of application and ongoing months. b. Recertification: Budget for the first month of the new certification period and ongoing months. B. In the month of application or recertification the individual receives a full month of payments and one or more of the payments received are nonrepresentative. Budget income as follows: 1. Calculate and convert income: Use only the representative payments received during the month of application or recertification to calculate and convert the income to a monthly amount using instructions from FNS 305.06 Budgeting Ongoing Income with Representative Base Period Income. Example: The individual begins a new job and received two (2) paychecks in the month of application. The individual is paid every two weeks. Week 1: $83.22 Week 2: $343.84 Monthly calculation: $343.84 X 2.15 = $739.26 2. Actual income: Add all income received during the month of application to calculate the actual income for the month of application.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 310 BUDGETING NEW, CHANGED, TERMINATED INCOME

4 Section 310 Change #01-2023 January 09, 2023 Example: The individual begins a new job and received two (2) paychecks in the month of application. The individual is paid every two weeks. Week 1: $83.22 Week 2: $343.84 Monthly calculation: $83.22 + $343.84 = $427.06 3. Budget the monthly amount based on the type of action being taken. a. Initial application or reapplication: • Budget the actual income received for the month of application. • Budget the calculated and converted monthly amount for ongoing months. b. Recertification: Budget the calculated and converted monthly amount for the first month of the new certification period and ongoing months. C. In the month of application or recertification, the individual has not received any pays but is reasonably anticipated to receive payments during the month. Budget income as follows: 1. Verify the anticipated income by requesting the FNS unit member's hourly pay rate, expected number of work hours per pay period, the pay dates, and frequency of receipt to determine the new/changed income. 2. Calculate and convert income: Use the verification of anticipated income to calculate and convert to a monthly amount. Example: The employer verified that the individual will work 32 hours per week at $10.23 per hour and is paid every two weeks. 32 hours X 2 weeks = 64 hours per pay period 64 hours X $10.23 = $654.72 Monthly calculation: $654.72 X 2.15 = $1407.65 3. Actual income: Use the verification of anticipated income to calculate the monthly amount. Example: The employer verified that the individual worked 33 hours at $10.23 per hour and will receive that pay during the month of application or recertification.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 310 BUDGETING NEW, CHANGED, TERMINATED INCOME

5 Section 310 Change #01-2023 January 09, 2023 Monthly calculation: 33 X $10.23 = $337.59 4. Budget the monthly amount based on the type of action being taken. a. Initial application or reapplication: • Budget the actual income received for the month of application. • Budget the calculated and converted monthly amount for ongoing months. b. Recertification: Budget the calculated and converted monthly amount for the first month of the new certification period and ongoing months. 310.04 BUDGETING NEW OR CHANGED INCOME DURING THE CERTIFICATION PERIOD A. The individual has received at least one (1) full representative pay to date. Budget income as follow: 1. Calculate and convert income: Use only full pay(s) received to project the expected income per FNS 310 Budgeting New, Changed, Terminated Income. Example: The individual begins a new job and has received three (3) paychecks to date. The individual is paid weekly, and the first check is for a partial week and the other pays are for a full week.

Week 1: $198.55 (partial)

Week 2: $223.84 (full)

Week 3: $245.32 (full)

Pay period amount: $223.84 + $245.32 = $469.16 / 2 = $234.58

Monthly calculation: $234.58 X 4.3 = $1008.69 2. Budget the calculated and converted amount the month following the expiration of the DSS-8553 Notice of Adverse Action. B. The individual has not received at least one (1) full representative pay to date. Budget income as follows: 1. Calculate and convert income: Request the FNS unit member's hourly pay rate, expected number of work hours per pay period, the pay dates, frequency of receipt, and date of first pay to determine the new/changed income. Calculate monthly income based on verified information.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 310 BUDGETING NEW, CHANGED, TERMINATED INCOME

6 Section 310 Change #01-2023 January 09, 2023 Example: The individual began a new job and has received one (1) paycheck to date. The paycheck was for a partial week in the amount of $184.44. The employer verified that the individual will work 32 hours per week at $7.25 per hour and is paid every week. 32 hours X $7.25 = $232.00 Monthly calculation: $232.00 X 4.3 = $997.60 2. Budget the calculated and converted amount the month following the expiration of the DSS-8553 Notice of Adverse Action. 310.05 BUDGETING INCOME TERMINATED DURING THE BASE PERIOD A. The individual has terminated income and will receive no pays after the base period. 1. Verify terminated income that occurs in the base period. 2. Do not count income past the base period. 3. Budget the monthly amount based on the type of action being taken. a. Initial application or reapplication: Budget zero for the month of application and ongoing. b. Recertification: Budget zero for the first month of the new certification period and ongoing months. 310.06 BUDGETING INCOME TERMINATED DURING THE MONTH OF APPLICATION OR RECERTIFICATION A. Individual will receive a full month of income during the month of application or recertification. 1. Verify terminated income that occurs in the base period. 2. Calculate and convert income: Use the full pays received to calculate and convert to a monthly amount using instructions from FNS 305.06 Budgeting Ongoing Income with Representative Base Period Income. Example: The individual lost their job during the month of application or recertification. The individual was paid every two weeks and received a full month pays.

Week 1: $423.15 (full) Week 2: $315.27 (full)

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 310 BUDGETING NEW, CHANGED, TERMINATED INCOME

7 Section 310 Change #01-2023 January 09, 2023

Pay period amount: $423.15+$315.27=$738.42/2 = $369.21

Application month calculation: $369.21 X 2.15 = $793.80 3. Budget the monthly amount based on the type of action being taken. a. Initial application or reapplication: • Budget the calculated and converted monthly amount for the month of application. • Budget zero for ongoing months. b. Recertification: Budget zero for the first month of the new certification period and ongoing months. B. Individual will receive only partial month of income in the month of application or recertification. Budget the income as follows: 1. Verify terminated income that occurs in the base period. 2. Actual income: Use the verification of terminated income received to calculate the monthly amount. Example: The individual lost their job and received their last paycheck in the month of application or recertification. The individual will receive one check for the amount of $200.34. 3. Budget the monthly amount based on the type of action being taken. a. Initial application or reapplication: • Budget the actual income for the month of application. • Budget zero for ongoing months. b. Recertification: Budget zero for the first month of the new certification period and ongoing months

310.07 BUDGETING INCOME TERMINATED DURING THE CERTIFICATION PERIOD A. For earned or unearned income, verification of terminated income must be provided prior to removing the income from the FNS budget.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 310 BUDGETING NEW, CHANGED, TERMINATED INCOME

8 Section 310 Change #01-2023 January 09, 2023 1. If verification is provided timely, remove the terminated income from the budget the month after the change becomes known to the FNS worker. 2. If verification is not provided within the 10-day period, remove the terminated income the month after the verification is received. Example 1: The individual lost their job and received their last paycheck in July. The worker requested verification of terminated wages and received them during the month of July. The worker would remove the wages effective August. Example 2: The individual lost their job and received their last paycheck in July. The worker requested verification of terminated wages and did not receive them until the month of September. The worker would remove the wages effective October.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

1 Section 315 Change #01-2022 January 11, 2022 FNS 315 SPECIAL BUDGETING Change 01-2022 January 11, 2022

315.01 AGRICULTURAL STABILIZATION AND CONSERVATION SERVICE (ASCS) CASH PAYMENTS A. The ASCS provides payments for crop losses. These include, but are not limited to, Commodity Credit Corporation and acreage reduction and conservation payments. These payments may be one-time payments or installment payments. Such payments are counted as earned self- employment income except when provided as a loan. Farm loans are excluded from income. B. If ASCS payments are the result of a Presidential declared disaster or emergency, they are excluded from income and resources in accordance with the Disaster Relief Act of 1974 as amended. 315.02 ALIEN SPONSORS A. Calculation of income is dependent on when the sponsor signed or re-signed the affidavit of support. Count as unearned income the full amount of countable income for the sponsor and his spouse (if living together) if the affidavit was signed on or after December 19, 1997. Continue to count this income until whichever of the earliest occurs: 1. The alien becomes a citizen; or 2. The alien has worked or can be credited with 40 qualifying quarters of social security coverage. Beginning January 1, 1997, a quarter in which the wage earner received federal means-tested assistance (Work First Family Assistance [WFFA], Food and Nutrition Services (FNS) benefits, Medicaid, North Carolina Health Choice, or Supplemental Security Income [SSI]) is not counted as a qualifying quarter; or 3. The alien sponsor dies. B. If the sponsor has signed an affidavit for more than one alien, prorate the sponsor’s income among the sponsored aliens. C. If the affidavit of support was signed or re-signed on or after December 19, 1997, deem the income of the sponsor and spouse for three years from the date signed or re-signed as follows. 1. Determine the total monthly countable earned income of the sponsor and spouse. Allow the earned income deduction of 20%. Add the calculated

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

2 Section 315 Change #01-2022 January 11, 2022 earned income to the total countable unearned income of the sponsor and spouse. 2. Subtract the actual payment of alimony and child support paid to individuals not living with the sponsor and spouse. Subtract the FNS income limit for the household size of the sponsor’s family. Include in the sponsor’s household size any dependent that he or his spouse claim or could claim for federal income tax purposes. 3. The remaining income amount is deemed as unearned income to the sponsored alien’s FNS unit. 4. If the sponsor has signed an affidavit for more than one alien, prorate the income from 3. above among the sponsored aliens. 5. Review the income of the sponsor and spouse at each application, recertification, and reported change in situation. D. Battered Aliens If it is determined that the sponsored alien has been battered by a spouse, parent, or member of the spouse or parent’s household, and the battering is the reason the alien is seeking assistance, do not count the sponsor’s (or spouse’s) income for 12 months. After the initial 12 months, deeming from the sponsor will be permanently eliminated provided the battery was recognized by a judge or administrative law judge in a court order or by a prior determination of Immigration and Naturalization Service (INS). Also, it is required that the battered individual no longer live in the same household as the batterer and the battered individual’s FNS unit must continue to need assistance as a substantial result of the battery. The battered individual must provide verification of being battered and of having petitioned INS for permanent resident status. These provisions do not apply if the battered individual lives with the batterer. 315.03 ATTENDANT CARE PAYMENTS A. Determine if the attendant care payment is received as wages by a FNS unit member for care provided to a non-FNS unit member. Count these payments as earned income. B. Determine if the attendant care payment is received as wages paid by one FNS unit member to another FNS unit member. 1. The attendant care payments provided by an outside source, such as a state or federal agency, is to be treated as earned income to the person providing the attendant care.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

3 Section 315 Change #01-2022 January 11, 2022 2. If the attendant care payment is provided by a FNS unit member to another FNS unit member from his/her own pocket, do not count payments to the member providing the care as income. Such attendant care payments are not counted as earned income because the money is moving between FNS unit members. C. Determine if the attendant care payment is received as wages by a FNS unit member for care provided to a FNS unit member and paid by a non-FNS unit member. Count these payments as earned income. EXAMPLE: Household size of two includes adult niece and elderly aunt. They have chosen to receive FNS benefits together. The elderly aunt requires attendant care and niece provides the care. Elderly aunt’s son pays the niece for this care. Count payment to niece as earned income. D. Do not count payments paid by an outside source to a provider for care of a FNS unit member. 315.04 BONUS/VACATION PAY A. Bonus/vacation pay is money given by the employer to an employee in addition to the employee’s regular pay. 1. Count bonus/vacation pay in the month of receipt when the amount and date of receipt can be reasonably anticipated. 2. If bonus/vacation pay was received in the base period, determine if is representative. (This means that the next payment will be about the same amount, and there is some certainty of expected receipt, and the pay will be received during the certification period.) 3. If this pay will be received monthly, anticipate for each month of the certification period. 4. If this pay is received less frequently than monthly and anticipated during the next certification period, review payment history to determine anticipated dates of receipt and payment amounts. Prorate the anticipated gross amount over the certification period. 315.05 CAFETERIA PLANS AND FLEXIBLE BENEFITS Some companies make monetary credits available to employees. The credits may be used for a variety of things, e.g, to buy health insurance, life insurance, annual leave, or sick leave, but the employee cannot elect to receive a cash payment. The credit shows up on the pay stub. If the employee does not use the credits, the employee loses them. These credits are not counted as income as they are not legally obligated and otherwise payable to the employee as earnings.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

4 Section 315 Change #01-2022 January 11, 2022 Under some pay plans an employee can choose to have the employer withold money to pay certain expenses such as child care and medical expenses when they are incurred. If any amount is left at the end of the year, the employee loses the money. The amount withheld is counted as earned income as the money is legally obligated and otherwise payable to the employee. 315.06 CAPITAL GAIN INCOME A. The actual capital gain from the sale of capital goods or equipment is included as income. Determine the actual capital gain as follows. 1. Determine if the FNS unit has capital assets. The following is a listing of capital assets. a. Real property; b. Equipment; c. Machinery; and d. Other items expected to last at least 12 months. 2. Ask the FNS unit if any member has sold or transferred a capital asset. 3. Determine if there was a capital gain realized from the sale or transfer of capital assets. 4. Compute the capital gain as follows. a. Subtract depreciation from the original purchase price of the capital asset to establish the “adjusted basis.” b. Subtract the “adjusted basis” from the sales price to establish the capital gain. EXAMPLE: A farmer purchased a tractor for $3000 in 1984. Over a period of ten years, he claimed $2500 in depreciation on the tractor. In 1994, he sold the tractor for $1100. Purchase Price

$3000 Sales Price $1100 Depreciation Claimed - $2500 Minus Adjusted Basis -$500 Adjusted Basis

$500 Capital Gain $600 B. Budget a capital gain in the same manner as self-employment income. Prorate the gain over 12 months. Count the $600 capital gain as self- employment income prorated over 12 months.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

5 Section 315 Change #01-2022 January 11, 2022 315.07 CASH RECEIVED INFREQUENTLY OR IRREGULAR (CONTRIBUTIONS) Determine if the cash is received infrequently or irregularly. This means that the cash is not expected to exceed $30 per calendar quarter and cannot be reasonably anticipated to recur. A. Do not count infrequent/irregular income B. If the income does not meet the definition of infrequent/irregular, these payments will be counted as unearned income when they can be reasonably anticipated during the certification period. 315.08 CHILD SUPPORT A. Child support income includes the following: 1. A payment made by a child’s absent parent which is available to meet the child’s basic needs. 2. It may be paid voluntarily, under a court order or enforced in compliance with a State agreement under title IV-D. 3. Includes both direct and indirect payments. 4. Includes both current and arrearage payments. B. When budgeting child support income, a child is defined as: 1. Any individual under the age of 18 or 2. Any individual age 18 & 19, if attending High school full time. C. Child support income belongs to the child. If the child is included in the FNS unit, the child support income must be budgeted regardless of the actual payee. D. Child support income received for an individual that no longer meets the definition of a child is considered income to the individual that receives and/or benefits from the income. E. Base Period. 1. Ongoing child support income. a. Received 3 months or more: • Three months prior to the month of application or recertification. b. Received less than 3 months:

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

6 Section 315 Change #01-2022 January 11, 2022 • Use any full representative months received during the base period. 2. New, changed, or terminated child support income: • Explore alternate budgeting methods to project the amount expected to be received during the certification period. F. Calculating Monthly Child Support Amount. Child support income is budgeted using the same methodology as all other income. Budget both current and arrearage using the same method. Do not use a 3-month average unless the frequency is determined to be monthly or sporadically. 1. Child support received during the 3-month base period is representative of ongoing income. a. Review the payments received during the 3-month base period to determine the number of representative pays received during the base period. Do not count any one-time lump sum payments or non- representative payments. i. Allow two business days after the payment has been applied to the client’s case in ACTS for direct deposit and ncKIDScard (child support debit card). ii. If child support is verified through ACTS, remember the date shown in the system is the date the check was written. It is mailed on the next workday. b. Determine if there is a pattern such as weekly, bi-weekly, or bi-monthly to the child support payments or if the payments are sporadic. c. Calculate monthly countable child support income based on meeting a pattern or being sporadic. i. Pattern. • Add all representative payments received during the base period. Result is total child support received. • Divide the total child support received by the number of payments received. Result is average child support payment per pay period. • Multiply the average child support payment per pay period by the frequency conversion. Result is total countable monthly child support.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

7 Section 315 Change #01-2022 January 11, 2022 Example: The calendar below shows the dates the child support was received by the FNS unit. After reviewing the payments, the worker can reasonably conclude that the frequency of payments received is every two weeks. $150.00 + $166.25 + $185.56 + $166.35 + $162.56 + $187.25 + $150.00 = $1167.97 / 7 Divided by # of pays $166.85 Amount per pay period $166.85 X 2.15 = $358.73 monthly ii. Sporadic (No pattern). • Use the 3-month base period and average. Result is countable monthly child support. Document the case record to support the decision to use a 3-month average. Example: The calendar below shows the dates the child support was received by the FNS unit. After reviewing the payments, the worker cannot reasonably conclude that there is a pattern to the frequency of payments. The record is documented that the payments are received sporadically.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

8 Section 315 Change #01-2022 January 11, 2022

$166.25 + $86.58+ $25.25 + $162.56 + $150.00 = $590.64

/ 3 = $196.88 monthly

2. New or changed child support income. a. Use the court order or documentary evidence to project a representative monthly amount. b. Only count if it can be reasonably anticipated that the absent parent will begin paying. 3. Terminated child support income. a. Count actual child support in month received. b. Do not count child support past the last month of receipt. 315.09 COLLEGE WORK-STUDY Do not count College Work Study as a source of income when administered under Title IV of the Higher Education Act or the Bureau of Indian Affairs. Count other College Work Study benefits as earned income. Project over the period of time it is intended to cover.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

9 Section 315 Change #01-2022 January 11, 2022 315.10 CONTRACT WAGES This is money paid to an individual, such as teachers and other school employees, based on a written or verbal agreement (contract). Verify contract information with the employer. Budget contract income using the following instructions. A. Prorate contract income that represents the FNS unit’s annual support over 12 months unless the income is paid hourly or on a piecework basis. If the income has been averaged over 12 months and the employment ends after he or she has been paid the full contract amount, the average monthly amount must continue to be counted as income for the remainder of the 12- month period. B. Prorate contract income that is not the FNS unit's annual income over the period it is intended to cover unless it is paid on an hourly or piecework basis. C. Count hourly or piecework income derived by contract that can be anticipated in the month received using base period as an indicator. Note: Do not consider contract wages unless a written or verbal agreement exisit. While most school employees that work in areas such as bus driving or food services work 10 months a year, they do not generally work under a contract with the school system. React to changes in income for non-contract employees per instructions in FNS 515 Changes during Certification Period. 315.11 CONTRIBUTIONS A. Determine if the contribution received by a FNS unit member is infrequent/irregular income as defined in 315.07 Cash Received Infrequently or Irregularly. Do not count irregular/infrequent income. B. Determine if the contribution is received from a non-profit organization. 1. Charitable contributions of $300 or less during a calendar quarter from a non-profit organization are excluded from income. 2. If the contribution from a non-profit organization exceeds $300, count the amount over $300 that can be anticipated during the certification period as unearned income. Prorate the countable amount over the entire certification period. C. All other cash contributions received by a FNS unit member are counted as unearned income when they can be reasonably anticipated during the certification period.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

10 Section 315 Change #01-2022 January 11, 2022 315.12 COURT-ORDERED RESTITUTION A. Determine if the court-ordered restitution anticipated to be received by the FNS unit member is a reimbursement for a loss or damages incurred. Do not count reimbursements for losses or damages incurred. B. If the court-ordered restitution anticipated to be received by the FNS unit member is a lump sum for pain and suffering: 1. Do not count as income. 2. Count as a resource in the month of receipt. C. All ongoing court-ordered payments are counted as unearned income unless excluded in FNS 300 Sources of Income. 315.13 DEPENDENT CARE PAYMENTS A. Determine if the dependent care payment is received as wages by a FNS unit member for care provided to a non-FNS unit member. Count these payments as earned income. B. Determine if the dependent care payment is received as wages paid by one FNS unit member to another member within the same FNS unit. 1. The dependent care payments provided by an outside source, such as a state or federal Child Care and Development Fund (CCDF), is to be treated as earned income to the person providing the dependent care. EXAMPLE: Household size of three includes mother and child and the child’s grandmother. The mother works. She receives a child care reimbursement from a State’s CCDF. The grandmother watches the child and the mother pays her with the CCDF child care reimbursement. The money paid to the grandmother is to be counted as earned income. 2. If the dependent care payment is provided by a FNS unit member to another FNS unit member from his/her own pocket, do not count payments to the member providing the care as income. Such child care payments are not counted as earned income because the money is moving between FNS unit members. A deduction for child care would not be allowed in this situation. C. Determine if the dependent care payment is received as wages by a FNS unit member for care provided to a dependent FNS unit member by a non-FNS unit member. Count these payments as earned income.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

11 Section 315 Change #01-2022 January 11, 2022 D. Do not count vendor payments paid to a provider for care of a FNS unit member. 315.14 DOMESTIC EMPLOYMENT Determine if there is an employee/employer relationship such as when the employer pays taxes or FICA. If such as relationship exists, count the income as wages. If no such relationship exists, treat as self-employment. 315.15 EDUCATIONAL ASSISTANCE A. The only sources of countable educational assistance is assistance for normal living expenses, which are room and board. The designation of funds for room and board must be made by the source of the income, not the school. Count this assistance as unearned income. B. Prorate the countable educational assistance over the period of time intended to cover. Budget the income either in the month it is received or in the month the FNS unit anticipates receiving the first installment payment or the full amount of income. Regardless of the date of receipt, prorate the income over the period it is intended to cover. C. If the educational assistance is prorated as income and the student drops out of school, continue to count the assistance as income for the period it was intended to cover. D. Verify assistance only if client indicates that they receive educational assistance for Room and Board. 315.16 FEDERAL CROP INSURANCE CORPORATION (FCIC) A. The FCIC is a separate agency within the U. S. Department of Agriculture. B. FCIC also provides payments to farmers for crop losses but, unlike ASCS payments, the farmer must pay a premium for FCIC insurance. C. The federal government subsidizes the premiums. D. The insurance payments are paid out as a nonrecurring lump-sum payment. Therefore, they are considered a resource. E. Other crop insurance settlements from private companies that are made as a nonrecurring lump-sum payment are counted as a resource in the month of receipt and until spent. 315.17 FOSTER CARE / GUARDIANSHIP PAYMENTS Foster care / Guardianship payments are counted as unearned income only when the FNS unit chooses to include the child in the FNS unit.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

12 Section 315 Change #01-2022 January 11, 2022 In some circumstances foster care payments may continue past the age of 18, those payments are countable as unearned income. Refer to NC FAST HELP for instructions on entering unearned income. 315.18 GAMING PROCEEDS OF THE EASTERN BAND OF CHEROKEE INDIANS This is the distribution of profits from gaming operations on the reservation to the Eastern Band of Cherokee Indians. A. This income is received semi-annually (in December and June) and is prorated over the six-month period covered. B. Tribal members may refuse to accept the per capita distribution by signing a waiver. If this occurs, obtain a copy of the waiver, and do not count the payment as income. C. Some payments made directly into a trust fund administered by the tribe for minors and incompetent adults are also excluded from income. Verify that the trust fund is only accessible upon petition to the tribe and withdrawals are only allowed for medical and educational purposes. See 315.32 Trust Funds and Dividends From Trust Funds, for further details. 315.19 GI Bill Do not count income from the GI Bill with the exception of the monthly housing allowance (MHA) issued through the Post 9/11 GI bill which is effective August 1, 2009. The MHA is countable unearned income. 315.20 INHERITANCE If an inheritance or insurance settlement is paid to the FNS unit member in the form of a lump sum, do not count as income. Treat as a resource. If paid in installments determine if countable as an annuity. 315.21 INSTALLMENT PAYMENTS RECEIVED FOR THE SALE OF A RESOURCE This is money paid to an individual based on a written or verbal agreement (contract) involving the sale of a resource. Budget the payments as unearned income using the terms of the agreement (contract) and the following instructions. Subtract the cost of doing business (interest on a mortgage, property taxes, etc.) from the gross payment amount. A. Prorate the contract income over 12 months if the FNS unit receives an annual payment.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

13 Section 315 Change #01-2022 January 11, 2022 B. Count the income for the month it is intended to cover if payment is made monthly. C. Convert income to a monthly amount if income is received more frequently than monthly. NOTE: Prorate the contract income over the period it is intended to cover if received less than annually but not in monthly installments or converted to a monthly amount. For example, if the contract specifies quarterly payments, average the payment over a three-month period to determine the monthly amount to budget. 315.22 INSURANCE SETTLEMENTS Crop insurance settlements and insurance settlements on stock-in-trade held for resale (but not settlements on property, such as buildings, vehicles, etc.) are earned income subject to the cost of doing business. The settlements shall be considered as if they were the actual earned income from the self-employment enterprise and shall have the costs incurred in the attempted production of income deducted. EXAMPLE: A farmer may lose a cotton crop due to a hailstorm and, subsequently, receive a $1000 crop insurance settlement. In attempting to produce this crop, the farmer had spent $300 for seed, fertilizer, etc. The $300 would be deducted from the $1000 as identifiable costs of doing business, thus leaving $700 of the insurance settlement to be treated as actual self- employment income for food stamp purposes. 315.23 LEGALLY OBLIGATED MONEY A. Money that is otherwise payable to a member of the FNS unit, but is diverted by the provider of the payment to a third party for a household expense, shall be counted as income and not excluded. Example: The court orders child support payable to the client, but the absent parent chooses to pay the mortgage directly instead of paying the FNS unit. Count the payment as income and allow the mortgage payment as a shelter deduction. B. Payments specified by a court order or other legally binding agreement to go directly to a third party rather than the FNS unit are excluded as income because the payment is not otherwise payable to the FNS unit. Example: A divorce decree orders an individual to pay the monthly mortgage payment directly to the mortgage company and not to the FNS unit. Do not count the payment as income to the FNS unit and do not allow the mortgage payment as a shelter deduction.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

14 Section 315 Change #01-2022 January 11, 2022 315.24 MILITARY PAY A. Count military pay as earned income in the month intended, not received. Refer to FNS 350 Whose Income is Counted, to determine if the military member should be included in the FNS unit. Count the following income for a FNS unit member in the military. 1. Base Pay; 2. Basic Allowance for Housing (BAH), Basic Allowance for Subsistence (BAS), and/or Basic Allowance of Quarters (BAQ) are considered countable income when included on the Leave and Earnings Statement (LES) statement; Note: For those who live off base, allow shelter and utility deductions based on the amount the household is responsible for. For those who live on base, allow the shelter deduction for the amount of housing that is subtracted on the LES. Determine if the household is eligible for the SUA, BUA or TUA based on the utility expenses the household is responsible for. 2. Family Subsistence Supplemental Allowance (FSSA); 3. Variable Housing Allowance (VHA); 4. Leave Rations; 5. Separate Rations; and 6. Sea Duty Pay, Career Sea Pay, Jump Pay, and Flight Pay. B. Do not count the following as income. 1. Clothing Maintenance Allowance (CMA); 2. Any in-kind benefit not in the form of money, such as housing and meals; 3. Mandatory salary reduction which is used to fund the Veterans Education Act of 1984 (GI Bill); and 4. Combat pay. Exclude for the duration of the deployment. 5. Special pay and Incentive pay may be excluded (non-countable) if they are paid under Chapter 5 of the Title 37 act and meet the following criteria: a. Received in addition to the service member’s basic pay.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

15 Section 315 Change #01-2022 January 11, 2022 b. Received as a result of the service member’s deployment to or service in an area desgnated as a combat zone as determined pursuant to Executive Order or Public Law. c. Not received by the service member prior to the service member’s deployment to or service in a Federally designated combat zone. C. If military pay is received from someone stationed away from the FNS unit, determine the length of absence. If absent less than 30 days, continue to include the member in the FNS unit and count his income. If absent 30 days or more, do not include the individual or their income in the FNS unit. Count any contributions made to the FNS unit as unearned income. Also, consider any deposits made to a joint account as unearned income to the FNS unit. 315.25 PASS THROUGH PAYMENTS When a FNS unit member receives payment for shared expenses such as rent and utilities, and it was received from and used on behalf of a third party, it is not considered income to the FNS unit member as it passes through to the landlord or utility company. Pass through payments do not apply to Social Security Benefits, Supplemental Security Benefits, or Child Support. EXCEPTION: The exception to this rule is a residence that is owned or being purchased by the FNS unit. In this situation, count payments as earned income, roomer income to the landlord’s FNS unit. EXAMPLE: When separate households share rent and one receives a rent payment from the other and pays the landlord, the household that pays the landlord would not have the rent payment received counted as income. Therefore, a rent payment which a household receives from and uses on behalf of a third-party, i.e., a rent payment that passes through, should be excluded. 315.26 REIMBURSEMENTS A reimbursement is considered to be payment that does not represent a gain or benefit to the FNS unit. Do not count money received as a reimbursement for out-of- pocket expenses other than for normal living expenses such as rent, mortgage, personal clothing, or food eaten at home. Reimbursements include, but are not limited to: A. Reimbursements or flat allowances for job-related or training-related expenses such as travel, per diem, uniforms, and transportation to and from the job training site. B. Reimbursements for travel expenses incurred by migrant and seasonal farm workers.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

16 Section 315 Change #01-2022 January 11, 2022 C. Reimbursements for out-of-pocket expenses incurred by volunteers in the course of their work. D. Reimbursements for medical or dependent care. E. Reimbursements to pay for services provided by Title XX of the Social Security Act. F. Reimbursement to students for allowable educational expenses such as tuition and mandatory fees. G. Reimbursements received by FNS unit members complying with Employment and Training Requirements, Workfare, or Employment Services. H. Reimbursements received by FNS unit members participating in the Comprehensive Improvement Assistance Program (CIAP). This is a training program for public housing residents administered by the local housing authority. 315.27 REPRESENTATIVE PAYMENTS Representative Payments are monies received by a protective payee and legally intended to be used for the care and maintenance of a beneficiary. A. Money received by a protective payee, that is intended for the care and maintenance of the beneficiary, must be counted in full as income to the household of the beneficiary. B. Any portion of the payment received by a protective payee, that is not given and/or not used for the care and maintenance of the beneficiary who is not a household member of the protective payee, must also be counted as unearned income to the household of the protective payee. Example: FNS unit 1 contains Grandmother and Grandchild. Grandchild receives SSA in the amount of $600. Grandchild’s mother is the protective payee for the SSA check and grandmother states that the mother keeps $300 of the SSA check each month to pay her own rent. FNS unit 2 contains the Grandchild’s mother and no other individuals or income.

Income counted in each case:

FNS unit 1 will have $600 in SSA benefits counted because the child is the beneficiary, and the full income is countable to the beneficiary.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

17 Section 315 Change #01-2022 January 11, 2022

FNS unit 2 will have $300 in unearned income counted because the mother is the protective payee and is keeping a portion of the income for her own use. C. If a single payment is intended for both FNS unit and non-FNS unit members, any identifiable portion of the payment intended and used for the care and maintenance of the non-FNS unit household member must be excluded as income for the FNS unit. Example: A grandmother receives child support for two children. Child 1 is in the FNS unit with the grandmother and child 2 is living with the father. The child support received is $300 total. Verification was provided that shows $100 is for child 1 and $200 is for child 2. The income counted in the grandmothers FNS unit is $100. D. If the non-FNS unit member’s portion cannot be readily identified, evenly prorate the payment among the intended FNS unit and non-FNS unit members and count the prorated share for all FNS unit members. Example: A grandmother receives child support for two children. Child 1 is in the FNS unit with the grandmother and child 2 is living with the father. The child support received is $300 total. There is no verification provided as to the distribution of the funds. Prorating the share between the children and count $150 in the grandmothers FNS unit. 315.28

SELF EMPLOYMENT A. Types of self-employment. 1. Unincorporated: A FNS unit in which one or more members are engaged in an enterprise for gain, such as an independent contractor, franchise holder, owner/operator, or operator, have self-employment income. • When an individual is responsible for paying his own social security taxes (FICA) and other taxes, he will be determined to be self- employed. • The income and resources of an unincorporated business are treated as self-employment income and resources to the owner of the business. • If the unincorporated business is owned by multiple individuals (partnership), treat the income and resources as self-employment income with each partner receiving a proportional share of the income and resources.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

18 Section 315 Change #01-2022 January 11, 2022 2. ‘S’ and ‘LLC’ corporations: If the business is incorporated as a ‘LLC’ or ‘S’ corporation budget the income the same as self-employment income. • Unlike the income from other corporations, which is reported to the IRS through separate corporate income tax returns, the income of these corporations is reported together with the household’s other income on its tax return. Accordingly, income from these corporations would be treated as self-employment income and annualized. 3. ‘C’ corporation: If the business is incorporated as a ‘C’ corporation do not use self-employment budgeting, count income received from the business as wages. • Income of a ‘C’ corporation is countable to a shareholder only if it is distributed to a shareholder. • ‘C’ corporation assets are not countable to the household but stock which represents the value of non-income producing corporate property is not excluded. • Corporate assets such as but not limited to vehicles, real estate, and equipment should be registered clearly in the name of the corporation. Otherwise, these would be considered property of the household and counted or excluded as appropriate. • Checks made out for cash or household expenses paid from corporate checking accounts should be considered “distributions” and counted as earned income. • The percentage of shares of stock which represents the value of non- income producing property owned by the corporation could be determined and counted as a resource. B. Records of Self-employment Records containing the total business income (including business invoices and accounts receivable) and business expenses (allowable costs of doing business) are essential to determine eligibility and correct benefit level. Tax forms and accounting methods vary widely, and it is impossible to specify forms, line numbers, or types of verification. Accept any verification that reasonably verifies the required information. Use the following guidelines for requesting verifications: 1. Request the previous year’s tax records (Form 1040 and all Schedules to show the business income and expenses) when they are representative.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

19 Section 315 Change #01-2022 January 11, 2022 Additional verification of deductions is not required if the previous year’s tax records are used. a. If last year’s tax records are not available, request business income and expense records for the previous 12 months. b. If the business has not been in operation for 12 months, request income and expense records for the period of time the business has operated. 2. If these records are not representative due to an increase or decrease in business, average, and anticipate income for the certification period based on the most accurate information available. Document why the records were not representative and how the determination of countable income was made. 3. When first working with a household applying for FNS, if the previous year’s tax records or business records are not available, the county department can anticipate income and expenses based on the best available information from the self-employed individual. Remember, deductions from self-employment income must be allowable (reasonable to the cost of doing business). a. If tax records are not available, receipts of expenses must be provided. b. Business records must include mileage as it occurs and receipts to ensure that the deduction does not exceed the federal mileage rate for income tax purposes. c. To determine which deductions may be allowed, see 315.28. D. Allowable Costs of Doing Business. 4. If records were not available at this first contact, the county department should inform the household that the household is responsible for keeping adequate records and receipts to provide future verification of income and expenses. C. Budgeting of Self-employment 1. If the business has been in existence at least one year and the household states this is representative: a. Obtain income and expense verification for the previous year. b. Subtract the allowable and reasonable costs of producing the income. See 315.28 D. for a listing of these deductions.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

20 Section 315 Change #01-2022 January 11, 2022 c. Divide the result by 12 to obtain the average monthly income to count for the certification period. d. Continue to budget this amount for the certification period unless the FNS unit reports an increase or decrease in income. i. Enter the anticipated averaged monthly income in NC FAST. ii. If there was a loss in farm income, see 315.28 F. Example: Jane reports that she is self-employed and provides her previous year’s tax returns. Jane states that the return is representative of her annual income. The worker reviews the tax returns and determines that the gross income (prior to any deductions) is $25,000. The client claimed $15,000 in deductions on her tax return. The client wrote herself checks totaling $10,000 during the year as wages. Because this is not an allowable cost of doing business the $10,000 portion of the deduction cannot be allowed. The calculation would be as follows: Total Gross Income prior to deductions

$25,000 Total Allowable Deductions -(minus) $5,000 Countable Self-employment Income =(equals) $20,000 Divided by # of months in business /(divided) 12 Monthly Self-employment Income

$1,666.67

2. If the business has been in existence for less than one year and the household states this is representative: a. Obtain income and expense verification for the number of months that the business has been in existence. b. Subtract the allowable and reasonable costs of producing the income. See 315.28 C. for a listing of these deductions. c. Divide the result by the number of months that the business has been in existence. d. Continue to budget this amount for the certification period unless the FNS unit reports an increase or decrease in income. e. Enter the anticipated averaged monthly income in NC FAST. f. If there was a loss in farm income, see 315.28 F.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

21 Section 315 Change #01-2022 January 11, 2022 3. If the average of the previous records is not representative due to an increase or decrease in business, average, and anticipate income for the certification period based on the most accurate information available. Document why the records were not representative and how the determination of countable income was made. NOTE: Do not consider normal business or seasonal fluctuations as a change. Do not consider a client who does sporadic or odd jobs that do not reoccur as self-employed. 4. When the FNS unit reports an increase or decrease in business that is expected to continue for more than one month, react to the change. If reacting to the change: a. Estimate the annual income and expenses based on the most accurate information available. Average and anticipate this income for the remainder of the certification period. b. Enter the anticipated averaged monthly income in NC FAST. c. If there was a loss in farm income, see 315.28 F. NOTE: Do not consider normal business or seasonal fluctuations as a change. D. Allowable Costs of Doing Business Include: 1. Costs of maintaining a place of business, other than the individuals place of residence, such as, rent, utilities, insurance on the business and its property, and property taxes. NOTE: If a business is operated in the home, allow only those costs identified for the part of the home used exclusively for the business. If expenses for the business are not separately identifiable, use a prorata share of household expenses as a cost of doing business. Payments on the principal cannot be allowed as a cost of doing business. 2. Principal and interest paid on loans used to purchase income producing equipment and property. 3. Taxes paid on income producing property. 4. Repairs and maintenance related to the business. 5. Employee labor costs including commissions paid, taxes, FICA insurance, etc.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

22 Section 315 Change #01-2022 January 11, 2022 6. Cost of goods, supplies, and materials, livestock, seed, and fertilizer. NOTE: Allow the expense for purchase of goods for resale in the month incurred. EXAMPLE: An Avon representative purchases $300 worth of products in October to sell in December. Allow the $300 expense in October when incurred. Count the income from resale in December when received. 7. Advertising costs. 8. Accounting and legal fees. 9. State and local sales taxes paid. 10. Professional licenses, permits, and taxes, if necessary, to practice a profession or trade. 11. Transportation costs necessary to produce income. The transportation deduction is not to exceed the federal mileage rate for income tax purposes. 12. Actual costs of providing meals as part of the business, such as baby- sitting. 13. Insurance premiums on business equipment 14. For sharecroppers, the percentage of gross sales paid to the landowner for the use of the land 15. For operation of non-commercial boarding houses, deduct the greater of the following: a. The maximum FNS benefit allotment (also known as the Thrifty Food Plan) for a FNS unit size that is equal to the number in the boarder household; or b. The verified actual separate and identifiable costs of providing room and meals if the actual costs exceed the appropriate Thrifty Food Plan for the number in the boarder household. If an item is used for purposes other than producing income, prorate the expense using the percentage of time the item is used to produce income. EXAMPLE: A self-employed child-care provider uses her vehicle 50% of the time in her business. The other 50% of the time she

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

23 Section 315 Change #01-2022 January 11, 2022 uses it for her own personal use. She is entitled to 50% of the vehicle expenses as a deduction for her business. E. Non-allowable Costs of Doing Business Include: 1. Costs of maintaining a business in the individuals place of residence such as rent, utilities, and property taxes are not allowed if the client receives these deductions per FNS 340.05 Shelter Deductions and FNS 340.09 Utility Expenses. Example: A self-employed individual provides a tax return that list a portion of the home’s rent and utilities as a business deduction. The household is receiving a shelter deduction for rent and the Standard Utility Allowance (SUA). Because the household has already been given a deduction for these expenses they cannot be allowed again as a business expense. Add those expenses back into the gross income. 2. Losses from previous periods. 3. Current or anticipated losses (except for self-employed farmers). 4. Depreciation claimed for tax purposes. 5. Deposits into the self-employed individual’s retirement account and/or payment for his life and health insurance. 6. The self-employed individual’s work-related expenses accounted for by the earned income deduction including federal, State, and local income taxes, and other work-related personal expenses, such as transportation expenses for the commute to and from the individual’s place of business. 7. Other personal expenses not related to the business, such as meals, clothing, etc. 8. Capital assets or equipment. 9. Expenses paid or incurred from last year’s crop production. 10. Wages, salaries, advances paid to the business owner. F. Procedures to Offset Farm Losses: 1. A loss from farming occurs when the cost of doing business is greater than the income received. When the annual gross receipts of a farmer are expected to be at least $1000, offset losses against other FNS unit income.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

24 Section 315 Change #01-2022 January 11, 2022 c. Compute the total gross farm income (which must be at least $1000) and subtract the allowable costs of doing business. See 315.28 C. d. Subtract any losses from the self-employment income first; and e. Subtract any remaining losses from other earned and unearned income. 2. Continue to budget the loss for the remainder of the certification period. If the farm operation discontinues remove the monthly offset when income from the farm operation ceases. 315.29 SPECIAL ASSISTANCE The Special Assistance (SA) In-Home Program allows individuals living at home to receive a Special Assistance payment. Count the SA payments as unearned income for the FNS unit. If the client is responsible for payment of medical bills including payment for a nursing attendant, give a medical deduction. See FNS 340 Deductions. 315.30 STRIKERS A. Households with striking members are not eligible to participate in FNS unless the striker is exempt from work registration or the FNS unit would have been eligible for benefits the day prior to the strike and is otherwise eligible at the time of application. B. These FNS units shall not receive an increased allotment as the result of a decrease in the income of the striking member(s). C. Eligibility is determined by comparing the striking member’s income before the strike (calculated by considering the day prior to the strike as the day of application and assuming the strike did not occur) to the striker’s current income (including picket pay) and counting the higher of the two. Add this amount to the current income of non-striking members. 315.31 SUPPLEMENTAL SECURITY INCOME (SSI) PAYMENTS A. If a SSI check is reduced due to a client responsible overpayment, do not increase the FNS unit's allotment as a result of the decrease in the SSI payment. Count the gross amount of the SSI payment as unearned income. B. If DSS is not successful in obtaining the necessary cooperation from the Social Security Administration to verify the status of an overpayment, count the net SSI payment. The DSS will not be held responsible for noncompliance as long as the agency has made a good faith effort to obtain the information. Document attempts made to verify information with Social Security Administration.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

25 Section 315 Change #01-2022 January 11, 2022 315.32 TRUST FUNDS AND DIVIDENDS FROM TRUST FUNDS Count periodic disbursements or dividends as unearned income received by the FNS unit member from the trust fund when these amounts can be anticipated with reasonable certainty. 315.33 VENDOR PAYMENTS A. A vendor payment is a payment made in money on behalf of a household/individual by an outside party. Vendor payments are not considered countable income. EXAMPLE: A non-FNS unit member pays the FNS unit members' rent directly to the landlord. B. Payments made with money that is legally obligated to the FNS unit are not considered vendor payments. Refer to Section 315.21 Legally Obligated Money. EXAMPLE: FNS unit members' wages are garnished to pay the rent. Gross wages are counted and the rent deduction is given. 315.34 VOLUNTEERS IN SERVICE TRAINING ACT (VISTA) If the FNS unit member was receiving Public Assistance (AFDC, Work First Family Assistance, or TANF) or FNS at the time he joined VISTA, do not count as income. If he was not a recipient, count as earned income. 315.35 WAGES, SALARIES, TIPS Wages, salaries, and tips received for performing services as an employee of an employer. Includes but not limited to: • Sick pay, • Vacation pay, • Held wages, • Pay advances, • Attendant care payment, • Commercial fisherman, • Contract wages,

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

26 Section 315 Change #01-2022 January 11, 2022 • Migrant income, • Seasonal employment, • Census income, • Commissions, • Strike duty, • Longevity Pay, count if reasonably expected to reoccur during the certification period, • Guardianship payments, which is income received as a guardian to take care of dependent, • Students’ wages, which may or may not be countable based on program, • Certain types of employees’ benefits: o Held wages (only if at the request of employee, count when received), o Attendant care payments (payments must be from outside the home) and pay advances. • Contract employee's income is divided by the number of months covered by the contract. The monthly amount in counted throughout the contract period regardless of how the employee chooses to receive the income. 315.36 WORK FIRST FAMILY ASSISTANCE (WFFA), TEMPORARY ASSISTANCE TO NEEDY FAMILIES (TANF) A. If assistance payments are made under any of these programs for retroactive months, do not count that portion as income for the current month. B. If a payment is received that includes retroactive payments and the current month amount, count only the current month’s portion as unearned income. C. If the WFFA assistance is reduced, terminated or not issued because of a penalty or sanction for failure to comply with WFFA, refer to Section 315.35, Work First Family Assistance (WFFA) Non-Compliance. D. If a WFFA or TANF payment is reduced due to an overpayment, other than a client responsible overpayment, subtract the recoupment amount from the gross, and count the net payment amount as unearned income. NOTE: This does not include Benefit Diversion (BD), since BD is not countable income.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

27 Section 315 Change #01-2022 January 11, 2022 315.37 WORK FIRST FAMILY ASSISTANCE (WFFA) NON-COMPLIANCE Do not increase a FNS unit’s benefits when a FNS unit’s WFFA payment is reduced, terminated, or not issued because of a penalty or sanction for failure to comply with WFFA and the household is certified for benefits at the time the sanction is imposed. This policy does not apply to initial applications or reapplications as long as the FNS unit was not receiving FNS when the penalty or sanction was imposed. Use the following criteria to determine how to count the WFFA payment. A. Child Only WFFA households 1. If the WFFA payment is not released due to a penalty or sanction during the certification period, continue to count the payment for the full penalty period. If a penalty or sanction is in place at reapplication/recertification, determine if it is the same penalty or sanction or a new penalty or sanction. Continue to count the WFFA payment amount if it is the same penalty or sanction. If it is a new penalty or sanction, determine when the penalty or sanction was imposed. Budget the WFFA payment amount if the penalty or sanction was imposed while the case was certified to receive FNS benefits. 2. If the WFFA case is terminated due to a penalty or sanction during the certification period delete the payment effective with the month after the case terminates. 3. If the WFFA payment is terminated due to a penalty or sanction imposed effective the month of application/reapplication or in a non-certified month, do not count the WFFA payment amount when determining benefits. If a penalty or sanction is in place at reapplication/ recertification, determine if it is the same penalty or sanction or a new penalty or sanction. If it is a new penalty or sanction, determine when the penalty or sanction was imposed. If the WFFA check is terminated due to a penalty or sanction imposed effective the month of application/reapplication or in a non- certified month, no WFFA payment amount will be budgeted. Budget the payment amount if the penalty or sanction was imposed while the case was certified to receive FNS benefits. B. Work Eligible WFFA households 1. If the WFFA payment is not released due to a penalty for noncompliance with the MRA, and the household is certified for FNS benefits at the time of noncompliance, the WFFA payment will continue to be counted in the FNS allotment. Delete the payment the month after the WFFA payment terminates, providing the client has not reapplied and been reapproved. If the WFFA is terminated due to a penalty for noncompliance with the MRA

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 315 SPECIAL BUDGETING

28 Section 315 Change #01-2022 January 11, 2022 effective the month of application/reapplication or in a non-certified month, do not count the WFFA payment amount when determining benefits. 2. If the WFFA payment is not released due to a sanction for noncompliance with Child Support, and the household is certified for FNS benefits at the time of noncompliance, the WFFA payment will continue to be counted in the FNS allotment for the full sanction period. Delete the payment the month after the WFFA payment terminates, providing the client has not reapplied and been reapproved. If the WFFA is terminated due to a sanction for noncompliance with Child Support effective the month of application/reapplication or in a non-certified month, do not count the WFFA payment amount when determining benefits. 3. If the WFFA payment is reduced due a penalty for Substance Abuse Treatment noncompliance during the certification period, continue to count the gross payment amount for the full penalty period. If a reduction penalty is in place at reapplication/recertification, determine if it is the same penalty or a new penalty. Continue to count the gross payment amount if it is the same penalty. If it is a new penalty, determine when the penalty was imposed. Budget the gross payment amount if the penalty was imposed while the case was certified to receive FNS benefits. If the penalty was imposed when the case was not certified for FNS benefits, count the actual payment. C. If a WFFA payment is reduced due to a client responsible overpayment, continue to count the gross amount of the WFFA payment as unearned income. NOTE: This does not include Benefit Diversion (BD), since BD is not countable income. 315.38 WORK FORCE INVESTMENT ACT (WIA) or WORK FORCE INNOVATION AND OPPORTUNITY ACT (WIOA) Earnings to recipient participating in WIA on-the-job training are counted as earned income except for youths, under age 19, who are under the parental control of an adult FNS unit member participating in the Summer Youth Employment Opportunities Program. Exclude other allowances, earnings, or payments (including reimbursements) to all individuals participating in other programs under WIA.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 FNS 340 DEDUCTIONS Change #02-2026 August 4, 2026 340.01 REQUIREMENT The deductions listed in this section are the only deductions allowed when calculating a household’s net monthly income. Evaluate all households to determine allowable deductions. 340.02 EARNED INCOME DEDUCTION Twenty percent of the monthly gross earned income, or adjusted gross income for self- employed households, is deducted to allow for expenses associated with employment such as transportation, special clothing, withholding taxes, and other incidental expenses. Do not allow this deduction for earnings that are excluded. North Carolina Families Accessing Services through Technology (NC FAST) automatically calculates this based on information entered into the system. 340.03 STANDARD DEDUCTION Allow every Food and Nutrition Services (FNS) unit with earned and/or unearned income a monthly standard deduction according to household size. Only eligible FNS unit members are included in the household size for calculation of the allowable standard deduction. NC FAST automatically calculates this based on information entered into the system. See DSS-8560 Caseworker Desk Reference for current standard deduction amounts. 340.04 DEPENDENT CARE DEDUCTION A. Establish eligibility for the dependent care deduction. 1. The FNS unit must incur a dependent care expense for any dependent, child or incapacitated adult, in the FNS unit; and 2. The FNS unit must incur the dependent care expense to accept, continue, or seek employment; attend training; or attend school (including high school) to prepare for employment; and 3. The dependent care provider cannot be included in the FNS unit. 4. Allow as an expense the amount payable for dependent care by the FNS unit. This includes additional transportation expenses incurred as a result of transporting FNS members to and from the dependent care provider. When determining the mileage incurred to provide the dependent care transportation, do not include the normal mileage incurred by the FNS unit to go to and from

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 work. Only allow the dependent care transportation expense for the additional mileage incurred by the FNS unit. Allowable mileage can be found by going to the IRS website and searching for business mileage rate. EXAMPLE 1: The child care center is located on the route the FNS unit member drives to work. When the stop at the child care center is added, the mileage does not change. No additional transportation expense is incurred. The FNS unit is not eligible for a dependent care transportation deduction as no additional expense occurs. EXAMPLE 2: The FNS unit members works at the child care center which the child attends. The FNS unit is not eligible for a dependent care transportation deduction as no additional expense occurs. EXAMPLE 3: The FNS unit member takes her child to a child care center not located on her route to school. When the stop at the child care center is added, she drives an additional 10 miles in the morning and an additional 10 miles in the afternoon. She provides this transportation 5 days a week The FNS unit is eligible for a dependent care transportation deduction. The actual related transportation expense is the 20 miles, per day, that are associated with the travel to the child care center. B. Do not allow the dependent care expense if: 1. Paid entirely through government assistance, or 2. Covered by an excluded reimbursement through any source. EXAMPLE: $175 Cost of dependent care - 175 Amount of subsidized child care payment from DSS $ 0 No deduction C. Verification of the Dependent Care Expense Using the DSS-8650 Notice of Information Needed, request the dependent care expense for the month prior to the month of application or recertification as long as the deduction is representative of the ongoing deduction. NOTE: Accept client’s statement of dependent care transportation mileage unless it is questionable. Online sources can be used if the mileage is unknown or questionable. 1. Give the FNS unit at least ten calendar days to provide verification. 2. If the FNS unit states that the verification is not readily available, offer to assist in obtaining the verification.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 3. Do not request a specific type of verification as any source that reasonably verifies the deduction is acceptable. Some acceptable sources of verification include, but are not limited to: a. FNS unit records, such as agreements, canceled checks, etc.; b. Agency records; and c. Verbal or written verification from the dependent care provider. 4. If verification cannot be obtained from any source: a. Consult with the FNS unit to determine the amount of the expense based on the best available information. b. Request a signed statement from the FNS unit regarding the dependent care expense and document the case file thoroughly with the reason the verification could not be obtained. D. Determine the Allowable Dependent Care Deduction 1. If dependent care is paid weekly or biweekly, convert the dependent care to a monthly amount. Use actual dependent care expenses including cents; do not round. 2. Count as a deduction only the amount the FNS unit pays in excess of any government assistance amount and/or any fees paid by the FNS unit. EXAMPLE: $250 Cost of child care – Amount of subsidized child care payment from $150 DSS $100 Allowable child care deduction E. Documentation of the Dependent Care Deduction 1. Document the dependent care deduction in the case file. Include: a. Amount payable per child or incapacitated adult by the client, b. Frequency of payment, c. Provider’s name, address, and telephone number, d. Child (ren) or incapacitated adult in care, e. Hours of care, and f. Any type and amount of government assistance paid for the dependent care.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 2. To enter the deduction in NC FAST: a. Use the actual dependent care expense, including cents; do not round and convert amounts paid weekly, bi-weekly, or semi-monthly to a monthly amount. b. If the expense is paid less often than monthly, average and convert to a monthly amount. c. Enter the actual monthly converted expense paid for each dependent in NC FAST. d. If one dependent care payment is paid for more than one child or incapacitated adult, enter each child’s or incapacitated adult’s portion. EXAMPLE: Mrs. Bell pays $400 for full time care for one child and $150 for afterschool care for two children. Enter $400 for the child who receives full time care. Enter $75 each for the two children who receive afterschool care. 340.05 SHELTER DEDUCTIONS A. A FNS unit is entitled to a shelter/utility deduction when shelter and/or utility expenses exceed 50% of the monthly income after the earned income, standard, medical, dependent care, and child support deduction have been subtracted. B. Only that portion of the shelter and/or utility expense which represents the regular monthly payment is used in the calculation of the household’s shelter expense. Do not include the amount intended to cover any past due payments. C. Allow a deduction for expenses that are incurred or billed, whether paid or not, up to the monthly shelter cap. NC FAST calculates this automatically. If the FNS unit contains a specified person, it is not subject to the shelter cap. D. Allow a deduction if a shelter expense is billed in the name of a non-FNS unit member but is the responsibility of the FNS unit to pay. 340.06 ALLOWABLE HOUSING EXPENSES The following are allowable housing expenses. A. Rent; B. Mortgage (principal and interest), including second and third mortgages, regardless of the use of the money;

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 C. Lot rent for a mobile home or mortgage payment on land when the home is owned or rented; D. Home improvement/home equity loans, regardless of how the FNS unit uses the money; E. Real property taxes. Includes all taxes/assessments listed such as sewer, fire, school, trash, recycling, and state and local assessments; F. Insurance on the home (structure only) but not on furniture or personal belongings; 1. If the FNS unit resides in a mobile home, recreational vehicle, or automobile, taxes and insurance are allowable. For FNS purposes, a these are considered real property. 2. If the tax or insurance bill does not show amounts for personal property separate from amounts for the dwelling and land, allow the entire expense as a deduction. Document fully that these expenses cannot be identified separately. G. Condominium fees and homeowner’s association dues; H. Taxes and/or insurance expenses itemized as part of mortgage closing expenses when a FNS unit purchases a home; I. Costs of repairing a home that was substantially damaged or destroyed due to a natural disaster, such as a fire or flood, as long as the expenses will not be reimbursed; J. Shelter expenses for a home temporarily unoccupied by the FNS unit because of employment (such as, migrant employment) or training away from home, illness, or the abandonment of the home due to a natural disaster or casualty loss. 1. For an unoccupied home to be included in the shelter expenses, the FNS unit must intend to return to the home, such as migrants. 2. The current occupants of the home, if any, must not be claiming the shelter expenses for FNS purposes. 3. The home may not be leased or rented during the absence of the FNS unit. K. When the FNS unit resides in a group home, any expense for a room, which can be identified separately from other expenses, is allowed as a shelter expense. If only one payment is made for room and meals, allow as a shelter expense the amount of the payment that exceeds the maximum FNS benefit amount (also known as the Thrifty Food Plan) for the size of the FNS unit. L. Car payment and other fees associated with living in the car, if the car is used as primary residence.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 340.07 NON-ALLOWABLE HOUSING EXPENSES A. Any expenses related to housing not actually occupied by the FNS unit, except as specified in 340.06 J. B. Down payments, closing expenses, discount points, and other expenses incidental to closing a mortgage when purchasing a home, except as specified in 340.06 H. C. An expense which is reimbursed or covered by a vendor payment. A vendor payment is a payment made in money on behalf of a household/individual by an outside party. See FNS 315.33 for information on vendor payments. D. Site preparation to locate a mobile home. E. Late charges or fees on mortgage or rent payments. F. Past due rent or mortgage amounts. G. Other expenses not directly related to shelter, such as lawn care, except as provided in 340.06 G. above. H. Deposits on rental property. I. The amount of rent being recouped by HUD for a prior underpayment made by the recipient. NOTE: If a FNS unit has been granted a suspension of rent or mortgage payments (a moratorium), do not allow the rent or mortgage expense until it is incurred again. 340.08 VERIFICATION OF HOUSING EXPENSES A. Requirements 1. Verify the expenses at initial application, at recertification if there has been a change, and when a change in residence is reported (see FNS 515.12, Change of Residence During the Certification Period). 2. Request verifications using the DSS-8650 and allow the FNS unit at least ten calendar days to provide verification. 3. If verification is not provided within ten calendar days, process the application, and allow no deduction. 4. If verification is provided within the certification period (CP), adjust benefits for the month after verification is provided if time allows. 5. If needed, offer assistance to the FNS unit in obtaining verification.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 6. Resolve any discrepancies prior to allowing the deduction. B. Do not request a specific type of verification as any source that reasonably verifies the deduction is acceptable. Some acceptable sources of verification include, but are not limited to: 1. Rent or Mortgage a. Obtain written or verbal statement from the landlord. b. View payment notice, mortgage book, or closing statement for a new mortgage. These will indicate if the taxes and insurance are escrowed in the mortgage payment. c. View receipts and make sure the amount on the receipt does not include late charges, past due amounts, or HUD recoupments. 2. Property Taxes/Property Insurance a. View bills, receipts, or county tax records. Note: Do not use the tax rate times the value to calculate the tax bill as some citizens, such as seniors, receive discounts. b. Obtain a written or verbal statement from the taxing authority or insurance company. Do not allow late fees or past due amounts. 3. Miscellaneous Shelter Expenses a. Obtain documentary evidence from the source. b. Use a collateral contact when documentary evidence is not available. C. Documentation of Shelter Expenses 1. Document any verifications received in the appropriate the NC FAST casefile. Include: a. The method of verification. If a verbal statement is obtained, document who provided the information, how the verification was obtained (such as by telephone or in person), and exactly what was stated by the source. b. The monthly amount billed or incurred. Always convert to a monthly amount if paid weekly, biweekly, or semi-monthly. c. Date verification received. 2. Entering Housing Expenses a. In NC FAST, each shelter expense is entered separately. b. Do not round.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 NOTE: Use verified housing expenses for the month prior to the month of application or recertification as long as the deduction is representative of the ongoing deduction. 340.09 UTILITY EXPENSES Allow as a shelter deduction any utility expenses that are identified separately from a rent or mortgage payment. This includes: A. Allowable Utility Expenses 1. Heating and cooling expenses; 2. Electricity; 3. Cooking fuel; 4. Water and sewage; 5. Septic tank installation and maintenance; 6. Well installation and maintenance; 7. Garbage and trash collection fees; and 8. The basic service fees for one telephone, including the basic phone service rate; telecommunication relay charge; federal and State taxes; Emergency 911 access fee; long distance access fees; and all FCC charges. NOTE: Use the utilities for the month prior to the month of application or recertification as long as the deduction is representative of the ongoing deduction. B. Non-Allowable Utility Expenses 1. Deposits charged on utilities, including a telephone; 2. Late fees and past due amounts; 3. The costs of appliances; 4. Internet charges; 5. Repair or replacement expenses for appliances or any other portion of the home due to wear and tear or mechanical problems; 6. Costs connected with cutting wood, such as cutting permits, gas for a chain saw, or equipment used to cut wood when a FNS unit heats or cools with wood. C. The utility expense allowed may be a standard amount or a telephone utility allowance. There are three utility standards. They are the Standard Utility Allowance

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 (SUA), Basic Utility Allowance (BUA), and the Telephone Utility Allowance (TUA). D. Eligibility Requirements for the SUA The FNS unit is eligible for the SUA if the household: 1. Incurs a heating or cooling expense which is billed separated from rent or mortgage payments. 2. Rents or is purchasing a home and pays heating or cooling expenses directly to the utility provider. 3. Rents a home with individual metering for a heating or cooling expense which is billed by the landlord. 4. Owns or rents a home and does not pay a mortgage or rent payment but incurs a heating or cooling expense. 5. Does not currently incur a heating or cooling expense but expects to have one in the upcoming season. (For example, the client moves into a new home and has not received a bill.) 6. Incurs heating or cooling expenses during the CP in excess of those reimbursed by energy assistance programs. 7. Incurs a heating or cooling expense which is not totally covered by a vendor payment. 8. Includes an elderly or disabled individual (specified person) who was a member of the LIEAP household who received an energy assistance payment made under LIEAP in the past 12 months, regardless of whether the FNS unit has any expenses in excess of the LIEAP amount. a. If a unit with an elderly or disabled member that received a qualifying LIEAP payment subsequently splits into multiple FNS units, assess whether each of the FNS units contain an elderly or disabled member. If each of the separate units contain an elderly or disabled member, confer the SUA to each of the units based on the qualifying LIEAP or other payment. If one of the separate units resulting from the split does not contains an elderly or disabled member, that unit is no longer entitled to receive the SUA unless they incur heating or cooling expenses. 9. Lives in a public or private housing unit that has central utility meters and residents are charged only for excess heating or cooling expenses. Determine if the FNS unit has been billed for excess heating or cooling expenses within the last 12 months.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 a. Do not consider the purchase of kindling wood as a heating expense. b. The cooling expense must be from central or room air conditioning, not from fans. NOTE: Fees charged by a utility company for initial installation of service are included in the SUA. E. The FNS unit is ineligible for SUA when it: 1. Lives in a public or private housing unit that has central utility meters, and the heating or cooling expenses are included in the rent; or 2. Has its heating and cooling expenses totally covered by a vendor payment (a payment made in money on behalf of a household/individual by an outside party); or 3. Is reimbursed for the total amount of the heating or cooling expense. F. Eligibility Requirements for the BUA The FNS unit is eligible for the BUA if the household: 1. Rents or is purchasing a home and pays at least two non-heating/non-cooling utility expenses directly to a utility provider. 2. Incurs at least two non-heating/non-cooling utility expenses including cooking fuel, electricity used for non-heating/non-cooling purposes, water and sewage charges, well and septic tank installation and maintenance, natural gas for water heaters, telephone, and garbage and trash charges. If the FNS unit incurs at least two of these expenses, the FNS unit is eligible for the BUA. Remember, if the FNS unit’s only utility expense is for a telephone, the FNS unit is not eligible for the BUA. Allow the FNS unit the TUA. 3. Rents a home with individual metering or billing for at least two non-heating/non- cooling expenses which are billed by the landlord. 4. Owns its home or rents a home and does not pay a mortgage or rent payment but incurs at least two non-heating/non-cooling utility expenses. 5. Incurs at least two non-heating/non-cooling expenses that are not totally covered by a vendor payment or reimbursement. 6. Lives in a public or private housing unit that has central utility meters and incurred an excess utility expense for at least two non-heating, non-cooling expenses in the last 12 months. NOTE: Fees charged by a utility company for initial installation of service are included in the BUA.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 G. Eligibility Requirements for the Telephone Utility Allowance (TUA) 1. The FNS unit is eligible for the TUA if the only utility expense incurred is for a telephone. 2. The telephone can be either a land line or a cellular phone. 3. The household qualifies for the TUA if a prepaid cell phone is the household’s method of basic telephone service. Prepaid long distance service is not considered a basic telephone service. 4. Budget the TUA for the entire CP. NOTE: Fees charged by a utility company for initial installation of service are included in the TUA. H. Allowing the SUA, BUA, or TUA Expenses 1. Explain eligibility for using the SUA, BUA, or TUA expenses at application, reapplication, recertification or change in situation. Accept the client’s statement of the utility expenses and entitlement to the SUA, BUA or TUA, unless questionable. 2. Explain each utility allowance at application, recertification, and reported move by the FNS unit. 3. Document the utility deduction in the case file. I. Verification of the SUA, BUA, or TUA 1. Verify entitlement to the SUA, BUA, or TUA when the client’s statement is questionable. Document the case file as to why the client’s statement is questionable and the reason for requesting verification. 2. Give the FNS unit a DSS-8650 allow the FNS unit at least ten calendar days to provide verification of entitlement to the applicable standard. If needed, offer assistance to the FNS unit in obtaining information. 3. View bills or receipts or obtain a written or verbal statement from the utility company or vendor. NOTE: The landlord can verify utilities are not included in the rent and can verify the primary source. The landlord cannot verify who pays the utility expense. 4. Resolve any discrepancies prior to allowing the deduction. 5. If verification is provided within the CP, allow the deduction. Adjust benefits for the month after verification is provided. J. Documentation of Entitlement to the SUA, BUA, or TUA

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 1. Document the client’s statement regarding the following in the NC FAST case file. a. The type of expense; and b. The utility provider; and c. The method of verification if client’s statement is questionable; and d. The date verification was received. 2. NC FAST will allow the SUA, BUA, or TUA based on information entered into the system. 340.10 SHARED RESIDENCE A. Allow each FNS unit the applicable SUA, BUA, or TUA for the household size. Do not prorate between the individual units, whether each household is a FNS participant or not. B. If all FNS units do not contribute to the heating and cooling expenses, determine the appropriate utility allowance based on the expenses each household incurs. C. If the FNS unit lives in the same residence with another FNS unit that does not share utility expenses, allow the SUA, BUA, or TUA if eligible. Do not include other members of the residence when determining the appropriate deduction. 340.11 SHARING A UTILITY METER/EXPENSE BUT LIVING IN SEPARATE RESIDENCES A. Allow each FNS unit the SUA or BUA for all residents who contribute to the expense when there is a shared utility meter/expense, but the FNS unit lives in separate residences. Do not prorate between the individual units, whether each household is a FNS participant or not. B. If each FNS unit does not contribute to the heating or cooling expenses, allow the appropriate utility allowance for the expense the household incurs. 340.12 PROCEDURES FOR SPECIFIED PERSONS, INELIGIBLE MEMBERS, AND DISQUALIFIED MEMBERS A. FNS unit Containing a Specified Person If the FNS unit contains a specified person as defined in FNS 212.02 Specified Person, allow a deduction for the full amount of the FNS unit’s excess expenses. NC FAST does this automatically.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 NOTE: Benefits must be restored if an SSI applicant is later determined to be eligible for SSI benefits. In computing the restoration, allow the unlimited excess shelter deduction retroactive to the date of the FNS application or the date of initial SSI eligibility, whichever is later. NC FAST will automatically calculate the ongoing excess shelter expense based on information entered into the system. B. FNS unit Containing an Ineligible Alien, an Ineligible Individual Who Fails or Refuses to Obtain or Provide a SSN, or an Ineligible Able-Bodied Adult Without Dependents (ABAWD). 1. Allow the eligible FNS unit members a prorata share of the shelter, legal support obligation, and child care expenses that are paid by the ineligible member from the ineligible member’s own income. Include all FNS unit members in the utility expense for calculation of the utility deduction. This includes eligible and ineligible FNS unit members. 2. Determine the prorata share by: a. Dividing the allowable shelter expenses evenly for all FNS unit members including ineligible and disqualified members; and b. Multiplying the prorata share by the number of eligible and disqualified persons included in the FNS unit. This is the allowable expense. NOTE: An ineligible member is included in determining the utility deduction (SUA, BUA, or TUA); this amount is not to be prorated. 3. When an elderly or disabled individual (specified person) is the ineligible member, the capped shelter amount must be used for the eligible FNS unit members even if the shelter and utility expenses are paid by the ineligible member. 4. NC FAST automatically calculates the prorata share based on information entered in the system. C. FNS unit Containing a Disqualified Member 1. Allow the FNS unit a full deduction for shelter and utility expenses even if paid or incurred by a disqualified individual. Do not prorate the expenses. 2. This applies to individuals disqualified due to: a. Intentional Program Violation; b. Felony drug conviction, c. Fleeing felon, d. Probation/parole violator,

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 e. Failure to comply with work registration requirements, f. Voluntary quit, or g. Disqualification due to transfer of resources. 3. With regard to transfer of resources, if household membership changes, the penalty follows each member of the original household that transferred the resource. That individual is subject to disqualification in the new FNS unit. D. Ineligible Students Ineligible Students are not household members. Allow the prorata share of the shelter, legal support obligation, and child care expenses paid by a household that includes an ineligible student when the payments of these expenses cannot be differentiated between the ineligible student and eligible household members. If the payments can be differentiated, allow as a deduction the expenses the eligible household members verify, they are responsible for. If household expenses are paid by an ineligible student, eligible household members cannot receive a deduction for those expenses.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 DEDUCTIONS REFERENCE SHEET Ineligible Individual Shelter Expense Included in SUA/BUA/ TUA Legal Support Obligation Medical Expenses Ineligible Non- citizen If paid by the individual allow a prorated deduction. Yes If paid by the individual allow a prorated deduction. If paid for the individual, do not allow deduction. Ineligible for failure to provide SSN If paid by the individual allow a prorated deduction. Yes If paid by the individual allow a prorated deduction. If paid for the individual, do not allow deduction. Ineligible ABAWD If paid by the individual allow a prorated deduction. Yes If paid by the individual allow a prorated deduction. If paid for the individual, do not allow deduction. Disqualified for : • IPV • Work Registration • Drug Conviction • Transfer of resources Allow full deduction. Yes Allow full deduction. Allow full deduction • Ineligible Fleeing Felons • Probation / Parole Violators Allow full deduction. Yes Allow full deduction. Allow full deduction Non-household members such as: • Separate Household • Ineligible students • Roomers • Boarders *Do not allow deduction. No *Do not allow deduction. *Do not allow deduction. * If the HH’s expenses are paid to the providers, consider the payments as vendor payments. Do not count as income and do not allow deductions for paid expenses. * If the HH’s shelter expenses are shared with the Non-HH member, treat as a: o Pass through payment – if the HH is renting the property, allow the household’s share as a deduction. o Unearned income – if the HH owns the property, allow the entire expense as a deduction 340.13 MEDICAL DEDUCTIONS A. Eligibility 1. Any specified person (except ineligible aliens, ineligible ABAWDS, or individuals ineligible for failure to enumerate) as defined in FNS 212.02 Specified Person is allowed a medical deduction for all medical expenses that will not be paid or reimbursed by another source, such as portions paid by insurance, Medicaid, Medicare, law suits, and special foundations, like the Kidney Foundation. 2. A specified person who was a member of the FNS household immediately prior to entering a hospital, nursing home, or who has died would be allowed incurred medical expenses. Allow the FNS unit that contained the specified person those

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 medical expenses as a deduction if the household is responsible for payment. NC FAST will allow this deduction based on information entered into the system. 3. NC FAST only allows a deduction for amounts that exceed $35 per month. No medical deduction will be given unless the specified person(s) in the FNS unit has more than $35 in monthly medical expenses. 4. If individuals have medical insurance, Medicare, Medicaid, or pending lawsuits, do not delay or deny the medical deduction if reimbursement of expenses is uncertain or unlikely. B. Allowable Medical Expenses The following list includes most allowable medical expenses but is not all-inclusive. 1. Health and hospital insurance premiums (only the portion deemed for the specified person). If you cannot identify this amount, allow a prorata share; 2. Co-payments; 3. Cost associated with a service animal trained to serve the need(s) of an elderly or disabled person. An animal must be specially trained to assist the FNS recipient in order for its associated maintenance costs (from veterinary bills to food and other expenses) to be allowable deductions. If the animal has not been specially trained, it is not a service animal and its expenses are not deductible. A pet or companion animal that a client already has when prescribed a service animal does not automatically become a service animal – the animal must have specialized training to assist the individual with the medical issue for which the animal is prescribed; 4. Reasonable transportation and lodging to obtain medical treatment. This includes trips to fill prescriptions for medicine, dentures, a hearing aid, eyeglasses, sickroom equipment, etc. Allowable mileage is the current business IRS mileage rate. The current milage rate can be found by going to the IRS website and searching business mileage rate. If the transportation could qualify as either a medical expense or a dependent care expense, count as Dependent Care since there is not a limit to Dependent Care Expenses; 5. Medicare Premiums including Medicare Part D premiums; 6. Monthly telephone fees for amplifiers and warning signals for handicapped persons and costs of typewriter equipment for the deaf; 7. The following items if provided, prescribed, or approved by a licensed practitioner or other qualified health professional: a. Medical and dental care;

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 b. Dentures, hearing aids, and prostheses; c. Psychotherapy and rehabilitation services; d. Hospitalization, outpatient treatment, nursing care, and nursing home care including payments by the FNS unit for an individual who was a FNS unit; member immediately prior to entering a hospital or nursing home. Care must be provided by a facility recognized by the State; e. Rental and purchase of medical equipment and supplies; f. Prescribed eye glasses and contact lenses; g. Prescription and over-the-counter medications and medical supplies; and h. Cost of service of the following attendants when service is provided by a non-FNS unit member: homemaker, Home Health Aide, dependent care service, or housekeeper. i. If the FNS unit provides the majority of the attendant’s meals, allow a deduction equal to the current one-person coupon allotment. ii. If the attendant care could qualify as either a medical expense or a dependent care expense, count as Dependent Care since there is not a limit to Dependent Care Expenses. C. Non-Allowable Expenses 1. Cost of special diets, including Ensure, even if filled as a prescription; 2. Premiums paid for health or other medical insurance policies if benefits are payable in a lump sum for death or dismemberment; 3. Premiums paid for policies that are payable directly to the individual in a set daily or weekly amount and do not specify that benefits are for medical expenses; 4. Premiums paid for policies that continue payments on mortgages or loans. These policies are widely referred to as “income maintenance policies”; 5. Costs of transportation or lodging for Medicaid recipients or other persons when expenses are being paid by the county; 6. Late fees and interest charged on credit cards used to pay expenses; 7. Reimbursed medical expenses from a source such as Medicare Set-aside Arrangements that are used to protect Medicare when a person is injured as the result of another person’s negligence.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 8. Senior citizen discounts given by pharmacies. Many pharmacies give a senior citizen discount which is often not reflected in the customer’s record of purchase. The discount is not included in the medical expense deduction; and 9. Any expenses “written off” by the provider. NOTE: If expenses are referred to a collection agency, they are not considered to be written off. D. Verification 1. Verify all medical expenses that the FNS unit is responsible for paying at initial application. 2. Medical expenses do not always have to be verified at recertification. Review the medical expense information provided by the household. Ask the client if the expenses previously reported have changed. Verify the medical expenses if: a. The type or source of expense has changed. For example, the client purchases prescriptions at a different pharmacy or the doctor changed the client’s prescriptions. b. The total of medical expenses has changed by more than $25. If the expenses have changed by less than $25.00, do not verify unless c. below applies. c. The information/verification provided is incomplete, inaccurate, inconsistent, or outdated. 3. If the FNS unit reports an anticipated change in medical expenses during the application or recertification process, flag the case to add the expense if already verified. If not already verified, flag the case to request verification of the anticipated change when it is expected to occur. Send the DSS-8650. Refer to FNS 515 SR Changes during CP to determine the appropriate reaction to a change in medical expenses. 4. If a specified person reports that they cannot afford to purchase or obtain medical services, (i.e., prescriptions, doctor visit, etc.), the expense cannot be anticipated nor allowed as a deduction. 5. Give the FNS unit at least ten calendar days to provide verification. 6. Give the FNS unit a DSS-8650. 7. Offer assistance to the FNS unit in obtaining information. 8. Resolve any discrepancies prior to allowing the deduction.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 E. Do not request a specific type of verification as any source that reasonably verifies the deduction is acceptable. Some acceptable sources of verification include, but are not limited to: 1. Current bills or receipts; 2. Statements from providers; 3. Pharmacy computer printouts; 4. Insurance policies or statements from insurance companies; and 5. Medicare Explanation of Benefits (EOB). NOTE: If you cannot identify the amount the specified person is responsible for paying, do not allow a deduction until an amount can be determined. 340.14 MEDICAL EXPENSE TYPES AND BUDGETING PROCEDURES A. One-time-only Expenses 1. One-time-only medical expenses are those expenses that cannot be reasonably expected to recur. This includes such expenses as emergency room visits due to an accident, a doctor visit for flu, etc. 2. One-time-only medical expenses that have a repayment plan established between the customer and the medical provider are allowed as a recurring expense. (See 340.14, B., Recurring Medical Expenses.) 3. Expenses Reported at Application One-time-only expenses incurred and billed prior to the month of initial application or reapplication (old bills) are allowed as a deduction if: a. The applicant/recipient was a specified person at the time the bill was incurred; and b. The bill is unpaid (in full or in part); and c. The bill has not been written off by the medical provider or paid by another source; and d. The bill was not incurred and billed in a prior CP unless it is under a repayment plan. If the expense is under a repayment plan, it is treated as a recurring expense. See 340.14, B.; and e. The bill has never been allowed as a medical deduction for FNS purposes in a prior CP. Allow as an expense an old bill incurred in a prior CP but first billed and reported in the current CP as an expense (such as a hospital bill).

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 4. Budgeting One-time-only Expenses at Application a. The FNS unit has the option of having the old bill prorated over the initial CP or allowed as a one-month deduction for the month of application. Do not allow the old bill reported at application as a deduction beyond the initial CP. b. Unpaid or paid medical expenses incurred and billed in the month of application are prorated over the initial CP or allowed as a one-time deduction for the month of application. c. If the FNS unit reports new medical expenses in the month of application, evaluate them as an allowable deduction. 5. Expenses Reported at Recertification a. Allow paid or unpaid one-time-only medical expenses incurred and billed in the CP and reported by the last month of the CP. b. Do not allow expenses that were reported after the CP expires unless they are under a repayment plan. If the expenses are under a repayment plan, allow the deduction as a recurring expense. See 340.14, B. c. Allow the deduction if it is reported as part of the recertification process but provided later in the CP. This would not be considered a change in situation since the information was provided at recertification. 6. Budgeting One-time-only Expenses at Recertification a. The FNS unit has the option of having the one-time-only bill prorated over the new CP; or b. Allowed all in one month in the last month of the CP. If allowed all in one month, a supplement must be issued for the last month of the CP. EXAMPLE: Certification Period = 12/98 – 11/99 Recertification Interview 11/15/99 Incurred and First Billed Reported Allowable Deduction 11/27/99 11/27/99 Entire expense in 11/99 as a supplement or prorated over new CP. 11/27/99 12/02/99 None, unless set up under a repayment plan. Allow as a recurring expense. 7. Expenses Reported During the Certification Period

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 a. The FNS unit is not required to report changes in medical expenses during the CP. b. If a Simplified Reporting FNS unit reports a change in medical expenses that would increase benefits during the CP, request verification of the reported change in medical expenses prior to acting on the change. Send a DSS-8650. Do not terminate benefits if the FNS unit fails to provide verification. c. Do not react to the change if a FNS unit reports a change in medical expenses that would decrease benefits. d. One-time-only medical expenses incurred and billed in a previous CP but not reported until after the CP expires, are not allowed as a deduction unless the expense is under a repayment plan. If the expense is under a repayment plan, allow a deduction as a recurring expense. See 340.14, B. Example: Certification Period – 12/98 – 11/99 Incurred and First Billed Reported Allowable Deduction 5/99 5/99 Entire expense in 5/99 as a supplement or prorated over 5/99 – 11/99. 5/99 11/99 Entire expense in 11/99 as a supplement or prorated over new CP. 5/99 12/99 None, unless set up under a repayment plan. Allow as a recurring expense. 8. Budgeting One-time-only Expense During the Certification Period a. Prorated over the remaining months of the current CP (including the month reported); or b. The entire expense is allowed in the month reported. If allowed all in one month, a supplement must be issued for the month the expense is reported. B. Recurring Medical Expenses 1. Recurring medical expenses are those expenses that can be reasonably expected to continue. This includes such expenses as prescriptions for a chronic condition, regularly scheduled doctor visits, etc. 2. There are two types of recurring medical expenses. a. Monthly expenses, and

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 b. Non-monthly expenses 3. At application and recertification, request verification of all reported monthly medical expenses from the calendar month prior to the month of application. See Section 340.13 (D) (2) for monthly medical expenses at recertification. 4. Request verification of any reported non-monthly recurring medical expenses from the appropriate time period. 5. Recurring Expenses Reported at Application and Recertification a. Monthly Expenses i. To determine monthly recurring expenses, use the calendar month prior to the month of application or recertification. Use the full prior month’s medical expenses. ii. Do not include any expenses that have stopped. Document these expenses as having stopped in the NC FAST case record. iii. Installments are considered ongoing monthly expenses. Do not allow a deduction for these expenses beyond the pay-off month. b. Non-monthly Expenses i. To determine recurring non-monthly expenses, request the recurring expenses for the three calendar months prior to the month of application or recertification. ii. If the expense is incurred less often than quarterly, request verification from the appropriate time period. iii. Use only those expenses that are expected to continue during the CP. These expenses include, but are not limited to: • Prescriptions and supplies taken or used on a regular schedule but purchased less often than monthly; or • A regularly scheduled doctor visit every other month or quarterly. iv. To convert the allowable non-monthly expenses to a monthly amount, divide the total expenses by the number of months covered. EXAMPLE:A prescription obtained every other month for $50 would be an allowable expense of $25 monthly ($50 ÷ 2 = $25). 6. Budgeting Recurring Expenses at Application and Recertification

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 Determine the allowable monthly medical deduction for recurring expenses by adding the total monthly expenses to the converted monthly amount for non- monthly expenses. 7. Expenses Reported During the Certification Period a. The FNS unit is not required to report changes in medical expenses during the CP. b. If a FNS unit reports a change in medical expenses that would increase benefits during the CP, request verification of the reported change in medical expenses prior to acting on the change. Send a DSS-8650. Do not terminate benefits if the FNS unit fails to provide verification. 8. Budgeting Recurring Expenses During the Certification Period a. Determine the allowable deduction for the changed medical expense. b. Add this amount to the current expense being allowed. The result is the new monthly medical deduction. c. Delete any existing expense being replaced by a new or changed expense. 340.15 SPECIAL PROCEDURES FOR MEDICAL EXPENSES A. When a specified person resides in a group home, only allow the medical expenses that can be identified separately from food and shelter payments made to the home. B. Verified anticipated changes in the FNS unit medical expenses are allowed if they can be reasonably expected to occur during the CP based on available information about the recipient’s medical condition, public or private insurance coverage, and current medical expenses. This can be a “one-time-only” or a “recurring” expense. Example: A specified person states he will start a new medication next month, and the pharmacist verifies the cost of the new medication. If the FNS unit reports an anticipated expense but verification is not available, flag the case to request verification when the expense occurs. C. The lump-sum annual adjustment that some veterans receive is not considered a reimbursement for medical expenses. The amount of the monthly pension payment and the annual adjustment are based on the family’s other income and expenses. At the end of the year, the Veteran’s Administration (VA) sends a letter to the family requesting verification of the past year’s income and out-of-pocket medical and educational expenses. The VA will then either establish a claim for an overissuance or make a retroactive income payment to the family. Monthly pensions in the coming year may also be adjusted. The annual adjustment is not considered to be a recurring

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 payment or reimbursement because the family could receive a claim for overissuance or a payment. 340.16 CASES WITH MEDICAL INSURANCE A. Medicaid Never prorate a Medicaid deductible over the CP. The specified person may not meet the full Medicaid deductible. Allow only the anticipated and verified medical expenses that a FNS unit is responsible for paying. B. All Other Medical Insurance (Including Medicare) Allow the percentage of expenses the insurance will not pay. If the customer’s insurance pays 80% of his medical expenses after the deductible is met, allow the customer 20% of his reported and verified medical expenses as a deduction. 340.17 ALLOWABLE MEDICAL EXPENSES NOT COVERED BY MEDICARE, MEDICAID, MQB, AND CAP A. Medicare Qualified Beneficiaries 1. Prescriptions; 2. Over-the-counter medications or supplies; 3. Private medical insurance premium; 4. Medical care, lodging, and transportation (non-county initiated); 5. Dental care; and 6. Corrective lenses for eyes unless cataract surgery is done. B. Medicare 1. Prescriptions; 2. Over-the-counter medications or supplies; 3. Private medical insurance premium; 4. Medical care, lodging, and transportation; 5. Dental care; and 6. Corrective lenses for eyes unless cataract surgery is done. C. Medicaid 1. Over six prescriptions (unless life threatening);

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 2. Over-the-counter medications or supplies; 3. Private medical insurance premium; 4. Medical care, lodging, and transportation (non-county initiated); 5. Flu shots; 6. Routine foot care; 7. Artificial limbs; 8. Hearing aids and supplies; and 9. Co-payments. D. Community Alternative Program (CAP) 1. Over-the-counter medications or supplies; 2. Private medical insurance premium; 3. Medical care, lodging, and transportation (non-county initiated); 4. Flu shots; 5. Routine foot care; and 6. Hearing aids and supplies. 340.18 DOCUMENTATION A. Document in NC FAST the method of verification, the amount of the expenses, the date verification is received, and the amount of all reimbursements received or expected. B. In NC FAST, actual medical expenses are entered separately; do not round. 340.19 CHILD SUPPORT DEDUCTION A. Allow an income deduction for legally obligated child support payments, including arrearages, that the FNS unit member anticipates paying to or for a non-household FNS unit member. This includes payments made to a third party on behalf of the non- household member (vendor payments). This deduction is allowed prior to screening for the maximum allowable gross income limits. B. Legally obligated child support is: 1. Court ordered; or 2. Ordered through an administrative process (such as IV-D); or

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 3. Ordered through a legally enforceable separation agreement. C. Take the following steps when a FNS unit member reports they pay legally obligated child support to or for a non-household member. 1. Verify both the child support amount ordered and the child support amount actually paid (including arrearages which can be anticipated by the FNS unit member.) 2. Allow as an income deduction the child support actually paid (including arrearages) by the FNS unit member. This includes court ordered payments of rent, mortgage, and other shelter expenses to the custodial parent and child in lieu of child support and court ordered payments for health insurance coverage for the child. Prorate the premium and exclude the amount paid for a non- custodial child when the health insurance policy covers household members and a non-custodial child. 3. Do not allow an income deduction for alimony payments, spousal support payments, and property settlement payments paid by a FNS unit member. D. Do not request a specific type of verification as any source that reasonably verifies the deduction is acceptable. Some acceptable sources of verification include, but are not limited to: 1. Court order (verifies obligation); 2. Administrative order (verifies obligation); 3. Legally enforceable separation agreement (verifies obligation); 4. Canceled checks (verifies actual payment); 5. Wage withholding statements (verifies actual payment); 6. Unemployment Insurance Benefits (UIB) withholding statements (verifies actual payment); 7. Statements from the custodial parent on received child support payments (verifies actual payment); and 8. Clerk of Court or ACTS Inquiry (verifies actual payment). E. If the FNS unit member who is currently paying child support has been under an order to pay support for at least two months: 1. Verify two months of payments prior; and 2. Use the average of the two months as an income deduction for the CP if the child support is paid monthly.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 3. Convert child support payments paid on a weekly, bi-weekly or semi-monthly basis to a monthly amount. The base period for child support payments paid on a weekly, bi-weekly or semi-monthly basis is the month prior to the month of application or recertification. F. If the FNS unit member who is currently paying child support has been under an order for less than two months: 1. Anticipate the income deduction for the CP based on the child support legal order; 2. Convert to a monthly amount child support payments paid on a weekly, bi- weekly, or semi-monthly basis. G. If the FNS unit member has a new legally obligated child support order, anticipate the income deduction for the CP based on the new child support order. H. Do not round each child support payment paid in the base period. Enter the actual total amount of the child support in NC FAST. Each expense must be entered separately. NC FAST will budget the amount of the child support payment as a deduction. NOTE: If the child support is paid by a disqualified FNS unit member (E&T, Workfare, Voluntary Quit, Drug Felon, IPV, or disqualified due to Transfer of Assets), allow the entire child support payment as an income deduction for the eligible FNS unit members. If the child support is paid by an ineligible FNS unit member (ineligible alien or an individual ineligible due to failure to provide or obtain an SSN), allow a prorata share of the payment as an income deduction for the eligible FNS unit members. If the child support is paid by an ineligible student, do not allow the child support payment as an income deduction. I. Issue a DSS-8650 and make the necessary change if verification is provided. Do not terminate benefits if the FNS unit fails to provide verification. NOTE: Proof of support from an ARMY member that makes payments for child support via an allotment should be faxed to 317-510-7563. 340.20 DEDUCTION WAIVER FOR QUALITY CONTROL (QC) LOCK-OUT A. North Carolina has elected to implement a waiver to allow a FNS unit to sign the deduction explanation and waive their right to a deduction under certain circumstances. That is, if they fail to report a deduction, they waive their right to receive the deduction. If the waiver is signed, QC can not verify and include these deductions when they review the case. The waiver statement is being added to several state forms.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 340 DEDUCTIONS Section 340 Change #02-2026 August 4, 2026 NOTE: Issue a DSS-8650 requesting verification of the expenses. The deduction should be allowed if the expenses are verified through other resources (i.e. property taxes verified using the county Register of Deeds database). 1. Deductions must be included on the statement to be considered in this waiver. 2. The statement must acknowledge that the deductions have been explained to the FNS unit and that the FNS unit understands that failure to report or verify the expense acknowledges that they do not want the deduction. 3. The statement must be signed and dated. 4. The statement must be signed at every application or recertification and must cover the QC review period. B. Income Deductions Included in the Waiver 1. Legal child support obligation; 2. Child care expenses; 3. Medical expenses; 4. Shelter expenses; 5. Utility expenses; and 6. Operational expenses for self-employment. C. Deductible items left off the statement will continue to be subject to the QC review process. D. Signing the waiver does not change how the agency handles a reported move. Once a move to a new residence is reported or otherwise becomes known to the agency, act on the shelter and utility costs for the new residence. See FNS 515.12, Change of Residence During the Certification Period.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 350 WHOSE INCOME IS COUNTED

1 Section 350 Change #20-2021 November 1, 2021 FNS 350 WHOSE INCOME IS COUNTED? Change #20-2021 November 01, 2021

350.01 WHOSE INCOME IS COUNTED? Determine if the Food and Nutrition Services (FNS) unit members’ income is countable. Count all non-excluded gross income in a FNS unit whether earned or unearned, unless special circumstances exist as indicated below. A. Disqualified Individuals Include all non-prorated countable gross income when calculating the FNS unit’s benefits if a FNS unit member is disqualified due to: 1. Intentional Program Violation (IPV); 2. Failing to comply with FNS Employment and Training (E&T) requirements or Workfare; 3. Voluntary quit; 4. Drug felony; or 5. Transfer of resources (Include all this member’s countable gross income.). B. Ineligible Individuals Include prorated countable gross income when calculating the FNS unit’s benefits if the individual is ineligible due to: 1. Failing to meet enumeration requirement, or 2. Ineligible ABAWDs 3. Qualified Ineligible Alien 4. Non-Qualified Ineligible Alien a. Count all gross (non-prorated) income of non-qualified ineligible aliens when applying the expedited and gross income test for eligibility purposes. b. Count prorated countable gross income of non-qualified ineligible aliens in calculating the FNS unit’s benefits, if the household’s income does not exceed the gross income level or the household is not subject to the gross income test.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 350 WHOSE INCOME IS COUNTED

2 Section 350 Change #20-2021 November 1, 2021 Note: To prorate, divide the ineligible individual’s gross countable income evenly for all potential FNS unit members. Multiply the prorated share by the number of persons included in the FNS unit. Example: A FNS unit consists of seven persons. The head of household, who has not met the enumeration requirements, is employed and earns $700 per month. $700 / 7 = 100 Prorated Share $100 X 6 (eligible FNS unit members) = $600 $600 = Income of ineligible member to be counted for the remaining FNS unit members Note: Enter all non-prorated gross income of these individuals in NC FAST, the system will prorate based on the determination that the individual is ineligible. C. Student in Higher Education (Technical School or College) A student is anyone who is enrolled in an institution of higher education as defined in FNS 230 Student of Higher Education. 1. Use policy in FNS 230 to determine if the individual meets the FNS definition of a student. 2. If the individual meets the FNS definition of a student use policy in FNS 230 to determine if the individual is an eligible or ineligible student. a. Eligible Student: Include all gross (non-prorated) income when calculating the FNS unit’s benefits. b. Ineligible Student: Do not include this person's income. This person is not eligible to be included in the FNS unit. D. High School Student 1. For a child age 17 or younger, exclude his entire gross earned income only if the child is: a. A student attending any elementary or secondary school recognized, operated, or supervised by the state or local school district (including home- school) or attending classes at least half-time to obtain a GED, and b. Not the head of the FNS unit. 2. Count all (non-prorated) of the eligible students non-excluded unearned income.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 350 WHOSE INCOME IS COUNTED

3 Section 350 Change #20-2021 November 1, 2021 3. Once the student turns 18: Test prospectively for the month after the student turns 18, including the student’s gross earned income. Follow policy in FNS 515 Changes during Certification to determine how to react to the change. E. Fleeing Felons, Probation/Parole Violators, Aggravated Sexual abuse, Murder, and Sexual assault Violators. Count the full (non-prorated) income of these individuals. F. Sponsored Alien A sponsored alien is an alien admitted lawfully for permanent residence who is sponsored financially by an individual. Unless exempt as outlined in FNS 227.09 B Sponsored Non-citizens, count the full (non-prorated) income of any individual (and their spouse, if living together) who executed an Affidavit of Support on behalf of the alien as indicated below. Refugees and Asylees are not sponsored. If the Affidavit of Support was signed or re-signed on or after December 19, 1997, count the full amount of countable income of the sponsor and his spouse (if living together) as unearned income until whichever occurs earlier: 1. The alien becomes a citizen; or 2. Has earned or can be credited with 40 qualifying quarters; or 3. The sponsor dies. NOTE: Beginning January 1, 1997, a quarter in which a wage earner received federal means-tested assistance (Work First, FNS, Medicaid, NC Health Choice, or SSI) does not count as a qualifying quarter. G. Foster Children Under Title IV-E of the Social Security Act, foster care payments are made to persons who take care of children while the social services agency maintains legal responsibility for the child. Determine if the FNS unit wishes to include the foster child(ren) in the FNS unit. 1. If yes, include the foster child’s countable income, count the foster care payment when calculating the FNS unit’s benefits. 2. If no, exclude the foster child’s income including the foster care payment. H. Guardianship Payments

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 350 WHOSE INCOME IS COUNTED

4 Section 350 Change #20-2021 November 1, 2021 Treat guardianship payments authorized under the Demonstration Projects Section of Title IV-E the same as foster care payments. Guardianship payments are made to a person who becomes a child’s (under age 18) legal guardian. Further, the guardian can petition the court to have guardianship terminated at any time. Determine if the FNS unit wishes to include the child receiving guardianship payment. 1. If yes, include the child as a member of the FNS unit, count the guardianship payment as unearned income when calculating the FNS unit’s benefits. 2. If no, treat the child as a boarder and exclude the child and the guardianship payment when calculating the FNS unit’s benefits. I. Absent Wage Earner An absent wage earner is defined as one who is absent from the FNS unit because of work-related travel or who resides away from the FNS unit because of the distance to work. 1. Using the best available information, the worker must use their prudent judgement to evaluate each case on its own merit to determine if the FNS unit contains an absent wage earner. If the FNS unit disagrees, the wage earner and the FNS unit are responsible for establishing that the wage earner is not a member of the FNS unit. If the absent wage earner maintains a separate residence, consider whether the individual is separate from the FNS unit. 2. An absent wage earner is included in the FNS unit. Count all (non-prorated) gross income when calculating the FNS unit’s benefits. 3. If the absent wage earner is in the military, determine the length of absence. a. If absent less than 30 days, continue to include the member in the FNS unit and count his income. b. If absent 30 days or more, do not include the individual or his income in the FNS unit. This applies to both temporary duty (TDY) and permanent change of station (PCS). Count any cash contributions made to the FNS unit as unearned income. Also consider any deposits made to a joint account as unearned income to the FNS unit. 4. If the absent wage earner has a joint checking or savings account with a FNS unit member, count any deposits made to that account as unearned income, unless a resulting trust exists. Refer to FNS 390 Resources. J. Non-HH Members Do not count any of the income.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 350 WHOSE INCOME IS COUNTED

5 Section 350 Change #20-2021 November 1, 2021 • Consider any income given to the FNS unit as contribution income. • If the FNS unit’s expenses are paid to the providers such as landlord or utility company, consider the payments as vendor payments. Do not count as income and do not allow deductions for paid expenses.

Whose Income is Counted Reference Sheet INDIVIDUAL GROSS INCOME & EXPEDITED TEST BUDGETING INCOME Non-qualified ineligible non- citizen Count all of the ineligible non-citizen’s countable gross income. Include only eligible household members to determine gross income limit amount. Count prorated income. Qualified ineligible non-citizen Count prorated income

Ineligible for failure to provide SSN Count prorated income

Ineligible ABAWD Count prorated income

Disqualified for : • IPV • Work Registration • Drug Conviction • Transfer of resources Count all of the individual’s non-excluded income. Count all of the individual’s non-excluded income. • Ineligible Fleeing Felons & Probation • Parole Violators • Aggravated Sexual abuse, Murder, and Sexual assault Violators. Count all of the individual’s non-excluded income. Count all of the individual’s non-excluded income. Non-household members such as: • Separate households • Ineligible students • Roomers • Boarders Do not count any of the individual’s income. Note: Count any income given to the household as contribution income. Do not count any of the individual’s income. Note: Count any income given to the household as contribution income.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 360 DETERMINING BENEFIT LEVELS

1 SecƟon 360 Change #01-2025 October 1, 2025 FNS 360 Determining Benefit Levels CHANGE# 01-2025 OCTOBER 1, 2025 360.01 DEDUCTIONS AND MAXIMUM ALLOWABLE RESOURCES A. Standard Allowance for UƟliƟes 1. HeaƟng and Cooling Standard UƟlity Allowance (SUA) 2. Non-HeaƟng/Non-Cooling Basic UƟlity Allowance (BUA) 3. Telephone UƟlity Allowance (TUA)

Roomers, boarders and foster children who are not included in the Food and NutriƟon Services (FNS) unit and ineligible students are not included in the unit size for calculaƟon of the standard allowance for uƟliƟes. B. Standard DeducƟon A standard deducƟon is allowed for Food and NutriƟon Services unit (FNS unit) each month according to household size. Only eligible FNS unit members are included in the household size for calculaƟon of the standard deducƟon. The amount is automaƟcally calculated by NC FAST. EffecƟve October 1, 2025: Household Size Standard DeducƟon 1 $209 2 $209 3 $209 4 $223 5 $261 6+ $299 Current SUA, BUA, and TUA Amounts Food and NutriƟon Services Unit Size SUA BUA TUA 1 $637 $392 $42 2 $699 $431 $42 3 $768 $474 $42 4 $837 $518 $42 5 or more $912 $564 $42

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 360 DETERMINING BENEFIT LEVELS

2 SecƟon 360 Change #01-2025 October 1, 2025

C. Earned Income DeducƟon Twenty percent of earned income is deducted. D. Maximum Allowable Resource Limits for Non-Categorically Eligible households 1. $4,500 for FNS units with a member age 60 or older or disabled. 2. $3,000 for all other FNS units. 3. $4,500 or more of winnings from gambling, lotery, bingo, or cash prizes, households are no longer eligible for FNS benefits. E. Dependent Care DeducƟon Allow as a deducƟon any dependent care expenses incurred and payable for a dependent child or adult under the age of 18 and for individuals with disabiliƟes of any age in the FNS unit. Allow acƟvity fees that are associated with the care provided to the dependent that are necessary for the household to parƟcipate in the care. AcƟvity fees do not have to be mandatory to be deducƟble. Examples of acƟvity fees that may be deducƟble include cost of an art class for an aŌer-school program, addiƟonal equipment fees charged for atending sports camp, or the cost of field trips sponsored by summer camps. F. Excess Shelter DeducƟon The maximum excess deducƟon for FNS units without a specified person is $744 each month. There is no limit for FNS units with a specified person as defined in SecƟon 212.02, Specified Person. G. Homeless Shelter Allowance Households in which all members are homeless, are allowed a standard or excess deducƟon for incurred/responsible or anƟcipated shelter expense. The homeless shelter standard deducƟon is $198.99 per month. Homeless Individual: An individual who lacks a fixed and regular night-Ɵme residence or whose primary night-Ɵme residence is: 1. A supervised shelter designed to provide temporary accommodaƟon. 2. A halfway house or similar insƟtuƟon that provides temporary residence for individuals intended to be insƟtuƟonalized.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 360 DETERMINING BENEFIT LEVELS

3 SecƟon 360 Change #01-2025 October 1, 2025 3. Temporary accommodaƟon in the residence of another individual for no more than 90 days. 4. A place not designed for or ordinarily used as a regular sleeping accommodaƟon for people (a hallway, a bus staƟon, a lobby or similar place). To be eligible for the homeless shelter allowance, a household must be responsible or reasonably expect to incur shelter costs during a month. Homeless households are not eligible for the shelter allowance if they are not responsible for paying or anƟcipate paying shelter cost during the month. 5. Document the case with: a. The household’s status as a homeless household; and b. The household is responsible for shelter expenses that enƟtle it to the homeless shelter deducƟon during the budget month; and c. The amount the household declares is responsible for paying shelter expenses. 6. Standard verificaƟon for homeless shelter expenses: a. Statements from employees and volunteers of homeless shelters, halfway houses, etc. b. Statements from individuals who made temporary accommodaƟons available c. Statements from providers of social services If a household has difficulty in obtaining tradiƟonal types of verificaƟon of shelter costs, use prudent judgement in determining if verificaƟon is adequate. Note: A homeless individual claims to have incurred/responsibility of shelter costs for several nights at a hotel. If costs reported are reasonable, accept this informaƟon as adequate and allow the household to use the shelter esƟmate. 7. No other shelter costs, including the uƟlity standard or telephone standard, may be used if the homeless shelter allowance is used. The homeless shelter allowance also may not be used if the household claims shelter costs that exceed the allowance. Higher or other shelter costs must be handled as a part of the shelter expense deducƟon in which case the household may or may not receive an actual deducƟon.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 360 DETERMINING BENEFIT LEVELS

4 SecƟon 360 Change #01-2025 October 1, 2025 8. Note: If the Homeless Shelter DeducƟon is not allowed, then SUA, BUA or TUA may be allowed if applicable. 360.02 MAXIMUM MONTHLY INCOME AND ALLOTMENT A. Maximum Monthly Income - EffecƟve October 1, 2025: Food and NutriƟon Services Unit Size 200% Maximum Allowable Gross Income Limit 130% Maximum Allowable Gross Income Limit

100% Maximum Allowable Net Income

1

$2,610

$1,696

$1,305 2 $3,526 $2,292 $1,763 3 $4,442 $2,888

$2,221 4 $5,360 $3,483

$2,680 5 $6,276 $4,079

$3,138 6 $7,192 $4,675

$3,596 7 $8,110 $5,271

$4,055 8 $9,026 $5,867

$4,513 Each addiƟonal member (+) $918

(+) $596 (+) $459 B. Maximum Allotment - EffecƟve October 1, 2025, to September 30, 2026 Food and NutriƟon Services Unit Size Maximum Allotment 1 $298 2 $546 3 $785 4 $994 5 $1,183 6 $1,421 7 $1,571 8 $1,789 Each addiƟonal member (+) $218

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 360 DETERMINING BENEFIT LEVELS

5 SecƟon 360 Change #01-2025 October 1, 2025 360.03 INCOME STANDARDS FOR SEPARATE FOOD AND NUTRITION SERVICES UNIT STATUS Certain elderly and disabled persons may be granted separate FNS unit status when living with others, if the income of the people with whom they reside does not exceed the maximum allowable monthly amounts shown below. Refer to SecƟon 210, Household Concept, for further instrucƟons. Maximum Monthly Income - EffecƟve October 1, 2025: Food and NutriƟon Services Unit Size 165% Maximum Allowable Gross Income Limit 1 $2,152 2 $2,909 3 $3,665 4 $4,421 5 $5,177 6 $5,934 7 $6,690 8 $7,446 Each addiƟonal member (+) $757

360.04 CALCULATION OF BENEFIT LEVEL A. General Policy Use the DSS-1700, ApplicaƟon Worksheet, to manually determine the monthly allotment: 1. If there is a system failure; or 2. To prepare a trial budget. See DSS-1700, ApplicaƟon Worksheet, instrucƟons in 360.04, D. B. Income Eligibility Standards Use the gross and net income eligibility standards to determine the eligibility of the FNS unit. These standards are based on the monthly countable income of the FNS unit and are shown in 360.02, A. 1. FNS units without a specified member are subject to the gross and net income eligibility standards.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 360 DETERMINING BENEFIT LEVELS

6 SecƟon 360 Change #01-2025 October 1, 2025 2. FNS units with a specified person as defined in SecƟon 212.02, Specified Person, are subject only to the net income eligibility standard. 3. Categorically eligible FNS units are not subject to the gross or net income eligibility standards. C. Conversion 1. When appropriate, convert income and expenses to a monthly amount if the income is received or the expense is billed: a. More frequently than monthly, such as weekly or every two weeks; and b. They are expected to conƟnue for the enƟre month. 2. Convert the income and/or expenses to a monthly amount by mulƟplying: a. Weekly amounts by 4.3; or b. Bi-weekly (every 2 weeks) amounts by 2.15; or c. Semi-monthly (twice per month) amounts by 2. D. Rounding Policy Unless otherwise noted, use standard rounding procedures to round to two decimals (cents). 1. Round down when the third decimal is 4 or less. Example: $100.22 X 2.15 = $215.473 round to $215.47. 2. Round up when the third decimal is 5 or more. Example: $100.33 X 4.3 = $431.419 round to $431.42. E. InstrucƟons for compleƟng DSS-1700 , ApplicaƟon Worksheet 1. Enter total monthly gross self-employment income. 2. Enter total monthly self-employment business costs. 3. Subtract line 2 from line 1. Result is the Net monthly self-employment income before taxes. 4. Add line 3 and all monthly wage and salary income. 5. Enter monthly income received from educaƟonal grants, scholarships, or loans.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 360 DETERMINING BENEFIT LEVELS

7 SecƟon 360 Change #01-2025 October 1, 2025 6. Enter monthly tuiƟon and mandatory fees. 7. Subtract line 6 from line 5. 8. Add line 4 and line 7. 9. Add line 8 and total countable monthly unearned income. 10. Enter farm loss from line 3. 11. Subtract line 10 from line 9. Result is Gross Monthly Income. 12. MulƟply line 4, gross monthly earned income, by 20%, the earned income deducƟon. See 360.01, C. 13. Enter the monthly standard deducƟon based on the FNS unit household size. See 360.01, B. 14. If applicable, enter total allowable medical expenses. 15. Enter the Medical threshold amount. 16. Subtract line 15 from line 14. Result is medical expenses allowable. 17. Enter allowable dependent care expenses. 18. Enter legally obligated child support. 19. Enter Homeless Shelter DeducƟon. Note: Homeless individuals cannot receive both the Homeless Shelter DeducƟon and shelter and uƟlity deducƟons. Workers must evaluate to determine the best benefit to the client. 20. Add lines 12, 13, 16, 17, 18, and 19 and enter total. 21. Subtract line 20 from line 11. RESULT: Net monthly income aŌer all allowable deducƟons except shelter expenses. 22. Total shelter and uƟlity expenses. 23. Divide line 21 by 2. 24. Subtract line 23 from line 22. Result equals excess shelter costs. 25. Subtract line 24 from line 21. RESULT: Net monthly income aŌer all allowable deducƟons. If this amount is more than the net income eligibility limit, deny or terminate the case. If less than the limit, conƟnue to 26.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 360 DETERMINING BENEFIT LEVELS

8 SecƟon 360 Change #01-2025 October 1, 2025 26. Enter maximum allotment for FNS unit size. 27. MulƟply line 25 by 30%. 28. Subtract line 27 from line 26. Round the result down to the whole dollar. Example: $192 - $30.10 = 161.90, round down to $161. (Line 29) All one and two-person FNS units must receive a minimum monthly allotment of $24 before proraƟon of the iniƟal monthly allotment. Refer to Figure 360-1 for an example of a completed DSS-1700, ApplicaƟon Worksheet. F. ProraƟon of IniƟal Month’s Benefits 1. NC FAST automaƟcally prorates from the date of applicaƟon. In some instances, proraƟon is not applicable. NC FAST will prorate based on how informaƟon is entered into the system. The first month's benefits are not prorated when: a. Adding a new member to a parƟcipaƟng FNS unit. b. A migrant or seasonal FNS unit parƟcipated in the FNS program for any part of the benefit month prior to the month of applicaƟon. c. An applicaƟon for recerƟficaƟon is reopened because it is determined that informaƟon was provided within the first 30 days. 2. For manual calculaƟons, use the formula in 360.04, F. 3. a. Use a standard 30-day calendar month. A FNS unit applying on the 31st of a month is treated as though it applied on the 30th. b. When an applicaƟon is denied because of a FNS unit delay, reopen the applicaƟon if the FNS unit takes the required acƟon within 30 days of the denial. Consider the month that the applicaƟon is reopened the iniƟal month. For proraƟon purposes, change the date of applicaƟon to the date the informaƟon is received. 3. Determine manually the amount of the prorated allotment using the following formula. (31 - Date of ApplicaƟon) x Full Month's Benefits = Prorated Allotment 30 a. Total days in a month are 31.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 360 DETERMINING BENEFIT LEVELS

9 SecƟon 360 Change #01-2025 October 1, 2025 b. Date of applicaƟon. c. Subtract line b from line a. d. MulƟply line c. by the full monthly allotment on line 28. e. Divide lined by 30. Round down to whole dollars. Result is prorated allotment. EXAMPLE: A FNS unit’s date of applicaƟon is the 18th and the monthly allotment is $256. The computaƟon is:

(31-18) X $256 30

(13) X $256 30

$3328 30

$110.00 Prorated Allotment

4. If the prorated allotment is less than $10, issue no benefits for the iniƟal month. If the allotment prorates to zero, do not deny the applicaƟon.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 390 RESOURCES

1 Section 390 Change #02-2024 October 1, 2024 FNS 390 RESOURCES Change #02-2024 October 1, 2024

390.01 RESOURCES REQUIREMENTS A. General Requirements The maximum allowable resources, including both liquid and non-liquid assets, of all members of the non-categorically eligible Food and Nutrition Services (FNS) unit shall not exceed: • $3,000 for the regular FNS household • $4,500 for the FNS units including a member or members age 60 or over, or a Specified Person. See FNS 212.02 Specified Person for definition of Specified Person. B. Excluded Resources. Do not count the following resources: 1. Belonging to Supplemental Security Income (SSI) recipients. 2. Included in a Bankruptcy Order are considered inaccessible and are excluded during the time in which they are part of the order. 3. Belonging to categorically eligible FNS units. Categorically eligible FNS units are not required to meet the resource limits. If the household is categorically eligible the household automatically passes the resource test. Do not require any resource verification. Refer to FNS 220 Categorical Eligibility for additional policy. 4. Belonging to an ineligible student. C. Whose resources are counted? Individuals residing with the FNS unit are considered household members and all of the resources of these individuals are considered available. Include 100% of countable resources for the following individuals: 1. Non-Categorically Eligible FNS unit members. 2. Ineligible aliens.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 390 RESOURCES

2 Section 390 Change #02-2024 October 1, 2024 3. Ineligible ABAWDs. 4. Disqualified individuals (including individuals who fail to provide or apply for a social security number). 5. Sponsor of an Alien. If the Affidavit of Support was signed (or re-signed) on or after December 19, 1997, the full amount of the resources of a sponsor and his spouse (if living together) is counted to the alien’s FNS unit until whichever occurs earliest: a. The alien becomes a citizen; or b. The alien has worked or can be credited with 40 qualifying quarters of social security coverage. Beginning January 1, 1997, a quarter in which the wage earner received federal means-tested assistance (Work First, FNS benefits, Medicaid, North Carolina Health Choice, or SSI) does not count as a qualifying quarter; or c. The alien or sponsor dies. 390.02 VERIFICATION Verification of resources for non-categorically eligible households is required at each application, reapplication, recertification, and each reported change in resources as follows: A. Accept client’s statement for the value of resources, unless the value of the resource is considered questionable. A resource is considered questionable when there is reason to believe that the reported value is incorrect, or the sum of all countable resources equals or exceeds the FNS unit’s resource limit. If verification is necessary, use the DSS-8650 Request for Information Needed to Complete Your Food Assistance to request information. Give the FNS unit ten calendar days to provide the verification. B. Verification of the availability or accessibility of the following type of resources is required at application. Subsequent verification is not required unless the situation changes or becomes questionable. 1. Jointly owned resources. 2. Resulting trust. 3. Resources for which availability or accessibility must be established.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 390 RESOURCES

3 Section 390 Change #02-2024 October 1, 2024 A resource is inaccessible if: • The FNS unit must petition or make an application to the clerk of court, judge, trustee, or financial institution for release of funds. • When a trust fund can only be accessed for hardship, it is not considered accessible. • Any funds released from the resource would be counted as income in the month received when it can be reasonably anticipated. Do not count the remaining funds as a resource. 390.03 DOCUMENTATION Document the following information in the appropriate evidence in NC FAST. • Verification source, including client’s statement; and • Date verified; and • Calculations used to determine the resource value; and • Countable resource value. 390.04 APPLICANT FNS UNITS Applicant FNS units must meet the resource limit as of the date of the interview. Special procedures for determining resources at initial application are as follows: A. If an individual applies, is interviewed the same day, and reports excess resources, the applicant is ineligible as of the date of application. The case should be denied unless the resource is rebuttable, and the client wishes to rebut the value. B. If the interview is held on a day other than on the date of application, follow these guidelines. 1. If the interview is conducted in the month of application and the FNS unit is eligible by the date of interview, approve the application effective the date of application. 2. If the interview is conducted in the month following the month of application, and the FNS unit had excess resources on the date of application but is eligible by the date of interview, deny assistance for the first month and approve the application effective the first calendar day of the second month.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 390 RESOURCES

4 Section 390 Change #02-2024 October 1, 2024 3. If the FNS unit was eligible on the date of application, but ineligible due to excess resources by the date of interview and the interview is conducted during the month of application, deny the application. 4. If the interview is conducted in the month following the month of application, and the FNS unit is eligible on the date of application but ineligible due to excess resources by the date of interview, approve the application for the first month and deny assistance for the second month. 390.05

COUNTABLE/EXCLUDABLE REFERENCE LIST OF RESOURCES

Resource Item

Yes

No Manual Section Achieving a Better Life Experience (ABLE) accounts are tax- favored savings accounts established to provide secure funding for disability related expenses on behalf of designated beneficiaries deemed disabled before age 26. Note: The funds in ABLE accounts should be excluded as both income and resources.

N 390.14 Agent Orange Settlement payments or similar funds which are disbursed by the AETNA Insurance Company to veterans or surviving spouses and children. NOTE: Veteran's Administration (VA) benefits received for a service connected disability resulting from exposure to Agent Orange.

N 390.14 Alaska Native Claims Settlement Act payments.

N 390.14 Allowances paid under the law to Vietnam veterans’ child(ren) born with spina bifida and other birth defects.

N 390.14 Annuities

N

Battered Women’s Resources - Jointly owned with a former household member and access is dependent on the agreement of the joint owner

N 390.14 Boats

N 390.14 Bonds Y

390.08 Buildings, regardless of location

N 390.14 Burial Plans/Plots/Spaces

N 390.14

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 390 RESOURCES

5 Section 390 Change #02-2024 October 1, 2024 Business Liens (against property) • Liquid resources that are not accessible to the FNS unit • Non-liquid resources that the FNS unit is prohibited from selling as a part of the lien agreement

N N

390.14 Business Resources • Incorporated • Unincorporated

Y

N

390.14 Cash Y

390.06 Checking Accounts Y

390.08 Certificates of Deposit (CD) Y

390.08 Child Tax Credit Disregard the month of receipt and the month following receipt. Y

390.07 Combined Funds (countable and excluded funds commingled) • Combined less than or equal to 6 months • Excluded funds combined more than 6 months Note: This includes funds from Educational Loans/Aid.

Y

N

390.14 Contract Sales

N 390.14 Crowdfunding Accounts-online platforms that allow individual donors to fund specific campaigns for charity, individuals in need, projects, and business ventures. • GoFundMe, • Kickstarter, and • lndiegogo Note: Count the actual value of funds accessible to the household at the time of the interview. Y

390.13 Disaster Payments made by the Individual and Family Grant (IFG) Program or the Small Business Administration (SBA) designed for the restoration of a home damaged in a disaster. Such designation must state that the FNS unit is subject to a legal sanction if funds are not used as intended.

N

Disaster Relief and Emergency Assistance payments, including Federal Emergency Management Assistance (FEMA), made as a result of a major disaster.

N

Earned Income Tax Credit (EITC)

N 390.14 Educational Accounts Exclude funds in accounts established under Sec. 529 (qualified tuition program) and 530 (Coverdell education savings) of the Internal Revenue Code.

N

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 390 RESOURCES

6 Section 390 Change #02-2024 October 1, 2024 Educational Aid, Loans and Scholarships (See Combined Funds) Y N 390.14 Energy Assistance

N 390.14 Equity Line of Credit Note: Money withdrawn from the line of credit and available would count as a resource.

N

Escrow Account (Mortgage)

N 390.14 Excluded by Law

N 390.14 Farm Equipment

N 390.14 FEMA payments that were commingled with non-excluded funds 6 months prior. Y

Gambling winnings in excess of $4,500 Y

390.20 GI Bill Funds

N 390.14 Gift Cards

N

Heir Property

N 390.14 Household Goods/Personal Effects

N 390.14 Housing and Urban Development (HUD) retroactive tax and subsidy payments issued pursuant to settlement of Underwood v. Harris.

N

Individual Development Accounts (IDA)

N 390.14 Income Producing Property

N

Indian funds and lands.

N

Indian lands held jointly with the tribe or land that can be sold only with the approval of the Bureau of Indian Affairs (BIA).

N

Jointly Owned Resources, if inaccessible

N 390.17 Land, regardless of location

N 390.14 Land Payments for land held in trust by the U.S. for certain Indian tribes

N 390.15 Life Insurance (Cash Value)

N

Lifetime Right (Life Estate)

N 390.14 Loans Note: Count remaining cash and money in a checking, savings, or CD unless the money is Disaster Relief and Emergency Assistance payments, including Federal Emergency Management Assistance (FEMA). Educational loans combined with countable funds in a checking, savings, or CD for more than 6 months is a countable resource. (See Combined Funds on how to count funds that were prorated as income.) Y

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 390 RESOURCES

7 Section 390 Change #02-2024 October 1, 2024 Lottery winnings in excess of $4,500 Y

390.20 Lump sum, non-recurring Y

390.13 Mobile Homes

N 390.14 Mutual Funds Note: The North Carolina National College Savings Program is a mutual fund designed to save money for college tuition. This is considered a countable resource. Y

390.08 NCKIDS Debit Cards Y

390.08 Payments made to individuals because of their status as victims of Nazi persecution.

N

Payments Counted as Income

N

National Flood Insurance Program (NFIP) Payments

N

Pension Plans/Retirement listed below. • 401 Plans • 401(a) Plans • 403(a) Plans • 403(b) Plans • 408 Plans • 408(A) Plans • 408(p) Plans • 408(k) Plans • 457(b) Plans • 501(c)(18) Plans • Section 8439 of Title 5 USC

N 390.09 Promissory Note Y

390.12 Property in Probate

N 390.14 Radiation Exposure Compensation Act payments These payments are provided to individuals for injuries or death resulting from nuclear testing or uranium mining in Arizona, Nevada, and Utah.

N

Real Property (Land or Buildings) including mobile homes

N 390.14 Remainder Interest

N 390.14 Resulting Trust

N 390.18 Reverse Resulting Trust Y

390.19 Retirement • Accessible • Inaccessible

Y

N

390.09 Savings Account Y

390.08

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 390 RESOURCES

8 Section 390 Change #02-2024 October 1, 2024 Security Deposit being held (Rent/Utilities)

N

Severance Pay Note: Count as income in the month it is received. Count as reserve in the following months. Y

Significant Return - Cannot Be Sold for a Significant Return

N 390.14 Special Supplemental Food and Nutrition Services Program for Women, Infants, and Children (WIC) benefits.

N

Stocks Y

390.08 Time Share Contracts

N

Title I of the Domestic Volunteer Services Act of 1973 payments for such programs as VISTA, University Year for Action, and the Urban Crime Prevention Program.

N

Transferred Resources Y

390.16 Trust Funds • Accessible • Inaccessible

Y

N

390.10 Uniform Relocation Assistance and Real Property Acquisition Policy Act of 1970 Reimbursements

N

UTTA (Uniform Transfer to Minors) Account Y

390.11 Vehicles Note: An automobile or other vehicle used for transportation. This includes boats.

N

390.14 Wartime Relocation of Civilian Law payments which are provided to certain citizens of Japanese ancestry, Japanese aliens, and Aleuts.

N

Worker’s Compensation Medicare Set-aside Arrangement (WCMSA) Note: Medical bills paid by these funds would not be allowed as a medical deduction.

N

390.06 CASH A. Determine how much cash all FNS unit members have. Accept the applicant’s statement, unless questionable. B. Count as resources all cash except money that is counted as income in the month received or income that has been prorated and counted as monthly income.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 390 RESOURCES

9 Section 390 Change #02-2024 October 1, 2024 390.07 CHILD TAX CREDIT This is a tax credit for families with children that have earnings; this is not the earned income tax credit. The child tax credit allows families to claim a refundable income tax credit of up to $2,000 per child. This credit is excluded from consideration as a resource for the month of receipt and the month following receipt. EXAMPLE 1: Household applies for FNS benefits in June. The household reports that they have $4,500 in the bank which is the result of an $8,000 tax refund received in May. The household is not categorically eligible. The household provides verification that the Earned Income Credit (EIC) portion of the refund was $950, and the Child Tax Credit is $2,000. When the EIC and Child Tax Credit ($1,950) are subtracted from the remaining balance the countable resource is $2,550. The FNS household is ineligible. EXAMPLE 2: Household applies for FNS benefits in June. The household reports that they have $3,750 in the bank which is the result of an $8,000 tax refund received in May. The household is not categorically eligible. The household provides verification that the EIC portion of the refund was $950, and the Child Tax Credit was $2,000. When the EIC and Child Tax Credit ($4,250 -$1,950) are subtracted from the remaining balance the countable resource is $2,300. The FNS household is eligible. EXAMPLE 3: FNS household submits recertification in June. The household reports that they have $4,500 in the bank which is the result of an $8,000 tax refund received in April. The household is not categorically eligible. The household provides verification that the EIC portion of the refund was $655, and the Child Tax Credit was $1,000. When the EIC of ($950) is subtracted from the remaining balance the countable resource is $3,845. The Child Tax Credit is no longer exempt. The FNS household is ineligible. 390.08 CHECKING ACCOUNTS, SAVINGS ACCOUNTS, CERTIFICATES OF DEPOSIT (CD’S), STOCKS/BONDS, MUTUAL FUNDS, AND NCKIDS DEBIT CARD A. Determine if anyone in the FNS unit has any of the above. Accept the applicant’s statement, unless questionable. B. Document the name of the financial institution, the account number if known, who owns the account, and the account value. C. Subtract from the account value any money which was counted as income in the month and any penalties or fees for early withdrawal. Subtract any outstanding

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 390 RESOURCES

10 Section 390 Change #02-2024 October 1, 2024 checks. This is very crucial if a FNS unit is close to the resource limit. Count the remainder as the resource. D. If verification is necessary: 1. Use the DSS-8650 to request information. 2. If the FNS unit states that verification of any financial account is not readily available or requests assistance, explain the Financial Privacy Act as outlined on the DSS-3431. 3. Request the FNS unit to provide within ten calendar days a DSS-3431 signed by all account holders. When the signed DSS-3431 is provided, contact the bank or financial institution to verify account balances. NOTE: Clients with NCKIDS debit accounts receive free monthly statements or the balance can be obtained through the internet. 390.09 RETIREMENT ACCOUNTS/PLANS Exclude all tax-deferred retirement accounts. Exclude any funds in a plan, contract or account described in the following sections of the IRS code from consideration as a resource. NOTE: Any funds released from these accounts would be counted as income received when it can be reasonably anticipated. Do not count the remaining funds as a resource.

Authorized

Plan/Account

What Is It? Section 401 IRS Code Traditional Defined-Benefit Plan Employer-based retirement plan that promises retirees a certain benefit upon retirement, regardless of investment performance. Section 401(a) IRS Code Cash Balance Plan Employer-based “hybrid” plan that combines features of defined benefit and defined contribution plans. Each employee is allocated a hypothetical account, but account balances accrue at a specified rate, rather than depending on investment performance. Section 401(a) IRS Code Employee Stock Ownership Plan Similar to a profit-sharing plan that must be primarily invested in the employer’s stock and under which distributed benefits must be offered in the form of the employer’s stock.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 390 RESOURCES

11 Section 390 Change #02-2024 October 1, 2024 Section 401(a) IRS Code Keogh Plan “Informal” term for retirement plans available to self- employed people. Section 401(a) IRS Code Money Purchase Pension Plan Employer-based defined contribution plan under which annual contributions are fixed by a set formula. Section 401(a) IRS Code Profit-Sharing Plan Employer-based defined contribution plan under which employer contributions may, but need not be, linked to profits. Usually refers to non-matching employer contributions Section 401(a) IRS Code Simple 401(k) 401(k)-type plans available only to small businesses: exempt from certain restrictions and subject to some limitations on employer contributions. Section 401(a) IRS Code 401(k) Defined contribution plan that allows employees to defer receiving compensation in order to have the amount contributed to the plan. Commonly referred to as a “cash or deferred arrangement” (CODA). Some 401(k) plans allow after-tax Roth 401(k) contributions. Section 403(a) IRS Code 403(a) Plans that are similar to 401(a) plans but are funded through annuity insurance Section 403(b) 403(b) Tax-sheltered annuity or custodial account plan offered by tax-exempt section 501(c) organizations or public schools. Many are funded by employee contributions that resemble 401(k)s. Section 408 IRS Code IRA Vehicle for tax-deferred retirement savings controlled by individuals rather than employers Section 408(p) IRS Code Simple retirement account IRA Employer-based IRA (to which employers and employees contribute) available to small businesses. Section 408(k) IRS Code Simplified Employee Pension Plan (SEP) Employer-sponsored plan available only to small businesses; allows employer to contribute to employee accounts that function as IRAs and are subject mostly to IRA rules. Generally ceased to apply in 1996. Section 408A IRS Code Roth IRA Same as IRA, except that qualified distributions are tax exempt. Section 457(b) IRS Code Eligible 457(b) Plan Funded plan offered by state and local governments or unfunded plan offered by nonprofit organizations. Section 501(c)(18) Section 501(c)(18) Plan offered mostly by unions. Had to be set by June 1959 and are now largely obsolete.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 390 RESOURCES

12 Section 390 Change #02-2024 October 1, 2024 Section 8439 of Title 5 USC Federal Thrift Savings Plan Plan offered by the federal government to its employees.

390.10 TRUST ACCOUNTS A. Determine if anyone in the FNS unit has trust accounts. Accept the applicant’s statement of the value, unless questionable. B. Verify accessibility of the account through the administrator of the trust, the Clerk of Court's Office, the bank or financial institution in which the trust is invested, or by seeing the trust agreement. C. If verification of the value is necessary, use the DSS-8650 to request information. If the FNS unit states the information is not readily available or requests assistance, contact the trustee or administrator to request verification. Count as resources the value of an accessible trust account (less any fees by the trustee or administrator). 390.11 UNIFORM TRANSFER TO MINORS ACCOUNT These accounts are “custodial accounts” for minors. A donor (who may or may not be the custodian) gives money irrevocably to set up an account for a minor. For the purposes of these accounts anyone under 21 is considered a minor. The custodian of the account has complete access and may withdraw money (though it is to be used to benefit the minor) at any time. The bank or credit union does not verify the purpose of the withdrawal; therefore, the account is a countable resource to the FNS unit of the custodian. 390.12 PROMISSORY NOTES Determine if any FNS unit has any promissory notes. Accept the applicant's statement, unless questionable. A. A promissory note is a written promise made by one or more persons to pay another a specified amount of money at a specified time or on demand. B. Document who owns the promissory note and how much is owed on the note. 1. Use the DSS-8650 to request verification of what is owed. 2. If the FNS unit states the information is not readily available or requests assistance, provide assistance.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 390 RESOURCES

13 Section 390 Change #02-2024 October 1, 2024 390.13 NON-RECURRING LUMP-SUM PAYMENTS Determine if any FSU member has received any non-recurring lump-sum payments. Accept the applicant's statement, unless questionable. Non-recurring lump-sum payments are payments received in one payment rather than recurring payments. Non-recurring lump-sum payments include, but are not limited to: A. Income tax refunds (excluding Earned Income Tax Credits [EITC]). B. Rebates or credits. C. Gifts, awards, and prizes. D. Retroactive social security payments. E. Retroactive SSI payments (exclude if current SSI recipient). F. Retroactive unemployment insurance benefits (UIB). G. Retroactive TANF payments. H. Retroactive Railroad Retirement benefit. I. Stimulus payments. J. Lump-sum insurance settlements. K. Lottery / Gambling Winnings less than $4,500. Document who received the lump sum, the source, the amount, when received, and how much of the lump sum is still available to the FNS unit. Use the DSS-8650 to request verification. If the FNS unit states the information is not readily available or requests assistance, contact the source. Count the amount that is still available as a resource. L. Online fundraising accounts such as but not limited to Crowdfunding and GoFundMe. Count the actual value of funds accessible to the household at the time of the interview. There is no legal basis for excluding funds in online accounts, these accounts must be included in eligibility determinations, even if the funds are used for specific deductible expenses. Once the funds from the account, or any other funds available to the household, are used to pay for an expense that qualifies as an allowable deduction, apply the deduction. If the client has access to the funds from

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 390 RESOURCES

14 Section 390 Change #02-2024 October 1, 2024 the online account and has not used these funds for a qualified expense, then those funds should be counted as a liquid resource. 390.14 NON-COUNTABLE RESOURCES In determining the resources of a FNS unit, the following shall be excluded: A. Household goods and personal effects, including clothing, furniture, jewelry, kitchen items, household appliances, pets, etc. B. Mortgage Escrow Accounts. A mortgage escrow account is a bank account held generally in the name of the depositor and the escrow agent (usually the mortgage holder) which is used to pay taxes, mortgage insurance, fire insurance, etc. C. Installment contract sales which are producing income consistent with the fair market value. D. Resources of an incorporated business. E. Payments counted as income, such as those of students or self-employed persons, which were prorated as income for the period intended to cover. Exclude from resources the portion of any resource counted as income. F. Payments or allowances made under federal, state, and local laws for the purpose of energy assistance. G. EITC is a credit subtracted from the amount of tax withheld to help offset increased living expenses for low-income families. The credit can be received either as a yearly lump sum or with the payroll earnings. 1. Exclude these payments for 12 months from the month of receipt. (Month of receipt is month 1 of the 12-month exclusion period.) 2. To allow this exclusion, the individual who received the EITC payment must: a. Have been a FNS participant when the payment was received; and b. Continue to participate in the FNS program throughout the 12-month exclusionary period. (Breaks in participation of one month or less due to administrative reasons, such as delayed recertification or missing or late quarterly reports, shall not be considered as non-participation in determining the 12-month exclusion.)

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 390 RESOURCES

15 Section 390 Change #02-2024 October 1, 2024 3. Count as a resource any of the EITC payments left at the end of the 12-month exclusion period. Use NCFAST to track the exclusionary period. Flag the case for review in the 11th month of exclusion. H. GI Bill funds set aside as a mandatory salary reduction for military personnel which is used to fund the Veteran's Educational Act of 1984. This can be verified by viewing the Leave and Earnings Statement (LES) of the military personnel. I. Resources of Battered Woman. 1. If the applicant resides in a shelter for battered spouses and children, exclude resources owned jointly with a former household member if the shelter resident's access to the value of the resource is dependent on the agreement of a joint owner who still resides in the former household. 2. A battered spouse’s shelter is a public or private non-profit residential facility that serves battered spouses and children. If the facility serves other individuals, a portion of the facility must be set aside on a long-term basis to serve only battered spouses and children. J. Property That Cannot Be Sold for a Significant Return. This resource is unlikely to produce any significant amount of funds for the support of the household if sold or disposed of. This can occur if the household’s interest is relatively slight or because the costs of selling the household’s interest would be relatively great. (The expected cost to sell the resource must be at least 50 percent or more of the applicable resource limit of the household and the full value of the resource is less than $3,000.) This does not apply to vehicles or financial instruments such as stocks, bonds or negotiables. K. Combined Funds. Do not count as a resource any excluded funds that are kept in a separate account. Exclude these funds when combined in an account with countable funds for six months from the date of commingling the funds. For example: Disaster-related funds deposited into the FNS unit’s savings account. The excluded resources of students and self-employed members which were prorated as income and are then commingled with countable funds retain their exclusion for the period of time over which they were prorated. After the exclusion period, all funds in the commingled account are counted as a resource.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 390 RESOURCES

16 Section 390 Change #02-2024 October 1, 2024 L. Asset(s) With a Business Lien. If a business lien has been placed against non-liquid assets as a result of taking out a business loan and the FNS unit is prohibited by the security or lien agreement with the lien holder (creditor) from selling the asset, exclude from resources. If a liquid asset is not accessible due to a business lien, do not count in resources. Such as but not limited to a savings account or CD used as collateral. M. Individual Development Accounts. N. Payments made to child(ren) of Vietnam veterans who are born with spina bifida. O. Heir Property conveyed to any FNS unit member at death of the property owner. P. All Burial Plans/Plots/Spaces owned by FNS unit member. Q. Lifetime Estate. A person has a lifetime right when he has a claim or interest in real or personal property limited to his lifetime but does not actually own the property. R. Remainder Interest. A person has remainder interest in property when he owns the property, and another individual has the lifetime right. S. All land and buildings, including mobile homes. T. Motor Vehicles – defined as an automobile or other vehicle used for transportation. This includes boats. U. Achieving a Better Life Experience (ABLE) accounts defined as tax-favored savings accounts established to provide secure funding for disability related expenses on behalf of designated beneficiaries deemed disabled before age 26. 390.15 CERTAIN PAYMENTS OR FUNDS FOR CERTAIN INDIAN TRIBES ARE EXCLUDED. THESE INCLUDE: A. Payments received by certain Indian tribe members from certain submarginal land held in trust by the United States. These tribes and Bands include: 1. Bad River Band of the Lake Superior Tribe of Chippewa Indians of Wisconsin. 2. Blackfeet Tribe. 3. Cherokee Nation of Oklahoma.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 390 RESOURCES

17 Section 390 Change #02-2024 October 1, 2024 4. Cheyenne River Sioux Tribe. 5. Crow Creek Sioux Tribe. 6. Lower Brule Sioux Tribe. 7. Devils Lake Sioux Tribe. 8. Fort Belknap Indian Community. 9. Assiniboine and Sioux Tribes. 10. Lac Courte Oreilles Band of Lake Superior Chippewa Keweenaw Bay Indian Community. 11. Minnesota Chippewa Tribe. 12. Navajo Tribe. 13. Oglala Sioux Tribe. 14. Rosebud Sioux Tribe. 15. Shoshone-Bannock Tribes. 16. Standing Rock Sioux Tribe. B. Payments received from the disposition of funds to the Grand River Band of Ottawa Indians. C. Payments received by the Confederated Tribes and Bands of the Yakima Indian Nation and the Apache Tribe of the Mescalero Reservation. D. Payments to the Passamaquoddy Tribe, the Penobscot Nation, and the Houlton Band of Maliseet or any of their members received pursuant to the Maine Indian Claims Settlement Act of 1980. E. Relocation assistance to members of the Navajo and Hopi Tribes. F. Payments to the Turtle Mountain Band of Chippewas, Arizona. G. Payments to the Blackfeet, Grosventre, and the Assiniboine Tribes (Montana) and the Papago (Arizona). H. Per capita and interest payments to the Assiniboine Tribe of the Fort Belknap Indian Community and the Assiniboine Tribe of the Fort Peck Indian Reservation (Montana).

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 390 RESOURCES

18 Section 390 Change #02-2024 October 1, 2024 I. Payments to the Red Lake Band of Chippewas. J. Payments to the Saginaw Chippewa Indian Tribe of Michigan. K. Per capita payments to the Chippewas of Mississippi. L. Payments to heirs of deceased Indians under the Old Age Assistance Claims Settlement Act except for per capita shares in excess of $3,000. M. Per capita payments of $3,000 or less, under the Indian Judgment Fund Act and per capita payments from funds held in trust by the Secretary of the Interior. N. Per capita payments or funds held in trust for the Sac and Fox Tribes of Oklahoma and the Sac and Fox Tribes of Mississippi in Iowa. O. Payments to the Seminole Nation of Oklahoma, Seminole Tribe of Florida, the Miccosukee Tribe of Indians in Florida, and the independent Seminole Indians of Florida except for per capita shares in excess of $3,000. P. Payments received under the White Earth Reservation Land Settlement Act to members of the White Earth Band of Chippewa Indians in Minnesota. Q. Payments or funds received under the Seneca Nation Settlement Act. R. Payments made to the Puyallup Tribe of Washington. S. Per capita payments or funds held in trust for members of the Chippewas of Lake Superior on the following reservations: 1. Wisconsin: a. Bad River Reservation. b. Lac du Flambeau Reservation. c. Lac Courte Oreilles Reservation. d. Sokaogon Chippewa Community. e. Red Cliff Reservation. f. St. Croix Reservation. 2. Michigan:

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 390 RESOURCES

19 Section 390 Change #02-2024 October 1, 2024 a. Keweenaw Bay Indian Community (L’Anse, Lac Vieux, Desert, and Ontonagon Bands). 3. Minnesota: a. Fond du Lac Reservation. b. Grand Portage Reservation Neff Lake Reservation (including Vermillion Lake and Dear Creek). c. White Earth Reservation. 390.16 TRANSFER OF RESOURCES A. Determine if any member of the FNS unit has transferred any countable resource in the last three months. Accept the applicant's statement, unless questionable. B. Document when the transfer took place and why the member transferred the resource. C. If the FNS unit states the resource was transferred solely to receive FNS benefits, evaluate to determine if the transfer of resource disqualification must be applied. 1. Determine what resource was transferred and whether it must be counted or excluded. 2. Determine which FNS unit member transferred the resource and to whom it was transferred. 3. If the resource was transferred between FNS unit members or excluded unit members whose resources are countable to the FNS unit, the household is not subject to the disqualification for transfer. 4. If the FNS unit is subject to the transfer of resource disqualification, determine the value of the transferred resource. NOTE: If the FNS unit states the resource was transferred for any reason other than to obtain FNS benefits, the FNS unit is not subject to the transfer of resource disqualification. D. If the resource, when added to other countable resources, exceeds the allowable resource limit for the FNS unit, determine if the resource was sold or traded at, or near, fair market value. 1. If yes, the FNS unit is not subject to the transfer of resource disqualification.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 390 RESOURCES

20 Section 390 Change #02-2024 October 1, 2024 2. If the amount received is less than the fair market value, follow these procedures to disqualify the FNS unit. a. Applicant FNS Units. i. Obtain a signed statement from the applicant regarding the facts of the transfer. ii. If the applicant refuses to sign a statement, document the applicant’s verbal response in the case file. iii. Determine the length of the disqualification period according to instructions in 390.16 E. iv. Send the FNS unit a denial notice explaining the reason for the denial as well as the length of the disqualification period. v. Disqualify the FNS unit beginning with the month of application. b. Participating FNS Units. i. Obtain a signed statement from the recipient regarding the facts of the transfer. ii. If the recipient refuses to sign the statement, document the recipient’s verbal statements in the case file. iii. Determine the disqualification period according to the instructions in 390.16 E. iv. Send the FNS unit a DSS-8553 Notice of Adverse Action to terminate its FNS benefits. v. Explain the reason for the termination as well as the length of the disqualification period. vi. Unless the FNS unit requests a hearing and receives continued benefits, disqualify the FNS unit beginning with the month after the DSS-8553 expires. E. Determine the length of the disqualification period. 1. Add the value of the transferred resource to the other resources of the FNS unit.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 390 RESOURCES

21 Section 390 Change #02-2024 October 1, 2024 2. Subtract the resource limit from the amount calculated and use this amount to determine the disqualification period from the chart below. 3. The maximum disqualification period is 12 months.

EXAMPLE: An applicant FNS unit with $1,260 in a savings account transfers ownership of stock worth $1,000 for less than fair market value. When added together, they total $2,260. The resource limit for the FNS unit is $3,000. When $3,000 is subtracted from $2,260, the result is $740. According to the chart, $740 results in a three-month disqualification. 390.17 JOINTLY OWNED RESOURCES A. The value of resources jointly owned by separate households will be considered available to each household, unless inaccessibility can be proven. The following are considered inaccessible: 1. Resources in probate proceedings. 2. Resources in divorce litigation. 3. Resources subject to a legal separation agreement. 4. Bank accounts of a service person being deployed overseas when access to the account is solely for the purpose of paying the serviceperson’s bills. The household must document that it can access the account solely for the purpose of paying the serviceperson’s bills, etc., and the household cannot use the funds for itself. It is the responsibility of the applicant/recipient household to provide documentation concerning the arrangement. This could be in the form of a Amount in Excess of The Resource Limit Length of Disqualification 0.00 – 249.99 1 month 390.00 - 999.99 3 months 1,000.00 - 2,999.99 6 months 3,000.00 – 4,999.99 9 months 5,000.00 – up 12 months

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 390 RESOURCES

22 Section 390 Change #02-2024 October 1, 2024 written statement from the serviceperson to this effect, a statement from the involved financial institution, or other means attesting to the fact. B. If the household can demonstrate that it has access to only a portion of the resource, the value of that portion will be counted toward the household’s resource level. C. If a legally binding agreement specifying division exists, divide the resource according to the terms of the agreement. D. Jointly owned bank accounts in North Carolina are accessible by all joint owners in their entirety unless there is a trust (including a resulting trust, see 390.18 Resulting Trust) or legal agreement indicating otherwise. These accounts are not excluded. This also applies to accounts jointly owned with a spouse. (Refer to A. for bank accounts of serviceperson’s who are deployed overseas.) Example: Mary has been separated and living apart from her spouse for 2 years. Mary has a joint savings account with her spouse, who already receives FNS benefits. Mary is applying for FNS benefits for herself. The savings account has $55,000 in it as of time of interview. Because jointly owned bank accounts in NC are accessible to all joint owners in their entirety unless a trust exist, Mary has total resources of $55,000. In addition, Mary’s spouse has total resources of $55,000. E. Divide the equity value of the property by the number of owners to determine the FNS unit’s share, unless inaccessibility is established. F. The resource shall be considered totally inaccessible to the household if it cannot be practically subdivided (The value realized from selling the parts would be significantly reduced from the value of selling the entire resource.), and the household’s access is dependent on the agreement of a joint owner who refuses to comply. G. Determine if the resource is available to the FNS unit and the FNS unit member can dispose of the resource or his interest in the resource without the consent of the other owner(s), including a spouse or former spouse. 1. If yes, count the resource as available to the FNS unit. 2. If no, contact the other owner(s) regarding their agreement to dispose of the resource. a. If consent is granted, count the resource as available to the FNS unit. b. Do not count if the other owner refuses to dispose of the resource.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 390 RESOURCES

23 Section 390 Change #02-2024 October 1, 2024 c. If the other owner fails to respond, do not count the FNS unit member's share. H. Resources jointly owned by residents of shelters for battered women and children and a former household member are considered inaccessible if access to the value of the resource is dependent on the agreement of the joint owner who still resides in the former household. I. Request verification of the value of jointly owned resources at application and when there is reason to believe the joint ownership has changed. 390.18 RESULTING TRUST When the FNS unit states that it is party to a resulting trust, use this section to determine if the value of the property must be counted or excluded. A. A resulting trust exists when a person: 1. Has resources in his name for the benefit of another person; and 2. Did not contribute his own funds to the resource; and 3. Retains no legal interest in the resource; and 4. Would not benefit from the use or the disposal of the resource. B. A resulting trust can be established for any type of resource, including, but not limited to: 1. Stocks and Bonds. 2. Bank Accounts. Example: A FNS unit member has his name on his mother's checking account because his mother is in a nursing home. The money in the account is his mother’s money and is used to pay her bills. Since a resulting trust exists, do not count the money in the account as a resource to the applicant. C. These procedures also apply if a resulting trust exists between a FNS unit member and a Work First and SSI recipient. If the resulting trust is between spouses and there has been no legal divorce, count the value of the property since a resulting trust cannot exist between spouses.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 390 RESOURCES

24 Section 390 Change #02-2024 October 1, 2024 D. At application and when there is reason to believe the situation has changed, verify availability and ownership of the resource. Use the DSS-8650 to request information. If the FNS unit requests assistance, assist in obtaining the verification. E. Document the resulting trust using: 1. Written agreement between the FNS unit member and other resulting trust parties; or 2. Canceled checks or receipts for payment on a mortgage, loan, etc. that verify the terms of the agreement; or 3. Signed statements from a lending institution, loan office, insurance company; or 4. Other knowledgeable source who can verify the resulting trust; or 5. Signed statements from at least two knowledgeable individuals who can verify the resulting trust. F. If the FNS unit does not provide the verification necessary to determine if a resulting trust exists, count the entire value of the property in the FNS unit’s resources. If verification is provided and a resulting trust exists, exclude the entire value of the property as inaccessible to the FNS unit. 390.19 REVERSE RESULTING TRUST A. A reverse resulting trust exists when a non-FNS unit member: 1. Has a resource in his name for the benefit of a FNS unit member; and 2. The non-FNS unit member did not contribute his own funds to the resource; and 3. The non-FNS unit member retains no legal interest in the resource; and 4. The non-FNS unit member would not benefit from the use or disposal of the resource. B. A reverse resulting trust can be established for any type of resource, including, but not limited to: 1. Stocks and Bonds. 2. Bank Accounts. C. These procedures also apply if a reverse resulting trust exists between a FNS unit member and a Work First and SSI recipient. If the reverse resulting trust is between

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 390 RESOURCES

25 Section 390 Change #02-2024 October 1, 2024 spouses and there has been no legal divorce, count the value of the property since a resulting trust cannot exist between spouses. D. Verification is required at application and when there is reason to believe the situation has changed. 1. Verify availability and ownership of the resource. 2. Use the DSS-8650 to request information. 3. If the FNS unit requests assistance, assist in obtaining the verification. E. Document the reverse resulting trust using: 1. A written agreement between the FNS unit member and other reverse resulting trust parties, or 2. Canceled checks or receipts for payment on a mortgage, loan, etc. that verify the terms of the agreement; or 3. Signed statements from a lending institution, loan office, insurance company; or 4. Any other knowledgeable source who can verify the resulting trust; or 5. Signed statements from at least two knowledgeable individuals who can verify the resulting trust. F. If the FNS unit does not provide the verification necessary to determine if a reverse resulting trust exists, count the entire value of the property in the FNS unit’s resources based on the client’s written statement. If verification is provided and a reverse resulting trust exists, count the entire value of the property as accessible to the FNS unit. 390.20 Lottery/Gambling Winnings A. FNS units, including Categorically Eligible FNS units, that contain any member who receives lottery/gambling winnings of $4,500 or more are ineligible to participate in the FNS program and must lose eligibility. The FNS units are ineligible until they reapply for benefits and meet all non-categorical eligible financial resources and income eligibility requirements. Note: If multiple individuals shared in the purchase of a ticket or bet then count only the portion of the winnings allocated to the member(s) of the FNS unit. B. Participating FNS Units.

FOOD AND NUTRITION SERVICES CERTIFICATION INCOME AND RESOURCES FNS 390 RESOURCES

26 Section 390 Change #02-2024 October 1, 2024 1. FNS units are required to report lottery/gambling winnings of $4,500 or more no later than the 10th day following the month the winnings are received. 2. The FNS unit is ineligible to continue to participate in the FNS program. The worker must send a DSS-8553 Notice of Adverse Action to terminate the FNS case due to the lottery/gambling winnings. The FNS case must close based on receipt of the lottery/gambling winnings, regardless of the FNS units’ available resources at the time of the report. Example: John Doe wins $5000 from a scratch-off ticket. John Doe reports his total winnings of $5000 and states that he spent $4000 of the winnings to catch up on his overdue bills. John Doe’s case must close based on the receipt of the lottery winnings. John Doe may reapply at any time and evaluated as a non-categorically eligible household. C. Applicant FNS units. 1. When the FNS unit reapplies after losing eligibility due to receipt of lottery/gambling winnings they must meet all regular financial resources limits and income eligibility to regain eligibility. Categorical eligibility rules cannot be applied to FNS unit’s application. Note: After the FNS unit reapplies and is found eligible using regular non- categorical eligibility rules, they may regain categorical eligibility at the next change, recertification, or application. 2. When a member of the FNS unit (including Head of Household) that lost eligibility due to receipt of lottery/gambling winnings moves out of the FNS unit, the household composition of the original FNS unit no longer exist. The separate households may reapply and have eligibility determined using normal FNS rules, including categorical eligibility rules, if applicable. Example: John Smith and Jane Doe are members of the same FNS unit. John Smith wins $5000 from a scratch-off ticket. The FNS unit is ineligible to continue participation in the FNS program. After receiving the DSS-8553 Notice of Adverse Action, Jane Doe reports that John Smith has moved out of the home. The FNS unit must terminate. However, the household composition of the original FNS unit no longer exist and both Jane Doe and John Smith may reapply and have eligibility determined using normal FNS rules, including categorical eligibility rules.

FOOD AND NUTRITION SERVICES CERTIFICATION APPLICATIONS FNS 400 HOW TO APPLY FOR FNS

1 FNS 400 Change #09-2021 August 9, 2021 FS 400 HOW TO APPLY FOR FNS Change #09-2021 August 9, 2021

400.01

STATE APPROVED APPLICATIONS Households must file Food and Nutrition Services (FNS) applications by submitting a state-approved application form to a county Department of Social Services. State approved forms include: A. DSS-8207 Application for Food and Nutrition Services. B. North Carolina Families Accessing Services through Technology (NC FAST) guided interview application. C. ePASS online application. 400.02

SUBMITTING A FNS APPLICATION The FNS application may be submitted in one of the following methods: A. In Person in the FNS office in the county in which they reside. B. Mail C. Fax D. Email E. ePASS 1. All households that complete the ePASS application in the local office must be given the opportunity to review and receive a printed copy of the ePASS FNS application for their records upon request. 2. Signage in English and Spanish must be displayed in areas where households complete ePASS applications indicating their right to receive a printed copy. F. Social Security Administration. See 400.04 for details. 400.03

WHO MAY SUBMIT A FNS APPLICATION Any of the following individuals may make an application for FNS: A. Any adult individual in the FNS household

FOOD AND NUTRITION SERVICES CERTIFICATION APPLICATIONS FNS 400 HOW TO APPLY FOR FNS

2 FNS 400 Change #09-2021 August 9, 2021 B. Authorized Representatives as described in FNS 175 Authorized Representative. C. If there is no adult in the household, a legally emancipated minor may make and sign the application. 400.04

SOCIAL SECURITY ADMINISTRATION APPLICATIONS A. The SSA Office takes FNS applications for those households who contain only SSI applicants/recipients. The SSA refers non-SSI households to the appropriate county department of social services (DSS) to apply. 1. Do not require the applicant to be seen at the local DSS when the SSA Office takes an application. 2. Additional information may be requested, but the applicant does not have to come in to the agency. 3. In no event would the applicant be required to appear at the FNS office to complete the application process. The SSA Office completes joint SSI and FNS applications for residents of public institutions. In accordance with the SSA Pre-Release Program, these individuals may apply for both SSI and FNS benefits prior to their release from the institution. The applicant is not eligible to receive the FNS benefits until he is released from the institution. B. County Responsibilities 1. Determine eligibility and give eligible SSI households the opportunity to purchase food within 30 days following the date the application was received by SSA. All eligibility factors must be verified. Note time frame exceptions with expedited service applications and pre-release applications. 2. Process expedited service applications so eligible households are able to purchase food within seven calendar days. The expedited processing time standards begin on the date DSS receives the application. 3. If an application and the supporting documentation are sent to the wrong DSS, the receiving DSS must forward the application and documentation to the appropriate DSS within one working day of receipt. 4. Applicant households that contain only SSI applicants or recipients are not required to see a DSS eligibility worker or be interviewed by DSS staff. DSS must process the FNS application. DSS must not contact the applicant household to obtain information for certification unless:

FOOD AND NUTRITION SERVICES CERTIFICATION APPLICATIONS FNS 400 HOW TO APPLY FOR FNS

3 FNS 400 Change #09-2021 August 9, 2021 a. The application is improperly completed; or b. Mandatory verification is missing; or c. DSS determines that information on the application is questionable. 5. Screen all applications received from SSA for entitlement to expedited service. This must be done on the day the application is received by DSS. 6. Determine if members of SSI households are active FNS participants prior to processing the application. 7. Allow SSI households to apply for FNS benefits at the agency if the household chooses to do so. In such cases, all verification, including that pertaining to SSI Program benefits, must be provided by the household, by SDX or BENDEX, or obtained by DSS rather than being provided by SSA.

FOOD AND NUTRITION SERVICES CERTIFICATION APPLICATIONS FNS 405 APPLICANT RESPONSIBILITIES

1 FNS 405 Change #09-2021 August 9, 2021 FNS 405 APPLICANT RESPONSIBILITIES Change #09-2021 August 9, 2021

405.01

APPLICANT RESPONSIBILITIES Households wishing to participate in the Food and Nutrition Services (FNS) Program must make this desire known and provide the county with enough information regarding household income, resources, and circumstances to make a determination of eligibility. 405.02

APPLICANT RIGHT TO APPLY Each household has the right to file an application by mail, fax, email, or ePASS, and on the same day it visits the FNS office during office hours. The household wishing to file an application must provide the minimum information listed below to be considered a filed application: A. The applicant’s name; and B. Address; and C. Signature of an adult member of the household or the household’s authorized representative. 1. The signing of the application form protects the date of application. 2. Register the application in NC FAST, within three business days from the time the application form is received or signed in the agency. 405.03 APPLICANT COOPERATION AND REQUIREMENT TO PROVIDE INFORMATION A. Households must cooperate and provide the following information: 1. The application form must be completed and signed; and 2. The household or its authorized representative must be interviewed; and 3. Certain information on the application must be verified. B. If the household refuses to cooperate with the county department in completing the above process, deny the application at the time of refusal. 1. A determination of refusal to cooperate can be made if the household is able to cooperate, but clearly demonstrates that it will not take the required actions to complete the certification process.

FOOD AND NUTRITION SERVICES CERTIFICATION APPLICATIONS FNS 405 APPLICANT RESPONSIBILITIES

2 FNS 405 Change #09-2021 August 9, 2021 Example: A household must refuse to be interviewed or refuse to provide verification in order to be denied for refusal to cooperate. Failure to appear for an interview or failure to provide verification is not refusal to cooperate. 2. If there is any question as to whether the household has failed to cooperate versus refused to cooperate, do not deny the application. 3. Deny an application if the household refuses to cooperate in any subsequent review of its eligibility, including reviews generated by reported changes, recertifications, or as part of a quality control review. Once denied or terminated for refusal to cooperate, the household may reapply but cannot be determined eligible until it cooperates. Refer to Section 212 Household Composition Special Arrangements for instructions regarding QC reviews 405.04

APPLICANT RIGHT TO WITHDRAW AN APPLICATION A. A household may voluntarily withdraw its application at any time prior to the determination of eligibility. B. It is not necessary for the withdrawal to be in writing. C. Document the reason for withdrawal if the household has given a reason and that contact was made with the household to confirm the withdrawal. D. Advise the household of its right to reapply at any time following the withdrawal.

FOOD AND NUTRITION SERVICES CERTIFICATION APPLICATIONS FNS 410 COUNTY RESPONSIBILITIES

1 FNS 410 Change #21-2021 November 15, 2021 FNS 410 COUNTY RESPONSIBILITIES Change #21-2021 November 15, 2021

410.01 APPLICATION AVAILABILITY AND RECEIPT A. The county Department of Social Services (DSS) must make application forms readily accessible to individuals and families interested in applying and any groups and/or organizations involved in outreach efforts. B. The county DSS must also provide an application form to anyone who requests the form. C. The county DSS must post signs in the certification office which explain the certification processing standards and the right to file an application on the day of initial contact. D. Information regarding same day filing must also be included in outreach materials and on the application form. E. County DSS is responsible for making other arrangements, such as a home visit, for individuals who are physically or mentally unable to come to the county DSS office to apply and who do not have a representative willing or able to act on their behalf. F. County DSS must encourage households to file an application on the same day the household or its representative contacts the FNS office in person or by telephone and expresses interest in obtaining FNS or expresses concerns which indicate food insecurity. 1. If a household contacting the FNS office by telephone does not wish to come to the appropriate office to file the application on the date of the telephone call, he may receive the application form by mail upon request. If the household chooses to have the application form mailed to them: a. The county DSS must mail the application form and a DSS-8650A Documents Needed to Complete Your Application form to the household on the same date as the phone call. b. The county DSS must inform the household that an application form that is delivered by mail is not considered a filed application until the application is signed and returned to the agency.