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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