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North Carolina 62 APPENDIX B WORK OVER WELFARE IN CABARRUS COUNTY In legislation ratified June 12, 2003, the North Carolina General Assembly provided for the continuation of the Work Over Welfare (WOW) Program in Cabarrus County as a demonstration welfare reform program for certain Work First and Food and Nutrition Services recipients. Except as described below, Work First in Cabarrus County operates under the standard policies described in the State TANF Plan. The Cabarrus County WOW Program provides job opportunities to all able-bodied Work First and FNS who are required to participate in Work First Employment Services. WOW is primarily a wage-supplementation program that diverts the Work First benefits that would be paid to recipients to match employer funds and subsidize the recipients’ wages. Wages paid to WOW participants, which contain grant-diverted funds, are exempt from income for purpose of determining eligibility for assistance. Participants are subject to termination of Work First benefits for the household the month following any month in which they fail to comply with participation requirements. Benefits are restored after the client agrees to comply with requirements and files a new application. To ensure that children are not harmed, sanctioned households are monitored by social workers, and benefits may be paid directly to vendors for basic needs. All individuals will be evaluated for ongoing Medicaid any time Work First terminates. A recipient who voluntarily terminates employment without good cause will be ineligible for Work First until the individual returns to work, provided work opportunities are available. Failure or refusal to pursue child support without good cause is grounds for denial of benefits. Benefit Diversion payments will be made in amounts up to one thousand two hundred dollars ($1,200). Applicants receiving the diversion payment will not be eligible for ongoing Work First benefits for a period of three months from the date of receipt of the diversion payment. Individuals receiving a diversion payment must attend budgetary counseling and may be required to have a protective payee for the diversion payment. Federal funds may be transferred from the TANF Block Grant to the Social Services Block Grant to be used to pay for home studies, attorney fees, and ongoing cash payments for the adoptive family, and other adoption expenses for Work First children who are living with relatives other than their biological parents.