VENDOR PAYMENTS (MAM)

____________________________________________________________

A payment made by a person or organization on behalf of an assistance group, when the payment is made directly to another party with whom the assistance group has incurred an expense.

Treatment: Excluded Income.

Exception:

. If the vendor payment is for an expense recognizable as a deduction (i.e. child care), subtract the amount of the payment from the allowed deduction.

. If the payment is in excess of one month's deductible cost, treat the excess according to its disposal. If it goes back to the individual, it is unearned income. If it is counted as a credit toward next month's service, subtract it from next month's deduction.