SR 02-17 Dated 07/02

STATE OF NEW HAMPSHIRE

INTER-DEPARTMENT COMMUNICATION

SUMMARY

This SR releases revisions to:

·   fluctuating income policy. For food stamps and all categories of financial and medical assistance except for 12-month extended medical assistance, a 4-week method of averaging and verifying fluctuating income will be used;

·   cost of doing business deductions for self-employment income. The principal on business loans for equipment and real estate used to produced income for TANF and adult category cash and medical assistance cases is now an allowable deduction; and

·   the following forms:

- Form 800AN, Applicant Notice;

- Form 808, Proof Needed to Determine Your Assistance;

- Form CS0001, Interview Appointment Notice;

- Form CS0008, Rescheduled Interview Appointment Notice; and

- Form CS0019, Reminder of Redetermination Notice.

In addition, this SR releases an unrelated technical revision to the Food Stamp Manual regarding claiming actual utility costs.

POLICY

Fluctuating Income

Generally speaking, when averaging fluctuating income, use the previous 4 weeks’ income to determine the average monthly amount of anticipated income for food stamps and all categories of cash and medical assistance cases except for 12 month extended medical assistance (EMA). See FAM PART 173, ELIGIBILITY CRITERIA FOR 12-MONTH COVERAGE, for further information on EMA. District Offices may request more than 4 weeks’ documentation based on case circumstances.

Exceptions to the 4-week method for averaging income are noted below.

·   If income has been received for less than 4 weeks and income received during that period reflects anticipated future income, the average monthly amount is based on the actual number of weeks the income was received.

·   If fluctuating income received in the most recent consecutive 4-week period does not reflect anticipated future income due to reasons such as overtime, bonuses or reduced hours, the income received in any atypical week(s) is not to be used to determine the average monthly amount.

·   If it is not possible to obtain an accurate average based on the most recent consecutive 4-week period:

- up to 8 weeks’ income received in the most recent consecutive 8-week period may be used; and

- income received in any atypical week(s) must be omitted when determining the average monthly amount.

Self-Employment Income

If an individual is self-employed, a one-year period will be used to determine the average monthly amount. However, if self-employment income is received for a shorter period of time, income received over that period will be used to determine the monthly average amount.

Determining the Cost of Doing Business for Self-Employed Individuals

Policy has been revised for all categories of cash and medical assistance to allow the principal on loans for equipment and real estate used to produce income as a cost of doing business deduction when calculating self-employment income. Previously, only interest payments associated with business loans were allowed as a deduction from self-employment income for cash and medical assistance cases. This change aligns policy on self-employment deductions with Food Stamp Program policy which allows both the principal and interest on these business loans as a cost of doing business.

Revised Family Assistance Manual Topics

Section 219.03 Required Verification

Section 220.13 Verification Requirements

PART 511 COMMON TYPES OF INCOME: SELF-EMPLOYMENT

Section 603.09 Other Allowable Deductions: Self-Employment Expenses

Section 609.01 Averaging Fluctuating Income

Revised Adult Assistance Manual Topics

PART 511 INCOME TYPES: SELF-EMPLOYMENT

Section 611.01 Averaging Fluctuating Income

Revised Food Stamp Manual Topics

PART 511 COMMON TYPES OF INCOME: SELF-EMPLOYMENT

Section 603.09 Other Allowable Deductions: Self-Employment Expenses

Section 603.09 Other Allowable Deductions: Utility Standards

Section 609.01 Averaging Fluctuating Income

FORMS REVISIONS

Several forms have been revised as a result of the change from the 8 to 4-week methodology for average fluctuating income.

Form 800AN, Applicant Notice

New Form 800AN, Applicant Notice, was released by SR 02-18, effective May 1, 2002. This is a 2 page form provided to the applicant by the District Office reception staff when an application for assistance is either received in the mail or hand-delivered and the applicant is unable to have an eligibility interview that day. Page 2 has been revised to indicate that clients must furnish the District Office with documentation of income for a 4-week period.

Form 800AN will be sent to DFA District Office Supervisors electronically with the release of this SR so that it can be adapted to District Office letterhead and printed as needed.

Form 808, Proof Needed to Determine Your Assistance

Form 808, Proof Needed to Determine Your Assistance, has been revised to reflect the 4-week method for determining anticipated monthly average income. This form is used for all categories of assistance to provide notification of types of verification needed to establish eligibility. Revised Form 808 will be distributed to District Offices under separate cover prior to July 1, 2002.

New HEIGHTS-Generated Forms

Form CS0001, Interview Appointment Notice, Form CS0008, Rescheduled Interview Appointment Notice, and Form CS0019, Reminder of Redetermination Notice, were previously released in paper version by SR 02-08, effective January 4, 2002. Page 1 of each form provides the actual appointment date and time, and page 2 provides examples of documentation needed to establish eligibility. Page 2 of each form has been revised to reflect the 4-week method for determining anticipated monthly average income. A brief description of each form’s usage is provided below.

Form CS0001, Interview Appointment Notice

Form CS0001, Interview Appointment Notice, is sent to the client when an initial eligibility appointment has been scheduled.

Form CS0008, Rescheduled Interview Appointment Notice

Form CS0008, Rescheduled Interview Appointment Notice is sent to the client when a redetermination/recertification appointment has been rescheduled.

Form CS0019, Reminder of Redetermination

Form CS0019, Reminder of Redetermination, provides clients with a current reminder of their upcoming redetermination appointment.

Other New HEIGHTS-Generated Forms

The table below lists New HEIGHTS-generated forms that will be revised to incorporate the 4-week method for averaging and verifying fluctuating income. These forms previously referred to the 8-week method. Form titles are listed exactly as they appear on the New HEIGHTS screens. These forms will be officially released in a forthcoming SR.

UNRELATED FOOD STAMP TECHNICAL REVISION

Based on District Office input, Food Stamp Manual Section 603.09, Other Allowable Deductions, Utility Standards, has been revised to return an "Exception" that was omitted during manual page revisions released by SR 01-12. The "Exception" that was omitted explains that when allowing actual costs instead of a utility standard, only the basic rental charges for electricity are recognized, not excess amounts which may billed due to over usage.

NEW HEIGHTS CHANGES

On July 1, 2002, the "8 Week Average" column under the "Employment Details" tab of the Employment Screen will be deleted. New HEIGHTS will also be modified to allow fluctuating income to be averaged over a 4-week period. The New HEIGHTS-generated forms which will be released in paper format are identified in the table on page 5 of this SR.

IMPLEMENTATION

The revised policy is effective for eligibility determinations that occur on or after July 1, 2002.

CLIENT NOTIFICATION

Clients will be notified on an individual as needed basis.

TRAINING

No training is planned.

MANUAL PAGE CHANGES

For the sake of consistency and clarity, FAM and FSM PART 511 COMMON TYPES OF INCOME: SELF-EMPLOYMENT, and Section 609.01, Averaging Fluctuating Income, have been reorganized and reformatted. Previously, these PARTs and Sections contained examples of allowable self-employment expenses. PART 511 now contains a consolidated list of these expenses and the list in Section 609.01 has been replaced with a link to PART 511. The list of allowable self-employment expenses in FAM and AAM PART 511 have been expanded to align with food stamp policy.

POSTING INSTRUCTIONS

DISPOSITION

This SR may be destroyed or deleted after its contents have been noted and the revised manual topics released by this SR have been posted to the On-line manuals.

DISTRIBUTION

This SR will be distributed according to the electronic distribution list for Division of Family Assistance policy releases. This SR, and revised On-Line Manuals, will be available for agency staff in the On-Line Manual Library, and for public access on the Internet at http://www.dhhs.state.nh.us/PMIndex.htm, effective July 1, 2002.

This SR, and printed pages with posting instructions, will be distributed under separate cover to all hard copy holders of the Family Assistance, Adult Assistance, Food Stamp and Forms Manuals.

DFA/SJC:s

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CERTIFICATE OF DESTRUCTION

I certify that all copies of Form 800AN, SR 02-18/May 2002, and Form 808, SR 96-51/September 1996 have been destroyed.

Office Manager:     District Office     

Return this certificate to DHHS Stock Control, 6 Hazen Drive, Concord, NH 03301, after the instructions in the SR have been carried out.