The EU may elect to have fluctuating expenses averaged. Expenses billed less often than monthly may be averaged forward over the interval between scheduled billings. If no scheduled interval exists, average the expense over the period of time it was intended to cover.
The EU can change (once per certification period) from lump sum budgeting to averaging expenses, or from averaged to lump sum. Do not allow an expense more than once.
EXAMPLE: Mr. B paid real estate taxes of $150 on 2/14. He applied for FS on 3/1 and elected to have his expenses averaged. He was certified for a period of 12 months, March through February. Since the taxes covered a period of 12 months, l/l2 of $150 is allowed for each month certified.