SUBJECT:
FAMIS INCOME CODE TYPE REVISION
DISCUSSION:
The description for FAMIS income type code IK has been revised. Code IK is defined as Income In Kind/Vendor payment. Use this code when an EU member receives income in-kind or vendor payments.
Income in-kind is defined as any gain or benefit not in money (such as income in benefits, including meals, clothing, public housing, produce from a garden, etc).
Vendor payments are payments paid directly to a third party for an EU expense.
EXAMPLE: Ms. A sends $400 directly to her son, AJ's, landlord to pay his rent. The $400 is a vendor payment paid directly to a third party and is coded as IK on his food stamp case. Since the payment is made directly, the $400 is excluded and the rent expense is not budgeted on the food stamp case.
Any payment not paid directly to a third party is coded as the appropriate source of income.
EXAMPLE: Ms. B receives $200 from her daughter to assist in paying her rent. The $200 is a contribution from her daughter to Ms.B and is coded as a contribution (CO) on her food stamp case. Ms. B's rent expense is entered on the Shelter Expense (FMXK) screen. Both the contribution and the rent expense are included in her food stamp budget.
Income in-kind and vendor payments are excluded for the Food Stamp, Temporary Assistance, and Child Care Programs.
Code IK had previously been used to describe income in-kind/diverted income. Diverted income is included in the food stamp budget. Use the appropriate code for diverted income, to show the type of income from which the income is diverted.
EXAMPLE: Mr. Smith is employed by his uncle, Mr. Jones. Mr. Jones pays the $300.00 to Mr. Smith's child support obligation, rather than paying Mr. Smith his wages, thus the income is diverted from his employer to his obligation.
Enter the $300.00 into FAMIS as wages (income source WA), record a comment regarding the income and to where the income is diverted. The income is included on the food stamp budget. Enter the $300.00 as child support expense on the Court Ordered Expense (FMXL) screen.
NECESSARY ACTION:
- Review this memorandum with appropriate staff.