2007 Memorandums
IM-81      08/28/07

P.O. BOX 2320



The purpose of this memorandum is to clarify when to budget zero income in FAMIS for all programs. When an EU is applying for or receiving assistance and an income source has ended, the correct procedure is to end-date the terminated source of income. By end-dating the terminated income, FAMIS computes a budget for the effective month when the new eligibility determination (EDRES) has been completed.

Example: Ms. C applies for TA/FS benefits 07/15. At the interview, she declares her job ended on 07/05 as she was only a temporary employee. Her employer provided her with a written statement to verify the job ended. She received her last paycheck on 07/12. Budget actual income for July and end date the employment on 07/05. When FAMIS computes the August budget, it will show zero income because the employment was end-dated on 07/05. Enter the end-date after the July budget has been computed. This will allow all the income for July to be included on the budget. If the end-date is entered first, the system will not allow any income received after the job ended to be included in the budget. When entering the end-date, enter reason code JE - Job Ended.

Unless a job is end-dated, FAMIS continues to show the employment as current rather than terminated. It is incorrect to enter zero income when a job has ended to leave it open for future verification.

Example: Mr. R is receiving TA/FS/CC benefits. He is laid off because business was slow and employees were let go. He expects to return to this job sometime in the future if the plant reopens. End-date the employment and complete an eligibility determination. FAMIS computes a budget for the effective month showing zero income. If the plant reopens and he returns to work, add the new employment. When entering the end date information, use reason code SD - Company Shut Down.
Example: Ms. S is receiving TMA and food stamp benefits. She has earned income considered on her case, but she is now on maternity leave. She plans to return to the same job in 3 months. Enter the gross amount of income as zero, and the reason MLV - Maternity Leave. Do not end-date the employment.
At the end of her maternity leave, Ms. S. has decided to stay home. End-date the employment and complete an eligibility determination. FAMIS computes a budget for the effective month showing zero income. When end-dating her employment, use reason code ZZ - Other.
Example: Ms. T has been receiving food stamp benefits every month since 01/06. At the time she was approved, she was receiving child support payments. In 05/06, the child support stopped and she reported it to her eligibility specialist. The eligibility specialist completed a zero income budget effective 06/06, thinking it may start again sometime. The correct procedure is to end-date the child support as no payments are being received. If she starts receiving child support again, enter it as new income. When entering the end-date information, use reason code PE - Payment from Responsible Party Ended.

In all of the above examples, enter comments to explain why the income has been end-dated.

Other examples of end-dating employment or possibly unearned income are short term disability, lack of jobs (such as those from an employment agency), decrease in patients in a nursing home which causes layoffs, SSI that stopped, and seasonal work. Do not enter a zero income and leave the employment source active if it is not known the income will restart.



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