MEMORANDUM

DISCUSSION:

Due to a change in policy from the Food and Nutrition Service (FNS), subsidized employment-block grant funded is considered earned income for the Food Stamp Program. Current policy is to enter subsidized employment-block grant funded as earned income (EI) with source code subsidized employment (SU) and FAMIS treats the income as unearned income for the Food Stamp Program.

Effective May 1, 2010, FAMIS treats subsidized employment as earned income for the Food Stamp program. The way the income is entered has not changed. A mass adjustment will be completed the weekend of May 1, 2010, to adjust all Food Stamp cases with an income source code of SU.

Decreased Benefits or Case Closings

Some EUs will receive adverse actions to decrease benefits or close the EU after the mass adjustment. This happens when there are disregarded changes in FAMIS. As the mass adjustment is considered a change that must be acted on, and all cases are required to be adjusted to accurately reflect deductions and benefit amounts, all information known to FAMIS at the time of the mass adjustment is used to determine eligibility. There will be no 10 day waiting period prior to authorization of the adverse action, as this is a change that must not be disregarded.

An FA-510 Adverse Action notice will be sent to the EU notifying them of the proposed reduction or closing action.

Conflict of Actions

FAMIS adjusts active Food Stamp cases during the mass adjustment even if the case has a pending adverse action. If there is a pending adverse action when the mass adjustment is completed, there is a conflict of actions. The eligibility specialist receives the alert “Adverse Action Needs Resolving”. Void the adverse action and process the mass adjustment adverse action following these steps:

• void the first (pending) adverse action on the Action Resolution (FM50 or ACTRES) screen,
• complete the eligibility determination on the Eligibility Determination Resolution screen (FM3Y or EDRES), and
• authorize the new action, even if the action is a benefit reduction or closing.

Refer to FAMIS user guide Changing an Adverse Action Status for instructions.

If the adverse action is not voided, FAMIS will take the original action as noted in the adverse action notice when the adverse action period expires. The next night, FAMIS will automatically adjust the Food Stamp benefits with the new standards and allotments for the mass adjustment.

Increased Benefits

All EUs with an allotment that increases are sent an FA-150 Action Notice.

Cases Not Adjusted

Some cases cannot be adjusted during the mass adjustment. The cases are either pending applications or pending changes that require the eligibility specialist to take an action. When the eligibility specialist completes the appropriate action, the case will be automatically adjusted.

• Expedited EUs that are active with postponed verification (APV status).
• Any EU with an incomplete eligibility determination, such as a change entered but the eligibility determination resolution is not run, or there is insufficient data (ISD).
• Any EU in the controlled flow.

  FAMIS sets Food-Stamp-only EUs in recertification application controlled flow to RTA status on the EU Action Log (FM40). However, FAMIS does not authorize these actions. The eligibility specialist must complete the controlled flow and authorize actions during the normal process.

  If an application is pending in the controlled flow for Temporary Assistance or Child Care, FAMIS sets the Food Stamp action to RTA status on the EU Action Log (FM40). FAMIS does not authorize these actions during the mass adjustment. When the eligibility specialist completes the controlled flow, the correct determination is made for Food Stamp benefits.

  If the MHABD case is in the controlled flow including the conversion controlled flow, the active Food Stamp case is adjusted.

• An unacceptable or blank verification code is entered for a program element.

  EXAMPLE: The Income Amount (FMX3) screen has a blank verification code for income.

  During the mass adjustment, FAMIS sets the status to PEN (Pending) for the case until the eligibility specialist enters an acceptable form of verification. The eligibility specialist receives the alert “Action Not Authorized”.

  If no action is taken by the eligibility specialist, FAMIS will send an FA-510 Adverse Action notice to reduce or close as appropriate, as the unacceptable or blank verification code has not been resolved. Take the following actions to correct these cases.

  • Review the case file. If the verification is provided, update the verification code, run an Eligibility Determination Resolution (FM3Y or EDRES) and authorize the action. If the verification is not provided or requested, complete the steps below to request verification.
  • Type OUTVERF on the command line and press enter. The Outstanding Verification (FM3M) screen is displayed.
  • Select the outstanding verification, press F23=PRINT.
  • Press F17=DOCQUE. The FA-325 Request for Information appears with RDPRT (ready to print).
  • Tab to the FA-325, type “P” on the Com line and press F23=PRNT. The FA-325 Request for Information is printed locally.
  • Mail the FA-325 to the EU to request the verification.
  • Once verification is received, update FAMIS with the verification and complete an eligibility determination.

NECESSARY ACTION:

• Review this memorandum with appropriate staff.

CS