MEMORANDUM

DISCUSSION:

The weekend of September 8, 2012 the October Food Stamp mass adjustment will occur.  This memorandum addresses the following issues related to the mass adjustment:

• Increased Maximums and Deductions;
• Update Process;
• Decreased Benefits or Case Closings;
• Conflict of Actions;
• Cases Not Adjusted;
• Notices;
• Fair Hearing Requests; and
• Manual Revisions.

Increased Maximums, Utility Standards, and Deductions

The following changes are made during the mass adjustment:

Allotments	No Change
Standard Deduction	1 – 3 members                 $149
	4 members                       $160
	5 members                       $187
	6+  members                    $214
Utility Standards (NO CHANGES)	SUA                                  $288
	NHCS                               $206
	LUA                                    $76
	TELEPHONE                     $29
Excess Shelter Deduction	$469
Gross (130%) Maximum	Increased
Net (100%) Maximum	Increased
165% of FPL Maximum*	Increased

*These maximums are used to determine if eligibility units (EU) whose members are elderly, live with others, and are unable to purchase and prepare food due to a disability, are eligible as separate EUs for Food Stamp benefits. The Food Stamp Manual section 1105.015.00 is updated with the new chart.

Update Process

The Food Stamp Budget Summary (FM4A) screen and the Worker Initiated Budget Calculation Area – WIBCA (FMXN) are updated with the new amounts for October 2012 budgets effective September 8, 2012. While the updates are being completed the weekend of September 8, FAMIS is unavailable and no actions can be taken until September 10, 2012.

After the eligibility determination is run during the mass adjustment, the following actions on active Food Stamp cases may be displayed in FAMIS, depending on the action taken during the mass adjustment:

Action	EU Log (FM40) Displays	Date	Benefit Month
Increase	INCR	09/08/12	102012
No change	NOCH	09/08/12	102012
Decrease	REDU	09/09/12	102012
Decrease - previously disregarded action	AABR	09/08/12	102012
Closing - previously disregarded action	AACL	09/08/12	102012

The reason field on the Action Authorization (FM3H) screen displays TUA – Table Update Adjustments (system) for the mass adjustment.  To inquire why an action is taken, on the EU Action Log (FM40), select the action, and press F17=INQAUTH.  The Action Authorization (FM3H) screen appears.  Press F19=REASON.  The reason code and the code description appear.

After the Food Stamp payroll closing on September 21, 2012, the Payment History (FM5F) screen will display the appropriate allotment for each EU.

Decreased Benefits or Case Closings

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. This is a change that is not disregarded.

When there are disregarded changes in FAMIS, EUs receive an FA-510 Adverse Action Notice to decrease benefits or close the case after the mass adjustment.

EUs with cases that have an allotment decrease without previously disregarded actions will receive an FA-150 Claimant Action Notice. There will be no 10-day waiting period prior to authorization of the adverse action.

Conflict of Actions

FAMIS adjusts active Food Stamp cases during the mass adjustment even if the case has a pending adverse action.  For EUs with a pending adverse action when the mass adjustment is completed, this creates a conflict of actions. The eligibility specialist receives the alert "Adverse Action Needs Resolving".  Resolve the conflict of actions 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.

Cases Not Adjusted

Some cases with pending applications or pending changes that require the eligibility specialist to take an action cannot be adjusted during the mass adjustment. 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 when there is insufficient data (ISD).
• Any EU in the controlled flow.

  FAMIS sets Food Stamp EUs in the recertification application controlled flow to RTA (ready to authorize) status on the EU Action Log (EULOG/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 (EULOG/FM40). FAMIS does not authorize these actions during the mass adjustment. When the eligibility specialist completes the controlled flow, the determination is made for Food Stamp benefits.

  If the MO HealthNet 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".

  Take the following actions to correct these cases:

  • Review the case file.
    • If the verification is located, update the verification code, run an Eligibility Determination Resolution (EDRES/FM3Y), and authorize the action.
    • If the verification is not provided or requested, complete the steps below to request verification.
      • Type OUTVERF or FM3M on the command line and press enter. The Outstanding Verification screen is displayed.
      • Select the outstanding verification, press F23=FA325.
      • FAMIS will generate the FA325 in the overnight batch process and mail it to the individual.
      • Once verification is received, update FAMIS with the verification and complete an eligibility determination.

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.

Notices

All EUs with an allotment that increases are sent an FA-150 Action Notice. The notices are dated September 27, 2012 to allow for mail processing. The notice informs EUs of the following:

• the standard deductions and excess shelter maximum have changed; and
• their Food Stamp allotment for October.

EUs with cases that have an allotment decrease without previously disregarded actions will receive an FA-150 Claimant Action Notice. The notices are dated September 27, 2012 to allow for mail processing. The notice informs the EUs of the following:

• the standard deductions and excess shelter maximum have changed; and
• their Food Stamp allotment for October.

EUs with cases that are closing or with an allotment decrease that had a previously disregarded action will receive an FA-510 Adverse Action Notice dated September 10, 2012, for changes effective for October 2012. The notice informs EUs of the following:

• the standard deduction and excess shelter maximum have changed; and
• the cumulative effect of the mass adjustment changes, changes previously disregarded or effect the current changes have on the Food Stamp allotment for October.

Staff may view the notices on the Document Queue (DOCQUE/FMVM) screen.

Fair Hearing Requests

If the EU requests a fair hearing for the Food Stamp Program, see Income Maintenance Memorandum IM-65 dated October 26, 2011 for procedures for processing the hearing request. It is important to send all Agency evidence to the Hearings Unit as soon as possible. Do not wait until a few days before the hearing to send the evidence.

For a request for fair hearing due to the mass adjustment, evidence may include, but is not limited to, these items:

• FA-510 Adverse Action Notice

  NOTE: When a fair hearing is requested while an FA-510 adverse action is pending, the EU has the option to continue to receive the current level of benefits pending the hearing results.  If the EU chooses to continue receiving benefits at the current level, the pending adverse action is placed on hold (HOL).  To place an adverse action on hold due to a hearing request follow instructions found in User Guide Changing An Adverse Action Status.

• FA-150 Claimant Action Notice
• Comments Screens
• Manual sections/legal references
• Budget Summary (Food Stamps) (FM4A) screen for applicable months
• Detail screens of budget entries, as applicable:
  • Income Summary Detail (FM33)
  • Expense Summary (FM34)
  • Income (FMX0) screen
  • Income Amount (FMX3) screen
  • Shelter Expense (FMXK) screen
  • Utility Expense Standard (FMXJ) screen
  • Court Ordered Expense (FMXL) screen
  • Dependent Care Expenses (FMXM) screen
  • Medical Expense (FMXA) screen
• Financial Resource Detail Summary for applicable months if the change/closing is due to resources
• Details screens for resources, as applicable:
  • Liquid Resource (FMW0) screen
  • Prepaid Burial (FMW1) screen
  • Personal Property (FMW2) screen
  • Real Property (FMW4) screen
• Other screens as applicable for the change/closing
• Verifications

  NOTE: If taking actions on cumulative changes, it is necessary to include notices and budgets from the previous actions.

Provide a copy of the evidence to the EU asking for the hearing, and their legal representative, and schedule a pre-hearing conference. If the EU designates an attorney or authorized representative for the hearing, send a copy of all notices and evidence for the hearing to the EU and the designated individual.

Please note that if verification of child support income was from a MACSS screen, the verification to support this should be requested from child support staff for the hearing. They can provide a print-out that contains the same information and the print-out can be presented as evidence. If you cannot get this information, contact Food Stamp Program and Policy Unit for assistance. Do not go to hearing and state that the verification cannot be supplied because the screen cannot be printed, as the Agency has access to this information.

NOTE: See MANUALLY CALCULATING A FOOD STAMP BUDGET to be prepared to testify on how the benefit amount was determined.

Manual Revisions

The Food Stamp Manual is revised online. The revisions include:

• Updating the 165% poverty level (section 1105.015.00);

• updating the standard deduction (section1115.035.05);
• updating the excess shelter maximum for non-elderly/disabled EUs (section 1115.035.25); and
• Updating the Maximum Allowable Monthly Income Limits and Allotment table (section 1115.099.00).

The following charts are revised on the Intranet:

• Food Stamp Changes Flyer;
• Simplified Reporting Requirements;
• Standards History Chart;  and
• Manually Calculating a Food Stamp Budget.

NECESSARY ACTION:

• Review this memorandum with appropriate staff.

JM/KS