M E M O R A N D U M

IM-96  07/27/99  CLOSING AND ADJUSTING FOOD STAMP CASES


SUBJECT:
CLOSING AND ADJUSTING FOOD STAMP CASES

FOOD STAMP MANUAL REVISION #17:

Section 1140.005.40, Page 1140-5
Section 1140.005.45.05, Pages 1140-5-6
Section 1140.005.45.10, Page 1140-6
Section 1140.005.50, Page 1140-6
Section 1140.005.50.05, Page 1140-7
Section 1140.005.50.10, Pages 1140-7-8
Section 1140.005.50.15, Page 1140-8
Section 1140.005.55, Page 1140-8

 
DISCUSSION:
With the implementation of Electronic Benefit Transfer (EBT), staff requested clarification on when to adjust or close food stamp cases.  Due to the ability to pull or cancel food stamp benefits for the current month, use the following procedures to correctly adjust or close food stamp cases.

When an active food stamp household reports a change in circumstances, take appropriate action on the food stamp case.

Increased Allotment

If the reported change results in an increased food stamp allotment, notify the household of the amount of the increase.  The effective date of the change is based on whether the change is a significant or non-significant change.

Follow policy discussed in Food Stamp Manual, section 1140.005.45.  Enter a FISU request to issue benefits for significant and non-significant changes.  Do not pull the regular issuance.

Decreased Allotment

If the reported change results in a decreased food stamp allotment, determine if notification must be in advance of the action or at the same time the action is taken.  Policy regarding advance/adequate notice has not changed.  The effective month for which the food stamp benefit is decreased or terminated depends on whether the change report is made timely.

Timely Report

When a household timely reports a change in circumstances which results in a decreased benefit, follow policy currently in place.

  • If the household timely reports a change in writing and provides verification, decrease the food stamp benefit for the next month.
  •  Example 1:  The household completes an IM-145 on 2/16/99 to report new employment.  A letter from the employer verifies the household member will receive the minimum wage for 20 hours worked per week.  Since the verification is provided and the change report is in writing, notification of the change in food stamp benefits can be done at the same time the action is taken.  The benefits are reduced for the month of March.
    • If the household timely reports the change in any other manner, for instance by telephone, and required verification is provided, a notice of adverse action (NOAA or IM-80) must be sent.  Reduce the food stamp benefits effective the month after the NOAA expires.
     Example 2:  The household reports a move and change in shelter expenses by telephone on 2/12/99.  The worker verifies the residence by a collateral call.  The shelter expense is not questionable, so verification is not requested.  A NOAA is sent to notify the household of the reduction in food stamp benefits.  The NOAA expires on 2/22/99 and March 1999 benefits are reduced.

    NOTE:  If a NOAA, reducing the next month benefit, expires prior to the current month benefit becoming available, hold the reduction/closing action until after the current month benefit becomes available.  If the action is not held, the current month benefit is canceled.

    Non-timely Report

    When a household reports a change in circumstances non-timely, use the notification procedures described above.  The benefits are reduced for the first month in which the issuance can be pulled to avoid or reduce a claim.  If a NOAA is required, pull the next issuance available after the NOAA expires.  The effective month for the NOAA is determined by whether or not the benefit is pulled for the month in which the NOAA expires.  Food stamp benefits can be pulled up to 5:00 p.m. two days prior to the availability date.

     Example 3:  The household reports a change in income that occurred two months prior to the report.  The worker verifies the information on 2/26/99.  The household's March benefit is not available until 3/22/99.  This is the first benefit that can be affected after the NOAA expires.  To avoid a larger claim, pull the March 1999 food stamp benefit and issue the decreased amount.  March is the effective month for the action noted on the NOAA.

     Example 4:  On 4/1/99, the household reports a change of address that occurred three months prior to the report, resulting in decreased shelter expenses.  The benefit for 4/99 is available on 4/2.  The worker is unable to pull the benefit so the decrease in benefits is effective for the  May 1999 benefit.

    Manual Revision

    Sections 1140.005.40 through 1140.005.55 are revised on-line.  These sections are updated to reflect EBT language and policy.  Attached are the revised sections for the hard copy of the on-line Food Stamp Manual.

     
    NECESSARY ACTION:
    • Review this memorandum with all appropriate staff.

    •  
    • Reduce benefits effective the month after report when a household timely reports a change in writing and provides verification

    •  
    • Reduce benefits effective the month after the NOAA expires if the household timely reports a change, either not in writing or without attached verification.

    •  
    • Pull the next issuance after the NOAA expires and reduce benefits for any non-timely report that results in a decrease of food stamp benefits.

    •  
    • File the revised Sections 1140.005.40 through 1140.005.55 in the Food Stamp Manual.
    REM
    Distribution #3

    [ Memorandum Table of Contents ]


     
    of Expiration (NOE).  Shorten the certification period to the month following the month the NOE is sent.

    The household's certification period expires at the end of the month following the month the notice is sent because it failed to provide sufficient information about a change in its circumstances that may affect food stamp eligibility and benefit level.  The household must reapply to continue to participate in the Food Stamp Program.
     

    1140.005.35      Information Supplied

    If the household supplies sufficient information to determine the impact on eligibility or benefit level, take the necessary action.  Obtain necessary verifications.  Complete a budget adjustment if the change involves income/expense information.
     

    1140.005.40      No Change in Benefit Allotment or Eligibility
    IM-#96  July 27, 1999

    When the reported change does not affect the allotment or eligibility, notify the household that the reported change did not affect its allotment or eligibility.  Send the household a new change report form to use to report future changes.
     

    1140.005.45      Increased Allotment

    When the reported change results in an increased allotment, notify the household of the amount of the increase.  Send the household a new change report form to use to report future changes.  The effective date of the change is based on whether the change is a significant or non-significant change.
     

    1140.005.45.05        Significant Changes
    IM-#96  July 27, 1999

    Act promptly on changes significantly impacting the household's circumstances and resulting in an increased allotment.  Significant changes are those reducing a household's total gross income by more than $50 or reporting a new household member who is not a member of another certified household.

    All claimants reporting significant changes are entitled to supplemental benefits for the month in which the change is reported.

    Issue Supplemental Benefits for the month the change is reported within the following guidelines.

     1. If the next allotment will be available within ten days of

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      the date the change was reported, issue supplemental benefits by the end of the month following the month in which the change was reported.

     2. If the next allotment will be available more than ten days after the date the change was reported, issue supplemental benefits by the availability date of the next allotment.

     NOTE:  The above guidelines are the latest dates the benefits must be issued.  Issue as soon as possible after the change is reported.  If the change is reported too late to effect the issuance for the following month, also issue supplemental benefits for that month.

     EXAMPLE:  A household reported a new member on 6/2.  The household's June allotment will be available on 6/3.  Issue supplemental benefits for June by the last day of July at the latest.  If the household reported the new member on 6/15 and the next monthly availability date for the claimant is 7/6, issue supplemental benefits for June by 7/6 at the latest.
     

    1140.005.45.10        Non-significant Changes
    IM-#96  July 27, 1999

    For changes resulting in an increase in household benefits other than described in significant changes, issue additional benefits effective not later than the first allotment available 10 days after the date the change was reported.

    EXAMPLE:  On 8/15 a household reports a $30 decrease in income.  Since the normal availability date for the household is 9/10, increase the September allotment or request supplemental benefits for September.  If the same decrease in income is reported on 8/28, and the normal availability date is 9/1, increase the household's allotment by the October issuance.
     

    1140.005.50      Decreased Allotment or Closing
    IM-#96  July 27, 1999

    When a change results in ineligibility or a decreased allotment, process the case action based on whether notification must be in advance of the negative action (advance notice) or at the same time the negative action is taken (adequate notice).  The type of notice depends on whether the change is reported in writing or by some other method.  Also, consider whether or not the change is reported timely in determining this effective month for the negative case action.

     NOTE:  Refer to the General Information Manual for other exemptions to notices of adverse action, and for notice requirements for mass changes.

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    1140.005.50.05        Report Changes in Writing/Sufficient                              Verification
    IM-#96  July 27, 1999

    If the household reports a change in writing along with sufficient information to establish ineligibility or a decreased allotment, notify the household of the benefit adjustment.  Process the case action within 10 days of the date the written notification of change is received.

    Although advance notification is not needed prior to the case action, ensure the following requirements are met.

     1. The written notice must be signed by a household member.

     2. Include sufficient information in the written report to establish ineligibility or the reduced allotment.

     3. The household retains its right to request a hearing.

     4. If a hearing is requested within 10 days of the date of adequate notice, reinstate benefits at the higher level.  If the household chooses to receive benefits at the higher level, reinstate benefits by the regular availability date or within 5 working days of the date of adequate notice if it is too late in the month to affect the regular issuance.

     5. The household is responsible for any overissuance received pending the hearing decision.

     6. Decrease benefits for the month following the change when the change is reported timely.

     7. Decrease benefits for the first month that benefits can be pulled when the change is reported nontimely.
     

    1140.005.50.10        Timely Report Changes Other Than Writing/No                       Verification
    IM-#96  July 27, 1999

    If the household timely reports a change other than in writing or without sufficient verification, resulting in ineligibility or a decreased allotment, send notice of adverse action within ten days of the date the change is reported.  Decrease the allotment effective the month following the month the notice of adverse action expires, provided a fair hearing is not requested.

    If a fair hearing and continued benefits are requested, and DFS' action is affirmed, reflect a decrease in benefits in the month following the month in which the decision is received.  The household

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    is responsible for repaying benefits issued for which it is not eligible while the hearing is pending.

    If the decision to decrease or discontinue benefits is not upheld by the Hearing Officer, continue the allotment at the previous amount or the correct amount based on the household's current situation.
     

    1140.005.50.15        Nontimely Report Changes Other Than Writing/No Verification
    IM-#96  July 27, 1999

    If the household nontimely reports a change other than in writing or without sufficient verification, resulting in ineligibility or a decreased allotment, send notice of adverse action within ten days of the date the change is reported.  Decrease the allotment effective the first benefit that can be pulled after the notice of adverse action expires to avoid a larger claim.  Food stamp benefits can be pulled up to 5:00 p.m. two days prior to the availability date.
     

    1140.005.55      When the Head of Household Leaves the Home/Dies
    IM-#96  July 27, 1999

    If the head of the household leaves the home or dies, close the case. Follow adverse notice procedures.

    The new head of household must submit a new application if the household wishes to continue to participate in the Food Stamp Program.

    If the new head of household applies during the 10 day adverse notice period, do not approve the application until the other food stamp case is closed.  If benefits become available to the household during this 10-day period, the household may use the benefits.  If the household is eligible for more benefits than it received, issue supplemental benefits.
     

    1140.010.00    MID-CERTIFICATION REVIEWS

    Elderly or disabled households certified for 24 months must have a mid-certification review.  At the review, re-establish household composition, income, expenses, and resources.  The review is due in the 12th month following the first month of certification.

    If the case remains categorically eligible, the condition of the mid-certification review is met.
     

    1140.010.05      Mid-certification Review for FS Only Cases

    Review by telephone.  If the household does not have a telephone,

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