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
|
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. 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.
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: |
Distribution #3 |
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
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
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 1140-5 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
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
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. 1140-6 1140.005.50.05
Report Changes in Writing/Sufficient
Verification
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
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 1140-7 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
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
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, 1140-8 |