FSC MANUAL  12/01/03

11100 Summary

Ongoing food stamp eligibility and benefit amounts are based on a household's current situation. To ensure current information about a household is available, reporting requirements are imposed on all households that apply for food stamp benefits and all households that receive food stamp benefits. There are two types of reporting requirements - occasional reporting and limited reporting. Occasional reporters are subject to the regular reporting requirements. This means that the household must report specified changes within 10 days of the date the change becomes known.

Limited reporters are required to report when the household's gross income exceeds the household's gross income limit.  Some limited reporting households are assigned a 4-month certification period. These households have no other reporting requirements. Other limited reporting households are assigned a 12-month certification period. These households must submit a semi-annual report. On the semi-annual report, the household must report and verify all earned income and report changes in residence, household composition, unearned income and resources. See the chart below for additional information about the reporting requirements.

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06/01/01

11110 Subsequent Reviews 

DHS county offices may not require households to report for an in-office interview during their certification period although they may request households to do so. For example, the DHS county office may not require food stamp households to report for an in-office interview simply to review their case files or for any other reason.

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06/01/01

11120 Refusal to Cooperate Following Certification 

If a household currently participating in the Food Stamp Program refuses to cooperate in any subsequent eligibility review, the food stamp case will be closed. Subsequent reviews include:

1. Requests for information, verification or compliance with a program requirement following a report of a change by the household.  (See [FSC 11420,] [FSC 11440] and [12400] for instructions.)  Requests for information, verification or compliance with a program requirement following a report from a source other than the household.  (See [FSC 12440] for instructions.)
2. Requests for information, verification or compliance with a program requirement at recertification.  (See [FSC 10550] for instructions.)
3. Requests for an interview and/or information necessary to complete a Quality Assurance review including the household's signature on consents for information needed by the Quality Assurance worker  (See [FSC 801] for instructions.)
4. Requests for the household to participate in any special reviews conducted by the county for targeted households.  (See [FSC 12400] for instructions.)

Any household that refuses to cooperate in a subsequent eligibility review may reapply for food stamp benefits, but will not be found eligible until the household cooperates with the county office. There is one exception.  A household that refuses to cooperate in the Quality Assurance Review process may reapply after the end of the review period and be found eligible. See the [Glossary], definition of "Household Cooperation", for an explanation.

FSC MANUAL  12/01/03

11200 Changes Required to be Reported

The following changes must be reported to the DHS county office:

1. Changes in Residence and/or Address

All changes in residence must be reported. If a change in residence results in a change in the household's shelter cost, the new shelter costs must be reported. For occasional reporters as defined in [FSC 11100], these changes must be reported within 10 days of the date the change becomes known to the household. For semi-annual reporters as defined in [FSC 11100], these changes must be reported on the semi-annual report. (We suggest that households voluntarily report address changes immediately to prevent problems with mail delivery.)

NOTE: If a county office worker verifies through any source that a household has moved from Arkansas to another state, the household's case must be closed. This policy applies across the board to all food stamp households regardless of the household's reporting requirements. No advance notice is required. See [FSC 11450] and [FSC 11571]. If the worker suspects the household has moved from the State but the household's residency has not been verified through a reliable source, a request for contact will be sent as instructed in [FSC 12400].

2. Changes in Household Composition

The addition or loss of any eligible or ineligible household member must be reported. For occasional reporters, this change must be reported within 10 days of the date the change becomes known to the household. For semi-annual reporters, this change must be reported on the semi-annual report.

3. Changes in Resources

The acquisition of any licensed vehicle must be reported. (This includes the acquisition of an additional vehicle or the "trading" of one vehicle for another one.)

Total liquid resources (cash on hand, bank accounts, stocks, bonds, etc.) that reach or exceed $2,000 must be reported.

For occasional reporters, these changes must be reported within 10 days of the date the change becomes known to the household. For semi-annual reporters, these changes must be reported on the semi-annual report.

4. Changes in Income

Limited reporters (including both households with 4-month certification periods and semi-annual reporters) are required to report when the household's gross income exceeds the household's gross income limit. This change must be reported within 10 days of the end of the month in which the change occurred. If the tenth day falls on a weekend or holiday, the reporting time will be extended to the end of the next work day. A Change Report Form (DCO-234) and a CHANGE REPORT ADDENDUM: The Limited Reporting Requirements must be issued to all limited reporting households to be used to report such changes. In addition, all semi-annual reporters must report and verify all earned income when the semi-annual report is submitted. (Exception: Self-employment income that has been annualized need not be reported and verified when the semi-annual report is submitted.) Semi-annual reporters must report and verify changes of more than $50.00 in unearned income and changes in sources of unearned income when the semi-annual report is submitted.

Occasional reporters must report the following changes in both earned and unearned income within 10 days of the date the change becomes known to the household.

• Changes in a source of income. This includes new income from any source or income from any source that has stopped.
• Changes of more than $50 in the household's total gross monthly income. This includes both increases and decreases in income.

Neither changes in TEA cash assistance payments nor the receipt of child support refunds paid to TEA recipients need be reported by either limited reporters (including those limited reporters subject to semi-annual reporting) or occasional reporters. These changes must be reflected in the household's food stamp benefit amount. See [FSC 12410] - 12420 for an explanation of the requirement to process changes in TEA cash assistance when they occur. (This applies to both limited reporters and occasional reporters.) See [FSC 5704.1] for instructions on handling child support refunds.

5. Changes in Deductions

Limited reporters with 4-month certification periods do not have to report changes in deductions until recertification. Limited reporters who must submit a semi-annual report must report and verify child support payments when the semi-annual report is submitted if these payments are to continue to be deducted. Both occasional reporting and semi-annual reporting households are allowed, but not required to report changes in shelter costs (see item 1 above for an exception), dependent care costs and medical costs.

FSC MANUAL  010/01/03

11300 Reporting Requirements

11310 Applicant Households

During the application interview, all applicants must report changes that occur after the application is prepared. After the application interview occasional reporters must report changes that occur after the interview but before the application is approved within 10 days of the date of the approval notice. (NOTE: Limited reporting households do not have to report changes that occur after the interview but before the application is approved. Limited reporters must report only report changes as described in [FSC 11340].)

FSC MANUAL  10/01/03

11320 Categorically Eligible Households

Categorical eligibility is explained in [FSC 1920]. Categorically eligible households have the same reporting requirements as any other household. If a categorically eligible household reports a change and as a result is no longer categorically eligible, the household becomes subject to applicable income and resource limitations. The case will be closed if necessary. If a regular or aged/disabled household reports a change and as a result becomes categorically eligible, the income and resource limitations will no longer apply.

FSC MANUAL  12/01/03

11340 Limited Reporting Households                                                                  12/01/03

Limited reporting households are required to report:

1. When the household's gross income exceeds the household's gross income limit.
2. In counties without a waiver of the requirement to work, when household members subject to this requirement begin to work less than 20 hours per week.

This change must be reported within 10 days of the end of the month in which the change occurred. If the tenth day falls on a weekend or holiday, the reporting time will be extended to the end of the next work day. A Change Report Form (DCO-234) and a CHANGE REPORT ADDENDUM: The Limited Reporting Requirements must be issued to all limited reporting households at certification and recertification.

Two different categories of households are subject to the limited reporting requirements - households certified for four months (see FSC 11331) and households subject to semi-annual reporting (see FSC 11332).

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10/01/03

11341  Households Certified for Four Months

The following households may be assigned a four-month certification period as explained in [FSC 8710]:

• Homeless households
• Households with members who are on strike
• Certain self-employed households
• Migrant and seasonal farmworker households who expect to remain in the state

Households assigned a four-month certification period have no additional reporting requirements. All changes in the household's circumstances must be reported at the household's next certification or recertification. Changes reported before the household's next recertification will be processed according to the standards in [FSC 11410]. Any action taken in a TEA and/or Medicaid case must also be reflected in the food stamp case. This includes changes reported to a TEA and/or Medicaid worker under that Program's rules.

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10/01/03

11342  Semi-Annual Reporting Households

In addition to the reporting requirements in FSC 11330, semi-annual reporting households as defined in [FSC 11100] must report and verify earned income when the semi-annual report is submitted. Other changes as specified in [FSC 11200] must be reported only when the semi-annual form is submitted.

Changes reported independent of the semi-annual reporting system will be processed according to the standards in [FSC 11410]. Any action taken in a TEA and/or Medicaid case must also be reflected in the food stamp case. This includes changes reported to a TEA and/or Medicaid worker under that Program's rules. Changes in the amount of TEA cash assistance must be reflected in the food stamp case. This applies to both limited reporting and/or semi-annual reporting households and to occasional reporting households. See [FSC 12410]-12420 for additional information.

A semi-annual reporting household that fails to report a change on a semi-annual report form issued after the household becomes aware of the change but before the next recertification or initial application is considered to be at fault for any resulting over issuances or under issuances of food stamp benefits. If an under issuance occurs because the household failed to report a change on the semi-annual reporting form, no restored benefits will be issued to the household. See [FSC 13000]. If an over issuance occurs, an overpayment will be prepared as instructed in [FSC 15400].

FSC MANUAL  10/01/03

11350 Occasional Reporters

Currently, households classified as occasional reporters as explained in [FSC 11100] must report the changes specified in [FSC 11200] within 10 days of the date the change becomes known to the household. Occasional reporters may report changes on a Change Report Form (DCO-234) or may send a letter describing the change. Changes may also be reported by telephone or in person. Changes submitted by telephone or in person will be recorded by the county worker on a Telephone Report (DCO-271).

An occasional reporting household that fails to timely report a change is considered to be at fault for any resulting over issuances or under issuances of food stamp benefits. If an under issuance occurs because the household failed to timely report a change, no restored benefits will be authorized. If an over issuance occurs, an overpayment will be prepared as instructed in [FSC 15400].

FSC MANUAL  09/01/99

11400 Special Instructions - Occasional Reporters

The following actions must be taken on all changes reported by occasional reporters:

1. Record the change.

Each county must devise a record of changes reported by occasional reporters. The minimum requirements for the record are the name and SSN of the head of the household, the date the change was received and the date the change was completed. Other information may be captured if desired by the county office.

2. Document in the case record the date the change was received.

Any Change Report Form (DCO-234) or letter submitted by a household must be date stamped on the day received. A Telephone Report (DCO-271) must be dated with the date the change was reported.

3. Provide the household with a new DCO-234 and business reply mail (BRM) envelope.
4. Provide the household with a notice. See [FSC 11440] for additional information.

FSC MANUAL  09/01/99

11410 Processing Standards for Occasional Reporters

Any change must be processed within 10 days of the date the change was reported to the county office. Day one of the processing period is the first calendar day after the report was received. The date of receipt must be entered by the county office on all changes including those received in person or by telephone.

An increase in food stamp benefits resulting from the addition of a household member or a decrease of $50 or more in income must be reflected in the household's next regularly scheduled benefit extract. (If a change is reported after current month's benefits have extracted, no change can be made until the following month.) If necessary, a supplemental issuance will be authorized. See [FSC 13200].

Other increases in food stamp benefit amounts must be reflected in the first regularly scheduled extract of food stamp benefits occurring after the allowed processing period.

Example 1 - On July 31, a household reports a member who was earning $200 per week was laid off. Only one pay check will be received from this job in August. This change must be reflected in the household's August food stamp benefit amount.

Example 2 - On August 1, a household reports a member who was earning $200 per week was laid off. Only one pay check will be received from this job in August. This change must be reflected in the household's September food stamp benefit amount.

Unless the reported change meets all the criteria listed in [FSC 11440], a decrease in benefits or a case closure must be effective no later than the month following the month in which the household's notice of adverse action expires.

Example 1 - A change in liquid resources is reported by telephone on July 25, and processed the same day. The household is ineligible. The notice of adverse action expires August 4. The closure is effective for the September food stamp benefit amount.

Example 2 - A change in liquid resources is reported by telephone on July 16, and processed on July 20. The notice of adverse action expires on July 31. The closure is effective for the August food stamp benefit amount. (NOTE: If the household provides verification of its eligibility on the 31st, reinstatement must occur.)

When the household is exempt from the notice of adverse action, the decrease or closure will be effective no later than the month following the month when the change was processed.

Example - A change in liquid resources is reported in writing on July 25, and processed the same day. The household is ineligible. An adequate notice is issued. The closure is effective for August.

FSC MANUAL  10/01/08

11420 Verification for Occasional Reporters

Verification of a change in income will be required in the following situations.

§         A change of more than $50 has been reported. (Verification is not required if the change is $50 or less.)

§         The income is from a new source.

§         Income from any source has stopped.

§         The reported information appears to be inaccurate.

§         The reported information is incomplete.

§         The reported information is inconsistent with information found in the case record.

Resource change:

Reported changes in resources (vehicles or liquid resources) will be verified when the information reported is inaccurate, incomplete or inconsistent with information found in the case record.

Household composition change:

Reported changes in household composition will be verified only when the reported information is inaccurate, incomplete or inconsistent with information found in the case record.

New address:

A new address need not be verified unless the reported information is inaccurate, incomplete, or inconsistent with information found in the case record. However, a change in shelter expense should be explored.  If the household's residency in the county and/or state is in question, verification of residency will be requested.

Deduction change

New costs declared for rent, mortgage, insurance, and/or real estate tax expense would be verified only if questionable.  When an occasional reporting household reports a member is paying dependent care costs the expense will be verified.  Actual utility costs, which exceed the standard and result in a deduction, will be verified if the household has moved or the amount has changed by more than $25.  Both the obligation to pay child support and the amount of payment will be verified when an occasional reporting household claims a member has begun paying child support.

Medical expense change

Verification of medical expenses will be requested if the household reports total medical expenses that have changed by $25 or more.  Verification will also be requested if the household has declared an expense, which may be past due or subject to reimbursement.

Verification requirements

Verification will be requested via a request for contact.  See FSC 12400.  If the household responds to the request for contact and supplies verification, which results in a decrease in benefits or a case closure, an advance notice of adverse action will be issued to advise the household of the effect of the change.  See FSC 11440.

If a household does not submit required verification before the deadline specified on the request for contact (except for verification of child support payments, dependent care costs, medical expenses or actual utilities), the household's case must be closed.  If verification of child support payments, medical expenses, dependent care costs, or actual utility costs is not supplied before the deadline, the expense will be disallowed.  The case will be closed only if the household's income exceeds the limits when the expense is disallowed. 

NOTE: If verification of actual utility costs is not provided, the worker will use the utility standard in the budget if the household is entitled to the standard.  If not, all unverified utility costs will be disallowed.  An advance notice of adverse action must be issued to advise the household of the case closure or decrease in benefits.

FSC MANUAL  10/01/01

06/01/04

11430 Shortening the Certification Period

County office workers may not shorten the certification period of households that are participating in the Food Stamp Program unless the household is ineligible. 

There is one exception.  A 24-month certification may be shortened when a household's circumstances change and the household is no longer eligible for a 24-month certification period.  However, before a certification period can be shortened, an advance notice of adverse action must be issued to the household. See FSC 11660 for full instructions.

FSC MANUAL  09/01/99

11440 Notices to Occasional Reporters

If the household's food stamp benefit amount will not change, the household will be so notified via a manually issued Notice of Action (DCO-1).

When the food stamp benefit amount decreases or the case closes as a result of a reported change, an advance notice of adverse action must be issued unless the report meets all of the following conditions:

• The information was reported in writing via Change Report Form (DCO-234) or a letter signed by the head of the household, spouse, or other responsible household member.
• Based solely on the household's written report, the worker can determine the household is ineligible or the food stamp benefit amount will decrease.
• The household is advised of its right to an administrative hearing and continued benefits if the hearing is requested within 10 days of the date of the notice.
• If continued benefits are requested, the household's previous benefit amount must be reinstated within 5 work days. See [FSC 7310].

If the reported change meets all these conditions, an advance notice of adverse action is not required. However, an adequate notice must be issued to be received by the household before the reduced benefits are authorized. For case closures, the adequate notice must be received by the household before or at about the same time the household's benefits would normally be authorized.

Either the notice of adverse action or the adequate notice must advise the household of:

• The nature of the change (reduction or closure);
• The reason for the change; and
• The effective date of the action.

When the food stamp benefit amount increases as the result of a reported change an adequate notice must be issued. The notice of action must advise the household of:

• The new food stamp benefit amount;
• The reason the benefit increased; and
• The effective date of the increase.

FSC MANUAL  09/01/99

11450 Special Situations/Exemptions From Notice

In the situations listed below, adverse action may be taken on an occasional reporting case without the issuance of a notice.

1. Death of All Household Members - When all household members have died, the case will be closed immediately. No notice will be issued.
2. Move From State - When all household members have moved from the state, the case will be closed immediately. No notice is required; however, one may be provided upon request.
3. Completion of Restoration of Lost Benefits - Some households elect to receive restored benefits in installments. Such households must be notified in writing of the last month restored benefits will be authorized. (See [FSC 13310].) If the household was properly notified at the time the restored benefits were authorized, no notice need be sent after all installments have been authorized.
4. Anticipated Changes in Monthly Benefits - The monthly food stamp benefit amount may vary from month to month due to anticipated changes. See [FSC 14323]. If the household was notified of these variations at certification, no additional notice is required.
5. Case Closed at Household's Request - When a household voluntarily requests case closure in writing, no notice is required. If a verbal request for closure is made by the household in the presence of the county office worker, written confirmation of the closure will be issued via the Notice of Action (DCO-1). The written confirmation will not offer the household the same protection as an adequate notice. (See Food Stamp [Glossary] Appendix, definition of "Notice of Action.") Should the household appeal the action to close the case, benefits will not be continued pending a decision.
6. Addressee Unknown/No Forwarding Address - When mail is returned by the post office with a message from the post office indicating that the addressee is unknown, has moved and left no forwarding address, or that the address provided does not exist, the case may be closed without notice. The worker must insure that a county office error did not cause the mail to return. The county office worker must also insure that the household has not reported an address change which was not processed or was processed incorrectly. The returned mail, including the envelope, must appear in the case record. The action to close the case must be fully documented.

FSC MANUAL 

10/01/08

11460 SUMMARY CHART

OCCASIONAL REPORTING

NOTICE CODES FOR REPORTED CHANGES

AN -                Issue an adequate notice.

NOAA -           Issue an advance notice of adverse action.

NON -             No notice is required.

VERIFICATION CODES FOR REPORTED CHANGES

VC                  This information must be verified when the amount paid or caretaker/provider changes.

VR -                This information must be verified.

VQ -                This information must be verified if questionable.

VIO -               This information must be verified if incomplete, inaccurate, inconsistent, or outdated.

VS25 -            This information must be verified if the source has changed or the amount has changed by more than $25.

FSC MANUAL  10/01/03

11500 Semi-Annual Reporting Households

Households subject to semi-annual reporting will be assigned a mandatory 12-month certification period and required to submit one report in the sixth month of their certification period. At the end of the 12-month period, the household must be recertified.

FSC MANUAL  10/01/03

11510 Households Subject to Semi-Annual Reporting

All food stamp households except those listed below are subject to the semi-annual reporting requirements. The households listed below are not required to submit a semi-annual report:

1. Households eligible to be assigned a certification period longer than 12 months. (See [FSC 8710], item 3.) EXCEPTION - Any of these households with a child support deduction will be assigned a 12-month certification period and will be subject to the semi-annual reporting requirements.
2. Migrant and seasonal farm worker households. (See the [Glossary] for the definitions of a migrant household and a seasonal farm worker household.) These households have limited reporting requirements, but are not required to submit a semi-annual report.
3. Households certified under the expedited provisions when verification is postponed. (See [FSC 9441].) These households will be certified for one or two months. They will be classified as occasional reporting households.

4. Households residing in a drug and/or alcohol treatment center. (See [FSC 1820].) These households will be assigned a one to three month certification period. They will be classified as occasional reporting households.

5. Households with a member participating in a strike. (See [FSC 1700].) These households have limited reporting requirements, but are not required to submit a semi-annual report.

6. Households composed entirely of SSI recipients when one of the SSI recipients has earned income from a sheltered workshop will be assigned a 12-month certification period but will not be subject to semi-annual reporting. These households will be classified as occasional reporting households. EXCEPTIONS - Any SSI household with a child support deduction and any SSI household with earnings from employment other than a sheltered workshop will be will be subject to semi-annual reporting.

7. Households assigned a one or two month certification period under the policy in [FSC 8710]. Households will be assigned a one or two month certification period when it appears likely that the household will become ineligible to receive food stamp benefits in the near future. (This includes households that intend to leave the State in the near future.) These households will be classified as occasional reporting households.

Households consisting entirely of aged and/or disabled individuals, as defined in the [Glossary], and minor dependent children. These households will be classified as occasional reporting households and assigned a 24-month certification period. EXCEPTION: Any of these households with earned income will be subject to semi-annual reporting unless the earned income is paid to an SSI recipient who is working in a sheltered workshop. See item 6 above.

FSC MANUAL  12/01/03

11520 Entering Semi-Annual Reporting

A household may only enter semi-annual reporting when an initial application or an application for recertification is approved. In the following situations a household must be given a full explanation of semi-annual reporting:

• When a household enters semi-annual reporting for the first time.
• When a household was not subject to semi-annual reporting during the last certification period.
• If more than one full calendar month has elapsed since the household last participated in the Program.

The worker will provide a pamphlet to the household and will explain:

• That the household must submit a semi- annual report form in the sixth month of the certification period including a brief explanation of how to complete and return the form.
• That limited reporting household must report certain changes, and what those changes are, and how to report them. (A Change Report Form [DCO-234] and a CHANGE REPORT ADDENDUM: The Limited Reporting Requirements will be issued to the household.)
• That the household is allowed to report other changes at any time.
• That failure to return the semi-annual report will result in case closure.

At the recertification interview, a pamphlet and an abbreviated explanation of semi-annual reporting will be furnished to households subject to the semi-annual reporting requirement. This explanation may consist of:

• A review of the limited reporting requirement;
• A review of the changes which are to be reported on the semi-annual report; and
• An explanation that failure to return the semi-annual report will result in case closure.

FSC MANUAL  10/01/03

11530 Processing Standards

One semi-annual reporting form will be generated during a 12-month certification period. The semi-annual report month will be based on the date of application not the date of application approval.

EXAMPLE - An application is submitted on April 16. Regardless of whether the application is approved in April or May, the semi-annual report form will be processed during the month October. The household will be recertified in March.

When a household is recertified, the semi-annual report form will be processed six full months into the new certification period.

EXAMPLE - A household applies and is recertified in December. The new certification period begins in January. The semi-annual report form will be processed in June . The household will be recertified again in December.

Semi-annual reports will be extracted five work days from the end of the month and mailed three days after extract. The form will be due on the fifth of the following month. The household must submit a semi-annual report form before the end of the report month, or the case will automatically close. Semi-annual reports received in the county office on or before the due date (the fifth of the month) must be completed before the end of the report month. This means the household must be notified before the end of the report month of the effects of the report on eligibility and benefit amount.

Semi-annual reports received in the county office after the due date but postmarked before the end of the report month must be processed within 10 days or before the end of the report month, whichever is later. If the last work-day falls on a weekend or holiday, forms received on the first work day of the following month will be considered to have been received before the end of the report month. Processed means: 1) that a case action has been completed and keyed, or 2) that a Semi-Annual Reporting Request for Information has been issued to request required verification. Households required to submit verification must be allowed until the end of the report month to provide requested information unless this will allow the household less than 10 days to provide the verification.

If the household submits a semi-annual report before the end of the report month but the county does not key a case action by the end of the month, the case will automatically close. If the household is later determined to be eligible, the case must be reinstated. For example, if the SR form is submitted on the last day of the month, but county office worker requests required verification, the case will close. If the verification is received from the household within the specified time, the SR must be processed and the case reinstated if the household is eligible. (Households that are not eligible must be issued an adequate notice advising them of the reason for the ineligibility.)

FSC MANUAL  10/01/03

11531 Semi-Annual Households - Special Circumstances

Occasionally, a semi-annual reporting household will report a change in the last twenty days of the fifth month of the certification period. The change must be processed if there is adequate time to affect the household's benefits for the sixth month of the certification period. If not, the change will be processed when the semi-annual report is processed.

In some instances, a household will be issued an advance notice of adverse action that expires during the last ten days of the fifth month of the certification period. See below for the correct procedure to follow in these instances.

Situation 1 - In the first two weeks of the fifth month, a semi-annual reporting household reports a change. Verification is requested. The household submits the verification as requested.

Action - If the verification is provided in time to affect the sixth month of the certification period, the change will be processed immediately. If not, the change will be processed when the semi-annual report form is submitted.

Situation 2 - In the last two weeks of the fifth month of the certification period, a semi-annual reporting household reports a change. Verification is requested. The household does not submit the verification before the semi-annual report form is extracted. The household submits the semi-annual report form.

Action - If the case remains open for any reason, the semi-annual report form will be processed.

If the case has been closed, the correct action will depend on when the semi-annual form was mailed to the household.

1. If the semi-annual report form was sent to the household before the 10 day notice of adverse action expired, the case will remain open and the semi-annual form will be processed..
2. If the semi-annual report form was sent to the household after the 10 day notice of adverse action expired, the case will remain closed and the household instructed to reapply.

Situation 3 - A household moves. The food stamp case is transferred to the new county of residence. The household submits the semi-annual report form after the closure occurs.

Action - A new application must be submitted in the county where the household lives. The household will be so notified by the county receiving the semi-annual report form.

FSC MANUAL  09/01/99

10/01/03

11540 Completion of the Semi-Annual Report Form

A copy of the semi-annual report will be issued to each county office. The form will also be available on DHS Gold. The form may accessed through DHS Gold, printed and provided to any household that requests a semi-annual report form for any reason.

The names and birth dates of the case head and all household members must be entered on the form. The form must be signed by the case head or other responsible household member or the authorized representative. Forms that do not contain the names of household members and a legitimate signature will be returned to the household for completion. If names, but no birth dates appear on the form, the worker may contact the household by telephone for the dates of birth or the name of the case head. (Workers entering information on the form must use a different color ink, must initial the entry and must document the name of the household member who provided the information.) If the household cannot be reached by telephone, the form will be returned to the household for the necessary information.

Unsigned forms will be returned to the household. In other instances, when a form lacks sufficient information to determine the household's current circumstances, the household may be interviewed by telephone. Information provided in a telephone interview will be clearly labeled and the following information documented - the name of the person interviewed, the date of the interview and the name of the worker who conducted the interview. If telephone contact is not possible the form may be returned to the household for completion. The household will be given until the end of the report month or 10 days, whichever is later, to return the completed form. The incomplete form will be accompanied by a Notice of Required Verification (DCO-218), explaining that if the form is not returned by the date indicated on the DCO-218, the case will close. The form will tell the household to contact the county office if assistance is needed in completing the form.

FSC MANUAL  10/01/08

11550   Verification to be Submitted With Semi-Annual Report Form               10-01-08

The following income verification must be submitted with the semi-annual report.

1.      Verification of earned income.

Exceptions:  Self-employment income that has been annualized need not be re-verified when the semi-annual report is submitted.  Contractual income that has been annualized need not be re-verified when the semi-annual report is submitted.

2.      Verification of unearned income from a new source.

3.      Verification of unearned income that has increased or decreased by more than $50.00.  (Verification is not required if the change is $50 or less.)

4.      Verification of a declared child support deduction.  If this is a new deduction, both the amount of obligation and the amount of child support paid must be verified.  For existing deductions, the obligation to pay must be verified only if a change is reported.  The amount of child support paid must be verified at each semi-annual report.

5.      Verification of declared dependent care cost.  If this is a new deduction, the amount paid, the frequency of payment, and name including address and telephone number of the provider must be documented.  For existing deductions, the dependent care cost must be verified only if a change is reported.

See the chart in FSC 11580 for additional information about required verification.

When the semi-annual report is processed, the budget will be calculated prospectively.  Therefore, for earned income, the household must submit, at a minimum, verification of earnings received in the 30-day period prior to the date of completion of the form.  (Usually, this will be the two or four most recently received check stubs.)  If the household submits additional verification, this verification may be used to anticipate the household's income for the upcoming six-month period.  See FSC 7512 and FSC 7523 - 7523.2 for additional information.

If the form is submitted some time after the date it was completed and signed, the worker is allowed, but not required, to obtain verification of additional pay the household should have received by the date of submission.  For example, if the income verification submitted by the household with the form is representative of the household's current pay, the household may not need to submit additional verification.

Questionable information that appears on the form must also be verified.  The worker will request verification and/or collateral contact if:

§         The household is no longer reporting unearned income from a previously declared source;

§         A new member has been added, the new member is subject to the work registration requirements and no income was reported for this member; or

§         The household's expenses exceed its income and unreported income and/or unreported household members are suspected.  (NOTE:  Verification is not required at every report where the expenses reported by the household exceed the household's income.  However, verification is allowed if the worker feels the household's situation is QUESTIONABLE.  See below for additional information.)

The worker may request verification of any questionable situation.  However, the reason the situation is considered questionable must be documented in the case record.  For example, if a household is reporting there has been no change in a source of unearned income that has historically fluctuated by more than $50.00, the worker may request verification of the income from that source. 

In addition, the worker may refer cases to the Field Investigator or may conduct a field investigation if there is reason to think information provided on the form is false.  If possible, the investigation should be completed before the form is processed.  See FSC 12440 for additional information about reports from Field Investigators. 

Verification must always be requested via a Notice of Required Verification (DCO-218) accompanied by a BRM envelope.  The deadline for providing required verification must always be the last day of the report month unless the deadline must be extended.  (If necessary, the deadline must be extended into the month following the report month to allow the household a full 10 days to provide required verification.  If the 10-day period ends on a weekend or holiday, the deadline will be further extended until the end of the first workday following the weekend or holiday.) 

An eligible household will be reinstated when the required verification is furnished before the specified deadline but after the case has closed.  An adequate notice will be issued to ineligible households as explained in FSC 11570.

If a household does not submit required verification before the specified deadline (except for verification of child support payments, dependent care costs, medical expenses or actual utilities), the household's case will close.  If the verification is submitted after the deadline, the household will be issued a Notice of Action (DCO-1) stating that the food stamp case has already been closed and the household must reapply.

If verification of child support payments, dependent care costs, medical expenses or actual utility costs is not supplied before the deadline, the expense will be disallowed.  The case will be closed only if other verification is missing or the household's income exceeds the limits when the expense is disallowed.

FSC MANUAL  01/01/06

11560 IEVS Reports

See FSC 2610 for a full explanation of the IEVS requirements.

At the time of or before the semi-annual reporting form is processed, a DHHS county office worker (clerical worker, case worker, etc.) must inquire to the WESD screen for at least the following household members:

§         Age 16 or 17 and not receiving disability benefits or enrolled in school full time

§         Age 18 to 65 and receiving disability benefits

.A county office worker must print both the UI (unemployment insurance) history screen and the wage history screen for these household members.  The information contained on the UI screen is considered as verified upon receipt.  County office workers may use this information to verify statements provided on the semi-annual report.  If the household has not declared information found on the UI screen, the county office worker will resolve the discrepancy before the semi-annual report is processed.

The information on the WAGE screen may be several months old and must be independently verified.  If the information on the WAGE screen indicates that someone in the household may be working and the employment was not reported on the semi-annual report, the county office worker must resolve the discrepancy.  To resolve the discrepancy, the county office worker will ask the household if the household member is currently employed.  If the response is “no”, the county office worker will determine why he or she is no longer employed.  Verification will be requested if appropriate.  If the response is “yes”, the county office worker will request verification of current earnings before the SR is processed

FSC MANUAL  10/01/03

11561 Delaying Processing to Get IEVS Information

The deadline for providing required verification of IEVS information will be the end of the semi-annual report month. However, If necessary, the deadline will be extended into the month following the report month to allow the household 10 days to provide the requested verification. If the household furnishes the required verification before the specified deadline but after the case has closed, eligible households will be reinstated. If the household is not eligible, an adequate notice will be issued.  (See [FSC 11570].)

If the household does not submit the required verification before the specified deadline, the household's case will close. If the verification is submitted after the deadline, the household will be issued a Notice of Action (DCO-1) stating that the food stamp case has already been closed and the household must reapply in order to participate in the Program.

FSC MANUAL  0/101/06

11562 Changes to IEVS Screen After Form Processed  Deleted 01-01-06

FSC MANUAL  10/01/03

11570 Notices – Semi-Annual Reporting Households

An adequate notice will be issued to any household whose food stamp benefit amount changes as a result of information reported on the semi-annual report. The adequate notice must be received by the household before or at about the same time the household's benefits will normally be received. The adequate notice must advise the household of:

• The nature of the change;
• The reason for the change; and
• The effective date of the change.

An automated notice may be issued in most circumstances.

FSC MANUAL  10/01/03

11571 Special Situations/Exemptions From Notice

In the situations listed below adverse action may be taken on a semi-annual reporting case without the issuance of a notice.

1. Death of All Household Members - When all household members have died, the case will be closed immediately. No notice will be issued.
2. Move From the State - When all household members have moved from the state, the case will be closed immediately. No notice is required; however, one may be provided upon request.
3. Completion of Restoration of Lost Benefits - Some households elect to receive a restoration of lost benefits in installments. Such households must be notified in writing of the last month restored benefits will be received. (See [FSC 13310].) If the household was properly notified at the time the restoration was authorized, no notice need be sent after all installments have been authorized.
4. Anticipated Changes in Monthly Benefits - Food stamp benefits may vary from month to month due to anticipated changes. See [FSC 7523.3]. If the household was notified of these variations at certification, no additional notice is required.
5. Case Closed at Household's Request - When a household voluntarily requests case closure in writing, no notice is required. If a verbal request for closure is made by the household in the presence of the county office worker, written confirmation of the closure will be issued via a Notice of Action (DCO-1). The written confirmation will not offer the household the same protection as an adequate notice. (See Food Stamp [Glossary] Appendix, definition of Notice of Action.) Should the household appeal the action to close the case, benefits will not be continued pending a decision.
6. Addressee Unknown/No Forwarding Address - When mail is returned by the post office with a message from the post office indicating that the addressee is unknown, has moved and left no forwarding address, or that the address provided does not exist, the case may be closed without notice. The worker must insure that a county office error did not cause the mail to return. The county office worker must also insure that the household has not reported an address change which was not processed or was processed incorrectly. The returned mail, including the envelope, must appear in the case record. The action to close the case must be fully documented.

FSC MANUAL  10/01/08

11580 SUMMARY CHART

SEMI-ANNUAL REPORTING (SR)

NOTICE CODES FOR REPORTED CHANGES

AN - Issue an adequate notice.

NOAA - Issue an advance notice of adverse action.

NON - No notice is required.

 

VERIFICATION CODES FOR REPORTED CHANGES

VC-                 This information must be verified when the amount paid or caretaker/provider changes.

 

VR -                This information must be verified.

 

VQ -                This information must be verified if questionable.

 

VIO -               This information must be verified if incomplete, inaccurate, inconsistent, or outdated.

 

VS25 -            This information must be verified if the source has changed or the amount has changed by more than $25.

 

FSC MANUAL  09/01/99

06/01/04

11600 Midpoint Reviews on 24 Month Certifications

At any application (initial or recertification), a certification period of up to 24 months may be assigned to any household in which there is no earned income, all household members are eligible, and each household member is either aged or disabled as defined in the Glossary under Aged/Disabled Household or minor dependent children. A household composed entirely of aged and/or disabled members and minor dependent children age 15 or younger may also be assigned a 24-month certification period if no household member has earnings or a child support deduction.  All households assigned a 24-month certification period are subject to the occasional reporting requirements.  (See FSC 11350.)  Additionally, these households must submit a signed Food Stamp Midpoint Review (DCO-244) at the end of the first 12 months of the certification period

All households assigned a 24 month certification period are subject to the occasional reporting requirements. (See [FSC 11350].) Additionally, these households must submit a signed Food Stamp Midpoint Review (DCO-244) at the end of the first 12 months of the certification period.

On the last work day of each month or at the time of monthly extract, a DCO-244 will be generated for each household in its 10th month of certification when the certification period is longer than 12 months. For example, on January 31, a DCO-244 will be issued for each household with a certification period longer than 12 months when the 12th month of certification ends in March. DCO-244s will be accompanied by a report entitled "FS Cases Selected for Annual Review for MONTH" (FS-4026).

During the household's 11th month of certification, the county office will mail the DCO-244 to the household along with a Midpoint Review Instruction Sheet (DCO-235). The DCO-244 and DCO-235 should be mailed after the 15th day of the month but before the end of the month. The DCO-244 is intended to be used with a window envelope.

FSC MANUAL  09/01/99

11610 Processing Standards

The household must return the Food Stamp Midpoint Review (DCO-244) no later than the 15th day of the household's 12th month of certification. If the 15th day of the month falls on a weekend or holiday, the deadline for receipt will be extended to the first work day following the 15th. Failure to return the DCO-244 by the last day of the 12th month of certification will result in case closure.

When a household returns a signed DCO-244 by the 15th day, the county must process the report before the end of the month. Any signed DCO-244 returned before the end of the 12th month of certification must be processed. When DCO-244s are processed after the end of the month, the household's benefits must be reinstated.

FSC MANUAL  10/01/03

11620 Interviews

There is no requirement for a formal interview at the midpoint review. An informal interview may be conducted when information reported on the form is inaccurate, inconsistent or incomplete. (See the [Glossary], definition of "Verification" for definitions of the terms "inaccurate", "inconsistent", and "incomplete.") Even then, when the household has reported information that can be clarified through the submission of documentary evidence, it will not be necessary to conduct an interview.

An interview may be conducted with any responsible household member or with the household's authorized representative (AR). A telephone interview will be conducted whenever possible. If the household cannot be interviewed by telephone or does not wish to be interviewed by telephone, an in-office interview or a home visit may be substituted. Interviews will be scheduled via a Request for Information at Midpoint Review (DCO-103).

FSC MANUAL  09/01/99

06/01/04

11630 Processing Midpoint Review Forms

Returned Midpoint Review Forms (DCO-244) need not be fully completed. As long as the household returns a signed form, the worker may obtain the remainder of the needed information through an interview or other reliable documentary sources.

Unsigned DCO-244s received in the county office will be returned immediately to the household with a completed Request for Information (DCO-103). The household must be given at least 10 days from the date the notice is issued to return a signed form. If the form is returned after the end of the 12th month of certification but before the 10 day notice period expires, the household's benefits may be reinstated.

All medical expenses must be reported and verified at the midpoint review. See [FSC 11640] for instructions.

No special verification requirements will be imposed for changes reported at the time of the midpoint review. Households required to furnish verification must be allowed at least 10 days to do so. (It may be necessary to reinstate some cases in order to insure the household has 10 days to furnish verification.) When verification is needed, the worker will issue a DCO-103 to the household.

A household's case will not be closed solely due to failure to provide verification of a deductible expense. Instead, the expense will be disallowed. The case will be closed only if the household's net income exceeds the maximum allowed after the expense is disallowed. (See [FSC 8961] if the net income exceeds the maximum, but the household is categorically eligible.)

Verification of deductible expenses received after the stated deadline will be handled as a reported change. The day after the date of receipt will be considered day one of the 10 day change processing period.

The following chart provides specific references to policy which explains the verification and processing of reported changes.

NOTE: Changes in shelter costs are only required to be reported when the household has actually moved to another address.  Households that do report a change in shelter costs when the midpoint review is submitted have the right to choose between using the actual utility costs or the utility standard in the food stamp budget when the midpoint review is processed.

Any change in food stamp benefit amount resulting from a change reported at the midpoint review will be effective in the 13th month of the certification period.

If, as a result of a change reported at the midpoint review, a household becomes ineligible, the case will be closed unless the household is categorically eligible as explained in [FSC 8961].

If the household is no longer entitled to a 24-month certification period due to a change reported on the midpoint review, the case will not be closed.  Instead, the household's certification period will be shortened as instructed in FSC 11660. 

FSC MANUAL  06/01/01

11640 Handling Medical Expenses

At the time of the midpoint review, the medical expenses of each household member must be declared and verified. See [FSC 6500]-6526 for a full explanation of the procedures for allowing a medical deduction.

When an applicant household is assigned a certification period longer than 12 months, the household will be given the following options for handling one-time medical expenses incurred by the household during the first 12 months:

• Deducting the expense for one month; or
• Averaging the expense over the remainder of the first 12 months of the certification period; or
• Averaging the expense over the remainder of the entire 24-month certification period.

Any one time medical expenses that were prorated over part or all of the household's first 12 months of certification must be dropped when the Midpoint Review Form (DCO-244) is processed.

One-time medical expenses will be allowed in the second twelve month period if the expense was incurred or payment otherwise became due in the month of the midpoint review or the month prior to the midpoint review. Any expenses no longer being incurred by the household must be dropped from the budget, and new expenses must be added to the budget.

When a one-time medical expense is reported at the midpoint review or during the second 12 months of the household will be given the following options:

• Deducting the expense for one month; or
• Averaging the expense over the remainder of the certification period.

If the household declares medical expenses but does not provide verification or provides inadequate verification, this information will be requested via the Request for Information (DCO-103). The household may provide this information at any time before the end of the 12th month of certification unless the DCO-103 is sent during the last 10 calendar days of that month. In that case, the household must be allowed 10 days to provide the needed verification of medical expenses.

Failure to return verification of medical expenses must not cause the household's case to close unless net income exceeds the standards as a result of the disallowance of unverified medical expenses.

FSC MANUAL  06/01/01

11650 Notices

An adequate notice will be issued to each household at midpoint review to advise the household that the review has been completed. Any changes must be explained on the notice. The notice should be received by the household before or at about the same time that the next food stamp benefits should become available.

These notices will be issued manually via a Notice of Action (DCO-1).

FSC MANUAL  09/01/999

6/01/04

11660        Shortening the Certification Period

If the household is no longer entitled to a 24-month certification period due to a change reported on the midpoint review, the case will not be closed.  Instead, the household's certification period will be shortened as instructed in FSC 11660.

When a change is keyed to a case with a certification period longer than 12 months and the household is no longer eligible for the longer certification period, a system edit requires that the household’s certification period be shortened.  The new certification period must end two full months after the change becomes effective.  (For example, if the change will become effective in July, the certification period will end in September.)  This allows for the automatic generation of a Notice of Expiration (DCO-239).

To shorten a 24-month certification period the county office worker must:

•        Run a budget to determine the results of the action.  Shorten the certification period to expire two months from the date of expiration of the advance notice of adverse action.  (This will allow time for the DCO-239 to be automatically generated.)  Do not submit the budget.
•        Make the increase effective with the next month’s benefits if, as a result of the change, the household’s benefits will increase.  (Supplemental benefits may be required.)  Make the decrease effective with the first month following the expiration of the NOAA if benefits will decrease.
•    Manually prepare an advance notice of adverse action (NOAA) to advise the household that the certification period will be shortened.  If the change will result in an increase or decrease in benefits, the NOAA must also advise the household of the change in benefits.
•       Submit the budget to the mainframe if the household does not appeal the action during the 10-day adverse action period.  If the household appeals the action, do not submit the budget until the hearing is conducted.

11700 Mass Changes

Mass changes are based on legislative or regulatory actions that affect all or a substantial portion of the statewide food stamp case load. Households are not responsible for reporting changes that will be handled as a mass change.

Examples of mass changes include:

• Changes in the income eligibility standards;
• Changes in the earned income deduction, standard deduction, dependent care deduction, or shelter deduction.
• Changes in the food stamp benefit amount (NBI);
• Cost of living adjustments (COLA) on SSI or SSA payments; and
• Changes in the TEA rate of payment.

COLAs will be effective in the month of the increase unless the case cannot be automatically adjusted. Cases that cannot be automatically adjusted will be processed manually. Manually processed COLAs must be reflected in the food stamp case no later than the second issuance of benefits available to the household after the month in which the change was effective.

FSC MANUAL  09/01/99

11710 Notices at Mass Change

Notices will be mailed to all affected households. Depending on the nature of the change, the notices may either be general or specific.

General notices will explain the nature of the change, how the change may affect the household's food stamp benefits, who the household may contact if there are questions, and how the household may request an administrative hearing. Specific notices contain the same information; however, the household's old and new food stamp benefit amount will be stated.

FSC MANUAL  09/01/99

11720 Reports at Mass Change

Reports generated at the time of a mass change may include the List of Changes, a Mismatch List and a List of Closures. Not all reports are generated at all mass changes. For example, a mismatch list is generated for a COLA mass change but not for an NBI mass change.

The county's responsibilities for clearing these reports are explained in [FSC 11721 through FSC 11730].

FSC MANUAL  09/01/99

11721 List of Changes

This report is generated at every mass change under various titles. It is provided mainly for reference. The information that appears on this report is listed below:

• Case name
• Case number
• Category (NA or PA)
• Current ending certification date
• Old food stamp benefit amount
• New food stamp benefit amount

Other information will be provided depending on the nature of the change.

FSC MANUAL  09/01/99

11722 List of Mismatches

This report is generated at a mass change when income on the food stamp file must be matched to income on other files. Changes that require this type of matching include, but are not limited to, SSA and/or SSI increases and decreases. (NOTE: SSA amounts do not appear on the Recipient Master File unless the member also receives SSI. Increases in SSA that cannot be obtained from the Recipient Master File are calculated.)

The mismatch list is a report of the cases which could not be automatically changed because a problem existed with the information on either file. The report contains the following information.

• Name & SSN of the case head
• Category (NA or PA)
• Ending date of the certification period
• SSN of member whose income mismatched

Other information will be provided depending on the nature of the change.

The reason for the mismatch is indicated by a code. These codes are listed below.

01 - Two individuals on the Recipient Master File (ACES) have the same SSN.

02 - Two household members on the Food Stamp Master File (FACTS) have the same SSN.

06 - Income which appears on ACES for a household member does not appear on FACTS for the same member.

07 - Income which appears on FACTS for a household member does not appear on ACES for the same member.

08 - Food stamp benefits would have increased if the case had been recalculated.

09 - The new amount of income on the case page of WFSM differs by more than $2 from the sum of the amounts calculated for members on WFSM. Therefore, case and member's income do not agree.

10 - An SSA amount is on FACTS for an SSI recipient, but the SSA is not on ACES for that member.

The following actions must be completed to clear a mismatch:

1. Obtain the case record.
2. Resolve the discrepancy that caused the mismatch.
3. Recalculate the budget using the new income amounts. Verify the new income amount using information available in the county office. (When only SSA is received, calculate the new SSA amount using the current percentage of increase.)
4. Issue an advance notice of adverse action if the household's benefits will decrease or the case will close.

FSC MANUAL  09/01/99

11723 List of Closures

This is a listing of cases closed during the mass change because the net income exceeds the maximum allowed. These reports are generated only to counties where at least one case closure occurred. The following information appears on the report.

• The name and SSN of the case head
• Category (NA or PA)
• Old and new net income amounts

Each case listed on the report must be examined by a county office worker to ensure the validity of the closure. If the closure is found to be correct, the worker will document that the case has been checked and the closure found to be correct. The worker will initial and date this documentation. No additional action is required since closure notices are issued automatically.

If the closure is incorrect, the case must be reopened. No new application is required.

FSC MANUAL  09/01/99

11730 Administrative Hearing Rights at Mass Change

Households are advised via an automated notice of their rights to an administrative hearing. For valid closures, benefits will be reinstated only if the household feels policy was misapplied or the budget was computed incorrectly.

The household's statement of when the notice was received will be used to determine the 10 day advance notice period during which reinstatement may be requested. In questionable cases, the Food Stamp Section, Central Office, will be contacted to determine the approximate date the notice was mailed.