DEPARTMENT OF SOCIAL SERVICES

Transcription

1 COUNTY OF SANTA BARBARA DEPARTMENT OF SOCIAL SERVICES ADMINISTRATIVE DIRECTIVE NUMBER: CW AD FS AD DATE: March 4, 2004 SUBJECT: QUARTERLY REPORTING/PROSPECTIVE BUDGETING DESK GUIDE REFERENCE: AB 444 and ACL 03-18; MPP Section CANCELS: CANCEL DATE: FILING: Miscellaneous BACKGROUND AND PURPOSE This Administrative Directive summarizes the changes to the CalWORKs and Food Stamps program contained in Assembly Bill 444 in regards to quarterly reporting/prospective budgeting (QR/PB). It also provides written guidelines for implementing QR/PB changes. POLICY AB 444 requires that counties replace the current Monthly Reporting/Retrospective Budgeting system (MRRB) with a Quarterly Reporting/Prospective Budgeting (QR/PB) system for the CalWORKs (CW) and Food Stamp (FS) programs. Santa Barbara County will implement QR/PB on May 1, The new quarterly reporting system will apply to all CW cases and FS households with the exception of existing nonmonthly reporting FS households. These households will continue to follow existing nonmonthly reporting rules and will not be mandated to submit quarterly reports. Major features of the new QR/PB system include: Recipients will be required to submit an income/eligibility report once per quarter (in the third month of the quarter). Recipients will have limited mandatory reporting requirements during the quarter. Eligibility and benefits for a three-month period will be based on information provided on the Quarterly Eligibility Report form (QR 7) and will be determined using prospective budgeting and income-averaging rules. Benefits will be frozen for the three months of the quarter, except under specified circumstances. Circumstances under which benefits may be adjusted during the quarter include but not limited to: When a voluntary recipient mid-quarter report results in increased benefits;

2 AD CW Quarterly Reporting/Prospective Budgeting AD FS Quarterly Reporting/Prospective Budgeting When a mandatory recipient mid-quarter report results in a decrease or discontinuance of benefits; When an individual or household requests discontinuance; or When a county-initiated action results in decreased benefits. Benefits shall not be decreased or discontinued during the quarter unless it is a direct result of county action taken due to a change that was required to be reported, a recipient request for discontinuance, or a county-initiated action. PROCEDURES Deskguide: This AD includes detailed instructions to assist workers for implementing QR/PB. A Table of Contents is included and lists the major changes in the QR/PB system. As regulations change, workers will be notified of the change. That section of the desk guide will be replaced. Release of Information: During the application process, workers will be required to get a signed release of information (ABCDM 228) from clients who are employed. The release of information will be used when income clarification is needed. During the renewal and/or recertification process, the ongoing worker will obtain a new release of information. DEPARTMENT-WIDE IMPACT CALWORKS Quarterly submission of QR 7 FOOD STAMPS Quarterly submission of QR 7 for certain HH GENERAL RELIEF None. GR will remain on the monthly system STAFF DEVELOPMENT Incorporate in CW and FS training modules HEARINGS/COLLECTIONS/IEVS May result in increased Fair Hearings request due to regulation change FISCAL ACCOUNTING None. Fiscal claiming and processes remain unchanged due to QR/PB SYSTEMS OPERATIONS No known impact SYSTEMS No known impact CLERICAL SUPPORT Possibly more client interaction due to questions on QR-7 form and reporting cycles APS/CPS No known impact IHSS CALWIN No known impact No known impact since CalWIN will work this way also 2

3 Q R / P B Q UARTERLY R EPORTING / P ROSPECTIVE B UDGETING TABLE OF CONTENTS A. GLOSSARY OF TERMS... A-1 B. QR-7... B-1 C. MID-QUARTER REPORTING County-Initiated Actions...C-1 Mandatory Mid-Quarter Reporting...C-5 Voluntary Mid-Quarter Reports...C-13 Multiple Changes...C-26 Third-Party Information...C-31 Flowchart: Information Received Outside the QR7...C-35 D. ELIGIBILITY EVALUATION ABAWDS...D-1 Changes in Household Composition...D-2 Deprivation...D-9 Property...D-10 E. INCOME Income Eligibility... E-1 Reasonably Anticipated Income... E-4 Stable Income... E-9 Fluctuating Income... E-15 Income Averaging... E-19 Income Reporting Threshold (IRT)... E-22 F. BUDGETING Application Budgeting... F-1 Prospective Budgeting... F-7 Deductions... F-8 G. SPECIAL NEEDS...G-1 H. OVERPAYMENTS AND OVERISSUANCES (OPS AND OIS)...H-1 I. PROGRAM INTERFACE... I-1 J. QUESTIONS AND ANSWERS...J-1 Table of Contents 05/01/04 Page i

4 Q R / P B Q UARTERLY R EPORTING / P ROSPECTIVE B UDGETING TABLE OF CONTENTS A. GLOSSARY OF TERMS... A-1 B. QR-7... B-1 C. MID-QUARTER REPORTING County-Initiated Actions...C-1 Mandatory Mid-Quarter Reporting...C-6 Voluntary Mid-Quarter Reports... C-13 Multiple Changes...C-26 Third-Party Information...C-31 Flowchart: Information Received Outside the QR7...C-35 D. ELIGIBILITY EVALUATION ABAWDS...D-1 Changes in Household Composition...D-2 Deprivation...D-9 Property...D-11 E. INCOME Income Eligibility... E-1 Reasonably Anticipated Income... E-4 Income Averaging... E-9 Income Reporting Threshold (IRT)... E-12 F. BUDGETING Application Budgeting... F-1 Prospective Budgeting... F-7 Deductions... F-8 G. SPECIAL NEEDS...G-1 H. OVERPAYMENTS AND OVERISSUANCES (OPS AND OIS)...H-1 I. PROGRAM INTERFACE... I-1 J. QUESTIONS AND ANSWERS...J-1 Table of Contents 05/01/04 (Rev. 8/10/11) Page i

5 AD CW Quarterly Reporting/Prospective Budgeting AD FS Quarterly Reporting/Prospective Budgeting Glossary of Terms GLOSSARY OF TERMS TABLE OF CONTENTS A. GLOSSARY OF TERMS... A-1 Section A Glossary of Terms 5/01/04 (Rev. 3/25/10) A-i

6 AD CW Quarterly Reporting/Prospective Budgeting AD FS Quarterly Reporting/Prospective Budgeting GLOSSARY OF NEW QUARTERLY REPORTING AND PROSPECTIVE BUDGETING TERMS County Initiated Mid-Quarter Actions Changes in eligibility status based on case information that the county is required to act on mid-quarter. Income Reporting Threshold (IRT) The IRT is the level of income that triggers the need for a CalWORKs Assistance Unit (AU) to make a mandatory mid-quarter report of a change in income. When anyone in the AU or anyone who is included in the Family MAP has earned income or begins receiving earned income, the AU must report within 10 days when their combined gross earned and unearned income exceeds this established threshold. The IRT is the greater of 130% of the Federal Poverty Level (FPL) or the level at which an AU becomes financially ineligible. Mandatory Recipient Mid-Quarter Reports Changes that recipients must report within 10 days. Prospective Budgeting Using reasonably anticipated income to determine benefits. QR/PB Implementation Month The month when all cases are converted to prospective budgeting. QR 7 The Quarterly Eligibility Report which replaces the CW 7. QR Reporting Cycle: The quarterly reporting (QR) cycle is comprised of three consecutive months which constitute a QR Payment Quarter. The following terminology is used to describe the months and the quarter of an individual QR cycle: QR Data Month This is the month for which the recipient reports all information on the QR7 necessary to determine eligibility. (The second month of the quarter.) QR Submit Month The month in which the QR7 is submitted by the recipient. (The third month of each quarter). QR Payment Quarter The future quarter in which benefits are paid/issued. The following table illustrates how months are arranged in a QR cycle: 1 st Quarter 2 nd Quarter January February March April May June QR Data Month QR Submit Month QR Payment Quarter Section A Glossary of Terms 5/01/04 (Rev. 3/25/10) A-1

7 AD CW Quarterly Reporting/Prospective Budgeting AD FS Quarterly Reporting/Prospective Budgeting Reasonably Anticipated Income Income is considered reasonably anticipated when: 1. The income has been or will be approved or authorized as of a date within the upcoming QR Payment Quarter, or the household is otherwise reasonably certain that the income will be received within the quarter; and 2. The amount of income is known. Use of Multiplier in Calculating Income The use of the weekly and bi-weekly conversion factors (4.33 for weekly pay or for bi-weekly pay) is used when the frequency of pay remains the same throughout the payment quarter. Voluntary Recipient Mid-Quarter Reports changes that recipients may make to the county during mid-quarter. CWDs may only take action to change benefits based on voluntary midquarter reports when benefits increase as a result of the reported change. Section A Glossary of Terms 5/01/04 (Rev. 3/25/10) A-2

8 AD FS Quarterly Reporting/Prospective Budgeting Quarterly Reporting QUARTERLY REPORTING TABLE OF CONTENTS B. QUARTERLY REPORTING Procedures...B-1 INFORMATION REQUIRED ON THE QR B-1 COMPLETENESS CRITERIA FOR THE QR 7. B-1 TIMELY/LATE QR 7 B-2 INCOMPLETE QR7 BASED ON INFORMATION KNOWN TO THE COUNTY. B-2 LATE QR 7/GOOD CAUSE DETERMINATION GRANTED AND SALDIVAR CHANGE B-3 LATE QR 7/GOOD CAUSE GRANTED INCREASE IN BENEFITS B-4 Section B QR-7 05/01/04 (Rev. 11/10/11) B-i

9 AD FS Quarterly Reporting/Prospective Budgeting QUARTERLY REPORTING (QR7) Santa Barbara County implemented Quarterly Reporting/Prospective Budgeting (QR/PB) on May 1, The reporting requirements for CalWORKs and CalFresh (CF) clients, with the exception of the non-monthly households, changed from monthly to quarterly. QR/PB HH must receive the QR 7 at the end of each QR Data Month and no later than the first day of each QR Submit Month. The recipient will complete a QR 7 once every three months. The QR 7 will provide eligibility and income information used to determine ongoing eligibility and to calculate the grant or allotment amount for the upcoming QR Payment Quarter. PROCEDURES: QR 7 FORM MUST: Be received by the QR/PB household at the end of each QR Data Month and no later than the first day of each QR Submit Month; Be completed by the recipient once every three months; Provide eligibility and income information that will be used to determine ongoing eligibility and to calculate the benefit amount for the upcoming QR Payment Quarter. INFORMATION REQUIRED ON THE QR 7: All income received in the QR Data Month Changes in HH composition or property since the last QR 7 Changes in income the recipient anticipates will occur in the upcoming QR Payment Quarter Any mid-quarter reports must also be reported on the QR 7 COMPLETENESS CRITERIA FOR THE QR 7 For both CW and CF, the QR 7 shall be considered complete if: (Remains unchanged from QR 7 completeness criteria). The form is signed no earlier than the first day of the QR Submit Month Note Exception to above: The first day of the report month falls on a nonpostal delivery day; The QR 7 is mailed by the county for delivery on the last postal delivery day of the submit month; and The recipient signs and dates the QR7 on or before the last day of submit month All questions and items are fully answered and information on the QR 7 together with attached documentation provide sufficient information to allow for the determination of eligibility and/or benefit level; and Required verification is provided. Section B QR-7 5/01/04 (Rev. 8/10/11) B-1

10 AD FS Quarterly Reporting/Prospective Budgeting Voluntary changes reported by the client mid-quarter must be included on the QR 7. If the QR 7 doesn t contain previously voluntarily reported information, the Workers will call the client to clarify. If workers are unable to contact the clients, the case will be put on a Y hold. The attempted phone call must be documented in the case record. If items pertaining to one program s requirements are not completed on the QR 7 submitted for both programs, the QR 7 shall be considered incomplete for that program only. It will be considered complete for the other program. TIMELY/LATE QR 7 Criteria Can not be received earlier than the first day of the submit month Due on the 5th and is considered timely if received by the 11 th Considered late if it is received after the 11th day of the QR Submit Month. Actions To Be Taken X NOA must be sent if not received by 11 th Y NOA must be sent if QR 7 is incomplete Balderas (CW program only) contact will still be required. After the Balderas notice is sent, a personal contact shall be made either by telephone or in a faceto-face meeting. Case comments shall be made on the type of contact. Good cause determination must be made for both CW and CF when recipient reapplies for aid after extended filing date. Both programs will use CW criteria listed in MS Good Cause exists when: The recipient is suffering from a mental or physical condition which prevents timely and complete reporting. The recipient s failure to submit a timely and complete report is directly attributable to county error. The county finds other extenuating circumstances. INCOMPLETE QR7 BASED ON INFORMATION KNOWN TO THE COUNTY: EXAMPLE: Case is in cycle 3 (the quarterly report period is June - August). The EW received information from the CES that their mutual client started work the end of June. CES informed the EW of the hourly rate and number of hours that the client will be working. Client submits her July QR 7 and does not report this information. However, case comments indicate that client started a job in June. Section B QR-7 5/01/04 (Rev. 8/10/11) B-2

11 AD FS Quarterly Reporting/Prospective Budgeting The July QR 7 is incomplete because client failed to list job start and possible earnings received in July. Case will be put on a Y hold. If client fails to provide a completed QR 7, case will be discontinued 8/31. Payment Quarter Payment Quarter June July August Sept. Nov. Dec. $679 CW and $200 CF $679 CW and $200 CF received each month issued for Apr of Payment Quarter only EW recs. Notification from CES that client started job end of June - QR 7 received - client does not report job start; - no income is reported. - put case on Y hold Budget reasonably anticipated income once a complete QR 7 is received $500 CW and $100 CF issued for the remaining months in the Payment Quarter (May & June) NOTE: Refer to CalWIN OLUM for CalWIN entries. LATE QR 7/GOOD CAUSE DETERMINATION GRANTED AND SALDIVAR CHANGE CalFresh will now follow CW steps for processing a late QR 7 and Good Cause Determinations. Both CW and CF will establish an overpayment/overissuance (OP/OI) when a late QR 7 is received or a Good Cause Determination is granted and a 10-day notice cannot be given to reduce their benefits for the upcoming QR Payment Quarter. Late QR 7/Good Cause Granted Decrease In Benefits Reinstate benefits at the level prior to discontinuance - QR Cycle remains unchanged. Decrease benefits in the second month of the QR Payment Quarter or as soon as 10-day notice can be provided. Note: This will result in a mid-quarter decrease of benefits in the QR Payment Quarter based on information reported on the late QR 7. An OP/OI will be established for the benefits the recipient was not entitled to in the first month of the QR Payment Quarter. Section B QR-7 5/01/04 (Rev. 8/10/11) B-3

12 AD FS Quarterly Reporting/Prospective Budgeting LATE QR 7/GOOD CAUSE GRANTED INCREASE IN BENEFITS Issue supplement if benefits cannot be increased by the first day of the first month of the next QR Payment Quarter. Increase benefits for the remaining months of that quarter. The 10-day noticing requirements do not apply to increases in benefits. Example: Payment Quarter is Jan/Feb/Mar. The recipient s grant amount is $679 and CF allotment is $200. The QR 7 is due Mar 5 th. The QR 7 is not received by Mar 11 th, so an X NOA is sent. The recipient submits a complete QR 7 on Mar 29 th. The recipient indicates on the QR 7 that her earnings will increase. The worker determines that the cash grant should be reduced to $500 and CF reduced to $100 per month beginning with the next QR payment Quarter (Apr/May/June). A 10-day NOA cannot be issued to reduce benefits effective Apr 1 st, so April s benefits must be issued at the previous quarter s level. May s and June s benefits will be reduced to the new benefit amount. An O/P and O/I will be established for the month of April s benefits that the recipient was not entitled to receive. Payment Quarter Payment Quarter 01/2005 2/2005 3/2005 4/2005 5/2005 6/2005 $679 CW and $200 CF $679 CW and $200 CF received each month issued for Apr of Payment Quarter only - QR 7 received Mar Reports increase in income. - New benefit amount for next Payment Quarter is $500 CW and $100 FS day NOA cannot be issued. - O/P of $179 and O/I of $100 established for the month of Apr. - Reduce May benefits and send decrease notice $500 CW and $100 CF issued for the remaining months in the Payment Quarter (May & June) Section B QR-7 5/01/04 (Rev. 8/10/11) B-4

13 AD FS Quarterly Reporting/Prospective Budgeting Mid-Quarter Reporting C. MID-QUARTER REPORTING MID-QUARTER REPORTING TABLE OF CONTENTS County-Initiated Actions...C-1 INFORMATION KNOWN TO THE COUNTY...C-1 PROCEDURES...C-2 EXAMPLES...C-3 Mandatory Mid-Quarter Reporting...C-6 MANDATED CHANGES TO REPORT... C-6 ACTIONS ON MANDATORY RECIPIENT MID-QUARTER REPORTS. C-6 DRUG FELONY CONVICTION, FLEEING FELON STATUS, PAROLE/PROBATION VIOLATIONS C-7 Change of Address / MOVE OUT OF COUNTY.C-8 MOVE OUT OF STATE....C-9 INCOME REPORTING THRESHOLD (IRT....C-9 REDUCTION IN ABAWD WORK HOURS OR CALFRESH EMPLOYMENT AND TRAINING PARTICIPATION...C-11 Voluntary Mid-Quarter Reports...C-13 PROCEDURES..C-13 CHANGES IN INCOME. C-13 VOLUNTARY MID-QUARTER CHANGES IN INCOME C14 CHANGES IN AU/HH C-16 REQUEST FOR SPECIAL NEED PAYMENT (CALWORKS ONLY). C-20 CALFRESH DEDUCTION CHANGE C-24 Multiple Changes within a QR Payment Quarter...C-26 PROCEDURES: C-26 EXAMPLES C-27 Third-Party Information/Known to County...C-31 TYPES OF REPORTS...C-31 USE OF THIRD PARTY INFORMATION...C-31 CONFLICTING INFORMATION...C-32 REQUIRED ACTIONS...C-32 EXAMPLES...C-33 Flowchart: Information Received Outside the QR7...C-35 Section C Mid-Quarter Reporting 05/01/04 (Revised 8/10/11) C-i

14 AD FS Quarterly Reporting/Prospective Budgeting Mid-Quarter Reporting COUNTY-INITIATED MID-QUARTER ACTIONS Certain changes in eligibility status will be acted upon at the end of the month in which timely and adequate notice can be provided. County-initiated mid-quarter actions are listed below: Adult reaches the CalWORKs 48-month time limit; A sanction/financial penalty is imposed on individual members of the AU/household; o Sanctions can occur for the following reasons: WTW; Voluntary job quit (CalFresh (CF) Failure to assign support rights; Failure to cooperate in verifying citizenship/alienage status Refusal/failure to furnish a SSN, provide proof of completed application for SSN, provide SSN; Strikers who are not caretaker relatives; o Penalties can occur for the following reasons: Failure to comply with immunization requirements; Failure to comply with school attendance requirements; Failure to comply with child support; Intentional Program Violations WtW teen parent earns a school bonus; Child reaches age limit; Aid has been approved for a child who is currently being aided in another household; Child is placed in Foster Care; California Food Assistance Program (CFAP) status changes; Refugee Cash Assistance (RCA) recipient reaches the eight-month RCA time limit; and When an AU becomes a Family Reunification case INFORMATION KNOWN TO THE COUNTY: In addition to the above county-initiated mid-quarter action, the following action can be taken to decrease benefits with timely notice when the information becomes known to the county: An AU member is deceased An individual is confined in a correctional facility on the first of a month and is expected to remain for a full calendar month or more. Workers shall refer to CalWIN On Line User Manual (OLUM) for CalWIN entries when discontinuing an AU/HH member. Section C Voluntary Mid-Quarter 05/01/04 (Rev. 8/10/11) C-1

15 AD FS Quarterly Reporting/Prospective Budgeting EXAMPLE: AU MEMBER IS DECEASED Client calls to report that her husband passed away on March 16. Client is in Cycle 3. This information is treated as client s request for discontinuance of the previously aided individual. The worker can decrease benefits for April and May with timely and adequate notice. The client is still only required to report changes in AU/HH on the QR7 in which the change occurred. EXAMPLE: INDIVIDUAL IS INCARCERATED AU consists of 4; deprivation based on unemployed parent. Client is in Cycle 1. On March 15 the worker receives information from Welfare Fraud that dad has been incarcerated since March 1 and will be released May 5. Benefits can be decreased to delete dad with timely and adequate notice. PROCEDURES: In addition to the above circumstances, the Worker will also initiate a mid-quarter benefit adjustment when: Submission of a late QR 7 requires that benefits be reduced for the next QR Payment Quarter. o If benefits cannot be decreased due to no 10-day notice, the following actions need to be taken: Benefits for the first month of the QR Payment Quarter must be released at the prior level Reduce benefits effective the first day of the next month in that QR Payment Quarter when 10-day notice of decrease in benefits can be provided Establish O/P & O/I for the first month of the QR Payment Quarter Note: Recoupment of an O/P or O/I, is a county-initiated action and will be taken only at the beginning of a quarter. (See Section H Overpayments/Overissuances) CALWORKS: Benefits will be decreased or discontinued at the end of the month when a 10-day notice can be given for the following changes: o Adult reaches the CalWORKs 48-month time limit o A sanction or financial penalty is imposed o Child reaches the age limit If 10-day notice can not be given, then: Section C Voluntary Mid-Quarter 05/01/04 (Rev. 8/10/11) C-2

16 AD FS Quarterly Reporting/Prospective Budgeting o Release benefits at the prior higher level o Establish an O/P for the month in which benefits could not be decreased in time for the following changes: Adult reaches the CalWORKs 48-month time limit Child reaches the age limit WtW teen program school bonuses can be issued mid-quarter. No 10-day notice is required for increase in benefits Individuals who apply for aid in another AU/HH cannot be approved until the individual has been discontinued from the first AU/HH o 10-day notice is required Child placed in Foster Care o 10-day notice not required but adequate notice is required prior to discontinuing the child from the first AU. CALFRESH Benefits can be reduced mid-quarter when: o Imposing a sanction or penalty as a result of job quit or an IPV conviction California Food Assistance Program (CFAP) status changes are effective on the first of the month following the change and acted on no later than by the end of the current quarter The example below illustrates how to budget county-initiated changes: Example: Child moved from one AU to another AU in the Aug/Sept/Oct quarter (Cycle 2) consists of a mother and her two children, a son and daughter. On Sept. 10, the paternal grandmother applies for CW for her grandson. The Worker verifies the grandmother has care and control of her grandson and has since Sept. 5. The effective dates of change are as follows: Quarter Payment Quarter First AU QR Data Month QR Submit Month Month August September October AU Size 3 (Mother and 2 children) 3 (Mother and 2 children} 2 (Mother and 1 child) Section C Voluntary Mid-Quarter 05/01/04 (Rev. 8/10/11) C-3

17 AD FS Quarterly Reporting/Prospective Budgeting Actions Discontinue son effective Sept. 30 Send notice decreasing aid effective Oct. 1 The grandson will be added to the grandmother s case effective October 1. The examples below contain a series of examples to assist in budgeting county-initiated midquarter changes: EXAMPLE 48-MONTH TIME LIMIT: Mom and her two children are receiving CW cash aid and are in the July/Aug/Sept quarter. Mom will have received 48 months of CW cash aid as of July 31, and must be removed from the AU. Since the Worker is tracking the mother s time-on aid, the Worker initiates action to discontinue the mother effective July 31. This results in a county-initiated mid-quarter decrease in cash aid to the remaining AU members, which is allowable under QR/PB rules. WTW SANCTION: On July 10th, after completing the cause determination and compliance processes for a participant who was found not in compliance with program requirements, the Worker imposes a sanction effective July 31st. Imposing a sanction is considered a county-initiated action; therefore, the result is a midquarter decrease in cash aid to the AU effective August 1st. This decrease is allowable under QR/PB rules for county-initiated mid-quarter actions. EXAMPLE WTW TEEN PARENT SANCTION: Mom, her minor daughter, and the minor's child receive CW benefits. Minor daughter had not yet finished high school, so she is a mandatory WtW teen parent participant. They have a January/February/March quarter. Minor daughter provides a January report card as required that shows unsatisfactory progress. If the WTW compliance process has failed, a WTW sanction shall be imposed by not considering the needs of the teen when calculating the AU s grant. Pregnant and parenting teens 16 or 17 years old: If the teen is not regularly attending school, the school attendance penalty provisions pursuant to MPP Section shall apply. When the teen does not have good cause, the needs of the teen shall not be considered when calculating the AU s grant. The school attendance penalty provisions in MPP Section (g) (QR) Section C Voluntary Mid-Quarter 05/01/04 (Rev. 8/10/11) C-4

18 AD FS Quarterly Reporting/Prospective Budgeting apply for restoring aid when verification of regular school attendance is received by the county. A WTW sanction shall not also be imposed. If the teen is meeting the school attendance requirements but is not making satisfactory progress without good cause and the WTW compliance process has failed, a WTW sanction shall be imposed by not considering the needs of the teen when calculating the AU s grant. Pregnant and parenting teens 18 or 19 years old: If the teen is not making satisfactory progress without good cause and the compliance process has failed, the WTW sanction will be imposed. If the teen is a dependent, his or her needs shall not be considered when calculating the AU s grant. If the teen is the head of household, the non complying teen shall be removed from the AU. WTW TEEN PARENT BONUS: Same example, except minor daughter turns in a January report card showing satisfactory progress and becomes eligible for a $100 school bonus. The Worker initiates the bonus for the month of February. The March CW benefit will return to the quarterly grant level less the bonus. NOTE: Refer to OLUM in CalWIN for CalWIN entries. Section C Voluntary Mid-Quarter 05/01/04 (Rev. 8/10/11) C-5

19 AD FS Quarterly Reporting/Prospective Budgeting MANDATORY MID-QUARTER REPORTS MANDATED CHANGES TO REPORT CALWORKS ONLY: All CW recipients must report the following changes during the quarter: Drug felony convictions; Fleeing felon status; Violation of conditions of probation or parole; and When income exceeds the Income Reporting Threshold (IRT). NOTE: Mid-quarter reports of drug/fleeing felon or parole/probation violation status do not impact NACF households. CF AND CW: Both PACF, NACF and CW recipients must report the following changes during the quarter: Address Changes NACF ONLY: NACF recipients who are required to meet the ABAWD work rule must also report the following change during the quarter: Any reduction in the number of hours worked to less than 20 hours per week or 80 hours per month. Recipients need to report these changes within 10 calendar days of the date the change was known to the household. Changes may be reported in person or by telephone or in writing. Benefits can be adjusted (decreased or discontinued) mid-quarter, at the end of the month after 10-day notice can be given. When there is a combined CW/CF case, and the reported change affects the CW case only, the Worker must also review the CF case to determine if the CF benefits must also be adjusted. Workers must enter case comments on the reported change and the date of the report. ACTIONS ON MANDATORY RECIPIENT MID-QUARTER REPORTS DRUG FELONY CONVICTION, FLEEING FELON STATUS, PAROLE/PROBATION VIOLATIONS CALWORKS Benefits decreased if individual discontinued or if individual is the only aided person the case is discontinued Section C Voluntary Mid-Quarter 05/01/04 (Rev. 8/10/11) C-6

20 AD FS Quarterly Reporting/Prospective Budgeting Benefits decreased or discontinued at the end of the month after 10-day notice can be provided O/P established when 10-day notice cannot be provided and benefits are issued at a higher level than the AU was entitled to receive, regardless if report was timely or not. CALFRESH PACF - benefits decreased if individual discontinued or if individual is the only aided person the case is discontinued Benefits discontinued at the end of the month after 10-day notice can be provided O/I established when benefits are issued at a higher level than the HH was entitled to receive and the change was not reported timely (within 10-days). NACF no action can be taken mid-quarter to decrease or discontinue benefits. Treat as a voluntary mid-quarter change. Example: A 2-Parent CW and PACF household assigned to the Feb/Mar/Apr quarter timely reports within 10 days that the husband was convicted of a drug felony, on Feb. 24. The husband must be discontinued from cash aid at the end of the month in which 10-day notice can be provided. Even though this reported change is not mandatory for CF, the Worker is required to act on this information and discontinue the husband from the PACF case also. The Worker is unable to provide 10-day notice to reduce March benefits, so the husband is discontinued effective Mar. 31 st. There is an O/P for Mar., but there is no O/I because the family reported the change in a timely manner. Since the second parent of a 2 Parent (35 aid code) HH has been discontinued from aid, CalWIN will show aid code as 30 All Other Families aid code. The aid code change is effective the first of the month following discontinuance, which in this case scenario, is April. CalWIN will change the aid code after the parent is discontinued from the case. PAYMENT QUARTER 02/ / / Reported timely on 2/24, husband convicted drug felon - No time for 10-day notice to discontinue husband and reduce March s benefits - Discontinue husband effective March 31 st from CW & CF - CalWIN will change aid code from 35 to 30 aid code effective April 1st - O/P established - No O/I because HH reported timely - April s benefits issued at the reduced benefit amount Section C Voluntary Mid-Quarter 05/01/04 (Rev. 8/10/11) C-7

21 AD FS Quarterly Reporting/Prospective Budgeting SAME SCENARIO AS ABOVE BUT THE HOUSEHOLD DID NOT REPORT TIMELY. - Reported on 2/24, husband convicted of a drug felon effective 2/2 - No time for 10-day notice to discontinue husband and reduce March s benefits - Discontinue husband effective March 31 st from CW & CF - O/P established - O/I established because HH did not report timely - April s benefits issued at the reduced benefit amount REPORT OF CHANGE IN ADDRESS Recipients are required to report changes in AU/Household residence address to the county within 10 days. WHEREABOUTS UNKNOWN (CALWORKS ONLY) When a client s mail is returned to the worker with Moved, whereabouts unknown is stamped on the envelope, client can discontinue mid-quarter. A timely notice must be sent to the client. In a situation where the worker receives information that client has moved, but mail has not been returned, worker must make one attempt to contact client. If all attempts fail, case can be discontinued mid-quarter. A timely notice must be sent to the client. MOVE OUT OF COUNTY o CalWORKs Initiate an electronic Inter-County Transfer (eict) following current procedures (see eict Statewide Procedures AD.) Verify that the entire AU will be moving out of county. If any AU members remain in the county, an eict will not be done. This is called a partial ICT and must be done manually. The Worker will need to confirm if the case also has a CalFresh case. If CalFresh benefits are issued, the CalWORKs ICT must also include the CalFresh ICT. Cash aid will be discontinued in midquarter at the end of the ICT transfer period. o CalFresh Non-assistance CalFresh ICTs became effective 7/1/2011. The entire HH must be moving out of county in order to initiate the ICT. Partial ICTs are not done in the CalFresh program. The HH members who transfer to a different county must apply for CalFresh in the county they are moving to. PACF benefits are discontinued at the same time as the CW case. Section C Voluntary Mid-Quarter 05/01/04 (Rev. 8/10/11) C-8

22 AD FS Quarterly Reporting/Prospective Budgeting Example: A recipient assigned to the Apr/May/June quarter is currently living in County A. On April 5th, the recipient informs County A that she now lives in County B. Due to the CW transfer period, County A will continue benefits to the recipient until May 31st. County B will pick up the CW and PACF case on June 1st. CF benefits will be discontinued in County A on May 31 to coincide with the transfer period of the CW case. Payment Quarter 04/ / / Client reports moving to County B - Initiate eict of CW and PACF. - Discontinue CW and CF midquarter effective May 31, 2011 MOVE OUT OF STATE o CalWORKs Terminate benefits in mid-quarter at the end of the month after 10-day notice can be provided Establish O/P for those months in which aid was continued and the recipient was not entitled to receive cash aid in California and/or inability to provide 10-day notice o CalFresh Change Reporting HH: No notice is required to be sent for termination due to loss of residence when the county determines, based on reliable information that the HH will not be residing in the state. QR HH: The discontinuance, based on reliable information obtained to indicate loss of residency, can take place at the end of an issuance month as soon as adequate notice is provided to the HH. O/I may be established if recipient resided out of state and continued to receive benefits from California INCOME REPORTING THRESHOLD (IRT) (SEE SECTION E) Any member of the AU or Family MAP has earned income, the CW AU is required to report when: Total combined gross monthly income, earned and unearned, of all persons included in the family MAP exceeds the greater of: o 130% of Federal Poverty Level for that family size; or Section C Voluntary Mid-Quarter 05/01/04 (Rev. 8/10/11) C-9

23 AD FS Quarterly Reporting/Prospective Budgeting o Family MAP size becomes financially ineligible Note: Being over the IRT level is not a reason to discontinue a case. An AU over the IRT can only be discontinued if they are no longer financially eligible. When CW is discontinued due to income, CalWIN will automatically set up Transitional CalFresh (TCF) benefits for five (5) months as long as CalFresh benefits were received in the month of discontinuance. The CalWORKs worker will need to ensure TCF is set up correctly and authorize the case. Example: Family of 3 is assigned to the July/Aug/Sept payment quarter. The mother receives $525 in State Disability income. Recipient timely reports on July 23 rd being over the IRT because her husband started a full-time job effective July 15 th. He will work 40 hours a week at $8.50 an hour and will get paid weekly. His monthly income is $ (40/hrs x $8.50/hr = $340/wk x ). The earned gross income plus the disability unearned income totals to $ This amount is over the IRT amount of $1984 for a family of 3. It is also determined that the AU is no longer financial eligible. See calculation below: Monthly Ave SDI $ Less $225 Disregard Subtotal A $ Anticipated Monthly Earned Income $ Less 50% earned income disregard Subtotal B $ Add Subtotal A + B $ MAP of 3 $ Newly Averaged NNI $ (cents rounded down) Financial Ineligibility -0- The case should be discontinued July 31 but it is too late for 10-day notice. Benefits for Aug. must be issued and O/P for Aug. is established. There is no O/I for Aug. because the change was reported timely. If not reported timely, an O/I would be established for Aug. - Timely reports being over the IRT - AU no longer financial eligible for CW. CalWIN will automatically set up TCF if HH received PACF benefits if HH received PACF benefits in PAYMENT QUARTER 07/ /2011 9/ Discontinue CW TCF starts 9/1/11. effective 8/31. CalWIN will automatically set up TCF as long as HH received PACF benefits in the month of discontinuance. Section C Voluntary Mid-Quarter 05/01/04 (Rev. 8/10/11) C-10

24 AD FS Quarterly Reporting/Prospective Budgeting month of discontinuance. - O/P established - No time for 10-day notice, so benefits issued for 8/11. No O/I for CalFresh as change was reported timely. SAME SCENARIO AS ABOVE BUT INFORMATION WAS NOT REPORTED TIMELY - Client reports on QR 7 received 9/6 husband s job that started in 7/09 - Over IRT and financially ineligible for CW & CF - Discontinue CW & CF effective 9/30 - O/P & O/I established for 8/09 & 9/09 SAME SCENARIO AS ABOVE BUT THE INCREASE IN INCOME IS UNEARNED INCOME - Client reports husband has been granted UIB of $675 biweekly - Even though the gross monthly income amount is over the IRT level no action is taken because there is no earned income causing the AU to be over the IRT - $ UIB ($675 x 2.167) +$525 SDI = $ Enter case comments for voluntary change in set control to ensure this information is on the QR 7 - Case will be discontinued 9/30/2011, if income is anticipated to continue for the next quarter REDUCTION IN ABAWD WORK HOURS OR CALFRESH EMPLOYMENT AND TRAINING PARTICIPATION (SEE SECTION D) NACF o Report within 10-days when: Section C Voluntary Mid-Quarter 05/01/04 (Rev. 8/10/11) C-11

25 AD FS Quarterly Reporting/Prospective Budgeting Hours of work drop to below 20 hours per week or 80 hours per month If reported timely and no time for 10-day notice, no O/I established If not reported timely and no time for 10-day notice, O/I is established Section C Voluntary Mid-Quarter 05/01/04 (Rev. 8/10/11) C-12

26 AD FS Quarterly Reporting/Prospective Budgeting VOLUNTARY MID-QUARTER REPORTS When a CalWORKs and/or CalFresh client voluntarily reports mid-quarter a change in income or circumstance which may increase their benefits, the Worker is required to take action on the reported change. Examples of changes that might increase benefits include, but are not limited to the following: When an AU/HH s income decreases, When someone moves into the home, When a CalWORKs AU member becomes pregnant or makes a different request for special need, or When allowable CalFresh deductions increase (CF only). PROCEDURES The Worker will only take mid-quarter action on those voluntary mid-quarter reports, which result in an increase in benefits. Benefits must not be decreased mid-quarter as a result of voluntarily reported changes or changes not required to be reported. The Worker must not take action to initiate a decrease. The decrease must be suppressed and held over for County action until the next quarter when the Worker is determining eligibility and benefit levels for the next quarter using information reported on the next QR 7. CHANGES IN INCOME Voluntarily reported changes in income do not include mandatory reports of income exceeding the Income Reporting Threshold (IRT). Verification requirements When a client voluntarily reports a decrease in income, the Worker must request verification immediately. If the client is unable to provide verification, the Worker must assist the client in obtaining such verification. Action on the reported decrease in income cannot be taken until verification is provided. Section C Voluntary Mid-Quarter 05/01/04 (Rev. 8/10/11) C-13

27 AD FS Quarterly Reporting/Prospective Budgeting Required action Once verification is provided, the Worker must determine the result of the change in income on benefits by completing a budget. The Worker can only take action on those voluntarily reported income changes, which increase benefits. If the voluntarily reported income change results in a decrease or discontinuance of benefits, the Worker must not act on the information in the current quarter. The Worker must send a No Change NOA informing the client the voluntarily reported change in income did not increase their benefits and reminding the client to report the information on their next QR 7. Effective date of change Increase: The effective date of the increase in benefits due to a voluntary report of decreased income is the first of the month the change is reported, not when the change actually occurred. Example: A client assigned the April/May/June quarter loses her job Apr. 15 th. The client calls the Worker on May 5 th and provides verification of her job loss on May 10 th. The Worker determines the decrease in income results in an increase in benefits. The effective date of the change is May 1 st ; the first day of the month the change was reported. Decrease: The effective date of a decrease in benefits due to a voluntary report of an income change is based on when the change is required to be reported on the QR 7. VOLUNTARY MID-QUARTER CHANGES IN INCOME Voluntarily reported changes in income do not include mandatory reports of income exceeding the Income Reporting Threshold (IRT). Required actions and budgeting for IRT reports can be found in the Mandatory Mid-quarter Change section of this chapter. Verification requirements When a client voluntarily reports a decrease in income, the Worker must: Request verification of the change immediately allowing the client 10 days to provide, and Do not take action to increase benefits until the verification is received. If the client fails to provide the verification of decrease in income within 10 days, the Worker will send the client a No Change NOA due to non receipt of verification. If the client subsequently provides the verification, this will be treated as a new report. Voluntary mid-quarter reports of income increases do not require verification. Section C Voluntary Mid-Quarter 05/01/04 (Rev. 8/10/11) C-14

28 AD FS Quarterly Reporting/Prospective Budgeting Required actions income decrease Once verification of the change in income is provided, the Worker must determine the result of the income change on benefits by completing a budget. The Worker can only take action mid-quarter on those voluntarily reported income changes, which increase benefits. Budgeting To determine whether the voluntarily reported income change results in increased benefits mid-quarter, the Worker must recalculate benefits for the current and remaining months of the quarter using the new income the AU reasonably expects to receive. If the AU anticipates income will be different in each of the remaining months of the quarter and knows with reasonable certainty what the amount would be for each month, the Worker will average the new income over the month in which the change is reported and the remaining months in the quarter. If the reported change in income results in an increase in benefits when benefits have been recalculated, the Worker will act to increase the benefits within 10 days of receiving the required verification and provide adequate notice of the increase to the client. Note: If the client also receives CalFresh, the Worker must determine whether the reported income change also changes CalFresh. When recalculating the current quarter s benefits based on reports of decreased or terminated income, the Worker will use actual income for the month of report, and reasonably anticipated income for the remaining month(s) of the quarter. EXAMPLES VOLUNTARY MID-QUARTER CHANGES IN INCOME Example loss of job QR Begin Month Situation: AU of a mother and two children is receiving CW of $94. The CW grant is based on the mother having earned income of $1200 per month. This Cycle 1 case is currently in the Jul/Aug/Sept quarter. On July 5, the mother reports she lost her job the day before. She states she will only receive one paycheck in July for $600, and she anticipates no additional income after that. Action: The Worker immediately requests verification of the job loss, and the client provides it July. 10. The Worker uses the new income to recalculate benefits for July, as well as the remaining months of the current quarter as follows: Section C Voluntary Mid-Quarter 05/01/04 (Rev. 8/10/11) C-15

29 AD FS Quarterly Reporting/Prospective Budgeting 1. Recalculation of Averaged Income: Earned income for July (actual) $ Earned income for Aug (anticipated) 0.00 Earned income for Sept (anticipated) Earned income for quarter $ Re-averaged monthly earned income $600 3 = $ Recalculate CalWORKs using average monthly income amounts: Re-averaged monthly earned income $ $112 income disregard Subtotal = $ % earned income disregard NNI = $ MAP for 3 $ NNI New CalWORKs grant for July, Aug, and Sept = $ Calculate supplement for July: New CalWORKs grant for July $ Previous grant issued for July Supplement for July $ The client is eligible to $594 per month for July, Aug., and Sept. Issue a supplemental payment for July and increase the August and Sept. benefits. CHANGES IN AU/HH Changes in AU/HH include both client voluntary reports of new AU/HH members and AU/HH members leaving the home. Verification requirements When a client voluntarily reports a new AU/HH member, the Worker will follow the normal add person requirements for each program (CW & CF) to add the new member. (See Section D Eligibility Evaluation) The reported new: AU member cannot be added until the SAWS 2 or CW 8 (CW 8A) and all verification necessary to add the person is provided, and HH member cannot be added until all verification necessary to add the person is provided. Section C Voluntary Mid-Quarter 05/01/04 (Rev. 8/10/11) C-16

30 AD FS Quarterly Reporting/Prospective Budgeting Required actions Once the required verification is provided, the Worker must determine the result of the reported change in AU/HH. The Worker can only take action on those voluntarily reported income changes, which increase benefits. If the voluntarily reported AU/HH change results in a decrease or discontinuance of benefits, the Worker must not act on the information in the current quarter. The Worker must send a No Change NOA informing the client the voluntarily reported AU/HH change did not increase their benefits and reminding the client to report the information on their next QR 7. Effective date of change Increase: The effective date of the increase in benefits due to a voluntary report of an AU/HH is the first of the month following the date the change is reported, not when the change actually occurred. Example: A client is assigned the April/May/June quarter. The client calls the Worker on May 5 th and reports her 10-year-old nephew moved in April 30 th. She completes a CW 8 and provides all necessary information to add her nephew on May 14th. The Worker determines the addition of the nephew results in an increase in benefits. The effective date of the change is June 1 st, the first day of the month after the change was reported. Decrease: The effective date of a decrease in benefits due to a voluntary report of an AU/HH change is based on when the change is required to be reported on the QR 7. Example new person causes increase Situation: AU consists of a mother and one child with no income, currently receiving CW of $516 per month. The current quarter is Jul/Aug/Sept (Cycle 1). The mother voluntarily reports on Aug. 10 the father moved into the home that month and has no income. Action: Assuming the father met all eligibility requirements, the Worker would establish eligibility for the father effective Sept. 1. The budget is completed as follows: 1. Recalculate benefits for September: Average monthly disability-based income $ 0.00 $225 income disregard -.00 Subtotal = - $ Average monthly earned income $ 0.00 Remaining $112 income disregard Subtotal = $ % earned income disregard NNI = $ 0.00 Section C Voluntary Mid-Quarter 05/01/04 (Rev. 8/10/11) C-17

31 AD FS Quarterly Reporting/Prospective Budgeting MAP for 3 $ NNI New CalWORKs grant for September = $ Calculate supplement for September: New CalWORKs grant for September $ Previous grant issued for September Supplement for September $ This family is eligible to a supplement of $122 for Sept. Note: If the mother had waited to report the father moving in until the Aug. QR 7 (received in Sept.), the father would be added to CW the first of Oct. (the first of the month following report). Example new person causes decrease Situation: AU consists of a mother and two children with no income currently receiving CW of $638 per month. The current quarter is Aug/Sept/Oct (Cycle 2). The mother voluntarily reports Aug. 10 the father moved into the home that month and receives Unemployment Insurance Benefits (UIB) of $200 biweekly. Action: Assuming the father met all other eligibility requirements, the Case Worker would complete a test budget as follows: 1. Convert UIB into monthly amount: Average monthly UIB $200 x = Complete test budget for September: Disability-based income September (anticipated) $ 0.00 Earned income for September (anticipated) 0.00 Unearned income for September UIB (anticipated) NNI (rounded down) $ MAP for 4 $ NNI CalWORKs grant (test) $ Section C Voluntary Mid-Quarter 05/01/04 (Rev. 8/10/11) C-18