FNS Handbook 310, Quality Control Review

FNS HANDBOOK 310

APPENDIX D

D-1

FNS HANDBOOK 310

D-2

FNS HANDBOOK 310

APPENDIX D
INSTRUCTIONS FOR COMPLETING FORM FNS-245,
QUALITY CONTROL NEGATIVE CASE ACTION REVIEW SCHEDULE
GENERAL INSTRUCTIONS
The Negative Case Action Review Schedule was developed to serve as the data entry
and review form for negative cases. It is to be used to document all negative case
reviews and as a worksheet for documenting the review. The schedule consists of five
sections as follows:
I - Case Management Information
II - Identifying Information
III - Analysis of Review Activity
IV - Description of Variances
V - Explanation of Review Findings

SECTION I - CASE MANAGEMENT INFORMATION

This section provides case management information and client identity.

1.

Case Name - Enter the name of the applicant or recipient whose
participation was denied, suspended or terminated.

2.

Telephone Number - Enter the telephone number of the applicant or
recipient.

3.

Mailing Address - Enter the mailing address of the applicant or recipient.

4.

Actual Address/Directions to Locate - Enter the actual address at which
the applicant or recipient resides if different from the mailing address. Enter
any necessary directions to locate the person’s home.

5.

Date Assigned - Enter the date (month, day, year) the case was assigned to
the QC reviewer.

D-3

FNS HANDBOOK 310

6.

Date Completed - Enter the date (month, day, year) the review was
completed. The reviewer should sign to indicate completion of the review.

7.

Date Cleared - Enter the date (month, day, year) the supervisor cleared the
review. The supervisor should sign to indicate completeness of the work and
clearance to transmit the information into the Food Stamp Quality Control
System.

SECTION II - IDENTIFYING INFORMATION

This section provides identifying information related to the negative case action under
review. For cases that are completed, fill out items A through I as applicable. For
cases that are not subject to review or incomplete, fill out items A through D and E if
appropriate.

ITEM A. Review Number - Enter the number assigned to the negative action
under review.

ITEM B.

Case Number - Enter the case number assigned by the State agency.

ITEM C.

State and Local Agency Code:
x

State Agency Code - In the first two blocks, enter your two-digit
State code. These are the codes used by the National Institute of
Standards and Technology.

x

Local Agency Code - In the last three blocks, enter the same threedigit code that the State agency uses to code local agencies for the
QC review of active cases.

ITEM D. Sample Month and Year - Enter the month and year for which the
negative action was selected for review. The sample month for a negative
action is based upon how the case was selected for review. There are
three types of actions that are being reviewed (denials, terminations and
suspensions). For each of these types of cases, State agencies may sample
by the decision date or the effective date. Each State agency has been
approved by FNS to sample these cases in a consistent way via the
sampling plan. For each type of case, the sampling will be done the same
way, either by decision date or by effective date. State agencies must

D-4

FNS HANDBOOK 310
identify for the reviewer how cases were sampled so that the appropriate
sample month and year are entered here.

ITEM E. Stratum - Enter the two-digit stratum code. Stratum codes are assigned
by the State agency when the sample is stratified and must be entered
here if they are used. If stratum codes are not used by the State, other
identifying information may be entered here at the State’s option.

ITEM F. Decision Date - Enter the date (month, day, year) of the State agency's
decision to deny the application, terminate benefits, or suspend
participation. This can be the date the notice is sent or the computer
input document is completed or processed.

ITEM G. Effective Date - Enter the date (month, day, year) the agency's action to
deny, terminate or suspend became effective. This is the date that the
negative action is effective. For application, this is the date of the
application; for terminations it is the first of the month that the client will
no longer receive food stamp benefits; for suspension, it is the first of the
month that the case is suspended.

ITEM H. Action Type - Indicate the type of action by entering one of the following
codes:
1 - Application Denied
2 - Terminated Case: Enter this code for cases in which the household's
certification was terminated before the end of the certification period.
3 - Suspended Case: Enter this code for cases in which the household’s
participation was suspended.

ITEM I. Case Classification - Enter the appropriate code as follows:
1 – Included in error rate calculation.
2 – Excluded from error rate calculation - processed by SSA worker.
3 – Excluded from error rate calculation, as designated by FNS (e.g. demo
project, simplified FSP).

D-5

FNS HANDBOOK 310

SECTION III - ANALYSIS OF REVIEW ACTIVITY

This section provides the analysis of the review of the action to deny an application,
terminate benefits or suspend the case. For completed cases, fill in items J through N
as appropriate. For cases that are not subject to review or incomplete fill out item N
only.

ITEM J. Notice Requirement - Enter the appropriate code as follows:
1 - Compliance. Eligibility worker complied with the notice requirements
and applicable timeframes, or there was no requirement to issue a
notice.
2 - Non-compliance. Eligibility worker failed to send a required notice to
the applicant/recipient, or did not comply with applicable timeframes.

ITEM K. Recorded Reason for Action - Enter the appropriate code to indicate
the reason for the action as reflected by the case record.
1 - Resident of an institution not authorized by FNS
2 - Outside of project area or State
3 - Ineligible striker
4 - Ineligible non-citizen
5 - Ineligible student
6 - Ineligible boarder
7 - Missed scheduled interview(s)
8 - Failed to provide verification
9 - Refusal to cooperate
10 - Refusal to supply SSN
11 - Gross monthly income exceeds maximum allowance
12 - Net Monthly income exceeds maximum allowance
13 - Exceeds resource standard
14 - Transfer of resources
15 - Failure to comply, without good cause, with work registration/job
search requirements
16 - Voluntary quit
17 - Failure to submit/complete report
18 - Voluntary withdrawal after certification
19 - Termination/denial due to TANF termination/denial
20 - Intentional program violation

D-6

FNS HANDBOOK 310
21 - Termination/denial due to program disqualification
22 - Termination/denial of household of able-bodied adult(s) whose timelimited period of FSP eligibility has expired.
23 - Failure to comply, without good cause, with FSP work requirements.
24 - Eligible for zero benefits
25 - Failure to access EBT benefits
26 - Loss of contact with household
27 - Applicant/household deceased
28 - Not eligible for separate household status
29 - Not eligible due to status as fleeing felon, parole violation, drug
conviction etc.
30 - Reason for denial/termination/suspension not documented
99 - Other
0 - Not applicable (For use with Item M(b) only.)

ITEM L. Validity of Recorded Reason - This item indicates the reviewer's
evaluation of whether the recorded reason for the agency's action was in
accordance with policy and supported by the information in the case record
without regard to the compliance or non-compliance with the notice
requirements.
1 - Valid. Enter this code if the reviewer has determined from information
in the case record that the reason given for the agency's action was
valid. If Code 1 is entered, skip to Item N.
2 - Invalid. Enter this code if the reviewer has determined from
information in the case record that the reason given for the agency's
action was invalid. Also enter Code 2 if the reviewer is unable to
determine from information in the case record whether the initial
reason was valid.

ITEM M. Result of Expanded Review - Go to Item N if an expanded review was
not done. If Item L is Code 2 and an expanded review was done enter the
appropriate code as follows:
1 - Valid based on recorded reason for negative action. The reviewer has
determined from an action beyond the initial review that the recorded
reason given for the agency’s action was correct. Also enter “00” (not
applicable) in Item M(b).
2 - Valid based on reason other than the recorded reason for negative
action. The reviewer has determined from an action beyond the initial
review that the agency’s action was correct for a reason other than that
given by the agency. Also enter the appropriate code in Item M(b) for
the different reason using a code from Item K.

D-7

FNS HANDBOOK 310
3 - Invalid. The reviewer has determined from an action beyond the initial
review that the agency’s action was invalid. Enter “00” (not
applicable) in Item M(b).

ITEM N. Disposition of Review - Enter the appropriate code as follows:
1 - Review completed
2 - Not subject to Review/Listed in Error. Cases that are not subject to
review are defined in Chapter 13 of the FNS Handbook 310. If Code 2 is
entered in this item, no further entries are required on this schedule.
3 – Incomplete/Review Not Processed. Enter this code if the reviewer was
unable to locate the case record or was unable to process the case.
Prior FNS approval is necessary for this code to be used for a review not
processed in time to meet the reporting time frames. If Code 3 is
entered in this item, no further entries are required on this schedule.
4 - Case deselected/correction for oversampling.

D-8

FNS HANDBOOK 310

SECTION IV - DESCRIPTION OF VARIANCES

This section provides for the description of variances identified in the review. Items
O and P must be completed whenever the final determination for Item L is invalid
(Code 2) and item M is not completed or whenever the final determination in item M
is invalid (Code 3). At their option, States may complete items O and P in other
situations.
Items O and P are associated. The reviewer can list up to 3 variances. The first item
listed in the O Element Code is associated with the first item listed in the P Nature
Code. Likewise, O2 is associated with P2 and O3 is associated with P3.

ITEM O. Element - Enter the appropriate element number of the review for each
variance identified.

ITEM P. Nature Codes - Enter the appropriate code for the nature of each
variance.
The following provides the element and nature codes to be used in items O
and P.
These nature codes may be used in any element:
x Nature code (98) - Transcription or computation errors.
x Nature code (99) – Other. Use this nature code in the following
situations:
a) If no specific nature code is listed under an element,
b) If the nature of the error is clearly understood by looking at the
agency/client code recorded for the error, or
c) If none of the listed nature codes under an element apply to the error
being recorded.

D-9

FNS HANDBOOK 310

BASIC PROGRAM REQUIREMENTS – (100)
¾
Element 111 – Student Status
Nature codes:
1 - Eligible person(s) excluded
2 - Ineligible person(s) included

¾
Element 130 - Citizenship and Non-Citizen Status
Nature codes:
1 - Eligible person(s) excluded
2 - Ineligible person(s) included

¾Element 140 - Residency
Nature codes:
98 - Transcription or computation errors
99 - Other

¾Element 150 - Household Composition
Note:
Variances should be coded under this Element if a person or persons are
unreported or incorrectly reported, unprocessed or incorrectly processed, and
these persons also have income, resources or deductible expenses that must be
considered in the error determination.
For example: the discovery of an unprocessed 62 year old with earned income, a
bank account, and medical expenses would be recorded under Element 150, not
Elements 211, 311, and 365.
Variances should not be coded under this Element for persons with characteristics
that are specifically addressed under other 100 Series Elements.

D - 10

FNS HANDBOOK 310
For example: the discovery of an eligible non-citizen in the household who was
improperly excluded would be coded under Element 130, not under Element 150.
Nature codes:
6 - Entitled to separate status
7 - Eligible person(s) with no income, resources, or deductible expenses
excluded
8 - Eligible person(s) with income excluded
9 - Eligible person(s) with resources excluded
10 - Eligible person(s) with deductible expenses excluded
11 - New born infant improperly excluded

¾
Element 151 - Recipient Disqualification
Nature codes:
2 - Ineligible person(s) included
18 - Eligible person(s) disqualified

¾Element 160 – Employment & Training Programs
Nature codes:
18 - Eligible person(s) disqualified

¾
Element 161 - Time-limited Participation
Nature code:
18 - Eligible person(s) disqualified

¾
Element 162 - Work Registration Requirements
Nature codes:
1 - Eligible person(s) excluded
2 - Ineligible person(s) included

D - 11

FNS HANDBOOK 310

¾
Element 163 - Voluntary Quit/Reduced Work Effort
Nature codes:
16 - Head of household did not voluntarily quit
17 - Voluntary quit of non-head of household

¾
Element 164 - Workfare and Comparable Workfare
Nature codes:
18 - Eligible person(s) disqualified

¾
Element 165 - Employment Status/Job Availability
Nature codes:
18 - Eligible person(s) disqualified

¾
Element 166 – Acceptance of Employment
Nature codes:
18 - Eligible person(s) disqualified

¾
Element 170 – Social Security Number
Nature codes:
18 - Eligible person(s) disqualified
20 - Good cause for failure/refusal
21 - Social Security Numbers provided

D - 12

FNS HANDBOOK 310

RESOURCES - (200)

Liquid Resources
¾Element 211 - Bank Accounts or Cash on Hand
Nature codes:
24 - Resource should have been excluded
¾Element 212 - Nonrecurring Lump-sum Payment
Nature codes:
24 - Resource should have been excluded

¾
Element 213 - Other Liquid Assets
Nature codes:
24 - Resource should have been excluded

Non-Liquid Resources
¾
Element 221 - Real Property
Nature codes:
24 - Resource should have been excluded
27 - Used for self-employment
28 - Fair market value incorrect
29 - Equity value incorrect
¾Element 222 - Vehicles
Nature codes:
24 - Resource should have been excluded
27 - Used for self-employment
D - 13

FNS HANDBOOK 310
28 - Fair market value incorrect
29 - Equity value incorrect

¾
Element 224 - Other Non-Liquid Resources
Nature codes:
24 - Resource should have been excluded
27 - Used for self-employment
28 - Fair market value incorrect
29 - Equity value incorrect

¾
Element 225 - Combined Resources
Nature codes:
22 - Did not transfer resources
23 - Did not exceed limit
25 - Incorrectly applied resources of non-citizen sponsor
26 - Included resources of a non-household member
30 – Does not exceed prescribed limit
31 - Incorrect limit applied

D - 14

FNS HANDBOOK 310

INCOME (300)
Earned Income
¾Element 311 - Wages and Salaries
Nature codes:
32 - Failed to consider or incorrectly considered income of an ineligible
member
33 - Rounding used/not used or incorrectly applied
34 - Income from known/processed source included that should not have been
35 - Household unemployed
36 - Conversion to monthly amount not used or incorrectly applied
37 - Averaging not used or incorrectly applied
38 - MRRB household not temporarily over the limit
39 - Employment status changed from unemployed to employed
41 - Change only in amount of earnings
42 - Failed to consider/anticipate month with extra pay date
¾Element 312 - Self-Employment
Nature codes:
32 - Failed to consider or incorrectly considered income of an ineligible
member
33 - Rounding used/not used or incorrectly applied
34 - Income from known/processed source included that should not have been
35 - Household unemployed
36 - Conversion to monthly amount not used or incorrectly applied
37 - Averaging not used or incorrectly applied
38 - MRRB household not temporarily over the limit
39 - Employment status changed from unemployed to employed
41 - Change only in amount of earnings
42 - Failed to consider/anticipate month with extra pay date

¾
Element 313 - Other Earned Income
Nature codes:
32 - Failed to consider or incorrectly considered income of an ineligible
member
D - 15

FNS HANDBOOK 310
33 - Rounding used/not used or incorrectly applied
34 - Income from known/processed source included that should not have been
35 - Household unemployed
36 - Conversion to monthly amount not used or incorrectly applied
37 - Averaging not used or incorrectly applied
38 - MRRB household not temporarily over the limit
41 - Change only in amount of earnings

Deductions
¾Element 321 - Earned Income Deductions
Nature codes:
43 - Deduction that should have been included was not

¾
Element 323 - Dependent Care Deduction
Nature codes:
43 - Deduction that should have been included was not

Unearned Income
¾Element 331 - RSDI Benefits
Nature codes:
34 - Income from known/processed source included that should not have been
¾Element 332 - Veterans Benefits
Nature codes:
34 - Income from known/processed source included that should not have been
¾Element 333 - SSI and/or State SSI Supplement
Nature codes:
34 - Income from known/processed source included that should not have been

D - 16

FNS HANDBOOK 310
¾Element 334 - Unemployment Compensation
Nature codes:
34 - Income from known/processed source included that should not have been
¾Element 335 - Worker’s Compensation
Nature codes:
34 - Income from known/processed source included that should not have been
¾Element 336 - Other Government Benefits
Nature codes:
34 - Income from known/processed source included that should not have been
¾Element 342 - Contributions
Errors in Child Support Payments should not be recorded in this Element. See
Element 350.
Nature codes:
34 - Income from known/processed source included that should not have been
¾Element 343 - Deemed Income
Nature codes:
34 - Income from known/processed source included that should not have been

¾
Element 344 - TANF, PA, or GA
Nature codes:
34 - Income from known/processed source included that should not have been
¾Element 345 - Educational Grants/Scholarships/Loans
Nature codes:
34 - Income from known/processed source included that should not have been
D - 17

FNS HANDBOOK 310
¾Element 346 - Other Unearned Income
Nature codes:
34 - Income from known/processed source included that should not have been
¾Element 350 - Child Support Payments Received from Absent Parent
Nature codes:
34 - Income from known/processed source included that should not have been
111 - Child support payment(s) not considered or incorrectly applied for initial
month(s)of eligibility
112 - Retained child support payment(s) not considered or incorrectly applied
127 - Pass through not considered or incorrectly applied

Other Deductions
¾Element 361 - Standard Deduction
Nature codes:
43 - Deduction that should have been included was not
¾Element 363 - Shelter Deduction
Nature codes:
43 - Deduction that should have been included was not
51 - Incorrect amount used resulting from a change in residence
53 - Incorrectly prorated
¾Element 364 - Standard Utility Allowance
Nature codes:
43 - Deduction that should have been included was not
50 - Incorrect standard used (Not as a result of a change in household size or
move)
51 - Incorrect amount used resulting from a change in residence
52 - Incorrect standard used resulting from a change in household size
53 - Incorrectly prorated
D - 18

FNS HANDBOOK 310
¾Element 365 - Medical Deductions
Nature codes:
43 - Deduction that should have been included was not
¾Element 366 - Child Support Payment Deduction
Nature codes:
43 - Deduction that should have been included was not
¾Element 371 - Combined Gross Income
Nature codes:
30 – Does not exceed prescribed limit
31 – Incorrect limit applied
¾Element 372 - Combined Net Income
Nature codes:
30 – Does not exceed prescribed limit
31 - Incorrect limit applied

Other
¾Element 412 – Budgeting System
Nature codes:
63 – Deductions excluded that should not have been
64 - Household improperly participating under retrospective budgeting
65 - Household improperly participating under prospective budgeting
¾Element 413 - Application
Nature code:
66 – Improper denial within 30-day period for missing interview(s)

D - 19

FNS HANDBOOK 310
¾Element 414 – Joint TANF/FS Processing and Reporting
Nature codes:
67 - Improper termination/denial/suspension when TANF was
terminated/denied
68 - Benefits improperly terminated due to non-submission of monthly report
¾Element 415 - Verification
Nature code:
69 - Improper denial prior to end of timeframe for providing verification
80 - No application or case record information to support
denial/termination/suspension
¾Element 416 – Action Type
Nature codes:
70 - Improper denial or termination when the case should have been suspended
71 - Improper suspension when the case should have been denied or terminated
72 - Improper termination or suspension for failure to meet reporting
requirement

¾Element 511 - Other
Nature code:
99 - This code is to be used in situations not covered by the other existing
element codes.
¾Element 520 - Arithmetic Computation
Nature codes:
61 - Benefit/allotment/eligibility incorrectly computed
62 - Incorrect use of allotment tables

¾Element 530 – Transitional Benefits
D - 20

FNS HANDBOOK 310

Nature codes:
75 - Eligible for transitional benefits

RESERVED (FOR FEDERAL USE ONLY)
There is one line of spaces reserved for future federal use.

OPTIONAL (FOR STATE SYSTEMS ONLY)
There is one line of spaces available for the State to code information for which they
wish to capture additional data.

D - 21