QC - SNAP Case and Procedural Case Action Review Schedule

FNS Handbook 310
United States
Department of
Agriculture
Food and
Nutrition
Service
Alexandria, VA

Supplemental
Nutrition
Assistance
Program

Quality
Control
Review
Handbook

October 2011
This version of the FNS 310 Handbook
incorporates updates through QC Policy
Memo 12-01

FNS HANDBOOK 310

Table of Contents
Chapter 1

Introduction

100
110
120
130

General .....................................................................
Purpose .....................................................................
Objectives .................................................................
Definitions .................................................................
Active case .................................................................
AORD ........................................................................
Budget month ..............................................................
Case record ................................................................
Categorical eligibility.....................................................
Certification action .......................................................
Change ......................................................................
Change reporting ..........................................................
Collateral Contact ........................................................
Documentation ............................................................
Error ........................................................................
Error Determinant Month ................................................
Initial Month ...............................................................
Interim Change ............................................................
Issuance month ............................................................
Monthly reporting .........................................................
Negative case ..............................................................
Overissuance ...............................................................
Processing month .........................................................
Prospective budgeting ....................................................
Prospective eligibility ....................................................
Public assistance (PA) ...................................................
Quality control review ...................................................
Quarterly reporting .......................................................
Recertification ............................................................
Retrospective budgeting .................................................
Retrospective eligibility ..................................................
Review date ................................................................
Sample month .............................................................
Semiannual reporting .....................................................
Status reporting ..........................................................
Underissuance .............................................................
Universe ....................................................................
Variance ....................................................................
Verification ................................................................
140 Handbook Modification ...................................................
150 Administration of the QC System .......................................
151 Implementation of QC Indexed Policy Memoranda .............
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152 Contracted Activity ................................................. 1-8
153 Staffing Standards ................................................... 1-8
154 Avoiding Bias ......................................................... 1-8
160 QC Universe ............................................................... 1-12
170 Error Analysis ............................................................. 1-12
180 Forms and Reporting .................................................... 1-12
181 Active Cases ......................................................... 1-12
181.1 Form FNS-380 ................................................ 1-12
181.2 Form FNS-380-1 ............................................. 1-12
182 Negative Cases ........................................................... 1-13
190 Disposition Timeframes ................................................. 1-13

Chapter 2

Basic Review Process

200 General ..................................................................... 2-1
210 Review Steps .............................................................. 2-1
211 Determine the Correct Systems ................................... 2-1
212 Review the Certification Record .................................. 2-1
213 Conduct a Field Review ............................................ 2-1
214 Determine Which Variances to Include .......................... 2-1
215 Determine the Correct Amount of Benefits ..................... 2-2
216 Determine the Cause of Errors .................................... 2-2
217 Report................................................................. 2-2
220 Certification and Reporting Systems ................................... 2-2
221 Eligibility ............................................................. 2-2
222 Budgeting ............................................................. 2-3
222.1 Prospective .................................................. 2-3
222.2 Retrospective ................................................ 2-3
223 Reporting ............................................................. 2-4
223.1 Change Reporting/Prospectively Budgeted ($100 Change
in Earned Income Reporting) ............................. 2-4
223.2 Change Reporting/Prospectively Budgeted (With Status
Reporting) ................................................... 2-5
223.3 Monthly Reporting .......................................... 2-5
223.4 Quarterly Reporting ......................................... 2-5
223.5 Semi-Annual Reporting ...................................... 2-6
223.6 Transitional Benefits ........................................ 2-6
230 QC Review Focus .......................................................... 2-6
231 Certification Errors ................................................. 2-6
232 Allotment Amount .................................................. 2-7
232.1 Actions to ignore .......................................... 2-7
232.2 Non-Compliance with Other Means-Tested Programs 2-8
233 Review Date ................................................................ 2-9

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Chapter 3

Case Record Review

300 General ...................................................................... 3-1
310 Purpose of Case Record Reviews ........................................ 3-1
320 Procedures for Case Record Reviews ................................... 3-1
321 Household Issuance Record ......................................... 3-1
321.1 On-line EBT.................................................... 3-1
321.2 Smart-Card EBT............................................... 3-2
322 Certification Case Record(s)........................................ 3-2
322.1 Household Circumstances and Certification Actions ... 3-2
322.2 Documented Verification ................................... 3-2
323 Completion of Form FNS-380 ....................................... 3-2
323.1 Face Sheet..................................................... 3-2
323.2 Column 2 of the Worksheet................................. 3-3
323.3 Computation Sheet........................................... 3-5
324 Ineligible Households ................................................ 3-5
330 Cases Not Subject to Review ............................................. 3-5
331 Oversampling.......................................................... 3-5
332 Cases Listed in Error ................................................. 3-5
333 Disaster Cases ......................................................... 3-6
334 Cases Pending a Hearing ............................................ 3-6
335 Intentional Program Violation Cases .............................. 3-6
336 All Household Members Have Died................................. 3-7
337 Household Moved Out of State ..................................... 3-7
338 Unable to Interview .................................................. 3-7

Chapter 4

Field Reviews

400 General ...................................................................... 4-1
410 Purpose ...................................................................... 4-1
411 Alaska Cases............................................................ 4-1
412 Limitations on Information Sought ................................. 4-1
413 Completion of Form FNS-380, Column 3 of the Worksheet ...... 4-2
414 Planning the Field Review ............................................ 4-2
415 Arranging for Verification............................................. 4-2
420 Household Interview ....................................................... 4-2
421 Arranging Household Interview ...................................... 4-3
422 Individuals Who Can Be Interviewed ................................ 4-3
423 Location of Interview.................................................. 4-4
424 Conducting the Interview ............................................. 4-5
424.1 Opening the Interview ........................................ 4-5
424.2 Dealing With Household Fears During the Interview ..... 4-5
424.3 Observation During the Interview ........................... 4-5
424.4 Establishing Household Composition........................ 4-5
424.5 Reviewer Inquiries ............................................. 4-6
424.6 Recording Household Statements ........................... 4-6
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424.7 Verification ..................................................... 4-6
430 Collateral Contacts ........................................................ 4-7
431 Obtaining Information From Collateral Contacts ................. 4-7
432 Collateral Contact Refusal To Cooperate .......................... 4-8
433 Documentary Verification ............................................ 4-8
440 Completion of Field Reviews ............................................. 4-8
441 Cases Determined Ineligible.......................................... 4-8
442 Incomplete Case........................................................ 4-8
442.1 Case Record or Household Cannot Be Found .............. 4-9
442.2 Household Refusal and Failure To Cooperate ........... 4-10
442.3 Likely Conclusion ............................................ 4-14
442.4 Late Reviews.................................................. 4-15

Chapter 5

Verification and Documentation

500 General ...................................................................... 5-1
510 Verification.................................................................. 5-1
511 Sources of Verification .............................................. 5-1
512 Use of the Income and Eligibility Verification System (IEVS)
Data..................................................................... 5-1
513 Evaluating Evidence.................................................. 5-2
514 Positive and Negative Allegations ................................. 5-3
515 Guidance for Particular Elements ................................. 5-3
520 Documentation ............................................................. 5-3
521 Documentation With Attachments................................. 5-4
522 Documentation by Recording a Document ....................... 5-4
523 Documentation of Verbal Statement by a Collateral
Contact................................................................. 5-5
524 Verification and Documentation of Negative Allegations ...... 5-5
525 Verification and Documentation in Automated Certification
Systems ................................................................ 5-6

Chapter 6

Error Determination Process

600 Purpose ...................................................................... 6-1
610 The Eligibility Test ......................................................... 6-1
620 The Allotment Test ........................................................ 6-1
621 Comparison I .......................................................... 6-2
622 Comparison II.......................................................... 6-2

Chapter 7

Review Procedures Relative
to Certification Systems and Changes

700 General ...................................................................... 7-1
710 Verification Time Periods ................................................. 7-2

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711 Prospective Systems ....................................................... 7-2
711.1 Eligibility ..................................................... 7-2
711.2 Benefit Level ................................................ 7-2
712 Retrospective Systems .............................................. 7-2
712.1 Eligibility ..................................................... 7-2
712.2 Benefits ...................................................... 7-2
712.3 New Members After the Budget Month .................. 7-2
713 Exceptions ............................................................ 7-3
713.1 Prorated Income and Averaged and Prorated Deductions . 7-3
713.2 Variances..................................................... 7-3
713.3 Categorical Eligibility ...................................... 7-3
713.4 Transitional Benefits ....................................... 7-3
720 Review Procedures Relative to Reporting Requirements ............ 7-3
721 Changes Relative to Appropriate Month .......................... 7-4
722 Change Reporting – $100 Change in Earned Income/Status
Reporting .............................................................. 7-4
722.1 Changes Prior to the Notice of Eligibility for Initial
Certifications ......................................................... 7-5
722.2 Unreported Changes........................................ 7-5
722.3 Reported Changes .......................................... 7-6
722.4 New Members ............................................... 7-7
722.5 Incorrect Action ............................................. 7-8
722.6 Notices of Expiration ....................................... 7-8
723 Monthly Reporting ................................................... 7-8
723.1 One-Month System Where the Element Was Subject
to Monthly Reporting ....................................... 7-8
723.2 Two-Month System Where the Element Was Subject
to Monthly Reporting ..................................... 7-10
724 Reviewing Prospectively Budgeted Elements/Sources in
an Otherwise Retrospectively Budgeted Case ................. 7-11
724.1 Adding New Members Prospectively to a Retrospectively
Budgeted Household ..................................... 7-12
725 Quarterly Reporting ............................................... 7-13
726 Semiannual Reporting ............................................. 7-13
726.1 Variance Determination ................................. 7-14
726.2 Special Circumstances. Reported Changes After the
Initial Authorization of Semiannual Reporting Benefits .. 7-19
726.3 Special Circumstances ................................... 7-21
727 Transitional Benefits .............................................. 7-22
727.1 Determining Eligibility for Transitional Benefits .... 7-22
727.2 Changes After the Initial Authorization of
Transitional Benefits ..................................... 7-22
727.3 Variance Determination ................................. 7-24
730 Beginning Months......................................................... 7-25
731 Verification Time Periods ........................................ 7-26
732 Changes.............................................................. 7-26
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732.1 Elements Subject to the Change Reporting
Requirements .............................................. 7-26
732.2 Elements Subject to the Monthly Reporting
Requirements .............................................. 7-26
740 Mass Changes ............................................................. 7-27
741 General .............................................................. 7-27
741.1 Regulatory Changes ...................................... 7-27
741.2 Periodic SNAP Adjustments ............................. 7-27
741.3 PA Changes ................................................ 7-27
741.4 Social Security and Other Federal Mass Changes .... 7-28
750 Other Included and Excluded Variances .............................. 7-28
751 Missing Reports ..................................................... 7-28
752 Expired Certification Periods .................................... 7-29
753 Expedited Service .................................................. 7-29
754 Information From a Federal Source ............................. 7-29
755 SAVE .................................................................. 7-30
756 Application of New Regulations ................................. 7-30
757 Federal Written Policy ............................................ 7-30

Chapter 8

Non-Financial Eligibility Criteria

800 General ...................................................................... 8-1
810 Age and School Attendance .............................................. 8-1
811 Age - 110 .............................................................. 8-1
812 School Enrollment ................................................... 8-2
812.1 Student Status - 111 ......................................... 8-2
812.2 Standard Verification ....................................... 8-2
820 Citizenship and Non-Citizen Status - 130 ............................... 8-2
821 U.S. Citizenship (By Birth or Naturalization) .................... 8-2
822 Non-Citizen Status ................................................... 8-3
822.1 Reviewer Contact With INS ................................ 8-5
822.2 Variances ..................................................... 8-5
823 Reports Concerning Illegal Non-citizens .......................... 8-6
830 Residency - 140 ............................................................ 8-6
831 Standard Verification................................................ 8-6
832 Resident of Institution .............................................. 8-7
840 Household Composition and Living Arrangement - 150 .............. 8-7
841 Categorically Eligible Households ................................. 8-8
842 Method of Verifying Household Composition .................... 8-8
842.1 Household Statement About Membership............... 8-8
842.2 Inquiry to Household About Other Members ........... 8-9
842.3 Inquiry to Collateral Contacts About Household Members . 8-10
842.4 Resolving Inconsistencies in Information About Household Composition 8-11
842.5 Actions To Resolve Inconsistencies .................... 8-12
843 Residents of Certain Institutions ................................ 8-12
844 Error Determination ............................................... 8-12
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844.1 Household Consolidation/Movement .................. 8-12
844.2 Duplicate Participation By All/Some Members of the Same Household 8-15
844.3 Transfer/Movement of Individuals Into, Out of, and
Between SNAP Households .............................. 8-15
845 New Members Added to a Retrospectively Budgeted
Household - Two-Month System ................................. 8-16
846 Separated Households ............................................. 8-18
847 Recipient Disqualification - 151 ................................. 8-18
848 Ineligibility Due to Drug Related Conviction, and Fleeing
Felon Status......................................................... 8-19
850 Work Requirements as a Condition of Participation ................ 8-20
850.1 Work Registration - 162 ......................................... 8-20
850.2 Employment and Training - 160 ............................... 8-21
850.3 Acceptance of Employment - 166 ............................. 8-23
850.4 Employment Status/Job Availability - 165 ................... 8-24
850.5 Voluntary Quit/Reducing Work Effort - 163 ................. 8-25
850.6 Workfare and Comparable Workfare - 164 .................. 8-26
850.7 Time Limited Participation - 161 .............................. 8-28
860 Social Security Numbers - 170 ......................................... 8-30
860.1 Verification ....................................................... 8-30
860.2 Variances .......................................................... 8-31
870 Disabled Individuals...................................................... 8-32
870.1 Verification ....................................................... 8-33
870.2 Variances .......................................................... 8-33

Chapter 9

Resources

900 Verification Standards for Resources ................................... 9-1
910 General Requirements .................................................... 9-1
911 Purpose of Verification of Resources ............................. 9-1
912 Eligibility Standards ................................................. 9-1
913 Categorical Eligibility ............................................... 9-1
914 Combined Resources - 225 ......................................... 9-2
915 Acceptable Case Record Verification ............................. 9-2
916 Transfer of Resources ............................................... 9-2
920 Nonexempt Resources ..................................................... 9-3
930 Exempt Resources.......................................................... 9-3
931 Resources of Non-Household Members ........................... 9-3
932 Resources of Non-Citizen Sponsors ................................ 9-3
933 Resources Jointly Owned With Non-Household Members ...... 9-3
934 Resources Which Are Accessible to the Household But
Not Owned by the Household ...................................... 9-3
940 Bank Accounts or Cash on Hand - 211 .................................. 9-3
941 Inquiry About Debits to Accounts ................................. 9-4
942 Inquiry About Declared Liquid Resources ........................ 9-4
943 Verification of Declared Liquid Resources ....................... 9-5
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950
960
970
980
990

943.1 Cash ............................................................ 9-5
943.2 Other Liquid Resources ..................................... 9-5
943.3 Conditions Affecting Further Verification ............... 9-5
Nonrecurring Lump-Sum Payments - 212 ............................... 9-5
Other Liquid Assets ........................................................ 9-6
Real Property ............................................................... 9-6
971 When Property Is Acknowledged .................................. 9-6
972 When No Property Is Acknowledged .............................. 9-6
Vehicles - 222 ............................................................... 9-7
Other Non-Liquid Resources - 224 ....................................... 9-8

Chapter 10

Income

1000 General .................................................................. 10-1
1010 Verification and Variance Determination Procedures ............ 10-1
1011 Verification ..................................................... 10-1
1012 Variance Determination ...................................... 10-1
1013 Terminology .................................................... 10-1
1013.1 Annualized income .................................. 10-1
1013.2 Anticipated Income ................................. 10-1
1013.3 Averaged Income .................................... 10-2
1013.4 Conversion ............................................ 10-2
1013.5 Fluctuating income .................................. 10-2
1013.6 Prorated income ..................................... 10-2
1013.7 Stable income ........................................ 10-2
1020 Verification requirements - earned income ....................... 10-2
1020.1Credit check for verification of earned income .......... 10-2
1021 Wages and Salaries - 311 ..................................... 10-2
1021.1 Positive Allegation .................................. 10-3
1021.2 Negative Allegation ................................. 10-3
1021.3 Verification ........................................... 10-3
1022 Self-Employment - 312 ........................................ 10-4
1022.1 Positive Allegation .................................. 10-4
1022.2 Negative Allegation ................................. 10-5
1023 Other Earned Income - 314................................... 10-5
1023.1 Positive Allegation .................................. 10-5
1023.2 Negative Allegation ................................. 10-5
1030 Verification Standards for Unearned Government Benefits ..... 10-5
1031 Retirement Survivors' and Disability Insurance (RSDI) Benefits - 331 10-6
1032 Veterans' Benefits - 332 ...................................... 10-6
1032.1 Positive Allegation .................................. 10-6
1032.2 Negative Allegation ................................. 10-6
1033 Supplemental Security Income (SSI) - 333 ................. 10-6
1034 Unemployment Compensation - 334 ........................ 10-6
1034.1 Positive Allegation .................................. 10-6
1034.2 Negative Allegation ................................. 10-6
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1040

1050
1060

1070

1035 Worker's Compensation - 335 ................................ 10-7
1035.1 Positive Allegation .................................. 10-7
1035.2 Negative Allegation ................................. 10-7
1036 Other Government Benefits - 336 ........................... 10-7
1036.1 Positive Allegation .................................. 10-7
1036.2 Negative Allegation ................................. 10-7
Verification Standards for Other Unearned Income .............. 10-7
1041 Contributions/Income-In-Kind - 342 ........................ 10-7
1041.1 Alimony Payments ................................... 10-7
1041.2 Income-In-Kind ....................................... 10-9
1042 Deemed Income - 343 ......................................... 10-9
1043 PA or GA - 344 .................................................. 10-9
1044 Educational Grants, Scholarships, and Loans - 345 ...... 10-9
1044.1 Positive Allegation ................................. 10-10
1044.2 Negative Allegation ................................ 10-10
1045 Other Unearned Income - 346 .............................. 10-10
1045.1 Foster Care Payments.............................. 10-10
1045.2 Dividends and Interest ............................. 10-10
1045.3 Rental Income ....................................... 10-11
1045.4 Pensions and Union Benefits ...................... 10-11
1046 TANF - 347 ..................................................... 10-11
Child Support Payments Received From Absent Parents - 350 10-11
Variance Determinations ............................................ 10-12
1061 Eligibility ....................................................... 10-13
1061.1 Prospective Eligibility .............................. 10-13
1061.2 Retrospective Eligibility ........................... 10-13
1061.3 Categorical Eligibility .............................. 10-13
1062 Unearned Income ............................................. 10-14
1063 Prospectively Budgeted Earned Income - $100 Change
Reporting ....................................................... 10-15
1063.1 First and Second Effective Months of a Certification
Action ................................................ 10-17
1063.2 Third Effective Month or Later Following a
Certification, Recertification, or Interim Change .. 10-20
1063.3 Unreported/Unprocessed Sources of Earned
Income ............................................... 10-24
1064 Prospectively Budgeted Earned Income – Status
Reporting ....................................................... 10-25
1065 Annualized and Prorated Income ........................... 10-26
1065.1 Self-Employment ................................... 10-26
1065.2 Contract Income .................................... 10-27
1065.3 Educational Income ................................ 10-28
1066 Household With More than One Type of Income ......... 10-28
Income From Ineligible Household Members ..................... 10-31
1070.1Income That Must Be Counted Entirely ................... 10-31
1070.2Income That Must Be Counted On A Prorated Basis ..... 10-32

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1080 Non-Compliance with Other Program Rules ...................... 10-32
1081 Desk Review ................................................... 10-32
1082 Field Review ................................................... 10-32
1083 Verification .................................................... 10-33
1084 Identification of Variances .................................. 10-33
1085 Treatment of Variances...................................... 10-33
1086 Other Deficiencies ............................................ 10-34

Chapter 11

Deductions

1100 Deductions .............................................................. 11-1
1110 Review of Deductions ................................................. 11-1
1111 Deductions as Billed ........................................... 11-1
1112 Expenses Paid by Excluded Vendor Payment .............. 11-2
1113 Deductions Disallowed at Certification or Recertification . 11-3
1114 Special Treatment of Variances ............................. 11-5
1120 Earned income deduction - 321...................................... 11-5
1120.1Documentation ................................................. 11-5
1120.2Verification ..................................................... 11-6
1130 Dependent Care Deduction - 323 .................................... 11-6
1130.1Deductible Expenses .......................................... 11-6
1130.2Documentation ................................................. 11-6
1130.3Standard Verification ......................................... 11-7
1130.4Special Treatment of Variances ............................. 11-7
1140 Standard Deduction - 361 ............................................. 11-8
1140.1Documentation ................................................. 11-8
1140.2Verification ..................................................... 11-8
1150 Shelter Deduction - 363 ............................................... 11-9
1150.1Calculation of Shelter Deduction............................ 11-9
1151 Rent or Mortgage .............................................. 11-9
1151.1Documentation ......................................... 11-9
1151.2Standard Verification ................................ 11-10
1152 Property Taxes ................................................ 11-10
1152.1Documentation ........................................ 11-10
1152.2Standard Verification ................................ 11-10
1153 Property Insurance ........................................... 11-10
1153.1Documentation ........................................ 11-11
1153.2Standard Verification ................................ 11-11
1154 Unoccupied Home ............................................ 11-11
1154.1Documentation ........................................ 11-12
1154.2Standard Verification ................................ 11-12
1155 Repairing a Damaged Home ................................. 11-12
1155.1Documentation ........................................ 11-12
1155.2Standard Verification ................................ 11-12
1156 Utilities (Other Than the Standard Utility Allowance) .. 11-13
1156.1Documentation ........................................ 11-13
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1156.2Standard Verification ................................ 11-13
1157 Homeless Shelter Deduction ................................ 11-14
1157.1Documentation ........................................ 11-14
1157.2Standard Verification ................................ 11-14
1157.3Verification ............................................ 11-14
1160 Standard Utility Allowance - 364 ................................... 11-15
1160.1Documentation ................................................ 11-16
1160.2Standard Verification ........................................ 11-17
1160.3Verification .................................................... 11-17
1160.4Prorated SUA .................................................. 11-18
1161 Special Treatment of Variances ............................ 11-18
1161.1 Expenses Not Reported at Certification/
Recertification ....................................... 11-18
1161.2 Change Reporting and Unreported Changes
Subsequent to Certification/Recertification ... 11-19
1161.3 Expenses Reported at Any Time and Not
Correctly Processed ................................ 11-20
1161.4 Monthly Reporting and Actual Expenses ........ 11-20
1170 Medical Deduction - 365 ............................................. 11-21
1170.1Deductible Expenses ......................................... 11-21
1170.2Documentation ................................................ 11-23
1170.3Standard Verification ........................................ 11-23
1170.4Calculation of Medical Expenses ........................... 11-23
1170.5Special Treatment of Variances ............................ 11-24
1180 Child Support Payment Deduction - 366 .......................... 11-29
1180.1Documentation ................................................ 11-29
1180.2Verification .................................................... 11-29
1180.3Calculation of the Child Support Deductions ............. 11-31

Chapter 12

Making the Review Decision

1200 General .................................................................. 12-1
1210 The Computation Sheet ............................................... 12-1
1211 Column (1) ..................................................... 12-1
1212 Column (2) ..................................................... 12-1
1213 Columns (3), (4), and (5) .................................... 12-3
1220 Computing the Amount Issued in Error ............................. 12-3
1230 The Review Schedule .................................................. 12-4
1231 Coding Review Findings - Item 8 ............................ 12-4
1232 Amount of Error - Item 10 .................................... 12-4
1233 Coding the Dollar Amount Associated With Variances –Item 16.... 12-5
1233.1Mandatory Use ......................................... 12-5
1233.2Optional Use ............................................ 12-5
1240 Transmission of Active Case Findings to FNS, Data Checking and
Changing Case Findings .............................................. 12-11

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Chapter 13
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Negative Case Action Reviews

Introduction ............................................................. 13-1
Purpose and Scope of the Negative Action Case Review ........ 13-1
Negative Definitions ................................................... 13-1
Disposition of Action Reviews ........................................ 13-2
1331 Actions Subject to Review.................................... 13-2
1332 Actions Not Subject to Review .............................. 13-3
1333 Incomplete Cases .............................................. 13-6
Application Processing Aspects of the Negative Review ......... 13-6
Conducting Negative Action Reviews ............................... 13-8
1350.1 Step 1: Determine Subject to Review Status ............ 13-9
1350.2 Step 2: Review of Action Sampled ........................ 13-9
1350.3 Step 3: Collateral and/or Household Contact (Optional) . 13-10
1350.4 Step 4: Documentation and Reporting of Review Findings 13-11
1350.5 Flowchart of Steps 1-4 of the Negative Review........ 13-13
Acceptable Documentation .......................................... 13-14
Transmission of Negative Case Findings to FNS, Data Checking, and
Changing Case Findings .............................................. 13-17

Chapter 14

Informal Resolution and Arbitration

1400 Informal Resolution and Arbitration ................................ 14-1
1410 Informal Resolution .................................................... 14-1
1420 Arbitration .............................................................. 14-1
1421 Documentation ................................................. 14-2
1422 Usual Timeframe for Requesting Arbitration .............. 14-3
1423 Unusual Timeframe for Requesting Arbitration ........... 14-5
1430 SNAP Quality Control Arbitration .................................... 14-5
1431 General ........................................................... 14-5
1432 Quality Control Arbitrator .................................... 14-5
1433 Quality Control Arbitration Procedures .................... 14-5
1440 Handling Case Findings ................................................ 14-6

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Appendices

Appendix A
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Reserved………………………… ....................................................... A-1

Appendix B
Form FNS-380, Worksheet for SNAP Quality
Control Reviews
Form FNS-380, the Worksheet for SNAP Quality Control Reviews ....... B-1
Facesheet ................................................................. B-1
Element 110 though 140 ............................................... B-2
Element 150 though 163 ............................................... B-3
Element 164 through 211 .............................................. B-4
Element 212 through 222 ............................................... B-5
Element 224 through 225 ............................................... B-6
Element 311 through 312 ............................................... B-7
Element 314 through 323 ............................................... B-8
Element 331 through 334 ............................................... B-9
Element 335 through 343 ............................................. B-10
Element 344 through 350 ............................................. B-11
Element 361 through 364 ............................................. B-12
Element 365 through 372 ............................................. B-13
Element 520 through 820 ............................................. B-14
Computation Sheet ................................................... B-15
Self-Employment Addendum of the Computation Sheet ........ B-17
Instructions for Completing Form FNS-380 ................................. B-18
GENERAL ................................................................. B-18
FACESHEET – PAGE 1 (FNS-380) ...................................... B-18
SECTION A – IDENTIFYING INFORMATION ........................... B-18
1. Agency ........................................................ B-18
2. Case Name ................................................... B-18
3. Address ....................................................... B-18
4. Telephone Number ......................................... B-18
5. Directions to Locate ........................................ B-19
6. Case Number ................................................ B-19
7. Review Number ............................................ B-19

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8. Review Date/Month ........................................... B-19
9. Reserved ......................................................... B-19
10. Most Recent Action: Date and Type......................... B-19
11. Certification .................................................... B-19
12. Participated During Sample .................................. B-19
13. Received Expedited Service .................................. B-19
14. Categorically Eligible Household ............................ B-19
15. Reviewer ........................................................ B-19
16. Date Assigned .................................................. B-20
17. Date of Case Readings ........................................ B-20
18. Date of Personal Interview ................................... B-20
19. Date Completed ................................................ B-20
20. Supervisor ....................................................... B-20
21. Date Cleared ................................................... B-20
SECTION B – PERSONS LIVING IN THE HOME ......................... B-20
Name ................................................................... B-20
Birth Date ............................................................ B-20
Age .................................................................... B-20
Relationship or Significance ....................................... B-20
Social Security ....................................................... B-21
Recipient ............................................................. B-21
SECTION C – SIGNIFICANT PERSONS NOT LIVING IN THE HOME ... B-21
Name .................................................................. B-21
Relationship or Significance ....................................... B-21
Social Security Number ............................................. B-21
Address ............................................................... B-21
Phone Number ....................................................... B-22
Financial Support .................................................... B-22
SECTION D - REVIEW FINDINGS ......................................... B-22
WORKSHEET NARRATIVE- PAGES 2 THROUGH 14 (FNS-380) .. B-23
GENERAL INSTRUCTIONS ............................................ B-23
COLUMN 1, ELEMENTS OF ELIGIBILITY AND BASIS OF ISSUANCE .. B-23
COLUMN 2, QC ANALYSIS OF CASE RECORD .......................... B-23
COLUMN 3, FINDINGS OF FIELD INVESTIGATION ..................... B-23
COLUMN 4, RESULTS ..................................................... B-24
COMPUTATION SHEETS – PAGES 15 THROUGH 17 (FNS-380) .. B-25
General Instructions .................................................... B-25
COLUMN 1, ELIGIBILITY WORKER ...................................... B-25
COLUMN 2, FINAL SAQC DETERMINATION ............................ B-25
COLUMNS 3, 4, 5 ......................................................... B-25
The Food Stamp Quality Control Automated FNS-380,
User’s Manual .................................................................. B-26
Table of Contents ....................................................... B-27

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Appendix C
Form FNS-380-1, The Quality Control
Review Schedule
Form FNS-380-1, the Quality Control Review Schedule .................. C-1
Section 1 Review Summary ............................................. C-1
Section 2 – Detailed Error Findings .................................... C-1
Section 3 – Household Characteristics ................................. C-2
Section 4 – Information on Each Household Member ................ C-3
Section 5 – Income Identified by Household Member ............... C-4
Section 6 – Reserved Coding ............................................ C-4
Section 7 - Optional For State Use ..................................... C-4
Instructions for Completing Form FNS-380-1 ............................... C-5
GENERAL INFORMATION ....................................................... C-5
Dates ....................................................................... C-5
Dollar Amounts ........................................................... C-5
Not Applicable ............................................................ C-5
Unknown ................................................................... C-5
Stratum ..................................................................... C-6
Local Agency Code ....................................................... C-6
FIPS Codes ............................................................. C-6
QUALITY CONTROL REVIEW SCHEDULE ...................................... C-6
SECTION 1 - REVIEW SUMMARY ........................................ C-6
1. QC Review Number .............................................. C-6
2. Case Number ...................................................... C-6
3. State code ......................................................... C-6
State Codes - National Institute of Standards and
Technology ............................................................ C-7
4. Local Agency Code ............................................... C-8
5. Sample Month and Year .......................................... C-8
6. Stratum ............................................................. C-8
7. Disposition ......................................................... C-8
8. Review Findings ................................................... C-8
9. FS Allotment Under Review ..................................... C-8
10. Error Amount ...................................................... C-8
11. Case Classification ............................................... C-9
SECTION 2 – DETAILED ERROR FINDINGS ............................... C-9
12. Element ........................................................... C-9
13. Nature codes ..................................................... C-9
BASIC PROGRAM REQUIREMENTS – (100) .................... C-10
Element 111 - Student Status ............................ C-10
Element 130 - Citizenship and Non-Citizen Status.... C-10
Element 140 – Residency ................................. C-10
Element 150 - Household Composition ................. C-10
Element 151 - Recipient Disqualification .............. C-11
Element 160 – Employment & Training Programs...... C-11
Element 161 – Time-limited Participation ............. C-11
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Element 162 – Work Registration Requirements ...... C-12
Element 163 – Voluntary Quit/Reduced Work Effort .. C-12
Element 164 – Workfare and Comparable Workfare .. C-12
Element 165 – Employment Status/Job Availability ... C-12
Element 166 – Acceptance of Employment ............. C-12
Element 170 – Social Security Number .................. C-12
RESOURCES - (200) ............................................... C-13
Liquid Resources ............................................ C-13
Element 211 – Bank Accounts or Cash on Hand .... C-13
Element 212 – Nonrecurring Lump-sum Payment .. C-13
Element 213 – Other Liquid Assets................... C-13
Non-Liquid Resources ...................................... C-13
Element 221 – Real Property ......................... C-13
Element 222 – Vehicles ................................ C-14
Element 224 – Other Non-Liquid Resources ........ C-14
Element 225 – Combined Resources ................. C-14
INCOME (300) ..................................................... C-14
Earned Income .............................................. C-14
Element 311 – Wages and Salaries ................... C-14
Element 312 – Self-Employment ..................... C-15
Element 314 – Other Earned Income ................ C-15
Deductions .................................................. C-15
Element 321 – Earned Income Deductions .......... C-15
Element 323 – Dependent Care Deduction ......... C-16
Unearned Income........................................... C-16
Element 331 – RSDI Benefits .......................... C-16
Element 332 – Veterans Benefits ..................... C-16
Element 333 – SSI and/or State SSI Supplement .. C-16
Element 334 – Unemployment Compensation ..... C-17
Element 335 – Worker’s Compensation ............. C-17
Element 336 – Other Government Benefits ........ C-17
Element 342 – Contributions ........................ C-17
Element 343 – Deemed Income ...................... C-18
Element 344 – TANF, PA, or GA ..................... C-18
Element 345 – Educational
Grants/Scholarships/Loans .......................... C-18
Element 346 – Other Unearned Income ............. C-19
Element 350 – Child Support Payments
Received from Absent Parent ........................ C-19
Element 361 – Standard Deduction .................. C-19
Element 363 - Shelter Deduction .................... C-20
Element 364 - Standard Utility Allowance .......... C-20
Element 365 - Medical Deductions ................... C-20
Element 366 - Child Support Payment
Deduction ............................................... C-20
Element 371 - Combined Gross Income ............. C-20

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Element 372 - Combined Net Income ............... C-21
OTHER - (500 and 800) .......................................... C-21
Element 520 - Arithmetic Computation ............. C-21
Element 530 – Transitional Benefits ................. C-21
Element 560 - Reporting Systems .................... C-21
Element 810 - Food Stamp Simplification
Project ................................................... C-22
Element 820 - Demonstration Projects ............. C-22
14. Cause ............................................................. C-23
15. Error Finding .................................................... C-24
16. Error Amount ................................................... C-25
17. Discovery ........................................................ C-25
18. Verified.......................................................... C-25
19. Occurrence ..................................................... C-26
a. Date ......................................................... C-26
b. Time Period ................................................ C-26
SECTION 3 - HOUSEHOLD CHARACTERISTICS ......................... C-26
20. Most Recent Certification Action ............................. C-26
21. Type of Action .................................................. C-26
Certification .................................................... C-26
Recertification .................................................. C-27
22. Length of Certification Period ................................ C-27
23. Allotment Adjustment ........................................ C-27
24. Amount of Allotment Adjustment ........................... C-27
25. Number of Household Members .............................. C-27
26. Receipt of Expedited Service .................................. C-28
27. Authorized Representative Used at Application ........... C-28
28. Categorical Eligibility Status ................................. C-28
29. Reporting Requirement ....................................... C-28
Resources .............................................................. C-29
30. Liquid Assets ..................................................... C-29
31. Real Property (Excluding Home) ............................. C-29
32(a). Vehicle......................................................... C-29
32(b). Status 2nd Vehicle ........................................... C-29
33. Countable Vehicle Assets ...................................... C-30
34. Other Non-liquid Assets ........................................ C-30
Income.................................................................. C-30
35. Gross Countable Income ........................................ C-30
36. Net Countable Income .......................................... C-30
Deductions ............................................................. C-30
37. Earned Income ................................................... C-30
38. Medical ............................................................ C-30
39. Dependent Care ................................................. C-30
40. Child Support .................................................... C-31
41. Shelter ............................................................ C-31
42. Homeless ......................................................... C-31

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Additional Information on Shelter Costs ........................... C-31
43. Rent/Mortgage ................................................... C-31
44. Use of SUA ........................................................ C-31
a. Usage ......................................................... C-31
LIHEAA ........................................................ C-31
Higher Standard ............................................. C-31
Lower Standard .............................................. C-31
b. Proration ..................................................... C-32
45. Utilities (SUA or Actual) ........................................ C-32
SECTION 4 – INFORMATION ON EACH HOUSEHOLD
MEMBER ................................................................... C-32
46. Person Number .................................................. C-33
47. Food Stamp Program Participation........................... C-33
48. Relationship to Head of Household .......................... C-34
49. Age ................................................................ C-34
50. Sex ................................................................ C-34
51. Race .............................................................. C-34
52. Citizenship Status .............................................. C-36
53. Educational Level............................................... C-37
54. Employment ..................................................... C-37
First box: Status ................................................ C-38
Second box: Hours Worked ................................... C-38
55. Food Stamp Program Work Registration..................... C-38
56. Food Stamp Program (FSP) Employment and
Training (E&T) Program Status..................................... C-38
57. ABAWD Status ................................................... C-39
58. Dependent Care Cost .......................................... C-39
SECTION 5 – INCOME IDENTIFIED BY HOUSEHOLD MEMBER ......... C-39
59. Person Number .................................................. C-39
Source 1 ............................................................... C-39
60. Income Type ..................................................... C-39
Earned Income (Not Subsidized) ............................. C-40
Subsidized Earned Income .................................... C-40
Unearned Income ............................................... C-40
61. Amount ........................................................... C-40
Source 2 ............................................................... C-40
62. Income Type ..................................................... C-40
63. Amount .......................................................... C-40
Source 3 ............................................................... C-41
64. Income Type ..................................................... C-41
65. Amount ........................................................... C-41
Source 4 ............................................................... C-41
66. Income Type ..................................................... C-41
67. Amount ........................................................... C-41
SECTION 6 - RESERVED CODING ........................................ C-41

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68. Timeliness of Application Processing (Expedited and 30 Day
Requirement ........................................................ C-41
69. – 76. Reserved .............................................. C-42
SECTION 7 – OPTIONAL FOR STATE USE ............................. C-42

Appendix D Form FNS-245, Quality Control SNAP Negative Case
*
Action Review Schedule
Form FNS-245, SNAP Quality Control Negative Case Action Review
Schedule ........................................................................... D-1
INSTRUCTIONS FOR COMPLETING FORM FNS-245, SUPPLEMENTAL NUTRITION
ASSISTANCE PROGRAM (SNAP) QUALITY CONTROL NEGATIVE CASE ACTION
REVIEW SCHEDULE .............................................................. D-3
GENERAL INSTRUCTIONS ........................................................D-3
SECTION I - CASE MANAGEMENT INFORMATION ........................D-3
1. Case Name ......................................................... D-3
2. Telephone Number ...............................................D-3
3. Mailing Address ....................................................D-3
4. Actual Address/Directions to Locate ..........................D-3
5. Date Assigned......................................................D-3
6. Date Complete/Disposed of .....................................D-3
7. Date Cleared.......................................................D-4
SECTION II - IDENTIFYING INFORMATION ...............................D-4
ITEM A. Review Number .............................................D-4
ITEM B. Case Number ................................................D-4
ITEM C. State and Local Agency Code: ............................D-4
State Agency Code ................................................D-4
Local Agency Code ................................................D-4
ITEM D. Sample Month and Year....................................D-4
ITEM E. Stratum .......................................................D-4
ITEM F. Notice Date ..................................................D-4
ITEM G. Action Date ..................................................D-4
ITEM H. Action Type ..................................................D-5
ITEM I. Case Classification..........................................D-5
SECTION III - ANALYSIS OF REVIEW ACTIVITY ..........................D-5
ITEM J. Notice Requirements .......................................D-5
ITEM K. Recorded Reason for Action ..............................D-6
ITEM L. Finding .......................................................D-7
ITEM M. Household Notice ...........................................D-7
ITEM N. Disposition of Review ......................................D-9
SECTION IV - DESCRIPTION OF VARIANCES .............................D-9
ITEM O. Element ......................................................D-9
ITEM P. Nature Codes ................................................D-9
BASIC PROGRAM REQUIREMENTS – (100) .............................. D-10
Element 111 – Student Status ...................................... D-10
Element 130 - Citizenship and Non-Citizen Status.............. D-10
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Element 140 - Residency............................................ D-11
Element 150 - Household Composition ........................... D-11
Element 151 - Recipient Disqualification ........................ D-11
Element 160 – Employment & Training Programs ............... D-12
Element 161 - Time-limited Participation ....................... D-12
Element 162 - Work Registration Requirements ................ D-12
Element 163 - Voluntary Quit/Reduced Work Effort ........... D-13
Element 164 - Workfare and Comparable Workfare ............ D-13
Element 165 - Employment Status/Job Availability ............ D-13
Element 166 – Acceptance of Employment ...................... D-13
Element 170 – Social Security Number ........................... D-13
RESOURCES - (200) ....................................................... D-14
Liquid Resources ......................................................... D-14
Element 211 - Bank Accounts or Cash on Hand ................. D-14
Element 212 - Nonrecurring Lump-sum Payment ............... D-14
Element 213 - Other Liquid Assets ................................ D-14
Non-Liquid Resources.................................................... D-14
Element 221 - Real Property ....................................... D-14
Element 222 - Vehicles .............................................. D-15
Element 224 - Other Non-Liquid Resources ...................... D-15
Element 225 - Combined Resources............................... D-15
INCOME (300) ............................................................. D-16
Earned Income ............................................................ D-16
Element 311 - Wages and Salaries ................................ D-16
Element 312 - Self-Employment ................................... D-16
Element 313 - Other Earned Income .............................. D-17
Deductions ................................................................ D-17
Element 321 - Earned Income Deductions ....................... D-17
Element 323 - Dependent Care Deduction ....................... D-17
Unearned Income ........................................................ D-18
Element 331 - RSDI Benefits ........................................ D-18
Element 332 - Veterans Benefits .................................. D-18
Element 333 - SSI and/or State SSI Supplement ................ D-18
Element 334 - Unemployment Compensation ................... D-18
Element 335 - Worker’s Compensation ........................... D-19
Element 336 - Other Government Benefits ...................... D-19
Element 342 - Contributions ....................................... D-19
Element 343 - Deemed Income .................................... D-19
Element 344 - TANF, PA, or GA .................................... D-20
Element 345 – Educational Grants/Scholarships/Loans ........ D-20
Element 346 - Other Unearned Income .......................... D-20
Element 350 - Child Support Payments Received
from Absent Parent ................................ D-20
Other Deductions ........................................................ D-21
Element 361 - Standard Deduction ................................ D-21
Element 363 - Shelter Deduction .................................. D-21
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Element 364 - Standard Utility Allowance ....................... D-21
Element 365 - Medical Deductions ................................ D-21
Element 366 - Child Support Payment Deduction .............. D-22
Element 371 - Combined Gross Income .......................... D-22
Element 372 - Combined Net Income ............................. D-22
Other ....................................................................... D-22
Element 412 – Budgeting System .................................. D-22
Element 413 - Application .......................................... D-23
Element 414 – Joint TANF/FS Processing and Reporting ....... D-23
Element 415 - Verification ......................................... D-23
Element 416 – Action Type ......................................... D-24
Element 511 - Other ................................................. D-24
Element 520 - Arithmetic Computation .......................... D-24
Element 530 – Transitional Benefits .............................. D-25
Element 540 – Notices ............................................... D-25
RESERVED ........................................................................ D-25
Item Q – Accuracy of Recorded Reason ........................... D-25
Item R – Accuracy of Reason on Notice to Household .......... D-25
Item S – Collateral and/or Household Contact .................. D-26
Item T – Action Initiated By ........................................ D-26
Item U – NSTR Reason ............................................... D-27
OPTIONAL (FOR STATE SYSTEMS ONLY) ..................................... D-27
SECTION V - EXPLANATION OF REVIEW FINDINGS ......................... D-28

Appendix E
Interviewing Guide for SNAP
Quality Control
Interviewing Guide for SNAP Quality Control ................................ E-1
The Nature of Interviewing .................................................... E-1
General Rules for Effective Interviews ...................................... E-1
Introducing One’s Self .......................................................... E-2
Creating Rapport ................................................................ E-3
Encouraging Discussion ......................................................... E-4
Take the initiative ...................................................... E-4
Provide support .......................................................... E-4
Don’t be afraid of silence .............................................. E-4
Use neutral questions .................................................. E-5
Repeat the question .................................................... E-5
Restate .................................................................... E-5
Summarize ............................................................... E-5
Asking Questions ................................................................. E-5
Formulating the Question .............................................. E-6
Avoiding Pitfalls ......................................................... E-6
Listening .......................................................................... E-7
Non-Verbal Communication .................................................... E-7
Note-Taking ...................................................................... E-8
Closing the Interview ........................................................... E-8
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CHAPTER 1
INTRODUCTION
100

GENERAL. This Handbook provides procedures for conducting

quality control (QC) reviews of food stamp cases. The first chapter contains
general provisions and definitions.

110

PURPOSE. Each State agency is responsible for conducting QC

reviews as part of its Performance Reporting System. For QC reviews, a
statistical sample of households shall be selected from households which are
participating in the Food Stamp Program (active cases) and households for
which participation was denied, suspended, or terminated (negative cases).
Reviews shall be conducted on active cases to determine if households are
eligible and receiving the correct coupon allotments. Reviews of negative
cases shall be conducted to determine whether the decision to deny, to
suspend, or to terminate the household was correct.
Reviews measure the validity of food stamp cases at a given time (the review
date).
The State agency shall review cases against the Food Stamp Program standards
established in the Food Stamp Act and regulations taking into account any FNS
approved waivers that have been implemented or State options to deviate from
specific provisions. (States must routinely address QC procedures in
certification waiver requests. If the waiver will result in a need to deviate
from the procedures in this Handbook, the State agency must identify the
regulation citation and Handbook section, describe what the new QC procedure
will be, and request approval of that procedure with the certification waiver
request.)

120

OBJECTIVES. The objectives of QC reviews are to provide:
A systematic method of measuring the validity of the food stamp
caseload;
A basis for determining error rates;
A timely, continuous flow of information on which to base
corrective action at all levels of administration; and

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A basis for establishing State agency eligibility for bonus awards
or State agency liability for excessive error rates.

130

DEFINITIONS.

Active case means a household that was certified prior to or during the sample
month and issued food stamp benefits for the sample month.
This includes households certified for benefits in the sample
month and issued benefits in the next month.
However, a household that was issued the sample month's
benefits based on an expired ATP is not an active case.
“Issued an allotment” means that the coupons were mailed and
not returned by the Postal Service or that an ATP was cashed.
This applies to the original ATP or a replacement ATP. In
addition, a household did not participate if coupons are held for
the household at a local certification office and the household
does not take possession of the coupons. This does not apply to
allotments subjected to recoupment. A household that had all or
part of its allotment recouped to repay a prior food stamp
overissuance is an active case, even if it did not cash an ATP. In
addition, a household that voluntarily returned its coupons is an
active case.
In an “on-line” Electronic Benefit Transfer (EBT) system,
issued an allotment means that benefits have been posted
electronically to the household's account database. In a “Smart
Card” EBT system the benefit information is resident on the card
and issued an allotment means that the card has been presented
for update for the sample month. See Section 321 for details
regarding participation in EBT systems.
AORD means as of the review date.
Budget month means the fiscal or calendar month from which a household's
income and other circumstances are used to calculate the food stamp
allotment for the corresponding issuance month.

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In a one-month retrospective budgeting system, the budget
month begins a month before the first day of the issuance
month.
In a two-month system, the budget month begins two months
prior to the first day of the issuance month.
In a prospective budgeting system the issuance month and budget
month are the same.
Case record means the records establishing a household's eligibility or
ineligibility and, in active cases, authorizing the issuance of a food stamp
allotment.
Included under this definition are records referred to as the case
file or certification record.
The case record is usually maintained by and located in the local
certification office, but may extend to data processing units and
include information maintained in computer files.
Categorical eligibility means that households in which all members receive or
are authorized to receive
Public assistance (PA),
Supplemental Security Income (SSI),
A State or local general assistance (GA) program, or
Benefits of a State program conferring categorical eligibility
Unless the entire household is institutionalized or the household or a member
has been disqualified from receiving food stamps because of an intentional
program violation, failure to comply with a work-related requirement or
failure to submit a monthly report.
The eligibility factors which are deemed are
The resource, gross and net income limits,
Sponsored non-citizen information and

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Residency.
In addition, Social Security numbers need not be verified for PA and SSI
recipients. Social Security numbers need to be verified for GA households.
Certification action means the action taken on a case prior to or on the review
date that authorized the sample month's issuance. This includes initial
certifications, recertifications, interim changes, changes prior to issuance and
authorizations of supplemental issuances.
Change means an event that results in a difference between the household's
circumstances AORD and its circumstances at the time of certification or
recertification. Changes include all events that either the household or the
agency becomes aware of regardless of whether the event is reported and/or
properly acted upon.
Change reporting means that the household is required to report certain
specified changes in its circumstances within 10 days of the date the change
becomes known to the household.
Collateral Contact means a source of information which can be used to verify
household circumstances. Collateral contacts are generally individuals such as
landlords and employers, but they may also be documents such as those
maintained in government offices.
A collateral contact cannot be a person who was in the food stamp household
under review, or a person or office within the State agency administering the
program for purposes of primary or secondary evidence.
Documentation means a written or printed statement on paper or a copy of a
document furnishing information. Verification of household circumstances
must be documented. Examples of documentation appear in Section 520.
Error for active cases results when a determination is made by a quality
control reviewer that a household which received food stamp benefits during
the sample month is ineligible or received an incorrect allotment.
Thus, errors in active cases involve dollar loss to either the
participant or the government.
For negative cases, an "error" means that the reviewer
determines that the decision to deny, suspend, or terminate a
household was incorrect.

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Error Determinant Month is the first full month that ends more than 30 days
before the review date.
Initial Month means the first month for which the household was certified for
participation following any period when the household was not certified. For
an initial month, benefits are prorated from the day of application to the end
of the month.
However, for migrant and seasonal farmworker households, the initial month is
the first month following a period of more than 30 days in which the household
was not certified.
Interim Change means a recalculation of food stamp benefits resulting from a
change reported by the household; or a change the State agency becomes
aware of through a source other than the household with the exception of nonincome related mass changes.
Income related mass changes include, but are not limited to, SSA
and SSI COLAs and across the board adjustments to Temporary
Assistance to Needy Families (TANF).
Non-income related mass changes include, but are not limited
to, adjustments to SUA’s and caps on dependent care
deductions.
Issuance month is the fiscal or calendar month for which the State agency
issued a food stamp allotment. A case's issuance month will always be the same
as its QC sample month.
Monthly reporting means that a household is required to submit a report
following each budget month that is used to determine benefits for the
corresponding issuance month.
Negative case means a household whose application for food stamp benefits
was denied or whose food stamp benefits were suspended or terminated by an
action in the sample month or by an action effective for the sample month.
Overissuance means the amount the allotment of food stamp benefits
authorized to a household exceeded the allotment it was eligible to receive.
Processing month means the month between the budget month and the
issuance month in a two-month retrospective budgeting system.

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Prospective budgeting means the computation of a household's food stamp
benefits for an issuance month is based on income and other circumstances
reasonably anticipated for that month.
Prospective eligibility means the eligibility determination is based on income
and other household circumstances reasonably anticipated for the issuance
month.
Public assistance (PA) means any of the following programs authorized by the
Social Security Act of 1935, as amended:
Old-age assistance,
TANF,
Aid to the blind,
Aid to the permanently and totally disabled, and
Aid to aged, blind, or disabled.
It does not include Supplemental Security Income.
Quality control review means a review of a statistically valid sample of active
and negative cases to determine the extent to which households are receiving
the food stamp allotments to which they are entitled, and to determine the
extent to which decisions to deny, suspend, or terminate cases are correct.
Quarterly reporting means that a household is required to submit a report
once a quarter following a budget month that is used to determine benefits for
the following three issuance months.
Recertification means a certification action taken to authorize benefits for an
additional period of time immediately following the expiring certification
period.
Retrospective budgeting means that the computation of a household's food
stamp benefits for the issuance month is based on actual income and
deductions during the retrospective budget month with some exceptions.

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There are special provisions for (A) annualizing self-employment income, (B)
prorating educational monies and most contract income, and (C) averaging
some deductions.
Retrospective eligibility means the eligibility determination is based on
income and other circumstances, which existed in the retrospective budget
month.
Review date for quality control active cases means a day within the sample
month, either the first day of the fiscal or calendar month or the day a
certification action was taken to authorize the issuance, whichever is later.
The "review date" for negative cases, depending on the characteristics of
individual State systems, could be the date on which the eligibility worker
makes the decision to suspend, deny, or terminate the case, the date on which
the decision is entered into the computer system, the date of the notice to the
client, or the date the negative action becomes effective.
For no case is the “review date” the day the quality control review is
conducted.
Sample month means the month of the sample frame from which a case is
selected. For active cases, sample month is synonymous with issuance month.
Semi-annual reporting means that a household is required to submit a report
at a 6 month interval which is used to determine benefits for the month
following the report. Under this limited reporting, besides submitting the
periodic report, households are only required to report changes which cause
the household’s gross income to exceed 130% of the poverty income guidelines
for household size.
Status reporting means that a household is required to report a change in the
wage rate or salary or a change in full-time or part-time employment status.
Underissuance means the amount the allotment to which the household was
entitled exceeded the allotment authorized.
Universe means all units from which information is desired.
Variance means the incorrect application of policy and/or a deviation between
the information that was used and the information that should have been used
to authorize the sample month's issuance.
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Verification means establishment of the accuracy of specific elements of
eligibility and allotment by securing documentary evidence and/or by making
collateral contacts with individuals, other than members of the household
under review. Households under review can provide verification for some
elements.

140

HANDBOOK MODIFICATION. This Handbook is designed for use

by all State agencies. It provides review procedures for various combinations
of eligibility, budgeting and reporting systems that are needed because of State
differences resulting from the selection of options. Consequently, there are
sections that do not pertain to certain States because of FNS-approved waivers
and options and sections that need to be modified to fit particular
circumstances in a State.
Some certification waivers are very common. In Appendix A you can find the
review procedures for common waivers.

150

ADMINISTRATION OF THE QC SYSTEM. Each State is
responsible for maintaining sound administration of all facets of the QC system.
It is responsible for complying with the Food Stamp Act and regulations, this
handbook, and FNS policy memoranda, as well as the State agency's Plan of
Operation.
151

Implementation of QC Indexed Policy Memoranda. FNS QC

indexed policy memoranda must be implemented no later than the first sample
month beginning 30 days after transmittal of the memoranda to the State
agency.

152

Contracted Activity. A contractual agency may be used for QC

only if it is the Department of the State regularly employed for this function
(e.g., a State Inspector General's Office or a State Office of Audit.) For those
States in which QC is conducted by a contractual agency, the State agency shall
ensure that FNS-approved policies and procedures are followed.

153

Staffing Standards. The State shall employ sufficient QC staff to

ensure that reviews are completed in time to meet reporting requirements and
that the quality of the reviews will ensure that all findings are valid.

154

Avoiding Bias. Accomplishment of the objectives of QC depends

upon the successful operation of all facets of the subsystem. Specifically, it
depends on:
The integrity of the sample selected

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The skills with which the reviewers conduct reviews
The care and precision with which they record their findings
The completeness and accuracy of data analysis
The use of these results in corrective action
Determining State agencies’ liability for errors
Determining State agencies’ eligibility for high performance
bonuses.

*
*

To be successful, then, the QC subsystem must eliminate bias; otherwise, the
results will not be valid and will have little use in planning corrective actions.

*

Common sources of bias are inadequate sampling techniques, non-completion
of cases, lack of objectivity on the part of the reviewer, inconsistent
application of policy, and inappropriate involvement by the local office and
error review committees in the review process.

*
*
*
*

Inadequate sampling techniques can be avoided by following the instructions in
FNS-311, The Quality Control Sampling Handbook.

*
*
*

The reviewer shall not have prior knowledge of either the household or the
decision under review. Where there is prior knowledge of the case, the
reviewer shall disqualify her/himself. Such prior knowledge is defined as:
Any participation in the decision that had been made in the
case;
Any discussion of the case with staff who participated in the
decision; or
Any personal knowledge of, or acquaintance with, the
household.
The following types of actions represent examples of activities that produce an
unacceptable bias in the QC system:
Prior knowledge by the local agency of cases scheduled for
review, resulting in the agency’s intentional or unintentional
treatment of these cases in a special manner that, in turn,

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*
*

makes the sample results unrepresentative of the whole
caseload.

*
*

The State or local agency adding documentation to, or removing
documentation from, the official record of a sampled case.

*
*
*
*
*
*
*
*
*

An eligibility or certification worker contacting a QC sampled
household or collateral contact to obtain additional information
in an attempt to clarify the household’s circumstances, get
statements that would alter the findings of the QC reviewer, or
coerce the household into saying or doing anything that might
misrepresent the household’s circumstances. A local office may
request that QC reexamine some aspect of the case, but QC
makes the decision on the case based on QC policy and
practices.

*
*
*
*
*
*
*
*
*

A QC reviewer contacting the eligibility or certification worker
responsible for administering the case selected for QC review.
This also includes contacting any eligibility or certification staff
who participated in the certification action under review. An
exception is made for a situation where the QC reviewer needs
assistance from a local office to locate, or gain the cooperation
of the household. In such situations, contact must be strictly
limited to locating the household or gaining its cooperation with
the QC reviewer.

*
*
*
*

The State or local agency asking or coercing a household to
engage in any activity (such as not participating in the QC
sample month) for the ultimate purpose of gaining a desired
case disposition or finding in a QC review.

*
*
*

The State or local agency reducing a household’s allotment for
the sample month because of an apparent overpayment in a
sampled case.

*
*
*
*
*
*
*
*
*
*
*

Once the sample has been pulled, local offices should not
review the cases, make changes that would affect the eligibility
or benefits for the cases, or contact the household or a
collateral contact prior to the QC review being conducted in
order to make any changes to the case. This does not apply to
routine case management changes such as filing household
reports, acting on reported changes, issuing notices of
expiration, or conducting recertification interviews. Normal
case management activities should not be initiated or
undertaken at an accelerated pace in order to affect the cases
under review.
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Requesting information from collateral contacts or nonhousehold members in such a way as to encourage the person to
not cooperate or not provide the requested information; for
example, asking a non-household member to check off a block
saying the household does not want to apply for the Food Stamp
Program or a block saying that the information is being
provided.

*
*
*
*
*
*
*

State QC Reviewers must apply policy in accordance with the Federal
Regulations, the FNS Handbook 310, options selected by the State and active
waivers during the review of each individual case. The same policy must be
applied to all cases consistently within the State and not on an individual basis
to ensure every household is treated the same. The State reviewer must fully
document findings, the basis for each individual element, the computations
and results, and attach copies of documentary evidence to support the
reviewer’s findings for both active and negative cases so all of the facts are
evident should the case be selected for Federal QC review.

*
*
*
*
*
*
*
*
*

The purpose of the QC System is to determine the eligibility and benefit level
of each individual case. Whether a case is correct or in error, the State
reviewer must determine the facts and make decisions based upon those facts.
When the required verification cannot be obtained, the State reviewer must
explore other evidence, and review the eligibility worker’s actions in the
context of the overall case record and other evidence to arrive at a likely
conclusion. The State reviewer must document the steps taken to meet the
verification standards and how any alternate information helps substantiate the
reviewer’s determination. Also, the intent of Section 442.3 in the 310
Handbook “Likely Conclusion” is not to be used as a mechanism for dropping
cases by purposely introducing extraneous information that cannot be verified.

*
*
*
*
*
*
*
*
*
*
*

In order to avoid the potential for introducing bias into a case, once the
Federal findings have been provided to the State agency, additional
information developed to contest the Federal finding either through informal
resolution or arbitration must be verified in order to be considered. Unverified
information will not be considered and will not be allowed to be used to code
the case either as “incomplete” or NSTR.”

*
*
*
*
*
*

The error review committee’s role is primarily one of reviewing cases to assess
for future corrective action planning, not to review individual error cases to
assess the potential for reducing or eliminating errors in a sampled individual
case. Error review committees should incorporate and maintain procedures
that minimize the likelihood of unacceptable bias being introduced into the QC
review process.

*
*
*
*
*
*

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160 QC UNIVERSE. (Refer to FNS Handbook 311.) Statistical samples of
food stamp cases are selected for QC review. There are two universes from
which the cases are selected -- active and negative. Households correctly
classified for participation under the rules of an FNS-authorized demonstration
project, unless FNS determines that such cases may be excluded, and
households participating based on food stamp applications processed by the
Social Security Administration shall be included in the selection and review
process. In addition, households may be selected more than once during the
review period.

170

ERROR ANALYSIS. (Refer to Chapters 6 and 12.) Using the QC

review procedures in this handbook and based on verified information, the
reviewer shall determine if each completed active case was eligible and
whether it was overissued or underissued benefits. Through a review of
negative case records, the reviewer shall determine whether the State agency's
decision to deny, to suspend, or to terminate the household, as of the review
date, was correct.

180

FORMS AND REPORTING. Refer to Chapter 12 and Appendices B,

C and D.

181

Active Cases. For each active case, the State agency shall
complete the Form FNS-380, Worksheet for Food Stamps Quality Control
Reviews, and a Form FNS-380-1, Review Schedule. (See Chapter 3 for cases not
subject to review.)
181.1

Form FNS-380. (See section 323 and Appendix B.) The reviewer
shall use a Form FNS-380 to record information from the case record, to plan
and conduct the field investigation, to record findings and to document the
verification that substantiates the eligibility determination and benefit level.
States have the option of using the Federal form (paper or automated) or an
FNS Regional Office approved State-designed form. Form FNS-380 consists of a
face sheet, a worksheet and a computation sheet to determine the correct
benefit level. It may be necessary for the reviewer to supplement the Form
FNS-380 with other forms such as State forms for appointments, interoffice
communications, release of information, etc., when appropriate.
181.2

Form FNS-380-1. (See Chapter 12 and Appendix C.) Information

from the Form FNS-380 is used to complete the FNS-380-1. Data from the FNS380-1 is transmitted to the National Computer Center (NCC) via the Food Stamp
Quality Control System (FSQCS).
An FNS-380-1 is completed for all active cases. Cases processed by a Social
Security Administration worker and cases that are part of an exempted
demonstration project have a separate case classification so that any errors
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FNS HANDBOOK 310
may be excluded from the case error rate, payment error rate and
underissuance error rate.
Nonexcluded variances that directly contribute to the error determination
(i.e., ineligibility or an overissuance or underissuance) shall be coded and
reported in Section VI of the FNS-380-1. The reviewer shall list all such
variances by element and indicate the cause of the variance. Excluded
variances resulting from correctly processed information obtained from an
automated Federal information exchange (FIX) system, such as SDX or BENDEX,
shall be coded and reported as variances in Section VI, but they shall not be
used in the error determination. A State at its option may require other
variances to be reported in this section.
Concerning the FSQCS, there are six protected fields that cannot be edited
after Federal subsampling:
Item 4 - Stratum
Item 5 - Disposition of Review
Item 6 - Review Findings
Item 7 - Amount of Error
Item 8 - Coupon Allotment
Item 17 - Case Classification
The State Agency may request that the FNS Regional office edit these fields
prior to Federal subsampling. Cases originally coded not completed or not
subject to review can be edited at anytime until the end of the reporting
period.

182

Negative Cases. (See Chapter 13 and Appendix D.) For each
negative case in the sample, the State agency shall complete a Form FNS-245,
Quality Control Food Stamp Negative Case Action Review Schedule.
190

DISPOSITION TIMEFRAMES. Each case selected in the samples of

active and negative cases shall be accounted for by classifying it as completed,
not completed, or not subject to review. Ninety percent of all cases selected
in a given sample month shall be disposed of and reported to FNS within 75
days of the end of the sample month. All cases selected in a sample month
shall be disposed of and the findings reported to NCC within 95 days of the end
of the sample month. A case shall not be reported as "not completed" solely
because the State agency was unable to process it in accordance with these
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FNS HANDBOOK 310
reporting requirements. Instead, the State agency shall submit a report to FNS
that includes an explanation of why the case has not been disposed of,
documentation describing the progress of the review to date, and the date by
which it will be completed. FNS will decide whether the case will be
considered overdue based on the report. All cases, including cases where a
household refused to cooperate, must be disposed of by 95 days after the end
of the annual review period.

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CHAPTER 2
BASIC REVIEW PROCESS
200

GENERAL. This chapter outlines procedures for conducting reviews of
active cases. It also provides information on certification systems, household
reporting requirements and the focus of QC reviews.
210

REVIEW STEPS. The following are general steps to be followed in

reviews of all active cases.

211

Determine the Correct Systems. (Refer to section 220.) The

reviewer must examine State procedures and the certification record to determine for
the sample month whether the household should have been:
•

Subject to prospective or retrospective eligibility;

•

Subject to prospective or retrospective budgeting;

•

Subject to the change reporting ($100 change in earned income reporting
or status reporting), monthly reporting, quarterly
reporting, semi-annual reporting, or an approved waiver. (Refer
to section 223.)

212

Review the Certification Record. (Refer to Chapter 3.) The
reviewer must review the certification record to determine what action was taken on
the case by the agency.

213

Conduct a Field Review. (Refer to Chapters 4 and 5.) During the field

review, the reviewer must interview the household or, when appropriate, the
authorized representative and obtain verification from collateral contacts.

214

Determine Which Variances to Include. (Refer to Chapters 6-11.)
If a difference exists between the information used by the agency and the verified
information obtained by the reviewer for eligibility or allotment purposes, the
reviewer must determine if the variance is included or excluded for QC purposes.
214.1 If the authorized allotment varies by $50 or less from the QC corrected
allotment(s), variance(s) shall be included, but their error amounts excluded from the
official State’s error rate determination. There are two $50 comparisons. (See
Chapter 6.)

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214.2

Variances resulting from the use of incorrect information at the time of
certification or recertification must be included. However, in no event will a
variance be included if there is no difference between the information used by the
eligibility worker (EW) and that verified in accordance with the time frames specified
in Chapter 7. This applies to all elements. It applies to each income source and to
total income.
Some variances, due to reporting requirements or processing time considerations, are
excluded. Variances that result from a change in circumstances that should have
been effective AORD must be included. (See Chapter 7.)

215

Determine the Correct Amount of Benefits. The reviewer must use
the verified information to determine if the household was eligible and to calculate
the correct benefit level for the sample month. (See Chapter 6.)
216

Determine the Cause of Errors. If the case was ineligible or received

an overissuance or underissuance of benefits, the reviewer must identify the
variance(s) that caused such error and determine if it was caused by the household or
the State agency.

217

Report. The reviewer must prepare and submit the necessary reports.

(See section 180.)

CERTIFICATION AND REPORTING SYSTEMS. The reviewer must
determine which eligibility, budgeting and reporting systems should have been used
for each household based on the State agency's selection of regulatory options and
individual household circumstances.
220

221

Eligibility. Each household's eligibility for participation in SNAP is based
upon its financial and certain nonfinancial circumstances for each month of
participation. There are two ways of looking at a household's circumstances:
•

Prospectively. Determining a household's eligibility prospectively
requires the agency to anticipate the household's circumstances for each
month of participation based upon existing circumstances that are
expected to remain the same and changes in existing circumstances that
are reasonably certain to occur; and

•

Retrospectively. Determining a household's eligibility retrospectively
requires the agency to use known circumstances from a previous month.
A State may have a one-month or a two-month retrospective system.

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In either a prospective or a retrospective system, a household determined eligible for
participation is authorized to receive an allotment for a specific month called the
issuance month or a series of months referred to as the certification period.

222

Budgeting. The amount of food stamp benefits a household is entitled to

during an issuance month may also be determined (or budgeted) prospectively or
retrospectively. This system may be the same as or different from the eligibility
system.

222.1

Prospective. Prospective budgeting requires the agency to anticipate

what a household's circumstances will be during the issuance month based upon
existing circumstances and expected changes. As illustrated below, the budget month
is the issuance month.
Prospective System
June
Issuance Month and
Budget Month

222.2

Retrospective. Retrospective budgeting requires the agency to use

circumstances from a prior month to determine the benefits a household should
receive for the issuance month. As illustrated below, the budget month may be the
month two months prior to the issuance month or the month preceding the issuance
month.
Two-Month Retrospective System
April

May

June

Budget
Month

Processing
Month

Issuance
Month

One-Month Retrospective System
May

June

Budget
Month

Issuance
Month

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223

Reporting. To facilitate the accurate determination of households'

eligibility and allotment levels after the certification action, households are required
to report changes to the local agency. A household may be subject to change
reporting ($100 change in earned income reporting or status reporting), monthly
reporting, quarterly reporting, semi-annual reporting , or in accordance with an
approved waiver (See Appendix A). The QC reviewer must review in accordance with
the option chosen by the State agency for reporting income.
Any change in circumstances that is not required to be reported cannot result in an
included variance in the QC error determination process if it was not reported. (See
Chapter 7.)

223.1 Change Reporting/Prospectively Budgeted ($100 Change in
Earned Income Reporting). Households subject to change reporting
requirements are required to report changes in circumstances, within 10 days of the
date the change becomes known to the household. However, for income, households
may be required to report changes as early as within 10 days of the date the
household becomes aware of the new employment, within 10 days of the date the
employment begins/stops or within 10 days of the date the household receives the
first paycheck attributable to the change. Reportable changes include the following:
•

Change in the sources of income, if the change in employment is
accompanied by a change in the amount of income;

•

Change of more than $50 in unearned income, except a change in a
public assistance grant (or general assistance grant if the grant and the
food stamp allotment were jointly processed);

•

Change in the amount of earned income of more than $100 a month
from the amount last used to calculate the household’s allotment;

•

All changes in household composition;

•

Changes in residence and the resulting change in shelter costs;

•

The acquisition of a licensed vehicle, the value of which is not fully
excludable according to certification policy;

•

When liquid resources reach or exceed the resource limit; and

•

Changes in the legal obligation to pay child support.

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The QC reviewer must consider a change reported when it is reported to either the
food stamp or TANF unit. (See section 740 for mass changes.)

223.2 Change Reporting/Prospectively Budgeted (With Status
Reporting). Households subject to status reporting requirements are required to
report changes in circumstances within 10 days of the date the change becomes
known to the household. However, for income, households may be required to report
changes as early as within 10 days of the date the household becomes aware of the
new employment, within 10 days of the date the employment begins/stops or within
10 days of the date the household receives the first paycheck attributable to the
change. Reportable changes include the following:

223.3

•

Change in the source of income if the change is accompanied by a
change in income;

•

Changes in wage rate or salary or employment status (part-time to fulltime or full-time to part-time);

•

All changes in household composition;

•

Changes in residence and the resulting change in shelter costs;

•

The acquisition of a licensed vehicle, the value of which is not fully
excludable according to certification policy;

•

When liquid resources reach or exceed a total of $2,000;

•

Changes in the legal obligation to pay child support`

Monthly Reporting. Households subject to the monthly reporting

requirements must submit complete reports on a monthly basis. These households
may, but are not required to submit changes outside the monthly report.

223.4

Quarterly Reporting. Households subject to quarterly reporting are

required to file a complete quarterly report by the filing date specified on the report.
At the State agency’s option, households may be required to report all of the
eligibility factors on the quarterly report form; or to report some of the eligibility
factors on the quarterly report form and other changes through the use of a change
report form. However households subject to time limits for able-bodied adults must
report whenever their work hours fall below 20 hours per week averaged monthly.
The QC reviewer must review in accordance with the option chosen by the State
agency.
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223.5

Semi-Annual Reporting. Households subject to limited reporting are

only required to report changes that cause the household’s gross monthly income to
exceed 130% of the poverty income guideline for the household size. However
households subject to time limits for able-bodied adults must report whenever their
work hours fall below 20 hours per week averaged monthly. Changes must be
reported no later than 10 days from the end of the calendar month in which the
change occurred.
The QC reviewer must consider a change reported when it is reported to either the
food stamp or TANF unit. (See section 740 for mass changes).

223.6

Transitional Benefits. There are no reporting requirements during the

transitional months. The state agency is only allowed to adjust transitional benefits
based on information reported from another program in which the household
participates, if the state agency opted to act on these changes.

230

QC REVIEW FOCUS. Certification actions and the authorized allotment

are reviewed at a point in time.

231

Certification Errors. The QC review of any active case is based upon an

examination of the benefits authorized for the household for the sample month.
The QC system disregards errors made during the issuance process. States have direct
liability for issuance errors. Therefore, it is not the benefit amount that is actually
issued which is subject to QC review, but rather the benefit amount authorized
through the certification process.
Determining eligibility and calculating the benefit amount are certification functions.
•

In States where these functions have not been computerized, the
benefits authorized on the worksheet shall normally be reviewed by the
QC reviewer.

•

In States where an automated computer system determines a
household's eligibility and benefits, the QC reviewer shall review the
case based upon the information stored in the computer.

In reviewing the authorized allotment, the reviewer must examine the actions of the
EW including any documentation supporting the amount of benefits authorized.

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232

Allotment Amount. The full amount of the issuance month's benefits

including those supplements for the sample month (See section 233) shall be reviewed
and reported as the allotment in Section D of the FCS-380 face sheet.

232.1

Actions to ignore. Do not consider the following actions.
•

Recoupments to
recover prior food
stamp overpayments.

Example of a recoupment: If $10 was
recouped from a $100 authorized allotment
and a $90 allotment was issued, review the
$100 amount.

•

Coupons voluntarily
returned by the
household when there
was no claim.

Example of voluntarily returned coupons:
If a household was authorized a $100
allotment and it returned $50 in coupons,
review the $100 amount.

•

Claim collections for
prior months or the
issuance month.

Example of a collection of a prior claim: If
a household was authorized a $100
allotment and it repaid $25 on a claim,
review the $100 amount.

•

Restored benefits.

Example of a restored benefit: If an
allotment was authorized for $150 which
included a $100 allotment for the sample
month plus $50 to correct an error four
months ago, review the $100 amount.

•

Retroactive benefits
for prior months.

Example of a retroactive benefit: If an
allotment was authorized for $150 which
included a $100 allotment for the sample
month and a $50 allotment for the month of
application, review the $100 amount.

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232.2

•

Actions taken
subsequent to the
sample month.

Example of a subsequent action: If a $100
allotment was authorized in the sample
month and $20 in restored benefits were
authorized in the following month, review
the $100 allotment.

•

Supplement issued
after QC sampling.

Example of a supplement not included: If
a $100 allotment was authorized for the
sample month and a $20 supplement was
subsequently authorized within the sample
month but after the case was selected for
QC review, review the $100 allotment.

Non-Compliance with Other Means-Tested Programs. The QC

reviewer should review the full amount of the benefits authorized for the sample
month making any necessary adjustments based on instructions in Section 232.1.
•

If the State applied an optional percentage reduction, the allotment
would have the percentage reduction already deducted.

•

If there was no penalty applied, it would not have a penalty deducted.

Below are the three possible situations that can occur for State agencies that have
chosen to apply a reduced food stamp allotment penalty when an individual has failed
to take a required action in another means-tested public assistance program.
•

The State agency
applied the penalty.
Review the allotment
authorized, in which
the penalty has been
applied.

Example of an applied penalty: The
household was originally eligible to receive
$120 but was authorized $100 after the
penalty was deducted. It is the $100
allotment that is subject to QC review.

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•

The State agency knew
of the household’s
failure to take a
required action in the
other means-tested
program and did not
apply the penalty but
should have applied
the penalty. Review
the allotment
authorized. In
determining the error
amount in this case,
apply the penalty that
the EW should have
deducted.

Example of a penalty that should have been
applied, but was not: The household was
authorized $120. A $20 penalty should have
been applied. The allotment subject to review
is $120. In the process of determining the
error amount, deduct the $20 penalty as the
last step in column 2 of the computation
sheet. This will result in an error including the
penalty amount that should have been used by
the EW. Compare the $100 in column 2 to the
$120 in column 1. The result is a $20
overissuance.

• The State agency did

Example of a penalty that was not applied
not know of the
and did not have to be: The household was
household’s failure to
authorized $120. Use the $120 as the
take a required action
allotment under review. Do not apply the
in another meanspenalty in establishing the error amount for
tested program so the
this case.
State agency did not
apply a penalty.
Review the allotment authorized. Since the agency was not aware of
the failure to take a required action in the other program there was no
way to apply the penalty. For this situation, do not apply the penalty in
the error determination process. Do not deduct the penalty as the last
step in column 2.

233

Review Date. In no case is the review date the day the QC review is

conducted. The allotment authorized as of the review date (AORD) shall be the
benefits subject to review.
The review date for active cases means a day within the sample month, either the
first day of the sample month or the day a certification action was taken to authorize
the sample month's allotment, whichever is later. Certification actions shall include:
•

Initial certifications or recertifications completed during the sample
month.

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•

Changes in the
allotment that the
State agency authorized
before the day on
which the case was
sampled.

Example of a change in the allotment
before sampling: On September 30, the
State agency changed the household's
October allotment, from $105 to $138.
Quality control sampled the household on
October 1 for the October sample month.
Quality control will review the $138
allotment, because the State agency changed
the allotment before the day of sampling.

•

Changes in the
allotment that the
State agency authorized
on or after the day on
which the case was
sampled, providing the
State agency processed
the change(s) in a
timely manner, in
accordance with
certification
requirements, and the
change(s) were
reported by the
household before the
day on which the case
was sampled.

Example of a change after sampling, but
processed timely: A monthly reporting
household had a baby born on September 22;
the household reported the birth on
September 25. On September 28, quality
control sampled the household for October.
On September 29, the State agency changed
the household's October allotment, from $199
to $269. Quality control will review the $269
allotment because the State agency
processed the change in a timely manner as
mandated by certification requirements.
Another example of a change after
sampling, but processed untimely: On
March 3, a household member left a change
reporting household. On March 20 the
household reported the member's
departure. The State agency did nothing.
On August 3 quality control sampled the
household for August. On August 5 the
State agency changed the household's
August allotment, reducing it from $470 to
$414. Quality control will review the $470
allotment, because the State agency
changed the allotment after the sampling
date and did not process the change in a
timely manner in accordance with
certification requirements.

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•

Supplements that the
State agency authorized
before the day on which
the case was sampled.
Such a supplement is
part of the allotment
that is subject to
review.

Example of a supplement authorized
before sampling: A household applied in
January and reported semi-monthly income
of $350 ($700 monthly). The State agency
certified the household but treated the
income as biweekly ($752.50 monthly). On
April 20, the State agency discovered its
mistake at a recertification interview, and
on the same day authorized restored benefits
for the previous months and a $15
supplement for April. Quality control
sampled the household on May 2 for April.
Quality control will include the $15
supplement because the State agency
authorized it before sampling.
Another example of a supplement
authorized before sampling: A household
was subject to change reporting and
prospective budgeting. The sample month
was August, and the household received its
regular allotment on August 2. On August 3,
the State agency discovered that they had
failed to give the household an earned
income deduction, so they authorized a $28
supplement. On August 6, quality control
sampled the household. The reviewer will
include the $28 supplement because the
State agency had authorized the supplement
before the sampling date.

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•

Supplements that the State agency authorized on or after the day on
which the case was sampled if the State agency processed a change in a
timely manner, in accordance with certification requirements, that was
reported by the household before the day on which the case was
sampled.

•

If a State agency authorized a supplement on or after the day on which
the case was sampled and did not process a reported change in a timely
manner as dictated by certification requirements, the supplement is not
part of the allotment that is subject to review.
Example of a reported new member of the
household: A household was subject to
monthly reporting and retrospective budgeting
in a two-month system. The sample month was
June. On May 30, quality control selected the
June sample. On May 31, the household
reported the birth of a baby, so on June 10 the
State agency authorized a supplement of $89.
The $89 supplement would not be reviewed and
the new member would not be included in the
error determination process because the
household reported the change after the date
the case was sampled.

•

If a State agency pulls its QC sample prior to the sample month, and a
household reports a new member on or after the sampling date, but
prior to the first day of the sample month, the addition of the new
household member must be examined to determine if it was properly
handled, but the supplemental allotment (or change in regular
allotment) itself is not included in the allotment subject to review. If
verification was provided prior to the end of the issuance month, a

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supplement should have been authorized in the issuance month. (See
section 722.4 for direction on determining variances relative to adding
new members.)
Another example of a reported new member
of the household: A household was subject to
change reporting and prospective budgeting.
The sample month was April. On February 25,
the household reported the birth of a child.
The State agency took no action on the reported
change. The household received its April
allotment on April 1. Quality control sampled
the household on April 4. On April 7, the State
agency discovered its mistake and authorized a
$78 supplement to compensate for the
improperly treated household member. The
reviewer will not include the $78 supplement,
but will include the new member because the
local office did not process the reported change
in a timely manner as mandated by certification
requirements.

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CHAPTER 3
CASE RECORD REVIEW
300

GENERAL. This chapter provides guidance on conducting a review of the

household's case record, including documentation of verification contained in the case
record. It also identifies cases that are not subject to review.

310

PURPOSE OF CASE RECORD REVIEWS. The purpose of active case

reviews is to:

320

•

Identify the status of each element of eligibility and benefit calculation
as documented by the agency;

•

Determine the amount of the allotment authorized for the sample
month's issuance; and

•

Identify any variances resulting from misapplication of policy by the
agency.

PROCEDURES FOR CASE RECORD REVIEWS. Case record reviews

consist of reviewing the household's issuance record, analyzing the certification case
record(s), reviewing verification documentation and documenting the findings on a
Form FNS-380.

321

Household Issuance Record. The reviewer shall review the

household's issuance record(s) and determine if the household participated in the
sample month.
The reviewer may compare information on household size, the certification period
and the allotment contained in the issuance file to that in the certification file and
report any differences to the agency for corrective action on an individual basis.

321.1

On-line EBT. For “on-line” EBT systems where the account memory is

held in a central computer system, participation has occurred when the sample month
benefits are posted to the account, with one exception. The exception is that if the
household has not accessed the account for purposes of withdrawal/purchase of food
at any time in the three-month period which includes the sample month and the two
consecutive months immediately after the sample month, then the household shall
not be considered to have participated in the sample month.

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321.2

Smart-Card EBT. For "Smart Card" EBT systems, the benefit information

is resident on the individual card's memory chip and must be updated each month,
participation has occurred when the card is presented for update for the sample
month.

322

Certification Case Record(s). The reviewer shall analyze household

circumstances, reported changes, certification actions, verification and
documentation contained in the certification case record(s). The reviewer shall
review the food stamp case record(s) and, as applicable, the PA case record(s). The
reviewer may review general assistance, Medicaid and other available records.
If the reviewer is unable to locate the household's case record, the reviewer shall
identify as many of the pertinent facts as possible from the household's issuance
record.

322.1

Household Circumstances and Certification Actions. The

reviewer shall review all information applicable to the case AORD, including, but not
limited to, the application, worksheet and any documented changes in effect AORD.
The reviewer should become familiar with the household's situation, identify the
specific facts related to eligibility and the benefit amount and note any deficiencies
and misapplication of policy.

322.2

Documented Verification. The case record may contain documents or

statements that the reviewer may use as verification if the documentation is
adequate, it is not subject to change, and it applies to the appropriate time period.
Those elements for which documentation contained in the case record may be used as
verification must meet the minimum verification standards identified in Chapter 5 of
this handbook and need not be re-verified by the reviewer during the field review.

323

Completion of Form FNS-380. (See Appendix B.) During the case

record review, the reviewer shall complete the FNS-380. The information must be
recorded in sufficient detail to enable another person to determine the facts of the
case by reviewing the FNS-380.

323.1

Face Sheet. This is page one of the Worksheet for Food Stamp Quality

Control reviews. There are four sections:
•

Section A, provide identifying information in items 1 through 14 from
information in the case record.

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•
•
•

Section B, list persons living in the home identified in the case record.
Section C, list significant persons not living in the home associated with
the household and identified during the certification of the household.
Section D, complete the review findings at the conclusion of the review.

Note: Additional information may be added during the course of the review in
sections A through C before completing section D.

323.2

Column 2 of the Worksheet. The purposes of column 2 of the FNS-

380 worksheet is for the reviewer to record information contained in the casefile and
to assist the reviewer in planning the field review. The reviewer must record
information from the case record relevant to the most recent certification action of
the household.
•

The reviewer must use all information applicable to the case AORD,
including the application and application worksheet in effect AORD.

•

The reviewer should note any pertinent items or questions as well as
any conflicts in information.

•

In addition, the reviewer should be aware of recorded factors which are
subject to change, note the reliability of sources used and note any
missing information.

•

This column may also be used to selectively highlight other points that
should be considered when conducting the field investigation or to
remind the reviewer of the case situation.

The eligibility and allotment elements on the worksheets are grouped together under
four main groupings called program areas.

Program Area

Codes

Basic Program Requirements
Resources
Income
Other

100’s
200’s
300’s
500’s and above

A 3-digit code is used to identify each element. For reporting purposes, Elements are
listed in column 1 of the FNS-380.

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The information recorded in column 2 should include the following:
•

•

Application
Information. The
reviewer should record
information provided
by the household on
the application by
element.

Examples of recording information from the
application: Element 150 Household
Composition: Application lists three - Jean Jones
and her two children (Cheryl and Tom).

Worksheet
Information. The
reviewer should record
the information
contained on the
worksheet that was
prepared by the EW.

Examples of recording information from the
worksheet: Element 344 PA: Application shows
no PA. Worksheet shows PA payments of $400 a
month.

Element 221 Real Property: Application shows
none.

Element 363 Shelter: Application and worksheet
show monthly mortgage payments of $400.
Element 364 Standard Utility Allowance;
Application shows monthly expenses of $10.50
electric, $25 gas and $12 phone. Worksheet
shows household was entitled to $150 SUA.

•

Verification. The
reviewer should record
verification
documented in the
casefile or attach
copies of documentary
evidence.

Example of recording information from
verification: Element 333 SSI: Application
shows Jean Jones received $225 a month.
Worksheet shows $235 a month. The EW verified
$235 by reviewing the April (date of the report)
SDX listing.

•

Other Information. The reviewer should record all other information
from the casefile that is relevant to the case AORD, such as case
history information that has a bearing on the household's circumstances
and changes that were reported or otherwise became known to the
EW.

•

Misapplication of Policy. The reviewer should record any
misapplications of policy such as: failure to use the correct income
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conversion factor, allowing an earned income deduction for unearned
income or allowing a medical deduction for members who are not
elderly or disabled. The reviewer should also record mathematical and
transposition mistakes.

323.3

Computation Sheet. Fill in column 1, Eligibility Worker Information,

by recording the figures the EW used to compute the allotment for the sample month.

324

Ineligible Households. If during the case review the reviewer can
determine and verify that the household was ineligible, the reviewer can terminate
the review at that point, provided that if the determination is based on information
that was not obtained from the household, then the reviewer shall resolve the
difference to determine which information is correct. The reviewer shall recontact
the household and discuss the difference unless the household cannot be reached or
refuses to cooperate. When resolving conflicting information, the reviewer shall use
his/her best judgment based on the most reliable data available and shall document
how the differences were resolved.

330

CASES NOT SUBJECT TO REVIEW. Certain types of cases are not to

be included in the QC sample. These cases are normally eliminated in the sampling
process; however, if such cases reach the reviewer, the reviewer shall terminate the
review at the point when a determination is made that the case is not subject to
review. The reviewer must complete items 1 through 7 and item 68 of an FNS-380-1.
An FNS-380 has to be partially completed for these cases. The reviewer must provide
identifying information and adequately document the FNS-380 to show that the case
meets the not subject to review criteria. Otherwise, the case will be considered a
not completed case. All cases that meet the criteria in sections 331 through 338 must
be coded as not subject to review.

331

Oversampling. Cases dropped as a result of oversampling are not

subject to review.

332

Cases Listed in Error. Households listed in error as active cases are

not subject to review. They include but are not limited to:
•

Negative cases appearing in the active sample;

•

Households that did not participate in the food stamp program for the
sample month, including suspended cases and those that were eligible
for zero benefits before any recoupments were made. Households are
considered to have participated if they meet the active case definition

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in section 130. (See section 321 for details regarding participation in
Electronic Benefit Transfer type systems);

333

•

Households that received restored benefits but were otherwise not
participating based upon an approved application;

•

Households that received retroactive benefits for the sample month.
This includes households that applied for participation in the sample
month, but were not certified until the following month; and

•

Households that participated based on an expired ATP.

Disaster Cases. Households certified under disaster procedures

authorized by FNS because of a natural disaster are not subject to review.

334

Cases Pending a Hearing. Households that are appealing an adverse

action when the review date falls within the time period covered by continued
participation pending the hearing are not subject to review. This includes PA cases
certified under joint processing that are under appeal. For jointly processed cases
this provision applies even if only the PA grant is under appeal, if the food stamp
benefits are frozen pending the decision on the PA grant appeal. A case remains not
subject to review, even if the hearing decision has been rendered by the time of the
review, if the case was still pending the hearing decision as of the review date.

335

Intentional Program Violation Cases. Cases are not subject to

review if as of the date the case is selected for QC sampling:
•

The case has been referred for investigation to the state's fraud
investigation unit, and the investigation is scheduled to begin within 5
months of sampling;

•

The case is under active fraud investigation; or

•

The case has a pending administrative or judicial IPV hearing.

"Scheduled" means that an actual date for the investigation to begin has been
assigned.
"Under active investigation" means that the fraud investigator has begun to actually
explore the details of an apparent client caused overissuance. To be considered
"active" the investigation must be in progress. It does not mean that the case has only
been referred for investigation and accepted by the fraud investigation unit.

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336

All Household Members Have Died. The case is not subject to

review if all the household members who could be interviewed died before the review
could be undertaken or completed. The availability of an authorized representative
for interview does not make this case subject to review.

337

Household Moved Out of State. The case is not subject to review if

all the household members who could be interviewed moved out of State and have not
returned by the time the reviewer attempts to contact the household. The
availability of an authorized representative for interview does not make this case
subject to review.

338

Unable to Interview. Cases are not subject to review if the interview

cannot be completed because all individuals who could be interviewed:
•

Have been hospitalized, incarcerated or placed in a mental institution
and are expected to remain there for 95 days after the end of the
sample month; or

•

Cannot be located after all reasonable efforts to do so have been made
and documented as provided in section 442.1.

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CHAPTER 4
FIELD REVIEWS
400

GENERAL. This chapter provides guidance on conducting field
reviews. The two basic activities involved in a full field review are (1)
interviewing the household and (2) making collateral contacts.

410

PURPOSE. The purpose of a field review is to obtain all

relevant information about the household's actual circumstances which
relate to the household's eligibility and benefit level for the sample
month's issuance and to verify and document the information. A full field
review must be conducted for all active cases that are subject to review
except as otherwise provided in this chapter or ineligible cases as provided
in section 324.

411

Alaska Cases. A full field investigation is not required for

cases sampled in isolated areas of Alaska which are not reasonably
accessible considering regularly scheduled commercial air service,
available lodging and automobile or public transportation.
For example, the area could be considered not reasonably accessible if the
reviewer has to stay overnight because of airline schedules and there is no
suitable lodging. The area could also be considered not reasonably
accessible if the reviewer could not leave an area within a reasonable
period of time after conducting the review. For example, the review(s)
may take several hours but the reviewer would not be able to fly out for
several days. An area could also be considered not reasonably accessible
if there is no available ground transportation such as rental cars or public
transportation that would be needed to conduct a face-to-face interview.
In such cases, at least one attempt to contact the household, by telephone
for example, must be made and documented. The review of such cases
can then be completed by means of a review of the case record and by
collateral contacts.

412

Limitations on Information Sought. The reviewer may

examine only those circumstances related to the household's eligibility
and benefit level for the sample month's issuance. For example, the
reviewer may not require that he/she be given access to a safe deposit
box. The time periods for which information must be sought and verified

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will vary depending on the household's eligibility, budgeting and reporting
systems and whether income and expenses have been averaged or
prorated. In addition, for reasons of reviewer safety, and so that quality
control can not possibly interfere with any ongoing law enforcement
activities, under no circumstances shall the reviewer question the
household regarding the possibility of ineligibility due to an illegal
drug conviction or possible status as a fleeing felon. (For details on
this limitation of information sought, see the specific review procedures
for disqualified household members in section 848.)

413
Completion of Form FNS-380, Column 3 of the
Worksheet. During the field investigation, the reviewer must complete
column 3 of the FNS-380. The reviewer must document the analysis of
each element. This includes documenting confirmation of information in
column 2. Reviewers are responsible for resolving inconsistencies of
information discovered during the review and documenting the results in
column 3.

414

Planning the Field Review. Prior to conducting the

interview, the reviewer should review the case record to identify areas
where particular attention is warranted, e.g., conflicts in information or
gaps in coverage. To facilitate the field review, the reviewer should also
identify elements which were adequately verified and documented in the
case record and need no further attention during the field review in
column 3 of the FNS-380 worksheet. The reviewer must arrange for a
personal interview with the household and arrange for obtaining
verification from collateral contacts.

415

Arranging for Verification. When adequate documentation

of verification is not contained in the case record, the reviewer shall
arrange for verification from collateral contacts. For QC purposes, a
collateral contact is a source of information that can be used to verify
household circumstances. The reviewer should note those elements that
require additional verification and obtain the name, address, and
telephone numbers of those sources from the household during the
interview.

420

HOUSEHOLD INTERVIEW. The QC reviewer shall conduct a

face-to-face interview for active cases subject to review to determine the
identity of the applicant and whether the household did exist and to
explore household circumstances affecting the sample month's eligibility
and allotment.
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An interview is required for all cases except:
•

Certain Alaska cases as provided in section 411,

•

When the household is determined ineligible based on
information furnished by the household as provided in
sections 324 and 441, or

• The household fails or refuses to cooperate as provided in
section 442.2.
During the interview, the reviewer should review documentary evidence
and obtain names, telephone numbers and addresses for collateral
contacts.
In some instances when the interview cannot be completed, e.g., all
members who could be interviewed have died, the case is not subject to
review as provided in section 336.

421

Arranging Household Interview. The reviewer must

notify the household prior to the interview that it has been selected as
part of an ongoing review process for QC and that a face-to-face interview
will be held in the future. The reviewer must make arrangements for the
interview and may inform the household of the type of information that
the household will need to have available for the home visit.

422

Individuals Who Can Be Interviewed. The reviewer must

interview one of the following individuals:
•

The head of the household;

•

That person's spouse when a member of the household;

•

Another knowledgeable member of the food stamp household
under review (who can identify the applicant, prove the
household exists, know circumstances that affect eligibility
and allotment, and provide documents along with the names,
telephone numbers and addresses of collateral contacts); or

•

The authorized representative designated by the household
to make application for the program on behalf of the
household. An authorized representative may not be

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interviewed if all household members who could be
interviewed have died or moved out of state. (See sections
336, 337 and 338.)

423Location of Interview. The State agency determines the
location of the face-to-face interview in most cases. For most
reviews, the interview may take place at:
•

The household’s home,

•

The local certification office, or

•

Another location that is mutually agreeable to both the
reviewer and the household.

An office interview must be waived if requested by any household that:
•

Is unable to appoint an authorized representative and has no
household member able to come to the office because they
are elderly or disabled, or

•

Is unable to appoint an authorized representative and lives in
a location not served by a certification office.

The reviewer should not choose the certification office when that will
inconvenience a household with:
•

Inadequate public transportation

•

No car

•

Problems with child care

•

Conflicting work hours

•

Conflicting school hours.

FNS encourages reviewers to interview households in their homes. A home
visit can be important in determining whether the household lived at the
address given. A home visit also enables the reviewer to make visual
observations of pertinent living circumstances. Reviews should not take
place in the home when:

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•

There is a threat to the reviewer’s physical safety if the
household lives in a high crime area

•

No one is at home during the day because of employment.

When the interview is to be held at locations outside the home, the
household needs to be advised in advance what documentation it needs to
bring to the interview.
Interviews cannot be conducted over the telephone except in Alaska under
circumstances discussed in section 411.

424

Conducting the Interview. The following are procedures

for conducting the interview with the household. See Appendix E for
guidelines on interviewing techniques.

424.1

Opening the Interview. The reviewer must show proper

identification and explain the purpose of the interview. Telephone calls
and letters arranging the interview may have included such an
explanation, and reference to them may be useful.

424.2
Dealing With Household Fears During the
Interview. The reviewer may want to tell the household that it and
others were selected at random from a list of all households that received
food stamps in the particular month. The reviewer might also say that the
purpose of doing this is to find out if households in general are
participating correctly. The reviewer should assure the household that all
the information obtained from it and others will be safeguarded, that is,
the Food Stamp Program allows only certain authorized persons to review
information about food stamp households.

424.3

Observation During the Interview. Observation should
be made of such things as vehicles and evidence about household
composition. For example, no toys or other evidence of young children
when the household has stated there are some in the household and/or
when the case record includes the existence of children in the household
could warrant further inquiry.

424.4

Establishing Household Composition. Household

composition should be established early in the interview process because
many of the questions to be asked depend on who is in the household. A
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typical sequence would be to establish residency and then household
composition.

424.5

Reviewer Inquiries. The reviewer is required to ask the

household about each element as it applies to each household member.
For example, in a two-person household of Mr. and Mrs. Jones with neither
person exempt from work registration, the reviewer might ask, "Mr. Jones,
did you work for anyone or were you self-employed during the month of
October 2002?" That question would be repeated for Mrs. Jones: "Did Mrs.
Jones work for anyone or was she self-employed during the month of
October 2002?" Follow-up questions may be required.
If the reviewer obtains conflicting information about the household's
circumstances, the reviewer must resolve any inconsistencies by
recontacting the household. The source(s) of the conflicting information
may be the client, a collateral contact, or both. If the reviewer
determines that the new information is correct, the reviewer must
document why the first statement was incorrect or incomplete. For
example, if the household reported that it was paying $400 in rent and the
landlord stated that the household was actually paying $600 in rent, the
reviewer must ask the household to explain the inconsistency. The
reviewer must document the correctness of the statement used.

424.6 Recording
Household Statements. The
reviewer must record the
household's statements in column
3 of the FNS-380 worksheet.

424.7 Verification. The
reviewer must verify household
information during the field
review if the verification was not
adequately documented in the
case file.
•

Example of recording a
household’s statement: "Mr. Smith
stated he worked for Charley's
Choice Computers, 123 Main Street,
836-1234, during June 2002and
earned $300a week gross. He
received 4 paychecks in June. No
one in the household received any
other earned income in June 2002.
He said no one was self-employed
during June 2002."

Reviewing Documentary Evidence. The reviewer must
review appropriate documentary evidence which the
household has available.

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•

430

Obtaining Collateral Contacts. The household is the best
source of names, addresses and telephone numbers of
persons or sources that can verify household circumstances.
Therefore, the reviewer must ask the household for this
information. If the household refuses to provide such
collateral contacts, one of the following procedures must be
followed depending on State requirements:
1.

The reviewer should try to find collateral contacts by
other means. In addition, the reviewer is free to
gather information from collateral contacts other than
ones obtained from the household; or

2.

Households must sign a State release of information
form to allow QC reviewers to contact third parties to
obtain information pertinent to the household's food
stamp case. If the household refuses, the reviewer
must explain to the household that this refusal may
result in the household no longer receiving food
stamps. As discussed in section 442.2, such cases may
be completed if possible.

COLLATERAL CONTACTS. Collateral contacts are needed

when verification is not present in the case record or from the household.
Most of the time the information that should be sought from a collateral
contact will be evident. For example, information about rent would
generally be obtained from landlords. Reviewers should also keep in mind
that one collateral contact can sometimes verify several elements.
Landlords can sometimes also verify household composition. Reviewers
should plan collateral contacts to make maximum use of third party
information. To minimize demands on the time of collateral contacts and
help make the review efficient, reviewers should try to obtain all the
information they need from a particular collateral contact at one time.

431

Obtaining Information From Collateral Contacts.

When contacting collateral information sources, reviewers must identify
themselves, describe their purpose, and state what information they need.
It does not mean that the agency suspects that there is something wrong
with the household's food stamp case. Discussions with collateral contacts
must focus on information pertinent to the review yet may include factors
other than those the reviewer planned to verify. For example, a landlord
who was contacted about rent may mention the presence of a household

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member which neither the case record nor the household indicated. If so,
the reviewer should obtain any relevant information about the person that
the landlord may know and contact the household again to resolve any
inconsistencies.

432

Collateral Contact Refusal To Cooperate. A third party

may refuse to provide the information that is needed to verify an element
of eligibility or basis of issuance. The program has no authority to require
third party cooperation. If verification cannot be obtained from other
known sources, the household should be contacted again to obtain another
source. A collateral's refusal to cooperate should not be interpreted as
the household's refusal to cooperate.

433

Documentary Verification. The reviewer shall document

verification obtained from collateral contacts either by recording the
information in column 3 of the FNS-380 or by attaching copies of
documentary evidence. (See section 520 for documentation
requirements.)

440

COMPLETION OF FIELD REVIEWS. Field reviews must be

completed to the point where either ineligibility or the appropriate
benefit allotment is determined, verified and documented, except for
cases that are not subject to review as specified in Chapter 3 and cases
that the reviewer is unable to complete in accordance with section 442.

441

Cases Determined Ineligible. If during the field
investigation the reviewer determines and verifies the household's
ineligibility, the review can be terminated at that point provided the
determination is based on information obtained from the household. If it
was obtained from another source, the correctness of such information
must be reviewed further. The reviewer shall try to resolve the conflicting
information by recontacting the household unless it cannot be reached or
refuses to cooperate. This contact may be by telephone, mail or in
person. If the reviewer is unable to resolve the difference with the
household, the reviewer shall use his/her best judgment based on the
most reliable data available and shall document how the final
determination was made.
442

Incomplete Case. Every reasonable effort must be made to

complete all active cases except those that are not subject to review. All
cases reported as not complete shall be reported to the State agency for
appropriate action on an individual case basis.
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442.1

Case Record or Household Cannot Be Found. The

reviewer shall make all reasonable efforts to locate the case record and
the household.
•

Case Record. When a case record cannot be found, the
reviewer must use whatever information is available to contact
the household and complete the review.

•

Household. This provision does not apply when the household's
current residence has been located and confirmed but the
reviewer is unable to talk to the recipient. (See section 442.2
for refusal and failure to cooperate.)
The reviewer may be unable to locate the household at the
address indicated in either the case record or the issuance
record, and the reviewer is not otherwise aware of the
household's current address. Some cases may also include the
characteristic that correspondence from Quality Control to the
household has been returned with an official Postal Service
stamp indicating the correspondence was "undeliverable",
"moved no forwarding address", etc. (In this instance, the official
Postal stamp may serve as one source of contact; however, a
letter marked simply unclaimed is not acceptable.) In such
circumstances the reviewer shall attempt to locate the
household by contacting at least two sources that the reviewer
determines are most likely to know the household's current
address. Such sources may include, but are not limited to:
1. The local office of the U.S. Postal Service;
2. The State Motor Vehicle Department;
3. The owner or property manager of the residence at the
address in the case record; and
4. Any other appropriate sources based on information
contained in the case record, such as public utility
companies, telephone company, employers, relatives or
school officials. Appropriate sources for homeless households
may include soup kitchen personnel, homeless shelter
operators, or transient housing officials. To qualify as a

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contact, the source must provide feedback; messages left on
answering machines do not qualify.
After the reviewer has attempted to locate the household
and has documented the response of each source contacted,
if the household still cannot be located and the reviewer has
documented evidence that the household did actually exist,
the reviewer shall report the active case as not subject to
review (Code 2).
In these situations documented evidence shall be considered
adequate if it either:
•

Documents two different elements of eligibility or basis of
issuance, such as a copy of a birth certificate for age, a
pay stub for income, or

•

Documents the statement of a collateral contact
indicating that the household did exist.

If the reviewer fails to undertake these efforts or to properly
document the efforts, the case is considered incomplete
(Code 3) as opposed to not subject to review. When the
reviewer determines that the household never existed, e.g.,
an apparently bogus case, or never lived at the address given
and the household cannot be located, the case must be
coded as incomplete (Code 3).
•

442.2

Case Record and Household. If neither the case record nor
the household can be found, the case must be reported as
incomplete (Code 3) regardless of the State's efforts to locate
the household.

Household Refusal and Failure To Cooperate. One or

more members of the household may refuse or fail to cooperate with the
reviewer by refusing or failing to be interviewed or by not providing
collateral contacts.
•

Determination of Refusal (Code 3). For a determination of
refusal to be made, the household must be able to
cooperate, but clearly demonstrate that it will not take
actions that it can take and that are required to complete

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FNS HANDBOOK 310
the QC review process. An outright refusal to talk to the
reviewer is an example. In certain circumstances, the
household may demonstrate that it is refusing to cooperate
by not taking action after having been given every reasonable
opportunity to do so, even though the household or its
members do not state that the household refuses to
cooperate.
Examples of
instances where the
household's failure
to take required
actions in
completing a QC
review has the
effect of a refusal
to cooperate
include:
The key factor in
determining
whether the
household refused
or simply failed to
cooperate with the
reviewer is whether
the reviewer can
verify that the
household was
actually contacted
and aware that the
reviewer was seeking the household’s
cooperation.

•

Example of not responding to a
letter: The household does not
respond to a letter that is the
reviewer’s initial attempt to contact
the household to arrange an
interview, that is sent Certified MailReturn Receipt Requested, and is
signed for by a household member,
within 30 days of the date of receipt.
Example of not attending an
interview: The household does not
attend an agreed upon interview with
the reviewer and then does not
contact the reviewer within 10 days of
the date of the scheduled interview to
reschedule the interview.
Example of not following up:
Following contact with the reviewer,
the household does not return a signed
release of information statement to
the reviewer within 10 days of either
agreeing to do so or signing for a
request from the reviewer sent
Certified Mail-Return Receipt
Requested.

Determination of Failure (Code 3). For a determination of
failure to be made, the reviewer must be unable to
document or verify that the household is unwilling to take
actions that it can take and that are required to complete
the QC review process.

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Examples of
instances where the
household would be
considered to have
failed to cooperate
rather than refused
to cooperate in
completing a QC
review include:

Example of failure, not refusal, when
the household does not respond: The
household does not respond to notes or
messages left at the household’s verified
address or with a non-household
member, but the reviewer is unable to
verify that the household received the
notes or messages. An exception shall be
made to this provision for notes or
messages left with the household’s
eligibility worker. If the eligibility
worker states that the notes or messages
were conveyed to a household member,
and these notes or messages do not elicit
a response from the household, then the
household’s lack of response will be
considered a refusal to cooperate with
the reviewer.
Example of failure, not refusal, when a
third party does not cooperate: A
refusal to cooperate comes from a person
who is not a member of the household of
record.
Example of failure, not refusal, when
the household cannot cooperate: The
household demonstrates a willingness to
cooperate with the reviewer, but is
unable to provide requested information
because the information is not in the
possession of the household.

•

Steps To Obtain Compliance In Both Refusal and Failure to
Cooperate Situation. If a household refused or failed to
cooperate with the reviewer, certain steps must be taken.
The case must be reported to the State agency for it to take
other administrative action. Such action may include such
things as having the eligibility worker contact the household,
assigning the case to another QC reviewer and writing the
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FNS HANDBOOK 310
household a letter from a State official such as the Welfare
Commissioner.
After such actions, in cases where it has been determined
that the household refuses to cooperate, the household shall
be notified of:
•

•

The penalties for refusing to cooperate with respect to
termination and reapplication
The possibility that its case will be referred for
investigation for willful misrepresentation.

If the household refuses to cooperate after such notice, the
reviewer shall report the household's refusal to the State
agency for termination of the household's participation
without regard to whether the reviewer is able to complete
the case.
It is the responsibility of the State agency to establish
whether a household's lack of cooperation is based on a
refusal or a failure to cooperate. All the steps taken in the
attempt to gain the cooperation of the household, as
outlined in this section, shall apply to all cases in which the
household is determined to have either refused or failed to
cooperate with the reviewer, except that the reviewer shall
not report the case to the State for termination when it is
determined that the household failed, rather than refused,
to cooperate.
In instances where the reviewer has verified the
address/residence of the household, but the household does
not respond to letters, notes, or messages requesting the
household’s cooperation, the reviewer shall report the case
to the eligibility worker for appropriate administrative
action, including possible termination of the household’s
eligibility due to loss of contact between the State agency
and the household. The reviewer shall request that the
eligibility worker inform the household of the quality control
review and how to contact the reviewer if the household
responds to any proposed administrative action.

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In all cases where the reviewer has determined that the
household refused or failed to cooperate in completing the
quality control review, the reviewer shall attempt to
complete the case without the cooperation of the
household. If the reviewer is able to determine and verify
all of the necessary information without the cooperation of
the household, the case shall be reported as complete even
if the household could not be interviewed.
If the reviewer is unable to determine and verify all of the
necessary information without the cooperation of the
household, the case shall be reported as incomplete. If,
after disposition of the case as incomplete, the household
later agrees to cooperate with the reviewer (at any time up
until 95 days after the end of the review period) the
reviewer must reattempt to complete the case.
All of the steps taken to gain the cooperation of the
household and to complete the review must be documented
in the QC review record.

442.3

Likely Conclusion. If the reviewer cannot obtain the

required verification (see Chapters 5 and 8 through 11), the reviewer
should explore other evidence, and review the eligibility worker's actions
in the context of the overall case record and other QC case findings. If the
reviewer is unable to arrive at a likely conclusion in such cases, the case
must be coded as incomplete. If the reviewer is able to arrive at a likely
conclusion, the case should be coded as complete. The reviewer must
document the FNS-380 worksheet with the steps taken to meet the
verification standards and how any alternate information helps
substantiate the reviewer's determination.
The reviewer cannot use likely conclusion for certain elements, e.g.:
• Non-citizen status,
• IEVS for bank accounts and employment,
• DMV for vehicles,
• SSN’s and

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• Work requirements.

442.4

Late Reviews. Reviews shall not be reported as incomplete

solely because the reviewer is unable to complete the review in time for it
to be reported in accordance with the reporting requirements in section
190 unless the State agency obtains prior FNS approval.

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CHAPTER 5
VERIFICATION AND DOCUMENTATION
500

GENERAL. This chapter contains the general verification and
documentation requirements. Refer to Chapters 8 through 11 for specific
verification and documentation requirements for each element of eligibility
and basis of issuance.
510

VERIFICATION. The reviewer must verify from information in the

certification record or collateral contacts each element of a household's:

511

•

Eligibility for the point in time dictated by the eligibility rules
governing the household's sample month participation, and

•

Benefit calculation for the household's budget month.

Sources of Verification. The reviewer shall obtain sufficient

evidence to establish the factual information for each element under review.
A list of sources for verification is provided under the standard verification
section of each element. These sources have generally proven to be the most
reliable and have been provided to assist reviewers in completing reviews to
the point when the proper benefit allotment is determined. In most instances,
reviewers may use sources other than those listed under standard verification
as long as they meet the criteria for evaluating evidence. (See section 513.)
For a few elements, only specific sources of verification may be used as
indicated in Chapters 8 through 11.

512
Use of the Income and Eligibility Verification System
(IEVS) Data. For certain elements as specified in Chapters 8 through 11, use
of IEVS as verification and/or to obtain leads for further investigation is
mandatory. In using information from IEVS, reviewers should consider the lag
time necessary for information from provider agencies to be updated, input and
available for access through IEVS. In some instances this process may run one
or two quarters behind. As a result of this delay, absence of information from
IEVS should not be construed as confirmation of the nonexistence of
income/resources.

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513

Evaluating Evidence.

513.1

As the reviewer obtains evidence, he/she must evaluate the
evidence to ensure that:
•

It meets the verification requirements for the element.

•

It does not conflict with other evidence, or that the conflicts are
resolved and documented.

•

It proves (either by itself or in combination with other evidence)
the facts being verified.

•

It pertains to the case member(s) or other individuals to whom it
is supposed to apply.

•

It establishes the circumstances for the element AORD for the
appropriate issuance and budget month.

513.2

In judging the reliability of evidence, the reviewer should consider
the following:
•

Age of Evidence or Date Evidence was Established. Does the
date the evidence was established lend credence to the factor
being established, or does it raise questions?

•

Purpose for Which Established. Why was the evidence
prepared? Would there be any reason for falsifying the evidence?

•

Basis for the Evidence. What or who is the source? Is it
reliable? For example, was the information provided for the
purpose of establishing eligibility? If not, who provided the
information?

•

Nature of the Evidence. Is the evidence official, such as a birth
certificate, deed or other legal instrument?

•

Custody of the Evidence and Its Availability. Is the evidence in
the custody of a person who might have a vested interest in
changing or slanting the evidence?

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•

Way in Which Specific Information Is Recorded. Does written
evidence clearly establish the facts of the issue being reviewed?
For example, is the specific date of birth shown, or does it show
only age? If it shows only age, does it indicate last or next
birthday? If the answers to any of the questions raise doubts
concerning the reliability of the evidence, or the identity of the
person to whom the evidence pertains, resolve these doubts
and/or attempt to obtain other types of evidence.

The verification requirements of each section are the minimum requirements,
and the reviewer may pursue additional verification. Whether the reviewer
uses sources from the standard verification listing, other sources or IEVS, error
determinations will ultimately be based on the household's actual
circumstances.

514

Positive and Negative Allegations. Verification standards

differ in some instances depending on whether the household responds
positively or negatively to a question.
For example, if a household admits to having liquid resources, its statements
are verified in a certain way. If a household denies having liquid resources, its
statements are verified according to whether or not there is cause to doubt the
negative allegation.
Verification standards for negative allegations are included as needed with
verification standards for positive allegations.

515

Guidance for Particular Elements. Guidance is provided in

Chapters 8 through 11 for each element to show what verification is required.
The State shall use the IEVS data in accordance with Chapter 9 on resources
and Chapter 10 on income.

520

DOCUMENTATION. Verification must be documented by

recording information on the worksheet and, whenever possible, by attaching
copies of documentary evidence. Documentation must clearly show the basis
for the reviewer's findings for each individual element. It is the basis for
determining if a variance exists in an element.

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521
Documentation
With Attachments.
Whenever verification is
documented by attaching a copy
of some official document or
correspondence to the
worksheet, the reviewer should
make a note on the worksheet
for the appropriate element
referring to the document and
stating the fact that it verifies.

522
Documentation by
Recording a Document.
When a copy of the document is
not obtainable, the reviewer
must record the information on
the worksheet. For
documentation of documentary
evidence from official sources
and correspondence and written
statements from collateral
contacts to be considered
adequate, it must contain the
following:

Examples of documentation with an
attachment: Henry Jones stated that he
was born April 10, 1950. Verified by New
York City birth certificate number 11234.
See attached copy.
Sarah Wilson stated her rent was $450 per
month that did not include utilities.
Verified as $450 per month for March 2002
in letter from landlord. See attached copy.

Examples of documentation by recording:
Wages for John Doe were verified by
viewing two biweekly pay stubs from Jo
and Mo's Bakery, 221 Landgrave Place,
Pleasant, Ohio, check #0631, received 1013-02, Gross Amt. $206.50 and check
#2506, received 10-27-02, Gross Amt.
$323.80.
Sarah Wilson stated her rent was $450 a
month that includes all utilities. Verified
as $450 for March 2002 from rent records
viewed at Cherry Tree Apartments rental
office, 500 Cherry Tree Lane, Blossom City.

•

The source and type of document, its date (processed, signed,
received or sent), any identification number, and the volume and
page number if applicable;

•

Where the document is located, if appropriate, such as a
government office;

•

The pertinent information from the document; and

•

How the information from the document applies to the specific
period of time.

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523
Documentation of Verbal Statement by a Collateral
Contact. When documentary evidence cannot be attached to the QC file,
information may be obtained verbally from collateral contacts and must
contain the following information to be considered adequate:
•

524

The name of the
contact,

Example of documenting a verbal
statement: Susan Gromolinsky stated that
the day care center her two children
attended in October 2000 charged $160 a
month per child. Verified 2/15/02 in
statement from Estelle Smith, Director,
Cheery Child Day Care, phone 275-1662,
that Tammy and Brenda attended all of
October 2000 and Susan Gromolinsky was
charged $320 for that month.

•

Title and
organization (if
appropriate),

•

Telephone number
(if none, so state),

•

Address (if no
telephone number
or if information was
obtained in person),

•

Significance to household; and

•

Date or dates of contacts and
pertinent information obtained.

Verification and Documentation of Negative Allegations.

In addition to verification of
Example of documenting a negative
positive factors which the
allegation: Mr. Baker stated that no one in
household admits, such as
the household owned any licensed vehicle
employment, bank accounts and
in July 2002. Verified by Motor Vehicle
expenses allowable as
Department. See attached print-out.
deductions, a household's
negative allegations, for
example, that no one in the
household is employed, no one has a bank account or no one owns a vehicle
must be verified. Verification of negative allegations needs to be documented
on the worksheet as does verification of positive allegations.

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525
Verification and Documentation in Automated
Certification Systems. In some State agencies, the certification file may
be contained wholly or partially in computer files.
In such instances, the QC reviewer must ensure that verification and
documentation is sufficient to establish each element of eligibility and the
benefit calculation for the household's budget month. If not, the QC reviewer
shall obtain the necessary verification and document the worksheet in
accordance with the standards in this chapter, and Chapters 8 through 11.

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CHAPTER 6
ERROR DETERMINATION PROCESS
600

PURPOSE. The purpose of the error determination process is to

determine whether each active case is eligible, eligible with an overissuance or
underissuance, or ineligible for the sample month. The term "error" applies to
the allotment. There is an error in the case if the household is ineligible.
There is also an error in the case if the household is overissued or underissued.
Only errors more than $50 will be included in the official error rate for a State
agency. The inclusion or exclusion of any variance in an element may affect the
error determination process; however, a variance is not an error. There are two
parts to the error determination process, the eligibility test and the allotment
test.

610

THE ELIGIBILITY TEST. The first thing the reviewer has to do is

to determine whether the household was eligible to receive the sample month
issuance. The reviewer must use the procedures in Chapters 5 and 7 through
11 to verify the household's circumstances and to determine whether any
variances found during the review are to be included or excluded. The
procedures to be used depend upon the household's eligibility system, as
distinct from its budgeting system, requirements. If the household was
ineligible, the error determination process is complete. Column (2) of the
computation sheet would be completed using the figures determined in the
test if the necessary figures were obtained during the review. If the review
was terminated before the household's complete circumstances were
established, column (2) is not completed. The allotment amount would be zero
as the entire amount authorized for the sample month was in error. The
reviewer would enter Code 4 in Item 8 and the amount of the authorized
allotment in Item 10 of Form FNS-380-1. If the household is eligible, the
reviewer must continue with the Allotment Test.

620

THE ALLOTMENT TEST. The allotment test is a two-step

process. It consists of two comparisons. The first comparison is a comparison
of an allotment computed based on actual, verified circumstances to the
authorized allotment. The second comparison is a comparison of an allotment
based on the verified circumstances excluding appropriate variances to the
authorized allotment. Prior to doing the allotment comparisons, the reviewer
must verify the household's actual circumstances appropriate for the
household's budgeting requirements.

01-13-12 (Change 3)

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621

Comparison I. The first comparison is of an allotment computed based
on the actual, verified budget month circumstances for items the client is entitled
to be considered in the benefit calculation to the authorized allotment. The
reviewer must not determine whether there are any variances for the purposes of
this comparison.
621.1

Using actual, verified income and deductions for the budget month for
items entitled to be considered in the benefit calculation, the reviewer must
compute an allotment. This figure must include any relevant annualized or
prorated amounts, and any applicable standard (i.e., SUA, homeless shelter
standard, etc.). As appropriate, income received on a weekly or bi-weekly basis
must be converted to a monthly figure.

621.2

Then the reviewer must compare the allotment amount computed in
621.1 to the amount the eligibility worker authorized for the sample month.
*
*
*
*
*
*
*
*
*
*

621.3

If the difference between these two allotment amounts is $50 or less,
the error determination process is over. There is no error in the allotment amount
authorized for the sample month that will be included in the error rate
calculations. However, the reviewer must use the actual verified budget month
circumstances for completing column (2) of the computation sheet and must enter
Codes 1, 2, or 3, as appropriate, in Item 8 of the Form FNS-380-1 regardless of the
$50 threshold. Code 1 will only be used if the difference between the two
allotments is $0. In item 10 of the Form FNS-380-1 the reviewer must enter the
amount of the difference between these two allotments regardless of the $50
tolerance.

621.4

If the difference between these two allotment amounts is greater than
$50, the reviewer shall proceed to Comparison II.

622

Comparison II. The second comparison is of the authorized

allotment and an allotment based on the verified budget month circumstances,
excluding any variances in accordance with the requirements in Chapters 7
through 11.

622.1

The reviewer must compute an allotment, using the verified budget
month circumstances, excluding any variances as appropriate.

622.2

Then the reviewer must compare the allotment amount computed in
622.1 to the amount the eligibility worker authorized for the sample month.
*
*
*

622.3

If the difference between these two allotments is $50 or less, the error
determination process is complete and there is no error in the allotment that will
be included in the error rate calculations. However, the reviewer must use the
figures from 622.1 for column (2) of the computation sheet and enter Codes 1, 2,
01-13-12 (Change 3)

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FNS HANDBOOK 310
or 3, as appropriate, in Item 8 of the Form FNS-380-1 regardless of the $50
threshold. Code 1 will only be used if the difference between the two allotments
is $0. In item 10 of the Form FNS-380-1 the reviewer must enter the amount of
the difference between these two allotments regardless of the $50 tolerance.

622.4

If the difference
between these two allotment
amounts is greater than $50, there
is an error in the allotment amount
authorized for the sample month
which must be included in the
calculation of the official error
rate for the State agency. The
reviewer must use the figures from
622.1 or the figures from 621.1 for
column (2) of the computation sheet
and determine the amount in error.
The figures used (622.1 or 621.1)
must be whichever figures result in
the least quantitative error for the
case. The amount in error is the
difference between the two
allotments. The reviewer shall enter
Code 2 for "Overissuance", or Code 3
for "Underissuance", in Item 8 and
the amount in error in Item 10 of
Form FNS-380-1.

01-13-12 (Change 3)

Example of Using Comparison I figures to
determine the error: For the case under
review, the figures from 621.1 (Comparison
I) reflect an allotment error of a $65
overissuance. The figures from 622.1
(Comparison II) reflect an allotment error
of a $85 overissuance. It is the figures from
Comparison I, the $65 overissuance which
must be used in the final error
determination of the case.
Example of Using Comparison II figures to
determine the error: For the case under
review, the figures from 621.1 (Comparison
I) reflect an allotment error of a $140
underissuance. The figures from 622.1
(Comparison II) reflect an allotment error
of a $70 overissuance. It is the figures from
Comparison II, the $70 overissuance, which
must be used in the final error
determination of the case.

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CHAPTER 7
REVIEW PROCEDURES RELATIVE TO CERTIFICATION
SYSTEMS AND CHANGES
700

GENERAL. For QC purposes, it is critical that the reviewer
determine the rules governing each household's participation in the issuance
month in relation to eligibility, budgeting and reporting. The certification
system determines the period of time for which household circumstances must
be verified for QC purposes. It also determines when changes must be made
effective.
There are two basic eligibility and budgeting systems - prospective and
retrospective. The prospective eligibility and budgeting system uses the same
month to consider the eligibility of the household and to budget the income
and deductions in determining benefits. A household’s circumstances are
considered and the eligibility worker anticipates the circumstances for the
issuance month based upon recent income and deductions and considering
information provided by the client. Retrospective budgeting uses the
circumstances, income and deductions from a specific prior month to
determine benefit level. The retrospective budgeting system may be either
one-month or two-month systems. The eligibility and budgeting systems may
vary based upon characteristics and established State procedures. For
example, the State may have a two-month retrospective budgeting and
prospective eligibility system for households with earned income and
prospective eligibility and budgeting for all other households. In addition,
States have the option of counting TANF income prospectively in an otherwise
retrospectively budgeted system, and certain new members may be added
under prospective budgeting for several months to an otherwise retrospectively
budgeted household. Another factor to consider in determining the correct
system is whether there was a recent change that should have resulted in a
household being switched from one system to another. Households that were
not certified in the previous month are phased into retrospective budgeting
with "beginning" month treatment. This means that prospective budgeting is
used for one or two initial months depending on the State's system.
The QC reviewer must use the correct system(s) even if an incorrect system
was actually used to authorize the sample month benefits. In determining the
correct system(s), the reviewer must consider the food stamp regulations,
State options, implemented waivers, and individual household circumstances.
For example, if a PA household with earned income should have been subject
to retrospective budgeting for PA and food stamp purposes but it was
erroneously certified prospectively for both programs, the QC reviewer must
use the retrospective budgeting review procedures.

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710

VERIFICATION TIME PERIODS. The procedures in sections 711713 specify the time periods for which household circumstances must be
verified by the reviewer.
When retrospective budgeting is combined with prospective eligibility, the
reviewer must verify income and deduction information for two months, i.e.,
the budget month and the issuance month. The specific verification standards
by element in Chapters 8-11 shall be used.

711

Prospective Systems. (For further information refer to
Definitions and sections 221 and 222.)
711.1

Eligibility. For cases subject to prospective eligibility, the
reviewer shall verify all elements governing the household's eligibility, except
for income and deductions, AORD. The reviewer shall verify income and
deductions (when a net income determination is necessary) for the entire
issuance month.
711.2

Benefit Level. For cases subject to prospective budgeting, the

reviewer shall verify all income and deduction elements governing the
household's benefit level for the entire issuance month.
NOTE: In a prospective system, the budget month and the issuance month are
the same.

712

Retrospective Systems. (Reference Definitions and sections 221

and 222.)

712.1

Eligibility. For cases subject to retrospective eligibility, the
reviewer shall verify all elements governing the household's
eligibility, except as otherwise provided in this paragraph, as of the
last day of the budget month. The reviewer shall verify elements
related to residency, social security numbers, work registration, and
the transfer of resources AORD. The reviewer shall verify income
and deductions (when a net income determination is necessary) for
the entire budget month.

712.2

Benefits. For cases subject to retrospective budgeting, the

reviewer shall verify all income and deduction elements governing the
household's benefit level for the entire budget month.

712.3

New Members After the Budget Month. If the household

reported that a new member had or would join the household after the budget
month and the State was required to add the person by the review date, the
reviewer shall verify household composition AORD.
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If the new member was required to be added prospectively because the person
was not previously participating, the new member's circumstances shall be
verified AORD except for income and deductions that shall be verified for the
entire issuance month. If the new member was required to be added
retrospectively because the person was previously certified in another
household in the previous month, the new member's circumstances shall be
verified in accordance with sections 712.1 and 712.2.

713

Exceptions.

713.1

Prorated Income and Averaged and Prorated Deductions.

When income was or should have been prorated over the budget month and/or
month for which eligibility was determined, the reviewer shall verify the
amount of such income regardless of when it was received and compute a
correct monthly amount. The same procedure applies to one-time or periodic
expenses that were or should have been averaged or prorated.

713.2

Variances. Information supporting variances must be verified.

This means that in some instances information must be verified for months
other than the budget and/or issuance month depending on when the error
occurred.
For example, for a prospectively budgeted household, if there is a variance
between the worksheet in effect AORD and the verified sample month
information, the reviewer must determine and verify if the variance occurred
at the time of certification or subsequent to that time.

713.3

Categorical Eligibility. The reviewer shall verify household
composition AORD and whether all members were authorized to
receive PA, SSI, an appropriate GA payment in the sample month or
authorized to receive the benefits of a State Program conferring
categorical eligibility. This applies even for retrospective eligibility
determinations.

713.4

Transitional Benefits. The reviewer must verify the household’s
eligibility to be certified to receive transitional benefits. This applies whether
the household has received benefits under transitional criteria or not.
720
REVIEW PROCEDURES RELATIVE TO REPORTING
REQUIREMENTS. The types of reporting requirements are: change reporting
($100/status), monthly reporting, quarterly reporting, semiannual reporting,
transitional benefits (no reporting) and alternatives to these systems approved
by waiver. (Refer to Definitions, section 223 and Appendix A.) Because of
State options and waivers, a household may be subject to one reporting
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requirement for all elements or different requirements for different elements.
The reporting requirements will delineate what has to be reported.
The reviewer shall use the procedures in this section to determine whether a
variance resulting from a change in the household’s circumstances must be
included or excluded from the error determination due to reporting and
processing time considerations. The reporting time frames are based upon the
household’s requirement to report certain changes in its circumstances within
the specified time frames as determined by the State agency which can be as
early as 10 days of the date that the household becomes aware of the change,
or as late as within 10 days of the date the household receives its first
paycheck attributable to the change. The exclusionary time periods in this
section apply to all changes in circumstances unless otherwise specified in
Chapters 8-11.
The circumstances as verified by the reviewer for the budget/issuance month,
including prorated or averaged income and deductions as appropriate, shall be
compared to the worksheet in effect AORD. If there are no variances in an
element when the verified circumstances are compared to the worksheet, the
reviewer must stop the review of the particular element.
If there is a variance, the reviewer shall determine the correct reporting
procedure for each element. In some States all elements will be subject to the
same reporting requirements. This determination shall be based on the State's
reporting requirements that were in effect for the issuance month.

721

Changes Relative to Appropriate Month. The reporting

requirements apply to both prospective and retrospective systems. Based on
the household's certification system, the reviewer must relate changes to the
appropriate budget and issuance month in which the change occurred or was
anticipated. For example, if a change reporting household in a prospective
eligibility and two-month retrospective budgeting system reported on June 1
that it anticipated an increase in income in July, the change must be
considered in determining the household's eligibility for July. The increase in
income would not, however, affect the household's benefit level until July
becomes the retrospective budget month, i.e., September.

722
Change Reporting - $100 Change in Earned Income/
Status Reporting. These procedures apply to households that are subject to
the change reporting requirements in section 223.2 and 223.3 and those items
that are not included on the monthly or quarterly report or to changes the
State becomes aware of from a source other than a monthly or quarterly
report.
The 30-day and 20-day time periods referenced in this section are based on the
regulatory requirements for change reporting. The requirements are 10 days
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for the household to report changes, 10 days for the State agency to act on
known changes and a 10-day notice of adverse action period for actions to
reduce or terminate benefits. State agencies have the option of using the
same time period for the notice of adverse action as they use for public
assistance purposes. This may be longer or shorter than 10 days. If it is, the
20-day and 30-day time periods that are related to the change reporting
requirements shall be adjusted by the same number of days. For example, if a
State uses a 12-day advance notice of adverse action to be consistent with
public assistance, the 30-day period for unreported changes shall be changed to
32 days and the 20-day period for acting on reported changes shall be changed
to 22 days.

722.1 Changes Prior to the Notice of Eligibility for Initial
Certifications.

722.2

•

Initial Month. Variances that are the result of unreported
changes that became known to the household subsequent to the
interview shall be excluded if the sample month is the initial
month. Variances that are the result of changes that were
voluntarily reported by the household between the time of the
interview and the certification action are included variances
unless the State had less than 10 days, from the date that the
change is reported until the date the household is certified to act
on the change. The date the household is certified is the review
date if the sample month is the initial month.

•

Subsequent Months. Unreported changes that became known or
occurred between the time of the interview and the date of the
notice of eligibility shall be treated as though they became
known to the household on the date of the notice of eligibility.

Unreported Changes. The following procedures apply to

unreported changes under the change reporting requirements. Any variance(s)
resulting from changes which occurred or the reviewer can document became
known to the household more than 30 days prior to the review date, shall be
included in the error determination. Variances resulting from changes that
became known to the household or occurred 30 days or less prior to the review
date shall be excluded from the error determination. There are two
exceptions that are:
•

In a one-month retrospective budgeting system with either
prospective or retrospective eligibility when the review date is
the first day of the issuance month and the household's issuance
is after the 15th day of the issuance month, any variances that

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occurred or became known prior to the 15th day of the budget
month shall be included in the error determination.
•

722.3

In a two-month retrospective budgeting system with either
prospective or retrospective eligibility when the review date is
the first day of the issuance month, the 30-day period is
converted to a month's time for simplicity. Therefore, a change
that occurred or became known during the budget month shall be
included. Any variance resulting from a change that occurred or
became known to the household in the processing month shall be
excluded from the error determination. (See section 721 for
changes relative to the appropriate month.)

Reported Changes. The following procedures apply to reported

changes under the change reporting requirements. If a change in
circumstances was reported which the State agency was required to effect
AORD, any variance(s) resulting from the agency's failure to effect the change
AORD shall be included in the error determination.
•

Two-Month Retrospective System. In a two-month
retrospective eligibility and/or budgeting system where the
review date is the first day of the issuance month, any
variance(s) resulting from change(s) that occurred during the
budget month shall be included in the error determination. Any
variance(s) resulting from change(s) that occurred during the
processing month shall be excluded.
NOTE: This does not apply to prospective eligibility.

•

Other. In systems other than two-month retrospective systems
variances shall be included in the error determination as
specified below.
1. Variances shall be included if the change would have resulted
in an increased allotment, it was reported more than 10 days
prior to the review date and action on the reported change
was not pending AORD because the household had not
submitted the necessary verification. An exception shall be
made to this provision in those situations where a household
has applied for initial benefits after the 15th of the month,
and receives a combined first and second allotment. In such
situations, if the second month is the sample month, any
changes occurring in the first month, which the State agency
is not required to affect for the second month, shall be
excluded from the error determination process.

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2. Variances shall be included if the change would have resulted
in ineligibility or a decreased allotment and it was reported
more than 20 days prior to the review date with two
exceptions:
a. If the notice of adverse action expired during the issuance
month (the sample month), and in a prospective system
the State agency had decided not to effect the change
until the month following the issuance month, the
variance shall be excluded; or
b. If the notice of adverse action notice expired on a
weekend or holiday on which the review date also falls,
the 20-day period shall be extended by the appropriate
number of days. Additionally, if the review date falls on
the day after a weekend or holiday on which the notice
expires, the 20-day period shall be extended for the
appropriate number of days.
In regard to all variances covered by this section, if a change
became known to the household more than 30 days prior to the
review date but was reported too late for the agency to effect
the change AORD, any variance resulting from the change shall
be included in the error determination.

722.4

New Members. New members who are not already participating
in another household must be added no later than the month following the
month in which they were reported. In order to do this, the State may issue a
supplement. (See section 233) To determine if the reported addition of a new
member was properly handled for QC purposes, the reviewer must determine if
the change would increase or decrease benefits.
•

Increase Benefits. If the addition of a new member(s) would
increase benefits, any variance resulting from the State agency's
failure to include the member in the month after the change was
reported must be included unless verification was not submitted
as of the last day of the issuance month. (If timely verification
was provided prior to the end of the issuance month, a
supplement should have been authorized in the issuance month.)
NOTE: If a State agency pulls its QC sample prior to the sample
month, and a household reports a new member on or after the
sampling date, but prior to the first day of the sample month,
the addition of the new household member must be examined to
determine if it was properly handled, but the supplemental
allotment (or change in regular allotment) itself is not included
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FNS HANDBOOK 310
in the allotment subject to review. In such circumstances, if a
supplemental allotment (or change in regular allotment) was
authorized then no variance for this situation shall be cited.
However the new household member, and any income or
deductions associated with this person, shall be excluded from
the remainder of the review. The correctness of the amount
authorized in the supplemental (or change in regular allotment)
is not subject to examination by QC in this situation. If a
supplemental allotment (or change in regular allotment) is not
authorized for the new household member then a variance for
failure to include the new household member shall be cited.

722.5

•

Decrease Benefits. If the addition of a new member(s) would
make the household ineligible or decrease benefits, the change
must be handled the same as any other change resulting in
ineligibility or decreased benefits in accordance with section
722.3 above.

•

Disqualified Members. When members that have been
disqualified for intentional program violations or work
requirement sanctions become eligible, they must be added in
the month after the disqualification period ends. Such changes
shall be reviewed as a reported change for QC purposes because
the State agency knew about the change.

Incorrect Action. In all cases, any variance resulting from the

agency acting incorrectly shall be included in the error determination.

722.6

Notices of Expiration. A household's certification period may

have been shortened with a Notice of Expiration because the State agency was
unable to obtain sufficient information on a change that involved one or more
elements but the household had not refused to cooperate with the State
agency. If so, and the sample month is the next to the last or the last month of
the certification period, any variances in these elements resulting from the
change shall be excluded provided the household reported the change in a
timely manner. Variances that occurred at the time of certification or
recertification and those resulting from changes reported in an untimely
manner shall not be excluded under the provisions of section 722.6.

723

Monthly Reporting. These procedures apply if the element was

subject to monthly reporting.

723.1 One-Month System Where the Element Was Subject to
Monthly Reporting.

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•

Unreported Changes. In reference to prospective eligibility,
and/or prospective budgeting (the provisions concerning
prospective budgeting apply when new members are added under
prospective budgeting), if the reviewer discovers a variance in an
element that is the result of a change which became known to
the household after the budget month, the variance shall be
excluded from the error determination.
If the change occurred in, or the reviewer can document that the
household was aware of the impending change during the budget
month, the resulting variance shall be included in the error
determination.
In reference to retrospective eligibility and/or retrospective
budgeting, if the reviewer discovers a variance in an element
that is the result of a change that occurred in the budget month,
the resulting variance shall be included in the error
determination. If the changes occurred after the budget month,
the variance shall be excluded in the error determination.
An exception shall be made to the provision to include in the
error determination process any variances resulting from a
change that occurred in the budget month, in those situations
where a household has applied for initial benefits after the 15th
of the month, and receives a combined first and second month
allotment. In such situations, any changes occurring in the first
month, which the State agency is not required to affect for the
second month, shall be excluded from the error determination
process.

•

Reported Changes on the Monthly Report. In reference to
prospective eligibility and/or prospective budgeting, any
variance resulting from a change which the reviewer can
document became known to the household or occurred in the
budget month and will continue through the issuance month shall
be included in the error determination. (These provisions
concerning prospective budgeting apply when new members are
added under prospective budgeting.)
In reference to retrospective eligibility and/or retrospective
budgeting, any variance resulting from a change that occurred in
the budget month shall be included in the error determination.
Any variance resulting from the agency's failure to effect a
change that was reported on the monthly report AORD that the

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State agency was required to effect shall be included in the error
determination.
An exception shall be made to the provision to include in the
error determination process any variances resulting from a
change that occurred in the budget month, in those situations
where a household has applied for initial benefits after the 15th
of the month, and receives a combined first and second
allotment. In such situations, any changes occurring in the first
month, which the State agency is not required to affect for the
second month, shall be excluded from the error determination
process.
•

New Household Members. If the addition of a new household
member in the issuance month is reported on the monthly report
for the budget month, the State agency is required to effect the
change in the issuance month (the sample month). The reviewer
must determine if the issuance month's benefits properly reflect
the addition of the new household member(s). Any variance
resulting from the agency's failure to add the new member or
incorrect adjustment of the issuance month allotment shall be
included in the error determination.

•

State Agency Action. In all cases, any variance resulting from
the agency acting incorrectly shall be included in the error
determination.

723.2 Two-Month System Where the Element Was Subject to
Monthly Reporting.
•

Unreported Changes. In reference to prospective eligibility
and/or prospective budgeting any variance resulting from a
change that became known to the household after the budget
month shall be excluded from the error determination. If the
change occurred in, or the reviewer can document that the
household was aware of the impending change during the budget
month, the resulting variance shall be included in the error
determination. (These provisions concerning prospective
budgeting apply when new members are added prospectively.)
In reference to retrospective eligibility and/or retrospective
budgeting, if the reviewer discovers a variance in an element
that is the result of a change that occurred in the budget month,
the resulting variance shall be included in the error
determination. If the change occurred after the budget month,
the variance shall be excluded from the error determination.
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•

Reported Changes on the Monthly Report. In reference to
prospective eligibility and/or prospective budgeting any variance
resulting from a change which the reviewer can document
became known to the household or occurred in the budget month
and was expected to continue shall be included in the error
determination. (These provisions concerning prospective
budgeting apply when new members are added prospectively.)
In reference to retrospective eligibility and/or retrospective
budgeting, any variance resulting from a change that occurred in
the budget month shall be included in the error determination.
If the change occurred after the budget month, the variance
shall be excluded.
Any variance resulting from the agency's failure to effect a
change reported on the report AORD that the agency was
required to effect shall be included in the error determination.

•

New Household Members. If the addition of a new household
member in the processing month (the month before the issuance
month) is reported on the monthly report received in the
processing month, the State agency is required to effect the
change in the issuance month (the sample month). The reviewer
must determine if the issuance month's allotment properly
reflected the addition of the new household member(s). Any
variance resulting from the agency's failure to add the new
member or incorrect adjustment of the issuance month's
allotment shall be included in the error determination.

•

State Agency Action. In all cases, any variance resulting from
the agency acting incorrectly shall be included in the error
determination.

724
Reviewing Prospectively Budgeted Elements/Sources in
an Otherwise Retrospectively Budgeted Case. These procedures
apply if a State agency has elected a budgeting system under which an
element, or a particular type of source within an element is budgeted
prospectively while other elements/sources are budgeted retrospectively. An
example of this would be a system under which all types of income except for
TANF are budgeted retrospectively while the TANF income is budgeted
prospectively. The following review procedures apply:
•

Prospectively Budgeted Elements/Sources. These
elements/sources must be reviewed in accordance with

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prospective budgeting procedures contained in sections under
722 and 724.1. The procedures for reported changes must be
applied to both changes reported by the household, and changes
which the State becomes aware of from another source. For
example, in the case of a State agency which prospectively
budgets TANF income, and retrospectively budgets all other
sources of income, a change in a TANF grant would be a change
that the State agency is aware of since the State agency itself is
the source of the TANF income.
•

Retrospectively Budgeted Elements/Sources. These
elements/sources must be reviewed in accordance with
retrospective budgeting procedures contained in sections under
722 (for change reporting elements/sources) or sections under
723 (for monthly reporting elements/sources), as appropriate.

724.1 Adding New Members Prospectively to a Retrospectively
Budgeted Household. In some cases, new members must be added using
prospective eligibility and budgeting while the remainder of the household is
retrospectively budgeted. This may occur in a two-month system if the new
member was not already certified to receive food stamps in another household.
It may occur in other situations if the State has a waiver. The reviewer shall
determine the number of months a new member is handled prospectively based
on the regulations, the State's system(s) and waivers. The new person's income
and deductions from the issuance month shall be added to the other household
members' income and deductions from the retrospective budget month to
determine the household's allotment.
•

Verification. See section 712.3.

•

Variances.
1. If a new member was reported, the reviewer shall determine
if the new household member and the new member's
circumstances were handled correctly. Variances resulting
from the State agency's improper action shall be included in
the error determination.
2. If the new member was not reported or not acted on, the
reviewer shall use the monthly reporting procedures in
section 723 for prospective eligibility and prospective
budgeting to determine if the variance(s) shall be excluded.

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725

Quarterly Reporting. The State agency has the option of establishing a
quarterly reporting system in lieu of change reporting requirements. However, ablebodied adults subject to the time limit as specified in regulations at 7 CFR 273.24,
have an additional requirement to report when their work hours fall below 20 hours
per week, averaged monthly.
These procedures apply for cases subject to quarterly reporting requirements:
A. Quality control reviewers will verify sample month circumstances for the elements
subject to quarterly reporting. These figures are used in the Comparison I
allotment test found in Section 621, Handbook 310.
B. Quality control will correct the worksheet figures for quarterly reporting elements
for misapplication of policy and computation errors by eligibility workers, and for
incorrect reporting by the household at the time of the quarterly report.
C. Quality control will use the corrected worksheet figures for quarterly reporting
elements in the error determination.
D. Elements on the quarterly report that are voluntarily reported by the household
outside the quarterly report will be reviewed using established review procedures.
E. If the household fails to submit a quarterly report but is allowed to continue to
participate, quality control will verify actual circumstances for the sample month
and compare them to the worksheet, using any cited variances in the error
determination, with the exception of specific variances described in Sections 754 757, Handbook 310.
F. If a household was subject to quarterly reporting but was not included in the
quarterly reporting system, the quality control reviewer will use the correct
system in completing the review of the household’s case per Section 700,
Handbook 310. The reviewer will also apply the same procedure if the household
was incorrectly included in the quarterly reporting system.

726

Simplified Reporting. Under simplified reporting, many households are

only required to report changes that cause the household’s gross monthly income to
exceed 130% of the poverty income guideline for the household size. In general, any
variances in the case resulting from changes, other than exceeding 130% of the
poverty guideline, which occur after the certification action to authorize the sample
month benefits, shall be excluded. Variances that occurred prior to, or at the time of
the certification action to authorize the sample month benefits shall not be excluded
under the provisions of this section.

01-13-12 (Change 3)

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It should be noted that simplified reporting households containing an Able Bodied
Adult Without Dependents (ABAWD) are subject to the additional reporting
requirement specified in regulations at 7 CFR 273.12(a)(1)(vii). These households
must report any changes in work hours that bring the ABAWD individual below 20
hours per week, averaged monthly. For simplified reporting cases containing
ABAWDs the reviewer must continue to carry out the procedures for evaluating the
correctness of Time Limited Participation as specified in section 850.7.

726.1

Variance Determination. The reviewer shall follow these steps

in completing the error determination:
•

Step 1. Overview of Case Correctness. Compare the QC verified
sample month circumstances to the amounts and circumstances used to
authorize the sample month benefits.
This is the Comparison I allotment test provided for by instructions in
section 621. If the difference between these two allotment amounts is
$50 or less, the error determination process is over. If the difference
between these two allotment amounts is greater than $50, the reviewer
shall proceed to Step 2.

•

Step 2. Evaluating the Correctness of the Certification Action.
Correct the worksheet amounts and circumstances for misapplication of
policy and computational errors by the eligibility worker and for
incorrect reporting (including failure to report) by the household at the
time of the certification action that authorized the sample month
benefits.

*
*

Compare the QC verified sample month amounts and circumstances to
the corrected worksheet amounts and circumstances. If there are no
differences between these two allotment amounts, the error
determination process is over. The reviewer shall use the corrected
worksheet amounts and circumstances in the error determination. If
there is a difference between these two allotment amounts, the
reviewer shall proceed to Step 3.
Step 3. Evaluating Compliance with Change Reporting Requirements.
Households are required to report changes that result in the gross
monthly income exceeding 130% of the poverty income guideline for
their household size. The reviewer must determine if any such changes
occurred, and if they did occur whether the change must be included in
the error determination.

01-13-12 (Change 3)

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The reviewer shall compare the sample month income to the
gross income standard for the household. (See Step 1)
If the sample month income does not exceed the gross income
standard then no reportable change has occurred. The reviewer
will use the corrected worksheet amounts and circumstances in
the error determination. (See Step 2)
If the sample month income does exceed the gross income
standard there has been a reportable change and the reviewer
must proceed with the next step to determine whether the
change occurred within the timeframes for reporting and acting
on changes (See Step 4).
•

Step 4. Evaluating Timeframes for When Changes Occurred. If
the sample month was the first or second effective month of an
initial certification action the review procedures in this step shall
not be undertaken, since insufficient time would have passed for
any changes to occur which would be required to be acted on by
the review date. The reviewer must use the corrected worksheet
amounts and circumstances in the error determination. (See Step
2) This exception will also apply if, in following the procedures
in this step, the reviewer is required to examine the
circumstances of a month, such as the second or third month
prior to the sample month, in which the household was not
authorized to participate in the Program for the entire month
(and thus, was not subject to any Program requirements to
report changes in household circumstances). Otherwise, the
reviewer will proceed as follows.
The reviewer shall compare the income from the month
immediately prior to the sample month to the gross income
standard for the household.
If the income from the month immediately prior to the sample
month does not exceed the gross income standard then the
reportable change occurred within the sample month itself, and
would be excluded from the error determination. The reviewer
will use the corrected worksheet amounts and circumstances in
the error determination. (See step 2)
If the income from the month immediately prior to the sample
month does exceed the gross income standard the reviewer must
proceed with the next step to further evaluate whether the
change occurred within the timeframes for reporting and acting
on changes.
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The reviewer must compare the income from the second month
immediately prior to the sample month to the gross income
standard for the household.
If the income from the second month immediately prior to the
sample month does not exceed the gross income standard then
the reportable change occurred within the month immediately
prior to the sample month, and would be excluded from the error
determination. The reviewer will use the corrected worksheet
amounts and circumstances in the error determination. (See step
2)
If the income from the second month immediately prior to the
sample month does exceed the gross income standard then, with
three exceptions, the change has occurred outside of the
timeframes for reporting and acting on changes, and the
reviewer must include the unreported change in the error
determination.
Exception 1 requiring the examination of a third month: Some
State agencies have a Notice of Adverse Action (NOAA) period of
10 days, and have elected to have households report exceeding
the 130% limit within the first 10 days of the month following the
month in which the change has occurred. Because of these
circumstances, when the month prior to the sample month
contains 30 days or less, the entire month prior to the sample
month, and the entire second month prior to the sample month
constitute an exclusionary period for QC purposes. The reviewer
must determine the income from the 3rd month immediately
prior to the sample month in order to make an error
determination. The following chart shows which sample months
are affected by these exceptional circumstances which may
require the examination of a third month.
Month Prior
February (28 or 29 days)
April (30 days)
June (30 days)
September (30 days)
November (30 days)

Sample Month
March
May
July
October
December

Exception 2 requiring the examination of a third month: Some
State agencies have a NOAA period of 10+ days, and have elected
to have households report exceeding the 130% limit within the
first 10 days of the month following the month in which the
change has occurred. Because of these circumstances, the entire
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month prior to the sample month, and the entire second month
prior to the sample month constitute an exclusionary period for
QC purposes. The reviewer must determine the income from the
3rd month immediately prior to the sample month in order to
make an error determination.
Exception 3 requiring the examination of a third month: Some
State agencies have NOAA periods of 10+ days, and have elected
to have households report exceeding the 130% limit within 10
days of the date when the change occurs. If the income from the
second month immediately prior to the sample month exceeds
the gross income standard because of income received by the
household in the last few days of the month (within the QC
exclusionary time frame for the 10+ days NOAA period) the
reviewer must determine the income from the 3rd month
immediately prior to the sample month in order to make an error
determination. If the income from the second month
immediately prior to the sample month exceeds the gross income
standard because of income received by the household prior to
the last few days of the month (outside of the QC exclusionary
time frame for the 10+ days NOAA period) the reviewer will not
need to determine the income from the 3rd month immediately
prior to the sample month in order to make an error
determination.
In all instances where a third month must be examined, if the
income from the third month immediately prior to the sample
month does not exceed the gross income standard then the
reportable change occurred within the second month
immediately prior to the sample month, and would be excluded
from the error determination. The reviewer will use the
corrected worksheet amounts and circumstances (see step 2) in
the error determination. If the income from the third month
immediately prior to the sample month does exceed the gross
income standard then the change has occurred outside of the
timeframes for reporting and acting on changes, and the
reviewer must include the unreported change in the error
determination.
For non-categorically eligible households subject to the gross
income test (the household does not contain an elderly or
disabled member), with one exception (see below), the reviewer
shall include the unreported change in the error determination
by finding the household ineligible.

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For categorically eligible households, and for non-categorically
eligible households that are not subject to the gross income test
(the household contains an elderly or disabled member) the
reviewer shall include the unreported change in the error
determination by completing an allotment determination based
upon household circumstances at the time immediately prior to
the QC exclusionary time frame for the case.
EXCEPTION: If the State agency:

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1) Has implemented the 130% reporting requirement in
Simplified Reporting by giving the household a flat figure based
on the number of persons in the household at the time of
certification and instructing them to report when the household
exceeds that figure, and
2) If the QC reviewer discovers that for the months that must be
examined, the household's income exceeded the gross reporting
limit that the household was given, and
3) If the QC reviewer discovers that an additional person has
joined the household, so that although the household's income
exceeded the reporting figure, it did not exceed the gross
income limit for the new household size, then
4) The QC reviewer will not determine the household
unilaterally to be ineligible. Instead, the QC reviewer will
complete the error determination with an allotment based on all
of the household's circumstances for the time immediately prior
to the exclusionary time frame for the case. These are the same
instructions that the QC reviewer follows in completing the error
determination on cases that are categorically eligible, and also
for non-categorically eligible households that are not subject to
the gross income test (the household contains elderly or disabled
members).

*

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Households receiving benefits under the simplified change reporting option are
not required to report any changes in circumstances other than exceeding 130%
of the poverty income guideline, during the certification period. As a result,
unless a change has been processed since the initiation of the certification
period, or the State has opted to act on all reported changes, the review
procedures outlined in this section shall be used in the error determination
process. If a change in circumstances has been reported or processed since the
time of certification the reviewer shall use the review procedures in section
726.2 if the State has opted NOT to act on all reported changes, or the review

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procedures in section 726.3 if the State has opted to act on all reported
changes.

726.2 Special Circumstances. Reported Changes After the
Initial Authorization of Simplified Reporting Benefits. State agency
is NOT Acting On All Reported Changes. Although it is not required to do so, a
household may report a change in its circumstances, other than an increase in
income that exceeds 130% of the poverty income guideline, during the
certification period. If a change is reported the following special review
procedures apply.
•

Processed Changes.
1. Changes that increase food stamp benefits. The eligibility
worker must process any change in circumstances that would
result in an increase in the household’s benefits. If the
eligibility worker has changed the authorized benefits as a
result of such a change, and the action is in effect as of the
review date, then the reviewer shall determine the
correctness of the new authorized benefit in accordance with
the procedures in section 726.1.
2. Changes that decrease food stamp benefits. The eligibility
worker must not process any change in circumstances that
would result in a decrease in the household’s benefits until
the end of the certification period unless:
a. the State agency has information about the household’s
circumstances considered verified upon receipt, or
b. there has been a change in the PA grant. This also applies
to the GA grant if the GA grant and food stamps are jointly
processed.
If the eligibility worker has changed the authorized benefits
as the result of one of these changes, and the action is in
effect as of the review date, then the reviewer shall
determine the correctness of the new authorized benefit in
accordance with the procedures in section 726.1.
For all other changes, if the eligibility worker has mistakenly
changed the authorized benefits, and the action is in effect as
of the review date, then a variance exists. The reviewer shall
complete the error determination using the corrected
worksheet amounts from the time of the initial authorization
of benefits.

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•

Unprocessed Changes.
1. Changes that increase food stamp benefits. The eligibility
worker must process any change in circumstances that would
result in an increase in the household’s benefits. If the
eligibility worker has failed to change the authorized benefits
as the result of such a change, then a variance exists. The
reviewer shall complete the error determination using
corrected worksheet amounts and circumstances from the
time of the reported change.
2. Changes that decrease food stamp benefits. The eligibility
worker must not process any change in circumstances that
would result in a decrease in the household’s benefits unless:
a. the household has voluntarily requested that its case be
closed
b. the State agency has information about the household’s
circumstances considered verified upon receipt, or
c. there has been a change in the PA grant. This also applies
to the GA grant if the GA grant and food stamps are jointly
processed.
If the eligibility worker has failed to change the authorized
benefits as the result of one of these changes, then a
variance exists. In the case of the first listed change, the
reviewer shall complete the error determination by
considering the household ineligible. For the second and
third listed changes, the reviewer shall complete the error
determination using corrected worksheet amounts and
circumstances from the time of the reported change.
For all other changes, the eligibility worker has acted
correctly if the authorized benefits have not been altered as
a result of a change. The reviewer must determine the
correctness of the benefits in accordance with the procedures
in section 726.1.

In regard to any reported changes, if a change in circumstances was reported
which the State agency was not required to effect as of the review date due to
the regulatory timeframes for acting on reported changes, any variance(s)
resulting from the agency's failure to effect the change shall be excluded in the
error determination.

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726.3 Special Circumstances. Reported Changes After the
Initial Authorization of Simplified Reporting Benefits. State
agency is Acting On All Reported Changes. Although it is not
required to do so, a household may report a change in its circumstances,
other than an increase in income that exceeds 130% of the poverty income
guideline, during the certification period and the State agency has opted to
act on the reported change. If a change is reported the following special
review procedures apply.
•

Processed Changes. The eligibility worker must process any
change in circumstances that is reported. If the eligibility
worker has changed the authorized benefits as a result of such
a change, and the action is in effect as of the review date, then
the reviewer shall determine the correctness of the new
authorized benefit in accordance with the procedures in
section 726.1.

•

Unprocessed Changes. The eligibility worker must process any
change in circumstances that is reported. If the eligibility
worker has failed to change the authorized benefits as the
result of such a change, then a variance exists. The reviewer
shall complete the error determination using corrected
worksheet amounts and circumstances from the time that the
change was reported or became known to the agency.

In regard to any reported changes, if a change in circumstances was
reported or became known which the State agency was not required to
effect as of the review date due to the regulatory timeframes for acting on
reported changes, any variance(s) resulting from the agency's failure to
effect the change shall be excluded in the error determination.

727

Transitional Benefits. Transitional benefits are an option that
a State may choose to provide to “pure” TANF households (households in
which all members are in receipt of TANF benefits) when they leave TANF. A
State may also choose to provide transitional benefits to “mixed” TANF
households (households containing both TANF recipients and members who are
not receiving TANF benefits). If a State chooses to provide transitional
benefits, a household may receive the benefits for a period of not more than
5 months after leaving the TANF program. The eligibility worker must
recalculate the household’s SNAP benefits by removing the TANF to determine
the household’s transitional benefit. Those benefits are frozen at the new
amount throughout the household’s transitional period.
States providing transitional benefits have the option to further adjust the
household’s benefit in the transitional period to take into account changes in

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circumstances that it learns from another program in which the household
participates. In addition, in order to prevent duplicate participation, States
must act when a household member leaves a transitional benefit household and
joins another SNAP household.
The focus of the QC review will be on whether the household is eligible to
receive transitional benefits and whether those benefits were calculated
correctly. If the State chose the option to act on changes from another
program in which the household participates, or if the State agency has
become aware of the fact that a household member has transferred to
another SNAP household, the review will also focus on the accuracy of the
changes.

727.1

Determining Eligibility for Transitional Benefits. The

reviewer must determine if the household meets any of the following criteria
that would render the case ineligible to receive transitional benefits:

*
*

•

the household lost its TANF cash assistance because of a
sanction,

•

the household was disqualified from SNAP,

•

the household is once again receiving TANF benefits,

•

the household is in a category of households designated by the
State as ineligible for transitional benefits.

If the reviewer verifies that any of these conditions apply, then the
case must be reviewed in accordance with standard review
procedures rather than the review procedures for transitional
benefits specified in this section. If the transitional period was
longer than allowable, the case must also be reviewed in accordance
with standard review procedures rather than the review procedures
specified in this section.
If the eligibility worker failed to establish transitional benefits for a
household that should have been receiving transitional benefits, the
case must be reviewed in accordance with review procedures
specified in this section rather than the standard review procedures.

727.2 Changes After the Initial Authorization of Transitional
Benefits. The State agency is only allowed to adjust transitional benefits
*

under two circumstances:

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1. Based on information reported from another program in which
the household participates, if the State agency opted to act on
these changes, and

*

2. The State agency has become aware of the fact that a household
member has transferred to another SNAP household. The State
agency must act in this change in order to avoid duplicate
participation.

*
*
*
*

However, the household may choose to be recertified at any time during the
transitional period. Changes after the initial authorization of transitional
benefits must be reviewed as follows:
•

State opted to act on changes reported by another program in
which the household participates. If the eligibility worker has
changed the authorized transitional benefit as the result of the
State’s option, and the action is in effect as of the review date,
then the reviewer must determine the correctness of the new
transitional benefit. (See section 727.3.) If the eligibility worker
has failed to change the authorized transitional benefits as the
result of such a change, and the change should have been in
effect as of the review date, then a variance exists. The reviewer
must complete the error determination using the corrected
worksheet amounts from the time of the reported change.

•

State opted not to act on changes reported by another program
in which the household participates. If the eligibility worker has
changed the authorized transitional benefit and the State has not
chosen the option, then a variance exists. The reviewer must
complete the error determination using the corrected worksheet
amounts from the time of the initial authorization of transitional
benefits. (See section 727.3.)

•

The household chose to be recertified. The household has an
option of being recertified at any time during the transitional
benefit period, thus ending transitional benefits. Those cases will
be reviewed using standard review procedures.

•

Duplicate Participation. If a transitional benefit household
member moves out and becomes a member of another certified
household, the eligibility worker must act on this change to avoid
possible duplicate participation. Therefore, the person leaving
(along with that person’s income and deductible expenses) must
be removed from the transitional benefit household. If the
eligibility worker has failed to change the authorized transitional
benefits as the result of such a change, and the change should

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have been in effect as of the review date, then a variance exists.
The reviewer must complete the error determination using the
corrected worksheet amounts from the time of the change. If the
eligibility worker has changed the authorized transitional benefits
as the result of such a change, and the action is in effect as of the
review date, then the reviewer must determine the correctness of
the new transitional benefit in accordance with the procedures in
section 727.3.

727.3

Variance Determination. There are separate procedures to

follow depending on whether the State has chosen the option to act on
changes. The procedures for when the State has chosen the option to act
on changes must also be followed in situations when a household member
leaves a transitional benefit household and joins another SNAP household.
The reviewer must follow these steps in completing the error determination:
•

The State did not choose the option to act on changes from
another program in which the household participates:

Note: Allotment Test Comparison I is not done first in this process.
By doing the steps directed below, if the transitional benefit is
correctly calculated, the review process is minimized by eliminating
verification of the sample month circumstances.
Step 1. The reviewer must determine whether the household is
eligible to receive transitional benefits.

*
*
*
*

Step 2. Determine whether the transitional benefit amount was
correct based on the SNAP allotment authorized prior to the
calculation of the transitional benefit. To do this, the reviewer
must use the SNAP benefits for the last month TANF benefits were
received, subtract the TANF benefit and then recalculate the SNAP
benefits. If there is no difference greater than $50 then there is no error
which must be included in the calculation of the official error rate for
the State agency and the QC review process is over. If there is a
difference greater than $50, go to step 3.

*
*
*
*

Step 3. Verify the sample month’s amounts and circumstances.
Calculate a benefit amount based upon the sample month
circumstances. Compare to the allotment actually received. (This
step is similar to Comparison I in the QC review process and provides
the State a second opportunity to have a correct case.) If there is no
difference greater than $50 then there is no error which must be
included in the calculation of the official error rate for the State
agency and the QC review process is over. If the difference is greater
than $50, there is an error in the case which must be included in the
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calculation of the official error rate for the State agency. Use the
lower amount from either step 2 or step 3.
•

*

The State chose the option to act on changes from another
program in which the household participates, or a household
member leaves a transitional benefit household and joins
another SNAP household:

Note: Allotment Test Comparison I is not done first in this process.
By doing the steps directed below, if the transitional benefit is
correctly calculated, the review process is minimized by eliminating
verification of the sample month circumstances.
Step 1. The reviewer must determine whether the household is
eligible to receive transitional benefits.
Step 2. The reviewer must determine if any changes have occurred
that were required to be included in the transitional benefit
calculation because they were reported to another Program and
acted upon, or a household member has left the transitional benefit
household and joined another SNAP household.
Step 3. Determine whether the transitional benefit amount was
correct based on the SNAP allotment authorized prior to the
calculation of the transitional benefit. To do this, the reviewer must
use the SNAP benefits for the last month TANF benefits were
received, subtract the TANF benefit, account for any changes that
should have been made and then recalculate the SNAP benefits. If
there is no difference greater than $50 then there is no error which
must be included in the calculation of the official error rate for the
State agency and the QC review process is over. If there is a
difference greater than $50, go to step 4.
Step 4. Verify the sample month’s amounts and circumstances.
Calculate a benefit amount based upon the sample month
circumstances. Compare to the allotment actually received. (This
step is similar to Comparison I in the QC review process and
provides the State a second opportunity to have a correct case.) If
there is no difference greater than $50 then there is no error which
must be included in the calculation of the official error rate for the
State agency and the QC review process is over. If the difference is
greater than $50, there is an error in the case which must be included
in the calculation of the official error rate for the State agency. Use
the lower amount from either step 3 or step 4.

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730

BEGINNING MONTHS. Households otherwise subject to
retrospective budgeting are certified under prospective eligibility and
budgeting during "beginning" months. The first beginning month cannot follow
any month in which the household was previously certified. The reviewer must
determine which households are eligible for beginning month treatment and if
the State had one or two beginning months.
731

Verification Time Periods. Since households entitled to
"beginning month" treatment are subject to prospective eligibility and benefits,
the reviewer shall verify household circumstances AORD except that income
and deductions shall be verified for the entire issuance month. Monthly income
may be averaged or converted during beginning months.
732

Changes. Beginning month treatment does not affect the

household's reporting requirements unless the State has a waiver. Therefore,
the following procedures apply.

732.1 Elements Subject to the Change Reporting
Requirements. Use the change reporting procedures in section 722.
732.2 Elements Subject to the Monthly Reporting
Requirements. (This section applies the monthly reporting requirements to

prospective budgeting for beginning months.)
•

First Beginning Month. When the sample month is the first
beginning month, all unreported changes that became known to
the household subsequent to the interview shall be excluded.

•

Second Beginning Month. When the sample month is the second
beginning month, the following procedures apply.
1. One-Month System. Any unreported changes that occurred
or became known to the household prior to the budget month
which will continue through the budget month shall be
included in the error determination. (An exception shall be
made to this provision in those situations where a household
has applied for initial benefits after the 15th of the month,
and receives a combined first and second allotment. In such
situations, any changes occurring in the first month, which
the State agency is not required to effect for the second
month, shall be excluded from the error determination
process.) Any variances that occurred or became known
during the budget month shall be excluded. For reported
changes, use the procedures in section 723.1.
2. Two-Month System. For the second beginning month, all
unreported changes that became known to the household
subsequent to the interview shall be excluded. Variances
resulting from changes that occurred or became known to the
household prior to that time shall be included. If a household
applies in one month, but is not interviewed until the

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following month, the first monthly report will not be due until
the third month.
In such cases, the missing report review procedures in section
751 shall not apply for the first three months.

740

MASS CHANGES.

741

General. State agencies are required to change the benefit level

of individual households when certain Federal and State agency changes are
made which affect the entire food stamp caseload or a significant portion of
the caseload. Individual notices of adverse action cannot be sent for these
changes. Variances that result from untimely implementation as defined by
certification requirements, or incorrect implementation shall be included in
the error determination.

741.1

Regulatory Changes. When the Federal Food Stamp Program
regulations are changed, the implementation dates are specified in the
regulations. For purposes of prospective eligibility and prospective allotments,
the implementation date is that specified in the regulations. For purposes of
retrospective eligibility and retrospective allotments, the implementation date
is the first budget month that includes the implementation date. For example,
if the implementation date for a new regulation is January 1, the first
allotment in a two-month, retrospective system that would be affected would
be the March allotment. This policy applies to all Federal regulatory food
stamp changes unless otherwise specifically stated in the regulations except for
adjustments to eligibility standards, allotments, and deductions that go into
effect for all households at the same time. (See instructions in section 741.2.)
Variances resulting from untimely application of the regulatory change to the
case under revision, in accordance with certification requirements, or incorrect
implementation shall be included in the error determination. (See section 756
for instructions regarding the 120-day variance exclusion period.)

741.2

Periodic Food Stamp Adjustments. Federal adjustments to

the eligibility standards, allotments, and deductions and any annual seasonal
State adjustments to utility standards go into effect prospectively for all
households at a specific point in time. Variances that result from untimely
implementation as defined by certification requirements, or incorrect
implementation shall be included in the error determination.

741.3

PA Changes. When the State agency has at least 30 days' advance

knowledge of the amount of overall adjustments to PA payments, the State
agency shall change food stamp benefits in the same month as the PA change.
If the State agency has less time, it is required to make the food stamp change
no later than the month following the PA change.

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Variances that result from untimely processing, in accordance with
certification requirements, or incorrect processing of food stamp changes shall
be included in the error determination.
This section also applies to GA mass changes if the State agency administers
the GA program.

741.4

Social Security and Other Federal Mass Changes. State

agencies are required to make food stamp changes to reflect cost-of-living
adjustments (COLAs) and any other mass changes under RSDI, SSI and other
Federal programs such as veteran's assistance under Title 38 of the United
States Code and the Black Lung Program when information on COLAs is readily
available and applicable to all or a majority of those programs' beneficiaries.

750

•

Monthly Reporting Households. These households are required
to report income changes resulting from Federal mass changes
(other than PA) on their monthly reports. The reviewer must
handle such changes as any other income change that was
required to be reported on the monthly report. Refer to section
723 on monthly reporting to determine which variances to
include.

•

Non-monthly Reporting Households. The State agency is
required to automatically adjust the food stamp benefit level for
households affected by these mass changes. Variances resulting
from untimely processing, in accordance with certification
requirements, or incorrect processing of food stamp changes
shall be included in the error determination. (The reviewer
should check to see if the State agency's procedures provide for
using a flat percentage rather than the exact amount of a social
security or SSI change.) The food stamp change must be made no
later than the second allotment after the change in income
became effective. For retrospectively budgeted households, the
change shall not be made prior to the first budget month it
became effective. For example, an increase in SSI in January in
a two-month retrospective system would be made when January
becomes the budget month, i.e., March.

OTHER INCLUDED AND EXCLUDED VARIANCES. Refer to

Chapter 6 for the error determination process, Chapters 8-11 for errors by
specific element.

751

Missing Reports. The reviewer shall not determine the household

ineligible solely because a required report is missing. The reviewer shall verify

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the household's circumstances in the normal manner and compare them to the
worksheet. Any variances that result when there is a missing report shall be
included in the error determination, except the specific variances described in
sections 754-757.

752

Expired Certification Periods. The reviewer shall not
determine a household ineligible solely because its certification period has
expired. The reviewer shall verify the household's actual circumstances for the
appropriate sample or budget month and compare them to the worksheet. Any
variances which result shall be included in the error determination, except the
specific variances described in sections 754-757.
753

Expedited Service. For expedited service cases, variances in
elements for which verification was postponed are excluded provided the
household's identity was correct. Such elements need not be verified by the
reviewer. This provision only applies to those households certified in the
sample month that were correctly processed under the procedures for
expedited service and entitled to expedited services (based on the application
and the interview). If a lack of documentation prevents the reviewer from
determining that the case was certified under expedited procedures, the
review procedures in section 753 do not apply.
The provision that variances will be excluded in elements for which verification
was postponed normally is applicable only to the first months' issuance.
However, in some situations, the household applies after the 15th of the
month, and is entitled to expedited service and for waived verification for, the
first and second months' benefits. In such situations the variance exclusion
provisions of this section will apply to appropriate elements for both the first
and second months.
This provision also applies when the household was not determined to be
eligible for expedited service at the time of application but during the
interview was determined eligible provided:
•

The household was not determined eligible for expedited service
at the time of application because sufficient information was not
available on the application to make that determination, or

•

The household's circumstances changed between the time of
application and the time of the interview such that the
household became eligible for expedited service after it
submitted the application.

754

Information From a Federal Source. Any variance resulting
from use by the State agency of information concerning a household's or
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individual's circumstances received from any Federal source is excluded
provided that such information is processed correctly by the State agency.

755

SAVE. Two variances relating to the SAVE program are excluded.
•

A variance based on a verification of non-citizen documentation
by INS if the State agency properly used SAVE and the State
Agency provides the reviewer with:
1. The non-citizen’s name;
2. The non-citizen’s status; and
3. Either the Alien Status Verification Index (ASVI) Query
Verification Number or the INS Form G-845, as annotated by
INS.

•

A variance based on the State agency's wait for the response of
INS to the State agency's request for official verification of the
non-citizen’s documentation if the State agency properly used
SAVE and the State Agency provides the reviewer with either:
1. The date of request if the State agency was waiting for an
automated response; or
2. A copy of the completed Form G-845 if the State agency was
waiting for secondary verification from INS.

756

Application of New Regulations. The reviewer will exclude

variances resulting from the application of a new Food Stamp Program Federal
regulation or implementing memorandum for a 120-day period of time in
accordance with specific instructions contained in the regulation or
implementing memorandum, provided that the State agency has implemented
the regulation. The variance exclusion period will only fully apply if the State
agency has implemented the regulatory change in a timely manner and in
accordance with the provisions of the regulatory change.

757

Federal Written Policy. The reviewer will exclude variances

resulting from incorrect written policy that a State Agency acts on that is
provided by a USDA employee authorized to issue Food Stamp Program Policy
and that the State agency correctly applies.

10-01-11 (Change 2)

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CHAPTER 8
NON-FINANCIAL ELIGIBILITY CRITERIA
800

GENERAL. This chapter discusses verification requirements and

error determination for non-financial eligibility criteria.

810

AGE AND SCHOOL ATTENDANCE.

811

Age - 110. Age may be verified for all household members. At a
minimum, age must be verified when eligibility and/or allotment are affected.
For example, students under 18 years of age with earned income or persons age
60 and over with medical expenses or resources.
For standard verification the reviewer will use the following:
• Birth certificate
• Adoption papers or records
• Hospital or clinic records
• Church records
• Baptismal certificate
• Bureau of Vital Statistics
• U.S. passport
• Family Bible records
• Indian census records
• JTPA document assigning to or placing in an institution of higher
learning
• Social Security records
• Military records

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• School records, or a statement signed by school authorities
• Census records
• Driver's license
• Court support order
• Juvenile court records
• Child welfare records

812

School Enrollment. School enrollment is verified in connection

with children under 18 who have earned income. School enrollment is also
verified with respect to household members who are 18 and over, but under 50
and enrolled in post-secondary, vocational, trade, etc. schools and to
"students" as defined by the Food Stamp Program who are enrolled in
institutions of higher education.

812.1

Student Status - 111. A person enrolled at least half-time in an

institution of higher education is not eligible to participate in the Program
unless the person meets certain eligibility criteria. The enrollment status shall
begin on the first day of the school term. Such enrollment shall be deemed to
continue through normal periods of class attendance, vacation and recess
unless the person graduates, is suspended or expelled, drops out, or does not
intend to enroll for the next normal school term (excluding summer school).

812.2

Standard Verification. School Authorities.

820

CITIZENSHIP AND NON-CITIZEN STATUS - 130. Only citizens

and certain legal non-citizens are eligible to participate in the Food Stamp
Program.

821

U.S. Citizenship (By Birth or Naturalization). When a

household's statement that one of its members is a U.S. citizen is questionable,
the reviewer must verify whether or not the person is a citizen.

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For standard verification the reviewer will use the following:
•

Birth certificate

•

Naturalization papers from the Immigration and Naturalization
Service (INS) such as INS Forms I-179 or I-197

•

Passport

•

Hospital record of birth

•

Baptismal record, only when place and date of birth is shown

•

Family Bible

•

Military service papers

•

Indian census records

•

Voter registration card

If none of the above is available and the household can provide a reasonable
explanation why verification is not available, the reviewer shall accept a signed
statement from someone who is a U.S. citizen who declares, under penalties of
perjury, that the member in question is a U.S. citizen.
The signed statement shall contain a warning of the penalties for helping
someone commit fraud, such as, "If you intentionally give false information to
help this person get food stamp benefits, you may be fined, imprisoned, or
both."

822

Non-Citizen Status. If a household member is not a citizen, non-

citizen status must be verified. Verification is not required if the household
member elected not to participate in the Program because they did not wish to
provide the immigration status or Social Security Number. Verification of noncitizen status can only be accomplished through the documentation specified
for use at certification.
There are two basic ways that a non-citizen may participate in the Food Stamp
Program.

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1) There are some individuals who are eligible based upon their
origin such as:
• American Indians born outside the US
• American Indians eligible for special programs and services
• Hmong or Highland Laotian, spouses and dependent children
2) There are other individuals who must be qualified and eligible:
i. Qualified
• Lawfully admitted for permanent residence
• Granted asylum
• Refugees
• Paroled into US for at least 1 year
• Deportation being withheld
• Granted conditional entry
• Battered or subjected to extreme cruelty in US
• Cuban or Haitian entrant
ii. Eligible (must meet an eligibility requirement to receive
Food Stamps)
• Residing in the US for at least 5 years
• 40 quarters of coverage by SSA
• Time limitation under certain qualifications
• Military connection
a. veteran
b. active duty
c. spouse/dependent of a veteran or active duty
• Lawfully residing in US and one of the following:
a. receiving assistance for blind or disabled
b. residing in the US on 8-22-96 and born on or
before 8-22-1931
c. now under 18 years old
•

Verification of qualifying status and eligibility are done following
certification guidelines. In the case of immigrant status, use only
INS documentation and DOJ guidance to verify qualifying status
and eligibility status. Some individuals will require additional
verification of quarters of coverage or military related
requirements.

•

In the case of non-citizens who qualify for participation in the
program as a result of veteran’s status or military service, the
reviewer must verify the status of the individual through the use
of Department of Defense (DOD) records and forms. Only DOD

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documentation is acceptable to verify the military service status
of these individuals.
•

822.1

In the case of non-citizens who qualify for participation in the
program as a result of 40 qualifying quarters of work, the
reviewer shall verify the eligibility of the individual(s) through
information from Social Security Administration (SSA) records
made available to the State agency, or through employer work
records. Reviewers are not required to re-verify the status of the
non-citizen with SSA if information is available from the State
Verification and Exchange System (SVES), which confirms the
status of the non-citizen, and the quarters of coverage history
system (QCHS), which provides the number of qualifying quarters
of work.

Reviewer Contact With INS. Only INS documentation is

acceptable. If verification in the case file is not adequate and the non-citizen
is unable to provide INS documentation, the reviewer shall obtain the noncitizen’s written consent before contacting INS for verification of non-citizen
status. If the non-citizen will not provide written consent, the reviewer shall
not contact INS. If verification of eligible non-citizen status is not provided or
not provided on a timely basis, the non-citizen shall be considered ineligible.

822.2

Variances.
•

If the reviewer determines that a household member(s) reported
to be a U.S. citizen or an eligible non-citizen is actually not a
citizen or is an ineligible non-citizen, the case shall be reported
as containing a client-caused variance.

•

If the reviewer determines the agency had information of the
status of the household member(s) as non-citizen(s) that did not
meet the criteria of any of the classes eligible for participation in
the program, and failed to take appropriate action to remove the
individual(s) from the program, the case shall be reported as
containing an agency-caused variance.

•

A variance also will be coded if the reviewer determines that the
eligibility worker failed to verify the eligibility status of a noncitizen, as required, and the non-citizen is ineligible for the
program.

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In making the error determination, the reviewer will exclude the ineligible
member(s) in determining the food stamp benefits for the sample month. The
income and resources of any ineligible member(s) shall be handled in
accordance with certification policy.
In addition, if the reviewer determines that any eligible non-citizen(s) have
been improperly excluded from the household, then a variance will be cited.
The error determination will be completed by including the eligible noncitizen(s) in the household.
The appropriate time frames and requirements for reporting and acting on
changes in the household circumstances shall apply. Deficiencies, other than
those referenced above, shall not be included in the error determination.

823

Reports Concerning Illegal Non-citizens. If the reviewer

determines the presence in the household of a person or persons who have
entered or remained illegally in the United States, and there is no
documentation that INS has not declined deportation action, this information
must be entered on the narrative pages of the worksheet in column 3. A report
must be forwarded to the local agency identifying the illegal non-citizen as a
non-household member. QC staff must not contact INS regarding information
obtained relative to illegal non-citizens.

830

RESIDENCY - 140. The reviewer must determine where the

household lived AORD. In unusual cases (such as homeless households, some
migrant farmworker households or households newly arrived in the area) where
verification of residency cannot reasonably be accomplished, the reviewer must
document that he/she attempted to verify residency. Verification of residency
is not required for categorically eligible households.

831

Standard Verification. The reviewer will use the following:
•

Statement from a non-relative landlord

•

Rent or mortgage receipt from non-relative landlord that shows
the address

•

Official records confirming ownership of a house at the address
given

•

Employer's statement

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832

•

List of residents from a responsible official of a drug/alcoholic
treatment center or group home, who is not the household's
authorized representative

•

Tax office records

•

Post Office records

•

Church or synagogue records

•

Utility company records or bills

•

Signed statement, or documented verbal statement, from nonrelative

•

Item of mail with household name and address with postmark or
date as of the review date

•

Other property records

•

Current driver's license

•

Department of Motor Vehicles document(s)

•

Voter Registration

Resident of Institution. If a household is found to have been a

resident of a type of institution which makes the household ineligible, that fact
should be documented under this element and also noted under Element 150 Household Composition.

840
HOUSEHOLD COMPOSITION AND LIVING
ARRANGEMENT - 150. The reviewer must verify household composition.
This is done by determining:
• If any individuals were included in the household who should have been
determined ineligible;
• If any were not included who should have been included, and who these
individuals were.
This includes household eligibility with respect to residence in institutions
as verified under Element 140 RESIDENCY.

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841

Categorically Eligible Households.

The reviewer must first verify the household's correct composition.
The reviewer must then verify whether all household members received or
were authorized to receive PA, SSI, State or local GA payment or benefits from
a State Program conferring categorical eligibility.
The reviewer need not review those elements of eligibility which are
superseded by categorical eligibility, i.e., resources, gross and net income
limits, social security number, residency and sponsored non-citizen
information. Included variances cannot exist in these elements.
Even if a household is categorically eligible, and thus exempt from gross and
net income limits, the reviewer is still required to determine the household's
income for the appropriate budget or sample month in order to establish the
correct benefit level.

842

Method of Verifying Household Composition. The following

discussion of verification of household composition is presented along the lines
of a typical interview on this element.

842.1

Household Statement About Membership. The reviewer

must ask the household to state who was in the household AORD and the
relationship or significance among the various individuals.
•

Household Statement Agrees With Case Record. If the
household's statement agrees with the case record, the reviewer
notes this and obtains the name of a collateral contact the
household believes to be best able to verify household
composition. (The criteria for acceptable collateral contacts for
this element are discussed in section 842.3.) If the household
cannot provide a collateral contact, the reviewer must try to
obtain the verification from other collateral contacts.
Possibilities include: landlords, school officials, ministers,
physicians, visiting nurses, and neighbors.

•

Household Statement Disagrees With Case Record. If the
household's statement does not include person(s) listed in the
case record as member(s) of the household, the reviewer must
ask about the status of these individuals.

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1. Household Acknowledges Other Members. If the household
acknowledges other members, the reviewer would proceed with
the routine verification using collateral contacts.
2. Household Disclaims Person Shown in Case Record. If the
household asserts that a person shown in the case record was not
a member AORD, the reviewer should first try to find out from
the household where the person was at that time.
3. If the household asserts that the person was elsewhere, the
reviewer should try to verify that assertion using the evidence
under Element 140, RESIDENCY.
4. If the household admits that the person was present but claims
he is not a household member, the reviewer must verify this
issue. This should be done by obtaining specific information
about the person and discussing household composition policy.
This should lead to a determination of whether there is proof
that the person was or was not a household member (for
example, a live-in attendant, boarder, or a member of a group
sharing living quarters but not purchasing and preparing food
together with that household.) If the discussion resolves the
difference, then the reviewer would verify the individual’s status
as a household or non-household member using collateral
contacts. If the difference is not resolved, then collateral
contacts would be used as discussed in sections 842.3, 842.4 and
842.5.

842.2

Inquiry to Household About Other Members. During

discussion of household composition, the household may offer information
about household members in addition to the members shown in the case
record. Whether or not this happens, the reviewer must ask if there were any
other household members as of the review date.
•

Household Acknowledges Other Members. If the household
acknowledges other members, the reviewer needs to obtain the
appropriate information about those individuals and proceed
with the routine verification using collateral contacts.

•

Household Denies Any Other Members. Reviewer action when
the household denies that there were additional household

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members depends on whether there is reason to doubt the
household's statement.
1. Reviewer Has No Reason To Doubt Household's Statement. If
the reviewer has no reason to doubt the household's denial that
there were any other members AORD, and there is no contrary
evidence, then further discussion about this matter with the
household is not necessary.
2. Reviewer Has Reason To Doubt the Household's Statement.
The reviewer may doubt the household's statement for several
reasons. For example, the reviewer may observe other
individuals in the house or observe evidence of others living
there. When a reviewer has such reason to doubt a household's
denial of additional individuals, the reviewer must specifically
ask the household about such individuals. If the household
continues to deny that the individuals were household members,
the reviewer must pursue verification as outlined in section
842.1: Household Disclaims Person Shown in Case Record; If the
household asserts that the person was elsewhere; and If the
household admits that the person was present but claims he is
not a household member.

842.3 Inquiry to Collateral Contacts About Household
Members. Reviewers are required to verify household composition with at
least one individual who is not a household member and does not live with the
household.
Evidence for standard verification of household composition is information from
a collateral contact that positively identifies the household members.
The reviewer must ask the collateral contact to name the individuals who live
in the household.
Reviewers should avoid asking collateral contacts merely to confirm that a list
of names identifies those individuals.
•

If the contact's names match the names of the individuals in the
household as determined by the reviewer from the household
interview, the household composition is considered verified.

•

If this level of verification is unsuccessful, documentation on the
worksheet must show the reason.

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Collateral contacts may state that there are additional members in the
household other than those the reviewer has already identified in interviewing
the household. Whether or not such statements are made, the reviewer must
ask collateral contacts if there are other household members and document the
worksheet with the response.

842.4 Resolving Inconsistencies in Information About
Household Composition. Reviewers must resolve inconsistencies in
information about household composition by contacting collateral contacts or
by recontacting the household, as appropriate. Such inconsistencies can arise
in the following situations:
•

Household Claims Individual Lives Elsewhere. When the
household claims that an individual shown in the case record as a
household member was not a member.

•

Household Denies Individual Living With Household Is a
Household Member. When a household asserts that an individual
living with it was not a household member.

•

Collateral Contacts Indicate Additional Members. When a
collateral contact indicates that there was an individual who was
a member of the household to which the household did not
admit.

•

Collateral Contacts Indicate a Claimed Household Member Was
Not a Member. When a collateral contact states an individual
who the household claimed was a household member was not.

Several aspects of this situation need to be noted.
•

First, the statement must be positive. For example, a landlord
states he knows for a fact that a certain individual moved out
prior to the time when the individual would have been included
in the household. The household would need to be re-contacted
in this type of situation.

•

Second, in some situations, recontacting the household is not
necessary. For example, a minister or physician verifies that an
individual, whom the household claimed as a member, died prior
to the time the individual could have been included as a
household member.

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842.5

843

Actions To Resolve Inconsistencies.
•

With Collateral Contact Verification. If, as a result of the
reviewer recontacting it, the household acknowledges a member
other than ones it had previously acknowledged and/or
acknowledges a claimed member was not one, the reviewer
proceeds with the review on the basis of that adjusted household
composition. If the household contends that its assertion is
correct and the reviewer does not have strong evidence to the
contrary, then the reviewer must use the household composition
based on the information provided by the household.

•

Reviewer Action When Verification Is Unobtainable or
Inadequate. When the reviewer cannot obtain verification or it
is inadequate, either for the entire household or some of its
members, the household's statement must be used for household
composition.

Residents of Certain Institutions. When AORD a household is

found to have been a resident of an institution that makes the household
ineligible, verification must be documented under Element 140 - RESIDENCY,
and a note of that made under this element.

844

Error Determination. In the majority of cases with a variance in
household composition, the variance will be handled by simply adding or
subtracting from the household size the individuals and their circumstances.

844.1

Household Consolidation/Movement. The procedures in this

section apply to situations involving two or more separately certified
households, regardless of size, that should have been certified as one
household AORD.
This may or may not involve movement of the households. One example of this
would be individuals who lived together who should have been certified as one
household but were erroneously certified as two or more households.
These procedures apply to whichever household is sampled.
They do not apply to duplicate participation situations (see 844.2) or situations
involving an individual member of a certified household moving in with another
separately certified household (see 844.3).

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•

Include all households with their income, deductions, resources,
etc., in a computation of what the household should have
received for the sample month;

•

Add up all SNAP issuances received by all individuals who
should have been included in the household for the sample
month;

•

Compare the allotment amount the household should have
received to the combined total issued for the sample month;
and

•

If the difference is $50.00 or less, the allotment issued to the
case under review will be reported as not containing an error
included in the error rate. If the household was ineligible, the
allotment issued to the case under review will be reported as being
in error.

•

If the entire household was eligible, but was underissued or
overissued by more than $50.00 the reviewer shall:

*
*
*

*

1. Calculate the percentage that the allotment issued to the
case under review is of the total issued;
2. Multiply the amount under or overissued by this percentage,
rounding the answer down to the nearest whole dollar figure;
3. If the result is $50.00 or less, the allotment issued to the
case under review will be reported as not containing an error
included in the error rate;

*
*
*

4. If the result is more than $50.00, the result will be reported
as the amount in error for the case under review.

*
*

Note: Although the total amount of SNAP benefits issued to the
household is used to calculate the dollar loss, only the amount
authorized to the case selected for review will be reflected on the
Form FNS-380-1 as the allotment amount.

01-13-12 (Change 3)

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Example of Determining the Amount of Error when Households Should
Have Been Combined: There were two certified households that should have
been certified as one household. The first certified household which was
selected for review had 3 members and received an allotment of $248. The
second certified household had 2 members and received an allotment of $53.
When you consider all of the individuals and what benefits they should have
received as a single household, it is determined that they were entitled to
$107 in benefits.
Household #1 allotment - $248 + Household # 2 allotment - $53 = $301
$301 allotment the household received - $107 allotment the household should
have received = $194 overissuance

*

There is greater than a $50 difference therefore you must:
1. Calculate the percentage that the allotment issued to the
case under review is of the total issued;
$248
$301

x 100

=

82.39%

2. Multiply the amount under or overissued by this
percentage, rounding the answer down to the nearest
whole dollar figure;
$194 overissuance
x 82.39%
$159.83

*

round down to $159

Since this is greater than $50, the error for the case under review is $159.

01-13-12 (Change 3)

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844.2 Duplicate Participation By All or Some Members of the
Same Household. The procedures in this section are used when all
members of one certified household are also participating as members of
another separately certified household, and may or may not involve movement
of the household. These procedures apply if either household is sampled. *
When the reviewer verifies that an
individual or group of individuals
have been included as household
members in the case under review,
and the individual(s) received an
allotment as a separate household
for the sample month, the reviewer
shall determine which case was the
first to be correctly authorized to
receive benefits. If that case is
sampled it would be correct for this
element.

Example of the Review Procedure for
Duplicate Participation: For example,
the State agency correctly certified a
household with five members (Case A).
The State agency later certified two
members of household A as another
household (Case B). The result is that
all members of Case B are duplicate
participants. If A is sampled, A is
correct for this element. If B is
sampled, there is a variance as the
members were already included in Case
A, and the total allotment issued to
household B should be considered an
overpayment.

Households on Indian reservations are not eligible to participate in both the
Food Distribution and Food Stamp Programs simultaneously. A household that
participated in both programs in the sample month is ineligible for food stamps
if it was certified for the Food Distribution Program first.

844.3 Transfer/Movement of Individuals Into, Out of, and
Between Food Stamp Households. The procedures in this section
pertain to an individual member(s) of one certified household
moving/transferring into another certified household, and may or may not
involve duplicate participation of the individual member. These procedures
apply if either household is sampled. This section does not apply to
movement/consolidation of the entire household. (See section 844.1.)
NOTE: If an individual is certified as a one-person household, and moves into
another certified household, use review procedures at 844.1 or 844.2 as
appropriate. When one or more individuals move from one certified household
to another certified household, the reviewer must ensure that the individual(s)
and any associated income and/or deductions are not used in both households'
budget calculations. If the agency policy requires that individuals and their

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circumstances be included in the gaining household AORD, but fails to include
them in the gaining household's budget calculations, a variance exists and the
reviewer shall include the individual(s) and their circumstances in the gaining
household's budget for the issuance month. Similarly, if the agency fails to
remove the individual(s) and their circumstances from a losing household's
budget AORD, a variance exists and the reviewer shall remove the individual(s)
from the losing household's budget.
It is important to note that a problem in a case related to the case under
review through movement of individuals does not necessarily result in a
variance in the case under review. For example, if the case under review is a
household losing an individual to another participating food stamp household
and the transfer should have been made AORD, no variance would exist in the
case under review if the individual and his/her circumstances had been
removed from this household, even if the individual was never added to the
gaining household's budget. Thus, the determination of whether a variance
exists in the case under review depends upon whether the case is the
household gaining or losing members and whether the change must be made
considering reporting requirements.
The following table illustrates when a variance exists in a case under review
and assumes that the agency should have acted AORD.

Situations
Gaining household
under review
Losing household
under review

Individual(s)
included in both
households

Individual(s) not
included in either
household

Individual(s)
included in losing
household only

No variance in
household
composition
Variance- Remove
individual(s) from
household

Variance- Add
individual(s) to
household
No variance in
household
composition

Variance- Add
individual(s) to
household
Variance- Remove
individual(s) from
household

845
New Members Added to a Retrospectively Budgeted
Household - Two-Month System.
•

When a household reports the addition of an individual during the
processing month of a two-month system, the agency may have
to include the individual(s) and their circumstances in the
household's eligibility and allotment determinations for the
sample month's issuance even if the change is reported after
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submission of a monthly report (the agency would not include an
individual who was already participating as part of another
household in the sample month.) If the State agency failed to
make a required change, the variance is included in the error
determination.
•

•

If a new member was not certified for the program prior to
joining a retrospectively budgeted food stamp household, the
new member must be added using prospective eligibility and
budgeting procedures for the new member. Household
composition must be determined prospectively and the new
member's circumstances must be determined prospectively and
added to the household's prospective or retrospective
circumstances depending upon whether the household was
subject to prospective or retrospective eligibility. The new
member's circumstances for the issuance month must be added
to the household's circumstances for the budget month for the
calculation of benefits.
Example of adding new members to a
retrospectively budgeted household:
For example, a two-person household
was participating in a two-month
retrospective budgeting system based
on monthly income of $200. On July
29, in the processing month, the
household reported a new member
moved in. He had $100 unearned
income in June and July and
anticipated no income in August. The
new member was not previously
certified for food stamps. The State
must add the new member
prospectively to the retrospectively
budgeted household for the issuance
month of August. Therefore, eligibility
and the allotment would be based on
three members with $200 income.

If a new member
moved out of one food
stamp household and
into a retrospectively
budgeted household,
with no break in
participation, the new
member must be
added to the household
using the new
member's
circumstances from
the budget month for
allotment purposes.
Whether the new
member's
circumstances will be
determined
prospectively or
retrospectively for eligibility purposes will depend upon whether
the household was subject to prospective or retrospective
eligibility.

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846

Separated Households. If a household separated and became

two or more separate food stamp households at some time prior to the date for
which household composition must be determined, use the following
procedures to determine which household to review.
If the State agency assigns case numbers by social security number, review the
household with the majority of members who were certified as members of the
sampled case provided that the majority contains an adult member who was
certified as a member of the sampled case. If there is no majority or no adult
from the sampled household in the majority, review the household that
contains the individual with the social security number that corresponds to the
sampled case.
If the State agency assigns case numbers by some means other than social
security number, review the household that would have retained the sampled
case number using the State's procedures. If neither household would have
retained the case number, review the household that contains the majority of
the members who were certified as members of the sampled case provided that
the majority contains an adult member who was certified as a member of the
sampled case. If there is no majority or no adult from the sampled household
in the majority, review the household that contains the individual who was
head of the household before it separated.

847

Recipient Disqualification - 151. The reviewer must complete

a check for all adult household members, 18 years of age or older, with the
Disqualified Recipient Subsystem (DRS), in order to verify the possible presence
of individual(s) in the household who have been disqualified from participation
in the food stamp program AORD. If the DRS check does not indicate the
presence of any disqualified members in the household, and no indication of
information to the contrary has arisen during other collateral contacts, then no
further verification is required. If the DRS check does indicate the presence of
a possible disqualified individual(s) in the household, the reviewer must verify
the eligibility status of the individual(s) by contacting the agency that
submitted the information to DRS.
If the reviewer determines that AORD a household member is an individual
disqualified from the food stamp program, the case shall be reported as
containing a variance. The error determination shall be completed by
excluding the individual from the household and including the correct share of
the individual’s income and resources in determining the eligibility and benefit
level of the household.

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If the reviewer determines that AORD an individual is not disqualified from the
food stamp program and has been erroneously excluded from the household
under review, the case shall be reported as containing a variance. The error
determination shall be completed by including the individual in the household.
The individual’s income and resources shall be considered in determining the
eligibility and benefit level of the household.
If the reviewer determines that there was a variance as the result of a change,
the reviewer shall then determine whether the variance is included or excluded
based on the reporting requirements and exclusionary time periods.

848
Ineligibility Due to a Drug Related Conviction, and
Fleeing Felon Status. Unless a State agency has opted out of the provision,
household members convicted of a drug related felony, if the felony occurred
after August 22, 1996, are ineligible for the Food Stamp Program. In addition,
household members who are fleeing felons or probation/parole violators are
ineligible.
•

Verification. The reviewer must examine agency records to
determine whether the agency was aware of drug related
convictions, or that a household member was a fleeing felon or a
probation/parole violator. The QC reviewer shall verify the date
on which the state agency became aware of the information.
Verification shall consist of documentation contained within the
records of the State agency, or information that is otherwise
known to the State agency. We expect that at some time in the
future there will be databases available to check for drug
convictions and possibly for fleeing felons. As these become
available, the QC review procedures will be expanded and may
require inquiries of these databases.

•

Variances. If the reviewer determines that the agency was
aware of the household member(s) status as ineligible and failed
to take appropriate action to remove the individual(s) from the
program the case shall be reported as containing an agencycaused variance. In making the error determination the reviewer
will exclude the ineligible member(s) in determining the food
stamp benefits for the sample month. The income and resources
of any ineligible member(s) shall be handled in accordance with
certification procedures. The appropriate time frames and
requirements for reporting and acting on changes in the
household circumstances shall apply. Deficiencies, other than

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those referenced above, shall not be included in the error
determination.
For reasons of reviewer safety, and so that quality control can not possibly
interfere with any ongoing law enforcement activities, under no circumstances
shall the reviewer question the household regarding the possibility of
ineligibility due to an illegal drug conviction or possible status as a fleeing
felon. If, in the course of conducting the review, the reviewer becomes aware
through other sources that a household member(s) was ineligible because of
one of these provisions, but that the State agency was unaware of this
information, then a report must be forwarded to the local agency identifying
the individual’s status as an ineligible household member. QC staff must not
contact law enforcement agencies with information regarding the whereabouts
of any fleeing felons or probation/parole violators discovered.

850

WORK REQUIREMENTS AS A CONDITION OF PARTICIPATION.

850.1

Work Registration - 162. As a condition of participation in the

Food Stamp Program, eligible recipients are required to register for work unless
they are exempt. If the household member, unless otherwise exempt, refuses
to work or fails without good cause to work register, the individual is ineligible
until the individual registers or becomes exempt from work registration
requirements.
The reviewer is required to determine and verify whether each household
member was required to register for work. For each member required to
register, the reviewer must verify whether the individual was registered. If the
State exempted an individual from the work registration requirement, the
reviewer shall determine if the exemption was correct. The reviewer is
required to determine if a member of the household or the entire household
should have been disqualified AORD because an individual refused without good
cause to work register.
•

Verification. Work registration may be verified using the
following primary sources:
1. Employment registration form
2. Employment agency printout
3. Contact with the employment office

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4. Case record documentation of the date on which current
registration was validated
•

Variances. If the reviewer determines that a household member
has refused or failed without good cause to register, the case
shall be reported as containing a variance. Lack of a work
registration form in the case record is not evidence of refusal or
failure to cooperate without good cause. If a required good cause
determination was not made by the State agency, the reviewer
must verify whether there was good cause. If a good cause
determination was made by the State agency, that good cause
determination itself is not subject to examination by the
reviewer. If the reviewer determines that there is a variance for
refusal or failure without good cause to register for work, the
reviewer shall consider the individual ineligible. Work
registration variances will not be cited for any individuals added
to the household's composition (and for whom a household
composition variance has been cited) as a result of the QC
review.
If the reviewer determines that a member of the household
failed or refused with good cause to work register and was
erroneously excluded in the household under review, the case
shall be reported as containing an agency-caused variance. Such
a variance will result in a determination that the individual is
eligible.
If, AORD, the state agency has imposed a disqualification period
upon a household member, the reviewer shall not consider the
individual to be either eligible or ineligible based solely on the
timeliness of the disqualification action. The specific
circumstances of the disqualification action must be examined in
order to determine its correctness.

•

850.2

Exemptions. The verification sources for exemptions from work
registration vary with the basis for exemption. The reviewer
should verify each exemption with the appropriate source.

Employment and Training - 160. As a condition of

participation in the Food Stamp Program, eligible recipients who have
registered for work may be required to participate in an employment and
training program operated by the State. Employment and training programs

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may include a job search program, a job search training and job placement
program, a workfare program, a program to improve employability, an
educational program, a program to increase self-sufficiency, a work
experience/training program and/or separate work/training program such as a
Job Training Partnership Act Program. If the State exempted an individual
from the employment and training program, the reviewer shall determine if the
exemption was correct. The reviewer is required to determine if a member of
the household or the entire household should have been disqualified AORD
because an individual refused without good cause to participate in employment
and training.
•

Verification. Participation in employment and training may be
verified by contact with the appropriate operating Employment
and Training offices or by reports from the appropriate office.
Employment and training may be operated by the State agency or
by other entities.

•

Variances. If the reviewer determines that an individual(s) has
refused or failed without good cause to comply with employment
and training requirements and the individual(s) was not
disqualified from the program, the case shall be reported as
containing a variance. If a required good cause determination
was not made by the State agency, the reviewer must make a
determination by verifying whether there was good cause. If a
good cause determination was made by the agency, that good
cause determination itself is not subject to examination by the
reviewer. If the reviewer determines that there is a variance for
refusal or failure without good cause to comply with employment
and training requirements, the reviewer shall consider the
individual or household ineligible.
If the reviewer determines there is no documentation to support
that a member of the household has refused or failed without
good cause to comply with employment and training
requirements, and that individual has been erroneously
disqualified, the case shall be reported as containing a variance.
Such a variance will result in a determination that the individual
or household is eligible.
If, AORD, the state agency has imposed a disqualification period
upon an individual, the reviewer shall not consider the individual
to be either eligible or ineligible based solely on the timeliness of
the disqualification action. The specific circumstances of the
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disqualification action must be examined in order to determine
its correctness.
•

Exemptions. The verification sources for exemptions from
employment and training vary with the basis for exemption. The
reviewer should verify each exemption with the appropriate
source.

850.3

Acceptance of Employment - 166. As a condition of
participation in the Food Stamp Program, eligible recipients are required to
report to an employer to who referred and to accept a bona fide offer of
suitable employment. The reviewer is required to determine if a member of
the household or the entire household should have been disqualified AORD
because an individual refused without good cause to accept suitable
employment. If the State disqualified the individual for failure to comply, the
reviewer shall determine if the disqualification was correct.
•

Verification. At a minimum the reviewer shall look for
information in the case record that indicates noncompliance
without good cause. If a required good cause determination was
not made by the State agency, the reviewer must make a
determination by verifying whether there was good cause. If a
good cause determination was made by the State agency, that
good cause determination itself is not subject to examination by
the reviewer.

•

Variances. If there is no indication of noncompliance,
compliance will be presumed. A determination by, or
notification to, the agency of failure or refusal to comply without
good cause shall be reviewed to determine the period of
ineligibility.
If the reviewer determines that a member of the household
failed or refused without good cause to accept employment and
was erroneously included in the household under review, the
case shall be reported as containing a variance. Such a variance
will result in a determination that the individual or the
household, as appropriate, is ineligible.
If the reviewer determines that a member of the household
failed or refused with good cause to comply and was erroneously
excluded from the household under review, the case shall be

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reported as containing an agency caused variance. Such a
variance will result in a determination that the individual is
eligible.
If, AORD, the state agency has imposed a disqualification period
upon an individual the reviewer shall not consider the individual
to be either eligible or ineligible based solely on the timeliness of
the disqualification action. The specific circumstances of the
disqualification action must be examined in order to determine
its correctness.
•

Exemptions. The verification sources for exemptions from the
requirement to accept suitable employment vary with the basis
for exemption. The reviewer should verify each exemption with
the appropriate source.

850.4

Employment Status/Job Availability - 165. As a condition of
participation in the Food Stamp Program, eligible recipients are required to
provide information on an on-going basis to allow the State agency to
determine the employment status or job availability of the individual and of
members of the household. The reviewer is required to determine if a member
of the household or the entire household should have been disqualified AORD
because an individual without good cause failed or refused to provide
information relative to their employment status or job availability. If the State
disqualified an individual for failure to comply, the reviewer shall determine if
the disqualification was correct.
•

Verification. At a minimum the reviewer shall look for
information, such as reports from the State agency in the case
record that indicates noncompliance without good cause. If a
required good cause determination was not made by the State
agency, the reviewer must make a determination by verifying
whether there was good cause. If a good cause determination
was made by the State agency, that good cause determination
itself is not subject to examination by the reviewer.

•

Variances. If there is no indication of noncompliance,
compliance will be presumed. A determination by, or
notification to, the agency of failure or refusal to comply without
good cause shall be reviewed to determine the period of
ineligibility.

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If the reviewer determines that a member of the household
failed or refused with good cause to comply with reporting
requirements and was erroneously excluded in the household
under review, the case shall be reported as containing an agencycaused variance. Such a variance will result in a determination
that the individual is eligible.
If, AORD, the state agency has imposed a disqualification period
upon a household member, the reviewer shall not consider the
individual to be either eligible or ineligible based solely on the
timeliness of the disqualification action. The specific
circumstances of the disqualification action must be examined in
order to determine its correctness.
•

850.5

Exemptions. The verification sources for exemptions from the
reporting requirements vary with the basis for exemption. The
reviewer should verify each exemption with the appropriate
source.

Voluntary Quit/Reducing Work Effort - 163. As a condition

of participation in the Food Stamp Program, eligible recipients may not
voluntarily quit without good cause, or reduce hours of employment to less
than the required number of hours per week without good cause. If a nonexempt individual voluntarily quits or reduces their work hours without good
cause the individual or household is ineligible to participate. The reviewer is
required to determine if a member of the household or the entire household
should have been disqualified AORD because an individual voluntarily quit or
reduced their work hours.
The reviewer is required to determine whether the member of the household
voluntarily quit his/her job without good cause, and whether the household
should have been disqualified AORD as the result. If a good cause
determination of voluntary quit is made by the State agency that good cause
determination itself is not subject to examination by the reviewer.
The reviewer shall determine whether the member of the household voluntarily
quit a job if: there is an indication in the case record of a quit (unless
documentation shows good cause); IEVS data that was previously obtained
indicates recently terminated employment; during the interview the household
indicates that an individual recently became unemployed or reduced their work
hours; or an indication of a quit or reduction is found through collateral
contacts.

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•

Verification. The reviewer must verify the following information
to determine whether the member of the household should have
been disqualified because of the quit or reduction.
Verify when the quit or reduction occurred, if it was voluntary,
and the number of hours or weekly wages. Verification sources
include, but are not limited to, previous employer(s), employee
associations, union representatives, and/or grievance
committees or organizations. Primary responsibility for providing
verification and/or collateral contacts rests with the household
member.
If a good cause determination was not made by the State agency,
make a determination by verifying whether there was good
cause.
Reviewers must apply State agency definitions for “voluntary
quit” and “reducing work efforts” in completing the review of
these provisions.

•

Variances. If the reviewer was unable to obtain verification
because the quit or reduction resulted from circumstances that
cannot be verified, (i.e., such as a resignation from employment
due to discrimination practices or unreasonable demands by an
employer or because the employer cannot be located), no
variance shall exist in this element.
If, AORD, the state agency has imposed a disqualification period
upon an individual, the reviewer shall not consider the individual
to be either eligible or ineligible based solely on the timeliness of
the disqualification action. The specific circumstances of the
disqualification action must be examined in order to determine
its correctness.

850.6

Workfare and Comparable Workfare - 164. As a condition

of participation in the Food Stamp Program, State agencies may require
recipients to participate in an optional workfare program. Such a workfare
program may also include comparable workfare programs approved by the
State, i.e., self-directed workfare. The reviewer shall use the procedures in
this section for individuals participating in such a program.

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Individuals, or households are to be disqualified from the Food Stamp Program
when the State agency determines that a workfare participant has failed or
refused without good cause to comply with the requirements of workfare.
(Such disqualifications do not apply if participation by the food stamp recipient
was voluntary.) The reviewer is required to determine if individuals should have
been disqualified AORD because they did not comply with workfare
requirements.
•

Verification. At a minimum the reviewer shall look for
information, such as reports in the case record that indicates
noncompliance with the workfare requirements without good
cause.

•

Variances. If there is no indication of noncompliance,
compliance will be presumed. A determination by, or
notification to, the agency of failure or refusal to comply
without good cause with workfare requirements shall be
reviewed to determine the period of ineligibility.
If the reviewer determines that a member of the household has
refused or failed without good cause to comply with workfare
requirements and has been erroneously included in the
household under review, the case shall be reported as
containing an agency caused variance. Such a variance will
result in a determination that the individual or the household is
ineligible.
If the reviewer determines that a member of the household
failed or refused with good cause to comply with workfare
requirements and has been erroneously excluded from the
household under review, the case shall be reported as
containing an agency-caused variance. Such a variance will
result in a determination that the individual is eligible.
If AORD the state agency has imposed a workfare
disqualification period upon a household member, the reviewer
shall not consider the individual to be either eligible or ineligible
based solely on the timeliness of the disqualification action.
The specific circumstances of the disqualification action must be
examined in order to determine its correctness.

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•

850.7

Exemptions. The verification sources for exemptions from
workfare requirements vary with the basis for exemption. The
reviewer should verify each exemption with the appropriate
source.

Time Limited Participation - 161. Able-bodied adults

between the ages of 18 and 50 without dependents (ABAWDs) are eligible for
participation in the Food Stamp Program for only 3 months within a 36-month
period of time without working or participating in a work or workfare program,
unless exempt. ABAWD individuals meeting certain criteria may qualify for 3
additional consecutive months of participation in the 36-month period.
•

Verification. The reviewer must verify, as of the review date,
both the status of individual household members as ABAWDs, and
also the program participation history of any members
determined to be ABAWDs. This will include an examination of
agency records. The reviewer shall verify the date on which the
State agency became aware of the information. Verification
shall consist of documentation contained within the records of
the State agency, or information that is otherwise known to the
State agency. Agency issuance records shall be used to verify the
program participation of any individuals determined to be
ABAWDs.
In addition, the reviewer must explore the eligibility status of the
ABAWD as a routine part of the field review of the case.
Household members should be questioned regarding the history
of participation in the program on the part of any ABAWD
household members.
If there are no indications from the review of agency records or
from the field review that any household members may be
ineligible ABAWDs, then the household’s statement may be
accepted. No further investigation of the matter is necessary.
There is no requirement that the reviewer contact agencies
administering the program in other states if there are no
indications that the ABAWD has participated within another
jurisdiction.
When a household admits that a household member is an ABAWD,
or agency records and/or collateral contacts indicate that a
household member may be an ABAWD, the reviewer must verify

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the eligibility status of the individual(s) through the examination
of agency records and collateral contacts with organizations
administering the program in other states. The records of the
State agency responsible for the administration of the Food
Stamp Program where the recipient potentially participated are
the only acceptable source of verification regarding the
individual(s) ABAWD status.
•

Variances. The reviewer shall take the following steps in making
the error determination:
For each household member, determine AORD whether the
individual is an ABAWD. For those individuals who are
determined to be an ABAWD as of the review date, proceed with
the review steps below.
For each household member who has been determined to be
ABAWD, determine whether these individuals have exceeded
their time limits for participation in the program.
Variances will be cited if it is determined that AORD the
household contains member(s) who are ABAWDs who have
exceeded their time limits for participation. In making the error
determination the reviewer will exclude the ineligible member(s)
in determining the food stamp benefits for the sample month.
Reportable changes that are not reported, and that impact on
the eligibility status of an ABAWD individual shall be included in
the error determination process.
Variances shall also be cited if the reviewer determines that, as
of the review date, the agency has improperly excluded an
individual who was not subject to the time limit restrictions, or
who had not yet exceeded the time limits for program
participation. In making the error determination the reviewer
will include the eligible member(s) in determining the food
stamp benefits for the sample month.
The appropriate time frames and requirements for reporting and
acting on changes in the household circumstances shall apply.
If AORD the state agency has imposed an ABAWD disqualification
period upon a household member, the reviewer shall not consider
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the individual to be either eligible or ineligible based solely on
the timeliness of the disqualification action. The specific
circumstances of the disqualification action must be examined in
order to determine its correctness.
•

860

Exemptions. The verification sources for exemptions from the
time limit requirements vary with the basis for exemption. The
reviewer should verify each exemption with the appropriate
source.

SOCIAL SECURITY NUMBERS - 170. An individual may not

apply for the Food Stamp Program because they do not wish to provide their
social security number at the time they are applying for the rest of the
household. No verification is required for these members of the household who
have chosen not to be included as a recipient of the Food Stamp benefits for
themselves. Otherwise, individuals who refuse or fail without good cause to
provide a social security number (SSN) or to apply for one are ineligible to
participate as a member of the household.

860.1

Verification.

Verification of SSN’s is not required for households that are categorically
eligible based on PA or SSI payments. However, an SSN may be verified for a
member of a categorically eligible household when the number is needed to do
an IEVS check and the SSN is not in the case file or it appears to be incorrect.
For other households, including those households that are categorically eligible
based on GA payments, verification must be obtained for each household
member. Verification based on viewing the Social Security card is not
acceptable. Verification must be based on one of the following sources:
•

Collateral contact with SSA.

•

SSA printouts or documents such as a Form SS-5 (Application for
an SSN) or SSA-5028 (Receipt for Application for an SSN) or other
similar forms.

•

Documentation that the SSN had been verified by another
program participating in IEVS.

•

Documentation in the case record that shows that a Form SS-5
was sent to SSA on a specific date.

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•

Birth document issued by the hospital in the case record that
shows that an SSN was applied for or other receipt showing this,
if it contains identifying information that includes the names of
the baby and the parent(s) and the date of birth of the baby.
1. Under no circumstances should the reviewer contact a
hospital to verify whether or not a food stamp applicant or
recipient applied for a newborn baby's SSN while in that
hospital.
2. The reviewer must look for a copy of documentation from the
hospital in the case record that shows that an SSN was applied
for.

The reviewer must document the verification used to show that the individual
did or did not have an SSN.

860.2

Variances. A variance shall be cited, and the household member

determined ineligible, only in the following circumstances:
•

If the reviewer determines, using documentation in the case
record, that an individual had refused, or failed without good
cause, to provide or apply for an SSN.

•

If the reviewer finds no evidence that establishes refusal, the
reviewer must determine whether good cause existed for the
individual's failure to provide or apply for an SSN. Good cause
shall be established through documentary evidence that the
individual had made every effort to supply the necessary
information to complete an application for an SSN.

•

If the reviewer determines that the household knowingly
provided an incorrect SSN for an individual or knowingly failed to
provide all SSN's for an individual, the individual shall be
determined ineligible.

•

If an individual had been disqualified by the State agency, the
reviewer shall determine if the disqualification was correct
AORD.

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Deficiencies, other than those referenced above, shall not be included in the
error determination.
•

If an individual who was added to household composition as a
result of the QC review (and for whom a household composition
variance has been cited) does not have an SSN, an SSN variance
shall not be cited.

•

Failure on the part of the agency to process an SS-5 or to inform
the household member that an SSN must be obtained within the
allowed time frames shall not be considered a variance and shall
not affect the error determination.

If an individual is determined to be ineligible, the reviewer shall exclude that
individual from the household but include a pro rata share of the individual's
income and all of the individual's resources in determining the household's
eligibility. Likewise, those individuals who choose not to provide their social
security number and did not want to receive food stamp benefits have their
income and resources considered in determining the remainder of the
household’s eligibility and benefits.

870

DISABLED INDIVIDUALS. Disabled household members are

entitled to some special eligibility and benefit standards:
•

The net income standard

•

The excess medical deduction

•

The uncapped shelter deduction, and

•

Special household composition considerations.

Disability status must be verified in connection with application of these
special standards.
“Disabled” status that entitles a member to the special eligibility and benefit
standards is defined in Food Stamp Program regulations. Only individuals
meeting the criteria listed in the regulatory definition shall be considered
disabled for purposes of the special eligibility and benefit standards.

870.1 Verification. The source of verification varies with the basis for
the entitlement to disability status. The verification must be documentation,
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computer listings, or collateral contacts with the government agency that has
provided the basis for the disability determination.
For example: if the basis for the disability determination is receipt of SSI, then
verification must consist of SSA documentation or computer listings which
verify the information or a collateral contact with SSA.

870.2

Variances.
•

If the reviewer determines that an incorrect disability status
determination has been made (a disabled household member has
been considered non-disabled, or a non-disabled household
member has been considered disabled) then a variance exists.

•

If the reviewer determines that the variance is the result of a
change, the reviewer shall then determine if the variance is
included or excluded based on the reporting requirements and
exclusionary time periods.

Variances in disability status are not
coded on the FNS-380-1 as disability
variances, rather they should be
coded in the element that is effected
by the disability status variance.

Example of Coding a Variance That
Was Related to Disability Status: A
household is given an uncapped shelter
deduction on the basis that a household
member is disabled. The reviewer
discovers that the household member is
not disabled, and the household is not
entitled to an uncapped shelter
deduction. The variance should be
coded in element 363, shelter
deduction.

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CHAPTER 9
RESOURCES
900

VERIFICATION STANDARDS FOR RESOURCES - 200-299.

910

GENERAL REQUIREMENTS. This chapter discusses the general

requirements for verification of resources.

911

Purpose of Verification of Resources. Except for

categorically eligible households, the reviewer must verify the household's
liquid and non-liquid resources. The reviewer must then determine if the
household's nonexempt resources exceeded the resource eligibility standard.
Fluctuations in resources over the certification period, even in excess of the
household's standard, shall not be considered variances. Thus, only when the
applicable resource standard was exceeded as of the QC verification date (see
section 710), the household fails to report the acquisition of certain vehicles,
or when policy was misapplied by the agency shall the reviewer cite a variance
in this element. In regard to variances resulting from changes, the exclusionary
time periods in Chapter 7 apply.
In determining whether a variance exists, the reviewer must ensure that the
same money is not counted both as income in the month it was received and as
a liquid resource in the same month.

912

Eligibility Standards. There are statutory resource limits for all
households except those households that are categorically eligible. The
reviewer will need to determine the resource limit for the household.

913

Categorical Eligibility. Households are categorically eligible if

all household members received or were authorized to receive PA, SSI, State or
local GA payments, or benefits from a State Program conferring categorical
eligibility. The reviewer need not review the household's resources if it was
categorically eligible except to determine if the resources provided any income
to the household such as interest or rent. So long as all household members
were included in a PA grant or they received SSI, State or local GA payment, or
benefits from a State Program conferring categorical eligibility, the household
was eligible for food stamps in relation to this element, regardless of whether
its total resources exceeded the standard and regardless of whether there was
more than one PA unit in the food stamp household.
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If the reviewer becomes aware that the PA/FS household had more resources
than allowed by the PA standard, this information shall be reported to the
agency but shall not result in the case being reported as ineligible for food
stamp benefits. When a case is found to be incorrectly classified as
categorically eligible, the reviewer shall use the applicable resource standard.
For example, if the reviewer finds that a household contained an individual
who was not included in the PA budget, the food stamp resource limit would be
used. If the resources exceeded the resource limit, the case was ineligible.

914

Combined Resources - 225. To determine if there was a

variance, the reviewer must total verified nonexempt resources and compare
that amount to the appropriate resource limit. The worksheet must show the
total and the resource limit used.

915

Acceptable Case Record Verification. Reviewers may accept

case record verification for resources which households declare if such
verification is current relative to the likelihood of the resource changing. For
non-liquid resources, the reviewer may accept as current any appropriate case
record verification stating the amount of the resource during the 30 days
before or after the review date. For liquid resources, the reviewer may only
accept case record verification stating the amount of resources as of the QC
verification date specified in Chapter 7.

916

Transfer of Resources. The reviewer must ask the household if

it transferred any resources during the three months prior to application or
after its eligibility was determined.
If the household admits to a transfer of resources, the reviewer must identify
the resource, specify when the transfer occurred, and determine whether the
transfer was knowingly made in order to qualify for food stamp benefits. The
household's documentation of the transfer may be used for verification. If the
case record documents that the household reported to the EW a transfer of
resources, the reviewer will determine if, in accordance with certification
procedures, the household would be eligible for the sample month.
A household may use its resources without having that use considered as a
transfer of resources. For example, a household that had $3,000 in a bank
account and used $2,000 to re-roof its home would not be ineligible based on a
transfer of resources.

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920

NONEXEMPT RESOURCES. The reviewer must verify the amount

of nonexempt resources declared by the household, and explore undeclared
resources to a point where the absence of each resource is reasonably
established. The evidence required to support the positive and negative
allegations is specified in this chapter. The "amount" of a non-liquid resource is
its fair market value less encumbrances except for licensed vehicles. (See
section 970.)

930

EXEMPT RESOURCES. The reviewer must determine that
resources which are not to be included as a resource for the Food Stamp
Program have been properly exempted in the determination of the household's
resources.
931

Resources of Non-Household Members. The reviewer must

verify that the resources of household members disqualified for intentional
program violations or failure to comply with the work requirements, ineligible
non-citizens, and SSN disqualified persons were counted according to
certification policy.
For all other non-household members, the reviewer must verify that resources
of these non-household members were included/excluded as determined by
certification policy.

932

Resources of Non-Citizen Sponsors. The reviewer must verify

the amount of any resources which are required to be deemed to the household
from a sponsor (and the sponsor’s spouse) of a non-citizen.

933

Resources Jointly Owned With Non-Household Members.

The reviewer must verify the amount of any jointly owned resources.
Resources owned jointly by separate households shall be considered available
based upon certification policy and applicable State laws.

934
Resources Which Are Accessible to the Household But
Not Owned by the Household. The treatment of resources which are
accessible to the household but not owned by the household are considered
based upon certification policy and applicable State laws.

940

BANK ACCOUNTS OR CASH ON HAND - 211. The reviewer
must ask the household if any member had any liquid resources. These types of
resources are cash or instruments, which can be readily converted to cash.

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Examples:

941

•

Cash on hand

•

Money in savings and checking accounts

•

Instruments issued by banks and credit unions, such as certificate
of deposit

•

Stock ownership in corporations

•

Bonds, such as savings bonds

•

Shares in mutual funds

•

Nonrecurring lump-sum payments such as income tax refunds

•

Individual Retirement Accounts

Inquiry About Debits to Accounts. The reviewer should

consider as a debit to the account, any money that was counted as income for
the month. The reviewer would also consider outstanding checks or drafts
written against an account to be debits to that account. For retrospectively
eligible cases, resources are determined as of the last day of the budget
month. For prospectively eligible cases, resources are determined AORD. The
reviewer must complete an IEVS check for resources for all household
members. In addition, the reviewer must verify whether any adult member of
the household has a bank account.

942

Inquiry About Declared Liquid Resources. Reviewers must

obtain certain information from households that declare liquid resources that
are not identified in the case record or for which verification is not current.
Most of this information can be obtained from the household or from a financial
institution. This information is:
•

The name and address of the financial institution

•

The type of account, the account number and type of
ownership

•

The amount of the resource

NOTE: Only verification from a financial institution is acceptable.
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943

Verification of Declared Liquid Resources.

943.1

Cash. Reviewers may accept the household's statement about the

amount of cash on hand. Any lump-sum payments that are not converted to
cash or deposited in a bank account could be verified by viewing the payment
check.

943.2

Other Liquid Resources. To verify any other liquid resources

declared for a household member, the reviewer must contact the financial
institution and verify the net amount of the resource. The reviewer must also
inquire if other household members have resources there or if the member who
has declared the resource has any other resources there. Amounts of all
resources must be verified.

943.3

Conditions Affecting Further Verification. The reviewer

shall check the accuracy of account information provided by the individual and
check for the existence of non-declared accounts through inquiries to banks or
banking institutions for the following situations:

950

•

Household member alleges ownership of an account.

•

Evidence appears to contradict household's negative allegation of
an account.

•

Household member uses a banking institution to cash checks or
for direct deposit of checks.

•

IEVS or other collateral inquiry reveals possible resources.

NONRECURRING LUMP-SUM PAYMENTS - 212. Household

circumstances may indicate the possibility of a recent lump-sum payment. For
example, a household in which there has been a recent death may have
received a lump-sum insurance settlement or a household that recently moved
may have received a refund of rental or utility deposits. Such payments that
have been deposited in bank accounts should appear in routine verification of
liquid resources. If there is a possibility that the household received a lumpsum payment and it does not appear as a declared resource, the reviewer must
ask the household if it received such a payment and document the worksheet
appropriately.

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960

OTHER LIQUID ASSETS. If the household owns any personal

property that is not exempted from consideration as a resource, the reviewer
must determine the value of such property through any reliable and reasonable
method i.e., sales slips, personal property tax assessment, catalog, existing
insurance appraisal, and local merchants.
In the absence of evidence to the contrary, the reviewer may accept a
household's statement that they own no such personal property.

970

REAL PROPERTY - 221. The reviewer must determine if the

household owns any real property (i.e., land or buildings). The reviewer must
then determine if any is excludable from consideration as a resource, such as a
home and lot; and property producing income consistent with its value. The
reviewer must then determine the value of any property, such as recreational
property, which is a countable resource.

971

When Property Is Acknowledged. Where it is known from

either the household's statement, the case record, or other sources that the
household owns property, the reviewer must verify what property is excludable
and the equity value of property not excludable. Sources of verification are:

972

•

Courthouse Records

•

Tax Records

•

Real Estate Transfer Division

•

Title Search

•

Municipal Building Inspection Compliance records

When No Property Is Acknowledged. When no property is

acknowledged, or only excludable property, the reviewer must follow up to
determine that the household owns no real property, or only excludable
property.
For the following households the reviewer may accept the household's
statement that it has no property unless there is evidence to contradict the
household's negative allegation.
•

Household resided AORD in government/tribal public housing or
federally subsidized housing such as the Housing Authority/Tribal
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Housing Authority (THA), Housing and Urban Development (HUD)
or Section 8.
•

Household was homeless AORD.

For all other households the reviewer will routinely check for property
ownership. Checks are made through county records when the reviewer is in
possession of information needed to retrieve the property data; for example,
the names of all the adult members of the household where there is an alpha
index. When the reviewer does not have the information needed to retrieve
the property data, the reviewer may have to look elsewhere to obtain the data
by which the property information is retrievable. When there is no such source
and no reason to believe there is property or only excludable property
ownership, the negative allegation will be accepted. The file must be clearly
documented to show why no verification was obtained.

980

VEHICLES - 222. For each adult household member the reviewer
shall verify the household's positive or negative allegation of vehicle ownership
via inquiry through the State Department of Motor Vehicles (DMV) or its
equivalent. The reviewer shall also determine status (with respect to use and
license) and the value of all vehicles owned by the household. Information
such as purchase price, encumbrances against the vehicle, and the name of the
organization financing the purchase would aid the reviewer in determining the
effect of motor vehicle ownership on eligibility. The value of some licensed
vehicles is excluded as a resource. To establish the value of motor vehicles the
reviewer shall use the National Automobile Dealers Association (NADA), “blue
book", or equivalent. In addition, car valuations can be verified by other
sources (i.e., car dealers) that can provide an approximate valuation based on
make, model and year of the vehicle.
Whether the recipient alleges ownership of a motor vehicle or not, the
reviewer shall check via inquiry through the State Department of Motor
Vehicles (DMV) or its equivalent the accuracy of the information, and to
explore potential ownership of other vehicles not alleged. This check shall be
completed even if the household provides proof of ownership. In addition,
reviewers may have to contact other collateral sources when DMV records
differ from the household's statement.
When the household alleges ownership of a motor vehicle the reviewer shall
examine the registration card and record the following information on all
licensed vehicles:

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•

Registered owner

•

Make

•

Model

•

Year

990

OTHER NON-LIQUID RESOURCES - 224. The reviewer must
determine ownership, status with respect to inclusion and exclusion, and equity
value of non-liquid resources not covered in Elements 221 and 222. Documents
that can be used as the basis of verification of such items are things such as
sales agreements and tax records as well as items mentioned under sections
970 and 980 above.

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CHAPTER 10
INCOME
1000

GENERAL. This chapter describes the procedures for verifying

household income and for determining variances in income.

1010
VERIFICATION AND VARIANCE DETERMINATION
PROCEDURES
1011

Verification. Households may receive income from one or more

types of sources, e.g., wages or a salary, a public assistance grant, a selfemployment enterprise, alimony payments. The income verification
procedures are based on the source of the income. Income is verified for the
budget or issuance month(s), depending upon the specific eligibility, budgeting,
and reporting requirements. (Refer to Chapter 7.) In some instances, income
is also verified for other months, e.g., the receipt of a student grant that has
to be prorated over a specific period.

1012

Variance Determination. The variance determination process

depends upon how the income is received, i.e., stable, fluctuating, annualized,
or received on some other schedule. In making the variance determination, the
reviewer needs to determine how the eligibility worker treated the income, if
the worker correctly applied the certification policy(s), if the worker made any
computational errors, if the recipient correctly reported income, and if the
recipient correctly reported income changes.

1013

Terminology. In general, the procedures in this chapter are based

upon the following terminology.

1013.1 Annualized income is self-employment income, e.g., farmers, or
contract income which is intended to represent a household's annual income
and which is prorated evenly or unevenly over a 12-month period.

1013.2 Anticipated Income is counted when its receipt is reasonably
certain. "Reasonably certain" is to be decided on a case-by-case basis by the
State agency in conjunction with the household. The provisions on change
reporting in section 223.2 concerning earliest date is applicable to determining
when income can be reasonably anticipated.

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1013.3 Averaged Income is income calculated for the certification
period based on a household’s anticipation of monthly fluctuations over the
certification period. The State agency may establish averaging methods to be
applied to certain types of households. (Conversion does not constitute
averaging.)

1013.4 Conversion is changing weekly or biweekly income to a monthly
amount by (1) multiplying weekly amounts by 4.3 and biweekly amounts by
2.15, or (2) using the State agency's public assistance standard. When
processing monthly reports, State agencies have the option of converting to a
regular monthly amount income that is received weekly or biweekly. The State
agency must choose one option for all change reporters and one option for all
monthly reporters. If the EW was required to convert income, the QC reviewer
must convert. The QC reviewer must use the State agency's applicable
conversion method. If an EW was not permitted to convert income (i.e., the
recipient receives less than a full month’s income from the source), the
reviewer must not convert. If the State agency did not select an option, the
QC reviewer will use actual income.

1013.5 Fluctuating income is earned or unearned income that varies
monthly in amount and/or by source. Such income may be averaged or
unaveraged.

1013.6 Prorated income is income that is divided among the household
members (including any ineligible household members, if appropriate) or
among the individuals for whom it is intended, or income divided by the months
for which it is intended to cover, e.g., a student grant.

1013.7 Stable income is income that is received in a fixed amount from
the same source(s) on a regular schedule.

1020

VERIFICATION REQUIREMENTS - EARNED INCOME

1020.1 Credit check for verification of earned income. This
element will serve as an optional tool for the verification of earned income. A
credit check may be used when the reviewer wants to further investigate or
establish a financial profile of household members.

1021

Wages and Salaries - 311. This element refers to income

earned by a recipient through the receipt of wages, salaries, tips, or
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commissions. The reviewer must verify whether any household members were
employed and the amount and frequency of earnings. (See section 512.)

1021.1 Positive Allegation. When the household admits that a
household member earns wages or salaries, the reviewer must determine the
name of employer, the amount and frequency of earnings; and the type of
employment (full-time, part-time, etc.).
For standard verification the reviewer must contact the employer or examine
wage stubs or pay envelopes, if they cover the period of employment under
review and there is no indication of other employment.

1021.2 Negative Allegation. If the household states that it received no
earned income during the appropriate month, the reviewer shall further
investigate household circumstances to ensure that the household did not have
any earned income. Exploration of past employment, including types of work
and former employers, may provide indications of employment during the
appropriate month.
Information obtained while verifying other elements of eligibility, with
individuals such as relatives, school officials, landlord, etc., may show the
participant is frequently absent from the home. This may be an indication of
the participant's employment.
Additional situations that the reviewer must investigate are:
•

Indications that the head of the household is not at home during
regular working hours and leaves at the same time every day

•

Difficulty in finding the head of the household at home

•

Seasonal employment at its peak in the area where the
participant lives

•

Shelter costs higher than reported income.

1021.3 Verification. The verification requirements in this section are
minimum requirements (See section 513.2). It is the responsibility of the
reviewer to find all sources of income in determining actual household
circumstances for the review period. If in the course of the review doubts are
raised concerning household circumstances (i.e. unexplained income, suspected

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seasonal work, etc.), the reviewer must verify actual circumstances and must
investigate any potential sources of additional income.
•

IEVS. The reviewer shall complete an IEVS check for all adult
household members to verify the household's positive or negative
allegation of earned income. (See section 512 on IEVS matching.)

•

No Further Investigation. When an IEVS check is done in
accordance with section 512, if the IEVS records do not indicate
recent employment, and no indication of information to the
contrary has arisen during other collateral contacts, then no
further verification is required.

•

Further Investigation. When the IEVS check is done in
accordance with section 512 and the IEVS records indicate
employment within the most recent quarter, the reviewer must
check with the recipient and these employers to verify the
employment situation for the appropriate month.

1022

Self-Employment - 312. Reviewers must ask all households if

they have any income from self-employment enterprises. Examples of selfemployment income include but are not limited to: farmers; income derived
from rental property when a member of the household is actively engaged in
management of the property at least an average of 20 hours per week;
payments from a roomer or boarder; and independent contracting. Selfemployment income may be received according to a variety of schedules. Selfemployment income can be received in a variety of forms including a lump sum
payment, in fluctuating payments, seasonal payments, or regular "salary"
payments. Frequently more than one form of income will appear for a selfemployment enterprise.

1022.1 Positive Allegation. When the household admits to selfemployment, the reviewer must describe the type of enterprise and verify the
amount of income by means of as many of the following documents as
necessary:
•

Recent tax returns or business records

•

Receipts for business expenses

•

Household's statement about estimated earnings

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In determining expenses, the reviewer must take into account which expenses
are allowable based on certification policy.

1022.2 Negative Allegation. Denials of self-employment must be
verified in the same manner as denials of wages and salaries discussed in
section 1021.2.

1023

Other Earned Income - 314. The reviewer must ask if the

household received other earned income, which can include:
•

Income from other work (such as a paper route, running errands,
cutting lawns, babysitting, or doing other "cash" jobs); and

•

Training allowance from vocational and rehabilitative programs
sponsored by Federal, State, or local governments to the extent
they are:
1. Not a reimbursement, or
2. Not excludable by Federal law.

1023.1 Positive Allegation. The reviewer must verify the amount and
frequency of other earned income by means discussed in the preceding sections
on earned income or by other appropriate means such as receipts. The
reviewer must verify through the appropriate office the amount of any training
allowances received by the household.

1023.2 Negative Allegation. In the absence of contradictory evidence,
the reviewer may accept the household's claim of no other earned income.

1030
VERIFICATION STANDARDS FOR UNEARNED GOVERNMENT
BENEFITS. The reviewer must verify the receipt and amounts of any
unearned income identified in the case record, ask the household if it received
any other unearned income by specifically mentioning each of the other types
specified in the following sections, and must verify such income items.
Household disclaimers of unearned income should be evaluated in the context
of the household circumstances and history. For example, review of the
recipient's employment history may indicate possible eligibility for
unemployment compensation or veteran's benefits. The reviewer must
establish a basis for a decision of non-receipt of benefits regardless of the
recipient’s denial of receipt of income. (See section 512.)

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1031
Retirement Survivors' and Disability Insurance (RSDI)
Benefits - 331. Regardless of whether the household alleges receipt of RSDI
benefits, the reviewer shall check for all household members the accuracy of
the information through SSA's data exchange system. In addition, the reviewer
may have to use other collateral sources such as SSA's current award
letter/correspondence or direct contact with the SSA district office to obtain
RSDI benefit information.

1032

Veterans' Benefits - 332.

1032.1 Positive Allegation. For standard verification use the following:
•

Current Veteran's Administration (VA) Award notice

•

Direct contact with a VA representative

1032.2 Negative Allegation. See IEVS Matching, section 512.
1033

Supplemental Security Income (SSI) - 333. Regardless of

whether the household alleges receipt of SSI benefits, the reviewer shall
routinely check for all household members the accuracy of the information
through SSA's data exchange system. In addition, the reviewer may have to use
other collateral sources such as SSA's current award letter/correspondence or
direct contact with the SSA district office to obtain SSI benefit information.

1034

Unemployment Compensation - 334.

1034.1 Positive Allegation. The reviewer must verify the amount and
date that unemployment compensation was received. For standard verification
use the following:
•

Current award certificate

•

Official correspondence

•

Direct contact with the appropriate agency administering the
unemployment compensation program

1034.2 Negative Allegation. (See IEVS Matching, section 512.)

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1035

Worker's Compensation - 335.

1035.1 Positive Allegation. For standard verification the Workmen's
Compensation award notice is the best evidence. When the award notice is
unavailable, the reviewer must contact the Workmen's Compensation office to
verify the amount of the payment received during the appropriate month.

1035.2 Negative Allegation. (See section 512).
1036

Other Government Benefits - 336. Other government

benefits include but are not limited to Black Lung Benefits, Railroad
Retirement payments, and payments to farmers by USDA.

1036.1 Positive Allegation. For standard verification use the following:
•

Current award certificate.

•

Official correspondence.

•

Direct contact with the appropriate agency that provides the
payments.

1036.2 Negative Allegation. (See section 512.)
1040
VERIFICATION STANDARDS FOR OTHER UNEARNED
INCOME.
1041

Contributions/Income-In-Kind - 342.

1041.1 Alimony Payments. An important type of contribution is alimony
payments. The composition of the household may indicate whether the
reviewer should seek additional information with regard to the probability of
child support (see section 1050 for further review instructions regarding child
support) or alimony payments.
•

Positive Allegation. The primary source of verification for
declared support payments and contributions is contact with the
person making the contribution. When support payments or
contributions are made through a third party, such as a court or
probation office, verification can be made through that agency.

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The reviewer shall be alert to the effect of timing and the
amount of payment relative to the review date.
•

Negative Allegation. The household’s denial of receipt of
alimony payments or contributions may be accepted in the
absence of evidence to the contrary. If there is a conflict in
information provided by the household and that provided by
collateral contacts, the reviewer should obtain a statement if
possible from the person making the alimony payments or
contributions, copies of canceled checks, etc., to help resolve
the conflict.

• Documentation.
1. From Household. The following are documents or other
records for verification generally available from the
participant:
a. Divorce or separation decree
b. Court order
c. Alimony check
d. Alimony agreement or
e. Correspondence regarding alimony payments.
2. From Other Sources. The following are other sources
available for verification:
a. Court records
b. Lawyer's records
c. Canceled check of person making contribution
d. Income tax returns or
e. Employer's record of attached wages.

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1041.2 Income-In-Kind. Reviewers should verify that no income-in-kind
is included as part of the household's food stamp income. An example of
income-in-kind is a rent-free apartment furnished as a part of the
compensation package for a recipient working as a building manager. This
should be excluded.

1042

Deemed Income - 343. The amount of income deemed to the

household from the sponsor (and the sponsor’s spouse) of a non-citizen member
of the household must be verified. This can be accomplished by reviewing the
documentation in the case record, including any TANF part of it. Any
inadequacies in verification in the case record must be remedied by having the
household obtain the needed documentation from the sponsor or the sponsor’s
spouse. If the household with a non-citizen member alleges no sponsor of the
non-citizen, the reviewer must contact INS for verification. If INS states that
there is a sponsor, the reviewer must follow up appropriately. In addition, the
possibility of income from a sponsor (or a sponsor’s spouse) in excess of the
amount deemed must be explored and verified and included as income to the
household. (See section 822.1.)

1043

PA or GA - 344. The receipt and amount of any PA or GA

payments which the household claims must be verified either through contact
with the paying agency or from official correspondence from the agency. (See
section 512.)

1044

Educational Grants, Scholarships, and Loans - 345. The

reviewer must verify the source of income (i.e., Title IV, BIA, JTPA, Perkins
Act), the amount of income, the period of time it was intended to cover, any
earmarked amounts for allowable expenses and amounts used for tuition and
mandatory fees, books, supplies, transportation, and other miscellaneous
personal expenses (other than living expenses) for the same period of time, and
origination fees and insurance premiums on loans. Mandatory fees include the
rental or purchase of any equipment, materials, and supplies related to the
pursuit of the course of study involved.
Most educational assistance and tuition, mandatory fees and earmarked
amounts may be verified by contacting the school the student attended.
Educational assistance and earmarked amounts may also be verified by the
provider agency, e.g., the Veteran's Administration for some veteran's
educational benefits. The student may provide verification for the exclusion of
amounts used for the allowable costs.

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1044.1 Positive Allegation. When a household admits that a household
member receives educational grants, scholarships, and loans, the reviewer
must verify the income and expenses through sources such as the following:
•

Contact with the school the student attended

•

Contact with the provider agency

•

Receipts for expenses

•

Prevailing transportation rates.

1044.2 Negative Allegation. If there was no member who was a
student, the household's denial of receipt of educational funds may be
accepted in the absence of evidence to the contrary. At a minimum, for
households with a student, the reviewer must contact the school to verify
whether or not the student received educational assistance.

1045

Other Unearned Income - 346. The reviewer must verify the
receipt and amount of other types of unearned income. Several examples are
discussed below. (See section 512.)
1045.1 Foster Care Payments. When there is a foster child or adult in
the household, the reviewer shall verify through the appropriate office whether
the child or adult is legally assigned to the household and the amount paid each
month for such foster care.

1045.2 Dividends and Interest. Interest on a savings account and
bonds, and dividends from investments such as stocks may be paid annually or
more frequently. At the time the household is certified, the participant is to
report such income. The EW may have averaged this income at the request of
the household or may have counted the income only in the month it was
expected to be received. The reviewer shall determine if the household
reported the receipt of such money and the amount that should be considered
income during the appropriate month. If such income was averaged, the
reviewer shall also average in accordance with certification procedures. If the
reviewer discovers such income, which was not reported either at the time of
certification or at the time it was received, the interest or dividend shall be
counted as income in the month in which it was received.

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1045.3 Rental Income. Gross income derived from rental property must
be verified. The costs of doing business must be verified and excluded from
the gross income.

1045.4 Pensions and Union Benefits. A recipient may state that
he/she received pension(s) or union benefits. A review of the recipient's
employment history may indicate possible eligibility for a company retirement
pension, or past union membership could indicate possible benefits from that
source. If the household indicates that it received pension (s) or union
benefits, the source and amount must be verified using the procedures in
section 1021.1. If there is an indication that the recipient may have been
entitled to or is receiving a pension or union benefits, the reviewer must
establish a basis for a decision of non-receipt of benefits more substantial than
the recipient's denial of receipt of income. Work sheet documentation must
clearly reflect the basis for the decision.

1046

TANF - 347. (See section 1043.)

1050
CHILD SUPPORT PAYMENTS RECEIVED FROM ABSENT
PARENT - 350.
An important type of household income in many cases is child support
payments. The composition of the household may indicate whether the
reviewer should seek additional information with regard to the probability of
support payments.
•

Positive Allegation. The primary source of verification for
declared support payments and contributions is contact with the
person making the payments. When support payments or
contributions are made through a third party, such as a court or
probation office, verification can be made through that agency.
The reviewer shall be alert to the effect of timing and the
amount of payment relative to the review date.

•

Negative Allegation. The reviewer may accept the household’s
negative allegation if:
1. The absent parent is making child support payments to the
child support enforcement agency, or
2. The absent parent is incarcerated.

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Otherwise, the reviewer shall consider that there is a possibility
of support payments or contributions being made on a voluntary
basis without legal liability for such contributions. When the
household states that it does not receive support payments and
the location of the person liable for support is known, the
reviewer must attempt to contact the person liable for such
payments. If the person’s location is not known, if the person
cannot be contacted, or if the person denies making support
payments as of the budget or sample month, the reviewer shall
contact the child support enforcement agency.
Where contact is attempted, the reviewer should be sensitive to the delicate
nature of the contact and proceed accordingly. Where no contact is attempted
because it would be inappropriate, the reviewer should document the
worksheet appropriately.
If there is a conflict in information provided by the household and that
provided by the absent parent, the reviewer should obtain a statement from
the absent parent, copies of canceled checks, etc., to help resolve the conflict.
•

Documentation.
1. From Household. The following are documents or other
records for verification generally available form the
participant: divorce or separation decree; court order;
contribution check; support agreement; or correspondence
regarding support payments.
2. From Other Sources. The following are other sources
available for verification: court records; lawyer’s records;
canceled check of person making contribution; income tax
returns; or employer’s record of attached wages.

1060

VARIANCE DETERMINATIONS. Once income has been verified,

the reviewer must determine whether there were any variances in terms of
eligibility or budgeting. The procedures in section 1061 shall be used for
determining eligibility. Budgeting variances shall be determined using the
procedures in sections 1062, 1063, 1064, 1065, 1066, 1070, and 1080.
The variance determination process for income is dependent on the type of
income and the reporting requirements to which the household is subject.
Refer to Chapters 2 and 7 for the review procedures used in determining

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variances for households subject to monthly reporting, quarterly reporting, and
semi-annual reporting, and for households receiving transitional benefits
allowances.

1061

Eligibility. Unless a household was categorically eligible, it must
meet the income test(s). Households that contain an elderly or disabled
member, must meet the net income test. All other households must meet both
the gross and net income tests.
1061.1 Prospective Eligibility. For households participating based on
prospective eligibility, the reviewer shall apply the appropriate income test(s)
to the income verified for the sample month. If the household's sample month
income meets the income test(s), the household is prospectively eligible based
upon income.
If the household's sample month income exceeds the income limit(s), the
reviewer must determine whether this is the result of a variance that is
included in the error determination. If the variance is included the case shall
be reported as ineligible. The reviewer shall use the appropriate time frames
for reporting and acting on changes to determine whether there is an excluded
variance. (See Chapter 7.)

1061.2 Retrospective Eligibility. For households participating based on
retrospective eligibility, the reviewer shall apply the appropriate income
test(s) to the income verified for the budget month. If the household's budget
month income meets the income test(s), the household is eligible based upon
income. If the household's budget month income exceeds the income limit(s),
the case shall be reported as ineligible and a variance cited.

1061.3 Categorical Eligibility. A categorically eligible household is
eligible for food stamps regardless of whether its income exceeded the limit(s).
If the reviewer becomes aware that a categorically eligible PA household has
more income than allowed by the PA limit(s), this information shall be reported
to the agency but shall not result in the case being reported as ineligible for
food stamp benefits. When a case is found to have been incorrectly classified
as categorically eligible, the reviewer shall use the income test(s) as
applicable. For example, if the reviewer finds that a household contained an
elderly individual who was not included in the PA budget and who did not
receive SSI, the food stamp net income test would be used. If the income
exceeded the household's net income limit, the household was ineligible.

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1062

Unearned Income

Households subject to change reporting requirements are only required to
report changes in unearned income when there is a change of more than $50 in
monthly income. For cases subject to change reporting, QC will use the
following procedures in reviewing unearned income. These procedures apply to
both stable and fluctuating income. They apply to both prospectively and
retrospectively budgeted unearned income. They apply to both
reported/processed sources and unreported/unprocessed sources of unearned
income.
A. Compare the QC verified budget month income to the worksheet amount.
In prospectively budgeted cases the budget month is the sample month (SM). In
retrospectively budgeted cases the budget month is one or two months prior to
the sample month, depending on the system used by the State. If there is no
difference, there is no variance. Use the verified budget month amount in the
error determination process. If there is a difference, proceed to Step B.
B. Correct the worksheet amount for misapplication of policy and
computational errors by the EW and for incorrect reporting (including failure to
report) by the household at the time of certification, recertification, or the last
reported change. Compare the QC verified budget month amount to the
corrected worksheet amount. If there is no difference, use the corrected
worksheet amount in the error determination process. If there is a difference,
go to Step C.
C. Determine if the difference can be excluded based on the reporting
requirements in Chapter 2 or the exclusionary time periods in Chapter 7.
NOTE: If there was more than one source of unearned income, the reviewer
must total the corrected worksheet unearned income and compare it to the
total QC verified budget month unearned income to determine if there was a
change of more than $50 that had to be reported.
If the difference is a result of a change that can be excluded based on the
reporting requirements or the exclusionary time periods, use the corrected
worksheet amount from Step B in the error determination process. If the
difference cannot be excluded, a variance shall be cited, and the reviewer
shall use the QC verified budget month amount in the error determination
process.

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If there is more than one variance in an income source, the reviewer must
arrange all variances in chronological order. The reviewer must then
determine if the latest variance is an included or an excluded variance based
upon time frames for reporting and acting on changes.
•

If the latest variance is an included variance, the reviewer shall use the
QC verified budget month amount in the error determination process.

• If the latest variance is an excluded variance, the reviewer shall use the
income amount that reflects the full effect of the latest included
variance(s).

1063
Prospectively Budgeted Earned Income $100 Change
Reporting
These procedures apply to households that are required to report changes in
the total amount of monthly earned income of more than $100. These
procedures apply to reported/processed sources of income. These procedures
apply to income received in beginning and other months.
Fluctuating earned income may be averaged or unaveraged, at the State’s
option. Any income that does not meet the definition of averaging must be
considered unaveraged income. The same basic review procedure must be
used for averaged fluctuating income, unaveraged fluctuating income, and
stable earned income. For averaged income, the reviewer must use the most
recently calculated averaged income that is or should have been in effect for
the sample month; i.e., if the EW reaveraged for any reason after certification
but prior to the review date, and that reaveraged amount should have been
used to determine the sample month's issuance but was not, the reaveraged
amount would be used as the corrected eligibility worker's figure. If the
eligibility worker was required to convert, the QC reviewer must convert
verified income for the appropriate month(s). Any other misapplications of
policy or incorrect computations must be corrected.
In the error determination process, any vacation or sick pay received by the
recipient must be counted by the QC reviewer as income in the month
received. Vacation and sick pay are considered to be from the same source as
the normal pay source, unless it is a terminated source. If it is a terminated
source, the vacation or sick pay would be treated as a non-recurring lump-sum
payment if the pay was received once in a lump sum.

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Section 722 must be used to determine whether income from a new or
terminated source is used in the error determination process.
All reported earned income sources must be added together before doing the
calculations called for in sections 1063.1 and 1063.2. If a case contains both
reported and unreported sources of earned income any reported sources must
be reviewed in accordance with section 1063.1 and 1063.2, as appropriate, and
any unreported sources must be reviewed in accordance with section 1063.3.
•

Interim Change.
1. For purposes of determining the effective month of a
certification action under 1063.1 and 1063.2, an interim
change is a recalculation of a case’s food stamp benefits
resulting from:
a. Change reported by the household; or
b. Change the agency becomes aware of through a source
other than the household with the exception of nonincome related mass changes. Income related mass
changes include, but are not limited to, SSA and SSI COLA's
and across the board adjustments to TANF. Non-income
related mass changes include, but are not limited to,
adjustments to SUA's and caps on dependent care
deductions.
2. The recalculation does not have to result in a change to the
allotment. In order to be considered an interim change under
this definition, the certification record must document that
two things have occurred:
a. Either a change is reported by the household, or the
agency becomes aware of the change; and
b. The eligibility worker has to act on the change, which
includes the eligibility worker's documented decision that
the change will not affect the household's allotment.

•

Effective Date of a Certification, Recertification, or Interim
Change. In determining whether to use procedures at 1063.1
(first and second month) or 1063.2 (third month and later), the QC

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reviewer needs to consider when a certification action became effective
rather than when the action was taken.
Example of an Effective Month After
the Date of the Action: The EW
recertifies a household on April 25 for
May through October. May is the first
effective month of the certification
action.
Example of an Effective Month Before
the Date of the Action: A household
applies for benefits on September 10.
On October 4, the EW certifies the
household for September through
December and issues benefits
retroactively for September. Even
though the certification action did not
occur until October 4, the first effective
month of the certification action is
September, the month of initial
certification.
The reviewer must use the following procedures to determine
whether any variances exist. These procedures apply to both stable
and fluctuating sources of earned income.

1063.1 First and Second Effective Months of a Certification
Action. If the sample month was the first or second effective month of an
initial certification, a recertification, or an interim change, the reviewer must
review income using the procedures in this section. This section must also be
used for the third effective month if using procedures at 1063.2 would take the
QC reviewer outside of the effective period of a certification action.
In the steps below, QC must use converted income as appropriate.
•

Comparison I. Verify the sample month income. This income
is used in the Comparison I allotment test at section 621. If the
Comparison I allotment test results in an allotment difference
greater than $50 from the authorized allotment, proceed to the
next step.

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•

Comparison II.
1. If necessary, correct the worksheet income figure at the time
income from each source was last calculated for the
allotment under review for misapplication of policy and
computation errors by the eligibility worker, and for incorrect
reporting by the household. In the case of previously known
and processed sources of income, in which a change has been
reported by the household, or otherwise become known to the
agency, and the eligibility worker has failed to process the
change, correct the worksheet income figure for the time the
change became known or was reported.
2. Using 722, determine whether any changes occurred in the
household's circumstances that should have been in effect as
of the review date, excluding unreported/unprocessed
income. If any change should have been in effect, use the
change in the error determination. If there was no change
that should have been in effect, use the eligibility worker's
corrected figure in the error determination.

Example of case in which the eligibility worker’s figures are used in the
error determination:
Change made in example
Certification Period:
March 1 through July 31
Sample Month:
March
Certified:
February 25
Verified March Income:
Income on Worksheet:

$1025
$890

The eligibility worker correctly added together eight weekly pay stubs from
January and February and converted the income to $890 monthly. The
household correctly reported at the time of certification.
The reviewer will use $890 in the error determination process because the
income was correctly determined at the time of certification and AORD
insufficient time has passed since the certification action for any changes to be
included in the error determination.

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Example of case in which the corrected eligibility worker’s figures are used
in the error determination:
Certification Period:
March 1 through August 31
Sample Month:
March
Certified:
February 25
Verified March Income:
Income on Worksheet:

$1530
$890

The eligibility worker added together biweekly pay stubs from January and
February and converted the income to $890 monthly. However, the QC
reviewer discovered that the household actually received income weekly. The
QC reviewer must correct the EW's figure by adding together the weekly pay
stubs for January and February and converting using the correct weekly
conversion factor. The corrected figure must be used in the error
determination process. Insufficient time has passed since the certification
action for any changes to be included in the error determination, so only the
error at certification is included.

Example of case in which the eligibility worker’s figures, following an
interim change, are used in the error determination:
Certification Period:
Sample Month:
Certified:
Interim Change:

January 1 through August 31
June
January 15
May 10

Verified June Income:
Income on Worksheet:

$870
$903

The recipient was interviewed on January 2 and certified on January 15 with
monthly income of $210. On May 1, the recipient's employment changed from
part-time to full-time. She received her first full-time pay check on May 7.
She reported the change to the State agency on May 8 and provided verification
that she could expect to work about 35 hours per week at $6.00 per hour. On
May 10 the State agency prepared a budget for June through August, based on
monthly income of $903 ($6 x 35 x 4.3). The reviewer will use $903 in the
error determination process because the income was correctly determined at
the time of the interim change and AORD insufficient time has passed since the
interim certification action for any changes to be included in the error
determination.
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Example of case in which the sample month is the third effective month of
a certification action and an unreported change has occurred which must be
included in the error determination:
Certification Period:
Sample Month:
Recertified:

June 1 through May 30
August
May 20

Verified August Income:
Income on Worksheet:

$460
$325

The State agency has a 12-day NOAA period; requires averaging at least two
full months of income to determine a "best estimate" of anticipated income;
and requires reporting of actual changes of more than $100 from the monthly
average.
Although August is the third effective month of a certification action, using
procedures at 1063.2 would take the reviewer outside of the effective period
of the certification action since the State agency has a 12-day NOAA (i.e. the
first full month ending 32 days prior to the review date is May which is prior to
certification.) Therefore, procedures at 1063.1 are used in reviewing income.
In recertifying the household, the EW correctly averaged income from April
($300) and May ($350) to compute a best estimate of $325. On June 5, the
household received its June paycheck of $460 that was neither reported by the
household nor processed by the State agency.
The QC reviewer determined that the change to $460 must be included in the
error determination since the household was aware of the change more than 32
days prior to the review date and the change exceeded the best estimate of
$325 by more than $100. Based on certification policy, the QC reviewer
determined one way to include this change was by averaging income from
April, May and June [($300 + $350 + $460) ÷ 3 = $370]. Thus, $370 is used in
determining the error amount. It should be noted that $370 is used in the error
determination even though it differs by $100 less from the corrected EW's
figure.

1063.2 Third Effective Month or Later Following a Certification,
Recertification, or Interim Change. If the sample month was the third
effective month or later, the reviewer must review the income using the
procedures in this section. If the review date is such that the following
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procedures would take the QC reviewer outside of the effective period of a
certification action, use section 1063.1. This will apply to most states for
completion of March sample month cases, and states with 10+ days notice of
adverse action periods.
In the steps below, QC shall use converted income as appropriate.
•

•

Comparison I. Verify the sample month income. This income is
used in the Comparison I allotment test at section 621. If the
Comparison I allotment test results in an allotment difference
greater than $50 from the authorized allotment, proceed to the
next step.
Comparison II.
1. If necessary, correct the worksheet income figure at the time
income from each source was last calculated for the
allotment under review for misapplication of policy and
computation errors by the eligibility worker, and for incorrect
reporting by the household. In the case of previously known
and processed sources of income, in which a change has been
reported by the household, or otherwise become known to the
agency, and the eligibility worker has failed to process the
change, correct the worksheet income figure for the time the
change became known or was reported.
2. Compare the verified sample month's income to the corrected
eligibility worker's income figure.
3. If the two income figures vary by $100 or less, use the
eligibility worker's corrected income amount in the error
determination process.
4. If the two income figures vary by more than $100, the
reviewer must verify the household's fluctuating income for
the full month ending 30 days prior to the review date. This
month is referred to as the error determinant month. The 30day period is based upon the regulatory time frames for
reporting and acting on changes. For states with notice of
adverse action periods other than 10 days, the 30-day time
frame must be adjusted up or down accordingly. If this
amount varies by $100 or less from the corrected eligibility
worker's income figure, use the corrected eligibility worker's

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income figure in the error determination process. If this
amount varies by more than $100 from the corrected
eligibility worker's income figure, use the amount from the
error determinant month in the error determination process.
In the following examples, the State agency has a 10-day notice of adverse
action period unless otherwise specified.
Example of case in which the eligibility worker’s figures are used in the
error determination (EW’s figures vary by less than $100 from the sample
month):
Sample Month:
November
Income for November:

Nov. 6
Nov. 13
Nov. 20
Nov. 27
Total

$2420.91
224.13
260.93
209.15
$925.12

Income for May, June, July:
May 4
May 11
May 18
May 25

$209.42
201.46
122.13
260.48

Total

$793.49

June 1
June 8
June 15
June 22
June 29

$203.76
213.40
212.25
195.39
215.46
$1,040.26

July 6
July 13
July 20
July 27

$94.64
213.25
147.16
226.40
$781.45

The eligibility worker, using the pay stubs from May, June, and July, calculated
an average monthly income of $872. The verified income for the sample month
of November is $925. The eligibility worker correctly computed an average.
The income received during the sample month is within $100 of the eligibility
worker's figures. Therefore, $872 would be used in the error determination
process.

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Example of case in which the eligibility worker’s figures are used in the
error determination (EW’s figures vary by less than $100 from the error
determinant month):
Certification Period:
Sample Month:
Income for August:
Income for June:
Income for April:

May 1 through October 31
August
$1020
$880
$890

Using four weekly pay stubs for April, the eligibility worker correctly computed
a monthly income of $890. The verified income for the sample month is $1020.
The income received in the sample month is $130 more than the eligibility
worker's figure. Therefore, the reviewer must verify the income for the first
full month ending 30 days prior to the review date. The income for June is
$880, which is within $100 of the eligibility worker's figures. Therefore $890
would be used in the error determination process.

Example of case in which the corrected eligibility worker’s figures are used
in the error determination (corrected EW’s figures vary by less than $100
from the error determinant month):
Sample Month:
Income for November:
Nov. 6
Nov. 13
Nov. 20
Nov. 27
Total

November
Income for September:
$220.91
Sept. 5
245.14
Sept. 12
306.93
Sept. 19
203.27
Sept. 26
$976.25

$253.25
198.78
235.45
207.88
$895.36

Use the same income for May ($793.49), June ($1040.26), and July ($781.45) as
in the previous Example. The eligibility worker, using the pay stubs for May,
June, and July calculated an average monthly income of $962. The eligibility
worker incorrectly computed an average by transposing the income for July 20
to $417.16. The corrected eligibility worker figure is $872. The income
received during the sample month is $104 more than the corrected eligibility
worker's figure. Therefore, the reviewer shall verify the income for September
- $895. This is within $100 of the corrected eligibility worker's figure.
Therefore, $872 would be used in the error determination process.

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Example of case with conversion error:
Use the same income for May ($793.49), June ($1040.26), and July ($781.45) as
in the previous Example. The eligibility worker was required to convert the
income, but did not. The reviewer must correct the eligibility worker's figures
by converting the income. The corrected income amount would be used as the
corrected eligibility worker figure in the error determination process. The QC
reviewer would convert the income for the sample month and for the first full
month 30 days prior to the review date in doing the error determination.
Example of case in which the error determinant month is not the month two
month’s prior to the sample month:
Certification Period:
June 1 through December 31
Sample Month:
November
Review Date:
Nov. 1
Verified November Income: $850
Verified August Income:
$950
EW’s figure for Income:
$700
The State agency has a 13-day notice of adverse action period. The EW
correctly computed monthly income of $700 at certification. No interim
changes have been processed since certification. The verified sample month
income is $850. Since this amount differs by more than $100 from the EW's
figure, the QC reviewer verifies income for August - the first full month ending
33 days prior to the review date. August income of $950 is compared to the
EW's figure and used in the error determination since it differs by more than
$100 from the EW's figure.

1063.3 Unreported/Unprocessed Sources of Earned Income.
If the existence of an earned income source is never reported to the agency, or
if reported, is never processed by the agency, the reviewer must use the
income received in the sample month (converted as appropriate) in the error
determination process.
Unreported/unprocessed sources of income that should have been annualized
or prorated shall be reviewed in accordance with instructions in Section 1065.
Unreported/unprocessed sources of unearned income shall be reviewed in
accordance with instructions in Section 1062. Any unreported source that
begins within the exclusionary timeframes must be excluded.

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1064
Prospectively Budgeted Earned Income - Status
Reporting
Households subject to status reporting requirements are only required to report
changes in earned income when there is a change in (a) source, (b) hourly
rate/salary, or (c) employment status (part-time to full-time, or full-time to
part-time). For cases subject to status reporting, QC will use the following
procedures in reviewing earned income. They apply to reported and
unreported sources of earned income subject to status reporting.
The reviewer shall follow these steps (income shall be converted as
appropriate):
1064.1 Compare the QC verified sample month (SM) income to the worksheet
amount. If there is no difference, there is no variance. Use the worksheet
amount in the error determination process. If there is a difference, go to
section 1064.2.
1064.2 Correct the worksheet amount for misapplication of policy and
computational errors by the EW and for incorrect reporting by the household at
the time of certification, recertification, or the last reported change. Compare
the QC verified sample month amount to the corrected worksheet amount. If
there is no difference, use the corrected worksheet amount in the error
determination process. If there is a difference, go to section 1064.3.
1064.3 Determine if the difference can be excluded based on the reporting
requirements in Chapter 2 or the exclusionary time periods in Chapter 7.
Note: For households subject to the provisions of status reporting, the
household was only required to report changes in earned income if there was a
change in (a) source, (b) hourly rate/salary, or (c) employment status (parttime to full-time or full-time to part-time) as defined by the State agency. For
such status reporting households, if there was more than one source of earned
income, the reviewer must make the comparisons at 1064.1 and 1064.2
separately for each source of earned income rather than totaling earned
income prior to the comparisons.
If the difference is a result of a change that can be excluded based on the
reporting requirements or the exclusionary time periods, use the corrected
worksheet amount from Section 1064.2 in the error determination process. If
the difference cannot be excluded, a variance shall be cited, and the reviewer
shall use the QC verified SM amount in the error determination process.

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If there is more than one variance in an income source, the reviewer must
arrange all variances in chronological order. The reviewer must then
determine if the latest variance is an included or an excluded variance based
upon time frames for reporting and acting on changes.

1065

•

If the latest variance is an included variance, the reviewer shall
use QC verified SM amount in the error determination process.

•

If the latest variance is an excluded variance, the reviewer shall
use the income amount that reflects the full effect of the latest
included variance(s).

Annualized and Prorated Income.

1065.1 Self-Employment. Self-employment income that represents a
household's annual income must be annualized over a 12-month period. This
applies even if the income is received during only part of the year, and it
applies regardless of whether or not the household received income from other
sources.
If self-employment income is intended to meet the household's needs for only
part of the year, it is prorated only over the period of time it is intended to
cover.
• Reported Source. When reviewing self-employment income, the
focus of the review shifts from the income received in the
budget/sample month to action taken by the EW in handling the
income and allowable income exclusions when the income was
last calculated. Regardless of whether the EW anticipated
income or projected past income, the reviewer must correct the
worksheet amount for misapplication of policy and computational
errors by the EW and for incorrect reporting by the household at
the time of certification, recertification, and when changes were
subsequently reported. This corrected worksheet amount must
be used in the error determination process.
Unreported changes in amount after the time of certification or
recertification are not considered.
•

Unreported Source. When a household failed to report a source
of self-employment income, the reviewer must develop an
average monthly amount to be used in the error determination
process based on the best information available AORD provided:

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1. The source was in existence at the time of certification or
recertification, or
2. The household subsequently became self-employed and the
change cannot be excluded based on the time frames for
reporting and acting on changes.

1065.2 Contract Income. Households that derive their annual income by
contract in a period of time shorter than one year must have the contract
income averaged over a 12-month period, provided it is not received on an
hourly or piecework basis.
•

Reported Source.
Example of an Unreported Change in a
The reviewer must
Reported Source: A household was
correct the worksheet certified from October 2003 through
amount for
September 2004 based on an annual
misapplication of
income of $27,000 or $2,250 a month.
policy and
The teacher received a 2 percent pay
computational errors
raise on January 1 but failed to report
by the EW and for
the change. The sample month was
incorrect reporting by March. The reviewer must re-annualize
the household at the
over the 12-month period and divide by
time of certification
12 to determine the monthly income
or recertification.
amount to be used in the error
The reviewer must
determination process.
then make an
adjustment for any subsequent changes that cannot be excluded
based on the reporting requirements and the time frames for
reporting and acting on changes. This corrected monthly amount
must be included in the error determination process.

•

Unreported Source. When a household failed to report a source
of contract income, the reviewer shall develop an average
monthly amount to be used in the error determination based on
the best information available AORD provided:
1. The source was in existence at the time of certification, or
2. The household subsequently gained the contract income and
the change cannot be excluded based on the time frames for
reporting and acting on changes.

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1065.3 Educational Income. Scholarships, deferred educational loans
and other educational grants, after exclusions, must be averaged over the
period it is intended to cover. Educational income is not counted until the
month in which it is received or anticipated with reasonable certainty to be
received. Once counted, the income, after allowable exclusions, is prorated
over the entire period it is intended to cover.
•

Reported Source. The reviewer must correct the worksheet
amount for misapplication of policy and computational errors by
the EW and incorrect reporting by the household at the time of
certification or recertification. The reviewer must make an
adjustment for any subsequent changes that cannot be excluded
based on the reporting requirements and the time frames for
reporting and acting on changes. This corrected monthly amount
must be used in the error determination process.

•

Unreported Source. When a household failed to report a source
of educational income which should have been included as
budget month income, the reviewer must develop an average
monthly amount to be used in the error determination process
provided:
1. The source was in existence at the time of certification or
recertification, or
2. The household subsequently received the income and the
change cannot be excluded based on the time frames for
reporting and acting on changes.
This amount shall be based on the best information available
AORD.

1066

Household With More than One Type of Income. This

section is used for household with more than one type of reported/processed
income, i.e., unearned, earned (status or change reporting), annualized or
prorated income. This section must not be used for households with more than
one source either the same type of income or income with the same reporting
requirement.
The following is an example of a household with multiple sources of a single
type of income: a household is certified with income from two different
employers. Even though there are two sources of income, there is only one

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type since both are earned, and both are subject to the same household
reporting requirement. Therefore, income in this example is reviewed using
procedures for earned income, based on the household’s income reporting
requirement.
In the event a household has more than one type of income, the reviewer must
use the procedures in this section:
In the steps below, QC must use converted income as appropriate.
•

•

Comparison I. To do the allotment comparison in section 621,
verify the amount of each type and source of income received in
the sample month, including any unreported/unprocessed
income. All types of income must be added together. If the
Comparison I allotment test results in an allotment difference
greater than $50 from the authorized allotment, proceed to the
next step.
Comparison II. The reviewer must separately evaluate each type
of income using the appropriate procedures from Sections 1062,
1063, 1064, and/or 1065 for the various types of income received
by the household. Combine these separately determined income
figures and use this amount in the error determination process.

In the following examples, the State agency has a 10-day notice of adverse
action period unless otherwise specified.

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Example of three types of income, with a change that was too small for a
significant impact on the allotment:
Sample Month:
August
Certified:
May 15
No interim change
Type of Income

At Certification

Verified for August

Earned income amount:
325
312
Unearned income amount:
100
100
Prorated income amount:
225
225
Total
650
637
Allotment for 3
235
238
The QC reviewer determined that the income used at certification was correct.
Since the allotment based on the sample month income varies by less than the
$50 threshold for citing a QC allotment error the case is determined correct.

*

Example of three types of income, with a change that was not included in
the final error determination:
Sample Month:
August
Certified:
May 15
No interim change
Type of Income

*

At
Certification

Verified
for August

Final Error
Amount

Earned income amount:
325
610(status)
325
Unearned income amount:
100
100
100
Prorated income amount:
225
225
225
Total
650
935
650
Allotment for 3
235
167
235
The QC reviewer determined that the income used at certification was correct.
Since the allotment based on the sample month income varies by more than
the $50 threshold for citing a QC allotment error the reviewer must review
each income type independently. Section 1062 was used to evaluate the
unearned income which was determined to be correct. Section 1065 was used
to evaluate the prorated income which was determined correct. Section 1064
was used to evaluate the status reporting earned income and it was
determined that the income at certification was correct and there were no
reportable changes. The overall error determination was that the case was
correct.

01-13-12 (Change 3)

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Example of two types of income, with changes that must be included in the
final error determination:
Sample Month:
August
Certified:
May 15
No interim change
Type of Income

At
Certification

Verified
for August

Final Error
Amount

Earned income amount:
520
560(status)
560
Unearned income amount:
400
510
480
Total
920
1070
1040
Allotment for 3
166
113
132
The QC reviewer determined that the income used at certification was correct.
Since the allotment based on the sample month income varies by $53 (more
than the $50 threshold for citing a QC allotment error) the reviewer must
review each income type independently. Section 1062 was used to evaluate
the unearned income. The reviewer determined that there were two
unreported changes. Unearned income became $480 in July and $510 in
August. The change to $480 is an includable variance. The change to $510 is
excludable as it is within the timeframes for reporting and acting on changes.
Section 1064 was used to evaluate the status reporting earned income and it
was determined that there was an unreported wage increase from $6.00 per
hour to $6.50 per hour in June which is an includable variance. The final error
determination is based on income of $1040 and results in an allotment error of
$34 (166 – 132), which is below the $50 threshold to be included in the State’s
official error rate.

1070

INCOME FROM INELIGIBLE HOUSEHOLD MEMBERS. While

the size of a household is always reduced by the number of ineligible members
when applying the Thrifty Food Plan, the manner in which income is handled
varies depending upon the reason for which an individual is ineligible.

1070.1 Income That Must Be Counted Entirely. The income
received by a household member disqualified for certain program violations is
considered available to the household in its entirety. However, for purposes of the
eligibility income test(s), the household size must be reduced by the
number of disqualified individuals. In all other respects, the income received
by these ineligible household members is examined consistent with the policies
and procedures for any other income.

01-13-12 (Change 3)

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1070.2 Income That Must Be Counted On A Prorated Basis. The
income received by individuals who are ineligible for the program because of
certain deficiencies is prorated among the ineligible individual(s) and the
remaining household members. The prorated share attributed to the ineligible
individual(s) is then excluded from the eligibility income test(s). The
household size is reduced by the number of ineligible individuals in establishing
income eligibility standards for the household. In all other respects, the
income received by these ineligible household members is examined consistent
with the policies and procedures for any other income.

1080

NON-COMPLIANCE WITH OTHER PROGRAM RULES.

Households whose cash assistance is reduced, suspended, or terminated
because of the failure of a household member to perform an action required
under a Federal, State, or local means-tested public assistance program may
not receive an increased SNAP allotment as the result of the decrease. In
addition, the State agency may reduce the household’s allotment by not more
than 25%. The QC reviewer must determine whether the State agency acted
properly when it became aware that this provision applied to the household.
An examples of benefits considered under this provision is TANF. Examples of
programs, which are not means-tested and therefore, not considered are RSDI,
Railroad Retirement, and Unemployment Compensation benefits.

1081

Desk Review. The reviewer must examine the household's case

record and other records of the State agency to determine if the State agency
was aware of a penalty AORD. If so, the reviewer must also determine whether
the State agency was aware that the penalty was caused by a failure to comply.

1082

Field Review. The reviewer is not required to investigate

penalties of which the State agency was unaware. However, if the reviewer
uncovers a type of assistance that was received AORD but was not included in
the certification action, QC must, if necessary, re-examine the State agency's
records about the penalty.
The determination regarding failure to comply with another program’s
requirements is made by the agency administering that program. Under no
circumstances should the QC reviewer make a determination or challenge a
determination that has already been made.
If a good cause determination for failure to comply with program requirements
has been made by the State agency, that good cause determination itself is not
subject to challenge by the reviewer.

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1083

Verification. QC must verify the amount of the penalty for the

appropriate months. QC must also verify the cause of the penalty and the date
on which the State agency became aware of the amount and cause.
Verification of this element consists of documentation that has been provided
to the State agency or is otherwise known by the State agency.
The reviewer must examine State agency records to determine whether the
State agency was aware of any reduction, suspension, or termination of any
Federal, State, or local means-tested assistance program as of the sample
month. The QC reviewer must verify the cause of the penalty and the date on
which the State agency became aware of the amount and the cause. A
determination by another agency that the penalty was due to the failure of the
household to perform a required action must be accepted by the reviewer, and
is not subject to further examination. Verification consists of documentation
provided to the State agency by the agency administering the program to which
the penalty is being applied, or information that is otherwise known to the
State agency.

1084

Identification of Variances. A variance exists only if:
•

The household's penalty was caused by a failure to comply, the
State agency was aware of both the penalty and the cause, and
the State agency either did not count or counted the wrong
amount of the penalty as income; or

•

The State agency erroneously reduced Food Stamp benefits.

1085

Treatment of Variances. QC must consider the date the State
agency became aware of the cause of the penalty as the date of a reported
change.
Variances will only be cited if the State agency was aware of the penalty in the
other means-tested program, and failed to appropriately adjust the food stamp
benefits based on this information. In making the error determination, the QC
reviewer will include the amount for the other program, which should have
been used in determining the food stamp benefits for the sample month.
Penalties that the State agency was not previously aware, will be excluded
from the error determination process. The appropriate time frames and
requirements for reporting and acting on changes in household circumstances
shall apply.

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If a variance is included, the QC reviewer must correct the worksheet figure for
misapplication of policy, failure to act or correctly act on reported information
and computational errors by the Eligibility Worker. For purposes of correcting
worksheet figures, the QC reviewer must use State agency procedures as long
as these procedures meet minimum Federal guidelines. In the absence of
procedures or procedures meeting Federal guidelines, the QC reviewer must
use the penalty amount from the budget month. The corrected figure is used
in the error determination process.

1086

Other Deficiencies. Deficiencies in this element, other than

those specified above, must not be considered variances for purposes of QC and
need not be reported. For example, the State agency's failure to investigate
the cause of a decrease in another program's benefits must not be considered
as a variance unless the casefile contains documentation identifying the
penalty as an intentional failure to comply.

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CHAPTER 11
DEDUCTIONS
1100

DEDUCTIONS. In the Food Stamp Program there are six allowable

deductions from a household's gross income:

1110

•

Earned income deduction

•

Dependent care deduction

•

Standard deduction

•

Shelter deduction

•

Medical deduction

•

Child support payment deduction.

REVIEW OF DEDUCTIONS. What follows is a general discussion and

illustrations by example of the handling of allowable deductions.

1111

Deductions as Billed. In general, a household becomes entitled to a

deduction when it receives a bill or, if there is no bill, when the expense otherwise
becomes due. Exceptions to this general rule are noted in this chapter. When an expense
is paid through a charge account, the expense is considered "billed" when the household
received its charge account statement.
•

A household may choose to average periodic billings over the interval
between scheduled billings or over the period the expense is intended to
cover.

•

A household may choose to average one-time only expenses (other than
medical expenses) over the entire certification period in which they are
billed.

•

A household may choose to average one-time only medical expenses over
the remainder of its certification period.

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The Food Stamp Program does not allow
deductions according to a household's
actual payments. For these deductions,
the reviewer must concentrate on dates
and amounts of billings and not on dates
and amounts of payments. An exception
to this general rule is the child support
deduction.
The reviewer may use information about
payments to determine a household's
cash flow - Does the household spend
more than it receives? This information
may be useful in investigating household
composition and income. The reviewer
may use information about the method
of payment to determine when an
expense was billed (as with credit cards
and charge accounts.) However,
payments are not the basis for
deductions.

1112
Expenses Paid by
Excluded Vendor Payment. When
a person or organization outside the
household pays a household's expenses
directly to another party (like a doctor,
a landlord, or a baby sitter), those
payments are called vendor payments.
The Food Stamp Program excludes some
vendor payments from the household's
income.

Example of Allowing a Deductible
Expense as Billed, Not as Paid: A
household did not receive a monthly bill
for its rent. However, it did sign a lease
that required a rental payment of $125
monthly throughout the certification
period. In calculating the household's
shelter expenses, the reviewer would
include the rent of $125 as "otherwise
becoming due." A household paid $17.62
for electricity on March 7th (billed in
February). The household was billed
$32.16 for electricity on March 20th. In
calculating the household's shelter
expenses for March, the reviewer would
consider $32.16 for March, as the amount
billed.
Example of When an Expense is
Considered Billed if Paid by Credit Card:
An elderly household member visited a
doctor on March 8th. Since payment was
due at the time of service, she charged the
bill on her credit card that same day. The
credit card company billed the household
member on a statement that she received
on May 2nd. The reviewer would consider
this expense as billed in May.

Example of an Expense Paid by Excluded
Vendor Payment: A household was billed
$200 for rent each month of its
certification period. A charity paid $150
of the rent each month directly to the
landlord. In calculating the shelter
deduction, the household's rent was $50.
The $150 was an excluded vendor
payment.

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When vendor payments are excluded
from income, the household is not
allowed a deduction for the expenses
covered by the vendor payments. The
reviewer must ensure that dependent
care, shelter, and medical expenses
are not deducted when someone pays
those expenses by excluded vendor
payment, except for Low Income Home
Energy Assistance Act payments.

1113
Deductions Disallowed
at Certification or
Recertification. Normally, if a
household was entitled to a deduction
at the time of the most recent
certification or recertification and did
not receive it, the case has an included
variance. There are three exceptions to
this rule:
1. The household reported
the expense but chose
not to receive the
deduction
2. The State agency asked
for verification, the
household did not
provide it, and the State
agency certified the
household without the
deduction

Example of Assistance That Was Not an
Excluded Vendor Payment: A household
was billed $200 for rent each month of its
certification period. A charity gave the
household $150 each month to help pay the
rent. In calculating the shelter deduction,
the household's rent was $200. The $150
was not an excluded vendor payment.

Example of an Expense Disallowed for
Failure to Report Expense at Application:
A household indicated on its application at
certification that it incurred shelter
expenses of $500 in rent. No utility
expenses are reported. The eligibility
worker (EW) certifies the household with
only the $500 rent used in the
determination of the shelter deduction.
The application contains a statement
informing the household that they forfeit
the right to deduction of household
expenses if they fail to report the
expense. The reviewer verified shelter
expenses of $500 rent, plus utilities. In
completing the final review findings for
the cases the reviewer would include only
the rent, not the utilities, in the shelter
deduction calculation. (Assuming no
variances are found in any of the other
elements of this review, this case would
be completed as correct, no error.

3. The household fails to
report expenses at certification or recertification after the State agency
has informed the household that such failure will result in the forfeiture of
the right to a deduction.
For the first two exceptions reviewer must exclude these variances if the State agency
documented the case record to show why the household did not receive the deduction for
these reported expenses. The documentation must be dated between the household's
application covering the sample month and the review date.
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For the third exception, the reviewer must exclude these variances if the State agency
documented the case record to show the statement informing the household of its right
to claim the deduction. The document must be dated for the time of the certification
action covering the sample month. Statements subsequent to the review date, by the
State agency or by the household, must not be taken into account.
Deductions disallowed at certification or
recertification under one of the provisions
listed above must be included in the error
determination under certain unique
circumstances. If the household,
subsequent to the certification action but
prior to the sample month (allowing for
exclusionary time frames), reports and/or
verifies the expense, and the State agency
does not allow the deduction, the
reviewer must identify an agency caused
variance by including the deduction in the
error determination.

Example of an Expense Disallowed for
Failure to Report Expense at Application:
A household indicated on its application at
certification that it did not incur any
dependent care expenses. The EW noted in
the casefile that the client was informed at
the certification interview that they forfeit
the right to deduction of household
expenses if they fail to report the expense.
The reviewer would not include a
dependent care deduction in the
calculation. (Assuming no variances are
found in any of the other elements of this
review, this case would be completed as
correct, no error.

Example of an Expense Disallowed for No Documented Reason:
A household stated at certification that it made court ordered child support payments of
$400 monthly. The EW did not allow a child support deduction, and documented no
explanation in the casefile as to why the court ordered child support payments of $400
monthly was not allowed. The reviewer verified the court ordered child support
payments of $400 monthly. In completing the final review findings for the case the
reviewer would include a child support deduction of $400 in the calculation. (In absence
of any offsetting variances found in other elements of this review, this case would be
completed as containing an underissuance.)

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Example of an Expense Not Reported After Certification or Recertification. A
household indicated on its application at certification that it incurred no shelter
expenses. The application contains a statement informing the household that they
forfeit the right to a deduction of household expenses if they fail to report the
expense. The reviewer verified that shelter expenses of $400 in rent and utilities,
which entitled the household to the SUA existed at the time of certification. The
reviewer further verified that the household moved two months after certification
and failed to report the move. The move occurred three months prior to the QC
sample month and the reviewer verified that the shelter expenses in the new
home included $300 in rent and utilities, which entitled the household to the SUA.
Because this policy affects only certification and recertification actions, and not
the requirement to report moves occurring after recertification, in completing the
final review findings for the case the reviewer would include the rent of $300 plus
the SUA from the unreported move in the shelter deduction calculation. (In
absence of any offsetting variances found in other elements of this review, this
case would be completed as containing an underissuance.

1114

Special Treatment of Variances. The reviewer can handle most

variances by referring to the procedures in Chapter 7 for including and excluding
variances. There are, particular aspects of the deductions that require special treatment.
These aspects are handled under the subject "special treatment of variances" which
appears under the dependent care, shelter, and medical headings.

1120

EARNED INCOME
DEDUCTION - 321. The earned
income deduction is 20% of the
household's total earned income, after
excluding the costs of doing business of
self-employment enterprises. The total
earned income amount appears on line 1
of the computation sheet.

1120.1 Documentation.
Documentation (other than on the
computation sheet) is necessary only if
there was a variance in the amount. If
there was such a variance, the reviewer
must explain the mistake in policy or in
arithmetic.

Example of One Way to Calculate the
Earned Income Deduction:
$763 total earned income
x.20 deductible percentage
$153 deductible amount
763 total earned income
-153 deductible amount
$610 earned income minus the deduction
Example of Another Way to Calculate the
Earned Income Deduction:
$763 total earned income
x.80 non-deductible percentage
$610 earned income minus the deduction
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1120.2 Verification. Verification of the earned income deduction is not necessary,
since the amount of the deduction depends totally upon verified earned income.

1130

DEPENDENT CARE DEDUCTION - 323. A household is entitled to the

dependent care deduction, if it incurs out-of-pocket costs for the care of a dependent
because such care is necessary for a household member to:
•

Accept employment

•

Continue employment

•

Seek employment in compliance with job search

•

Make an effort equivalent to job search if not subject to job search

•

Attend training, or to pursue education which is preparatory to employment

If an expense is both a dependent care expense and a medical expense, the reviewer must
consider the cost as a medical expense.

1130.1 Deductible Expenses. A household may deduct the amount of the
dependent care expense for which they must compensate the person who provides the
care. In-kind benefits, like meals and lodging, are not deductible expenses. The reviewer
will convert or prorate expenses as appropriate.
Deductions are governed by certification policy.

1130.2 Documentation. The reviewer must document:
•

Who received the dependent care

•

Who provided the dependent care

•

Why the household was entitled to a deduction

•

The amount of the dependent care cost in the appropriate month or months

•

The time periods covered by dependent care expenses

•

The type of verification obtained

•

The nature of any variances
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1130.3 Standard Verification.
•

Bills for such costs from the appropriate month or months

•

A statement from the provider concerning the appropriate month(s) and the
amount(s)

1130.4 Special Treatment of Variances. This section provides the instructions
on special handling of the dependent care deduction.
•

Expenses Not Reported
at Certification or
Recertification. If the
household failed to report
a dependent care expense
at certification and a
dependent care expense
existed for the budget
month, the reviewer will
determine the error by
using the amount of the
expense at the time of
certification.

Example of the Household’s Failure to
Report a Periodic Expense: At
certification, the household failed to report
a $500 quarterly dependent care expense.
In January, the household was billed $500
that covered January, February and March.
The budget month is March. The household
failed to report the expense at certification
and the expense existed for the budget
month. Therefore, the reviewer will
prorate the expense over the interval
between billings and use the amount of the
expense prorated for the time of
certification.

If the household failed to report a periodic or annual expense at
certification and the expense existed for the budget month, the reviewer
will prorate the bill over the interval between billings. The reviewer will
then use the amount prorated for the time of certification.
•

Change Reporting and Unreported Changes Subsequent to Certification or
Recertification. A change reporting household is not required to report
changes in its dependent care costs. Therefore, if the reviewer can
attribute a variance to an unreported change subsequent to certification,
the reviewer will exclude the variance.

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Example of a Reported Change That the State Ought to Have Processed,
and an Unreported Change That the Household was not Required to
Report: A household correctly reported and received a deduction for $100
in monthly dependent care costs for a three month old child. Halfway
through its certification period, on May 14th, the household learned that
its costs would drop to $80 monthly. The household reported the change
to the local food stamp office, which did not adjust the allotment. On
July 20th, the household's dependent care costs dropped again to $60
monthly but the household did not report the change. The reviewer
verified $60 in monthly dependent care costs for the sample
month/budget month of September, (change reporting, prospective
eligibility and budgeting). The reviewer would exclude this variance
because the household was not required to report the drop in its
dependent care expense. In calculating the allotment, the reviewer
would include the household's drop in monthly dependent care costs to
$80 as a variance because the change should have been in effect AORD.
•

Expenses Reported at Any Time and Not Correctly Processed.
If a household reports its circumstances and the State agency does not
correctly process the deduction, the reviewer will follow this procedure
(converting or prorating as appropriate).
If the State agency made a mathematical mistake, the reviewer will correct
the mistake.
If the State agency misapplied policy the reviewer will correctly apply
policy.

1140

STANDARD DEDUCTION - 361. The State agency must deduct the
standard deduction for all households. The amount of the standard deduction
is determined by household size and minimum deduction amounts.

1140.1 Documentation. Documentation (other than on the computation sheet) is
necessary only if there was a variance in the amount. If there was such a variance the
reviewer must explain the mistake in policy or in arithmetic.

1140.2 Verification. Verification of the standard deduction is not necessary.

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1150

SHELTER DEDUCTION - 363. A household may deduct some or all of its

excess shelter expenses.
Excess Shelter Expense

=

Total Shelter - (Income - Other Deductions)
2

1150.1 Calculation of Shelter Deduction.

1151

•

Elderly/Disabled Households. These households may deduct all of their
excess shelter expenses.

•

Other Households. Households other than elderly/disabled may deduct
their excess shelter expenses up to the limit for their area. The State
agency must use the limit for the sample month.

Rent or Mortgage. The

entire rent or mortgage payment for the
household's shelter is a deductible
expense. Multiple mortgages (like
second mortgages) for the same shelter
are all deductible, as are lot rents for
trailers. (See section 1154, Unoccupied
Home.)

Example of a Second Mortgage: A
household's monthly payment on its first
mortgage was $350. The household also
took out a second mortgage to buy an
automobile; the monthly amount of that
mortgage was $75. In calculating the
shelter expenses, the reviewer would
allow $425 in monthly mortgage expenses.

Households in which all members are homeless but are incurring or reasonably expect to
incur shelter expenses within the month, are subject to special provisions in the
calculation of shelter expenses. The shelter expenses for these households must be:
•

A State agency developed standard estimate of shelter expenses

•

The Federal standard estimate of shelter expenses

•

At the option of the household, actual verified shelter expenses that exceed
the standard estimate (See section 1157.)

1151.1 Documentation. The reviewer must document the:
•

Address or location of the dwelling

•

Type of billing (rent or mortgage)

•

Verification obtained
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•

Nature of any variances

1151.2 Standard Verification.
•

A statement from the institution holding the mortgage

•

A rent or mortgage receipt

•

A statement by the landlord or manager

•

A current lease

1152

Property Taxes. Property taxes, State assessments, and local assessments on
the household's home and property are deductible expenses. Personal property taxes are
not deductible expenses.
1152.1 Documentation. The reviewer must document:
•

The types of taxes and assessments

•

The amounts of taxes and assessments

•

The time period covered by taxes and assessments

•

The verification obtained

•

Whether the property taxes are part of the mortgage payment

•

The nature of any variances

1152.2 Standard Verification.

1153

•

Bills from the taxing authorities

•

Statements from the taxing authorities

Property Insurance. Property insurance premiums on the home itself are

deductible expenses. Insurance premiums on personal property and furnishings are not
deductible.

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1153.1 Documentation. The reviewer must document:
•

The type of property insurance

•

The amounts of property insurance bills

•

The time periods covered by insurance bills

•

The insurance company

•

The verification obtained

•

Whether the property insurance premium is part of the mortgage payment

•

The nature of any variances

1153.2 Standard Verification.

1154

•

Bills from the insurance company

•

Statements from the insurance company

Unoccupied Home. A household may deduct the shelter costs of a

temporarily unoccupied home under certain conditions.
The absence from the unoccupied home must be due to one of the following
circumstances:
•

Employment away from home

•

Training away from home

•

Illness

•

Abandonment caused by a natural disaster or casualty loss

In addition, the household must meet all of the following circumstances:
•

The household must intend to return to the home;

•

Any resident of the home during the budget month or issuance month must
not be claiming the shelter expenses for food stamps in another case; and
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•

The home must not be leased or rented during the household's absence.

1154.1 Documentation. The reviewer must document the:
•

Address of the unoccupied home

•

Household's entitlement to the deduction

•

Verification obtained

•

Nature of any variances

1154.2 Standard Verification.

1155

•

Standard verification as listed for other shelter expenses

•

Statements from any persons residing in the other home

•

Statements from the appropriate local food stamp office

Repairing a Damaged Home. The repair costs of a home are deductible

only if the home was substantially damaged or destroyed by a natural disaster. These
repair costs are not deductible if they have been or will be reimbursed from any source.

1155.1 Documentation. The reviewer must document:
•

Cause of the damage

•

Cost of the repair

•

Verification obtained

•

Nature of any variances

1155.2 Standard Verification.
•

Bills from providers

•

Correspondence from the providers

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1156

Utilities (Other Than the Standard Utility Allowance). A household

may deduct a utility expense unless the State agency certified the household by using a
standard utility allowance. Deductible utilities include (but are not limited to):
•

Fuel for heating and cooking

•

Cooling

•

Electricity

•

Water

•

Sewage

•

Garbage and trash collection

•

The basic service fee for one telephone (including tax on the basic fee)

•

Fees charged by the provider for installing the utility.

An expense is not allowable if it is covered by an excluded vendor payment or by a
reimbursement. The only exception to this concerns households who receive or expect to
receive payments under the Low Income Home Energy Assistance Act (LIHEAA).

1156.1 Documentation. The reviewer must document the:
•

Type of utility

•

Amounts of bills

•

Utility companies

•

Time periods covered by utility bills

•

Verification obtained

•

Nature of any variances

1156.2 Standard Verification.
•

Bills from the utility companies

•

Statements from the utility companies

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1157

Homeless Shelter Deduction. A state agency may use a standard

homeless shelter deduction in place of the usual shelter deduction. In those states that
use this deduction, the following applies.

1157.1 Documentation. The reviewer must document:
•

The household’s status as a homeless household

•

The household’s incurring of shelter expenses that entitle it to the homeless
shelter deduction during the budget month

•

The amount the household declares it incurred in shelter expenses.

1157.2 Standard Verification.
For the household’s homeless status and for the incurring of shelter expenses:
•

Statements from employees and volunteers of homeless shelters, halfway
houses and the like

•

Statements from individuals who made temporary accommodations
available

•

Statements from providers of social services.

Note: The reviewer need not verify all of the homeless household’s actual shelter
expenses for the sample month. The reviewer should seek sufficient verification to
indicate that the household incurred the minimum amounts of shelter costs to qualify for
the standard.

1157.3 Variances
The following are some examples of variances that may exist:
•

The state gave a household the homeless shelter deduction although the
household was not homeless

•

The state gave a household this deduction although the household received
free shelter throughout the month

•

The state gave a household this deduction although the household’s shelter
expenses were extremely low and the state agency’s policy was not to use
the deduction in that situation
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•

The state did not give this deduction when the household was entitled to it

•

The state gave this deduction when the household was entitled to deduct
actual shelter expenses.

Whether these variances are included or excluded depends upon the ordinary
requirements for reporting and acting on information at certification actions and when
changes occur.

1160

Standard Utility Allowance - 364. The State agency may choose to offer

a household a standard utility allowance (SUA) or actual expenses if the household verified
higher expenses. The State agency may also mandate the use of the SUA.
The State agency may choose to offer SUA’s in these ways:
•

A single SUA mandated for all households

•

A separate SUA for each utility

•

A single SUA including heating or cooling, which is available to all entitled
households

•

Two single SUA’s including heating or cooling:
1. One of these would be used by entitled households who receive nonLIHEAA indirect energy assistance payments
2. The other would be used by all other entitled households (including
recipients of LIHEAA payments)

•

A Limited Utility Allowance for households with no heating or cooling
expenses, but who are billed for at least two utilities, one of which may be
the telephone.

•

A Single Utility Allowance for households billed for only one utility, other
than the telephone.

The State agency may develop a variety of SUA’s, depending upon such factors as
•

Household size

•

Regions within States

•

Season
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•

Month of application

•

Length of the certification period

If the State agency does not mandate the use of the SUA, an individual household is entitled
to use a SUA if:
•

The household receives or expects to receive a LIHEAA payment for its
current residence or

•

The household meets all of the following criteria:
1. The expense is not totally covered by an excluded vendor payment or
reimbursement
2. The household incurs an expense covered by the allowance (in the case
of a single allowance that includes heating and cooling costs, it must
incur heating or cooling expenses separate and apart from rent)
3. The expense is incurred during the certification period or the period
covered by the SUA
4. The household is billed on a regular basis or if it resides in private rental
housing and is billed by their landlords on the basis of individual usage
or is charged a flat rate separately from the rent.

NOTE: Residents of public housing units that have central utility meters and that
charge households only for excess heating or cooling costs are not entitled to a
standard that includes heating or cooling costs based only on the charge for excess
usage.
If the State agency mandates the use of the SUA, the household must receive the SUA
if:
•

The household is entitled to the SUA (see above) or

•

The household resides in a public housing with central meters, paying only
excess heating or cooling (when the allowance includes heating or cooling)

The State agency may not prorate the SUA of households that share utility expenses.

1160.1 Documentation. The reviewer must document the:
•

Type of allowance
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•

Household's entitlement to that allowance

•

Source of excluded vendor payments

•

Verification obtained

•

Nature of any variances

1160.2 Standard Verification.
•

Bills from the utility companies

•

Statements from the utility companies

•

Statements from providers of LIHEAA payments

1160.3 Variances.
•

If the household was entitled to the SUA, and received it, there was no
variance.

•

If the household was not entitled to the SUA, but the EW used the SUA, the
reviewer must determine whether the household was entitled to deduct its
actual utility expenses at the time of certification, recertification or when a
utility expense was reported.

•

If the household was entitled to deduct actual expenses, the reviewer will
include the variance by using the actual expenses from certification,
recertification or when the utility expenses were reported, whichever is the
most recent.

•

If the household was not entitled to the SUA or to actual expenses, but
received either the SUA or the actual expense, the reviewer will include the
variance by not deducting any utility expenses.

•

If the household moved and was no longer entitled to the SUA, but received
it, the reviewer will handle the variance in accordance with the household's
reporting and budgeting time frames.

•

If the household was entitled to either actual expenses or the SUA, but
received neither, the reviewer will use the SUA unless the certification
record documents that the household elected to use actual expenses. If
such documentation exists, the reviewer will use actual expenses.

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• If the household was entitled to either actual expenses or the SUA and the
certification record documents that the household chose to deduct the SUA
at certification, but received a deduction for actual expenses instead, the
reviewer will use the SUA when determining a variance.
• If the State mandates the use of the SUA and the household was entitled to
the SUA but received actual expenses instead, the reviewer will use the SUA
when determining a variance.
The reviewer must determine whether the State agency reasonably anticipated at
certification, recertification or when a utility expense was reported, that the household
would be entitled to the SUA. If the State agency's anticipation was reasonable, and the
household received the SUA, there is no variance in the case. For unreported and
incorrectly processed changes, see section 1161.1.

1160.4 Prorated SUA. The reviewer must prorate the SUA if:
•

The State does not mandate the use of the SUA; and

•

Two or more households live together; and

•

They share utility expenses; and

•

The household being reviewed is entitled to the SUA and did not choose to
verify actual higher costs,

If the reviewer determines that the SUA should have been prorated for the household, the
reviewer will prorate according to the State agency's procedure.

1161

Special Treatment of Variances. This Section provides the instructions

on special handling of shelter deductions including dwelling(s) and utilities.

1161.1 Expenses Not Reported at Certification/Recertification. If the
household failed to report a monthly expense at certification and the expense existed for
the budget month, the reviewer will determine the error by using the amount of the
expense at the time of certification.
If the household failed to report a periodic or annual expense at certification and the
expense existed for the budget month, the reviewer will prorate the bill over the interval
between billings. The reviewer will then use the amount prorated for the time of
certification.

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1161.2 Change Reporting and
Unreported Changes Subsequent
to Certification / Recertification.
A change reporting household must
report its shelter expenses only when it
moves. (This does not impact on the
recipient’s obligation to report changes
in income.)

Example of an Unreported Change That
the Household Was Required to Report:
A household was certified, with
prospective eligibility and budgeting,
based upon monthly rent of $175. On
March 16th, the household signed a lease
for a different apartment, beginning May
1st, at $190 each month. In calculating
shelter expenses for May, the reviewer
would allow rent of $190, because the
household should have reported the
change.

•

Therefore, the reviewer must exclude any variances caused by unreported changes
subsequent to certification when the household did not move.

•

The reviewer must include any
variances caused by change in
residence subsequent to
certification if the change should
have been reported and acted
upon AORD.

Example of an Unreported Change That
the Household Was Not Required to
Report: A household was certified, with
prospective eligibility, retrospective
budgeting. At the time of certification,
the household's monthly rent was $225.
On June 1st, the household's rent for the
same apartment changed to $300. The
household did not report the change. In
calculating shelter expenses for the budget
month of August, the reviewer would allow
rent of $225, because the household had
not moved regardless of the rent increase.

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1161.3 Expenses Reported at
Any Time and Not Correctly
Processed.

Example of the State Agency’s Failure to
Process a Reported Change: A household
was billed $240 for annual property taxes
on November 3. When the household
applied the next day, it reported the
expense. The EW did not allow the
expense. In determining the variance, the
reviewer will use $20, the amount of the
expense prorated to the time of
certification.

If a household reports its circumstances
and the State agency does not correctly
process the deduction, the reviewer will
follow this procedure (converting or
prorating as appropriate):

•

If the State agency made a
mathematical mistake, the
reviewer will correct the mistake.

•

If the State agency misapplied
policy, the reviewer will correctly
apply policy.

Example of a Mistake in Arithmetic: At
certification the household reported a biweekly rental expense of $100. The EW
converted the household's biweekly rent as
follows:
$100.00 biweekly rent
X 2.15 conversion factor
$250.00 monthly rent
The reviewer discovered a mathematical
mistake:
$100.00 biweekly rent
x 2.15 conversion factor
$215.00 monthly rent
The reviewer corrected the mathematical
mistake by using the correct figures.

1161.4 Monthly Reporting and
Actual Expenses. Some households
must report and verify their expenses each
month. If such a household failed to
report or to verify its actual utility
expenses on the monthly report and the
household is not receiving a SUA, the
reviewer will determine the variance by
not considering that utility expense.

Example of a Monthly Reporting
Household’s Failure to Report Actual
Expenses: A household was certified on
the basis of an averaged electricity
expense of $32 monthly. On its monthly
report for the budget month of April, the
household did not report its electric bill of
$36. The reviewer will determine error by
using $0 for the electricity expense.

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1170

MEDICAL DEDUCTION - 365. A household may deduct the reported

medical expenses (in excess of $35) of any household member who is elderly or disabled
providing the expenses are not being reimbursed. (This includes any anticipated changes
in the household's medical expenses that can be reasonably anticipated for the
certification period based on available information about the household member's medical
condition, public or private insurance coverage, and current verified medical expenses.)

1170.1 Deductible Expenses. A household may deduct the medical expenses of its
entitled members to the extent that they exceed $35 for each household each month.
When performed, prescribed, or approved by a licensed practitioner, qualified health
professional, or recognized facility, the following medical expenses are deductible:
•

Basic care:
1. Medical care, dental care, psychotherapy, and rehabilitation;
2. Hospitalization and outpatient care
3. Nursing care and nursing home care

•

Hospitalization, outpatient, nursing and nursing home care for an individual
who was a household member immediately prior to entering a hospital or
nursing home.

•

Drugs:
1. Prescription drugs
2. Over-the-counter drugs

•

Equipment:
1. Medical supplies
2. Sick-room equipment
3. Dentures
4. Hearing aids
5. Prosthetics
6. Prescribed eye glasses
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7. Other prescribed equipment
•

Health and hospitalization insurance policy premiums.

•

Medicare/Medicaid:
1. Medicare premiums
2. Medicaid cost-sharing expenses
3. Billed spend-down expenses

•

Service animals (i.e., seeing eye dogs):
1. Securing and maintaining a service animal
2. Animal food
3. Veterinary care

•

Reasonable costs of transportation and lodging to obtain medical treatment
or services.

•

Attendant, homemaker, home health aid, child care services, housekeeper
necessary due to age, infirmity, or illness. Amount equal to the one-person
coupon allotment if the household furnishes the majority of a home care
attendant's meals.

If an expense is both a dependent care expense and a medical expense, the reviewer must
consider the cost as a medical expense.
A household may not deduct the following expenses:
•

Premiums for health and accident policies that pay lump sum settlements
for death or dismemberment

•

Premiums for health and accident policies that are payable as income
maintenance, mortgage continuance or loan payments while the beneficiary
is disabled

•

Expenses that have not been verified as non-reimbursable
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1170.2 Documentation. The reviewer must document the:
•

Household members' entitlement to the deduction

•

Deductible expenses

•

Treatment of reimbursements

•

Time periods covered by medical bills

•

Verification obtained

•

Nature of any variances

1170.3 Standard Verification.
Positive Allegation:
•

Bills from the providers of health insurance, services, and products

•

Statements from these providers

•

Health insurance policies clearly describing their areas of coverage

Negative Allegation: In the absence of contradictory information, the reviewer may
accept the household's disclaimer of deductible medical expenses and health insurance.

1170.4 Calculation of Medical Expenses. The reviewer must review medical
expenses as follows:
Comparison I. Verify actual medical expenses that are billed or otherwise
became due in the budget month. This figure includes any prorated amounts
allocated to the budget month. These figures are used in the comparison I
allotment test. (See section 621.)
Comparison II.
•

If necessary, correct the worksheet expense figure for:
1. Misapplication of policy
2. Failure to act or correctly act on reported changes
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3. Computational errors by the eligibility worker
4. Incorrect reporting or failure to report by the household at the time of
certification/recertification
•

Exclude variances attributable to an unreported change subsequent to a
certification/recertification.

•

Use the corrected worksheet figure in the error determination process.

1170.5 Special Treatment of Variances. This section provides the instructions
on special handling of medical deductions.
•

Reimbursement.
If the EW requested
verification of
reimbursement from the
household and the
household was certified
without the expense
because it did not provide
the verification, the
reviewer must not allow
the medical expense.

Example of an Expense That the State
Disallowed Because There Was No
Verification: A household stated at
certification that it incurred a monthly
medical expense of $50 for visits to a
doctor. The EW requested verification
that the expense was not reimbursable.
The household did not provide the
verification, so the EW did not allow a
medical deduction. There is no variance.

If the casefile does not
contain documentation of Example of a Reported Expense That the
State Did Not Process, for No Apparent
the EW's request for
Reason: A household stated at
verification of
certification that it incurred a monthly
reimbursement, or if the
medical expense of $40 for visits to a
household did not report
doctor. The EW did not allow a medical
the medical expense at
deduction. The reviewer verified that the
certification/
household had no medical insurance AORD
recertification, the
and included a variance.
reviewer must verify
whether or not the
household member had
medical insurance, Medicaid, or Medicare AORD and the type of expenses
covered.
1. If there was no insurance, the reviewer must allow the expense.
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2. If the household had
insurance but the
verification clearly showed
that a type of expense or
portion of the expense was
not covered by insurance,
the portion of the expense
not covered by insurance
would be allowed.
3. If the household had
insurance but there was no
clear verification of whether
an expense was covered by
the insurance or the amount
that the insurance would
pay, the expense would not
be allowed.
•

Example of an Unreported Expense That
Was Not Reimbursable: A household
stated at certification that it had no
medical expenses and the EW deducted
none. The reviewer verified that at
certification the household did incur
medical expenses of $220 monthly for
doctors fees, laboratory fees, and drugs to
treat emphysema. The reviewer also
verified that the household had medical
insurance AORD. The insurance company
stated that such expenses would not be
reimbursed. Therefore, the reviewer
included a variance by allowing the
expenses in the amount of $220.

Reported Medical Expenses.
Recurring Medical Expenses. Recurring medical expenses such as doctors
visits and prescriptions are considered by developing a monthly amount
based on frequency.
Processed Expenses. If
the medical expense
sources and amounts are
correct, but the agency
misapplied policy or made
expense computational
mistakes, the reviewer
must use these correct
amounts, and apply correct
policy in determining the
medical expenses.

Example of a Mistake in Prorating:
During its certification interview, a
household reports and requests proration
for a bi-monthly health insurance premium
of $40. The EW prorated the premium
over the interval between billings but
incorrectly allowed $25 monthly. The
reviewer verified a $40 expense at
certification. The reviewer corrected the
proration and used $20, the correct
amount prorated to the time of
certification.

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The reviewer will consider
Example of Correct Proration of an
periodic medical expenses
Incorrectly Reported Expense: When a
that were prorated, to have
household applied on April 3rd, it reported
been prorated based on the
a bi-monthly dog food bill of $40 for its
household's request for
seeing-eye dog and requested proration of
proration, unless the casefile
the expense. The EW prorated this
discloses a conflicting
expense and allowed $15 each month.
request by the household
The reviewer verified that at the time of
that the expense be
application the household’s bi-monthly
deducted in the month that
expense was actually $40. Therefore, the
the expense was billed or
reviewer corrected the EW’s figures and
otherwise became due.
used $20, the correct amount prorated to
If the case supports a
the time of certification.
Conflicting request, the
periodic medical expense
must be deducted only in the
month in which it was billed or otherwise became due.
If the EW incorrectly prorated or did not prorate a medical expense that
should be prorated, the reviewer must calculate the correct prorated
medical expense. The reviewer must correct for any variance that occurred
at the most recent certification/recertification or reported change.
Unprocessed Expenses. If
the household reported an
expense at certification and
the EW did not process the
expense, the reviewer will
allow the expense. If the
household requested
proration, the expense will
be prorated over the
certification period.

Example of a Change That Was Reported,
But Not Processed: In the middle of the
certification period, a household reported a
new expense for a quarterly health insurance
premium of $165. The household requested
that the expense be prorated. The EW did
not process this change. As the household
reported the change and requested
proration, the reviewer would allow the
expense and prorate to the time the change
was reported.

If the household reported a change subsequent to certification and the EW
did not process it, (but should have in accordance with the time frames in
section 720) the reviewer must allow the expense. If the household
requested proration, the expense will be prorated to the time the change
was reported.

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One-Time Medical
Expenses. One-time
medical expenses are
prorated over the
remainder of the months
in the certification
period or deducted in
the month the expense is
billed or otherwise
becomes due.

Example of a Processed, One-Time
Expense: A household was certified in
January for 12 months. On June 2, the
household reported a one-time nonreimbursable medical expense of a $400
hospital bill. The household requested
that the expense be prorated. The EW
prorated the expense over seven months
(June - December) and allowed $57.14 for
each month. Since the expense was not
included in the June allotment, the
reviewer must prorate the expense over
six months (July - December) and use
$66.66 in the medical expense calculation.

Processed Expenses. When one-time medical expenses have been
prorated, the reviewer will consider the request for proration to have been
made by the household unless the casefile discloses a conflicting request
(that the expense be deducted in the month that the expense was billed or
otherwise became due). If the case supports a conflicting request, the onetime medical expense must be deducted only in the month in which it was
billed or otherwise
became due.
Example of a Reported Expense That
the State Prorated Over Too Many
If the EW incorrectly
Months: A household reported, and
prorated a medical
verified a one-time, nonreimbursable,
expense that should be
hospital bill of $500 in September. The
prorated, the reviewer
household requested that the expenses be
must calculate the
prorated. The EW prorated the bill over
correct prorated medical October and November. The household's
expense. The reviewer
certification period was scheduled to end
must correct for any
on December 31st. Any proration of this
variance that occurred at expense can be done only over the
the most recent
remainder of the certification period. The
certification/
reviewer must prorate the amount of the
recertification or
reported change over the remaining
reported change.
months of the certification period.

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Unprocessed Expenses.
If the household reported
an expense at
certification and the EW
did not process the
expense, the reviewer
will allow the expense in
the medical expense
calculation. If the
household requested
proration the expense
will be prorated over the
certification period.

Example of a Reported, But Unprocessed
Expense: A certified household incurred a
$600 deductible medical expense in
December, the last month of its
certification period. Although the
household reported the expense at its
December certification interview and
requested proration, the EW did not
deduct it. The household's new
certification period was January through
June and the sample month is one of these
months. The reviewer corrects the EW's
misapplication of policy by prorating the
reported change over the 6 months of the
new certification period.

If the household reported
a change subsequent to
certification and the EW did not process it, (but should have in accordance
with the time frames in section 720) the reviewer must allow the expense in
the medical expense calculation. If the household requested proration, the
expense will be prorated to the time the change was reported.
•

Unreported Expenses. The reviewer must verify the household's
unreported expenses at the time of certification or recertification and use
the amount in the calculations for Comparison II specified in section 1170.4
review instructions. Unreported expenses are to be deducted in the month
that the expense was billed or otherwise became due.
A household is not required to report changes in its medical expenses
subsequent to certification or recertification. Therefore, the reviewer must
verify expenses and exclude any variances that can be attributed to
unreported changes in medical expenses during the certification period.

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1180

CHILD SUPPORT PAYMENT DEDUCTION - 366. A household is entitled

to the child support payment deduction if
it incurs legally binding costs for any child
support payments made to a nonhousehold member for the care of a child.
This includes legally obligated vendor
payments made to a third party on behalf
of a child. Voluntary support payments
are not deductible.

1180.1 Documentation. The
reviewer must document:

Example of the Difference Between
Legally-Obligated and Voluntary
Expenses: During its certification
interview, a household reports a monthly
child support payment in the amount of
$150. In addition to the $150 monthly
payment, the EW allowed a deduction for
a payment in the amount of $25 to a day
care center. The reviewer verified that
the household was legally obligated and
actually paying $150 a month in child
support payments and that the $25
payment to the day care center was
voluntary. The reviewer corrected the
misapplication of policy and used $150 in
the error determination process.

•

Who is legally obligated to
pay child support

•

The amount, and payment
schedule, that the
household member is legally obligated to pay

•

Who received the child support payments

•

Who actually provided the child support payments

•

Why the household was entitled to a deduction

•

How much the child support payments were in the appropriate month or
months subject to review

•

The time periods covered by child support payments which were made

•

The type of verification obtained

•

The nature of any variances

1180.2 Verification. The reviewer must verify the household's legal obligation to
pay child support, the amount of the obligation and the amount actually paid. The
primary source of verification for declared child support payments is the household
making the contribution. When support payments are made through a third party, such as
a court or probation office, verification can be made through that agency. Verification
can also be made through the person, or persons, in receipt of the child support
payments. The reviewer must be alert to the effect of timing and amount of payment
relative to the review date.
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Child support payments should be verified through use of the following documentation:
From the Household. Documents or other records generally available from the household
include:
•

Canceled checks

•

Wage withholding statements

•

Income tax returns

•

Divorce or separation decrees

•

Court order

•

Support agreements

•

Correspondence regarding support payments

From Other Sources. Documents or other records available from other sources for
verification include:
•

Statements from the custodial parent

•

Court records

•

Lawyer's records

•

Divorce or separation decrees

•

Employer's records showing attachment of wages

•

Title IV-D and Child Support Enforcement agencies

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1180.3 Calculation of the Child
Support Deductions. The reviewer
must review child support deductions as
follows:
Comparison I.
Verify the actual amount of the child
support payment in the budget month.
Convert if required. This figure is used
in the comparison I allotment test.
Comparison II.
If necessary, correct the worksheet
expense figure for
•

Misapplication of policy

•

Failure to act or correctly act on
reported changes

•

Computational errors by the
eligibility worker, and

•

Incorrect reporting or failure to
report at the time of certification
or recertification by the
household.

Exclude variances attributable to an
unreported change subsequent to
certification/recertification.
Use the corrected worksheet figure in
the error determination process.

Example of Incorrect Reporting of
Deductible Expenses: At the certification
interview on July 11th, the household
stated that it was legally obligated and
actually paying $60 a month in child support
expenses. The EW allowed a child support
deduction in the amount of $60. The
reviewer verified that in addition to the $60
payment, the household actually paid
$25.00 monthly for health insurance. The
divorce decree (dated January 5th) stated
that the household was legally obligated to
pay $25.00 monthly for health insurance.
The household actually paid the expenses
and the difference existed at the time of
certification, therefore, the reviewer will
use $85 in the error determination process.
Example of a Reported, but Unprocessed
Change: At certification, the household
reported a $40 child support payment. The
EW allowed a child support deduction in the
amount of $40. The reviewer verified that
the household's legal separation agreement
had been amended one week after the
household was certified and that the
household actually paid $125 a month for
child support. The reviewer found that the
EW had documented receiving a call from
the household reporting that its child
support payment had increased to $125, but
failed to take any action. In accordance
with the reporting requirements and time
frames, the change should have been in
effect AORD. Therefore, the reviewer
would use $125 in the error determination
process.

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CHAPTER 12
MAKING THE REVIEW DECISION
1200

GENERAL. The review decision consists of determining whether

there is an error in the case and, if so, the dollar amount of the error. The
State agency may also opt to establish the dollar error amount associated with
individual variances. The procedures to be used and the documentation
requirements are described in this chapter. See chapter 6 covering the
eligibility and allotment tests which are integral to making the review decision.

1210

THE COMPUTATION SHEET. The SNAP computation sheet of the

Form FNS-380, is to be used to document all completed active case reviews.
The only exceptions are reviews of households that were ineligible for reasons
other than income. Columns (1) and (2) are required to be completed,
Columns (3), (4), and (5) are optional. Regardless of the use of columns (3),
(4), and (5), Columns (1) and (2) must be used as outlined in sections 1211 and
1212 below.

1211

Column (1). Column (1) of the computation sheet must be

completed for all active case reviews. In this column, record the figures that
the eligibility worker used to compute the allotment for the sample month.

1212

Column (2). Column (2) of the computation sheet must be

completed for all active case reviews. If the household was ineligible because
of gross or net income, the reviewer may stop at the appropriate income line.
In this column, record the final State agency quality control (SAQC)
determination figures. The figures to use as final SAQC determination
figures depend upon the results of the Eligibility and Allotment Tests of the Error
Determination Process. See the guidance below and consult Chapter 6.
Note: If the household was ineligible because of gross or net income the
reviewer may stop at the appropriate income line.

1212.1 In the three cases below, the figures to use for final SAQC figures
in Column (2) are the figures based upon verified circumstances, including or
excluding variances as appropriate.

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Case 1:
ELIGIBILITY TEST = Ineligible
ALLOTMENT TEST = N/A
Column 2 is filled out to the point of ineligibility.
(See section 610)
Case 2:
ELIGIBILITY TEST = Eligible
ALLOTMENT TEST:

*

COMPARISON I = $50 or less difference in allotments
COMPARISON II = N/A
Column 2 is filled out with the comparison I figures.
(See section 621.3)

Case 3:
ELIGIBILITY TEST = Eligible
ALLOTMENT TEST:

*

COMPARISON I = Greater than $50 difference in allotments

*

COMPARISON II = Greater than $50 difference in allotments
Column 2 is filled out with the figures with the smallest amount from
Comparison I or Comparison II.
(See section 622.4)

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1212.2

In the case below, the figures to use as final SAQC figures in
Column (2) are the figures based upon verified circumstances, including all
variances. No variances are to be excluded.

Case 4:
ELIGIBILITY TEST = Eligible
ALLOTMENT TEST:
COMPARISON I = Greater than $50 difference in allotments

*

COMPARISON II = $50 or less difference in allotments

*

Column 2 is filled out with the Comparison II figures.
(See section 622.3)

1213

Columns (3), (4), and (5). Columns (3), (4), and (5) of the

computation sheet are optional columns. They are included for the
convenience of States and may be used for recording:
•
•
•
•
•

1220

Comparison I
Comparison II
Illustrating the impacts of individual variances
Reflecting a retrospectively budgeted household's prospective
eligibility
Any other State identified purpose

COMPUTING THE AMOUNT ISSUED IN ERROR. The amount

issued in error is the difference between the allotment amount authorized by
the eligibility worker for issuance for the sample month (last line of Column (1)
of the SNAP computation sheet) and the allotment amount computed by the
SAQC reviewer (last line of Column (2) of the SNAP computation sheet),
including eligible cases with differences of $50 or less. Although errors below
the threshold level will not be included in the final determination of a State’s
official error rate, the amounts issued in error are considered an overissuance
or an underissuance and must be recorded on the Form FNS-380-1. For cases
that are ineligible, the total allotment amount is issued in error (there is no
consideration of there being less than a $50 error).

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If the difference between the amounts is greater than $50, there is an error in
the allotment amount authorized for the sample month that will be included in
the error rate. The reviewer must use the figures from either Comparison I or
Comparison II to determine the amount in error. The figures used must be
whichever figures result in the least quantitative error for the case. (See
chapter 6.)

THE REVIEW SCHEDULE. The Review Schedule Form FNS-380-1
is to be used to record error findings from reviews of active cases. A line-byline description of this form is contained in Appendix C following the form. For
purposes of this chapter, the completion of items 8 (review finding), 10
(amount of error), and 16 (dollar amount attributed to a variance) of the FNS380-1 are described below.

1230

1231

Coding Review Findings - Item 8. For Item 8 of the FNS-3801, indicate the results of the Quality Control review by entering one of the
following codes:

*
*
*

CODE

DESCRIPTION

1
2
3
4

Amount correct (allotment difference $0)
Overissuance (regardless of the threshold)
Underissuance (regardless of the threshold)
Ineligible

Example of the Coding of Case Findings: This shows the coding for the
cases illustrated in section 1212 above.

*

*

Case 1

Code 4 - Ineligible

Case 2

Code 1, Code 2 or Code 3, as appropriate

Case 3

Code 2 or Code 3, as appropriate

Case 4

Code 1, Code 2 or Code 3, as appropriate

1232
*

Amount of Error - Item 10. For Item 10 of the FNS-380-1,
indicate the dollar amount issued in error, computed as in section 1220 above.
This must include amounts that are less than the $50 threshold.

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As an example, the cases illustrated in section 1212 above would be handled as
follows:

Example of the Coding the Amount of Error: This shows the coding for the
cases illustrated in section 1212 above.
DOLLAR AMOUNT ISSUED IN ERROR
Case 1

Entire allotment amount was issued in error

Case 2

Allotment difference regardless of threshold

Case 3

smallest discrepant amount from Comparison 1 or
Comparison 2

Case 4

Allotment difference regardless of threshold

1233
Coding the Dollar Amount Associated With Variances
- Item 16.
1233.1 Mandatory Use. All State agencies shall compute and enter the
dollar amount associated with excluded variances that resulted from correctly
processed information received from an automated Federal information
exchange (FIX) system. The State agency will use the method outlined in the
paragraph entitled “One Variance” in section 1233.2 when there is only one
variance in the case. When there is more than one variance, the State agency
may use the simple calculation method outlined in the first bulleted
subsection, entitled “Simple Calculation Method”, under the paragraph entitled
“Multiple Variances” in section 1233.2 or an alternate method to determine the
dollar amount of the errors. The State agency may not use the refined
calculations in the bulleted subsection, entitled “Refined Calculation Method”,
under the paragraph entitled “Multiple Variances” in section 1233.2.

1233.2

Optional Use. At its option the State agency may elect to code

the dollar error amount associated with individual included variances. The
dollar amount of all included variances is reported as a total in Item 10, Amount of
Error. For those State agencies electing to code the dollar error amount
associated with individual variances, the following guidance is offered.

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One Variance. If only one variance exists in the case, the dollar amount of
error to be recorded in Item 16 is the same as the amount recorded in Item 10.
(See section 1232.) No further calculations are necessary. Complete the other
items in section 2 of the Form FNS-380-1, as appropriate.

Multiple Variances. If more than one variance exists in the case, the dollar
amount of error to be recorded in Item 16 is calculated for each variance. Use
the SNAP computation sheet, Columns 3, 4, or 5, and one of the methods below
(or another method) to determine the impact (dollar amount of error)
attributable to each individual variance. If the case has more than 3 variances,
or if additional columns are needed for some other reason, use additional
computation sheets. After the individual impacts are determined, complete
the items in section 2 of the Form FNS-380-1.

• Simple Calculation Method.
The simple calculation involves taking a separate look at each
variance and identifying what the dollar impact is of the variance
when looked at in isolation of anything else happening in the
case. To do this you will use the EW’s figures for everything
except the variance being calculated.
When using this method, the sum of the impacts of the individual
variances does not equal the amount of the overissuance or
underissuance identified for the case.
To calculate the impact of the individual variances, complete a
separate column of the SNAP computation worksheet.
•

At the top of the column, identify the variance being
examined.

•

Use the EW's figures for all elements, except the element
containing the variance under examination.

•

For any element containing two or more variances in a single
element, treat each variance separately.

•

Compute an allotment amount based upon the EW’s figures
for everything except the variance being calculated. For the
variance being examined use the corrected figure.

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•

Compare this allotment amount with the allotment amount
authorized by the EW for the issuance month. The difference
between these two amounts is the dollar impact, associated
with that particular variance.

Repeat all steps for each variance.
For example, if the calculation using the variance yields an
allotment of $125 and the EW figures calculated an allotment of
$100, the impact of the variance is a lowering of the allotment
by $25. This would be indicated as a negative number, - 25.
If the calculation using the variance yields an allotment of $85
and the EW figures calculated an allotment of $100, the impact
of the variance is an increase of the allotment by $15. This
would be indicated as a positive number, + 15.
(See the example case and figure 1.)
•

Refined Calculation for Multiple Variances.
The refined calculation method is an expansion on the simple
calculation method. When using the simple calculation method,
for more than one variance in a case, the sum of the impacts of
the individual variances do not equal the amount of the
overissuance or underissuance. The refined calculation is a
methodology to follow which takes the actual amount established
as the overissuance or underissuance, and identifies the impact
of the individual variance relative to the error amount. This
method goes a step beyond the simple calculation to ensure that
the sum of the impacts equals the amount of
overissuance/underissuance for the case. This places the impacts
of individual variances more into perspective.
Note: Do not include FIX variances in these computations. FIX
variances are not included in the error determination and thus
are not part of any overissuance or underissuance.
Perform all the steps of the Simple Calculation method above to
establish the impact of the individual variances.

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Total the resultant individual dollar impact amounts. In doing
this total, negative numbers are subtracted from positive
numbers.
Determine the percentage that the actual error dollars for the
case relative to the total of the individual impacts of the
variances. By determining the percentage that the error dollars
are to the sum of the individual impacts of the variances, you can
apply this resultant percentage to the individual impacts of a
variance to determine its relative impact to the error dollars of
the case.
To determine the percentage, divide the overissuance/
underissuance amount for the case by the total of the impact of
the individual variances.
Percentage of error dollars of total impact of the individual
variances:

Overissuance/Underissuance Error Dollars

X 100
Total of the Dollar impact of the individual variances

Multiply each individual dollar impact for a variance by the
determined percentage. Each resultant figure represents the
dollar impact, associated with that particular variance.
(See the example case and figure 2.)

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Example Case:
Household Description: The household was comprised of Jan Williams (age 35)
and her two children, Alan (age 15) and Terry (age 11). Mrs. Williams' mother,
Mary Bailey (age 61), also lived in the household. All 4 purchased and prepared
their meals together. No one was disabled. Jan Williams earned $650 a month
working part-time at a local hardware store. She netted $500 a month from
rental property that she did not actively manage. She also received $400 a
month for child support from her ex-husband. Her mother, Mrs. Bailey, earned
$450 a month working part-time at the local movie theater. The rent and
utilities for their apartment totaled $1050 a month. The household was
certified as a 3-person household for October 2001.
EW actions: The EW correctly identified Jan Williams' earned income from the
hardware store, her unearned income from the rental property, and correctly
computed the shelter costs.
Variances: There are 4 variances in the case: 1) The EW failed to include the
unearned income from child support, 2) The EW incorrectly excluded Mrs. Bailey
from the household, and in doing so, failed to include Mrs. Bailey's $450 a month
earned income, 3) used the allotment amount for a household of 3, instead of a
household of 4, and 4) incorrectly allowed medical deductions for Jan Williams
and her sons.
Impact Calculation. Figures 1 and 2 below, trace the calculation of the impact
of each of the individual variances in the example case.
Simple Calculation Method (Figure 1)
Refined calculation Method (Figure 2)

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Figure 1

Simple Calculation of Variance Dollar Amounts
Associated With Individual Variances
Earned Income
Unearned Income

EW
650

SAQC Variance
1100
A

B
650

C
650

D
650

500

900

500

500

500

900

Gross Monthly
Income

1150

2000

1600

1550

1150

1150

Earned Income
Deduction

130

220

220

130

130

130

Standard Deduction

134

134

134

134

134

134

Excess Medical Costs

30

0

30

30

0

30

Allowable Shelter
Deduction (Actual
costs = $1050)

622

227

332

422

607

622

Net Monthly Income

234

1419

1104

834

279

234

Thrifty Food Plan

356

452

356

356

356

452

30% of Net Income

71

426

332

251

84

71

285

26

24

105

272

381

259

261

180

13

-96

Allotment
Over/Underissuance
or Impact

B

A
1100

C

D

Sum of Impact = 358
Variance A = $450 in earned income not counted by EW. Individual impact =
$261 overissuance.

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Variance B = $400 in unearned income not counted by EW. Individual impact =
$180 overissuance.
Variance C = EW incorrectly allowed medical costs (not elderly/disabled).
Individual impact = $13 overissuance.
Variance D = Household size was 4, not 3. TFP = $452. Individual impact = $96
underissuance.
Note: Using this method, the sum of the individual impacts ($358) is not equal
to the overissuance ($259).

Figure 2

Refined Calculation of Variance Dollar Amounts
Associated With Individual Variances
Calculation of Refinement Factor:

259 (Over/Underissuance)
÷ 358 (Sum of Impacts)
= .72 (Refinement Factor)

$ Impact by Individual Variances
A
B
C
D
Impacts by Simple Calculation Method
261
180
13
-96
Times Refinement Factor
.72
.72
.72
.72
Impacts by Refined Calculation Method
188
130
10
-69
Sum of Impacts = 259
Using this method, the sum of the impacts ($259) is equal to the overissuance
($259).

1240
Transmission of Active Case Findings to FNS, Data
Checking, and Changing Case Findings. Once the error determination
process is completed and the review decision has been made, the case findings
shall be transmitted to FNS. The State agency shall have 10 days from the date
of transmission to check the validity of the data transmitted. The State
agency may change data submitted during this 10-day period. Following that
10 days FNS shall select its subsample from the cases transmitted. Once a case
has been subjected to Federal subsampling, the protected field findings for
that case may not be changed whether or not the case was selected for
Federal re-review.
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CHAPTER 13
NEGATIVE ACTION RECORD REVIEWS
1300
actions.

*

INTRODUCTION. This chapter describes reviews of negative

*
*
This section provides guidance on conducting reviews of the household’s case
*
record including documentation of verification contained in the case record
and obtaining verification from collateral contacts. The negative action review *
*
does not include a field investigation to ascertain the total circumstances of
the household as of the review date. The negative action review is primarily a *
*
desk review with possible contact with the household or a collateral contact.
*
*
Negative actions are actions that were taken to deny, terminate, or suspend a
*
household’s benefits. The purpose of the negative action review is to verify
*
through documentation contained in the case record whether the State
*
agency’s action to deny, terminate, or suspend the household was valid. A
*
valid negative action is one that is based on a valid reason documented in the
*
case record and the action and reason are properly communicated to the
household. Certain required application processing procedures are reviewed in *
determining validity (Section 1340). In constructing the negative sample frame *
the action date will be sampled. The action (review) date for negative actions *
*
could be the date of the agency’s decision to deny, terminate or suspend
*
program benefits, or the date on which the decision is entered into the
computer system, or the date of the notice to the household, depending on the *
*
characteristics of individual State Systems. State agencies must consistently
apply the same definition for the review date to all sample actions of the same *
*
classification. Only the action sampled is subject to review. Other actions,
including actions taken on the case after sampling are not considered a part of *
*
the review.
1310

PURPOSE AND SCOPE OF THE NEGATIVE ACTION REVIEW.

1320

Negative Definitions.

Action (review) date could be the date of the agency’s decision to deny,
terminate or suspend program benefits, the date on which the decision is
entered into the computer system, or the date of the notice to the household,
depending on the characteristics of individual State Systems.
Decision Date – The date that a decision was made to deny an application,
terminate or suspend a household’s participation in SNAP.
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Denial – An action taken to implement a determination that a household is
ineligible for SNAP.
Negative Action – Any process, manual or automatic, to deny benefits to a
SNAP applicant household, terminate benefits of certified SNAP households or
suspend benefits of certified SNAP households.
Notices – Documented communication(s) (non-verbal) that are sent to SNAP
applicant households and SNAP participant households. Some communications
describe negative actions and some do not. Examples of such notices include:
Notice of Adverse Action, Denial Notice, Suspension Notice, Notice of Missed
Interview, Notice of Missing Verification, Request for Contact, etc.
QC Negative Action Review – The review of the action taken to deny benefits
to a SNAP applicant household, or the action to terminate benefits of certified
SNAP households or the action to suspend benefits of certified SNAP
households.
Review Date – The date of the sampled action that is being reviewed as a
negative action.
Suspension - An action taken to suspend benefits when a household has not
been terminated from the Program but is ineligible for benefits or is eligible for
zero benefits.
Termination – An action taken to discontinue SNAP benefits.

1330

DISPOSITION OF ACTION REVIEWS. Each negative action

selected in the sample of negative actions must be coded and summarized (See
Appendix D) on the FNS-245 form by classifying it as review completed (See
Section 1350), not subject to review (NSTR)/listed in error, case deselected
(See Section 1332), or incomplete(See Section 1333).

1331

Actions Subject to Review. The following actions are subject

to review:
•

Any action to deny initial benefits;

•

Any action to deny benefits at recertification;

•

Any action to terminate benefits. A termination is the result of a
deliberate State agency action.

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•
•

•
•
•
•
•

Any action to terminate the SNAP benefits of a former TANF
household that should be receiving transitional benefits.

*
*
*
Any deliberate termination action (not a certification period
*
expiration) taken in response to a reported change in household
*
circumstances, even if the certification period would have ended. *
*
Any action to terminate a household that continued to receive
*
benefits pending a fair hearing.
*
*
*
Any action to shorten a certification period.
*
Any action to suspend a household’s benefits; including suspended *
*
households whose benefits were later restored.
*
*
Any suspended household that continued to receive benefits
*
pending a fair hearing.
*
Households whose certification periods expired that should have
received transitional benefits and did not.

*
*
1332
Actions Not Subject to Review. Certain types of negative
actions are to be excluded from the QC sample. These are normally eliminated *
*
in the sampling process; however, if such actions reach the reviewer, they
*
must be eliminated at that point and reported as NSTR on the Quality Control
*
Negative Action Review Schedule, Form FNS-245. Actions that meet the
*
criteria to be considered NSTR from the list below take precedence over any
*
other finding. Such actions include:
*
•

Households that have withdrawn an application prior to the
agency’s determination.

•

Households that at the time of sampling are:
1. Under active investigation for intentional SNAP violation (IPV);

*

2. Scheduled for an IPV investigation sometime during the next
five months; or
3. Pending an IPV hearing.
•

Households that have their SNAP case closed when their assigned
certification period ends, i.e., the household is not recertified.
The certification period closure itself is NSTR. If the household
applied for recertification and, for whatever reason, the

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recertification application was denied, that denial is subject to
review.

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•

Actions removed from the sample as a result of a correction for
oversampling.

•

Households that have been sent a notice of pending status but
were not actually denied participation.

•

Actions listed in error. This category of actions includes
administrative actions necessitated by a State agency’s
certification system and/or procedures, where there is no intent
to deny or terminate a household’s program benefits, only to
correct an administrative fault in the case. An example would be
an action where the household was erroneously registered (wrong
SSN, etc.) and was subsequently denied because it was already
registered under another case number (before any benefits were
issued). Other examples would include situations where a
household has filed multiple applications and only one needs to be
processed while the others are removed from the system, or
situations in which the certification system will only allow the
reclassification of an action (PA/SNAP to non-PA/SNAP, for
example) by closing the case under the original case number and
on the same day reopening under a new case number. Adequate
documentation must be provided to support this finding.
Example of Administrative Denial: On 1/5 the household
applies for SNAP using the State’s website on-line application.
On 1/7 the household also files a paper application in the local
certification office. Both applications are input into the
State’s certification system. When the EW interviews the
household on 1/10 the duplicate applications are discovered,
the EW removes the 1/7 application from the system and
processes the 1/5 (first one received) application for
certification. The removal of the 1/7 application from the
system is an administrative action NSTR for QC negative
review.

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Example of Administrative Denial: On 1/5 the household
applies only for Medicaid benefits using the State’s multiple
program (TANF/SNAP/Medicaid) application. On 1/14 the EW
denies the household’s application for Medicaid and the
State’s certification system issues denial notices for Medicaid,
and TANF and SNAP as well. The SNAP denial of the 1/5
application for Medicaid is an NSTR administrative action. If
there is no application for SNAP there can be no denial for
SNAP that is subject to QC negative review.
Example of Administrative Termination: A woman and her
two daughters are receiving TANF and SNAP benefits under
case number PA1775713. On 1/14 she reports that the
children are now living with their father. The EW processes
the reported change to terminate the TANF income, update
the household size from 3 to 1, and recalculate a new lower
SNAP allotment effective 2/1 under case number NPA3140822.
Case number PA1775713 is shut down at the same time that
case number NPA3140822 is opened up. The reclassification of
the household and subsequent assignment of a new case
number in the certification system is an administrative action
NSTR for QC negative review.
•

Households denied SNAP benefits under a disaster certification
authorized by FNS.

•

Household’s benefits which are terminated or suspended for
failure to file a complete monthly report by the extended filing
date, but reinstated when subsequently the complete report was
filed before the end of the issuance month, and received the full
months’ SNAP benefits.
Example of an action following a Failure to File Report that
is NSTR: The household has been certified from January thru
December and is on montly reporting in a two month
retrospective budgeting system. The monthly report is due on
the 5th of every month. The household fails to submit the
monthly report for May by 6/5, and on 6/15 the EW terminates
the case effective 6/30 and sends a Notice of Termination for
failure to file the monthly report. The household files the
report on 6/28 and on 7/3 certification is restored and full
benefits for July are authorized.

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Example of an action following a Failure to File Report that
is Subject to Review: The household has been certified from
January thru December and is on monthly reporting in a two
month retrospective budgeting system. The monthly report is
due on the 5th of every month. The household fails to submit
the monthly report for May by 6/5, and on 6/15 the EW
terminates the case effective 6/30 and sends a Notice of
Termination for failure to file the montly report. The
household files the report on 7/5 and on 7/10 certification is
restored and prorated benefits for July are authorized.

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Households that experience a break in participation due to a
computer malfunction that is not the result of a deliberate action
by the State agency to terminate benefits.

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A suspended case after the initial month of a multi-month
suspension.

* 1333

Incomplete Cases. A negative action is to be reported as

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incomplete if, after all reasonable efforts, the reviewer is unable to locate the
case record. The case record may consist of a paper or electronic record,
however limited. If what constitutes the case record for a specific action does
not document the specific negative action under review, the action must be
coded as invalid. Since automation has advanced over time, most actions will
have some records to review. An action should have a disposition of
incomplete only on the rare occasion when there are no paper documents and
no automated record on the household. This is the only reason for which a
reviewer may designate a sampled action as incomplete.

1340
APPLICATION PROCESSING ASPECTS OF THE NEGATIVE
* REVIEW. Negative actions are reviewed to determine the validity of the
* agency's action to deny, terminate, or suspend the household. Certain failures
* to complete application processing requirements correctly are part of that
review and may result in a negative action being determined to be
inappropriate and, therefore, invalid. These application processing
* requirements include (unless an approved waiver is in place for the state
* agency):

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•

Failure to send an Appointment Letter when required or a Notice
of Missed Interview (NOMI) when required, or sending the required
letter or notice to an incorrect address; notification to the
household must be made accurately.

•

Failure to provide expedited service where appropriate;

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•

Denial of action prior to the 30th day when verification was
requested.

Example of Invalid Application Processing: On 6/2 the
household applies for SNAP benefits. On 6/10 the household is
interviewed and asked to provide verification of income by
6/20. The household does not provide the requested
verification. The 30th day following the date of application is
7/2, a Saturday. The EW denies the application on Friday, 7/1
for failure to provide verification. This action is invalid as the
agency failed to wait the entire 30 days following the date of
application before denying the application.
•

Denial of an application after the 30th day when not properly
pended.

•

Failure to take action on an application by the 30th day following
the date of the application, or the 60th day following the date of
the application (for those States with the option to pend for
requested verification rather than deny at the end of the original
30 day period). This results in withholding benefits to a
household through inaction rather than an actual action. When
the 30th (60th) day falls on a weekend or holiday, the action must
be taken on the next business day following the weekend or
holiday to be considered timely.
Example of Valid Application Processing: On 6/2 the
household applies for SNAP benefits. On 6/10 the household is
interviewed and asked to provide verification of income by
6/20. The household does not provide the requested
verification. The 30th day following the date of application is
7/2, a Saturday. Monday, 7/4 is a Federal holiday. The EW
denies the application on Tuesday, 7/5 for failure to provide
verification. A proper Denial Notice is sent. This action is
valid as the agency correctly waited until the first business
day the agency was open 30 days following the date of
application before denying the application.

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Example of an Invalid Application Processing: On 1/20 the
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household applies for SNAP benefits. On 4/27 the household is
*
sent a letter scheduling a certification interview on 5/5. The
*
letter is returned by the Post Office marked “Addressee
*
moved, no forwarding address”. On 5/10 the 1/ 20
*
application is denied, with the reason cited as the household’s
*
failure to attend a certification interview. This action is
*
invalid as the agency failed to process the application for SNAP
*
benefits within 30 days of the date of application.
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Example of Untimely Denial: Household applies on 3 / 4 for
*
SNAP Benefits. On 3 / 8, the EW sends a request for
*
verification letter stating the information must be received by
*
3 / 18. On 3 / 16, the EW takes action to deny the application
*
for failure to provide verification. This is an invalid denial
*
action since the full 10 days were not given for the household
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to provide the requested verification.
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Example of Untimely denial for NOMI: Household applies on
*
4 / 8 for SNAP Benefits. An interview is set for 4 / 10. The
*
household fails to show for the schedule interview. The EW
*
takes action on 4 / 15 to deny the application for failure to
*
appear for the scheduled interview. On 4 / 28, the EW sends
*
the NOMI letter to the household. This is an invalid denial
*
action since the NOMI was sent after the action to deny was
*
taken.
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* These procedures are to be assessed in Section 1350.2 (Step 2). If it has been
determined that any of these application processing requirements were not

* properly followed the action is invalid.
*
* 1350
CONDUCTING NEGATIVE ACTION REVIEWS. The negative

review consists of four successive steps. The progression from one step to the

* next is dependent on whether a decision of invalidity is made at a step. The
* four steps of the negative action review are:
*
*
• Step 1: Review the circumstances of the action and ensure the
*
action is Subject to Review; (See Section 1332)
*
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• Step 2: Review of action sampled to determine, if based upon
*
the known circumstances, the negative action should have been
*
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clearly explain what the action was and why it was taken. (See
Section 1350.2);

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Step 3: Collateral and/or household contact for purposes of
obtaining verification supporting the reason given for the
negative action (optional) (See Section 1350.3); and

*
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Step 4: Documentation and reporting of review findings (See
Section 1350.4).

1350.1 Step 1: Determine Subject to Review Status. Review the
circumstances of the action and determine if it is NSTR using Section 1332 as a
guide. If the action meets the circumstances to be NSTR then proceed to
1350.4 Step 4. If one of the NSTR reasons does not apply, the action is
subject to review and the reviewer should continue to 1350.2 Step 2.

1350.2 Step 2: Review of Action Sampled. The reviewer shall
evaluate the stated reason(s) for the negative action. Generally, the notice(s)
to the household will be the source of the information for the reason(s) for the
negative action. If the reviewer cannot find the notice, the reviewer shall
review the case file to determine if the reason(s) for the action can be found
and the method by which the action was provided to the household. During
this evaluation the reviewer examines all of the information available to
determine:
•

The reason for the negative action that was sampled;

•

Whether the household was appropriately notified of the reason(s)
for the negative action that was sampled;

•

Whether the action was procedurally appropriate for the
situation; and

•

Whether the validity of the action was adequately documented as
described in Section 1360.

In situations where there are multiple reasons for an action that are included
on a notice, all reasons must be accurate and must clearly describe the
situation so that the household is able to clearly understand why the negative
action has been taken. If there are reasons that have been indicated that are
not applicable or if any reason is not correct, the negative action will be
determined to be invalid.

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This determination shall take into account the additional application processing
requirements of the negative action review found in Section 1340 to determine
that the eligibility worker followed all of the appropriate procedural steps.
The basic review process is as follows:
•

If the action results in the determination of a valid decision and
correct notice, then the review is complete and the reviewer shall
skip to Step 4 and document the review findings as specified in
Section 1350.4.

•

If the action is inadequately documented, then the reviewer may
proceed directly to Step 3 (Section 1350.3) to obtain the
necessary verification.

•

If the reviewer opts not to perform Step 3, the reviewer shall
proceed to Step 4.

•

Once the reviewer has determined the validity or invalidity of the
action, the reviewer shall go to Step 4 and document the review
findings as specified in Section 1350.4.

Transitional Benefits. In States with transitional benefits, if the eligibility
worker failed to establish transitional benefits for a household that should have
been receiving transitional benefits, the action must be reviewed in
accordance with review procedures specified in this section. The reviewer
must determine if the household meets any of the following criteria that would
render the action ineligible to receive transitional benefits:
1. the household lost its TANF cash assistance because of a sanction;

*

2. the household was disqualified from SNAP;
3. the household is in a category of households designated by the
State as ineligible for transitional benefits; or

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4. the household returned to TANF.
If the reviewer verifies that the household should have received TBA, the
action shall be coded as invalid.

1350.3 Step 3: Collateral and/or Household Contact (Optional).
The reviewer may contact the household or a collateral contact if the eligibility
element(s) that caused the denial, termination, or suspension action to be
taken are insufficiently documented in the case record to confirm the validity
of the action. The reviewer shall not make a contact if the information
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regarding this element(s) is clear and accurate. If any information is obtained
that is not relevant to the item for which the contact was made, that
information shall not be considered in the review decision. The contact must
focus only on the element(s) that led to the negative action under review that
were inadequately addressed in the record. The reviewer is basing the
determination strictly on the element(s) of eligibility leading to the negative
action and the information regarding those element(s) which existed and were
available to the eligibility worker at that time.
The procedures in Sections 424.7, Obtaining Collateral Contacts, and 430,
Collateral Contacts, must be used in establishing collateral contacts. The
reviewer must use the most reliable collateral verification available (e.g.,
banks, payroll listings, etc.) and must thoroughly document and/or attach all
verification obtained.

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The telephone shall be the primary method of contacting the household or a
collateral contact for a negative action review. If a telephone contact is not
possible or is unsuccessful, the reviewer may send a letter. The reason for
using a letter must be documented on the FNS-245 and a copy of the letter
included. The letter must clearly address the element(s) in question. Absent
such documentation or if the letter addresses areas beyond the element(s) in
question, information obtained through the use of a letter shall not be allowed
in the error analysis.
•

If any information obtained by the reviewer differs from that given by
the household, the reviewer must resolve the differences. The manner
in which the conflicting information is resolved must include
recontacting the household about the specific information in question.
If the household cannot be reached, the reviewer must accept the
collateral verification as valid. The reviewer must document the
attempts to contact the household.

•

If the reviewer determines that the verification received is adequate
documentation to determine that the negative action was valid then it is
to be documented as specified in Step 4 (Section 1350.4).

•

If the household/collateral contact cannot be found, does not cooperate
and/or the reviewer is unable to obtain the verification necessary to
demonstrate that the negative action was valid then it is determined to
be an invalid negative and documented as specified in Step 4 (Section
1350.4).

*
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1350.4 Step 4: Documentation and Reporting of Review
Findings. The reviewer is to complete the FNS-245 and document the
reasons for denial, termination or suspension. A complete explanation of the
negative action taken, narrative or documentation to show the appropriateness
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of the action, and all supporting documentation must be attached. If a
household or collateral contact was made, the FNS-245 must indicate why and
identify who was contacted and the results of that contact.
When the action to deny, terminate or suspend an action is found to be invalid,
a variance exists in the action. The action is invalid if the reviewer cannot
confirm the validity of the eligibility worker's decision in the case record to
deny, terminate or suspend the action for the stated reason(s).
When a negative action is invalid, the State agency must respond and
document the QC file the appropriate action to be taken on the individual
action and/or corrective action required in State operations/policy. Such
action will depend on the reason the action is invalid. For instance, problems
with notices or timely processing would require different corrective action than
an incorrect evaluation of a household’s income or resources. The reviewer
must code and record all of the appropriate variance(s) and explain the review
findings for the error determination on the Form FNS-245.

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1350.5 Flowchart of Steps 1-4 of the Negative Review
Step 1
Determine Subject to Review
Status

NSTR

STR
Step 2
Review of Action Sampled

Valid—
All Reasons
are
Accurate/HH
Notified of
Correct
Reason/
Procedurally
Appropriate/
Adequate
Documentation

Invalid—
Invalid for
reason cited/
application
not
processed
appropriately

Invalid—
All Reasons not
Accurate/HH
Not Notified of
Correct
Reason/
Procedurally
Inappropriate/
Inadequate
Documentation

Inadequately
documented

Step 3 OPTIONAL
Collateral and/or
Household Contact

Step 4
Documentation
and Reporting of
Review Findings

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1360

ACCEPTABLE DOCUMENTATION. The case record may contain

documents or statements that the reviewer may use as verification if the
documentation is adequate and it applies to the appropriate time period.

*

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Examples of documents or statements that can be considered acceptable
documentation are copies of official documents or reports, information
on a signed application, electronic data, check stubs, receipts or full
recording by a person, including the eligibility worker, who has secured
information directly from public or other records.

•

Acceptable documentation must clearly demonstrate ineligibility. For
example, an action that has been denied for being over the gross income
limit based upon earnings, must have a complete explanation including
the earning figures (each week’s pay, etc.) used to calculate the
monthly earnings and showing the calculation/conversion.

•

Documentation must be relevant to the time period under review.
Outdated information (information from a time period that does not
affect the current application or reapplication under review) or
information that was not available at the time of the action is not
appropriate documentation.

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To determine whether the action and notice are valid, the reviewer must verify
the element(s) of eligibility pertaining to the action recorded and the notice,
depending on the circumstances of each action and the information included in
the case record. Documentation in the case record must be sufficient to
support the reviewer's decision on the status of the action.
The first source of documentation in a negative case record may be a written
statement made by the participant. Statements made by participants that are
documented in the case record need not be verified. For example, if a
household has been found ineligible because of its resources and the
household’s application reports resources that exceed the amount allowed, the
reviewer need not verify the statement with the household.
The reviewer need only verify information used to determine the validity of the
decision to deny, terminate, or suspend the household and address the
adequacy of the notice provided to the household.

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Examples of Acceptable Documentation for Negatives
Code

Recorded Reason
for the Action

01

Resident of an institution
not authorized by FNS

02
03

Outside of project area or
State
Ineligible striker

04

Ineligible non-citizen

05

Ineligible student

06

Ineligible boarder

07

Missed scheduled
interview(s)

08

Failed to provide
verification

09
10

Refusal to cooperate
Refusal to supply SSN

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Example of Acceptable
Documentation
Collateral contact with an official at
the institution, contact with the State
Agency to confirm that the institution
is not authorized by FNS
Household’s statement, copy of
notification from other State Agency
Household’s statement, collateral
contact with employer or other
individuals knowledgeable of the
strike
Household’s statement or
documentation from other Federal
agencies
Documentation of student status,
work hours, TANF, absence of
documentation of an exemption
Household’s description of boarder
status
Copy of the eligibility worker’s letter
to the household scheduling the
interview and any notices sent to the
household by the eligibility worker
Copy of the eligibility worker’s letter
to the household listing the type of
SNAP related information needed and
requesting that the information be
provided, documentation of the
absence of the requested information
Eligibility worker’s notes about the
refusal, household’s statement, letter
indicating refusal
Eligibility worker’s notes about the
refusal, household’s statement, letter
indicating refusal

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Code

Recorded Reason
for the Action

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
Voluntary quit

16

17

Failure to submit/complete
required report

18

Voluntary withdrawal after
certification

19

Termination/denial due to
TANF termination/denial

20

Intentional program
violation
Termination/denial due to
Program disqualification

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Example of Acceptable
Documentation
Information about how gross income
was calculated, pay amounts and
frequency of pay, comparison of the
household’s gross income to the gross
income limit, the household’s size
Information about how net income
was calculated, pay amounts and
frequency of pay, comparison of the
household’s net income to the net
income limit, the household’s size
Household’s statement about the type
of resource and value of the resource,
collateral contact or source
knowledgeable about to the value of
the resource
Household’s statement/collateral
contact about the type of resource,
value of the resource, and date of the
transfer
State work registration workers
documentation of the Household’s
failure and lack of documentation of
any exemptions
Household’s statement or
documentation of the household’s
statement and lack of documentation
of any exemptions
Eligibility worker’s documentation of
non-receipt of the required report
and absence of the report
Household’s statement or
documentation of the household’s
statement
Absence of documentation indicating
that the change would have been
processed as a change in lieu of a
termination
Document that the IPV was
determined.
Disqualification letter or record of
the disqualification
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Code
22

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Recorded Reason
for the Action

Example of Acceptable
Documentation

Termination/denial of
household of able-bodied
adult(s) whose time-limited
period of SNAP eligibility
has expired
Failure to comply, without
good cause, with SNAP work
requirements

Participation history or a description
of how the eligibility worker
determined that the household’s time
limit had expired

24

Eligible for zero benefits

25

Failure to access EBT
benefits
Loss of contact with
household

26
27
28
29

30

99

Applicant/household
deceased
Not eligible for separate
household status
Not eligible due to status as
fleeing felon, parole
violation, drug conviction
etc.
Reason for
denial/termination
/suspension not
documented
Other

State work registration workers
documentation of the household’s
failure and absence of participation
records for workfare, E&T, etc.
Describe household’s eligibility and
how benefits were calculated, attach
supporting documents
Benefit history which indicates that
the benefits were not accessed
Documentation of efforts made to
contact the household and lack of any
evidence of contact
Record indicating the death of
applicant/household
Documentation of household’s
circumstances that require combined
household composition with others
Documentation of status that caused
ineligibility
Documentation of all available
evidence why the negative action
may have been taken
Documentation of circumstances of
the negative action

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1370 Transmission of Negative Case Findings to FNS, Data
Checking, and Changing Case Findings. Once the error determination
process is completed and the review decision has been made, the case findings
shall be transmitted to FNS. The State agency shall have 10 days from the date of
transmission to check the validity of the data transmitted. The State agency may
change data submitted during this 10-day period. Following that 10 days FNS shall
select its subsample from the cases transmitted. Once a case has been subjected
to Federal subsampling, the protected field findings for that case may not be
changed whether or not the case was selected for Federal re-review.

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CHAPTER 14
INFORMAL RESOLUTION AND ARBITRATION
1400

INFORMAL RESOLUTION AND ARBITRATION.

1410

INFORMAL RESOLUTION. Informal resolution is a process that

provides an avenue for States to challenge what they believe to be incorrect
Federal findings. This is not a process of negotiation or compromise between
the Federal and State agencies.
Informal resolution may begin after FNS signs the official regional findings
letter. This may be prior to the State’s receipt of the findings letter. States
can accomplish such a challenge through phone calls, data faxes, etc. In any
case, when contacted by the State, the FNS regional office should make every
effort to explore the State's contention as quickly as possible.
Informal resolution must end on the earlier of:
•

The date the arbitrator receives the State’s request for
arbitration, or

•

The State’s deadline for requesting arbitration for that review.

If, through informal resolution, the State agency and FNS regional office agree
to a modified Federal finding prior to the 20-day deadline for requesting
arbitration of the original finding, the new finding must be transmitted to the
State agency. In such circumstances the State agency retains the right to
request arbitration of the new Federal finding, if they are in disagreement with
the new finding.
Informal resolution can be continued up to the regulatory time limit for
requesting arbitration. However, the onset or continuance of informal
resolution does not postpone the 20-day time limit for requesting arbitration.
Informal resolution may continue until the disagreement is resolved or until
arbitration is requested or until the 20-day limit for requesting arbitration
expires, whichever is earlier.

1420

ARBITRATION. The purpose of the arbitration process is to resolve

disagreements between the State agency and the FNS regional office
concerning individual QC case findings and the appropriateness of actions taken

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to dispose of an individual case. The following are circumstances that are
subject to arbitration:
•

Disagree cases (where the Federal findings disagreed with the
State agency’s findings).

•

Cases where the FNS regional office disagreed with the State
agency’s disposition of the cases, including disputes over whether
a case is subject to review or incomplete.

•

Cases where the application of policy in a particular QC case
impacts the difference in a disposition/finding.

Established policy, and comments on or coding of procedural deficiencies that
do not impact the findings/disposition are not subject to arbitration.
Agree cases are not subject to arbitration. These cases can be discussed
through the informal resolution process. If, as a result of informal resolution,
the state and the FNS regional office decide the previously issued agree
findings no longer apply (e.g., because the State found new information about
the case), the regional office will issue a new letter disagreeing with the
State’s original findings. This disagree case is subject to arbitration.
Arbitration is a one-tier process. The State agency appeals to the FSP Quality
Control Arbitrator if the State agency does not agree with the regional office
findings.
Arbitration is limited to an examination of specific issues supporting the
findings or disposition being challenged. However, the arbitrator cannot ignore
any mathematical errors on the computation sheet that are discovered during
the review of the case. The impact of the mathematical errors must be
included in the final benefit calculation.

1421

Documentation. It is the responsibility of the State agency to

include all the necessary documentation to support its position when it submits
a case for arbitration. Failure to include a single important piece of
information could result in an adverse decision. The documentation may
include, but is not necessarily limited to:
•

A copy of the FNS-380, FNS-380-1, attachments to the FNS-380,
the region's finding, and subsequent correspondence from the
FNS regional office related to the finding;

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•

Options selected such as budgeting TANF prospectively in a
retrospectively budgeted system;

•

The existence and provisions of all waivers applicable to the case
circumstances, including the approval, implementation dates,
and expiration dates;

•

Applicable State policies including implementation dates, e.g.,
pages of the State manual indicating the conversion method
selected, applicable standard utility allowance(s);

•

Written policy interpretations provided by FNS and the date
provided to the State agency;

•

A clear record of all actions taken by the reviewer to try to
complete a case, e.g., documentation showing the reviewer
checked for personal property, that the household was contacted
to clarify any disputed information;

•

Appropriate verification and adequate documentation of every
aspect of the household’s circumstances; and

•

Legible copies of all case record material (a half cut-off copy of a
court record on child support payments that is not identifiable
cannot be considered by the arbitrator).

If the arbitrator needs additional information, it is the arbitrator's prerogative
to request the needed information from whichever party the information is
needed. In the decision to the State agency, the arbitrator will explain the
rationale for the decision, addressing each particular issue that was involved in
the decision.

1422
Usual Timeframe for
Requesting Arbitration. Each
time the Federal reviewer reports a
disposition/finding in a case to the
State agency that disagrees with
the State’s original
finding/disposition, the State
agency has a right to request
arbitration.

Example of the First Day of the 20Day Period: The State agency receives
the findings letter on June 8, then June
9 is the first day of the 20-day period.
The postmark on the State agency's
request will be used to determine
whether a request was submitted
timely.

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A State agency must request arbitration within 20 calendar days of receipt of
the regional findings letter. The first day of the 20-day period begins with the
day after the day the State agency receives the findings.
It may happen that a State agency
timely disposes of a review as
incomplete or not subject to review,
and later completes the review. In
such a situation, the State agency
has the full 20-day period to request
arbitration.

Example of a request that is too late
for arbitration: The regional findings
were issued to the State agency on
March 4 and received by the State
agency on March 8. The case is a
disagree case. The State agency's
request for arbitration is postmarked
April 11. This case is not subject to
arbitration as it was submitted late.

Example of a request that is timely:
The regional findings were issued to the
State agency on February 27 and
received by the State agency on March
1. The case is a disagree case. On
March 15, (postmark) the State agency
requested arbitration. This case is
subject to arbitration.

Example of a request that is timely
because FNS issued a new finding
letter: The regional findings were
received by the State agency on March
1. The FNS regional office agreed with
the State agency findings. On April 5 the
State agency requested arbitration based
on new information disputing its initial
findings. The regional office had issued
a new letter on March 20 disagreeing
with the State’s original findings. This
case is subject to arbitration.

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1423
Unusual Timeframe
for Requesting Arbitration. A
State agency is supposed dispose of
each review no later than the 95th day
after the end of the sample month.
For every day that disposition is late,
the State agency loses a day to
request arbitration.

Example of how the usual timeframe
is reduced: The review’s sample
month was April. The deadline for
disposing the review was August 3rd.
The State agency disposed of the
review on August 5th. The State agency
received the federal finding on October
6th. The usual deadline for requesting
arbitration would be October 26th. But
because the disposition was two days
late, the deadline for requesting
arbitration would be October 24th.

Example of a late request because of a
late disposition: The State agency was
ten days late in disposing the review.
The State agency received the finding
letter on November 7th. The State
agency requested arbitration on
November 19th. The case is not subject
to arbitration because it was submitted
late.

1430

FOOD STAMP PROGRAM QUALITY CONTROL ARBITRATION.

1431

General. Food Stamp Program quality control arbitration is the

final level in the process of resolving differences in the disposition and findings
of cases within the program. As such, when the arbitrator makes a
determination, that decision is final. Because of the finality of arbitration, it is
very important that the case record be complete when the case is submitted to
the arbitrator.

1432

Quality Control Arbitrator. This individual must not be a QC

reviewer, oversee QC reviewers, or in any way be directly involved in the
validation effort.

1433

Quality Control Arbitration Procedures. The State agency
will have 20 days from the date of the receipt of the regional findings letter to
request arbitration of a disagree case. If the last day of the period falls on a

7-28-09 (Change 1)

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Saturday, Sunday, or Federal or State holiday, the 20-day time frame runs to
the end of the next work day. Requests for arbitration must be sent directly to
the quality control arbitrator:
Nancy Baca-Stepan
SNAP Quality Control Arbitrator
USDA- Food and Nutrition Service
Supplemental Nutrition Assistance Program
Robert A. Young Federal Building
1222 Spruce Street, Room 1.304
St. Louis, MO 63103
The State agency will notify the appropriate FNS regional office when
arbitration is being requested. The arbitration request should include all
appropriate documentation as specified in section 1421 of this chapter.
However, additional information may be submitted after the request, provided
it is submitted within the 20-day time frame.
The arbitrator may request additional information from the State agency
whenever necessary. The arbitrator will notify the State agency of the
decision, explaining the rationale for the decision.

1440

HANDLING CASE FINDINGS. In determining State agency error

rates, the FNS regional office will use the results of its review unless the
arbitrator decides in favor of the State agency or an alternate finding. Once
the arbitrator's decision has been made, the FNS regional office will make any
changes necessary to the State and/or regional disposition or findings.

7-28-09 (Change 1)

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*
*
*
*
*
*

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APPENDIX A
RESERVED

10-01-11 (Change 2)

A-1

* 

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APPENDIX B

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B-3

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B-4

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B-5

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INSTRUCTIONS FOR COMPLETING FORM FNS-380,
THE WORKSHEET FOR FOOD STAMP PROGRAM
QUALITY CONTROL REVIEWS
GENERAL
The standard worksheet appears in this Handbook in Appendix B. The automated
worksheet may be downloaded from the USDA Food Stamp Quality Control homepage
at the following address: http://www.fns.usda.gov/fsp/qc/default.htm. The users
manual for the automated worksheet follows the FNS 380 form and the instructions
for filling in the form.
Some States have designed their own worksheet for Food Stamps Quality Control (QC)
reviews. These States must submit for approval their designed worksheets to the FNS
regional office (RO). The worksheet will be reviewed and States will then be notified
of the decision.

FACESHEET – PAGE 1 (FNS-380)
This is page one of the Worksheet for Food Stamp Quality Control reviews. There are
four sections:
•
•
•
•

Section A, is for identifying information and tracking information about
the QC review.
Section B, lists persons living in the home.
Section C, lists significant persons not living in the home.
Section D, is a summary of the review findings.

SECTION A – IDENTIFYING INFORMATION
1. Agency - Enter name of local agency.
2. Case Name - Enter the name of the recipient by which the case is identified.
3. Address - Enter the complete address at which the recipient resides.
4. Telephone Number - Enter the telephone number at which the recipient can
be reached.

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5. Directions to Locate - Enter the directions to the address where the recipient
resides. (This is particularly significant where the mailing address is a post office
box number or rural route number.)

6. Case Number - Enter the number assigned by the local agency to identify the
household that was certified.

7. Review Number - Enter the number assigned to the Quality Control Review.
8. Review Date/Month - Enter month, day, and year for which case eligibility
and benefit level were reviewed.

9. Reserved - Leave blank.
10. Most Recent Action: Date and Type - Enter the effective date (month,
day, and year) of the most recent certification or recertification action prior to
or concurrent with the review date. This date cannot be prior to the start of the
most recent certification period.
•

A certification means the first time a case has been certified or a
certification action following a break in participation.

•

A recertification means the initial certification period has expired and the
agency has (a) completed a reexamination of all factors of eligibility subject
to change following a period of time during which the recipient has been
determined eligible and (b) made a decision to continue eligibility.

11. Certification Period - Enter the period for which the case was certified.
12. Participated During Sample Month - Check (√) the appropriate box to
indicate if the household participated during the sample month.

13. Received Expedited Service - Check (√) the appropriate box to indicate if
the household was certified using expedited service procedures.

14. Categorically Eligible Household - Check (√) the appropriate box to
indicate whether the household was categorically eligible.

15. Reviewer - Enter the name of the QC reviewer conducting the review and/or
the reviewer’s identification number.

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16. Date Assigned - Enter the month, day and year the sample case was received
by the QC reviewer.

17. Date of Case Readings - Enter the month, day and year the QC reviewer
read the local office record of the recipient.

18. Date of Personal Interview - Enter the month, day and year a personal
interview was held with the recipient.

19. Date Completed - Enter the month, day and year the Quality Control review
was completed.

20. Supervisor - Enter the name of the QC reviewer’s supervisor(s).
21. Date Cleared - Enter the month, day and year the review was cleared by the
supervisor for statistical processing.

SECTION B – PERSONS LIVING IN THE HOME
Name - Enter the names of all persons living in the household. These would include
the recipient, and both related and unrelated persons, including roomers and
boarders. The first person listed should be the head of the household.
If additional space is needed, use the reverse side of the facesheet. For additional
space on the automated worksheet, press enter on the button labeled “Click for more
HH members”.

Birth Date - Enter the birth dates of all persons listed as members of the food stamp
household.

Age - Enter the age of all persons listed as members of the food stamp household.
Relationship or Significance - Enter letters to show the relationship of the
household members to the head of the household such as:
•
•
•
•
•
•

SP - spouse
S - son
D - daughter
GS - grandson
N - niece
FR - friend, etc.

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Note: If the person is not included in the food stamp household under review but is a
food stamp recipient indicate the case number under which he/she is receiving food
stamps.

Social Security - Enter the social security number of each household member.
Enter “unknown” if the number cannot be determined from the case record or field
investigation. Enter “none” if it is known that the household member never had a
social security number.

Recipient - Indicate whether the agency included this person in the sampled
household.

SECTION C – SIGNIFICANT PERSONS NOT LIVING IN THE HOME
Name - Enter the names of all persons, including responsible relatives not residing in
the household, living or dead, who are of significance to the members of the food
stamp household. This includes all absent parents (and alleged parents) of children in
the household whether or not they are known to contribute to the person’s support.
If the identity of the absent parent of a member of the household listed in Section B is
unknown write “father/mother unknown” in this column and indicate the line number
of the member in Section B.

Relationship or Significance - Enter the relationship of each person to the
member of the household listed in Section B, and identify by line number, the
individual to whom the relationship pertains.

Social Security Number - Enter the social security number (SSN), if known, of
persons listed in this section.
•

Enter “unknown” if the number cannot be determined from the case record or
field investigation.

•

Enter “none” if it is known that the person never had a SSN.

Address - Enter the address of each person listed. If the address cannot be
determined either from the case record or from the field investigation enter
“unknown”.

Phone Number - Enter the telephone number of each person listed.

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Financial Support - Check (√) this box for any person who provided financial
support to a member of the food stamp household during the budget or review month.

SECTION D - REVIEW FINDINGS
This section provides a brief summary of the review findings. Enter the allotment
amount authorized for the review month. (See section 232.) Check (√) the box that
corresponds to the findings of the review of the case. If an error exists, enter the
amount of the error.

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WORKSHEET NARRATIVE- PAGES 2 THROUGH 14 (FNS-380)
GENERAL INSTRUCTIONS
Use the remaining portion of the worksheet to document each step of the
independent full-field investigation and to evaluate each step in determining
eligibility and appropriate benefit level. Record the facts sufficiently to establish the
basis on which the decision was made on each element.

COLUMN 1, ELEMENTS OF ELIGIBILITY AND BASIS OF ISSUANCE
Listed are a number of elements associated with eligibility and benefit level.
Definitions of these elements and verification requirements are found in Chapters 8
through 11. States may add, under each area, any additional State eligibility
requirements not included herein.

COLUMN 2, QC ANALYSIS OF CASE RECORD
Use this column to record documentation contained in the case record and to assist in
planning for the field investigation. Enter details of recorded information that need
not be reverified in this column. Note any pertinent facts; also record whether
anything is questionable about the information. Identify questions that pertain to
some but not all persons in the family. Indicate any of the following: conflicts in
information recorded, factors subject to change, reliability of information recorded,
reliability of source used, and missing information.
Use this column selectively to highlight other points to be considered when conducting
the field investigation or to remind you of the case situation.

COLUMN 3, FINDINGS OF FIELD INVESTIGATION
Record the results of the field investigation. Information in this column provides the
basis for completing the review findings and detailed error finding portions of the QC
Review Schedule. The QC review is a review of the validity of the case at a given
point in time in accordance with the provisions of Federal law, regulations, and
implementing memoranda. Therefore, the entries in this column will relate to the
facts of the situation affecting eligibility as of the review date even though the
specific findings may or may not constitute a case error.
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Answer any questions raised in Column 2 in this section. Entries such as “correct”,
“verified”, and “OK” do not constitute adequate information. Document the specific
sources used as verification or any attempts to verify the element for all applicable
elements of eligibility and basis of issuance. Information must be provided in
sufficient detail for anyone reviewing the case at a later time to clearly understand
the conclusions on each element and the final conclusions on the case.
Where there are eligibility or basis of issuance variances based on circumstances as of
the review date, record the date the variances first occurred.

COLUMN 4, RESULTS
Complete each element by circling one of the following to indicate the final decision:
1 = No error
2 = Agency error
3 = Client error
An agency error is defined as the failure of the agency to discharge its responsibilities
in a proper and timely manner.
A client error is defined as the failure of the recipient, guardian, or authorized
representative to provide correct information or to otherwise discharge his/her
responsibility in a proper and timely manner.
Where both the agency and the client are responsible for the same error in an
element the agency error takes precedence on the basis that the client’s failure
would have been negated, and no discrepancy would have existed had the agency
acted proper.

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COMPUTATION SHEETS – PAGES 15 THROUGH 17 (FNS-380)
General Instructions
The computation sheets are to be used to document all completed active case
reviews. The only exceptions are reviews of households that were ineligible for
reasons other than income. Columns (1) and (2) are required to be completed,
Columns (3), (4) and (5) are optional. Regardless of the use of Columns (3), (4), and
(5), Columns (1) and (2) must be used as outlined below.

COLUMN 1, ELIGIBILITY WORKER
Column (1), record the figures that the eligibility worker used to compute the
allotment for the sample month.

COLUMN 2, FINAL SAQC DETERMINATION
Column (2), record the final quality control determination figures based on the results
of the review.
Note: If the household was ineligible because of gross or net income the reviewer may
stop at the appropriate income line.

COLUMNS 3, 4, 5
Columns (3), (4), and (5) of the computation sheets are optional. They are included
for the convenience of States and may be used for recording:
•
•
•
•
•

Comparison I
Comparison II
Illustrating the impacts of individual variances
Reflecting a retrospectively budgeted household’s prospective eligibility
Any other State identified purpose

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FOOD STAMP QUALITY CONTROL
AUTOMATED FNS-380

User’s Manual

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Table of
Contents

Introduction……..…………………………………………………………………….3
Data Entry.………………………………………………………………………………4
1. Entering New Reviews ……………………………………………………………….4
2. Viewing or Changing Previously Entered Reviews…………………….13
3. Ending a Work Session.………………………………………………………………13
Main Menu Utilities….………………………………………………………………14
1. Computation Sheets ……………………………………………………………………………14
2. Worksheet Completion Status…………………………………………………………….15
3. Preview Menu ………………………………………………………………………………………16
4. Print Menu ……………………………………………………………………………………………17
5. Delete Selected Review …………………………………………………………………….18
6. Import/Export Utility……………………………………………………………………………19
7. Save Entire Worksheet to a File …………………………………………………………21
8. Appendix A ………………………………………………………………………………………….22

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INTRODUCTION

The FOOD STAMP QUALITY CONTROL ELECTRONIC WORKSHEET (FNS-380)
consists of one database that contains single or multiple reviews for a specific
period (ex: fiscal year 2001). It was developed using Microsoft Access 2000.
It allows users to:
Enter a new review
View previously entered reviews
Delete an entire review
Change a previously entered review
Import from/export to an ASCII file
Save entire worksheet to a file
Print any page from the worksheet
To enter reviews for another period (ex: fiscal year 2002), the user needs to
rename FNS-380 (ex: rename FNS-380 to FNS-380_2001 then download a
new version from the USDA Food Stamps Quality Control homepage to use it
for the new period. The address for this homepage is as follows:
http://www.fns.usda.gov/fsp/qc/default.htm.
To facilitate data entry, the system presents a full-screen data entry
format; screen layouts resemble the pages of the Worksheet for Food
Stamp Quality Control review.

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DATA ENTRY
1.

ENTERING NEW REVIEWS
STEP 1:

You must choose a review number before entering any review information.
To enter a new review number, click on the box next to “CHOOSE A
REVIEW NUMBER OR TYPE A NEW ONE”; then enter a new review number.

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STEP 2:
To select a page from the electronic worksheet, go to the box to the right
of CHOOSE AN ELECTRONIC WORK SHEET PAGE TO GO TO; click on the
down arrow next to the box; and then choose a page from the drop down
list.

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The selected page of the Food Stamp Electronic Worksheet appears.

OR
To go to an Element of the electronic worksheet, click on the arrow next
to the box beside CHOOSE AN ELEMENT TO GO TO: and then select an
element from the drop down list. Or, you may type an element number
(the system will automatically finish entering that element name in the
block) and then click the box.

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The selected page of the Food Stamp Electronic Worksheet appears.

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To select a Review Schedule page, go to the box next to CHOOSE A
REVIEW SCHEDULE PAGE TO GO TO; click on the down arrow for the box
and choose a page from the drop down list.

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The selected page of the Review Schedule appears.

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STEP 3:
To enter review data, simply begin typing.
Some items to remember while entering data:
Press enter or Tab to skip over a field.
Use the right and left cursor movement keys to move from position to
position within a field.
Amount fields are centered.
Hit F1 on any field to get help on that field.
A description of a field and/or the allowable range of characters that can
be entered appears in the task bar on the bottom of the screen.
If you are done entering data to the current page, check the box on the
upper left corner to mark the page as completed.
The usual keyboard controls in a Windows environment are used in this
program. Refer to Attachment A for more guidance on keyboard controls.
In addition, for this application, filling, or moving past, the last field on a
screen automatically opens the next data entry screen. Many fields have
range-checking or data validation, and will not allow invalid data to be
entered. You may either blank out the field or use the escape key to allow
you to continue.
These instructions above apply to using the cursor on all data entry
screens.
The Selection Menu appears at the top of the page selected.
This menu allows the user to:
Move to the Next Page
Go back to the Previous Page
Print the page
Preview the page
Choose an Element to go to from the list box
Return to the Main Menu

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STEP 4:
To enter review data appearing on the next page of the Electronic
Worksheet, select Next Page at the top of the screen.
The next page of the Electronic Worksheet appears.
There are several things to remember when entering data to this screen:
When the next page is displayed, the cursor is in the first position of the
first field.
Press Tab to move to the next field or to skip over a field.
Press Shift + Tab to move to the previous field.
To change data already entered to a field, move to the first position of
the field, delete incorrect data and retype correct data.
To remove all data appearing in the field press CtrL+Del keys.
The data on the field is saved automatically when user advances to the
next field.

STEP 5:
Continue entering data in the same manner on any selected page of the
Electronic Worksheet.

STEP 6:
When data entry is complete, to add another review, return to the Main
Menu and click on the Review Number list box to type a new review
number, or click on the down arrow to select one from the list box.
If there are no more reviews to enter, click Exit Food Stamp Quality
Control System to close the program.

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2.

FNS HANDBOOK 310

VIEWING OR CHANGING PREVIOUSLY ENTERED
REVIEWS
STEP 1:

At the main menu select a review number from the list box.

STEP 2:
Select either an Electronic Worksheet page, an element or a Review
Schedule page to go to.

The selected page of the Food Stamp Electronic Worksheet for that particular review number
will appear. Edit data on the Face Sheet page, pages 2-14 of the Food Stamp Electronic
Worksheet, or the Review Schedule pages.

STEP3:
To view any additional reviews, click on Main Menu at the top of the
screen and select another review number.

3.

ENDING A WORK SESSION

To end the work session at any time, return to the Main Menu and click on
Exit Food Stamp Quality Control System to close the application and
exit the program. Data is automatically saved.

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MAIN MENU UTILITIES
(1)

Computation Sheets

Use the pull down box to select a review number, then click on
Computation Sheets. Page 1 of the Food Stamp Program Quality Control
Computation Sheet appears. Enter data or edit data as you need or do
calculations manually. If you are using the automated version, calculations
will be done automatically.

A selection menu is at the top and bottom of the page. It allows the user to
go to page 2, self-employment page, print and preview the current page.
Use the scroll bar to view the rest of the page. When finished, click on the
close button to go back to the main menu.

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(2)

FNS HANDBOOK 310

Worksheet Completion Status

This utility allows the user to check his work progress. It lists the Electronic
Worksheet pages (Face Sheet page and pages 2-14) with a checkbox next
to each page. If the checkbox is checked, it means that the corresponding
page is completed for the selected review number.

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(3)

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Preview Menu

This utility has three sections:
Choose to preview the face Sheet page or any page from pages 2-14
from the Preview Worksheet Pages section.
Choose to preview the computation sheets from the Preview
Computation Sheets section.
Choose to preview the review schedule pages 1-3 from the Preview
Review Schedule Pages section.
At the bottom of the page, there are three command buttons:
Click on Main Menu button to go to the main menu.
Click on Print Menu to go to the Print Menu page.
Click on Exit Access to quit the application.

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(4)

FNS HANDBOOK 310

Print Menu

This utility has three sections:
Choose to print the face Sheet page or any page from pages 2-14 from
the Print Worksheet Pages section.
Choose to print the computation sheets from the Print Computation
Sheets section.
Choose to print the review schedule pages 1-3 from the Print Review
Schedule Pages section.
At the bottom of the page, there are three command buttons:
Click on Main Menu button to go to the main menu.
Click on Preview Menu to go to the preview menu page.
Click on Exit Access to quit the application.

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(5)

FNS HANDBOOK 310

Delete Selected review

Once a review is deleted from the Food Stamp Electronic Worksheet
Program, it cannot be recovered.
To delete a review, at the Main Menu, select a review number from the list
box, then press the Delete Selected Review button. A confirmation box
appears that states the review number to be deleted. Click Yes to delete
that review.

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(6)

FNS HANDBOOK 310

Import/Export Utility

This utility allows the user to import cases from another database or export
cases from this database to a text file (80 x 24).

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Step 1:
To import, choose Import cases from another database option.
To export, choose Export cases to an ASCII file option.

Step 2:
Under File Name to Import from/Export to, enter the name of the file to
import from/export to in the text box provided. Specify the path and the
extension of the file.

Step 3:
To import/export all cases, select All Cases option.
To import/export a range of cases, select Range of Cases option.
When this option is selected, Starting Review Number and Ending Review
Number text boxes are enabled. Enter the review numbers then click OK.
To import/export more than one range, click on Add More and enter the
additional ranges then click OK. A window appears that confirms the
import/export process and tells how many cases were imported/exported.
Click OK to return to the Main Menu.

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FNS HANDBOOK 310

Save Entire Worksheet to a File

This option allows the user to save the entire Electronic Worksheet
Program to an executable file.
Click on Save Entire Worksheet to a File utility, A Save As Dialog Box
appears. Type a name for your file in the File Name text box. The file name
cannot be more than eight characters. Click on Save. The review will be
saved as a snapshot of the Face Sheet, pages 2-14 and Computation
Sheets of the selected review number. The snapshot of all the pages will be
saved in an executable file that can be emailed to a supervisor or
colleagues. To view the case, double-click on this executable file to extract
all the pages.
Note: To be able to view these pages, Snapshot Viewer program must be
installed on the computer. When viewing for the first time, the system will
check to see if Snapshot Viewer program is installed. If it is not installed, it
will ask to insert the Microsoft Office 2000 CD to install it.

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APPENDIX A

Keyboard Controls for the worksheet are the usual keyboard controls for
the Windows environment, as follows:

Cursor control keys in the data entry / edit
subsystem
/
Complete an entry, or move to the next
field without entering.
Move one position right in the current
field. Will move to the next field if
current field is highlighted.
Move one position left in the current
field. Will move to the previous field if
current field is highlighted.
(down arrow) Goes 1 line down; will go
to the next field if current field is
highlighted.
(up arrow) Goes 1 line up; will go to the
previous field if current field is
highlighted.
[Ctrl+Del]
field.

Delete all characters from the current
Undo all changes to current field.
Delete a character at cursor position.
Inserts blank space at cursor position.
Delete character before cursor.

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APPENDIX C

C-1

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C-4

FNS HANDBOOK 310

INSTRUCTIONS FOR COMPLETING FORM FNS 380-1,
QUALITY CONTROL REVIEW SCHEDULE
GENERAL INFORMATION
The Quality Control Review Schedule (QCRS) is the data entry form to record the
results of Food Stamp Quality Control reviews.
The schedule consists of seven sections:
1 - Review Summary
2 - Detailed Error Findings
3 - Household Characteristics
4 - Information on Each Household Member
5 - Income Identified by Household Member
6 - Reserved Coding
7 - Optional - For State Use
All entries in the QCRS are dollar amounts, dates, or numeric codes.

Dates - Use six or eight-digit numbers as the entry requires. For example,
October 3, 2003 would be coded:

1 0 0 3 2 0 0 3

The October sample month would be coded:

1

0 2 0 0 3

Dollar Amounts - Round all dollar amounts to the nearest dollar; leading zeros are
not required. For example, $165.00 is entered:

1

6 5

Not Applicable – If an item does not apply to the case reviewed, leave the applicable
boxes blank:

Unknown - If an item is known to exist but the specific amount is not known, fill in
all boxes for that item with 9’s:

9 9

9 9

If no information is available or if the item does not apply to the household, leave the
boxes blank. Do not enter zeros to indicate no information.

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Stratum - States with stratified samples should submit to the FNS regional office a
listing of the numeric codes utilized to identify stratum. Stratum codes are assigned
by the State agency when the sample is stratified. If stratum codes are not used,
leave blank or enter other identifying information at State option.

Local Agency Code – This code is used to group data by county or county
equivalent or smaller areas. The system requires a three-digit code.
The State may use Federal Information Processing Standards (FIPS) codes or use an
alternative method to designate local agency. Once a State has selected a method,
submit to the FNS regional office a listing of the local agencies and corresponding
codes.
FIPS Codes – The National Institute of Standards and Technology has developed
codes for classification of counties and county equivalents. These codes were
devised by listing counties alphabetically and assigning sequentially odd integers;
e.g., 001, 003, 005.

QUALITY CONTROL REVIEW SCHEDULE
SECTION 1 - REVIEW SUMMARY
This section records the final determination of the QC review. It is used to compute
the States payment error rate.

1. QC Review Number - Enter the number assigned to the Quality Control
review.

2. Case Number - Enter the number assigned by the local agency to the household
that was certified and has been reviewed.

3. State code - Enter the two digit State code from the following list of codes of
National Institute of Standards and Technology.

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State Codes - National Institute of Standards and Technology
State

Code

State

Code

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Guam
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri

01
02
04
05
06
08
09
10
11
12
13
66
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29

Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virgin Islands
Virginia
Washington
West Virginia
Wisconsin
Wyoming

30
31
32
33
34
35
36
37
38
39
40
41
42
44
45
46
47
48
49
50
78
51
53
54
55
56

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4.

Local Agency Code – Enter the three-digit code designating the local agency
for this case.

5.

Sample Month and Year - Enter the month and year for which the case
eligibility and benefit level were reviewed.

6.

Stratum - Enter the two-digit stratum codes if sampling is stratified. If not
stratified enter a State optional code or leave blank.

7.

Disposition - Enter one of the following codes:
1 - Complete
2 - Not subject to review
3 - Incomplete
4 - Case deselected
If codes 2, 3, or 4 are used, no further entries are required on the remainder of
the review schedule except item 68, reserved code for Timeliness of
Application Processing (Expedited and 30 Day Requirement).

8.

Review Findings - Enter one of the following codes:
1 - Amount correct
2 – Overissuance
3 - Underissuance
4 – Ineligible
Enter actual finding regardless of whether it is below the error threshold. Do
not complete sections 4 and 5 if code 4, ineligible, is used.

*
*

9.

FS Allotment Under Review - Enter the authorized amount of food stamps
subject to review for the sample month.

10.
*
*

*
*

Error Amount - Enter the dollar amount of any identified error. The dollar
amount of the error is the difference between the benefits the State
authorized and the benefits the State should have authorized regardless of the
error threshold. Use the lower error amount from comparison one or
comparison two.
•

For overissuance or underissuance errors, enter the actual error amount
whether or not it exceeds $50.00.

•

For ineligible errors, enter the full amount of the error.

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11.

Case Classification - Enter one of the following codes:
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 SNAP).

SECTION 2 – DETAILED ERROR FINDINGS
This section provides for the detailed coding of each variance identified during the QC
review. If additional lines are needed to code error findings, attach an additional
page. Since the information recorded in this section is the basis for corrective
actions, the accuracy of the information is important. If more than one variance is
identified, the variance that the agency believes is most significant in leading to the
error should be listed first.

12.

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

13.

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 12
and 13.
These nature codes may be used in any element:
Nature code (97) – Not required to be reported or acted upon based on
timeframes and reporting requirements for allotment differences below the
$50 threshold.
Nature code (98) - Transcription or computation errors.
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.

01-13-12 (Change 3)

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

¾ Element 130 – Citizenship and Non-Citizen Status
Nature codes:
Citizens
6 - Eligible person(s) excluded
7 - Ineligible person(s) included
124 - Variance resulting from use of automatic Federal information exchange
system
Non-Citizens
200 – Eligible non-citizen excluded
201 – Ineligible non-citizen included
124 – Variance resulting from use of automatic Federal information exchange
system

¾ Element 140 - Residency
Nature codes:
99 - Other
¾ Element 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, which must be
considered in the error determination.

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For example: the discovery of an unreported 62 year old with earned income, a
bank account, and medical expenses would be recorded under Element 150
(Household Composition), not Elements 211 (Bank Accounts or Cash on Hand), 311
(Wages and Salaries), and 365 (Medical Deduction).
Variances should not be coded under this Element for persons with characteristics
that are specifically addressed under other 100 Series Elements (Student Status
through Social Security Number). For example: the discovery of an eligible noncitizen in the household who was improperly excluded would be coded under
Element 130 (Citizenship and Non-Citizen Status), not under Element 150
(Household Composition).
Nature codes:
7 - Ineligible person(s) included
12 - Eligible person(s) with no income, resources, or deductible expenses
excluded
13 - Eligible person(s) with income excluded
14 - Eligible person(s) with resources excluded
15 - Eligible person(s) with deductible expenses excluded
16 - Newborn infant improperly excluded

Element 151 - Recipient Disqualification
Nature codes:
6 - Eligible person(s) excluded
7 - Ineligible person(s) included

Element 160 – Employment & Training Programs
Nature codes:
6 - Eligible person(s) excluded
7 - Ineligible person(s) included

Element 161 – Time-limited Participation
Nature codes:
6 - Eligible person(s) excluded
7 - Ineligible person(s) included

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Element 162 – Work Registration Requirements
Nature codes:
6 - Eligible person(s) excluded
7 - Ineligible person(s) included

Element 163 – Voluntary Quit/Reduced Work Effort
Nature codes:
6 - Eligible person(s) excluded
7 - Ineligible person(s) included

Element 164 – Workfare and Comparable Workfare
Nature codes:
6 - Eligible person(s) excluded
7 - Ineligible person(s) included

Element 165 – Employment Status/Job Availability
Nature codes:
6 - Eligible person(s) excluded
7 - Ineligible person(s) included

Element 166 – Acceptance of Employment
Nature codes:
6 - Eligible person(s) excluded
7 - Ineligible person(s) included

Element 170 – Social Security Number
Nature codes:
6 - Eligible person(s) excluded
7 - Ineligible person(s) included

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RESOURCES - (200)
Liquid Resources
Element 211 – Bank Accounts or Cash on Hand
Nature codes:
24 - Resource should have been excluded
30 – Resource should have been included

Element 212 – Nonrecurring Lump-sum Payment
Nature codes:
24 - Resource should have been excluded
30 – Resource should have been included

Element 213 – Other Liquid Assets
Nature codes:
24 - Resource should have been excluded
30 – Resource should have been included

Non-Liquid Resources
Element 221 – Real Property
Nature codes:
24 - Resource should have been excluded
30 – Resource should have been included

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Element 222 – Vehicles
Nature codes:
24 - Resource should have been excluded
30 – Resource should have been included

Element 224 – Other Non-Liquid Resources
Nature codes:
24 - Resource should have been excluded
30 – Resource should have been included

Element 225 – Combined Resources
Nature codes:
20 - Incorrect resource limit applied
29 - Exceeds prescribed limit

INCOME (300)
Earned Income
Element 311 – Wages and Salaries
Nature codes:
32 - Failed to consider or incorrectly considered income of an ineligible
member
35 – Unreported source of income (do not use for change in employment status)
36 – Rounding used/not used or incorrectly applied
38 – More income received from this source than budgeted
39 - Employment status changed from unemployed to employed
40 - Employment status changed from employed to unemployed
41 - Change only in amount of earnings
42 - Conversion to monthly amount not used or incorrectly applied
43 - Averaging not used or incorrectly applied
44 – Less income received from this source than budgeted
46 - Failed to consider/anticipate month with extra pay date
123 – Income incorrectly prorated

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Element 312 – Self-Employment
Nature codes:
32 - Failed to consider or incorrectly considered income of an ineligible
member
35 – Unreported source of income (do not use for change in employment status)
36 - Rounding used/not used or incorrectly applied
38 – More income received from this source than budgeted
39 - Employment status changed from unemployed to employed
40 - Employment status changed from employed to unemployed
41 - Change only in amount of earnings
42 - Conversion to monthly amount not used or incorrectly applied
43 - Averaging not used or incorrectly applied
44 – Less income received from this source than budgeted
45 - Cost of doing business not used or incorrectly applied

Element 314 – Other Earned Income
Nature codes:
32 - Failed to consider or incorrectly considered income of an ineligible
member
35 – Unreported source of income (do not use for change in employment status)
36 - Rounding used/not used or incorrectly applied
38 – More income received from this source than budgeted
39 - Employment status changed from unemployed to employed
40 - Employment status changed from employed to unemployed
41 - Change only in amount of earnings
42 - Conversion to monthly amount not used or incorrectly applied
43 - Averaging not used or incorrectly applied
44 – Less income received from this source than budgeted
45 - Cost of doing business not used or incorrectly applied

Deductions
Element 321 – Earned Income Deductions
Nature codes:
52 - Deduction that should have been included was not
53 - Deduction included that should not have been

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Element 323 – Dependent Care Deduction
Nature codes:
52 - Deduction that should have been included was not
53 - Deduction included that should not have been

Unearned Income
Element 331 – RSDI Benefits
Nature codes:
35 - Unreported source of income
37 - All income from source was known but not included
38 - More income received from this source than budgeted
44 - Less income received from this source than budgeted
124 - Variance resulting from use of automatic Federal information exchange
system

Element 332 – Veterans Benefits
Nature codes:
35 - Unreported source of income
37 - All income from source was known but not included
38 - More income received from this source than budgeted
44 - Less income received from this source than budgeted
124 - Variance resulting from use of automatic Federal information exchange
system

Element 333 – SSI and/or State SSI Supplement
Nature codes:
35 - Unreported source of income
37 - All income from source was known but not included
38 - More income received from this source than budgeted
44 - Less income received from this source than budgeted
124 - Variance resulting from use of automatic Federal information exchange
system

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Element 334 – Unemployment Compensation
Nature codes:
35 - Unreported source of income
37 - All income from source was known but not included
38 - More income received from this source than budgeted
44 - Less income received from this source than budgeted
124 - Variance resulting from use of automatic Federal information exchange
system

Element 335 – Worker’s Compensation
Nature codes:
35 - Unreported source of income
37 - All income from source was known but not included
38 - More income received from this source than budgeted
44 - Less income received from this source than budgeted
124 - Variance resulting from use of automatic Federal information exchange
system

Element 336 – Other Government Benefits
Nature codes:
35 - Unreported source of income
37 - All income from source was known but not included
38 - More income received from this source than budgeted
44 - Less income received from this source than budgeted
124 - Variance resulting from use of automatic Federal information exchange
system

Element 342 – Contributions
Note: Errors in Child Support Payments should not be recorded in this Element.
See Element 350 (Child Support Payments Received from Absent Parent).
Nature codes:
35 - Unreported source of income
37 - All income from source was known but not included
38 - More income received from this source than budgeted
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44 - Less income received from this source than budgeted
124 - Variance resulting from use of automatic Federal information exchange
system

Element 343 – Deemed Income
Nature codes:
35 - Unreported source of income
37 - All income from source was known but not included
38 - More income received from this source than budgeted
44 - Less income received from this source than budgeted
124 - Variance resulting from use of automatic Federal information exchange
system

Element 344 – TANF, PA, or GA
Nature codes:
35 - Unreported source of income
37 - All income from source was known but not included
38 - More income received from this source than budgeted
44 - Less income received from this source than budgeted
120 - Variance/errors resulting from noncompliance with this means-tested
public assistance program
124 - Variance resulting from use of automatic Federal information exchange
system

Element 345 – Educational Grants/Scholarships/Loans
Nature codes:
35 - Unknown source of income
37 - All income from source was known but not included
38 - More income received from this source than budgeted
44 - Less income received from this source than budgeted
124 - Variance resulting from use of automatic Federal information exchange
system

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Element 346 – Other Unearned Income
Nature codes:
35 - Unreported source of income
37 - All income from source was known but not included
38 - More income received from this source than budgeted
44 - Less income received from this source than budgeted
120 - Variance/errors resulting from noncompliance with this means-tested
public assistance program
124 - Variance resulting from use of automatic Federal information exchange
system

Element 350 – Child Support Payments Received from Absent
Parent
Nature codes:
35 - Unreported source of income
37 - All income from source was known but not included
38 - More income received from this source than budgeted
44 - Less income received from this source than budgeted
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
124 - Variance resulting from use of automatic Federal information exchange
system
127 - Pass through not considered or incorrectly applied

Element 361 – Standard Deduction
Nature codes:
52 - Deduction that should have been included was not
53 - Deduction included that should not have been
65 – Incorrect standard used resulting from a change in household size

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Element 363 - Shelter Deduction
Nature codes:
52 - Deduction that should have been included was not
53 – Deduction included that should not have been
64 - Incorrect amount used resulting from a change in residence
123 - Incorrectly prorated

Element 364 - Standard Utility Allowance
Nature codes:
52 – Deduction that should have been included was not
53 - Deduction included that should not have been
54 - Incorrect standard used (Not as a result of a change in household size or
move)
64 - Incorrect amount used resulting from a change in residence
123 - Incorrectly prorated

Element 365 - Medical Deductions
Nature codes:
52 - Deduction that should have been included was not
53 - Deduction included that should not have been

Element 366 - Child Support Payment Deduction
Nature codes:
52 - Deduction that should have been included was not
53 - Deduction included that should not have been

Element 371 - Combined Gross Income
Nature codes:
28 - Incorrect income limit applied
29 - Exceeds prescribed limit

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Element 372 - Combined Net Income
Nature codes:
28 - Incorrect income limit applied
29 - Exceeds prescribed limit

OTHER - (500 and 800)
Element 520 - Arithmetic Computation
Nature codes:
75 - Benefit/allotment/eligibility incorrectly computed
79 – Incorrect use of allotment tables
80 - Improper proration of initial month’s benefits

Element 530 – Transitional Benefits
75 - Benefit/allotment/eligibility incorrectly computed
77 - Household not entitled to transitional benefits
99 - Other

Element 560 - Reporting Systems
Note: This element should be used to record errors resulting from the household
being certified under an incorrect reporting system given the household’s
characteristics and the State agency’s chosen options. Possible Reporting Systems
include: Monthly Reporting, Quarterly Reporting, Semi-Annual Limited Reporting,
Change Reporting, Status Reporting, 5 Hour Reporting and no reporting
(transitional benefits).
Nature codes:
301 - Household improperly participating under retrospective budgeting
302 - Household improperly participating under prospective budgeting
303 - Household improperly participating under monthly reporting
304 - Household improperly participating under quarterly reporting
305 - Household improperly participating under semi-annual reporting
306 - Household improperly participating under change reporting

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307 - Household improperly participating under status reporting
308 - Household improperly participating under 5 hour reporting
309 - Household improperly participating in transitional benefits

Element 810 - Food Stamp Simplification Project
Nature codes:
98 - Transcription or computation errors
99 - Other

Element 820 - Demonstration Projects
Nature codes:
98 - Transcription or computation errors
99 – Other

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14. Cause - Enter one of the following codes to indicate the primary cause for
each variance identified.
1 - Information not reported. (Client failed to report information or changes
that are required to be reported. Use this code only if the State could not
know this information from another source or could not have anticipated
the change.)
2 - Incomplete or incorrect information provided. (Client provided information
that is incorrect or incomplete and the agency was not required to verify.)
3 – Information withheld by client. (Case being referred for IPV investigation.)
4 - Incorrect information provided by client. (Case being referred for IPV
investigation.)
7 - Information reported by a collateral contact inaccurate. (The agency acted
upon information provided by a collateral contact, which was verified by
QC to be inaccurate, i.e. the client’s employer reported incorrect salary
information.)
8 – Acted on incorrect Federal computer match information that was not
required to be verified. (This variance is excluded from the error
determination but must be recorded.)
10 - Policy incorrectly applied. (The agency used the wrong policy/incorrectly
applied policy when determining eligibility or processing change
information.)
12 - Reported information disregarded or not applied. (The agency failed to
take action on information reported by the client or information that
became known through some other source, such as non-federal match
information.)
14 - Agency failed to follow up on inconsistent or incomplete information.
(Information provided by the household or collateral source was
inconsistent with other information in the case record or incomplete but
the agency failed to request verification.)
15 - Agency failed to follow up on impending changes. (The agency failed to
take follow up action on a change that was anticipated, i.e.
unemployment ending within the certification period, pregnancy, etc.)

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16 - Agency failed to verify required information. (The agency failed to use
third party information or documentation to establish the accuracy of
statements on the application or change report form which are required to
be verified. If the agency is not required to verify reported information
use code 2.)
17 - Computer programming error. (The agency eligibility system caused the
error due to a programming related problem, i.e. an incorrect amount for
standard deduction was programmed into the system, the agency
authorized the use of workarounds to the computer system that resulted
in an error, etc.)
18 – Data entry and/or coding error. (The agency made a data entry error
when keying into the State/local agency eligibility system, includes
selection of incorrect codes.)
19 – Mass Change. (The error was due to a problem with a computer generated
mass change, i.e. mass change was run late or incorrectly updated the
case.)
20 - Arithmetic computation. (The agency made an error in computation or
transcription, which was not related to computer programming or data
entry.)
21 - Computer user error. (The EW failed to use computer system properly or
used an unauthorized process to work around the system.)
99 - Other. (Variance caused by the agency, which does not fall under any of
the specific causes listed above.)

15. Error Finding – (Optional). This item provides a means for reviewers to
identify the impact of individual variances. If only one variance is recorded for
an error case, the error finding code for this item and item 8, finding, should
be the same. Enter the appropriate code for each variance:
2 - Overissuance
3 - Underissuance
4 – Ineligible

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16. Error Amount - (Optional) Compute and enter the dollar amount of each
separate variance. If one variance is coded, then the amount in this item
should be the same as the error amount in item 10. If more than one variance
is coded, the agency may use the optional guidance provided in Chapter 12 or
use State developed procedures for assigning dollar amounts. Some agencies
find this calculation helpful as an aid in prioritizing error causes for corrective
actions.

17. Discovery - Enter one of the following codes to indicate how the variance was
discovered:
1 - Variance clearly identified from case record: documentation is not from an
automated match
2 - Variance clearly identified from case record: documentation is from an
automated match
3 - Variance discovered from recipient interview
4 - Employer (present or former)
5 - Financial institution, insurance company, or other business
6 - Landlord
7 - Government agency or public records, not automated match
8 - Government agency or public records, automated match
9 – Other

18. Verified - Enter one of the following codes to indicate how the variance was
verified:
1 - From case record: verification is not from an automated match
2 - From case record: verification is from an automated match
3 - From information provided by recipient
4 - Employer (present or former)
5 - Financial institution, insurance company, or other business
6 - Landlord
7 - Government agency or public records, not automated match
8 - Government agency or public records, automated match (may not apply to
tax information)
9 - Other

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19. Occurrence - Complete the following for each variance:
a.

Date - Enter the date (month and year) the variance occurred.

b.

Time Period - Enter the appropriate code to indicate the time period
during which the variance occurred.
1 - Before most recent action by agency (The most recent action would
be either a certification or a recertification.)
2 - At time of most recent action by agency
3 - After the most recent action by agency
9 - Time of occurrence cannot be determined

SECTION 3 - HOUSEHOLD CHARACTERISTICS
This section collects information about the household’s processing and specifics about
resources, income, and deductions that were the basis of their food stamp benefits.
Some specific items come from the case record (Items 20-24, and 26-27). These items
are: most recent action, type of action, length of certification period, allotment
adjustment, amount of adjustment, receipt of expedited service, and authorized
representative.
For all other items use information from the final QC determination.

20.

Most Recent Certification Action - Enter the effective date (month, day
and year) of the most recent certification or recertification action prior to or
concurrent with the review date. This date cannot be prior to the start of the
most recent certification period and should be in the case record.

21.

Type of Action – Based on information in the case record, indicate the type
of action by entering one of the following codes:
1 - Certification
2 - Recertification
Certification means the first time a case has been certified or a certification
action following a break in participation.

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Recertification means the initial certification period has expired and the
agency has (a) completed a reexamination of all factors of eligibility subject to
change following a period of time during which the recipient has been
determined eligible and (b) made a decision to continue eligibility.

22. Length of Certification Period - Enter the number of months the household
was certified to participate during the current certification or recertification.
For households that are participating in months for which
they have not been certified enter the code 98. This information should be
found in the case record.

23. Allotment Adjustment – This item records whether there was any
adjustment from the standard amount for the household size and income level
of the household. Proration is providing less than a full month’s allotment due
to the date of application or receipt of verification. Other adjustments include
claims recoupment, sanctions, and adjustments for failure to comply with other
means tested programs. Supplements included in the allotment are not
considered as allotment adjustments for this item.
Enter the code that indicates whether or not the allotment was adjusted or
prorated. If more than one adjustment was made, enter the code for the
adjustment with the greatest impact on the food stamp allotment.
Supplements included in the allotment are not considered as allotment
adjustments for this item.
1 - No adjustment
2 - Prorated benefit
3 - Other adjustment

24. Amount of Allotment Adjustment - Enter the amount of the allotment
adjustment from the record. If more than one adjustment was applied, enter
the total amount of the difference between the allotment for the household
size and income of the household and the amount the household actually
received. If item 23 is coded 1, no adjustment, leave this item blank. Enter 9
if the amount of adjustment is unknown.

25. Number of Household Members - Enter the number of person(s)
determined to be a part of the food stamp household and eligible to receive
benefits based on the final QC determination. Include persons who should have
been in the household but were not in the State’s original determination. Do
not include persons whose income/resources are considered but are not
receiving food stamps or food stamp household members who have been
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disqualified from the program. If the household was ineligible for benefits,
enter zero.

26.

Receipt of Expedited Service – Using information from the case record,
enter the appropriate code for the household’s entitlement to expedited
service at the most recent certification in effect at the time of the sample
month:
1 - Entitled to expedited service and received benefits within the Federal
timeframe.
2 - Entitled to expedited service but did not receive benefits within the Federal
timeframe.
3 - Not entitled to expedited service.

27.

Authorized Representative Used at Application - Enter the
appropriate code using information from the case record. An authorized
representative is a responsible adult designated by the household, in writing, to
apply for benefits on behalf of the household. Did an authorized
representative make application for the household?
1 - Yes
2 - No

28. Categorical Eligibility Status – Was the household categorically eligible for
benefits based on the final QC determination?
1 –Yes
2 – No

29. Reporting Requirement - Select the code that describes the reporting
system used to certify the household. If the household was certified under sixmonth reporting enter code “6”, simplified reporting (also called six month
reporting or semiannual reporting), even if QC determined that the appropriate
reporting system should have been something else.
1 - $25 change reporting
2 - $80 change in earned income
3 - $100 change in earned income
4 - Status reporting
5 - 5-hour change in hours worked and expected to continue over a month
6 - Simplified reporting (exceeding 130% of income poverty guidelines)
7 - Quarterly reporting

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8 - Monthly reporting
9 - Transitional benefits (no reporting requirement)
10 – Other

Resources:
30.

Liquid Assets – Enter the dollar value of liquid assets such as cash on hand,
checking and savings accounts, money market accounts, stocks, bonds, income
tax refunds using information from the final QC determination. For amounts
greater than $99,998 enter the code 99998. When there is an indication that a
resource type was present but that amount is unknown, enter the code 99999.
If an approximate amount is known, enter that amount.

31. Real Property (Excluding Home) - Enter the dollar value of land and
buildings owned, excluding the primary residence using information from the
final QC determination. For amounts greater than $99,998 enter the code
99998. When there is an indication that a resource type was present but that
amount is unknown, enter the code 99999. If an approximate amount is known,
enter that amount.

32(a). Vehicle - Code information on up to two vehicles in items (a) and (b). Use
information from the final QC determination. Vehicles should be entered in
descending order based on the fair market value.
1 - No vehicles
2 - Vehicle exempt because used for producing income, as a home, to transport
a physically disabled member, for long distance travel (other than
commuting), or to carry fuel or water.
3 - Vehicle exempt because inaccessible resource (equity value is $1,500 or
less)
4 – Vehicle exempt due to categorical eligibility
5 - Vehicle excluded under State TANF standard (vehicle of non-categorically
eligible household members only)
6 - Vehicle is registered and is attributable to an adult household member or is
used by a person under 18 for employment or education (subject to fair
market value only)
7 - Vehicle not registered (equity test only)
8 - Vehicle is not excluded and is not included in code 6 (subject to fair market
value or equity test, whichever is greater)

32(b). Status 2nd Vehicle – Use the codes 2 through 8 from 32(a).

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33. Countable Vehicle Assets – Record that portion of a vehicle’s value
counted toward the household’s resource limit using information from the final
QC determination.

34. Other Non-liquid Assets – Enter the dollar value of non-liquid assets such as
boats and trailers using information from the final QC determination. For
amounts greater than $99,998 enter the code 99998. When there is an
indication that a resource type was present but that amount is unknown, enter
the code 99999. If an approximate amount is known, enter that amount.

Income:
35.

Gross Countable Income - Enter the countable gross monthly income of
the Food Stamp household before applying any deductions to the income from
the final QC determination. Enter all countable income. Include prorated
amounts from ineligible household members.

36.

Net Countable Income- Enter the countable net monthly income from the
final QC determination used to compute the amount of the Food Stamp
allotment for the sample month after application of all appropriate deductions.

Deductions:
37.

Earned Income - Enter the amount of the earned income deduction that the
household was eligible to receive based on the final QC determination.

38.

Medical - Enter the amount of the allowable medical expenses for elderly and
disabled household members based on the final QC determination.
Do not record the value of the allowable medical deduction ($35). Enter those
medical expenses in excess of $35 per month.
For example, if a household was billed $100 for medical expenses, enter $65
($100 minus the medical deduction of $35).

39. Dependent Care - Enter the total dependent care deduction to which the
household was entitled based on the final QC determination.

40. Child Support - Enter the dollar value of the child support payment
deduction from the final QC determination.
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FNS HANDBOOK 310

41. Shelter - Enter the dollar value of the shelter deduction from the final QC
determination.

42. Homeless - Select the code that applies to this household based on the final
QC determination.
1 - Not homeless
2 - Homeless, not receiving homeless shelter allowance
3 - Homeless, receiving homeless shelter allowance

Additional Information on Shelter Costs:
43. Rent/Mortgage - Enter the amount the household was billed for
rent/mortgage from the final QC determination. Include taxes, insurance,
condo fees and homeowner association fees.

44. Use of SUA – This entry has two boxes that are used to collect different
information about the SUA. Do not complete 44(b) if 44(a) is coded 1.

a. Usage - Enter the code which describes usage and entitlement to the SUA
based on the final QC determination:
1 - No utilities and no LIHEAA
2 - Uses actual expenses
3 - Uses higher standard based on LIHEAA
4 - Uses higher standard and does not receive LIHEAA
5 - Uses lower standard
6 – Uses phone only standard
7 – Uses individual standards
9 - Other
LIHEAA is the Low Income Home Energy Assistance Act, your State program
may have another name such as Home Energy Assistance Program (HEAP)
Higher Standard is an SUA based upon receipt of heating or cooling and
includes all utilities
Lower Standard is an SUA based upon all utilities but is for households who
do not incur heating or cooling or receive LIHEAA.

b. Proration - Select the code that identifies whether the SUA amount was
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FNS HANDBOOK 310

prorated (e.g. prorated among non-household members of the residence).
1 - Not prorated
2 – Prorated

45. Utilities (SUA or Actual) - This item should be completed for all cases. For
households using actual utility expenses, enter the actual amount that was
billed for all utilities (gas, water, phone, electric, etc.) based on the final QC
determination. For households using an SUA, enter the amount of the SUA that
was used, based on the final QC determination. Enter $0 if there were no
utility expenses.

SECTION 4 – INFORMATION ON EACH HOUSEHOLD MEMBER
Complete the following section, using information from the final QC determination,
for eligible food stamp households. Enter information on each household member,
including individuals whose income and resources were considered in establishing food
stamp benefit level. If the number of household members exceeds the number of
lines available, attach an additional page to allow for coding detailed person-level
information on all food stamp household members. You may currently enter
information on up to 16 individuals on the automated system, but you may record
information on all household members using the paper form. If the entire household
is ineligible do not enter any information in this section.
For disqualified or ineligible food stamp household members, items 46, 47, 48, and
58, if applicable, (person number, food stamp program participation, relationship to
head of household, and dependent care costs) of this section must be completed.
Information on income for these members must also be recorded in Section 5. For
disqualified or ineligible members, the rest of the information in this section should
be completed based on information known through observation or available in the
case record.
NOTE: Do not enter zeros in items 48, 50-52, and 54-58 (Relationship to Head of
Household, Sex, Race, Citizenship Status, Employment Status, Work Registration,
Employment and Training Program Status, ABAWD Status, and Dependent Care Cost).

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46. Person Number - Assign and enter a number for each food stamp
household member (1, 2, etc.). This will include ineligible food stamp
household members whose resources and income are considered in the
eligibility determination. Use this assigned number to identify
household members with income in Section 5. Code the head of the
household as person 1.

47. Food Stamp Program Participation – For each person indicate
his/her eligibility or ineligibility for participation in the FSP (i.e., either
eligible for participation and entitled to benefits or a reason for
ineligibility. For ineligible non-citizens, whether they participate in a
State funded FSP).
1 – Eligible member of Food Stamp case under review and entitled to
receive benefits
2 - Reserved
3 - Reserved
4 - Member is an ineligible non-citizen and is not participating in a State
funded FSP
5 - Member not paying/cooperating with Child Support agency
6 - Member is an ineligible striker
7 - Member is an ineligible student
8 - Member is disqualified for program violation
9 - Member is ineligible to participate due to disqualification for failure
to meet work requirements (work registration, E&T, acceptance of
employment, employment status/job availability, voluntary
quit/reducing work effort, workfare/comparable and workfare).
10 - ABAWD time limit exhausted and the ABAWD is ineligible to
participate due to failure to meet ABAWD work requirements, to
work at least 20 hours per week, to participate at least 20 hours per
week in qualifying educational training activities or to participate in
workfare.
11 - Fleeing felon or parole and probation violator
12 – Reserved
13 - Convicted drug felon
14 - Social Security Number disqualified
15 - SSI recipient in California.
16 - Prisoner in detention center
17 - Foster care
18 - Member is an ineligible non-citizen and is participating in a Statefunded Food Stamp Program.
99 - Unknown

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48. Relationship to Head of Household - Enter the code that shows the
relationship (including by marriage) of the person indicated in item 46
(person number) to the head of the household, as defined by the Food
Stamp Program from final QC determination.
12345-

Head of household
Spouse
Parent
Daughter, stepdaughter, son, stepson
Other related person (brother, sister, niece, nephew, grandchild,
great-grandchild, cousin)
6 – Foster Child
7 - Unrelated person

49. Age - Enter the age (in years) from the final QC determination, of each
household member. For children less than 1 year old, enter 0. For
persons 98 and older enter 98. If exact age is unknown, enter the best
available information.

50. Sex - Enter the appropriate code:
1 - Male
2 – Female

51. Race - Enter the race of each person living in the household.
*
*
*
*
*
*
*
*
*
*
*
*
*
*

This is to collect racial and ethnic data as required by the changes brought
about by the May 18, 2006 regulation Food Stamp Program: Civil Rights Data
Collection and to identify how to collect the information until the entire
caseload has been converted to the new requirement. The change to the new
format may be done voluntarily at this time but is required for all new
applications and recertifications effective April 1, 2007. Under this scenario
QC reviewers will be recording the racial/ethnic data in the new format as
soon as available and will be collecting the old format from now through April
2009.
New format: Use codes 1 through 22 to record information if it has been
collected in the new format.
Old format: Use codes 30 through 34 and 99 if the data is in the old format.
We expect the information will continue to be in the old format for most cases

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FNS HANDBOOK 310
until there are new applications and recertification after April 1, 2007. Due to
the way that recertifications are scheduled, cases will continue to have the old
format until their certification periods expire in the year following for most
cases and 2 years for those elderly cases with 24 month certification periods.
This will mean that all cases will be in the new format on April 1, 2009.

*
*
*
*

Under the rules for the new format, applicants are asked to voluntarily fill out
ethnicity and race on their applications. Eligibility workers identify
information for the applicant when they have not voluntarily filled out the
information. QC reviewers are to collect only the information that has been
recorded on the application.

*
*
*
*
*

New Format

*

Information Not Available

*

1 – The application was not found during the QC review therefore
racial/ethnic data is not available.
2 – Not recorded on the application for this individual.
Not Hispanic or Latino
3–
45–
6–
7–

*

American Indian or Alaska Native
Asian
Black or African American
Native Hawaiian or other Pacific Islander
White

Multiple races reported

*
*
*
*
*
*

8 – (American Indian or Alaska Native) and White
9 – Asian and White
10 – (Black or African American) and White
11 – (American Indian or Alaska Native) and (Black or African American)
12 – Respondent reported more than one race and does not fit into the
above categories (code 8 through 11)

11-20-08 (Change 1)

*
*
*

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*
*
*
*
*
*

FNS HANDBOOK 310
*

Hispanic or Latino

*
*
*
*
*

13 –
14 –
15 –
16 –
17 –

(Hispanic
(Hispanic
(Hispanic
(Hispanic
(Hispanic

or
or
or
or
or

Latino) and (American Indian or Alaska Native)
Latino) and Asian
Latino) and (Black or African American)
Latino) and (Native Hawaiian or Other Pacific Islander)
Latino) and White

*

Multiple races reported

*
*
*
**
*
*
*
*

18 – (Hispanic or Latino) and (American Indian or Alaska Native) and
White
19 – (Hispanic or Latino) and Asian and White
20 – (Hispanic or Latino) and (Black or African American) and White
21 – (Hispanic or Latino) and (American Indian or Alaska Native) and
(Black or African American)
22 – (Hispanic or Latino) and Respondent reported more than one race
and does not fit into the above categories (code 18 through 21)

*

Old Format

*
*
*
*
*
*
*

These codes are for the recording of race based upon the older data collection
requirements for those cases where the new format has not yet been
collected. Remember racial and ethnic data must be collected in the new
format for all new applications and recertifications above beginning April 1,
2007. Under the old data collection reviewers identify the racial/ethnic
category of the members of the household as they can by either asking the
person being interviewed or through personal observation.

*

Racial/Ethnic Data Not Collected in the New Format

*
*
*
*
*
*

30 31 32 33 34 99 –

White, not of Hispanic origin
Black, not of Hispanic origin
Hispanic
Asian or Pacific Islander (Oriental)
American Indian or Alaskan Native
Unknown

52. Citizenship Status - Enter the appropriate code.
1 - U.S. born citizen
2 - Naturalized Citizen

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FNS HANDBOOK 310
3 - Legal permanent resident with 40 quarters, military service, five
years legal United States residency, disability, or under 18 years of
age.
4 – Reserved
5 – Person admitted as refugee, granted asylum or given a stay of
deportation.
6 - Other eligible non-citizen
7 - Non-citizen legally in US who does not meet one of the above codes
and who is not receiving food stamps but whose income and
resources must be considered in determining benefits
8 – Other ineligible legal non-citizen (e.g. visitor, tourist, student,
diplomat)
9 - Undocumented non-citizen
10 - Non-citizen, status unknown
99 – Unknown

53. Educational Level - Enter highest educational level completed for
each member of the household from the final QC determination:
0 - None
1 - Grade 1
2 - Grade 2
3 - Grade 3
4 - Grade 4
5 - Grade 5
6 - Grade 6
7 - Grade 7
8 - Grade 8
9 - Grade 9
10 - Grade 10
11 - Grade 11
12 - High school diploma or GED*
13 - Post secondary education (e.g. technical education or some college)
14 - College graduate or post-graduate degree
99 - Unknown
* If member attended grade 12 but did not graduate, use code 11.

54. Employment - Enter information on the current employment status of
all persons based on the final QC determination.

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FNS HANDBOOK 310

First box: Status
1–
2–
3–
4–
5–
6–
78–

Not in labor force and not looking for work
Unemployed and looking for work
Active duty military
Migrant farm laborer
Non-migrant farm laborer
Self-employed, farming
Self-employed, non-farming
Employed by other

Second box: Hours Worked
1–
2–
3–
4–
5–

Not employed
1-19 hours per week
20-29 hours per week
30-39 hours per week
40+ hours per week

55. Food Stamp Program Work Registration - Enter information on
the current work registration status of all persons as known by the State
agency based on the final QC determination:
*
*

12–
345-

Federal exemption for disability
Federal exemption for a reason other than disability
Work registrant, not employment and training (E&T) participant
Work registrant, voluntary E&T participant
Work registrant, mandatory E&T participant

56. Food Stamp Program (FSP) Employment and Training (E&T)
Program Status - Enter information on the current E&T program status
of all household members as known by the State agency based on the
final QC determination:
0–
1–
2–
3–
4–
5–
6–

Not participating in E&T
Participating in non-FSP E&T (such as TANF)
FSP Job search or job search training
FSP E&T workfare or work experience
FSP E&T Work supplementation
FSP E&T education leading to HS diploma or GED
FSP E&T post secondary education leading to degree or certificate

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7 – FSP E&T remedial education (including adult education and English
lessons not leading to a degree)
8 – FSP E&T vocational training
9 - Other

57. ABAWD Status - A household member must be age 18 through 49 to be
an Able Bodied Adult Without Dependents (ABAWD). Enter one of the
following codes from the final QC determination:
123456-

Not an ABAWD
ABAWD in a waived area
Exempt based on 15 percent option
ABAWD meeting work requirements
ABAWD in 1st 3 months
ABAWD in 2nd 3 months

58. Dependent Care Cost - For each child/adult with associated
dependent care expenses enter the amount of the expense that the
household is responsible for paying using information from the final QC
determination. If the cost for more than one child/adult is combined,
divide the cost evenly amongst each child/adult receiving care.

SECTION 5 – INCOME IDENTIFIED BY HOUSEHOLD MEMBER
This section collects detailed information on known income sources, by type
and amount, based on the final QC determination. Information can be
collected on up to four sources of income for up to ten household members. If
income exists but is not attached to any specific member, assign the income to
the payee. Enter all income amounts rounded to the nearest dollar.

59. Person Number – Enter the person number from Section 4 for each
food stamp household member with income based on information from
the final QC determination. (This number is assigned in Section 4, item
46).

Source 1
60. Income Type - (This instruction applies to items 60, 62, 64, and 66).
Based on the final QC determination, identify the type of countable
income as listed below for each type of income received by a food
stamp household member.

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FNS HANDBOOK 310

Earned Income (Not Subsidized)
11 - Wages and salaries
12 - Self-employment
14 - Other earned income
Subsidized Earned Income
16 - Wage supplementation - enter earnings that are above cash
assistance and/or food stamp amount
Unearned Income
15 - Energy Assistance income
31 - RSDI benefits
32 - Veterans benefits
33 - SSI
34 - Unemployment Compensation
35 - Workmen’s Compensation
36 - Other government benefits
37 – Foster care income
42 - Contribution
43 - Deemed income
44 - State general assistance or other State-funded welfare (don’t
include TANF here)
45 - Educational grants/scholarships/loans
46 – Other
47 - TANF
48 - State only diversion payment
49 – Interest income
50 - Court ordered child support payments received from absent parent
or responsible person
99 - Unknown

61. Amount - (This instruction applies to Items 61, 63, 65, and 67.) Enter
the gross amount of countable income received by the food stamp
household member for the month from the final QC determination.

Source 2
62. Income Type - Second type of income. See item 60.
63. Amount - Second amount of income. See item 61.

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Source 3
64.

Income Type - Third type of income. See item 60.

65.

Amount - Third amount of income. See item 61.

Source 4
66.

Income Type - Fourth type of income. See item 60.

67.

Amount - Fourth amount of income. See item 61.
SECTION 6 - RESERVED CODING

68.

Timeliness of Application Processing (Expedited and 30 Day
Requirement - This information is being collected for possible bonus
payments. We want to delineate if there was timeliness of application
processing for cases when a new application was filled in the current
Federal Fiscal Year.
Timeliness of application processing is measured for cases that filed an
application in the current Fiscal Year. If there is more than one
application in the current Fiscal Year, measure timeliness for the most
recent application for or prior to the sample month.
We are measuring the timeliness of application processing according to
Federal processing standards. A household entitled to expedited service
must be provided the opportunity to participate within 7 days.
Households not entitled to expedited service must be provided the
opportunity to participate by the 30th day following the date of
application. A case that meets the applicable Federal processing
standard is coded 1 – timely. A case that fails to meet the applicable
Federal processing standard is coded 2 – not timely.
If a new application was not filed in the review year, the case will not
be used in determining the bonus payment. The case should be coded 3 –
Other. Also, use Code 3, for cases that have been properly pended for
incomplete verification. Improperly pended cases should be coded 2 –
not timely.

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If after a thorough review of case circumstances and records there is no
documentation, application or other information to determine
timeliness, the case should be coded 3. For cases with this problem,
every effort should be made to determine the timeliness of the case
before deciding to use the Other code.
Please indicate the appropriate code:
1 – Timely
2 – Not timely
3 - Other
*

69.

1 - Telephonic personal interview with household
2 - No Interview with household (likely conclusion) Failure or Refusal to
Cooperate
3 - No Interview with household (disposition incomplete) Failure or Refusal to
Cooperate
4 - No interview with household (disposition not subject to review)
5 - No interview with household (Ineligible determination prior to interview)
6 - Alaska – remote area no interview
7 - Alaska – telephone interview
8 - Face-to-face home visit
9 - Face-to-face in local office
0 - Face-to-face in mutually agreed upon location

*
*
*
*
*
*
*
*
*
*
*
*

*
*
*
*
*
*
*
*
*

QC Interview – Enter the appropriate code from the following:

70.

Recertification Timeliness

RESERVED

71.

Allotment Test - Enter the appropriate code that reflects which of the
Allotment Tests (Comparison I or Comparison II) has been recorded in Item #10. Enter
one of the following codes:
1 – Comparison I recorded, Comparison II was not needed
2 – Did Comparison II, recorded Comparison I
3 – Did Comparison II, recorded Comparison II
4 – Comparison I equaled Comparison II
5 – Case ineligible, no Comparison I or Comparison II done

SECTION 7 – OPTIONAL FOR STATE USE
There are 4 lines of spaces available to the State to code additional information.

01-13-12 (Change 3)

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APPENDIX D

10-01-2011 (Change 2)

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FNS HANDBOOK 310

FNS HANDBOOK 310

10-01-2011 (Change 2)

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FNS HANDBOOK 310

APPENDIX D
INSTRUCTIONS FOR COMPLETING FORM FNS-245,
SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (SNAP)
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 case action reviews. It is to be used as both a worksheet
and the review schedule. The schedule consists of five sections as follows:
I II III IV V -

*
*

Case Management Information
Identifying Information
Analysis of Review Activity
Description of Variances
Explanation of Review Findings

SECTION I - CASE MANAGEMENT INFORMATION
This section provides case management information and household identity.

1.

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

2.

Telephone Number - Enter the telephone number of the household.

3.

Mailing Address - Enter the mailing address of the household.

4.

Actual Address/Directions to Locate - Enter the actual address at which

5.

*
*
*

the household resides, if different from the mailing address.

*

Date Assigned - Enter the month, day, and year (MM DD YYYY) the case was

*

assigned to the QC reviewer.

6.

Date Complete/Disposed of - Enter the month, day, and year (MM DD
YYYY) the review was finalized; the reviewer’s name/ID entry indicates who
did the review.

10-01-11 (Change 2)

D-3

*
*

FNS HANDBOOK 310

*
*
*

7.

Date Cleared - Enter the month, day, and year (MM DD YYYY) the supervisor
cleared the review; the supervisor’s name/ID entry indicates completeness and
approval of the review.

SECTION II - IDENTIFYING INFORMATION
*

This section provides identifying information related to the negative case action
under review. For all cases, fill in items A through I.

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:
• 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.
• 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. State
agencies must identify for the reviewer how cases are sampled so that the
appropriate sample month and year are entered. Each State agency has an
FNS approved sample plan.

*
*
*
*
*
*

ITEM E.

*
*
*

ITEM F.

*
*

Stratum - Enter the two-digit stratum code. Stratum codes are assigned
by the State agency when the sample is stratified. If stratum codes are
not used by the State, other information may be entered here as a State
option.

Notice Date - Enter the month, day and year (MM DD YYYY) the notice
was sent for the negative action selected for review. If no notice was
sent, enter nines.

ITEM G. Action Date - Enter the month, day and year (MM DD YYYY) the action
was taken by the State agency for the negative action selected for review.

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FNS HANDBOOK 310

ITEM H. Action Type - Enter the action taken by the State agency using the

ITEM I.

appropriate code as follows:

*
*

1 - Denial of SNAP application
2 - Termination of SNAP benefits
3 - Suspension of SNAP benefits

*
*
*

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).

*

SECTION III - ANALYSIS OF REVIEW ACTIVITY
This section provides information regarding the action taken and the analysis of the
review of the action to deny a SNAP application, terminate SNAP benefits or suspend
SNAP participation. For completed cases, fill in items J through U. For cases that are
not subject to review or incomplete fill out items N and U only.

ITEM J.

Notice Requirements - Enter the appropriate code to indicate the
reason for the action as reflected by the case record.
A - No requirement to issue a notice on this action.
B - Notice was accurate, timely, and contained all required information.
C - NOAA - Required notice not sent to the household. (This code should
be used when no notice was sent or when the notice sent went to the
incorrect address.)
D - NOAA - Notice sent was not accurate/did not contain correct reason
for action.
E - NOAA - Notice did not comply with applicable timeframes.
F - NOAA - Notice sent was not clearly understandable.
G - NOAA – Notice sent did not contain the required information as defined
by regulations.
H - NOAA – Notice sent did not contain correct reason for action and was
not clearly understandable.
I - NOAA – Notice did not contain correct reason for action and did not
contain the required information as defined by regulations.
J - NOAA - Notice sent did not contain correct reason for action and was
not clearly understandable and did not contain the required
information as defined by regulations.

10-01-11 (Change 2)

D-5

*
*
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K - NOMI - Required notice not sent to the household. (This code should be
used when no notice was sent or when the notice sent went to the
incorrect address.)
L - NOMI – Notice sent to the household was not accurate.
M - NOMI – Notice did not comply with applicable timeframes.
N - NOMI – Notice was not clearly understandable.
O - NOMI – Notice sent to the household did not contain the required
information as defined by regulations.
P - NOMI – Notice sent to the household was not accurate and did not
comply with applicable timeframes.
Q - NOMI – Notice sent to the household was not accurate and did not
contain the information as defined by regulations.
R - NOMI – Notice did not contain required information as defined by
regulations and did not comply with applicable timeframes.
S - NOAA and NOMI - Notices to household were not sent/did not comply
with timeframes.
T – Periodic Report – did not send the Interim Report
U – Periodic Report – did not send the Interim Report within the
appropriate timeframes
V – Periodic Report – did not send Notice of Missing or Incomplete Report
ten (10) days from the date the report should have been submitted
W - Request for Contact – did not send a request for contact which was
clear and timely

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ITEM K.

Recorded Reason for Action - Enter the appropriate code to indicate
the reason for the action as reflected by the case record.
01 - Resident of an institution not authorized by FNS
02 - Outside of project area or State
03 - Ineligible striker
04 - Ineligible noncitizen
05 - Ineligible student
06 - Ineligible boarder
07 - Missed scheduled interview(s)
08 - Failed to provide verification
09 - 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

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19 - Termination/denial due to TANF termination/denial
20 - Intentional program violation
21 - Termination/denial due to program disqualification
22 - Termination/denial of household of able bodied adult(s) whose time
limited period of SNAP eligibility has expired
23 - Failure to comply, without good cause, with SNAP 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
31 – Household received benefits in another SNAP household for same time
period
32 – Household received benefits in another state for the same time
period
33 – Household received tribal commodities and is not eligible to receive
SNAP benefits
99 - Other

ITEM L.

Finding - Final Analysis of the QC Review of the Negative Action - Enter
the appropriate code:
01 - Valid Negative Action indicates that 1) the action taken was
appropriate; and 2) the reason for the action was correct; and 3) the
household was notified on a clear, correct, complete notice with the
correct reason for the action. A valid determination requires that all
three were correct.
02 - Invalid Negative Action indicates that either the action taken was not
correct, or the reason for the action was not correct or the notice
given to the household was not correct or no notice was sent to the
household when the notice was required to have been sent. This
could also indicate that any combination of the above were incorrect.
An invalid result requires that one of the items is incorrect. (Item M(a)
= 2, Item M(a) = 3, Item Q = 2, Item R = 2; or any combination of the
four)

ITEM M. Household Notice
(a) Notice Specific, Clear, and Understandable - Enter the
appropriate code regarding the notice to the household. The notice
must be specific regarding the reason for the action; the explanation
of the action must be clearly understandable. (Example: If the
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notice contains a list of reasons and none are checked or identified as
the reason(s) for the action then code 2 would apply.) This measure
is not to evaluate the validity of the reason; it is to evaluate the
clarity of the notice.
1 - Yes, the reason for the action stated on the notice is specific, the
notice is clear and the notice is understandable for the action.
2 - No, either the reason for the action stated on the notice is not
specific, or the notice is not clear or the notice is not
understandable for the action; or any combination of the three. A
detailed and thorough explanation is required in Section V, if code
2 is used.
3 - No notice was sent to household when notice was required.
4 - No notice was sent to household because a notice was not required.

(b) Reason to HH Enter the appropriate code to indicate the reason for
the action as presented to the household.
01 - Resident of an institution not authorized by FNS
02 - Outside of project area or State
03 - Ineligible striker
04 - Ineligible noncitizen
05 - Ineligible student
06 - Ineligible boarder
07 - Missed scheduled interview(s)
08 - Failed to provide verification
09 - 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
21 - Termination/denial due to program disqualification
22 - Termination/denial of household of able bodied adult(s) whose
time limited period of SNAP eligibility has expired
23 - Failure to comply, without good cause, with SNAP work
requirements
24 - Eligible for zero benefits
25 - Failure to access EBT benefits
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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
31 – Household received benefits in another SNAP household for same
time period
32 – Household received benefits in another state for the same time
period
33 – Household received tribal commodities and is not eligible to
receive SNAP benefits
99 - Other
00 - No notice sent to household

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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, an entry in Reserved Coding section Item U must
be made with no further entries required on this schedule.
3 - Incomplete/Review Not Processed. Enter this code if the reviewer was
unable to locate any form of the case record or was unable to process
the case as defined in Chapter 13 of the FNS Handbook 310. If Code 3
is entered in this item, an entry in Reserved Coding section Item U
must be made with no further entries required on this schedule.
4 - Case deselected/correction for oversampling. If Code 4 is entered in
this item, no further entries are required on this schedule.

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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).

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ITEM O. Element - Enter the appropriate three digit element number of the

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review for each variance identified.

ITEM P.

Nature Codes - Enter the appropriate three digit code for the nature of
the identified variance(s). Possible nature codes for the specific Element
are listed below the Element code and title. The nature codes may be
used in any element.

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BASIC PROGRAM REQUIREMENTS – (100)
¾ Element 111 - Student Status
Nature codes:

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001 002 003 014 015 019 044 096 131 132 133 134 135 136 137 138 139 -

Eligible person(s) excluded
Ineligible person(s) included
Agency failed to follow up on inconsistent or incomplete information
Eligible student incorrect income
Eligible student incorrect student deductions
Eligible student was denied for failing to verify student status which was
previously verified
Failed to consider or incorrectly considered Eligible Student status
Policy incorrectly applied
Eligible student excluded and met exemption - 17 and younger / 50 and
older
Eligible student excluded and met exemption - Enrollment as part of Job
Eligible student excluded and met exemption – On-the-job training
Eligible student excluded and met exemption - Employment requirements
met
Eligible student excluded and met exemption - Physically or mentally unfit
Eligible student excluded and met exemption - Receiving TANF
Eligible student excluded and met exemption - Responsible for care of child
under 6
Eligible student excluded and met exemption - Single parent, child under
12, enrolled full time
Eligible student excluded and met exemption - State or Federal Work Study

¾ Element 130 - Citizenship and Non-Citizen Status
Nature codes:

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001 002 003 096 140 141 142 143 144 145 -

Eligible person(s) excluded
Ineligible person(s) included
Agency failed to follow up on inconsistent or incomplete information
Policy incorrectly applied
Eligible qualified alien excluded – Amerasians
Eligible qualified alien excluded - Asylees or Deportation Withheld
Eligible qualified alien excluded - Certain American Indians born Abroad
Eligible qualified alien excluded - Children under 18
Eligible qualified alien excluded - Cuban or Haitian Entrant
Eligible qualified alien excluded - Elderly lawfully residing in U.S. age 65 or
older on August 22, 1996
146 - Eligible qualified alien excluded - Hmong or Highland Laotian tribal
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147 148
149
150
151
152
153

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members
Eligible qualified alien excluded - Individuals receiving benefits for
blindness or disability
Eligible qualified alien excluded - Iraqi or Afghan Special Immigrants
Eligible qualified alien excluded - LPR with 40 qualifying quarters of work
Eligible qualified alien excluded - LPR with living in US 5 years
Eligible qualified alien excluded - military connection
Eligible qualified alien excluded – Refugee
Eligible qualified alien excluded - Victims of Severe Trafficking

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¾ Element 140 - Residency
Nature codes:
003 088 096 099 154 -

Agency failed to follow up on inconsistent or incomplete information
Improper denial or termination, not out of the project area
Policy incorrectly applied
Other
Improper denial - Homeless household denied for failing to provide address

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¾ Element 150 - Household Composition
Nature codes:
002 003 006 007 008 009 010 011 096 -

Ineligible person(s) included
Agency failed to follow up on inconsistent or incomplete information
Entitled to separate status
Eligible person(s) with no income, resources, or deductible expenses
excluded
Eligible person(s) with income excluded
Eligible person(s) with resources excluded
Eligible person(s) with deductible expenses excluded
Newborn infant improperly excluded
Policy incorrectly applied

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¾ Element 151 - Recipient Disqualification
Nature codes:
002 - Ineligible person(s) included
018 - Eligible person(s) disqualified
096 - Policy incorrectly applied

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¾ Element 160 - Employment & Training Programs
Nature codes:

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004 - Agency failed to follow up on known and reported impending changes
018 - Eligible person(s) disqualified
054 - Failure to cooperate with work program when not required to register for
work program
060 - Household not notified of requirement to register with work program
096 - Policy incorrectly applied
155 - Individual inappropriately sanctioned

¾ Element 161 - Time-limited participation
Nature codes:

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004 018 096 156 157 -

Agency failed to follow up on known and reported impending changes
Eligible person(s) disqualified
Policy incorrectly applied
Improper denial - met ABAWD exemption
Months incorrectly calculated

¾ Element 162 - Work Registration Requirements
Nature codes:

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001 002 004 096 158 159 160 161 162 163 164 165 -

Eligible person(s) excluded
Ineligible person(s) included
Agency failed to follow up on known and reported impending changes
Policy incorrectly applied
Eligible person(s) excluded - exempt from work requirements - care for
dependent under age 6 or incapacitated person
Eligible person(s) excluded - exempt from work requirements - due to age
Eligible person(s) excluded - exempt from work requirements - employed
Eligible person(s) excluded - exempt from work requirements - participation
in drug addiction or alcohol treatment program
Eligible person(s) excluded - exempt from work requirements - physically or
mentally unfit
Eligible person(s) excluded - exempt from work requirements - received or
applied for unemployment compensation
Eligible person(s) excluded - exempt from work requirements - student
enrolled at least half time
Eligible person(s) excluded - exempt from work requirements - subject to
and in compliance with TANF work requirements

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¾ Element 163 - Voluntary Quit/Reduced Work Effort
Nature codes:
016 017 096 166 -

Head of household did not voluntarily quit
Voluntary quit of non-head of household
Policy incorrectly applied
Improper Sanction - entire household sanction for non-head of household
voluntarily quit
167 - Household member met good cause

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¾ Element 164 - Workfare and Comparable Workfare
Nature codes:
018 - Eligible person(s) disqualified
096 - Policy incorrectly applied
155 - Individual inappropriately sanctioned

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¾ Element 165 - Employment Status/Job Availability
Nature codes:
004 - Agency failed to follow up on known and reported impending changes
018 - Eligible person(s) disqualified
096 - Policy incorrectly applied

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¾ Element 166 - Acceptance of Employment
Nature codes:
003 - Agency failed to follow up on inconsistent or incomplete information
018 - Eligible person(s) disqualified
096 - Policy incorrectly applied

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¾ Element 170 - Social Security Number
Nature codes:
018 020 021 096 -

Eligible person(s) disqualified
Good cause for failure/refusal
Social Security Numbers provided
Policy incorrectly applied

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RESOURCES – (200)
Liquid Resources
¾ Element 211 - Bank Accounts or Cash on Hand
Nature codes:

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003 024 031 074 096 -

Agency failed to follow up on inconsistent or incomplete information
Resource should have been excluded
Incorrect limit applied
Improper denial - resource counted as income
Policy incorrectly applied

¾ Element 212 - Nonrecurring Lump-sum Payment
Nature codes:

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003 004 024 031 074 096 -

Agency failed to follow up on inconsistent or incomplete information
Agency failed to follow up on known and reported impending changes
Resource should have been excluded
Incorrect limit applied
Improper denial - resource counted as income
Policy incorrectly applied

¾ Element 213 - Other Liquid Assets
Nature codes:
003 004 024 031 074 096 -

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Agency failed to follow up on inconsistent or incomplete information
Agency failed to follow up on known and reported impending changes
Resource should have been excluded
Incorrect limit applied
Improper denial - resource counted as income
Policy incorrectly applied

Non-Liquid Resources
¾

Element 221 - Real Property
Nature codes:

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003 - Agency failed to follow up on inconsistent or incomplete information
004 - Agency failed to follow up on known and reported impending changes
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024 027 028 029 031 074 096 -

Resource should have been excluded
Used for self-employment
Fair market value incorrect
Equity value incorrect
Incorrect limit applied
Improper denial - resource counted as income
Policy incorrectly applied

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¾ Element 222 - Vehicles
Nature codes:
003 004 024 027 028 029 031 074 096 -

Agency failed to follow up on inconsistent or incomplete information
Agency failed to follow up on known and reported impending changes
Resource should have been excluded
Used for self-employment
Fair market value incorrect
Equity value incorrect
Incorrect limit applied
Improper denial - resource counted as income
Policy incorrectly applied

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¾ Element 224 - Other Non-Liquid Resources
Nature codes:
003 004 024 027 028 029 031 074 096 -

Agency failed to follow up on inconsistent or incomplete information
Agency failed to follow up on known and reported impending changes
Resource should have been excluded
Used for self-employment
Fair market value incorrect
Equity value incorrect
Incorrect limit applied
Improper denial - resource counted as income
Policy incorrectly applied

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¾ Element 225 - Combined Resources
Nature codes:
022 023 025 026 030 031 -

Did not transfer resources
Did not exceed limit
Incorrectly applied resources of non-citizen sponsor
Included resources of a non-household member
Does not exceed prescribed limit
Incorrect limit applied

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096 - Policy incorrectly applied
097 - Resource counted as income

INCOME (300)
Earned Income
¾ Element 311 - Wages and Salaries
Nature codes:

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003 004 032 033 034 035 036 037 038 039 041 042 046 096 168 169 170 -

Agency failed to follow up on inconsistent or incomplete information
Agency failed to follow up on known and reported impending changes
Failed to consider or incorrectly considered income of an ineligible member
Rounding used/not used or incorrectly applied
Income from known/processed source included that should not have been
Household unemployed
Conversion to monthly amount not used or incorrectly applied
Averaging not used or incorrectly applied
MRRB household not temporarily over the limit
Employment status changed from unemployed to employed
Change only in amount of earnings
Failed to consider/anticipate month with extra pay date
Failed to consider or incorrectly considered reported information
Policy incorrectly applied
Improper income calculation
Improper calculation - Income included holiday or overtime pay
Improper calculation - Income averaged incorrectly

¾ Element 312 - Self-Employment
Nature codes:

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003 004 032 033 034 035 036 037 038 039 041 042 -

Agency failed to follow up on inconsistent or incomplete information
Agency failed to follow up on known and reported impending changes
Failed to consider or incorrectly considered income of an ineligible member
Rounding used/not used or incorrectly applied
Income from known/processed source included that should not have been
Household unemployed
Conversion to monthly amount not used or incorrectly applied
Averaging not used or incorrectly applied
MRRB household not temporarily over the limit
Employment status changed from unemployed to employed
Change only in amount of earnings
Failed to consider/anticipate month with extra pay date

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046 096 168 170 171 -

Failed to consider or incorrectly considered reported information
Policy incorrectly applied
Improper income calculation
Improper calculation - Income averaged incorrectly
Income is Self-Employment income - not identified as Self-Employment

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¾ Element 313 - Other Earned Income
Nature codes:
003 004 032 033 034 035 036 037 038 039 041 046 096 -

Agency failed to follow up on inconsistent or incomplete information
Agency failed to follow up on known and reported impending changes
Failed to consider or incorrectly considered income of an ineligible member
Rounding used/not used or incorrectly applied
Income from known/processed source included that should not have been
Household unemployed
Conversion to monthly amount not used or incorrectly applied
Averaging not used or incorrectly applied
MRRB household not temporarily over the limit
Employment status changed from unemployed to employed
Change only in amount of earnings
Failed to consider or incorrectly considered reported information
Policy incorrectly applied

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Deductions
¾ Element 321 - Earned Income Deductions
Nature codes:
043 046 096 125 -

Deduction that should have been included was not
Failed to consider or incorrectly considered reported information
Policy incorrectly applied
Deduction applied to earnings after child support exclusion

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¾ Element 323 - Dependent Care Deduction
Nature codes:
043 - Deduction that should have been included was not
046 - Failed to consider or incorrectly considered reported information
096 - Policy incorrectly applied

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Unearned Income
¾ Element 331 - RSDI Benefits
Nature codes:

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003 004 034 046 096 -

Agency failed to follow up on inconsistent or incomplete information
Agency failed to follow up on known and reported impending changes
Income from known/processed source included that should not have been
Failed to consider or incorrectly considered reported information
Policy incorrectly applied

¾ Element 332 - Veterans Benefits
Nature codes:

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003 004 034 046 096 -

Agency failed to follow up on inconsistent or incomplete information
Agency failed to follow up on known and reported impending changes
Income from known/processed source included that should not have been
Failed to consider or incorrectly considered reported information
Policy incorrectly applied

¾ Element 333 - SSI and/or State SSI Supplement
Nature codes:

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003 004 034 046 096 -

Agency failed to follow up on inconsistent or incomplete information
Agency failed to follow up on known and reported impending changes
Income from known/processed source included that should not have been
Failed to consider or incorrectly considered reported information
Policy incorrectly applied

¾ Element 334 - Unemployment Compensation
Nature codes:

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003 004 034 046 096 -

Agency failed to follow up on inconsistent or incomplete information
Agency failed to follow up on known and reported impending changes
Income from known/processed source included that should not have been
Failed to consider or incorrectly considered reported information
Policy incorrectly applied

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¾ Element 335 - Worker's Compensation
Nature codes:
003 004 034 046 096 -

Agency failed to follow up on inconsistent or incomplete information
Agency failed to follow up on known and reported impending changes
Income from known/processed source included that should not have been
Failed to consider or incorrectly considered reported information
Policy incorrectly applied

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¾ Element 336 – Other Government Benefits
Nature codes:
003 004 034 046 096 -

Agency failed to follow up on inconsistent or incomplete information
Agency failed to follow up on known and reported impending changes
Income from known/processed source included that should not have been
Failed to consider or incorrectly considered reported information
Policy incorrectly applied

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¾ Element 342 – Contributions
Errors in Child Support Payments should not be recorded in this Element. See
Element 350.
Nature codes:
003 004 034 046 096 -

Agency failed to follow up on inconsistent or incomplete information
Agency failed to follow up on known and reported impending changes
Income from known/processed source included that should not have been
Failed to consider or incorrectly considered reported information
Policy incorrectly applied

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¾ Element 343 - Deemed Income
Nature codes:
003 004 034 046 096 -

Agency failed to follow up on inconsistent or incomplete information
Agency failed to follow up on known and reported impending changes
Income from known/processed source included that should not have been
Failed to consider or incorrectly considered reported information
Policy incorrectly applied

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¾ Element 344 - TANF, PA OR GA
Nature codes:

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003 004 034 046 096 -

Agency failed to follow up on inconsistent or incomplete information
Agency failed to follow up on known and reported impending changes
Income from known/processed source included that should not have been
Failed to consider or incorrectly considered reported information
Policy incorrectly applied

¾ Element 345 - Educational Grants/Scholarships/Loans
Nature codes:

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003 004 034 046096 -

Agency failed to follow up on inconsistent or incomplete information
Agency failed to follow up on known and reported impending changes
Income from known/processed source included that should not have been
Failed to consider or incorrectly considered reported information
Policy incorrectly applied

¾ Element 346 - Other Unearned Income
Nature codes:

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003 004 034 046 096 -

Agency failed to follow up on inconsistent or incomplete information
Agency failed to follow up on known and reported impending changes
Income from known/processed source included that should not have been
Failed to consider or incorrectly considered reported information
Policy incorrectly applied

¾ Element 350 - Child Support Payments Received from Absent
Parent
Nature codes:

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003 004 034 046 096 111 -

Agency failed to follow up on inconsistent or incomplete information
Agency failed to follow up on known and reported impending changes
Income from known/processed source included that should not have been
Failed to consider or incorrectly considered reported information
Policy incorrectly applied
Child support payments(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
170 - Improper calculation - Income averaged incorrectly
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Other Deductions
¾ Element 361 - Standard Deduction
Nature codes:
043 - Deduction that should have been included was not
096 - Policy incorrectly applied

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¾ Element 363 - Shelter Deduction
Nature codes:
043 047 051 053 096 -

Deduction that should have been included was not
Failed to consider or incorrectly considered Shelter deductions
Incorrect amount used resulting from a change in residence
Incorrectly prorated
Policy incorrectly applied

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¾ Element 364 - Standard Utility Allowance
Nature codes:
043 - Deduction that should have been included was not
048 - Failed to consider or incorrectly considered SUA deductions
050 - Incorrect standard used (Not as a result of a change in household size or
move)
051 - Incorrect amount used resulting from a change in residence
052 - Incorrect standard used resulting from a change in household size
053 - Incorrectly prorated
096 - Policy incorrectly applied

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¾ Element 365 - Medical Deductions
Nature codes:
043 - Deduction that should have been included was not
045 - Failed to consider or incorrectly considered Medical deductions
096 - Policy incorrectly applied

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¾ Element 366 - Child Support Payment Deduction (includes
Exclusions)
Nature codes:

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040 - Failed to consider or incorrectly considered Child Support deductions
(exclusions)
043 - Deduction (exclusion) that should have been included was not
096 - Policy incorrectly applied
111 - Child support payment(s) not considered or incorrectly applied for initial
month(s) of eligibility

¾ Element 371 - Combined Gross Income
Nature codes:

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030 - Does not exceed prescribed limit
031 - Incorrect limit applied
096 - Policy incorrectly applied

¾ Element 372 - Combined Net Income
Nature codes:

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030 - Does not exceed prescribed limit
031 - Incorrect limit applied
096 - Policy incorrectly applied

Other
¾ Element 412 - Budgeting System
Nature codes:

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063 064 065 096 101 -

Deductions excluded that should not have been
Household improperly participating under retrospective budgeting
Household improperly participating under prospective budgeting
Policy incorrectly applied
Simplified reporting household

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¾ Element 413 - Application
Nature codes:
059 066 073 076 077 078 079 081 082 096 117 -

Household expedited and should have received postponed verification
Improper denial within 30-day period for missing interview(s)
Improper denial - failed to screen for expedited service
Failed to provide expedited service to expedited eligible household
Failed to issue a required Notice of Missed Interview (NOMI)
Denial before the 30th day
Incorrect use of allotment tables
Late denial agency failed to process the application timely
Improper denial for missing interview when interview never scheduled
Policy incorrectly applied
Failed to process the reapplication timely (recertification application)

¾ Element 414 - Joint TANF/SNAP Processing and Reporting

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Nature codes:
067 - Improper termination/denial/suspension when TANF was terminated/
denied
068 - Benefits improperly terminated due to non-submission of monthly report
096 - Policy incorrectly applied

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¾ Element 415 - Verification
Nature codes:
003 - Agency failed to follow up on inconsistent or incomplete information
004 - Agency failed to follow up on known and reported impending changes
056 - Improper Denial/Termination -failure to provide - verification was received
or was in case file
069 - Improper denial prior to end of timeframe for providing verification
080 - No application or case record information to support
denial/termination/suspension
096 - Policy incorrectly applied
102 - Verification of income requested for a person not associated with current
application
103 - Verification of resources requested for a person not associated with current
application
105 - Verification was in case file
172 - Improper Denial/Termination - failure to provide - case should have been
processed without the deduction
173 - Improper Denial/Termination - failure to provide - categorically eligible
household with deemed eligibility elements
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174 - Improper Denial/Termination - failure
for contact
175 - Improper Denial/Termination - failure
was for another program
176 - Improper Denial/Termination - failure
of needed verification
177 - Improper Denial/Termination - failure
least 10 days to provide
178 - Improper Denial/Termination - failure

to provide - failed to send a request
to provide – verification requested
to provide - household never notified
to provide - household not given at
to provide - prior to the 30th day

¾ Element 416 - Action Type
Nature codes:

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070 - Improper denial or termination when the case should have been suspended
071 - Improper suspension when the case should have been denied or terminated
072 - Improper termination or suspension for failure to meet reporting
requirements
096 - Policy incorrectly applied

¾ Element 511 - Other
Nature codes:

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005 - Computer programming error
012 - Computer user error (improper use of system or unauthorized process or
work around)
013 - Data entry and/or coding error (includes selection of incorrect codes)
055 - Failure to provide verification for a period of time not associated with
current application
084 - Information reported by a bank or financial institution contact inaccurate
085 - Information reported by a collateral contact inaccurate
086 - Information reported by an employer contact inaccurate
087 - Information reported by a landlord contact inaccurate
095 - Other public assistance case was terminated / denied
096 - Policy incorrectly applied
099 - Other. This code is to be used in situations not covered by the other existing
element codes.

¾ Element 520 - Arithmetic Computation
Nature codes:

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061 - Benefit/allotment/eligibility incorrectly computed
062 - Incorrect use of allotment tables
096 - Policy incorrectly applied
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¾ Element 530 - Transitional Benefits
Nature codes:
075 - Eligible for transitional benefits
096 - Policy incorrectly applied

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¾ Element 540 - Notices
Nature codes:
049 089 090 091 092 093 094 096 -

Failed to send notice of action
Notice did not include date of intended action
Notice did not include rights of household
Notice not clearly understandable
Notice reason does not match reason for action
Notice was not complete
Notice was sent to wrong address
Policy incorrectly applied

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RESERVED
This section provides information for the evaluation of the action and case record.
This section will be completed for all cases by the State Agency.

ITEM Q. Accuracy 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.
1 - Accurate. Enter this code if the reviewer determined from information
in the case record that the reason given for the agency's action was
valid.
2 - Inaccurate. Enter this code if the reviewer determined from
information in the case record that the reason given for the agency's
action was invalid.

ITEM R.

Accuracy of Reason on Notice to Household - Enter the
appropriate code regarding the analysis of the reason on the notice to the
household.
01 - Accurate. Enter this code if the reviewer determined from all
information obtained from the State Agency that the reason on notice

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to the household for the agency's action is accurate. If no notice was
sent and was not required to be sent, use code 01.
02 - Inaccurate. Enter this code if the reviewer determined from all
information obtained from the State Agency that the reason on notice
to the household for the agency's action is not accurate. If no notice
was sent and was required to be sent, use code 02.

ITEM S.

Collateral and/or Household Contact – Enter the appropriate code
which reflects the decision of the reviewer to make a collateral and/or
household contact. The reason for contacting the collateral source or the
household (by telephone or a letter or in person) must be documented in
Section V – Narrative. The narrative must clearly address the element(s)
in question.
01 - No collateral or household contact was conducted.
02 - Telephone contact made to a collateral source - information in case
record regarding an element(s) was not clear and accurate.
03 – Telephone contact made to the household - information in case record
regarding an element(s) was not clear and accurate.
04 - Letter contact made to a collateral source - information in case
record regarding an element(s) was not clear and accurate. The
reason for using a letter must be documented on the FNS-245 Section
V and a copy of the letter included. The letter must clearly address
the element(s) in question.
05 – Letter contact made to the household - information in case record
regarding an element(s) was not clear and accurate. The reason for
using a letter must be documented on the FNS-245 Section V and a
copy of the letter included. The letter must clearly address the
element(s) in question.
06 - Face-to-face contact made to a collateral source - information in case
record regarding an element(s) was not clear and accurate.
07 – Face-to-face contact made to the household - information in case
record regarding an element(s) was not clear and accurate.

ITEM T.

Action Initiated By - Enter the appropriate two digit code to indicate
the initial event that prompted the action by the state agency. This
information will be used for administrative purposes and possibly to direct
corrective action.
01 - Reported information from the household
02 - Reported information from an automated source
03 - Reported information from other source
04 - Application for assistance submitted by the household
05 - Interim report completed by the household
06 - Interim report not submitted
07 - Failure to provide requested information from an application

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08 - Failure to provide requested information from an interim report
09 - Re-certification for assistance submitted by the household
10 - Failure to provide requested information from a re-certification
11 - Other

ITEM U. NSTR Reason - Enter the code that accurately reflects the reason this
action has been determined to be Not Subject To Review.
01 - Households that have withdrawn an application prior to the agency’s
determination.
02 - Households that at the time of sampling are under active investigation
for intentional program violation (IPV).
03 - Households that at the time of sampling are scheduled for an IPV
investigation sometime during the next five months.
04 - Households that at the time of sampling are pending an IPV hearing.
05 - Households that have their SNAP case closed when their assigned
certification period ends, i.e., the household is not recertified. The
certification period closure itself is NSTR. (If the household applied
for recertification and, for whatever reason, the recertification
application was denied, that denial is subject to review).
06 - Actions removed from the sample as a result of a correction for
oversampling.
07 - Households that have been sent a notice of pending status but were
not actually denied participation.
08 - Actions listed in error. This category of actions includes
administrative actions necessitated by a State agency’s certification
system and/or procedures, where there is no intent to deny or
terminate a household’s program benefits, only to correct an
administrative fault in the action.
09 - Households denied SNAP benefits under a disaster certification
authorized by FNS.
10 - Actions terminated or suspended for failure to file a complete
monthly report by the extended filing date, but reinstated when
subsequently filed the complete report before the end of the issuance
month, and received the full months’ SNAP benefits.
11 - Households that experience a break in participation due to computer
malfunction or error that is not the result of a deliberate action by
the State agency to terminate benefits. (Use of this code requires
prior approval from FNS)
12 - A suspended action after the initial month of a multi-month
suspension.

OPTIONAL (FOR STATE SYSTEMS ONLY)

There is one line of spaces available for the State to code information to capture
additional data as designated by the State.
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SECTION V EXPLANATION OF REVIEW FINDINGS
This section will be used to document the results of the review. The reviewer must
record information used to determine the validity of the action and, if necessary,
information on the status of the case as of the review date. The reviewer may
document a single element of eligibility or all elements, depending upon the
circumstances of each case. Documentation must be sufficient to support the
reviewer’s decision on the status of the case (both a valid and an invalid
determination) and the identification of any variances, if the action was found to be
invalid.
The narrative should contain a descriptive explanation of the circumstances from the
case record regarding why the action was initiated, what information the agency used
to arrive at the decision, what decision was made, and whether the notice that was
issued was specific, and clearly understandable. QC findings should summarize the
agreement or disagreement with the actions taken by the agency.
The narrative should answer these questions:
If no notice was sent, is it within the certification guidelines to not send a notice?
The narrative should answer these questions:
Did the action taken reflect what was known by the EW?
Did the EW make a mistake?
Did the notice reflect what the EW thought was happening?
Does the notice indicate what happened?
Is the notice clearly understandable and specific about what was happening?
If no notice was sent, is it within the certification guidelines to not send a notice?

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APPENDIX E
INTERVIEWING GUIDE FOR FOOD STAMP QUALITY
CONTROL
Interviewing plays a vital role in communication for the quality control
reviewer. Skillful interviewing is a means of obtaining accurate, reliable
information from food stamp recipients and collateral sources. While it is true
that a review obtains some information through correspondence, interviews
with recipients and collateral contact consume a considerable portion of the
reviewer’s time. Since interviews involve this much time, making effective use
of them to obtain accurate and reliable information is an important aspect of
the reviewer’s job.
Interviewing techniques presented here cannot of themselves make a QC
reviewer a skilled interviewer. Each person’s own personality and experience
has much to do with how the techniques learned are applied to the varied
interview situations. However, techniques can provide a basis of knowledge to
use in a variety of circumstances. This can help reduce anxiety and free the
reviewer to be more responsive to the interview situation.

The Nature of Interviewing
An interview differs from a conversation in that it has a clearly defined purpose
and is directed by the interviewer to fulfill objectives related to the purpose.
The QC reviewer will face a variety of interviewing situations with recipients,
businesses, banks, governmental agencies, or other professionals and neighbors
of the recipients. Interviews with the recipient are usually conducted in the
residence, but some may take place in offices or over the telephone.
Regardless of where or with whom, the purpose of an interview is fact-finding,
and there is a need for good rapport between the interviewer and the
recipient.

General Rules for Effective Interviews
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The reviewer must listen to the other person.

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The reviewer must create a feeling of trust and confidence with the
recipient. Fairness and honesty must exist.

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The recipient must be put at ease. Some “small talk” might help.
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The reason for the interview must be clear in the minds of both
persons.

•

Words and phrases used must have a common meaning for both
persons.

•

The reviewer must give undivided attention to the recipient. As far as
possible, there should be no interruptions from the telephone or any
other source.

Introducing One’s Self
The introductory statement lays the groundwork for what may be a successful
interview or one that only elicits “pat” answers. It may even result in a
complete turn-down. If the interview is to be successful, psychological
obstacles that may be present in the recipient’s mind must be removed, one by
one. Introducing oneself and establishing a good relationship with the recipient
requires an understanding of the typical questions that arise in the mind of a
person who comes to the door and finds someone before him who claims to be
a Government representative.
The reviewer’s first step is to introduce herself/himself and to explain the
reason for the visit. The fact the reviewer is a government representative is
important. Although introductions vary somewhat, tone commonly used is “My
name is _________. I am working for the Food Stamp Program, (State) Welfare
Department.” The term “Food Stamp Program” and State welfare department
are usually understood and serve to connect the reviewer with the
Government. “I am with” or “I am working for” help to establish the reviewer
as an ordinary working person with whom the recipient can talk.
The second step in the introductory process is for the reviewer to show her/his
identification card long enough for the person to read it. Often the recipient
will give it no more than a cursory glance, but the fact that this person has
shown an official identification will serve to allay suspicion and uncertainty.
The reviewer’s next step is to explain the purpose of the visit and to make the
recipient aware of the importance of the interview. This should be done
briefly without naming the specific topics to be covered. For example: “The
Food Stamp Program rules require a review of the households participating in
the program. Your help is necessary to meet this requirement. I’ll need some
basic information such as income and expenses.”

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Because the results of the review depend to a large extent on the spontaneity
of comment, it is usually necessary to leave the description in general terms.
The reviewer thereby avoids suggesting possible answers to questions that will
be asked. Next, the participant should be told how she/he happened to be
chosen for the interview. This may be done somewhat as follows: "In trying to
find out about households all over the State, we couldn’t talk to everyone, so
we had to select a few households to be representative of the total.”
The introduction should not be a “canned” speech recited in the same way
each time it is used. It should be natural, conversational, and intereststimulating. The most difficult part of a good introduction, as well as of
interviewing in general, is learning to gain the intuitive “hunches” about what
to say to any particular participant. In general, however, introductions should
contain the following elements:
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Identifying oneself with the Food Stamp Program.

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Showing the identification card.

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Explaining the purpose of the interview and its importance.

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Explaining how the particular household was chosen.

Creating Rapport
Inasmuch as the intensive type of interview seeks to attain a full and
spontaneous discussion, a very necessary element in every interviewing
situation is the personal relationship between the interviewer and the
recipient.
The impression made by the reviewer upon the recipient in the course of the
introduction will to a considerable degree determine the rapport, i.e., the
friendliness and trust, which will develop. The more natural the approach, the
better. Simplicity of dress, a level of language suitable to the occasion, and a
sincere interest in the work and in the recipient’s answers will gain acceptance
for the reviewer as a person to whom the recipient can respond on a basis of
common understanding.
Sometimes the reviewer may feel that the introductory process alone has not
established her/him firmly enough to proceed at once with the interview. The
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persons have an interest. Discussion of the weather, the latest baseball scores,
or the recipient’s garden, and making friends with the pet or children are some
of the things that may help to ease the situation. A good rule in building
rapport is to get the recipient started talking about things with which she/he is
familiar or interested in discussing.

Encouraging Discussion
To be successful, an interview requires management and direction in order to
attain the goals expected. In part, this involves taking steps to overcome
inertia whenever this occurs and other measures to achieve a two-way
communication process.
Take the initiative.
The reviewer can anticipate that some recipients are at first going to be
hesitant to discuss their household circumstances. The reviewer then
has to help the communication process get underway by initiating
discussion after appropriate introductory remarks and the initial
explanation of the interview process.
Provide support.
Let the recipient know that you want to know what she/he is talking
about. Encouragement, of course, comes from visual as well as oral
feedback from the listener. The reviewer can encourage the recipient
visually by having an expression of interest on her/his face, following the
discourse of the recipient, etc. Verbal encouragement is achieved
simply by making statements such as “I see”... “uh-huh”... “is that
so?”... “Yes, I understand, go on”... Brief, interjectory statements such
as these tend to encourage the speaker to say more. They indicate that
the interviewer is attentive and is attaching proper importance to what
the recipient is saying.
Don’t be afraid of silence.
Many people talk too much because they feel uncomfortable when
silence prevails. However, pauses need not be embarrassing or
awkward. Silence often draws people out. Pauses are also valuable
after a recipient has responded too briefly to a question. Such a pause is
often sufficient to convey the impression that the answer needs to be
amplified.

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Use neutral questions.
Neutral questions may be used to elicit fuller responses to questions.
“Why do you think that is so?” “I’d be interested in hearing your reason
for that,” or “Just how do you mean?”, are examples of the type of
questions that may be introduced in order to encourage the recipient to
explain why. It is best to avoid a blunt “Why?” since it tends to make
the recipient feel that she/he is being “put on the spot”.
Repeat the question.
Repeating the question is a useful device when the recipient seems
unable to make up her/his mind or strays from the topic.
Restate.
A technique to use to encourage discussion is to restate what the
recipient has just said. The reviewer can end with “Is that correct?”.
Restatement has two advantages: (a) The reviewer clearly establishes in
her/his own mind what the recipient has said, and (b) The recipient
feels some pressure to elaborate upon any parts of the answer which
she/he feels the reviewer doesn’t completely understand.
Summarize.
Summarizing what the recipient has just said is an especially useful
device for clarifying her/his attitudes and prompting her/him to enlarge
upon her/his statement. Summarizing all that has been said will help to
clarify information and overall understanding. It establishes a basis for
further discussion of problems that may have arisen. Like restatement,
the purpose of summarizing is to validate the correctness of the
information the reviewer has obtained.

Asking Questions
Since much of interviewing is based on the art of asking questions, the right
questions must be asked in order to obtain appropriate and complete
responses.

Formulating the Question.

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The question should be clear and specific as to the information desired.
It should not permit an ambiguous interpretation.
The wording of the question should be broad enough to allow a full
response. For example, it is best to avoid questions that permit a simple
yes or no response although there are times when such a response is
necessary. When the response is incomplete or evasive a follow-up
question is necessary. This can be achieved by rephrasing. Such
statements as “I am not clear on the point you made about...,” or “Will
you tell me more about...?”, should elicit a more precise response.
When there is uncertainty about the meaning of the response, a helpful
technique is to repeat the response to secure affirmation or denial. For
example, “Did I understand you to say that…is the situation?”
When the response is incomplete, superficial, or only hinted at, the
reviewer should probe for more detailed information. This may be done
by asking such questions as: “Why is that so?” “Can you tell me about
that?” or “It seems that you are saying.... Will you give me some details
about the situation?” “Then what?” “Is that so?” or “Tell me more.”
Avoiding Pitfalls.
Interviewing can involve some pitfalls related to techniques of asking
questions. Some of the traps to avoid are:
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When asking questions, the reviewer should not tip off the answers.
The reviewer should give the recipient the latitude to make a
response, e.g., do not say “You do not have any money in the bank,
do you?” Ask instead, “What bank(s) do you use?”

•

The reviewer should avoid entrapment, unless there is some specific
reason to suspect the recipient is being untruthful. Thus, the
reviewer should avoid asking, “In what bank do you have your
savings account?” unless circumstances point to the existence of a
previously unreported bank account.

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The reviewer should avoid remarks that can be construed as passing
judgment on the recipient or the recipient’s responses.

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Long, elaborate explanations by the recipient that add excessive
detail are unnecessary. The reviewer should tactfully interrupt the
person and go on to the next question.
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Listening
Another technique of interviewing is the art of listening. Effective listening
requires considerable practice and involves learning new skills.
The complexity of effective listening is evident when it is considered that the
reviewer is involved in a number of complicated operations occurring
simultaneously. The reviewer is actively receiving the recipient’s response
while at the same time coordinating it with information already received,
framing a follow-up question and trying to fulfill the overall plan for the
interview. In addition to listening and absorbing the response, listening
involves an evaluation of the response -- seeking to establish its’ meaning in
relation to what has already been established. The meaning is enhanced by
carefully noting the recipient’s tone of voice, the emphasis given, and the
inflections in the voice.

Non-Verbal Communication
A counterpart of and supplement to verbal communication in the interview is
non-verbal communication. This involves observations on both the reviewer
and recipient about one another during the course of the interview and relates
to such things as manner of dress, facial expressions, head-nodding, body
posture, hand gestures, eye movements, the seating arrangements, etc.
Non-verbal signs, if properly interpreted, may help one to understand better
the thoughts expressed. Yet, these signs alone cannot be taken at face value
as actually conveying the entire story or the implications we believe they
convey.
Non-verbal expressions may support or contradict the verbal message, e.g., the
recipient may verbally express agreement but show uncertainty or
disagreement by his facial expression. The significance of non-verbal
communication is that it supplements the verbal expression of the recipient,
particularly when there are language difficulties. It amplifies, underlines, and
at times, contradicts what is conveyed verbally.
With this caution in mind, the reviewer should be aware of her/his own
thoughts and feelings and body expressions lest the non-verbal signs
inadvertently convey false impressions to the recipient.

Note-Taking
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Beginning reviewers are frequently concerned about taking notes during the
interview. Taking notes can be a problem if it interferes with the flow of
communication distracting the reviewer from what the recipient is saying or
even distracting the recipient. However, the purpose of the quality control
interview is gathering specific factual information, and this provides a natural
basis for note-taking.
The reviewer is not expected to retain in her/his mind with a high degree of
accuracy information such as names, addresses, amounts of income and
deductions, dates, etc. In fact, the recipient might have more confidence
when he sees the reviewer writing down information. The reviewer who does
not write down such information might make the recipient wonder about
her/his sincerity and why she/he asked for the information in the first place. It
is a businesslike procedure to write down notes in the presence of the recipient
to maintain the accuracy of the recipient’s statements.
The recipient may also begin to wonder just what it is that the reviewer is
writing down. Therefore, it is desirable to explain to the recipient the need for
note-taking. The reviewer would explain that this is a way to ensure retention
of accurate information. This alerts the recipient to the note-taking process.
The general rule for note-taking is this: Do not become preoccupied to the
degree that continuous writing becomes distracting. Do not let note-taking
interfere with your attention to what the recipient is saying.

Closing the Interview
It is important to leave the recipient with a friendly feeling toward the
reviewer and toward the agency he represents. It is also important that any
questions or doubts about the interview expressed by the recipient should be
cleared up before the reviewer leaves. The recipient should have the feeling
that his/her time has been well spent. A few words of thanks will make the
recipient feel that her/his efforts have been appreciated.

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INDEX
Change reporting-$100 change
in earned income ... 2-4, 7-4,
10-15
Change reporting-status.2-5, 74, 10-25
Child support payment
deduction ................. 11-29
Child support payments from
absent parent ............ 10-11
Citizenship .................... 8-2
Collateral contact . 1-4, 4-7 1310
Comparable workfare ..... 8-26
Comparison I .................. 6-2
Comparison II ................. 6-2
Consolidation/movementhousehold.................. 8-12
Contract income ........... 10-27
Conversion .................. 10-2
Correct system ............... 2-1

A
ABAWDS ...................... 8-28
Acceptance of employment .. 823
Active case ................... 1-2
Age ............................. 8-1
Allimony payments ......... 10-7
Allotment amount ........... 2-7
Allotment test ............... 6-1
Annualized income ......... 10-1
Anticipated income ........ 10-1
AORD .......................... 1-2
Arbitration ................... 14-1
Arbitration procedures .... 14-5
Arbitration timeframes .... 14-3
Arbitration timeframes-late
transmission ............... 14-5
Averaged income ........... 10-2
B
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D

Bank accounts ................ 9-3
Beginning months ........... 7-25
Bias ............................ 1-8
Budget month ................ 1-2
Budgeting ..................... 2-3

Decision date-negative action
............................... D-5
Deductions disallowed at
cert/recert ................ 11-3
Deemed income ............ 10-9
Denial ........................ 13-2
Dependent care deduction 11-6
Disabled ..................... 8-32
Disaster cases ................. 3-6
Disqualification-recipient . 8-18
Dividends ................... 10-10
Documentation 1-4, 5-3, 13-11,
13-14
Drug convictions ............ 8-19
Duplicate participation .... 8-15

C

*

Case record ................... 1-3
Cash on hand ................. 9-3
Categorical eligibility .. 1-3, 7-3
Certification action ......... 1-4
Certification errors .......... 2-6
Change ........................ 1-4
Change reporting ............ 1-4

10-01-11 (Change 2)

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FNS HANDBOOK 310

Household-transfer/movement
of individuals.............. 8-15
Household-verification ...... 8-8

E

*

*
*

Earned income deduction . 11-5
Educational grants.......... 10-9
Educational income .......10-28
Educational loans ........... 10-9
Eligibility test ................ 6-1
Employment and training . 8-21
Employment status ......... 8-24
Error ........................... 1-4
Error determinant month... 1-5
Expedited service........... 7-29
Expired certification periods 729

I
IEVS ...................... 5-1, 10-4
Illegal non-citizens ........... 8-6
Income-in-kind .............. 10-9
Incomplete cases-negatives 136
Informal resolution......... 14-1
Information from a federal
source ...................... 7-29
Initial month .................. 1-5
INS .............................. 8-3
Institutions .................... 8-7
Interest ..................... 10-10
Interim change ............... 1-5
Interviewing ................... E-1
Interviewing-asking questionsE5
Interviewing-closing the
interview .................... E-8
Interviewing-creating rapport
................................ E-3
Interviewing-encouraging
discussion .................... E-4
Interviewing-general rules .. E-1
Interviewing-introducing one's
self ........................... E-2
Interviewing-listening ....... E-7
Interviewing-nonverbal
communication ............. E-7
Interviewing-note taking .... E-8
Issuance month ............... 1-5

F
*
*

Federal mass changes ...... 7-28
Federal written policy ..... 7-30
Field review .................. 2-1
Fleeing felons ............... 8-19
Fluctuating income ......... 10-2
FNS 245 instructions......... D-3
FNS 380 instructions........ B-18
FNS 380-1 instructions ...... C-5
Foster care payments .....10-10
H
Homeless shelter deduction 1114
Household composition ..... 8-7
Household Interview ........ 4-2
Household-categorically
eligible ...................... 8-8
Householdconsolidation/movement 8-12
Household-duplicate
participation .............. 8-15
Households-resolving
inconsistency .............. 8-11
Households-separated ..... 8-18
10-01-11 (Change 2)

J
Job availability ............. 8-24

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FNS HANDBOOK 310

Negative-NSTR .............. 13-3
Negative-reasons for action D-6
Negative-review date ...... 13-2
Negatives .................... 13-1
Negative-sample month .... D-4
Negative-suspension ....... 13-2
Negative-termination ...... 13-2
Negative-Transitional Benefits
............................. 13-10
New regulations ............ 7-30
Non-citizen .................... 8-3
Non-compliance with other
means-tested programs .. 2-8,
10-33
Non-liquid resources ......... 9-8
Nonrecurring lump-sum
payments .................... 9-5
NSTR-not subject to review
active cases ................. 3-5
NSTR-not subject to review
negative cases ............ 13-3

L
Likely conclusion ........... 4-14
Liquid resources ............. 9-4
Living arrangement.......... 8-7
M
*
*

Mass changes ................ 7-27
Medical deduction .........11-21
Missing reports .............. 7-28
Monthly reporting 1-5, 2-5, 7-8
Mortgage ..................... 11-9
Movement/consolidationhousehold .................. 8-12
Movement/transfer of
individuals ................. 8-15
N

*
*
*
*
*
*
*
*
*
*
*
*
*
*

Nature codes-actives ........ C-9
Nature codes-negatives ..... D-9
Negative action ............. 13-2
Negative Action Review ... 13-8
Negative case ................ 1-5
Negative definitions ........ 13-1
Negative-accuracy notice to
household .................. D-25
Negative-accuracy recorded
reason ...................... D-25
Negative-action type ........ D-5
Negative-action date. 13-1, D-4
Negative-collateral/household
contact ............ 13-10, D-26
Negative-decision date .... 13-1
Negative-finding ............. D-7
Negative-household notice . D-7
Negative-incomplete ....... 13-6
Negative-notices ............ 13-2
Negative-notice date ....... D-4
Negative-notice requirement
............................... D-5
10-01-11 (Change 2)

*
*
*
*
*
*
*

*

O
One hundred dollar change
reporting............ 7-4, 10-15
Overissuance .................. 1-6
P
PA and GA .......1-6, 7-27, 10-9
Pensions .................... 10-11
Processing month ............ 1-6
Property insurance ........ 11-10
Property taxes ............. 11-10
Prorated income............ 10-2
Prospective budgeting ....... 1-6
Prospective eligibility . 1-6, 7-2
Public assistance (PA) 1-6, 10-9

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FNS HANDBOOK 310

Retrospective eligibility .1-7, 72
Review date ............. 1-7, 2-9
RSDI-retirement survivors' and
disability insurance benefits
.............................. 10-6

Q
QC universe .................. 1-12
Quality control review ...... 1-6
Quarterly reporting 1-6, 2-5, 713
R

*

S

Real property ................ 9-6
Recertification ............... 1-6
Recipient disqualification . 8-18
Recording household
statements .................. 4-6
Reducing work effort ...... 8-25
Refined calculation of $ value
of variances ............... 12-7
Refusal and failure to
cooperate .................. 4-10
Regulatory changes......... 7-27
Rent .......................... 11-9
Rental income ..............10-11
Repairing a damaged home 1112
Residency ..................... 8-6
Residents of Institutions ... 8-12
Resources-accessible but not
owned by the household .. 9-3
Resources-categorical
eligibility .................... 9-1
Resources-exempt ........... 9-3
Resources-jointly owned with
nonhousehold members... 9-3
Resources-noncitizen sponsors
............................... 9-3
Resources-nonexempt ...... 9-3
Resources-nonhousehold
members .................... 9-3
Resources-transfer of ....... 9-2
Retrospective budgeting ... 1-6

10-01-11 (Change 2)

*

Sample month ................ 1-7
SAVE-systematic alien
verification for entitlements
.............................. 7-30
Scholarships ................. 10-9
School enrollment ............ 8-2
Self-employment ... 10-4, 10-26
Semi-annual reporting ....... 2-6
Semi-annual reporting-waiver
to act on all reported
changes ......................A-2
Shelter deduction .......... 11-9
Simplified Reporting ....... 7-13
Simple calculation of $ value
of variance ................ 12-6
Social security changes .... 7-28
Social security numbers ... 8-30
SSI-supplemental security
income ..................... 10-6
Stable income............... 10-2
Staffing standards ............ 1-8
Standard deduction ........ 11-8
Standard utility allowance .. 1115
Status reporting 1-7, 7-4, 10-25
Student status ................ 8-2
SUA-standard utility allowance
............................. 11-15
T
TANF ........................ 10-11

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FNS HANDBOOK 310

*

*

Time limited participation 8-28
Timeframes-disposing cases . 113
Timeliness of application
processing ................. C-41
Transfer/movement of
individuals ................. 8-15
Transitional benefits ...2-6,7-3,
7-21, 13-10
Transmission of Active Case 1211
Transmission of Negative Case
13-17

Variance ....................... 1-7
Vehicles ........................ 9-7
Vendor payments ........... 11-2
Verification ............. 1-8, 5-1
Voluntary quit .............. 8-25
W
Wages and salaries ......... 10-2
Work registration ........... 8-20
Work requirements ........ 8-20
Work-acceptance of
employment ............... 8-23
Work-employment and training
.............................. 8-21
Work-employment status/job
availability ................ 8-24
Worker's compensation .... 10-7
Workfare..................... 8-26
Work-time limited
participation .............. 8-28
Work-voluntary quit/reducing
work effort ................ 8-25
Work-workfare/comparable
workfare ................... 8-26

U
*

Underissuance ................ 1-7
Unearned income ..........10-14
Unreported Changes ........ 7-5
Union benefits .............10-11
Universe ....................... 1-7
Unoccupied home .........11-11
Utilities .....................11-13
V
Valid/invalid negative action ..
D-7

10-01-11 (Change 2)

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