1610 Determining Representative Income and Expenses | TANF

Georgia Division of Family and Children Services
TANF Policy Manual

Policy Title:

Determining Representative Income and Expenses

Effective Date:

January 2020

Chapter:

1600

Policy Number:

1610

Previous Policy Number(s):

MT 37

Updated or Reviewed in MT:

MT-52

Requirements

TANF budgeting uses a representative amount of income received and expenses incurred to determine the assistance unit’s (AU’s) eligibility and benefit amount.

Basic Considerations

Representative income and expenses are used to determine the monthly income and deductions for use in the budget.

Representative income is the amount that best represents what the AU has received or will receive on an ongoing basis.

Representative expenses are the amounts that best represent what the AU has incurred or will incur on an ongoing basis.

Representative Income and Expenses

Representative income is an average of income or expenses for a specific period.

When the amount of the income or expense is stable (i.e., does not change from one period to the next), then the amount of the countable income or the amount of allowable expenses for one full month preceding the application or review month are used to determine the representative amount.

When income or expenses vary for each period, then the representative income and expenses are calculated as follows:

The representative income or expense is based on available verification and information from the AU and from the source.
The representative income or expense may be an average of the last month’s income or expense, or it may be for a specific period considered to be most appropriate for determination of the representative income/expenses by the case manager. In some instances, more or less than one month’s income or expense is used if one month’s income or expense is either not available or is fluctuating.
Periods with little or no income received or little or no expenses incurred, or with temporary increases in income received or expenses incurred, are not used unless they are determined to be representative.

Representative income and expenses are calculated at the following times:

at the initial application
at a review
When there is a change in the AU’s income/expenses.

Conversion

Monthly income and expenses are determined by multiplying the representative amounts by the following conversion factors:

4.3333 (weekly)
2.1666 (bi-weekly)
2 (semi-monthly)
1 (monthly)

To calculate fluctuating semi-monthly income/expenses from a new source, determine the representative weekly amount based on the rate of pay and anticipate the number of hours weekly. Multiply the representative amount by 4.3333 to get the monthly income or expense. Divide the monthly income/expense by 2 to obtain the representative amount of pay/expense.

Document the case record.

Verification

The best estimate of income or expenses used in determining an AU’s benefit amount is based on verification of at least one full month’s stable income.

In some instances, one month’s income or expenses are not representative of the AU’s ongoing situation.

Refer to Chart 1610.1 - Minimum Verification Requirements to determine the estimate for the calculation of representative income/expenses for on-going case management.

If the AU does not have the minimum number of pay stubs for income verification because some are missing, the year-to-date figures are used if these are displayed on the other pay stubs. In order to use year-to-date figures, the AU must provide the paycheck stubs for the pay periods immediately prior to and immediately after the missing paycheck stub.

If, because of a new source of income, the AU cannot comply with the minimum verification requirements specified above, verification of all income received from the first receipt of the new income to the present must be obtained.

Refer to 1525-4, Income Sources of Verifications, for policy pertaining to acceptable verification sources.

Procedures

Follow the steps below to determine the AU’s monthly income and expenses:

Step 1	Determine the following: the type of income or expense the frequency with which the income is received, or the expense is incurred (weekly, bi-weekly, etc.)
Step 2	Verify income and/or expenses. Refer to Chart 1610.1 for verification requirements.
Step 3	Compute the representative income and/or expenses based on the information provided, the AU’s situation, and the worker’s judgment.
Step 4	Convert the representative amounts from Step 3 to determine the AU’s monthly gross income and/or expense.
Step 5	Document the following: the type and frequency of the income received and/or expenses incurred, the verification source, the amount of income and/or expenses used in determining the representative amounts, the reason for determining that the income received and/or the expenses incurred during a period are not representative, and the calculation of the representative amount.

Chart 1610.1 - Minimum Verification Requirements
FREQUENCY OF PAY OR EXPENSE	MINIMUM VERIFICATION REQUIRED
weekly, bi-weekly, or semi-monthly (stable income or expenses)	One month or 4 most current consecutive weeks of income or expenses
weekly, bi-weekly, or semi-monthly (fluctuating income or expenses)	One month or 4 most current consecutive weeks of income or expenses
Monthly	2 most current, consecutive months of income

Use the following methodologies to calculate monthly income:

Chart 1610.2 - How to Determine Monthly Income/Expenses
IF	THEN
the income is either stable or fluctuating and is received more often than monthly, i.e., weekly, bi-weekly or semi-monthly, OR the expenses are either stable or fluctuating and incurred more often than monthly	determine a representative amount of income received and/or expenses incurred for each date received/incurred in a calendar month. Compute past, present and anticipated income and/or expense that represent regular payments received and/or expenses incurred. Convert to a monthly amount by using the appropriate conversion factor. Document case notes. Explain what income and expenses were used, and why.
the income is received monthly or less often than monthly OR the expenses are incurred monthly or less often than monthly	do not automatically convert the income or expense. Determine the best estimate based on the following criteria: If stable, budget the actual income received or expense incurred in the month preceding the application or review month. If fluctuating, average the verified income received or expense incurred in the three months immediately preceding the application or review month. In some instances, use more or less than three months of income and/or expense if the income received or expense incurred in the three months immediately preceding the application or review month is not representative of the ongoing situation. Convert to a monthly amount when the income received, or the expense incurred by an AU is intended to cover a specified period of time. To obtain a monthly amount, divide the total income to be received or the total expense to be incurred during the life of the contract or agreement by the number of months specified in the contract or agreement. Document case notes. Explain what income and/or expenses were used, and why.
There is no change in the rate at which the AU has received income or incurred expenses AND the income will be received or expenses will be incurred during the month,	determine the representative income. Convert to a monthly amount using the appropriate conversion factors. Document case notes.
There has been a change in the rate at which the AU has received income or incurred expenses, AND The income will be received or expenses will be incurred during the month,	do not convert. Use the actual and/or representative income/expense. Use the actual income received and actual expenses incurred for the dates that have already occurred, AND the representative income/expense for future dates in the month. Document case notes.
There is new, interrupted, or terminated income AND the AU has/will receive less than a full month’s income, or incur less than full month’s expenses	do not convert. Use the actual and/or representative income/expense. Use the actual income received and actual expenses incurred for the dates that have already occurred, AND the representative income/expense for future dates in that month. Document case notes.

If an AU is receiving income or incurring expenses from more than one source, each source is treated separately in determining if the income/expense is converted to a monthly amount.

A full month’s income, if earned, is defined as receipt of or expected receipt of income at each regular pay date during a calendar month.

A full month’s income, if unearned, is defined as receipt of or expected receipt of income intended to cover an entire calendar month.

A full month’s expense is defined as an expense intended to cover an entire calendar month.

Chart 1610.3 - How to Determine Monthly Income Received from Specified Sources

THEN

child support income is received through the Office of Child Support Services (OCSS),

Determine the monthly amount of income using the last three months of child support income received, if representative.

Document case notes.

the AU reports a change after representative income has been determined,

use anticipated income to determine the best estimate for future month(s).

Refer to Chart 1610.2 in this section. Document case notes.

Payments posted on the last two days of the month in STARS system as being received in the next month.