Diverted Funds
Information on this page refers to the Nutrition Assistance program Information on this page refers to the Cash Assistance program
This section includes information about income derived from diverted funds.
Diverted funds are monies that are diverted by the provider of a payment to a third party.
These funds are considered unearned income and may be countable or not countable depending on the source of the funds being diverted.
Countable income is used to determine an income budget. (See Income Budgeting to see how FAA determines the income budget.) FAA needs to know about income that is both countable and not countable to determine whether a budgetary unit’s income is exceeding their expenses. (See Income Eligibility for more information about how FAA uses countable and not countable income.)
The participant has the primary responsibility for providing verification. (See Participant Responsibilities – Providing Verification for additional policy.)
For NA, all of the following income is required to be verified before eligibility is determined:
Reported on a new application, during the interview of a new application, or changes reported before the eligibility determination of a new application.
Changes after an eligibility determination of a new application (e.g., a renewal application, mid approval contact, etc.) and any of the following apply:
The source of the income has changed.
The income is questionable(g) or unclear(g).
The reported income amount has changed by $51 or more.
The previous verification in the case file is more than 59 calendar days old.
For CA, all income is required to be verified before determining eligibility.
Examples of verification that can be used for Unearned Income include, and are not limited to, any of the following:
Assistance payments records
AZTECS INTERFACE INQUIRY MENU (ININ) for verification of SSA or SSI income
Benefit award letters from SSA, Statement of Earnings VA, and other agencies
Bank records
Court records or court orders
DCSS documents or print outs
Divorce or separation papers or contact with the Clerk of the Court
Current check reflecting gross income (Do not copy federal government checks)
Federal or state tax forms
Household System Check (HOSC) information
Insurance policies
Mortgages and Sales Contracts
Statement from the agency or payer providing the income
State Data Exchange (SDX) microfiche
Unemployment Insurance records
Absent Parent
Participant Statement verification when one of the following occur:
Obtaining documented or collateral contact verification may cause harm or undue hardship(g) for the participant.
When all of the following occur:
Other attempts to obtain the verification have failed. This includes documented and collateral contact verification.
The participant has requested assistance from FAA.
The worker has evaluated the request for assistance and cannot obtain the verification from another acceptable source.
The participant statement is not questionable(g).
Legal Authorities
last revised 10/02/2023