Prorating Educational Income and Expenses
(12/01/13 – 01/31/14)
Prorate educational income and expenses as follows:
When the income and the expenses are for the same months, AZTECS completes the following:
Subtracts the total expenses from the total income
Prorates any remaining income over the months it is intended to cover
When the income and expenses are for different months, complete the following steps:
Divide each income by the number of months it is intended to cover.
Divide each expense by the number of months it is intended to cover.
Subtract the total monthly expenses from the total monthly incomes.
Prorate educational income including earned income, unearned income, or educational expenses that are intended to cover more than a month.
The period begins with the month containing the first day of the intended period, and extends through the month containing the last day of the intended period.
NOTE The period range limit in AZTECS is from 01 to 60.
Budget income beginning with the month in which the total, or the first payment is received or is expected to be received. Document the case file(g) with the reason for the date selected.
When the educational income is received after the period it was intended to cover, consider it a lump sum when received. (See Lump Sum – Liquid Assets)
When income is received after the beginning of the period it is intended to cover, but before the end of that period, complete the following steps:
Prorate the income over the period it is intended to cover.
Budget the income for the remaining months of that period.
Do not count the prorated amount from prior months.