Adoption Subsidy Payments
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This section includes information about income received from adoption subsidy payments or other locally funded assistance payments.
Policy
Adoption subsidy payments are federally, state, or locally funded assistance payments provided to children with special needs.
For NA, adoption subsidy payments are countable as income.
For CA, adoption subsidy payments are not countable as income.
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 expenses are exceeding their income. (See Income Eligibility for more information about how FAA uses countable and not countable income.)
Adoption subsidy payments are intended to help a child whose special needs otherwise might hinder their adoption. Adoption subsidy payments vary depending on the special needs of the child.
Procedures
When unable to obtain proof from the sources listed in UNIN verification to verify receipt of State of Arizona Department of Child Safety (DCS) Adoption Subsidy payments, send a request via email. For the DCS contact person, see the DCS Verification Contact.
When the participant is present, have them sign the Authority to Release (FAA‑1765A) form to contact any companies or businesses involved. The FAA-1765A can be faxed or emailed to the participant's employer when it is not possible to use the Application for Benefits (FAA-0001A) or the HEAplus Authority to Release signed statement.
To determine the budget amount, see Budgeting Foster Care and Adoption or Guardian Subsidies.
Verification
System interface and the case file(g) must be reviewed before verification is requested. No additional verification is needed when AZTECS interface or HEAplus hubs have verified the information.
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 adoption subsidy payments include, and are not limited to, any of the following:
●Assistance payments records
●Agency or payer providing the income
●Court records or court orders
●DCSS documents or print outs
●Current check reflecting gross income
●Federal or state tax forms
●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).
AZTECS Keying Procedures
Key the AD Unearned Income Code in the INC TYPE field on UNIC next to the child for whom the payment is intended.
NOTE To determine the budget amount, see Budgeting Foster Care and Adoption or Guardian Subsidies and Example 1.
Document the case file(g) thoroughly to support keyed codes, amounts, and frequencies. See the AZTECS Data Entry Guide for instructions on keying the AZTECS income screens.
NOTE Documentation must support determinations of eligibility and benefit level. Document in sufficient detail to ensure that any reviewer can assess whether the determination is reasonable and accurate. Include specific information regarding the reason the income is determined to be normal. (See Budgeting Income Documentation Requirements for additional information.)
Examples
1) Adoption subsidy payments are considered income of the child for whom the payments are intended.
When the Adoption subsidy payments are calculated daily, the check amounts fluctuate monthly based on the number of days in each month. When the receipt of Adoption subsidy payments is normal and expected to continue, budget the income as follows:
●When the daily rate is the same, multiply the rate by 365 calendar days and divide by 12 to determine the monthly amount. Key the MO Income Frequency Code on UNIC.
●When the daily rate varies, budget all income received in the past 30 calendar days or longer. Key the appropriate Income Frequency Code on UNIC.
●When the Adoption subsidy payments received from the last 30 calendar days or longer does not represent the participant’s ongoing income, see Projecting Income.
Legal Authorities
AAC R6-12-503
7 CFR 273.9(c)(19)(iii)
last revised 10/02/2023