Procedure: Budgeting Child, Medical, and Spousal Support
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This section provides information on how to budget Child, Spousal and Cash Medical support payments. Procedures for dealing with support income when completing an income budget are explained in this section.
Procedures
Before budgeting income, discuss with the participant the court ordered amount of support and the amount they normally receive. All recurring arrearages received are countable and must be budgeted.
Budget the support received in the last 30 calendar days as ongoing when it is expected to continue.
Budget all spousal maintenance payments received by a participant in the budgetary unit. Only budget court ordered child support payments as child support. Any amount of child support over the court order amount, unless the payment is for assigned arrearages, are budgeted as a gift. Support income displaying on CHSP is verified as court ordered.
When there are no arrearages, fees, or judgments owed and the amount of support income paid is over the court ordered amount, budget the amount that is over as a gift. Do not budget the amount over as a gift when the amount over is due to averaging. See Cash Gifts and Averaging Income for additional information.
To budget support income complete all of the following, when applicable:
●Discuss with the participant the amount of support that is court ordered and the amount that is normally received monthly. Ensure the participant explains the amount of support income expected and, when possible, have the participant write a statement.
●When the participant is not available, and a normal amount cannot be determined, attempt a collateral contact. Send a request for information when needed.
●When it is determined that the support income received in the prior 30 calendar days is an accurate reflection of support income expected to be received every month, budget that amount. Do not convert support income.
●When it is determined that the support income received in the prior 30 calendar days is not an accurate reflection of the support income expected each month, or the support income fluctuates from month to month, average the last 3 to 6 months and up to 12 months when necessary to identify a true reflection of support income normally received on a monthly basis. (For more information see Example 1 and Example 4.)
●When support income is received more often than monthly, determine an average monthly amount. Add the support payments received within each month together and divide by the number of months used in the income period. Include any zero months in the averaging determination when the zero months are normal and expected to continue. (For more information, see Averaging Income and Example 2.)
Child Support (CHSP)
The Division of Child Support Services (DCSS) is Arizona’s Title IV-D Child Support Enforcement agency. Support income issued through DCSS and displaying on CHSP in AZTECS is based on court ordered support and assigned arrearages. This income is considered verified. Spousal maintenance or alimony and child medical support may also display on CHSP.
CHSP displays support payments issued through DCSS. Support information is sent by DCSS to AZTECS through an overnight interface. The income displays on CHSP after the first month that NA benefits are issued when the absent parent was connected at any time to the AZTECS case, or the CA budgetary unit includes a BC child.
To budget a true reflection of support income normally received on a monthly basis, all of the following apply:
●When CHSP is available and the monthly amount displaying is an accurate reflection of the participant’s expected monthly support income, use the income reflected on CHSP.
●When the support income displayed on CHSP fluctuates, review the most recent prior 3 to 6 months available and average. It may be necessary to review up to 12 months of support income to determine an accurate amount to budget. Drop any unusually high or low payments when not expected to continue.
●When CHSP is not available, establish an accurate reflection of the support income expected to be received by completing one or more of the following:
Discuss with the participant what is normally received each month.
Review support income received in the prior 30 calendar days. When the prior 30 calendar days is an accurate reflection of support income expected to be received each month, budget that amount. Do not convert the support income.
When the prior 30 calendar days is not an accurate reflection of support income or the support income fluctuates, review additional months of support income history. It may be necessary to review up to 12 months of support history. Add the amount from each month together and divide by the number of months reviewed to determine an accurate amount to budget.
Ensure documentation supports the amount budgeted.
Support Income History
Support income history includes and is not limited to any of the following:
●Court records
●Pay records or histories from the Clerk of the Court in Arizona or another state
●DCSS documents showing the amount of support paid
●Copies of checks or money orders made out to the custodial parent indicating that the payment is for support
●Receipts and pay histories from any state’s support centralized payment processing center
NOTE When the court ordered amount or the amount received is different due to an additional recurring arrearage, budget the additional income as arrearages.
Document the case file(g) with how the amount of support income budgeted was determined.
Participants who receive support income on a regular basis may, at times, receive an extra support payment for reasons including and not limited to any of the following:
●A change in issue dates
●Weekends or holidays cause an interruption in issuing schedules
●The payment was not received in the month for which it was intended
Count the support income in the month for which it is intended rather than the month in which it is made available.
NOTE When the support income received in the application month is for a full month, the amount is known. For new applications, budget the known amount that is court ordered and is expected to be received for the application month. For ongoing months, use the last 30 calendar days, or more when necessary, to determine a true reflection of support income normally received monthly.
Recurring support arrearages are countable as unearned income and must be budgeted. When the arrearage payment is recurring and can be expected to continue, budget the income as arrearages using the appropriate Unearned Income Code in the INC TYP field on UNIC. (See Example 3)
Follow the same budgeting procedures when the participant does not surrender support payments assigned to DCSS.
For CA, when support income, received from any source, is assigned to and retained by DCSS, do not budget the support income during any of the following times:
●Beginning the month after the month CA is approved.
●While CA remains in open status.
When support income is received directly from a private collection agency, do not deduct fees retained by the collection agency. (For more information, see Direct Pay Support Income.)
A discrepancy may occur between CHSP and the participant's statement or the participant's verification. When this occurs, discuss with the participant the amount that is expected to be received. When the discrepancy cannot be explained or is questionable, elevate the case situation to the Policy Support Team (PST). (See Elevating Eligibility Questions (Policy Clarification or Field Inquiry) elevation process for more information.
DCSS has the authority to attach additional support arrearages. When the discrepancy is due to additional recurring child support arrearages added to the support order by DCSS, it is not necessary to elevate to the PST. Budget the arrearages that are recurring.
CHSP can be uploaded to OnBase or HEAplus only. Per FAA's Data Sharing Agreement (DSA) with DCSS, do not print CHSP to give to a participant. (For information on the release of information, see Release of Confidential Information)
See Child Support Payment information on-line for a listing of state websites that provide child support income information on-line.
AZTECS Keying Procedures
When support income is issued through DCSS it displays on CHSP as any of the following:
●Current Child Support (CS RE or BC RE)
●Current Alimony or Spousal Maintenance Support (SP RE)
●Current Cash Medical Support (CM RE)
●Support Arrearages (CS AR, CS LS, BC AR, BC LS, SP AR, SP LS, CM AR or CM LS)
NOTE AR displaying on CHSP indicates a support arrearage payment that is recurring. LS indicates a Lump Sum payment. A lump sum payment is considered a one-time lump sum and is not expected to continue. Lump sum payments are not countable as income. Lump sum payments are countable as a resource in the month received.
When the budgetary unit is receiving CA, budget support income for the child or children not included in the CA benefit. This includes support income passed through by DCSS, for children not included in the CA benefit, such as a family benefit cap (BC) child or a child receiving Supplemental Security Income (SSI). This income displays on CHSP as any of the following:
●BC RE
●BC AR
●BC LS
Key support payments next to the participant court ordered to receive the support payment. This is usually the custodial parent or person.
In AZTECS, all of the following applies:
●Key the actual income received using the MO frequency code when child support is not converted.
●Key the CS NS Unearned Income Code in the INC TYP field on UNIC when the participant does not surrender support payments assigned to DCSS.
●Key OF for child support income that is countable for NA only.
NOTE Key the OF code when budgeting child support income for Hopi Tribal TANF and Pascua Yaqui Tribal TANF.
●Key OX for child support income that is not countable for NA or CA.
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) The participant submits an application and is interviewed in March. The participant states she receives child support, however, CHSP is not available. The worker discusses the normal amount expected to be received with the participant.
The participant states child support is normally received monthly, and the amount varies from $436 to $490.00. She also explains that the child’s father gets bonuses twice a year and that twice a year she receives those high checks. The high checks are normally $620 to $640 each.
Review and average the amounts received in the last 6 or 12 months for an accurate reflection of an ongoing amount. Add the total amount from each month together and divide by the number of months reviewed to determine an accurate reflection of what is normal.
Ensure documentation supports the amount budgeted. The participant provides 12 months of support income. Add all of the following together, divide by 12 and budget the average amount expected to be received:
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Months
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Support Income
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February
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$436
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January
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$489
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December
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$490
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November
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$436
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October
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$640
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September
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$436
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August
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$620
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July
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$480
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June
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$490
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May
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$438
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April
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$436
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March
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$445
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Annual Income:
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$5,836
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Divided by 12:
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÷ 12
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Monthly Income:
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$486.33
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Complete all of the following:
●Key MO in the FREQ field on UNIC.
●Key $486.33 in the GROSS AMOUNT field on UNIC.
●Key the appropriate Unearned Income Code in the INC TYP field on UNIC.
2) The PI applies and is interviewed in April. The PI states child support is sporadic. Review the amounts received in the three prior calendar months. Add the support income amounts in the months’ income was received along with the zero income months. Divide the three-month support income total by the three months used in the budget.
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Months
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Support Income
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January 01/05
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$185
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February 02/20
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$0
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March 03/20
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$105
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Three-month total:
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$290
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Divided by three months:
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÷ 3
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Average monthly amount
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$96.66
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Complete all of the following:
●Key MO in the FREQ field on UNIC.
●Key $96.66 in the GROSS AMOUNT field on UNIC.
●Key the appropriate Unearned Income Code in the INC TYP field on UNIC.
3) Application month is April, and the participant is interviewed on April 15th. The participant states she receives child support arrearages, and the amount varies each month. A review of CHSP for the prior three months indicates the participant did not receive any support in January however, she received an arrearage payment of $200 in February and $400 in March. The participant states it is normal for her to have 0.00 arrearages in some months throughout the year. The worker reviews an additional 3 months of support income. CHSP shows that the participant received $300 in April and May, then in June she received $0.00. CHSP has verified that the $0.00 income months are normal.
Add the support arrearage income for the months that income is received along with the $0.00 amounts for the months no support was received. Divide the total arrearage income by the number of months being reviewed.
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Months
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Arrearage Income
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January
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$0
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February
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$200
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March
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$400
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April
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$300
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May
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$300
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June
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$0.00
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Six-month total:
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$1200
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Divided by six months:
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÷ 6
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Average monthly amount
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$200
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Complete all of the following:
●Key MO in the FREQ field on UNIC.
●Key $200.00 in the GROSS AMOUNT field on UNIC.
●Key the CS AR Income Type Code in the INC TYP field on UNIC.
4) The participant submits an application and is interviewed in July. The participant states she receives child support, however, CHSP is not available. The worker discusses the normal amount expected to be received with the participant.
The participant states child support is normally received monthly, and the amount varies from $200 to $300. She explains that the child's father was out of work in April, and he only worked a partial month in May. She states the child’s father is back to work now and the low months will not continue. The worker drops the unusually low months and averages the last 4 months of support income received.
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Months
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Arrearage Income
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January
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$210
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February
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$200
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March
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$275
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April
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$0
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May
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$50
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June
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$300
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Six-month total:
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$985
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Divided by four months:
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÷ 4
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Average monthly amount
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$246.25
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Complete all of the following:
●Key MO in the FREQ field on UNIC.
●Key $246.25 in the GROSS AMOUNT field on UNIC.
●Key the CS RE Income Type Code in the INC TYP field on UNIC.
last revised 05/13/2024