NA Eligibility and Benefit Determination
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This section identifies how NA eligibility and benefit amounts are determined.
Policy
See all of the following for policy regarding NA eligibility and benefit determination:
NA Eligibility Determination
An NA budgetary unit may be determined eligible based on nonfinancial criteria. When the budgetary unit has income, eligibility must then be determined based on the income. A budget is completed to determine gross and net income using all of the following:
●All countable income received or expected to be received in the month for which eligibility is being determined
●Expenses billed or expected to be billed in the month for which eligibility is being determined
A budgetary unit's gross and net income must be equal to or less than the appropriate income standards. (See Gross Monthly Income and Net Monthly Income Eligibility Standards)
A budgetary unit may only have to meet the appropriate net income standards depending on their circumstances. (See Elderly or Have a Disability - NA Special Considerations and Categorically Eligible Budgetary Units)
When the budgetary unit includes a disqualified participant, see Disqualified NA Participants Effect on the NA Benefit Amount.
The amount of NA benefits that a participant may receive is based on the U.S. Department of Agriculture (USDA) Thrifty Food Plan (TFP). The TFP is an estimate of what it costs to provide nutritious and inexpensive meals. For more information, see Thrifty Food Plan.
See all of the following for policy regarding NA benefit determination:
NA Income Deductions
NA budgetary units may be eligible to receive any of the following deductions from their countable income:
●A work-related expense deduction equal to 20% of its countable earned income when the budgetary unit has earned income.
●Farming self-employment loss deduction. (See Farming Income for more information.)
●NA standard deduction. (See NA Standard Deduction for the current deduction amount.)
●NA medical expenses deduction. (See NA Medical Expenses and Deduction for the current deduction amount.)
●Dependent care expense deduction. (See Dependent Care Expense for more information.)
●Child support deduction. (See NA Child Support Expense for more information.)
●Shelter deduction. (See Shelter Expenses and Deduction for more information.)
●Utility Allowance. (See NA Utility Expense and Allowances for more information.)
●Self-employment expense deduction. (See Self-Employment Expense Deduction for the current deduction amount.)
NA Gross Income Test
The gross income test is applied in both the eligibility and benefit determinations, based on 130% or 185% of the Federal Poverty Level (FPL).
Gross income is the total of all countable income received by the budgetary unit not including the farm self-employment loss.
The countable gross income is compared to the maximum income allowable by budgetary unit size, except for any of the following:
●Budgetary units containing elderly or disabled participants. Only the net income test applies to these budgetary units.
●Categorically eligible budgetary units. These budgetary units are not required to meet the gross or the net income tests.
NA Net Income Test
The net income test is applied in both the eligibility and benefit determinations. The net income calculation is determined systematically by completing all of the following:
●Determine the gross countable earned income of all participants.
●Subtract the 20% NA earned income deduction.
●Determine the countable monthly unearned income of participants in the budgetary unit and add it to the net earnings.
●Subtract any other allowable NA income deductions.
When the budgetary unit does not pass the net income test, the NA application is denied.
Proration of the First Month's Benefits
A budgetary unit applying in Arizona may have been approved in another state on a fiscal month basis. Benefits are prorated from one of the later of the two following dates:
●The date following the expiration date in the former state
●The date of the application
Benefits may be prorated for the first month, however eligibility is based on the budgetary unit's circumstances for the entire month. This is true except for budgetary units that are destitute. All of the following circumstances are considered:
●During the month of application, a budgetary unit is determined to be ineligible at the time of application, but subsequently eligible at the interview.
●A budgetary unit is determined to be eligible at the time of application, but ineligible at the interview later in the month of application.
●A budgetary unit may be determined eligible at the interview but expects to be ineligible for non- resource related purposes later in the month of application. Then the budgetary unit is ineligible for benefits in the month of application.
Prorated benefits of less than $10 are not issued to any budgetary unit. Federal regulations prohibit issuing benefits of less than $10 in the first month. For such cases, all of the following apply:
●When the prorated month is the only month of eligibility, and the prorated allotment is less than $10, deny the application. When the prorated month is more than $10, approve the first month and close ongoing.
●When the budgetary unit is eligible for more than one month, all of the following apply:
The approval period begins with the first month the budgetary unit is eligible. This is done even though the first month is not paid because the benefit amount is less than $10.
The budgetary unit is sent a decision notice explaining the approval period and that they will not receive benefits for the first month.
The application may be denied due to the fault of the budgetary unit in the first 30 calendar days. (See NA Delays in Processing) When the budgetary unit complies during the next 30 calendar day period, benefits are prorated considering all of the following:
●The denial may be due to the lack of an interview. Benefits are prorated from the later of one of the following dates:
The date the interview is completed
The first day of the second month
●The denial may be due to the budgetary unit's failure to provide verification. Benefits are prorated from the date the required verification is provided.
NA Aggregate Allotment
NA benefits for the first approval month are prorated from the date the application is turned in to the end of the application month.
The aggregate allotment is the total amount of benefits a budgetary unit is authorized to receive for the first two months.
An aggregate allotment is issued to budgetary units when all of the following occur:
●The budgetary unit applies for the first month's benefits after the 15th calendar day of the month
●They are determined eligible for the application month and the following month
The aggregate allotment includes the prorated month's allotment and the full benefit for the second month.
The aggregate allotment is issued to eligible budgetary units subject to NA proration in the first approval month. The second month's benefits are included in an aggregate allotment only after establishing ongoing eligibility for the second month.
The aggregate allotment is issued after the budgetary unit completes all of the following:
●The application process
●Provides all required verification (except postponed verification)
NOTE Expedites are entitled to aggregate allotments even when verification is postponed.
Determining the NA Benefit Amount
AZTECS determines the benefit amount based on the information keyed. AZTECS subtracts 30% of the NA net income from the Thrifty Food Plan amount for the appropriate budgetary unit size. The resulting amount is the budgetary unit's eligible benefit amount before recoupment or NA proration.
When the NA budgetary unit is eligible, AZTECS performs the allotment test.
When the NA benefit for an eligible one or two participant budgetary unit is less than the minimum NA allotment, the benefit must be rounded up to the minimum NA allotment.
When the NA benefit for an eligible three or more participant budgetary unit is less than the minimum NA allotment, the actual benefit amount must be paid.
When a budgetary unit is eligible for less than the minimum NA allotment, in an initial month due to proration, all of the following apply:
●The budgetary unit is in eligible no pay status when the benefit is less than $10.
●The actual benefit must be paid when the benefit is $10 or more. (See Proration of the First Month’s Benefits)
Income Eligibility Tests in the Eligibility Determination
The income eligibility tests are performed systematically and include the NA gross income test for regular NA budgetary units, and the NA net income test for both regular and special category budgetary units. (See Elderly or Have a Disability - NA Special Considerations, NA Gross Income Test and NA Net Income Test)
The final allotment test, which compares allotment income to the applicable Thrifty Food Plan amount is also completed systematically. See Thrifty Food Plan for information on how NA allotments are calculated.
All of the following tasks are performed to determine eligibility for the NA income tests:
●Determines whether the case is an expedited NA case
●Checks all other NA eligibility factors for the case before completing the benefit calculations
●Totals all countable income
●Accumulates all allowable NA expenses and deductions and applies these to the total income
●Compares the resulting calculation to all of the following program limits for the final determination:
NA gross monthly income eligibility standard
NA net monthly income eligibility standard
Thrifty Food Plan amount
●When the case passes the NA gross income test, and the NA net income test AZTECS performs the final allotment test
Procedures
The Nutrition Assistance Budget Worksheet (FAA-1077A) form found in the Document Center may be used to determine NA benefits when AZTECS is unable to make NA determinations.
FSAD Income Details
FSAD summarizes and displays all of the following:
●Countable income, based on the information keyed on UNIE, UNIN, EAIN, and SEEI
●Expense deductions, based on the information keyed on EXNS
●NA eligibility
●Benefit calculations and allotment amounts
For more information, see AZTECS Keying Procedures and all of the following:
Proration of the First Month’s Benefits Procedures
A budgetary unit may be ineligible the first month, but a change in circumstances for the second or third month becomes known before the determination is completed. Establish eligibility for the second or third month.
Proration of first month's benefits does not apply to migrant or seasonal farm workers when less than 30 calendar days have elapsed since their last approval period ended.
Use one application for all months and send one decision notice. The Approve Elig Month-Deny Inelig Month (F124) notice advises the budgetary unit of the first month's ineligibility and the second or third month's eligibility.
Do not issue an aggregate allotment when the budgetary unit is ineligible to receive benefits in either the first approval month or the following month.
A budgetary unit may be eligible for the month of application, but ineligible for a future month. Approve the budgetary unit for only the eligible month.
Consider all of the following when a budgetary unit is approved for NA participation following any break in benefits:
●Prorate benefits when a budgetary unit reapplies in the month following the end of the approval period. The approval period may end for any of the following reasons:
Expiration of approval period
Closure of the case
Withdrawal from NA benefits
●Prorate benefits when a budgetary unit reapplies after any break in benefits
●Do not prorate the initial month's benefits when all of the following apply:
NA Notice of Expiration (NOE) was not issued during the prior approval period.
The budgetary unit is reapplying for NA in the month following the month that the approval period ended.
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.)
AZTECS Keying Procedures
NA Voluntary Withdrawal (VW)
VW Written Request
When a budgetary unit provides a written request for withdrawal, stop benefits the first month possible. No notice is required. Before stopping benefits, explore the reason the withdrawal has been requested and use the most appropriate Denial Closure Reason Code. For instance, when the budgetary unit is moving out of state the case can be denied for Residency using the RS Denial Closure Reason Code.
When no other reason for the denial or closure can be determined, key the VW Denial Closure Reason Code in the DENIAL CLOSURE REASON field on FSED when the budgetary unit wants to withdraw.
VW Verbal Request
When a budgetary unit verbally requests to withdraw their application for benefits or to stop benefits, the reason for the request must be explored and documented in the case file(g).
When the reason for the request is due to the budgetary unit moving out of Arizona, complete all of the following:
●Ask for and document the date the budgetary unit moved or is moving out of Arizona
When the reason for the request is due to a change of household size, or income, complete all of the following:
●Advise the participant that a change in household or income may not result in ineligibility for benefits
●Offer to report the information as a change to redetermine eligibility
●When the participant agrees, process the Report a Change (RAC) in Health-e-Arizona Plus (HEAplus)
●Inform the participant they will receive a decision notice
When the budgetary unit continues to request a withdrawal of benefits, complete all of the following:
●Key the VW Denial Closure Reason Code in the DENIAL CLOSURE REASON field on FSED when unable to determine the reason for the request, and the budgetary unit wants to withdraw.
●Deny the application or stop benefits the first month possible allowing for Adequate Notice.
●Send the Voluntary Withdrawal (C201) notice to confirm a closure request for voluntary withdrawal.
The budgetary unit retains their right to request an appeal. However, do not continue benefits pending the outcome of the hearing when benefits are stopped using the VW Denial Closure Reason Code.
Food Stamp Eligibility Determination (FSED)
Use FSED in all of the following situations:
●To key an Untimely Reason Code when the determination is completed untimely.
●To change the status of the NA case when a budgetary unit is ineligible.
●To deny or close NA for reasons other than income, such as NA voluntary withdrawal.
When CA is stopped on an NA and CA combination case, remove CA income on UNIN before keying through FSED.
Key Y in the AUTHORIZE field to authorize the NA denial or closure as a result of ineligibility. This prevents accidental denials or closures.
AZTECS displays one of the following messages at the bottom of FSED to indicate the status of the case:
●PASS
●FAIL
●ELIGIBILITY UNKNOWN - ALL ELIGIBILITY REQUIREMENTS NOT COMPLETED
NA Eligibility Determination Procedures
When some eligibility factors are not yet determined, pass through the corresponding screens to resolve the undetermined criteria. For the eligibility factors displayed on FSED, see Eligibility Factors Tables.
NA Ineligibility Date
When closing an open NA case, the date of ineligibility is the first day of the month and year in which the case or participant becomes prospectively ineligible. This is true except when ineligibility results from one of the following:
●When the budgetary unit moves out of state, the ineligible date is the date of the actual move.
●When ineligibility is due to death, the ineligible date is the actual date of death.
The ineligibility date may be earlier than the actual benefit closure date.
NA First Month’s Eligibility
When FSAD indicates the budgetary unit is not eligible in the month of application but is eligible in the following month, complete all of the following:
●Screen print FSAD for the ineligible month, upload the document to OnBase, and document CADO with the reason for ineligibility.
●Press F9 from FSAD.
●On APMA, change the benefit prorate date to the first calendar day of the second month in the BEN PRORATION DATE field.
●Process through the application entry sequence.
●Authorize benefits on FSAD.
●Copy Details and process each month through the current system month.
Use FSAD to complete all of the following:
●Authorize NA benefits for each month.
●Assign an approval period (completed by AZTECS).
●Key the EI Denial Closure Reason Code in the DEN/CLOSE REAS field on FSAD when NA benefits are stopped or denied for excessive income.
●Key the NA date of ineligibility.
●Key an Untimely Reason Code when the NA determination is completed after the processing deadline and one of the following applies:
NA benefits are approved.
NA benefits are denied or stopped using the EI Denial Closure Reason Code.
FSAD Income Details Procedures
To review income or expense details that are summarized on FSAD, Tab the cursor to the selected field, key X, and press ENTER. AZTECS displays the applicable income or expense screen.
FSAD Status Change
After processing FSAD, AZTECS sets the case status to one of the following:
●DENIED when the case is ineligible for the first approval month's benefits and the following month
●OPEN when the case is eligible, and benefits are authorized
FSAD Special Processing
Upon completion of the benefit determination, AZTECS completes all of the following:
●Deauthorizes any benefits not issued, unless the PCN is keyed
●Updates the benefit records when new benefits are authorized, or overpayments or underpayments are recognized. When the case is ineligible, AZTECS deletes any benefits previously created but not issued.
●Establishes the applicable notice on NORE that must be sent.
Legal Authorities
7 CFR 273.10
7 CFR 273.10(e)(4)(i)
7 CFR 273.10(e)(4)
7 CFR 273.10(e)(4)(ii)
last revised 12/27/2022