When to Effect Changes
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This section includes information about when to effect a change.
Policy
When a change goes into effect is based on the outcome of the change (benefits increase or decrease).
FAA reviews reported changes within 10 calendar days(g) to determine whether the change affects the budgetary unit’s eligibility or allotment.
When changes are reported separately, the changes are effected separately. When two or more changes occur and are reported at the same time, the net effect of all changes is determined. When adding or removing a participant, any changes involving that participant are considered one change.
When the net effect of multiple changes results in a benefit decrease or ineligibility and the date the change is reported does not allow for NOAA(g), the changes are treated individually as any of the following:
●Changes that result in a benefit increase effect benefits for the following month as follows:
For NA, benefits are increased with the first allotment issued ten calendar days after the date the change is reported. The benefits must be increased no later than the month after the month the change is reported.
For CA, benefits are increased for the first regular benefit issued after the date the change is reported.
●Changes that result in a benefit decrease effect benefits for the first month possible, allowing for NOAA.
NOTE When adding or removing a participant, everything connected (i.e. income and resources) to the participant is effected for the same month. (See Example 1)
For actions and time frames, which are different based on the outcome of the change, see any of the following:
NOTE Changes may be reported, or verification may exist in the case file past the current system month (CSM). These known changes should only be worked each month up to and including the CSM. Exceptions only apply to certain situations, see Rolling Past Current System Month Definition.
When FAA fails to act timely for the correct benefit month, any of the following may occur:
●An overpayment exists that the participant may need to repay
●Supplemental payments may be required
An overpayment exists when the participant fails to timely report a change that results in a benefit decrease or case closure.
Benefits Increase
Whether and when benefits are increased is determined by when the participant provides the verification.
To effect benefit increases, see any of the following:
Verification is Received Timely
Verification is received timely when any of the following occurs:
●Enough verification was provided with the change or is in the case file(g) to increase benefits
●Verification is provided by the notice due date, when requested
NOTE Changes may be reported, or verification may exist in the case file past the current system month (CSM). These known changes should only be worked each month up to and including the CSM. Exceptions only apply to certain situations, see Rolling Past Current System Month Definition.
When verification supports the increase in benefits, benefits are increased as follows:
●For NA, benefits are increased with the first allotment issued ten calendar days after the date the change is reported. The benefits must be increased no later than the month after the month the change is reported.
NOTE NA benefits have a staggered issuance date based on the case’s last name from the 1st to the 13th of the month. When the participant reports a change early in the month, the change may be effected in the current month when the participant’s last name is later in the alphabet. The participant may receive a supplement after normal issuance. (See Example 2)
●For CA, benefits are increased for the first regular benefit issued after the date the change is reported.
Required Verification is Not Provided by the Notice Due Date
When a reported change is not verified by the Information Needed notice due date, one of the following occurs:
●When continued eligibility cannot be determined with the verification in the case file(g) and any verification the participant provided, the benefits are stopped in the month that allows for NOAA(g).
●When continued eligibility is not in question, but the amount of benefits may be affected and cannot be determined, benefits are continued at the level prior to the reported change.
Required Verification is Received Before the Effective Date of Closure
When a reported change requiring verification is verified after the notice due date but prior to the effective date of closure, one or more of the following occur:
●When the case is closed, the case is reopened.
●The benefits are increased as follows:
For NA, the benefits are increased with the first allotment issued ten calendar days after the date the verification is received, but no later than the month after the month the verification is received.
For CA, the benefits are increased for the first regular benefit issued after the date the verification is received.
Required Verification is Received After the Effective Date of Closure
For NA, the benefits are increased with the first allotment issued ten calendar days after the date the verification is received, but no later than the month after the month the verification is received only when any of the following occur:
●Verification is provided on or before 30 calendar days after the effective date of closure.
●The case meets case reopening requirements. (For case reopening requirements, see NA Compliance After Closure.)
For NA, the participant must turn in a new application to reapply when one of the following occurs:
●Verification is provided more than 30 calendar days after the effective date of closure.
●Verification is provided on or before 30 calendar days after the effective date of closure but does not meet case reopening requirements. (For case reopening requirements, see NA Compliance After Closure.)
For CA, the participant must turn in a new application to reapply when the verification is received on or after the effective date of closure.
Benefit Decreases
FAA reviews the budgetary unit’s reporting requirements and the date of the change to determine whether a potential overpayment has occurred. See Reporting Changes for more information about reporting requirements.
For NA only, when enough information is provided with a reported change in income that causes ineligibility, FAA completes all of the following:
●Verifies the participant’s income using any of the following verification sources:
Hard copy verification when readily available.
Any electronic source that provides information regarding income of a participant.
Collateral contact when hard copy verification or electronic source is not available.
When all other verification sources are not available, attempt a collateral contact with the participant to confirm all necessary information needed to process the change and document the case file. When a collateral contact cannot be completed, use the best available information that was provided.
NOTE For NA only, when the reported change causes a closure due to excessive income, verification must be provided. For more information on NA closures due to a reported change of income, see Benefit Decreases or Closures due to a Reported Change.
●Budgets the participant’s verified income following policy guidelines. (See Income Budgeting (internal use only) for more information.)
●Documents the case file supporting the income budgeted.
When contact is made with the participant, FAA documents the participant’s confirmation that the income is correct.
When contact is made with the participant, FAA documents the participant’s confirmation that the income is correct.
For CA and all other changes, when enough information is provided with a reported change, FAA effects the decrease or stops benefits without additional verification. Verification is obtained at the next renewal or Mid Approval Contact.
When the participant did not provide enough information with a reported change to affect a decrease or stop benefits without further verification, the benefit month of the decrease is determined when the participant provides the verification.
To effect benefit decreases, see any of the following:
Verification is Received Timely
Verification is received timely when any of the following occurs:
●Enough verification was provided with the change or is in the case file(g) to decrease benefits
●Verification is provided by the notice due date, when requested
NOTE Changes may be reported, or verification may exist in the case file past the current system month (CSM). These known changes should only be worked each month up to and including the CSM. Exceptions only apply to certain situations, see Rolling Past Current System Month Definition.
When verification supports the decrease in benefits or the benefits to be stopped, benefits are decreased as follows:
●For NA, benefits are decreased or stopped with the first allotment issued after the date the change is reported, allowing for NOAA(g).
●For CA, benefits are decreased or stopped for the first regular benefit issued after the date the change is reported, allowing for NOAA.
NOTE When enough information to effect a decrease cannot be obtained and the participant has not provided necessary information by the information due date, the benefits are stopped for the month that allows for NOAA(g).
When benefits cannot be decreased or stopped due to being past NOAA, roll the benefits to the month following the current system month and decrease or stop benefits.
NOTE When determined benefits should be rolled more than one month past the current system month, supervisor approval is required.
Required Verification is Received Before the Effective Date of Closure
When a reported change requiring verification is verified after the notice due date but prior to the effective date of closure, one or more of the following occur:
●When the verification provided causes ineligibility, the case remains closed. No additional notices are sent.
●When the verification provided does not cause ineligibility, the case is reopened and benefits are decreased for the month identified in the original NOAA(g).
NOTE Additional notices explaining that the case has been reopened and how the verification has affected the case are sent. However, NOAA is not required because the case was previously closed allowing for NOAA.
Required Verification is Received After the Effective Date of Closure
For NA, the case is reopened, and benefits decreased for the month identified in the original NOAA(g) only when all of the following occur:
●Verification is provided on or before 30 calendar days after the effective date of closure.
●The case meets case reopening requirements. (For case reopening requirements, see NA Compliance After Closure.)
NOTE Additional notices explaining that the case has been reopened and how the verification has affected the case are sent. However, NOAA is not required when the case was previously closed allowing for NOAA.
For NA, the participant must turn in a new application to reapply when one of the following occurs:
●Verification is provided more than 30 calendar days after the effective date of closure
●Verification is provided on or before 30 calendar days after the effective date of closure but does not meet case reopening requirements. (For case reopening requirements, see NA Compliance After Closure.)
For CA, the participant must turn in a new application to reapply when the verification is received on or after the effective date of closure.
Unknown Effect to Benefits
When a change has an unknown effect to benefits, verification must be requested.
When verification is not provided, benefits are stopped allowing for NOAA(g), when required.
When verification is provided, see one of the following for actions and time frames based on the outcome of the change:
●Benefits Decrease
No Change in the Benefit Amount
A notice with a change report is sent to the participant when a change is reported from the participant, but the change makes no change in the benefit amount.
Procedures
FAA staff must take prompt action, within 10 calendar days(g), on all changes to determine whether the change affects the household’s eligibility or allotment. When enough information is provided to determine the budgetary unit’s benefit level decreases or becomes ineligible as a result of the change, FAA must issue NOAA(g) by the 10th calendar day after the date the change was reported. See Benefit Decrease for information about effecting decreases.
Verification Provided Untimely
Policy based on whether the change was a benefit increase or a benefit decrease identifies whether a case may be reopened when it has been closed because the participant did not provide verification.
When it has been determined the case may be reopened, complete all of the following:
●Determine the correct reopening reason
●Reopen the case and send the Resume Benefits - Information Provided (C502) notice to inform the participant that the case is reopened.
●Make the appropriate changes to the appropriate month as identified in one of the following policy sections:
●Send the benefit increase or benefit decrease notice
Notices
When a change is reported by the participant, a notice must always be sent to the participant to identify how their reported change affected their benefits.
Benefit Increase
Any of the following change notices are for benefit increases:
●For NA, one of the following:
Increase – NA Benefits (F702) notice
The NA Increase-(Non LP) NA E&T Comp (F721) notice for increases caused by meeting work program requirements
●For CA, the Increase – CA Benefits (A702) notice
Benefit Decrease
FAA staff must review the budgetary unit’s reporting requirements and the date the change occurred to determine whether a Potential Overpayment (OP) Referral (FAA-0526A) form is required to be sent to the Overpayment (OP) unit. See Overpayments – Overview for more information.
Any of the following change notices are for benefit decreases and must allow for NOAA(g), when required:
●For NA, one of the following:
Decrease – NA Benefits (F701) notice
The NA Decrease-(Non LP) NA E&T Non-Comp (F720) notice for decreases caused by meeting work program requirements
●For CA, the Decrease – CA Benefits (A701) notice
NOTE The last day to request NOAA is the same for all programs. See the appropriate AZTECS Monthly Production Schedule (AMPS) for the NOAA date.
No Change in Benefits
When a change reported by the participant results in no change in benefits, send the No Change on Reported Information (C705) notice to the participant. The C705 includes a new change report.
NOTE When the change was not reported by the participant, do not send the C705 notice.
When reopening a Case Due to Late Verification
When verification is received late and the case meets case reopening requirements, send the Resume Benefits - Information Provided (C502) notice to inform the participant that the case is reopened. (For case reopening requirements, see NA Compliance After Closure.)
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.
Determine what action is required. (See Verifying Reported Changes for more information).
The participant has the primary responsibility for providing verification. (See Participant Responsibilities – Providing Verification for additional policy).
Verification required is determined by the type of change reported.
AZTECS Keying Procedures
AZTECS keying procedures are determined by the type of change reported.
Examples
1) On July 28th, Mary reported at the same time that her hours were reduced (change 1) and that her son, James, moved into her home (change 2).
Mary’s reduction in income causes an increase to her NA benefits.
James is 20 years old, works 40 hours per week, and is a mandatory participant. He and all his income and resources must be added to his mother’s NA case as one change. James’ income makes the budgetary unit ineligible.
The net effect of both changes results in ineligibility, but it is too late to allow for NOAA. Therefore, all of the following occur:
●The increase due to the reduction in income is added for August.
●James (with his income and resources) is added to the case in September and the case is closed allowing for NOAA.
2) On May 1st, Mr. Victor reported that his hours have been reduced five hours per week. After requesting verification, Mr. Victor timely provided a letter from his manager on May 12th confirming the change. Since benefits are increased with the first allotment issued ten calendar days after the date the change is reported and Mr. Victor normally receives his NA benefits on the 11th of the month, the increase must affect Mr. Victor’s May benefits. A supplement is added for May.
Legal Authorities
7 CFR 273.12(a)
7 CFR 273.12(a)(1)(i)(A)
7 CFR 273.12(a)(1)(i)(B)
7 CFR 273.12(a)(1)(i)(C)
7 CFR 273.12(a)(1)(i)(C)(1 – 2)
7 CFR 273.12(a)(2)
7 CFR 273.12(a)(3)
AAC - R6-12-901
AAC - R6-12-902
AAC - R6-12-904
AAC - R6-12-905
AAC - R6-12-906
ARS - §46-211
AAC - R6-12-803
AZ State TANF Plan
last revised 12/04/2023