United States 

Department of 

Agriculture

Food and 

Nutrition 

Service

Alexandria, VA

FNS Handbook 310

October 2003

Food Stamp 

Program

Quality

Control

Review

Handbook
FNS HANDBOOK 310 

Table of Contents 

Chapter 1 Introduction 

100 General ......................................................................1-1 

110 Purpose ......................................................................1-1 

120 Objectives ...................................................................1-1 

130 Definitions ...................................................................1-2 

 Active case ..................................................................1-2 

 AORD .........................................................................1-2 

 Budget month ...............................................................1-2 

 Case record..................................................................1-3 

 Categorical eligibility......................................................1-3 

 Certification action ........................................................1-4 

 Change .......................................................................1-4 

 Change reporting ...........................................................1-4 

 Collateral Contact..........................................................1-4 

 Documentation..............................................................1-4 

 Error ..........................................................................1-4 

 Error Determinant Month..................................................1-5 

 Initial Month.................................................................1-5 

 Interim Change .............................................................1-5 

 Issuance month .............................................................1-5 

 Monthly reporting ..........................................................1-5 

 Negative case ...............................................................1-5 

 Overissuance ................................................................1-5 

 Processing month...........................................................1-5 

 Prospective budgeting .....................................................1-6 

 Prospective eligibility......................................................1-6 

 Public assistance (PA) .....................................................1-6 

 Quality control review.....................................................1-6 

 Quarterly reporting ........................................................1-6 

 Recertification ..............................................................1-6 

 Retrospective budgeting ..................................................1-6 

 Retrospective eligibility ...................................................1-7 

 Review date .................................................................1-7 

 Sample month...............................................................1-7 

 Semiannual reporting ......................................................1-7 

 Status reporting ............................................................1-7 

 Underissuance...............................................................1-7 

 Universe......................................................................1-7 

 Variance......................................................................1-7 

 Verification..................................................................1-8 

140 Handbook Modification ....................................................1-8 

150 Administration of the QC System ........................................1-8 

 151 Implementation of QC Indexed Policy Memoranda..............1-8 

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FNS HANDBOOK 310 

 152 Contracted Activity ..................................................1-8 

 153 Staffing Standards ....................................................1-8 

 154 Avoiding Bias ..........................................................1-8 

160 QC Universe .................................................................1-9 

170 Error Analysis ............................................................. 1-10 

180 Forms and Reporting..................................................... 1-10 

 181 Active Cases.......................................................... 1-10 

 181.1 Form FNS-380 ................................................ 1-10 

 181.2 Form FNS-380-1 ............................................. 1-10 

182 Negative Cases............................................................ 1-11 

190 Disposition Timeframes ................................................. 1-11 

Chapter 2 Basic Review Process

200 General ......................................................................2-1 

210 Review Steps ................................................................2-1 

 211 Determine the Correct Systems ....................................2-1 

 212 Review the Certification Record ...................................2-1 

 213 Conduct a Field Review .............................................2-1 

 214 Determine Which Variances to Include ...........................2-1 

 215 Determine the Correct Amount of Benefits ......................2-2 

 216 Determine the Cause of Errors .....................................2-2 

 217 Report..................................................................2-2 

220 Certification and Reporting Systems ....................................2-2 

 221 Eligibility...............................................................2-2 

 222 Budgeting ..............................................................2-3 

 222.1 Prospective....................................................2-3 

 222.2 Retrospective .................................................2-3 

 223 Reporting ..............................................................2-4 

223.1 Change Reporting/Prospectively Budgeted ($100 Change 

 in Earned Income Reporting) ..............................2-4 

 223.2 Change Reporting/Prospectively Budgeted (With Status 

 Reporting) ....................................................2-5 

 223.3 Monthly Reporting............................................2-5 

 223.4 Quarterly Reporting ..........................................2-5 

 223.5 Semi-Annual Reporting .......................................2-6 

 223.6 Transitional Benefits .........................................2-6 

230 QC Review Focus ...........................................................2-6 

 231 Certification Errors ..................................................2-6 

 232 Allotment Amount...................................................2-7 

 232.1 Actions to ignore............................................2-7 

 232.2 Non-Compliance with Other Means-Tested Programs.2-8 

233 Review Date..................................................................2-9 

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FNS HANDBOOK 310 

Chapter 3 Case Record Review

300 General ......................................................................3-1 

310 Purpose of Case Record Reviews ........................................3-1 

320 Procedures for Case Record Reviews ...................................3-1 

 321 Household Issuance Record .........................................3-1 

 321.1 On-line EBT....................................................3-1 

 321.2 Smart-Card EBT...............................................3-2 

 322 Certification Case Record(s)........................................3-2 

 322.1 Household Circumstances and Certification Actions ...3-2 

 322.2 Documented Verification ...................................3-2 

 323 Completion of Form FNS-380 .......................................3-2 

 323.1 Face Sheet.....................................................3-2 

 323.2 Column 2 of the Worksheet.................................3-3 

 323.3 Computation Sheet...........................................3-5 

 324 Ineligible Households ................................................3-5 

330 Cases Not Subject to Review .............................................3-5 

 331 Oversampling..........................................................3-5 

 332 Cases Listed in Error .................................................3-5 

 333 Disaster Cases .........................................................3-6 

 334 Cases Pending a Hearing ............................................3-6 

 335 Intentional Program Violation Cases ..............................3-6 

 336 All Household Members Have Died.................................3-7 

 337 Household Moved Out of State .....................................3-7 

 338 Unable to Interview..................................................3-7 

Chapter 4 Field Reviews

400 General ......................................................................4-1 

410 Purpose ......................................................................4-1 

 411 Alaska Cases............................................................4-1 

 412 Limitations on Information Sought .................................4-1 

 413 Completion of Form FNS-380, Column 3 of the Worksheet ......4-2 

 414 Planning the Field Review ............................................4-2 

 415 Arranging for Verification.............................................4-2 

420 Household Interview .......................................................4-2 

 421 Arranging Household Interview ......................................4-3 

 422 Individuals Who Can Be Interviewed ................................4-3 

 423 Location of Interview..................................................4-4 

 424 Conducting the Interview.............................................4-5 

 424.1 Opening the Interview ........................................4-5 

 424.2 Dealing With Household Fears During the Interview .....4-5 

 424.3 Observation During the Interview ...........................4-5 

 424.4 Establishing Household Composition........................4-5 

 424.5 Reviewer Inquiries .............................................4-6 

 424.6 Recording Household Statements ...........................4-6 

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 424.7 Verification .....................................................4-6 

430 Collateral Contacts ........................................................4-7 

 431 Obtaining Information From Collateral Contacts .................4-7 

 432 Collateral Contact Refusal To Cooperate ..........................4-8 

 433 Documentary Verification ............................................4-8 

440 Completion of Field Reviews .............................................4-8 

 441 Cases Determined Ineligible..........................................4-8 

 442 Incomplete Case........................................................4-8 

 442.1 Case Record or Household Cannot Be Found ..............4-9 

 442.2 Household Refusal and Failure To Cooperate ........... 4-10 

 442.3 Likely Conclusion ............................................ 4-14 

 442.4 Late Reviews.................................................. 4-15 

Chapter 5 Verification and Documentation

500 General ......................................................................5-1 

510 Verification..................................................................5-1 

 511 Sources of Verification ..............................................5-1 

 512 Use of the Income and Eligibility Verification System (IEVS) 

 Data.....................................................................5-1 

 513 Evaluating Evidence..................................................5-2 

 514 Positive and Negative Allegations .................................5-3 

 515 Guidance for Particular Elements .................................5-3 

520 Documentation .............................................................5-3 

 521 Documentation With Attachments.................................5-4 

 522 Documentation by Recording a Document .......................5-4 

523 Documentation of Verbal Statement by a Collateral 

 Contact.................................................................5-5 

 524 Verification and Documentation of Negative Allegations ......5-5 

525 Verification and Documentation in Automated Certification 

 Systems ................................................................5-6 

Chapter 6 Error Determination Process

600 Purpose ......................................................................6-1 

610 The Eligibility Test.........................................................6-1 

620 The Allotment Test ........................................................6-1 

 621 Comparison I ..........................................................6-2 

 622 Comparison II..........................................................6-2 

Chapter 7 Review Procedures Relative 

to Certification Systems and Changes

700 General ......................................................................7-1 

710 Verification Time Periods .................................................7-2 

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FNS HANDBOOK 310 

 711 Prospective Systems .................................................7-2 

 711.1 Eligibility ......................................................7-2 

 711.2 Benefit Level..................................................7-2 

 712 Retrospective Systems...............................................7-2 

 712.1 Eligibility ......................................................7-2 

 712.2 Benefits........................................................7-2 

 712.3 New Members After the Budget Month ...................7-2 

713 Exceptions .............................................................7-3 

713.1 Prorated Income and Averaged and Prorated 

 Deductions .....................................................7-3 

713.2 Variances......................................................7-3 

713.3 Categorical Eligibility .......................................7-3 

713.4 Transitional Benefits ........................................7-3 

720 Review Procedures Relative to Reporting Requirements ............7-3 

 721 Changes Relative to Appropriate Month ..........................7-4 

722 Change Reporting – 

 $100 Change in Earned Income/Status Reporting ...............7-4 

722.1 Changes Prior to the Notice of Eligibility for Initial 

 Certifications .................................................7-5 

722.2 Unreported Changes.........................................7-5 

722.3 Reported Changes ...........................................7-6 

722.4 New Members.................................................7-7 

722.5 Incorrect Action..............................................7-8 

722.6 Notices of Expiration ........................................7-8 

 723 Monthly Reporting ....................................................7-8 

723.1 One-Month System Where the Element Was Subject 

to Monthly Reporting7-8 

723.2 Two-Month System Where the Element Was Subject 

 to Monthly Reporting ...................................... 7-10 

 724 Reviewing Prospectively Budgeted Elements/Sources in 

 an Otherwise Retrospectively Budgeted Case................. 7-11 

724.1 Adding New Members Prospectively to a Retrospectively 

 Budgeted Household ...................................... 7-12 

 725 Quarterly Reporting ................................................ 7-13 

 726 Semiannual Reporting ............................................. 7-13 

 726.1 Variance Determination................................... 7-14 

726.2 Special Circumstances. Reported Changes After the 

 Initial Authorization of Semiannual Reporting 

 Benefits ...................................................... 7-19 

 727 Transitional Benefits ............................................... 7-21 

 727.1 Determining Eligibility for Transitional Benefits ...... 7-21 

727.2 Changes After the Initial Authorization of 

 Transitional Benefits ...................................... 7-22 

727.3 Variance Determination ................................... 7-23 

730 Beginning Months......................................................... 7-24 

 731 Verification Time Periods ........................................ 7-24 

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FNS HANDBOOK 310 

 732 Changes .............................................................. 7-24 

732.1 Elements Subject to the Change Reporting 

 Requirements ................................................ 7-25 

732.2 Elements Subject to the Monthly Reporting 

 Requirements ................................................ 7-25 

740 Mass Changes.............................................................. 7-26 

 741 General............................................................... 7-26 

 741.1 Regulatory Changes ......................................... 7-26 

 741.2 Periodic Food Stamp Adjustments....................... 7-26 

 741.3 PA Changes .................................................. 7-26 

 741.4 Social Security and Other Federal Mass Changes...... 7-26 

750 Other Included and Excluded Variances .............................. 7-27 

 751 Missing Reports ..................................................... 7-27 

 752 Expired Certification Periods ..................................... 7-28 

 753 Expedited Service .................................................. 7-28 

 754 Information From a Federal Source ............................. 7-28 

 755 SAVE .................................................................. 7-29 

 756 Application of New Regulations .................................. 7-29 

 757 Federal Written Policy............................................. 7-29 

Chapter 8 Non-Financial Eligibility Criteria

800 General ......................................................................8-1 

810 Age and School Attendance...............................................8-1 

 811 Age - 110...............................................................8-1 

 812 School Enrollment....................................................8-2 

 812.1 Student Status - 111 .........................................8-2 

 812.2 Standard Verification ........................................8-2 

820 Citizenship and Non-Citizen Status - 130...............................8-2 

 821 U.S. Citizenship (By Birth or Naturalization).....................8-2 

 822 Non-Citizen Status....................................................8-3 

 822.1 Reviewer Contact With INS .................................8-5 

 822.2 Variances ......................................................8-5 

 823 Reports Concerning Illegal Non-citizens ..........................8-5 

830 Residency - 140.............................................................8-6 

 831 Standard Verification ................................................8-6 

 832 Resident of Institution...............................................8-7 

840 Household Composition and Living Arrangement - 150 ..............8-7 

 841 Categorically Eligible Households..................................8-8 

 842 Method of Verifying Household Composition.....................8-8 

 842.1 Household Statement About Membership ................8-8 

 842.2 Inquiry to Household About Other Members .............8-9 

842.3 Inquiry to Collateral Contacts About Household 

 Members ..................................................... 8-10 

842.4 Resolving Inconsistencies in Information About 

 Household Composition.................................... 8-11 

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FNS HANDBOOK 310 

 842.5 Actions To Resolve Inconsistencies ...................... 8-12 

 843 Residents of Certain Institutions ................................. 8-12 

 844 Error Determination................................................ 8-12 

 844.1 Household Consolidation/Movement.................... 8-12 

844.2 Duplicate Participation By All or Some Members of 

 the Same Household ....................................... 8-15 

844.3 Transfer/Movement of Individuals Into, Out of, and 

 Between Food Stamp Households ....................... 8-15 

 845 New Members Added to a Retrospectively Budgeted 

Household - Two-Month System.................................. 8-16 

 846 Separated Households ............................................. 8-18 

 847 Recipient Disqualification - 151.................................. 8-18 

848 Ineligibility Due to a Drug Related Conviction, and Fleeing 

 Felon Status ......................................................... 8-19 

850 Work Requirements as a Condition of Participation................ 8-20 

850.1 Work Registration - 162......................................... 8-20 

850.2 Employment and Training - 160 ............................... 8-21 

850.3 Acceptance of Employment - 166 ............................. 8-23 

850.4 Employment Status/Job Availability - 165................... 8-24 

850.5 Voluntary Quit/Reducing Work Effort - 163 ................. 8-25 

850.6 Workfare and Comparable Workfare - 164 ................... 8-26 

850.7 Time Limited Participation - 161.............................. 8-28 

860 Social Security Numbers - 170.......................................... 8-30 

 860.1 Verification ....................................................... 8-30 

 860.2 Variances .......................................................... 8-31 

870 Disabled Individuals...................................................... 8-32 

 870.1 Verification ....................................................... 8-33 

 870.2 Variances .......................................................... 8-33 

Chapter 9 Resources

900 Verification Standards for Resources ...................................9-1 

910 General Requirements.....................................................9-1 

 911 Purpose of Verification of Resources..............................9-1 

 912 Eligibility Standards ..................................................9-1 

 913 Categorical Eligibility ................................................9-1 

 914 Combined Resources - 225 ..........................................9-2 

 915 Acceptable Case Record Verification .............................9-2 

 916 Transfer of Resources................................................9-2 

920 Nonexempt Resources .....................................................9-3 

930 Exempt Resources..........................................................9-3 

 931 Resources of Non-Household Members............................9-3 

 932 Resources of Non-Citizen Sponsors ................................9-3 

 933 Resources Jointly Owned With Non-Household Members ......9-3 

934 Resources Which Are Accessible to the Household But 

 Not Owned by the Household.......................................9-3 

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FNS HANDBOOK 310 

940 Bank Accounts or Cash on Hand - 211...................................9-3 

 941 Inquiry About Debits to Accounts ..................................9-4 

 942 Inquiry About Declared Liquid Resources.........................9-4 

 943 Verification of Declared Liquid Resources........................9-5 

 943.1 Cash ............................................................9-5 

 943.2 Other Liquid Resources......................................9-5 

 943.3 Conditions Affecting Further Verification ................9-5 

950 Nonrecurring Lump-Sum Payments - 212 ...............................9-5 

960 Other Liquid Assets ........................................................9-6 

970 Real Property ...............................................................9-6 

 971 When Property Is Acknowledged...................................9-6 

 972 When No Property Is Acknowledged...............................9-6 

980 Vehicles - 222 ...............................................................9-7 

990 Other Non-Liquid Resources - 224 .......................................9-8 

Chapter 10 Income

1000 General................................................................... 10-1 

1010 Verification and Variance Determination Procedures ............ 10-1 

 1011 Verification........................................................ 10-1 

 1012 Variance Determination......................................... 10-1 

 1013 Terminology....................................................... 10-1 

 1013.1 Annualized income ..................................... 10-1 

 1013.2 Anticipated Income .................................... 10-1 

 1013.3 Averaged Income ....................................... 10-2 

 1013.4 Conversion............................................... 10-2 

 1013.5 Fluctuating income..................................... 10-2 

 1013.6 Prorated income........................................ 10-2 

 1013.7 Stable income........................................... 10-2 

1020 Verification requirements - earned income ........................ 10-2 

1020.1 Credit check for verification of earned income.......... 10-2 

 1021 Wages and Salaries - 311....................................... 10-2 

 1021.1 Positive Allegation .................................... 10-3 

 1021.2 Negative Allegation ................................... 10-3 

 1021.3 Verification ............................................. 10-3 

 1022 Self-Employment - 312 ........................................ 10-4 

 1022.1 Positive Allegation ..................................... 10-4 

 1022.2 Negative Allegation ................................... 10-5 

 1023 Other Earned Income - 314 .................................... 10-5 

 1023.1 Positive Allegation .................................... 10-5 

 1023.2 Negative Allegation ................................... 10-5 

1030 Verification Standards for Unearned Government Benefits...... 10-5 

1031 Retirement Survivors' and Disability Insurance (RSDI) 

 Benefits - 331 .................................................... 10-6 

1032 Veterans' Benefits - 332 ........................................ 10-6 

 1032.1 Positive Allegation .................................... 10-6 

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FNS HANDBOOK 310 

 1032.2 Negative Allegation ................................... 10-6 

1033 Supplemental Security Income (SSI) - 333................... 10-6 

1034 Unemployment Compensation - 334 ......................... 10-6 

 1034.1 Positive Allegation .................................... 10-6 

 1034.2 Negative Allegation ................................... 10-6 

1035 Worker's Compensation - 335.................................. 10-7 

 1035.1 Positive Allegation .................................... 10-7 

 1035.2 Negative Allegation ................................... 10-7 

1036 Other Government Benefits - 336 ............................ 10-7 

 1036.1 Positive Allegation .................................... 10-7 

 1036.2 Negative Allegation ................................... 10-7 

1040 Verification Standards for Other Unearned Income ............... 10-7 

 1041 Contributions/Income-In-Kind - 342.......................... 10-7 

 1041.1 Alimony Payments...................................... 10-7 

 1041.2 Income-In-Kind......................................... 10-9 

 1042 Deemed Income - 343........................................... 10-9 

 1043 PA or GA - 344 ................................................... 10-9 

 1044 Educational Grants, Scholarships, and Loans - 345 ........ 10-9 

 1044.1 Positive Allegation .................................... 10-10 

 1044.2 Negative Allegation .................................. 10-10 

 1045 Other Unearned Income - 346 ................................ 10-10 

 1045.1 Foster Care Payments................................ 10-10 

 1045.2 Dividends and Interest............................... 10-10 

 1045.3 Rental Income......................................... 10-11 

 1045.4 Pensions and Union Benefits ........................ 10-11 

 1046 TANF - 347....................................................... 10-11 

1050 Child Support Payments Received From Absent 

 Parents - 350 ........................................................... 10-11 

1060 Variance Determinations ............................................. 10-12 

 1061 Eligibility......................................................... 10-13 

 1061.1 Prospective Eligibility................................ 10-13 

 1061.2 Retrospective Eligibility ............................. 10-13 

 1061.3 Categorical Eligibility ................................ 10-13 

 1062 Unearned Income............................................... 10-14 

1063 Prospectively Budgeted Earned Income - $100 

 Change Reporting .............................................. 10-15 

 1063.1 First and Second Effective Months of a 

 Certification Action................................... 10-17 

 1063.2 Third Effective Month or Later Following 

 a Certification, Recertification, or 

 Interim Change ........................................ 10-20 

 1063.3 Unreported/Unprocessed Sources of 

 Earned Income ........................................ 10-24 

 1064 Prospectively Budgeted Earned Income – Status 

 Reporting ........................................................ 10-25 

1065 Annualized and Prorated Income ............................ 10-26 

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FNS HANDBOOK 310 

 1065.1 Self-Employment ..................................... 10-26 

 1065.2 Contract Income...................................... 10-27 

 1065.3 Educational Income .................................. 10-28 

1066 Household With More than One Type of Income .......... 10-28 

1070 Income From Ineligible Household Members ...................... 10-32 

 1070.1 Income That Must Be Counted Entirely ................... 10-32 

 1070.2 Income That Must Be Counted On A Prorated Basis ..... 10-33 

1080 Non-Compliance with Other Program Rules ....................... 10-33 

 1081 Desk Review...................................................... 10-33 

 1082 Field Review ..................................................... 10-33 

 1083 Verification....................................................... 10-34 

 1084 Identification of Variances .................................... 10-34 

 1085 Treatment of Variances ........................................ 10-34 

 1086 Other Deficiencies .............................................. 10-35 

Chapter 11 Deductions

1100 Deductions ............................................................... 11-1 

1110 Review of Deductions .................................................. 11-1 

 1111 Deductions as Billed ............................................. 11-1 

 1112 Expenses Paid by Excluded Vendor Payment ................ 11-2 

 1113 Deductions Disallowed at Certification or Recertification 11-3 

 1114 Special Treatment of Variances ............................... 11-5 

1120 Earned income deduction - 321 ...................................... 11-5 

 1120.1 Documentation ................................................. 11-5 

 1120.2 Verification ..................................................... 11-6 

1130 Dependent Care Deduction - 323..................................... 11-6 

 1130.1 Deductible Expenses .......................................... 11-6 

 1130.2 Documentation ................................................. 11-6 

 1130.3 Standard Verification ......................................... 11-7 

 1130.4 Special Treatment of Variances ............................. 11-7 

1140 Standard Deduction - 361 ............................................. 11-8 

 1140.1 Documentation ................................................. 11-8 

 1140.2 Verification ..................................................... 11-8 

1150 Shelter Deduction - 363................................................ 11-9 

 1150.1 Calculation of Shelter Deduction............................ 11-9 

 1151 Rent or Mortgage................................................. 11-9 

 1151.1 Documentation ......................................... 11-9 

 1151.2 Standard Verification ................................. 11-10 

 1152 Property Taxes................................................... 11-10 

 1152.1 Documentation ........................................ 11-10 

 1152.2 Standard Verification ................................. 11-10 

 1153 Property Insurance.............................................. 11-10 

 1153.1 Documentation ........................................ 11-11 

 1153.2 Standard Verification ................................. 11-11 

 1154 Unoccupied Home............................................... 11-11 

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FNS HANDBOOK 310 

 1154.1 Documentation ........................................ 11-12 

 1154.2 Standard Verification ................................. 11-12 

 1155 Repairing a Damaged Home ................................... 11-12 

 1155.1 Documentation ........................................ 11-12 

 1155.2 Standard Verification ................................. 11-12 

 1156 Utilities (Other Than the Standard Utility Allowance) .... 11-13 

 1156.1 Documentation ........................................ 11-13 

 1156.2 Standard Verification ................................. 11-13 

 1157 Homeless Shelter Deduction................................... 11-14 

 1157.1 Documentation ........................................ 11-14 

 1157.2 Standard Verification ................................. 11-14 

 1157.3 Verification............................................. 11-14 

1160 Standard Utility Allowance - 364.................................... 11-15 

 1160.1 Documentation ........................................ 11-16 

 1160.2 Standard Verification ................................. 11-17 

 1160.3 Verification............................................. 11-17 

 1160.4 Prorated SUA........................................... 11-18 

 1161 Special Treatment of Variances .............................. 11-18 

1161.2 Change Reporting and Unreported Changes 

 Subsequent to Certification/Recertification ...... 11-19 

1161.3 Expenses Reported at Any Time and Not 

 Correctly Processed.................................... 11-20 

 1161.4 Monthly Reporting and Actual Expenses ........... 11-20 

1170 Medical Deduction - 365 .............................................. 11-21 

 1170.1 Deductible Expenses......................................... 11-21 

 1170.2 Documentation ............................................... 11-23 

 1170.3 Standard Verification........................................ 11-23 

 1170.4 Calculation of Medical Expenses .......................... 11-23 

 1170.5 Special Treatment of Variances ........................... 11-24 

1180 Child Support Payment Deduction - 366 ........................... 11-29 

 1180.1 Documentation ................................................ 11-29 

 1180.2 Verification .................................................... 11-29 

 1180.3 Calculation of the Child Support Deductions............. 11-31 

Chapter 12 Making the Review Decision

1200 General................................................................... 12-1 

1210 The Computation Sheet................................................ 12-1 

 1211 Column (1) ........................................................ 12-1 

 1212 Column (2) ........................................................ 12-1 

 1213 Columns (3), (4), and (5) ....................................... 12-3 

1220 Computing the Amount Issued in Error.............................. 12-3 

1230 The Review Schedule................................................... 12-4 

 1231 Coding Review Findings - Item 8............................... 12-4 

 1232 Amount of Error - Item 10 ...................................... 12-4 

 1233 Coding the Dollar Amount Associated With Variances - 

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FNS HANDBOOK 310 

 Item 16............................................................. 12-5 

 1233.1 Mandatory Use .......................................... 12-5 

 1233.2 Optional Use ............................................ 12-5 

Chapter 13 Negative Case Action Reviews 

1300 Introduction ............................................................. 13-1 

1310 Procedures for Case Record Reviews ................................ 13-1 

1320 Cases Not Subject to Review.......................................... 13-1 

1330 Case Record Review .................................................... 13-3 

 1331 Purpose of Case Record Reviews ............................... 13-3 

 1332 Scope of the Negative Action Case Review ................... 13-3 

 1333 Procedures for the Case Record Review...................... 13-3 

 1334 Completion of Case Record Reviews........................... 13-3 

1340 Acceptable Documentation ........................................... 13-4 

1350 Collateral Contacts ..................................................... 13-5 

1360 Error Analysis ............................................................ 13-5 

 1361 Variances ........................................................... 13-5 

 1362 Reporting Findings ................................................ 13-5 

1370 Disposition of Case Reviews ........................................... 13-7 

1380 Incomplete Cases ....................................................... 13-7 

Chapter 14 Informal Resolution and Arbitration

1400 Informal Resolution and Arbitration ................................. 14-1 

1410 Informal Resolution..................................................... 14-1 

1420 Arbitration ............................................................... 14-1 

 1421 Documentation .................................................... 14-2 

 1422 Usual Timeframe for Requesting Arbitration ................ 14-3 

 1423 Unusual Timeframe for Requesting Arbitration ............. 14-5 

1430 Food Stamp Quality Control Arbitration ............................ 14-5 

 1431 General ............................................................ 14-5 

 1432 Quality Control Arbitrator ...................................... 14-5 

 1433 Quality Control Arbitration Procedures....................... 14-5 

1440 Handling Case Findings................................................. 14-5 

Appendices 

Appendix A Common Certification Waivers 

Common Certification Waivers – Food Stamp Quality Control 

Procedures ........................................................................A-1 

Semi-Annual Reporting All Reported Changes Acted Upon ................A-2 

 726 Semiannual Reporting ...............................................A-2 

 726.1 Variance Determination.....................................A-2 

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FNS HANDBOOK 310 

726.2 Special Circumstances. Reported Changes After the 

 Initial Authorization of Semiannual Reporting 

 Benefits ........................................................A-7 

Appendix B Form FNS-380, Worksheet for Food Stamp 

Program Quality Control Reviews 

Form FNS-380, the Worksheet for Food Stamp Program Quality Control 

Reviews ............................................................................B-1 

 Facesheet ...................................................................B-1 

 Element 110 though 140 ..................................................B-2 

 Element 150 though 163 ..................................................B-3 

 Element 164 through 211 .................................................B-4 

 Element 212 through 222 .................................................B-5 

 Element 224 through 225 .................................................B-6 

 Element 311 through 312 .................................................B-7 

 Element 314 through 323 .................................................B-8 

 Element 331 through 334 .................................................B-9 

 Element 335 through 343 ............................................... B-10 

 Element 344 through 350 ............................................... B-11 

 Element 361 through 364 ............................................... B-12 

 Element 365 through 372 ............................................... B-13 

 Element 520 through 820 ............................................... B-14 

 Computation Sheet ...................................................... B-15 

 Self-Employment Addendum of the Computation Sheet .......... B-17 

Instructions for Completing Form FNS-380................................. B-18 

 GENERAL ................................................................... B-18 

 FACESHEET – PAGE 1 (FNS-380) ........................................ B-18 

 SECTION A – IDENTIFYING INFORMATION.............................. B-18 

 1. Agency ............................................................ B-18 

 2. Case Name........................................................ B-18 

 3. Address............................................................ B-18 

 4. Telephone Number.............................................. B-18 

 5. Directions to Locate ............................................ B-19 

 6. Case Number ................................................... B-19 

 7. Review Number ................................................ B-19 

 8. Review Date/Month ........................................... B-19 

 9. Reserved ......................................................... B-19 

 10. Most Recent Action: Date and Type......................... B-19 

 11. Certification .................................................... B-19 

 12. Participated During Sample .................................. B-19 

 13. Received Expedited Service.................................. B-19 

 14. Categorically Eligible Household ............................ B-19 

 15. Reviewer ........................................................ B-19 

 16. Date Assigned .................................................. B-20 

 17. Date of Case Readings ........................................ B-20 

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FNS HANDBOOK 310 

 18. Date of Personal Interview ................................... B-20 

 19. Date Completed................................................ B-20 

 20. Supervisor....................................................... B-20 

 21. Date Cleared.................................................... B-20 

 SECTION B – PERSONS LIVING IN THE HOME ......................... B-20 

 Name ................................................................... B-20 

 Birth Date ............................................................. B-20 

 Age ..................................................................... B-20 

 Relationship or Significance ....................................... B-20 

 Social Security ....................................................... B-21 

 Recipient .............................................................. B-21 

 SECTION C – SIGNIFICANT PERSONS NOT LIVING IN THE HOME ... B-21 

 Name .................................................................. B-21 

 Relationship or Significance ....................................... B-21 

 Social Security Number ............................................. B-21 

 Address ................................................................ B-21 

 Phone Number ....................................................... B-22 

 Financial Support .................................................... B-22 

 SECTION D - REVIEW FINDINGS ......................................... B-22 

 WORKSHEET NARRATIVE- PAGES 2 THROUGH 14 (FNS-380) . B-22 

 GENERAL INSTRUCTIONS ............................................ B-22 

 COLUMN 1, ELEMENTS OF ELIGIBILITY AND BASIS OF ISSUANCE .. B-22 

 COLUMN 2, QC ANALYSIS OF CASE RECORD .......................... B-22 

 COLUMN 3, FINDINGS OF FIELD INVESTIGATION .................... B-22 

 COLUMN 4, RESULTS ..................................................... B-23 

 COMPUTATION SHEETS – PAGES 15 THROUGH 17 (FNS-380) . B-25 

 General Instructions ..................................................... B-25 

 COLUMN 1, ELIGIBILITY WORKER ...................................... B-25 

 COLUMN 2, FINAL SAQC DETERMINATION ............................ B-25 

 COLUMNS 3, 4, 5 ......................................................... B-25 

The Food Stamp Quality Control Automated FNS-380, 

User’s Manual................................................................... B-26 

 Table of Contents ....................................................... B-27 

Appendix C Form FNS-380-1, The Quality Control 

Review Schedule 

Form FNS-380-1, the Quality Control Review Schedule ...................C-1 

 Section 1 Review Summary ..............................................C-1 

 Section 2 – Detailed Error Findings .....................................C-1 

 Section 3 – Household Characteristics ..................................C-2 

 Section 4 – Information on Each Household Member .................C-3 

 Section 5 – Income Identified by Household Member ................C-4 

 Section 6 – Reserved Coding .............................................C-4 

 Section 7 - Optional For State Use ......................................C-4 

Instructions for Completing Form FNS-380-1 ................................C-5 

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FNS HANDBOOK 310 

GENERAL INFORMATION ........................................................C-5 

 Dates .........................................................................C-5 

 Dollar Amounts .............................................................C-5 

 Not Applicable .............................................................C-5 

 Unknown ....................................................................C-5 

 Stratum ......................................................................C-6 

 Local Agency Code ........................................................C-6 

 FIPS Codes ..............................................................C-6 

QUALITY CONTROL REVIEW SCHEDULE .......................................C-6 

 SECTION 1 - REVIEW SUMMARY .........................................C-6 

 1. QC Review Number ................................................C-6 

 2. Case Number .......................................................C-6 

 3. State code ..........................................................C-6 

 State Codes - National Institute of Standards and 

 Technology .........................................................C-7 

 4. Local Agency Code ................................................C-8 

 5. Sample Month and Year ...........................................C-8 

 6. Stratum ..............................................................C-8 

 7. Disposition...........................................................C-8 

8. Review Findings ....................................................C-8 

 9. FS Allotment Under Review ......................................C-8 

 10. Error Amount.......................................................C-8 

 11. Case Classification.................................................C-9 

 SECTION 2 – DETAILED ERROR FINDINGS ................................C-9 

 12. Element ............................................................C-9 

 13. Nature codes ......................................................C-9 

 BASIC PROGRAM REQUIREMENTS – (100) .................... C-10 

 Element 111 - Student Status............................ C-10 

 Element 130 - Citizenship and Non-Citizen Status ... C-10 

 Element 140 – Residency ................................. C-10 

 Element 150 - Household Composition................. C-10 

 Element 151 - Recipient Disqualification .............. C-11 

 Element 160 – Employment & Training Programs .... C-11 

 Element 161 – Time-limited Participation ............ C-11 

 Element 162 – Work Registration Requirements ...... C-12 

 Element 163 – Voluntary Quit/Reduced Work Effort . C-12 

 Element 164 – Workfare and Comparable Workfare . C-12 

 Element 165 – Employment Status/Job Availability .. C-12 

 Element 166 – Acceptance of Employment............. C-12 

 Element 170 – Social Security Number.................. C-12 

 RESOURCES - (200)............................................... C-13 

 Liquid Resources ............................................ C-13 

 Element 211 – Bank Accounts or Cash on Hand... C-13 

 Element 212 – Nonrecurring Lump-sum Payment . C-13 

 Element 213 – Other Liquid Assets.................. C-13 

 Non-Liquid Resources ...................................... C-13 

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FNS HANDBOOK 310 

 Element 221 – Real Property......................... C-13 

 Element 222 – Vehicles ................................ C-14 

 Element 224 – Other Non-Liquid Resources ........ C-14 

 Element 225 – Combined Resources ................. C-14 

 INCOME (300) ..................................................... C-14 

 Earned Income .............................................. C-14 

 Element 311 – Wages and Salaries ................... C-14 

 Element 312 – Self-Employment .................... C-15 

 Element 314 – Other Earned Income ................ C-15 

 Deductions................................................... C-15 

 Element 321 – Earned Income Deductions.......... C-15 

 Element 323 – Dependent Care Deduction ......... C-16 

 Unearned Income........................................... C-16 

 Element 331 – RSDI Benefits .......................... C-16 

 Element 332 – Veterans Benefits .................... C-16 

 Element 333 – SSI and/or State SSI Supplement .. C-16 

 Element 334 – Unemployment Compensation ..... C-17 

 Element 335 – Worker’s Compensation ............ C-17 

 Element 336 – Other Government Benefits ........ C-17 

 Element 342 – Contributions ........................ C-17 

 Element 343 – Deemed Income ...................... C-18 

 Element 344 – TANF, PA, or GA ..................... C-18 

 Element 345 – Educational 

 Grants/Scholarships/Loans .......................... C-18 

 Element 346 – Other Unearned Income............. C-19 

 Element 350 – Child Support Payments 

 Received from Absent Parent ........................ C-19 

 Element 361 – Standard Deduction .................. C-19 

 Element 363 - Shelter Deduction .................... C-20 

 Element 364 - Standard Utility Allowance ......... C-20 

 Element 365 - Medical Deductions .................. C-20 

 Element 366 - Child Support Payment 

 Deduction................................................ C-20 

 Element 371 - Combined Gross Income............. C-20 

 Element 372 - Combined Net Income ............... C-21 

 OTHER - (500 and 800) .......................................... C-21 

 Element 520 - Arithmetic Computation ............ C-21 

 Element 530 – Transitional Benefits................. C-21 

 Element 560 - Reporting Systems.................... C-21 

 Element 810 - Food Stamp Simplification 

 Project................................................... C-22 

 Element 820 - Demonstration Projects ............. C-22 

 14. Cause ............................................................. C-23 

 15. Error Finding..................................................... C-24 

 16. Error Amount ................................................... C-25 

 17. Discovery ........................................................ C-25 

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FNS HANDBOOK 310 

 18. Verified .......................................................... C-25 

 19. Occurrence...................................................... C-26 

 a. Date.......................................................... C-26 

 b. Time Period ................................................ C-26 

 SECTION 3 - HOUSEHOLD CHARACTERISTICS ......................... C-26 

 20. Most Recent Certification Action............................. C-26 

 21. Type of Action................................................... C-26 

 Certification..................................................... C-26 

 Recertification .................................................. C-27 

 22. Length of Certification Period................................ C-27 

 23. Allotment Adjustment......................................... C-27 

 24. Amount of Allotment Adjustment........................... C-27 

 25. Number of Household Members.............................. C-27 

 26. Receipt of Expedited Service .................................. C-28 

 27. Authorized Representative Used at Application ........... C-28 

 28. Categorical Eligibility Status ................................. C-28 

 29. Reporting Requirement ....................................... C-28 

 Resources............................................................... C-29 

 30. Liquid Assets...................................................... C-29 

 31. Real Property (Excluding Home) ............................. C-29 

 32(a). Vehicle......................................................... C-29 

 32(b). Status 2nd Vehicle ........................................... C-29 

 33. Countable Vehicle Assets ...................................... C-30 

 34. Other Non-liquid Assets........................................ C-30 

 Income .................................................................. C-30 

 35. Gross Countable Income........................................ C-30 

 36. Net Countable Income .......................................... C-30 

 Deductions ............................................................. C-30 

 37. Earned Income ................................................... C-30 

 38. Medical ............................................................ C-30 

 39. Dependent Care.................................................. C-30 

 40. Child Support..................................................... C-31 

 41. Shelter............................................................. C-31 

 42. Homeless .......................................................... C-31 

 Additional Information on Shelter Costs........................... C-31 

 43. Rent/Mortgage ................................................... C-31 

 44. Use of SUA ........................................................ C-31 

 a. Usage.......................................................... C-31 

 LIHEAA ........................................................ C-31 

 Higher Standard ............................................. C-31 

 Lower Standard.............................................. C-31 

 b. Proration...................................................... C-32 

 45. Utilities (SUA or Actual) ........................................ C-32 

 SECTION 4 – INFORMATION ON EACH HOUSEHOLD 

 MEMBER ................................................................... C-32 

 46. Person Number.................................................. C-33 

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FNS HANDBOOK 310 

 47. Food Stamp Program Participation .......................... C-33 

 48. Relationship to Head of Household .......................... C-34 

 49. Age ................................................................ C-34 

 50. Sex ................................................................ C-34 

 51. Race............................................................... C-34 

 52. Citizenship Status............................................... C-34 

 53. Educational Level............................................... C-35 

 54. Employment ..................................................... C-35 

 First box: Status ................................................ C-35 

 Second box: Hours Worked.................................... C-36 

 55. Food Stamp Program Work .................................... C-36 

56. Food Stamp Program (FSP) Employment and 

Training (E&T) Program Status..................................... C-36 

 57. ABAWD Status ................................................... C-36 

 58. Dependent Care Cost........................................... C-37 

 SECTION 5 – INCOME IDENTIFIED BY HOUSEHOLD MEMBER......... C-37 

 59. Person Number.................................................. C-37 

 Source 1................................................................ C-37 

 60. Income Type ..................................................... C-37 

 Earned Income (Not Subsidized) ............................. C-37 

 Subsidized Earned Income .................................... C-37 

 Unearned Income............................................... C-38 

 61. Amount ........................................................... C-38 

 Source 2................................................................ C-38 

 62. Income Type ..................................................... C-38 

 63. Amount .......................................................... C-38 

 Source 3................................................................ C-38 

 64. Income Type ..................................................... C-38 

 65. Amount ........................................................... C-38 

 Source 4................................................................ C-38 

 66. Income Type ..................................................... C-38 

 67. Amount ........................................................... C-38 

 SECTION 6 - RESERVED CODING ........................................ C-39 

 68. Timeliness of Application Processing (Expedited and 30 Day 

 Requirement .......................................................... C-39 

 69. Handled as an Earned Income Case.......................... C-40 

 70. Handled as Case With Non-Citizens .......................... C-40 

 71. – 76. Reserved................................................... C-40 

 SECTION 7 – OPTIONAL FOR STATE USE ............................... C-40 

Appendix D Form FNS-245, Quality Control Food Stamp 

Negative Case Action Review Schedule 

Form FNS-245, the Food Stamp Quality Control Negative Case Action 

Review Schedule .................................................................D-1 

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FNS HANDBOOK 310 

INSTRUCTIONS FOR COMPLETING FORM FNS-245, QUALITY CONTROL 

NEGATIVE CASE ACTION REVIEW SCHEDULE..................................D-3 

GENERAL INSTRUCTIONS ........................................................D-3 

 SECTION I - CASE MANAGEMENT INFORMATION.........................D-3 

 1. Case Name ...........................................................D-3 

 2. Telephone Number .................................................D-3 

 3. Mailing Address ......................................................D-3 

 4. Actual Address/Directions to Locate.............................D-3 

 5. Date Assigned........................................................D-3 

 6. Date Completed .....................................................D-4 

 7. Date Cleared.........................................................D-4 

 SECTION II - IDENTIFYING INFORMATION................................D-4 

 ITEM A. Review Number .............................................D-4 

 ITEM B. Case Number .................................................D-4 

 ITEM C. State and Local Agency Code:.............................D-4 

 State Agency Code .................................................D-4 

 Local Agency Code .................................................D-4 

 ITEM D. Sample Month and Year ....................................D-4 

 ITEM E. Stratum........................................................D-5 

 ITEM F. Decision Date.................................................D-5 

 ITEM G. Effective ......................................................D-5 

 ITEM H. Action Type ..................................................D-5 

 ITEM I. Case Classification ...........................................D-5 

 SECTION III - ANALYSIS OF REVIEW ACTIVITY...........................D-6 

 ITEM J. Notice Requirement.........................................D-6 

 ITEM K. Recorded Reason for Action ...............................D-6 

 ITEM L. Validity of Recorded Reason ...............................D-7 

 ITEM M. Result of Expanded Review................................D-7 

 ITEM N. Disposition of Review.......................................D-8 

 SECTION IV - DESCRIPTION OF VARIANCES..............................D-9 

 ITEM O. Element.......................................................D-9 

 ITEM P. Nature Codes..................................................D-9 

 BASIC PROGRAM REQUIREMENTS – (100)...................... D-10 

 Element 111 – Student Status .............................. D-10 

 Element 130 - Citizenship and Non-Citizen Status...... D-10 

 Element 140 - Residency.................................... D-10 

 Element 150 - Household Composition ................... D-10 

 Element 151 - Recipient Disqualification ................ D-11 

 Element 160 – Employment & Training Programs ....... D-11 

 Element 161 - Time-limited Participation ............... D-11 

 Element 162 - Work Registration Requirements ........ D-11 

 Element 163 - Voluntary Quit/Reduced Work Effort ... D-12 

 Element 164 - Workfare and Comparable Workfare.... D-12 

 Element 165 - Employment Status/Job Availability .... D-12 

 Element 166 – Acceptance of Employment .............. D-12 

 Element 170 – Social Security Number.................... D-12 

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FNS HANDBOOK 310 

 RESOURCES - (200)............................................... D-13 

 Liquid Resources ............................................. D-13 

 Element 211 - Bank Accounts or Cash on Hand ......... D-13 

 Element 212 - Nonrecurring Lump-sum Payment ....... D-13 

 Element 213 - Other Liquid Assets ........................ D-13 

 Non-Liquid Resources........................................ D-13 

 Element 221 - Real Property ............................... D-13 

 Element 222 - Vehicles...................................... D-13 

 Element 224 - Other Non-Liquid Resources .............. D-14

 Element 225 - Combined Resources....................... D-14

 INCOME (300) ..................................................... D-15

 Earned Income................................................ D-15

 Element 311 - Wages and Salaries......................... D-15

 Element 312 - Self-Employment........................... D-15

 Element 313 - Other Earned Income ...................... D-15

 Deductions .................................................... D-16

 Element 321 - Earned Income Deductions ............... D-16

 Element 323 - Dependent Care Deduction ............... D-16

 Unearned Income ............................................ D-16

 Element 331 - RSDI Benefits................................ D-16

 Element 332 - Veterans Benefits .......................... D-16

 Element 333 - SSI and/or State SSI Supplement ........ D-16

 Element 334 - Unemployment Compensation ........... D-17

 Element 335 - Worker’s Compensation................... D-17

 Element 336 - Other Government Benefits .............. D-17

 Element 342 - Contributions ............................... D-17

 Element 343 - Deemed Income ............................ D-17

 Element 344 - TANF, PA, or GA............................ D-17

 Element 345 - Educational 

 Grants/Scholarships/Loans ................................. D-17

 Element 346 - Other Unearned Income................... D-18

 Element 350 - Child Support Payments Received 

 from Absent Parent.......................................... D-18

 Other Deductions ............................................ D-18

 Element 361 - Standard Deduction ....................... D-18

 Element 363 - Shelter Deduction ......................... D-18

 Element 364 - Standard Utility Allowance .............. D-18

 Element 365 - Medical Deductions ....................... D-19

 Element 366 - Child Support Payment Deduction...... D-19

 Element 371 - Combined Gross Income.................. D-19

 Element 372 - Combined Net Income .................... D-19

 Other.......................................................... D-19

 Element 412 – Budgeting System .......................... D-19

 Element 413 - Application .................................. D-19

 Element 414 – Joint TANF/FS Processing and 

 Reporting ...................................................... D-20

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FNS HANDBOOK 310 

xxi

 Element 415 - Verification.................................. D-20

 Element 416 – Action Type ................................. D-20

 Element 511 - Other......................................... D-20

 Element 520 - Arithmetic Computation .................. D-20

 Element 530 – Transitional Benefits ...................... D-21

 RESERVED (FOR FEDERAL USE ONLY) .................................. D-21

 OPTIONAL (FOR STATE SYSTEMS ONLY) ............................... D-21

 SECTION V - EXPLANATION OF REVIEW FINDINGS.................... D-22

Appendix E Interviewing Guide for Food Stamp 

Quality Control

Interviewing Guide for Food Stamp Quality Control........................E-1 

The Nature of Interviewing ....................................................E-1 

General Rules for Effective Interviews ......................................E-1 

Introducing One’s Self ..........................................................E-2 

Creating Rapport ................................................................E-3 

Encouraging Discussion .........................................................E-4 

 Take the initiative .........................................................E-4 

 Provide support ............................................................E-4

 Don’t be afraid of silence ................................................E-4 

 Use neutral questions .....................................................E-5 

 Repeat the question .......................................................E-5 

 Restate ......................................................................E-5 

 Summarize ..................................................................E-5 

Asking Questions .................................................................E-5 

 Formulating the Question ................................................E-6 

 Avoiding Pitfalls ............................................................E-6 

Listening ..........................................................................E-7 

Non-Verbal Communication ....................................................E-7 

Note-Taking ......................................................................E-8 

Closing the Interview ...........................................................E-8 
FNS HANDBOOK 310 

CHAPTER 1 

INTRODUCTION 

100 GENERAL. This Handbook provides procedures for conducting 

quality control (QC) reviews of food stamp cases. The first chapter contains 

general provisions and definitions. 

110 PURPOSE. Each State agency is responsible for conducting QC 

reviews as part of its Performance Reporting System. For QC reviews, a 

statistical sample of households shall be selected from households which are 

participating in the Food Stamp Program (active cases) and households for 

which participation was denied, suspended, or terminated (negative cases). 

Reviews shall be conducted on active cases to determine if households are 

eligible and receiving the correct coupon allotments. Reviews of negative 

cases shall be conducted to determine whether the decision to deny, to 

suspend, or to terminate the household was correct. 

Reviews measure the validity of food stamp cases at a given time (the review 

date). 

The State agency shall review cases against the Food Stamp Program standards 

established in the Food Stamp Act and regulations taking into account any FNS 

approved waivers that have been implemented or State options to deviate from 

specific provisions. (States must routinely address QC procedures in 

certification waiver requests. If the waiver will result in a need to deviate 

from the procedures in this Handbook, the State agency must identify the 

regulation citation and Handbook section, describe what the new QC procedure 

will be, and request approval of that procedure with the certification waiver 

request.) 

120 OBJECTIVES. The objectives of QC reviews are to provide: 

• A systematic method of measuring the validity of the food stamp 

caseload; 

• A basis for determining error rates; 

• A timely, continuous flow of information on which to base 

corrective action at all levels of administration; and 

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FNS HANDBOOK 310 

• A basis for establishing State agency eligibility for bonus awards 

or State agency liability for excessive error rates. 

130 DEFINITIONS.

Active case means a household that was certified prior to or during the sample 

month and issued food stamp benefits for the sample month. 

• This includes households certified for benefits in the sample 

month and issued benefits in the next month. 

• However, a household that was issued the sample month's 

benefits based on an expired ATP is not an active case. 

• “Issued an allotment” means that the coupons were mailed and 

not returned by the Postal Service or that an ATP was cashed. 

This applies to the original ATP or a replacement ATP. In 

addition, a household did not participate if coupons are held for 

the household at a local certification office and the household 

does not take possession of the coupons. This does not apply to 

allotments subjected to recoupment. A household that had all or 

part of its allotment recouped to repay a prior food stamp 

overissuance is an active case, even if it did not cash an ATP. In 

addition, a household that voluntarily returned its coupons is an 

active case. 

• In an “on-line” Electronic Benefit Transfer (EBT) system, 

issued an allotment means that benefits have been posted 

electronically to the household's account database. In a “Smart 

Card” EBT system the benefit information is resident on the card 

and issued an allotment means that the card has been presented 

for update for the sample month. See Section 321 for details 

regarding participation in EBT systems. 

AORD means as of the review date. 

Budget month means the fiscal or calendar month from which a household's 

income and other circumstances are used to calculate the food stamp 

allotment for the corresponding issuance month. 

• In a one-month retrospective budgeting system, the budget 

month begins a month before the first day of the issuance month. 

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FNS HANDBOOK 310 

• In a two-month system, the budget month begins two months 

prior to the first day of the issuance month. 

• In a prospective budgeting system the issuance month and budget 

month are the same. 

Case record means the records establishing a household's eligibility or 

ineligibility and, in active cases, authorizing the issuance of a food stamp 

allotment. 

• Included under this definition are records referred to as the case 

file or certification record. 

• The case record is usually maintained by and located in the local 

certification office, but may extend to data processing units and 

include information maintained in computer files. 

Categorical eligibility means that households in which all members receive or 

are authorized to receive 

• Public assistance (PA), 

• Supplemental Security Income (SSI), 

• A State or local general assistance (GA) program, or 

• Benefits of a State program conferring categorical eligibility 

Unless the entire household is institutionalized or the household or a member 

has been disqualified from receiving food stamps because of an intentional 

program violation, failure to comply with a work-related requirement or failure 

to submit a monthly report. 

The eligibility factors which are deemed are 

• The resource, gross and net income limits, 

• Sponsored non-citizen information and 

• Residency. 

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FNS HANDBOOK 310 

In addition, Social Security numbers need not be verified for PA and SSI 

recipients. Social Security numbers need to be verified for GA households. 

Certification action means the action taken on a case prior to or on the review 

date that authorized the sample month's issuance. This includes initial 

certifications, recertifications, interim changes, changes prior to issuance and 

authorizations of supplemental issuances. 

Change means an event that results in a difference between the household's 

circumstances AORD and its circumstances at the time of certification or 

recertification. Changes include all events that either the household or the 

agency becomes aware of regardless of whether the event is reported and/or 

properly acted upon. 

Change reporting means that the household is required to report certain 

specified changes in its circumstances within 10 days of the date the change 

becomes known to the household. 

Collateral Contact means a source of information which can be used to verify 

household circumstances. Collateral contacts are generally individuals such as 

landlords and employers, but they may also be documents such as those 

maintained in government offices. 

A collateral contact cannot be a person who was in the food stamp household 

under review, or a person or office within the State agency administering the 

program for purposes of primary or secondary evidence. 

Documentation means a written or printed statement on paper or a copy of a 

document furnishing information. Verification of household circumstances 

must be documented. Examples of documentation appear in Section 520. 

Error for active cases results when a determination is made by a quality control 

reviewer that a household which received food stamp benefits during the 

sample month is ineligible or received an incorrect allotment. 

• Thus, errors in active cases involve dollar loss to either the 

participant or the government. 

• For negative cases, an "error" means that the reviewer 

determines that the decision to deny, suspend, or terminate a 

household was incorrect. 

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FNS HANDBOOK 310 

Error Determinant Month is the first full month that ends more than 30 days 

before the review date. 

Initial Month means the first month for which the household was certified for 

participation following any period when the household was not certified. For 

an initial month, benefits are prorated from the day of application to the end 

of the month. 

However, for migrant and seasonal farmworker households, the initial month is 

the first month following a period of more than 30 days in which the household 

was not certified. 

Interim Change means a recalculation of food stamp benefits resulting from a 

change reported by the household; or a change the State agency becomes 

aware of through a source other than the household with the exception of nonincome related mass changes. 

• Income related mass changes include, but are not limited to, SSA 

and SSI COLAs and across the board adjustments to Temporary 

Assistance to Needy Families (TANF). 

• Non-income related mass changes include, but are not limited to, 

adjustments to SUA’s and caps on dependent care deductions. 

Issuance month is the fiscal or calendar month for which the State agency 

issued a food stamp allotment. A case's issuance month will always be the same 

as its QC sample month. 

Monthly reporting means that a household is required to submit a report 

following each budget month that is used to determine benefits for the 

corresponding issuance month. 

Negative case means a household whose application for food stamp benefits 

was denied or whose food stamp benefits were suspended or terminated by an 

action in the sample month or by an action effective for the sample month. 

Overissuance means the amount the allotment of food stamp benefits 

authorized to a household exceeded the allotment it was eligible to receive. 

Processing month means the month between the budget month and the 

issuance month in a two-month retrospective budgeting system. 

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FNS HANDBOOK 310 

Prospective budgeting means the computation of a household's food stamp 

benefits for an issuance month is based on income and other circumstances 

reasonably anticipated for that month. 

Prospective eligibility means the eligibility determination is based on income 

and other household circumstances reasonably anticipated for the issuance 

month. 

Public assistance (PA) means any of the following programs authorized by the 

Social Security Act of 1935, as amended: 

• Old-age assistance, 

• TANF, 

• Aid to the blind, 

• Aid to the permanently and totally disabled, and 

• Aid to aged, blind, or disabled. 

It does not include Supplemental Security Income. 

Quality control review means a review of a statistically valid sample of active 

and negative cases to determine the extent to which households are receiving 

the food stamp allotments to which they are entitled, and to determine the 

extent to which decisions to deny, suspend, or terminate cases are correct. 

Quarterly reporting means that a household is required to submit a report 

once a quarter following a budget month that is used to determine benefits for 

the following three issuance months. 

Recertification means a certification action taken to authorize benefits for an 

additional period of time immediately following the expiring certification 

period. 

Retrospective budgeting means that the computation of a household's food 

stamp benefits for the issuance month is based on actual income and 

deductions during the retrospective budget month with some exceptions. 

There are special provisions for (A) annualizing self-employment income, (B) 

prorating educational monies and most contract income, and (C) averaging 

some deductions. 

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FNS HANDBOOK 310 

Retrospective eligibility means the eligibility determination is based on 

income and other circumstances, which existed in the retrospective budget 

month. 

Review date for quality control active cases means a day within the sample 

month, either the first day of the fiscal or calendar month or the day a 

certification action was taken to authorize the issuance, whichever is later. 

The "review date" for negative cases, depending on the characteristics of 

individual State systems, could be the date on which the eligibility worker 

makes the decision to suspend, deny, or terminate the case, the date on which 

the decision is entered into the computer system, the date of the notice to the 

client, or the date the negative action becomes effective. 

For no case is the “review date” the day the quality control review is 

conducted. 

Sample month means the month of the sample frame from which a case is 

selected. For active cases, sample month is synonymous with issuance month. 

Semiannual reporting means that a household is required to submit a report at 

a 6 month interval which is used to determine benefits for the month following 

the report. Under this limited reporting, besides submitting the periodic 

report, households are only required to report changes which cause the 

household’s gross income to exceeds 130% of the poverty income guidelines for 

household size. 

Status reporting means that a household is required to report a change in the 

wage rate or salary or a change in full-time or part-time employment status. 

Underissuance means the amount the allotment to which the household was 

entitled exceeded the allotment authorized. 

Universe means all units from which information is desired. 

Variance means the incorrect application of policy and/or a deviation between 

the information that was used and the information that should have been used 

to authorize the sample month's issuance. 

Verification means establishment of the accuracy of specific elements of 

eligibility and allotment by securing documentary evidence and/or by making 

collateral contacts with individuals, other than members of the household 

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under review. Households under review can provide verification for some 

elements. 

140 HANDBOOK MODIFICATION. This Handbook is designed for use 

by all State agencies. It provides review procedures for various combinations 

of eligibility, budgeting and reporting systems that are needed because of State 

differences resulting from the selection of options. Consequently, there are 

sections that do not pertain to certain States because of FNS-approved waivers 

and options and sections that need to be modified to fit particular 

circumstances in a State. 

Some certification waivers are very common. In Appendix A you can find the 

review procedures for common waivers. 

150 ADMINISTRATION OF THE QC SYSTEM. Each State is 

responsible for maintaining sound administration of all facets of the QC system. 

It is responsible for complying with the Food Stamp Act and regulations, this 

handbook, and FNS policy memoranda, as well as the State agency's Plan of 

Operation. 

151 Implementation of QC Indexed Policy Memoranda. FNS QC 

indexed policy memoranda must be implemented no later than the first sample 

month beginning 30 days after transmittal of the memoranda to the State 

agency. 

152 Contracted Activity. A contractual agency may be used for QC 

only if it is the Department of the State regularly employed for this function 

(e.g., a State Inspector General's Office or a State Office of Audit.) For those 

States in which QC is conducted by a contractual agency, the State agency shall 

ensure that FNS-approved policies and procedures are followed. 

153 Staffing Standards. The State shall employ sufficient QC staff to 

ensure that reviews are completed in time to meet reporting requirements and 

that the quality of the reviews will ensure that all findings are valid. 

154 Avoiding Bias. Accomplishment of the objectives of QC depends 

upon the successful operation of all facets of the subsystem. Specifically, it 

depends on: 

• The integrity of the sample selected 

• The skills with which the reviewers conduct reviews 

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FNS HANDBOOK 310 

• The care and precision with which they record their findings 

• The completeness and accuracy of data analysis 

• The use of these results in corrective action 

• Determining State agencies’ liability for errors 

• Determining State agencies’ eligibility for enhanced funding. 

To be successful, then, the QC subsystem must eliminate all bias; otherwise, 

the results will not be valid and will have little use in planning corrective 

actions. 

The most common sources of bias are inadequate sampling technique, 

noncompletion of cases, and lack of objectivity on the part of the reviewer. 

The first of these sources can be avoided by following the instructions in FNS311, The Quality Control Sampling Handbook. Eliminating the other two is the 

responsibility of individual reviewers and their supervisors. 

A potential source of bias is prior knowledge by the local agency of cases 

scheduled for review, resulting in the agency’s intentional or unintentional 

treatment of these cases in a special manner that, in turn, makes the sample 

results unrepresentative of the whole caseload. 

The reviewer shall not have prior knowledge of either the household or the 

decision under review. Where there is prior knowledge of the case, the 

reviewer shall disqualify her/himself. Such prior knowledge is defined as: 

• Any participation in the decision that had been made in the case; 

• Any discussion of the case with staff who participated in the 

decision; or 

• Any personal knowledge of, or acquaintance with, the household. 

160 QC UNIVERSE. (Refer to FNS Handbook 311.) Statistical samples 

of food stamp cases are selected for QC review. There are two universes from 

which the cases are selected -- active and negative. Households correctly 

classified for participation under the rules of an FNS-authorized demonstration 

project, unless FNS determines that such cases may be excluded, and 

households participating based on food stamp applications processed by the 

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FNS HANDBOOK 310 

Social Security Administration shall be included in the selection and review 

process. In addition, households may be selected more than once during the 

review period. 

170 ERROR ANALYSIS. (Refer to Chapters 6 and 12.) Using the QC 

review procedures in this handbook and based on verified information, the 

reviewer shall determine if each completed active case was eligible and 

whether it was overissued or underissued benefits. Through a review of 

negative case records, the reviewer shall determine whether the State agency's 

decision to deny, to suspend, or to terminate the household, as of the review 

date, was correct. 

180 FORMS AND REPORTING. Refer to Chapter 12 and Appendices 

B, C and D.

181 Active Cases. For each active case, the State agency shall 

complete the Form FNS-380, Worksheet for Food Stamps Quality Control 

Reviews, and a Form FNS-380-1, Review Schedule. (See Chapter 3 for cases not 

subject to review.) 

181.1 Form FNS-380. (See section 323 and Appendix B.) The reviewer 

shall use a Form FNS-380 to record information from the case record, to plan 

and conduct the field investigation, to record findings and to document the 

verification that substantiates the eligibility determination and benefit level. 

States have the option of using the Federal form (paper or automated) or an 

FNS Regional Office approved State-designed form. Form FNS-380 consists of a 

face sheet, a worksheet and a computation sheet to determine the correct 

benefit level. It may be necessary for the reviewer to supplement the Form 

FNS-380 with other forms such as State forms for appointments, interoffice 

communications, release of information, etc., when appropriate. 

181.2 Form FNS-380-1. (See Chapter 12 and Appendix C.) Information 

from the Form FNS-380 is used to complete the FNS-380-1. Data from the FNS380-1 is transmitted to the National Computer Center (NCC) via the Food Stamp 

Quality Control System (FSQCS). 

An FNS-380-1 is completed for all active cases. Cases processed by a Social 

Security Administration worker and cases that are part of an exempted 

demonstration project have a separate case classification so that any errors 

may be excluded from the case error rate, payment error rate and 

underissuance error rate. 

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FNS HANDBOOK 310 

Nonexcluded variances that directly contribute to the error determination (i.e., 

ineligibility or an overissuance or underissuance) shall be coded and reported in 

Section VI of the FNS-380-1. The reviewer shall list all such variances by 

element and indicate the cause of the variance. Excluded variances resulting 

from correctly processed information obtained from an automated Federal 

information exchange (FIX) system, such as SDX or BENDEX, shall be coded and 

reported as variances in Section VI, but they shall not be used in the error 

determination. A State at its option may require other variances to be 

reported in this section. 

Concerning the FSQCS, there are six protected fields that cannot be edited 

after Federal subsampling: 

• Item 4 - Stratum 

• Item 5 - Disposition of Review 

• Item 6 - Review Findings 

• Item 7 - Amount of Error 

• Item 8 - Coupon Allotment 

• Item 17 - Case Classification 

The State Agency may request that the FNS Regional office edit these fields 

prior to Federal subsampling. Cases originally coded not completed or not 

subject to review can be edited at anytime until the end of the reporting 

period. 

182 Negative Cases. (See Chapter 13 and Appendix D.) For each 

negative case in the sample, the State agency shall complete a Form FNS-245, 

Quality Control Food Stamp Negative Case Action Review Schedule.

190 DISPOSITION TIMEFRAMES. Each case selected in the samples 

of active and negative cases shall be accounted for by classifying it as 

completed, not completed, or not subject to review. Ninety percent of all 

cases selected in a given sample month shall be disposed of and reported to 

FNS within 75 days of the end of the sample month. All cases selected in a 

sample month shall be disposed of and the findings reported to NCC within 95 

days of the end of the sample month. A case shall not be reported as "not 

completed" solely because the State agency was unable to process it in 

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accordance with these reporting requirements. Instead, the State agency shall 

submit a report to FNS that includes an explanation of why the case has not 

been disposed of, documentation describing the progress of the review to date, 

and the date by which it will be completed. FNS will decide whether the case 

will be considered overdue based on the report. All cases, including cases 

where a household refused to cooperate, must be disposed of by 95 days after 

the end of the annual review period.
FNS HANDBOOK 310 

CHAPTER 2 

BASIC REVIEW PROCESS 

200 GENERAL. This chapter outlines procedures for conducting reviews of 

active cases. It also provides information on certification systems, household 

reporting requirements and the focus of QC reviews. 

210 REVIEW STEPS. The following are general steps to be followed in 

reviews of all active cases. 

211 Determine the Correct Systems. (Refer to section 220.) The 

reviewer must examine State procedures and the certification record to determine for 

the sample month whether the household should have been: 

• Subject to prospective or retrospective eligibility; 

• Subject to prospective or retrospective budgeting; 

• Subject to the change reporting ($100 change in earned income reporting 

or status reporting), monthly reporting, quarterly 

reporting, semi-annual reporting, or an approved waiver. (Refer 

to section 223.) 

212 Review the Certification Record. (Refer to Chapter 3.) The 

reviewer must review the certification record to determine what action was taken on 

the case by the agency. 

213 Conduct a Field Review. (Refer to Chapters 4 and 5.) During the field 

review, the reviewer must interview the household or, when appropriate, the 

authorized representative and obtain verification from collateral contacts. 

214 Determine Which Variances to Include. (Refer to Chapters 6-11.) 

If a difference exists between the information used by the agency and the verified 

information obtained by the reviewer for eligibility or allotment purposes, the 

reviewer must determine if the variance is included or excluded for QC purposes. 

214.1 If the authorized allotment varies by $25 or less from the QC corrected 

allotment(s), all variance(s) shall be excluded from the error determination. There 

are two $25 comparisons. (See Chapter 6.) 

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214.2 Variances resulting from the use of incorrect information at the time of 

certification or recertification must be included. However, in no event will a variance 

be included if there is no difference between the information used by the eligibility 

worker (EW) and that verified in accordance with the time frames specified in 

Chapter 7. This applies to all elements. It applies to each income source and to total 

income. 

Some variances, due to reporting requirements or processing time considerations, are 

excluded. Variances that result from a change in circumstances that should have 

been effective AORD must be included. (See Chapter 7.) 

215 Determine the Correct Amount of Benefits. The reviewer must 

use the verified information to determine if the household was eligible and to 

calculate the correct benefit level for the sample month. (See Chapter 6.) 

216 Determine the Cause of Errors. If the case was ineligible or received 

an overissuance or underissuance of benefits, the reviewer must identify the 

variance(s) that caused such error and determine if it was caused by the household or 

the State agency. 

217 Report. The reviewer must prepare and submit the necessary reports. 

(See section 180.) 

220 CERTIFICATION AND REPORTING SYSTEMS. The reviewer must 

determine which eligibility, budgeting and reporting systems should have been used 

for each household based on the State agency's selection of regulatory options and 

individual household circumstances. 

221 Eligibility. Each household's eligibility for participation in the Food 

Stamp Program is based upon its financial and certain nonfinancial circumstances for 

each month of participation. There are two ways of looking at a household's 

circumstances: 

• Prospectively. Determining a household's eligibility prospectively 

requires the agency to anticipate the household's circumstances for 

each month of participation based upon existing circumstances that are 

expected to remain the same and changes in existing circumstances that 

are reasonably certain to occur; and 

• Retrospectively. Determining a household's eligibility retrospectively 

requires the agency to use known circumstances from a previous month. 

A State may have a one-month or a two-month retrospective system. 

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In either a prospective or a retrospective system, a household determined eligible for 

participation is authorized to receive an allotment for a specific month called the 

issuance month or a series of months referred to as the certification period. 

222 Budgeting. The amount of food stamp benefits a household is entitled to 

during an issuance month may also be determined (or budgeted) prospectively or 

retrospectively. This system may be the same as or different from the eligibility 

system. 

222.1 Prospective. Prospective budgeting requires the agency to anticipate 

what a household's circumstances will be during the issuance month based upon 

existing circumstances and expected changes. As illustrated below, the budget month 

is the issuance month. 

Prospective System

June

Issuance Month and 

Budget Month 

222.2 Retrospective. Retrospective budgeting requires the agency to use 

circumstances from a prior month to determine the benefits a household should 

receive for the issuance month. As illustrated below, the budget month may be the 

month two months prior to the issuance month or the month preceding the issuance 

month. 

Two-Month Retrospective System

April May June

Budget 

Month 

Processing 

Month 

Issuance 

Month 

One-Month Retrospective System

May June

Budget 

Month 

Issuance 

Month 

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FNS HANDBOOK 310 

223 Reporting. To facilitate the accurate determination of households' 

eligibility and allotment levels after the certification action, households are required 

to report changes to the local agency. A household may be subject to change 

reporting ($100 change in earned income reporting or status reporting), monthly 

reporting, quarterly reporting, semi-annual reporting , or in accordance with an 

approved waiver (See Appendix A). The QC reviewer must review in accordance with 

the option chosen by the State agency for reporting income. 

Any change in circumstances that is not required to be reported cannot result in an 

included variance in the QC error determination process if it was not reported. (See 

Chapter 7.) 

223.1 Change Reporting/Prospectively Budgeted ($100 Change in 

Earned Income Reporting). Households subject to change reporting 

requirements are required to report changes in circumstances, within 10 days of the 

date the change becomes known to the household. However, for income, households 

may be required to report changes as early as within 10 days of the date the 

household becomes aware of the new employment, within 10 days of the date the 

employment begins/stops or within 10 days of the date the household receives the 

first paycheck attributable to the change. Reportable changes include the following: 

• Change in the sources of income, if the change in employment is 

accompanied by a change in the amount of income; 

• Change of more than $50 in unearned income, except a change in a 

public assistance grant (or general assistance grant if the grant and the 

food stamp allotment were jointly processed); 

• Change in the amount of earned income of more than $100 a month 

from the amount last used to calculate the household’s allotment; 

• All changes in household composition; 

• Changes in residence and the resulting change in shelter costs; 

• The acquisition of a licensed vehicle, the value of which is not fully 

excludable according to certification policy; 

• When liquid resources reach or exceed the resource limit; and 

• Changes in the legal obligation to pay child support. 

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FNS HANDBOOK 310 

The QC reviewer must consider a change reported when it is reported to either the 

food stamp or TANF unit. (See section 740 for mass changes.) 

223.2 Change Reporting/Prospectively Budgeted (With Status 

Reporting). Households subject to status reporting requirements are required to 

report changes in circumstances within 10 days of the date the change becomes 

known to the household. However, for income, households may be required to report 

changes as early as within 10 days of the date the household becomes aware of the 

new employment, within 10 days of the date the employment begins/stops or within 

10 days of the date the household receives the first paycheck attributable to the 

change. Reportable changes include the following: 

• Change in the source of income if the change is accompanied by a 

change in income; 

• Changes in wage rate or salary or employment status (part-time to fulltime or full-time to part-time); 

• All changes in household composition; 

• Changes in residence and the resulting change in shelter costs; 

• The acquisition of a licensed vehicle, the value of which is not fully 

excludable according to certification policy; 

• When liquid resources reach or exceed a total of $2,000; 

• Changes in the legal obligation to pay child support` 

223.3 Monthly Reporting. Households subject to the monthly reporting 

requirements must submit complete reports on a monthly basis. These households 

may, but are not required to submit changes outside the monthly report. 

223.4 Quarterly Reporting. Households subject to quarterly reporting are 

required to file a complete quarterly report by the filing date specified on the report. 

At the State agency’s option, households may be required to report all of the 

eligibility factors on the quarterly report form; or to report some of the eligibility 

factors on the quarterly report form and other changes through the use of a change 

report form. However households subject to time limits for able-bodied adults must 

report whenever their work hours fall below 20 hours per week averaged monthly. 

The QC reviewer must review in accordance with the option chosen by the State 

agency. 

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FNS HANDBOOK 310 

223.5 Semi-Annual Reporting. Households subject to limited reporting are 

only required to report changes that cause the household’s gross monthly income to 

exceed 130% of the poverty income guideline for the household size. However 

households subject to time limits for able-bodied adults must report whenever their 

work hours fall below 20 hours per week averaged monthly. Changes must be 

reported no later than 10 days from the end of the calendar month in which the 

change occurred. 

The QC reviewer must consider a change reported when it is reported to either the 

food stamp or TANF unit. (See section 740 for mass changes). 

223.6 Transitional Benefits. There are no reporting requirements during the 

transitional months. The state agency is only allowed to adjust transitional benefits 

based on information reported from another program in which the household 

participates, if the state agency opted to act on these changes.

230 QC REVIEW FOCUS. Certification actions and the authorized allotment 

are reviewed at a point in time. 

231 Certification Errors. The QC review of any active case is based upon an 

examination of the benefits authorized for the household for the sample month. 

The QC system disregards errors made during the issuance process. States have direct 

liability for issuance errors. Therefore, it is not the benefit amount that is actually 

issued which is subject to QC review, but rather the benefit amount authorized 

through the certification process. 

Determining eligibility and calculating the benefit amount are certification functions. 

• In States where these functions have not been computerized, the 

benefits authorized on the worksheet shall normally be reviewed by the 

QC reviewer. 

• In States where an automated computer system determines a 

household's eligibility and benefits, the QC reviewer shall review the 

case based upon the information stored in the computer. 

In reviewing the authorized allotment, the reviewer must examine the actions of the 

EW including any documentation supporting the amount of benefits authorized.

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FNS HANDBOOK 310 

232 Allotment Amount. The full amount of the issuance month's benefits 

including those supplements for the sample month (See section 233) shall be reviewed 

and reported as the allotment in Section D of the FCS-380 face sheet. 

232.1 Actions to ignore. Do not consider the following actions. 

Example of a recoupment: If $10 was 

recouped from a $100 authorized allotment 

and a $90 allotment was issued, review the 

$100 amount.

• Recoupments to 

recover prior food 

stamp overpayments. 

Example of voluntarily returned coupons: 

If a household was authorized a $100 

allotment and it returned $50 in coupons, 

review the $100 amount.

• Coupons voluntarily 

returned by the 

household when there 

was no claim. 

• Claim collections for 

prior months or the 

issuance month. 

Example of a collection of a prior claim: If 

a household was authorized a $100 

allotment and it repaid $25 on a claim, 

review the $100 amount.

Example of a restored benefit: If an 

allotment was authorized for $150 which 

included a $100 allotment for the sample 

month plus $50 to correct an error four 

months ago, review the $100 amount.

• Restored benefits. 

Example of a retroactive benefit: If an 

allotment was authorized for $150 which 

included a $100 allotment for the sample 

month and a $50 allotment for the month of 

application, review the $100 amount.

• Retroactive benefits 

for prior months. 

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FNS HANDBOOK 310 

• Actions taken 

subsequent to the 

sample month. 

Example of a subsequent action: If a $100 

allotment was authorized in the sample 

month and $20 in restored benefits were 

authorized in the following month, review 

the $100 allotment.

Example of a supplement not included: If 

a $100 allotment was authorized for the 

sample month and a $20 supplement was 

subsequently authorized within the sample 

month but after the case was selected for 

QC review, review the $100 allotment.

• Supplement issued 

after QC sampling. 

232.2 Non-Compliance with Other Means-Tested Programs. The QC 

reviewer should review the full amount of the benefits authorized for the sample 

month making any necessary adjustments based on instructions in Section 232.1. 

• If the State applied an optional percentage reduction, the allotment 

would have the percentage reduction already deducted. 

• If there was no penalty applied, it would not have a penalty deducted. 

Below are the three possible situations that can occur for State agencies that have 

chosen to apply a reduced food stamp allotment penalty when an individual has failed 

to take a required action in another means-tested public assistance program. 

Example of an applied penalty: The 

household was originally eligible to receive 

$120 but was authorized $100 after the 

penalty was deducted. It is the $100 

allotment that is subject to QC review. 

• The State agency 

applied the penalty. 

Review the allotment 

authorized, in which 

the penalty has been 

applied. 

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FNS HANDBOOK 310 

Example of a penalty that should have been 

applied, but was not: The household was 

authorized $120. A $20 penalty should have 

been applied. The allotment subject to review 

is $120. In the process of determining the 

error amount, deduct the $20 penalty as the 

last step in column 2 of the computation 

sheet. This will result in an error including the 

penalty amount that should have been used by 

the EW. Compare the $100 in column 2 to the 

$120 in column 1. The result is a $20 

overissuance. 

• The State agency knew 

of the household’s 

failure to take a 

required action in the 

other means-tested 

program and did not 

apply the penalty but 

should have applied 

the penalty. Review 

the allotment 

authorized. In 

determining the error 

amount in this case, 

apply the penalty that 

the EW should have 

 deducted. 

• The State agency did 

not know of the 

household’s failure to 

take a required action 

in another meanstested program so the 

State agency did not 

apply a penalty. 

Review the allotment authorized. Since the agency was not aware of 

the failure to take a required action in the other program there was no 

way to apply the penalty. For this situation, do not apply the penalty in 

the error determination process. Do not deduct the penalty as the last 

step in column 2.

Example of a penalty that was not applied 

and did not have to be: The household was 

authorized $120. Use the $120 as the 

allotment under review. Do not apply the 

penalty in establishing the error amount for 

this case. 

233 Review Date. In no case is the review date the day the QC review is 

conducted. The allotment authorized as of the review date (AORD) shall be the 

benefits subject to review. 

The review date for active cases means a day within the sample month, either the 

first day of the sample month or the day a certification action was taken to authorize 

the sample month's allotment, whichever is later. Certification actions shall include: 

• Initial certifications or recertifications completed during the sample 

month. 

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FNS HANDBOOK 310 

• Changes in the 

allotment that the 

State agency authorized 

before the day on 

which the case was 

sampled. 

Example of a change in the allotment 

before sampling: On September 30, the 

State agency changed the household's 

October allotment, from $105 to $138. 

Quality control sampled the household on 

October 1 for the October sample month. 

Quality control will review the $138 

allotment, because the State agency changed 

the allotment before the day of sampling. 

• Changes in the 

allotment that the 

State agency authorized 

on or after the day on 

which the case was 

sampled, providing the 

State agency processed 

the change(s) in a 

timely manner, in 

accordance with 

certification 

requirements, and the 

change(s) were 

reported by the 

household before the 

Example of a change after sampling, but 

processed timely: A monthly reporting 

household had a baby born on September 22; 

the household reported the birth on 

September 25. On September 28, quality 

control sampled the household for October. 

On September 29, the State agency changed 

the household's October allotment, from $199 

to $269. Quality control will review the $269 

allotment because the State agency 

processed the change in a timely manner as 

mandated by certification requirements.

Another example of a change after 

sampling, but processed untimely: On 

March 3, a household member left a change 

reporting household. On March 20 the 

household reported the member's 

departure. The State agency did nothing. 

On August 3 quality control sampled the 

household for August. On August 5 the 

State agency changed the household's 

August allotment, reducing it from $470 to 

$414. Quality control will review the $470 

allotment, because the State agency 

changed the allotment after the sampling 

date and did not process the change in a 

timely manner in accordance with 

certification requirements.

day on which the case 

was sampled. 

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FNS HANDBOOK 310 

• Supplements that the 

State agency authorized 

before the day on which 

the case was sampled. 

Such a supplement is 

part of the allotment 

that is subject to 

review. 

Example of a supplement authorized 

before sampling: A household applied in 

January and reported semi-monthly income 

of $350 ($700 monthly). The State agency 

certified the household but treated the 

income as biweekly ($752.50 monthly). On 

April 20, the State agency discovered its 

mistake at a recertification interview, and 

on the same day authorized restored benefits 

for the previous months and a $15 

supplement for April. Quality control 

sampled the household on May 2 for April. 

Quality control will include the $15 

supplement because the State agency 

authorized it before sampling. 

Another example of a supplement 

authorized before sampling: A household 

was subject to change reporting and 

prospective budgeting. The sample month 

was August, and the household received its 

regular allotment on August 2. On August 3, 

the State agency discovered that they had 

failed to give the household an earned 

income deduction, so they authorized a $28 

supplement. On August 6, quality control 

sampled the household. The reviewer will 

include the $28 supplement because the 

State agency had authorized the supplement 

before the sampling date. 

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FNS HANDBOOK 310 

• Supplements that the State agency authorized on or after the day on 

which the case was sampled if the State agency processed a change in a

timely manner, in accordance with certification requirements, that was 

reported by the household before the day on which the case was 

sampled. 

• If a State agency authorized a supplement on or after the day on which 

the case was sampled and did not process a reported change in a timely

manner as dictated by certification requirements, the supplement is not 

part of the allotment that is subject to review. 

Example of a reported new member of the 

household: A household was subject to 

monthly reporting and retrospective budgeting 

in a two-month system. The sample month was 

June. On May 30, quality control selected the 

June sample. On May 31, the household 

reported the birth of a baby, so on June 10 the 

State agency authorized a supplement of $89. 

The $89 supplement would not be reviewed and 

the new member would not be included in the 

error determination process because the 

household reported the change after the date 

the case was sampled. 

• If a State agency pulls its QC sample prior to the sample month, and a 

household reports a new member on or after the sampling date, but 

prior to the first day of the sample month, the addition of the new 

household member must be examined to determine if it was properly 

handled, but the supplemental allotment (or change in regular 

allotment) itself is not included in the allotment subject to review. If 

verification was provided prior to the end of the issuance month, a 

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FNS HANDBOOK 310 

2 - 13 

supplement should have been authorized in the issuance month. (See 

section 722.4 for direction on determining variances relative to adding 

new members.) 

Another example of a reported new member 

of the household: A household was subject to 

change reporting and prospective budgeting. 

The sample month was April. On February 25, 

the household reported the birth of a child. 

The State agency took no action on the reported 

change. The household received its April 

allotment on April 1. Quality control sampled 

the household on April 4. On April 7, the State 

agency discovered its mistake and authorized a 

$78 supplement to compensate for the 

improperly treated household member. The 

reviewer will not include the $78 supplement, 

but will include the new member because the 

local office did not process the reported change 

in a timely manner as mandated by certification 

requirements.
FNS HANDBOOK 310 

CHAPTER 3 

CASE RECORD REVIEW 

300 GENERAL. This chapter provides guidance on conducting a review of the 

household's case record, including documentation of verification contained in the case 

record. It also identifies cases that are not subject to review. 

310 PURPOSE OF CASE RECORD REVIEWS. The purpose of active case 

reviews is to: 

• Identify the status of each element of eligibility and benefit calculation 

as documented by the agency; 

• Determine the amount of the allotment authorized for the sample 

month's issuance; and 

• Identify any variances resulting from misapplication of policy by the 

agency. 

320 PROCEDURES FOR CASE RECORD REVIEWS. Case record reviews 

consist of reviewing the household's issuance record, analyzing the certification case 

record(s), reviewing verification documentation and documenting the findings on a 

Form FNS-380. 

321 Household Issuance Record. The reviewer shall review the 

household's issuance record(s) and determine if the household participated in the 

sample month. 

The reviewer may compare information on household size, the certification period 

and the allotment contained in the issuance file to that in the certification file and 

report any differences to the agency for corrective action on an individual basis. 

321.1 On-line EBT. For “on-line” EBT systems where the account memory is 

held in a central computer system, participation has occurred when the sample month 

benefits are posted to the account, with one exception. The exception is that if the 

household has not accessed the account for purposes of withdrawal/purchase of food 

at any time in the three-month period which includes the sample month and the two 

consecutive months immediately after the sample month, then the household shall 

not be considered to have participated in the sample month. 

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321.2 Smart-Card EBT. For "Smart Card" EBT systems, the benefit information 

is resident on the individual card's memory chip and must be updated each month, 

participation has occurred when the card is presented for update for the sample 

month. 

322 Certification Case Record(s). The reviewer shall analyze household 

circumstances, reported changes, certification actions, verification and 

documentation contained in the certification case record(s). The reviewer shall 

review the food stamp case record(s) and, as applicable, the PA case record(s). The 

reviewer may review general assistance, Medicaid and other available records. 

If the reviewer is unable to locate the household's case record, the reviewer shall 

identify as many of the pertinent facts as possible from the household's issuance 

record. 

322.1 Household Circumstances and Certification Actions. The 

reviewer shall review all information applicable to the case AORD, including, but not 

limited to, the application, worksheet and any documented changes in effect AORD. 

The reviewer should become familiar with the household's situation, identify the 

specific facts related to eligibility and the benefit amount and note any deficiencies 

and misapplication of policy. 

322.2 Documented Verification. The case record may contain documents or 

statements that the reviewer may use as verification if the documentation is 

adequate, it is not subject to change, and it applies to the appropriate time period. 

Those elements for which documentation contained in the case record may be used as 

verification must meet the minimum verification standards identified in Chapter 5 of 

this handbook and need not be re-verified by the reviewer during the field review. 

323 Completion of Form FNS-380. (See Appendix B.) During the case 

record review, the reviewer shall complete the FNS-380. The information must be 

recorded in sufficient detail to enable another person to determine the facts of the 

case by reviewing the FNS-380. 

323.1 Face Sheet. This is page one of the Worksheet for Food Stamp Quality 

Control reviews. There are four sections: 

• Section A, provide identifying information in items 1 through 14 from 

information in the case record. 

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• Section B, list persons living in the home identified in the case record. 

• Section C, list significant persons not living in the home associated with 

the household and identified during the certification of the household. 

• Section D, complete the review findings at the conclusion of the review. 

Note: Additional information may be added during the course of the review in 

sections A through C before completing section D.

323.2 Column 2 of the Worksheet. The purposes of column 2 of the FNS380 worksheet is for the reviewer to record information contained in the casefile and 

to assist the reviewer in planning the field review. The reviewer must record 

information from the case record relevant to the most recent certification action of 

the household. 

• The reviewer must use all information applicable to the case AORD, 

including the application and application worksheet in effect AORD. 

• The reviewer should note any pertinent items or questions as well as 

any conflicts in information. 

• In addition, the reviewer should be aware of recorded factors which are 

subject to change, note the reliability of sources used and note any 

missing information. 

• This column may also be used to selectively highlight other points that 

should be considered when conducting the field investigation or to 

remind the reviewer of the case situation. 

The eligibility and allotment elements on the worksheets are grouped together under 

four main groupings called program areas. 

Program Area Codes 

Basic Program Requirements 100’s 

Resources 200’s 

Income 300’s 

 Other 500’s and above 

A 3-digit code is used to identify each element. For reporting purposes, Elements are 

listed in column 1 of the FNS-380. 

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The information recorded in column 2 should include the following: 

• Application 

Information. The 

reviewer should record 

information provided 

by the household on 

the application by 

element. 

Examples of recording information from the 

application: Element 150 Household 

Composition: Application lists three - Jean Jones 

and her two children (Cheryl and Tom). 

Element 221 Real Property: Application shows 

none. 

• Worksheet 

Information. The 

reviewer should record 

the information 

contained on the 

worksheet that was 

prepared by the EW. 

Examples of recording information from the 

worksheet: Element 344 PA: Application shows 

no PA. Worksheet shows PA payments of $400 a 

month. 

Element 363 Shelter: Application and worksheet 

show monthly mortgage payments of $400. 

Element 364 Standard Utility Allowance; 

Application shows monthly expenses of $10.50 

electric, $25 gas and $12 phone. Worksheet 

shows household was entitled to $150 SUA. 

• Verification. The 

reviewer should record 

verification 

documented in the 

casefile or attach 

copies of documentary 

evidence. 

Example of recording information from 

verification: Element 333 SSI: Application 

shows Jean Jones received $225 a month. 

Worksheet shows $235 a month. The EW verified 

$235 by reviewing the April (date of the report) 

SDX listing.

• Other Information. The reviewer should record all other information 

from the casefile that is relevant to the case AORD, such as case 

history information that has a bearing on the household's circumstances 

and changes that were reported or otherwise became known to the 

EW. 

• Misapplication of Policy. The reviewer should record any 

misapplications of policy such as: failure to use the correct income 

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conversion factor, allowing an earned income deduction for unearned 

income or allowing a medical deduction for members who are not 

elderly or disabled. The reviewer should also record mathematical and 

transposition mistakes. 

323.3 Computation Sheet. Fill in column 1, Eligibility Worker Information, 

by recording the figures the EW used to compute the allotment for the sample month. 

324 Ineligible Households. If during the case review the reviewer can 

determine and verify that the household was ineligible, the reviewer can terminate 

the review at that point, provided that if the determination is based on information 

that was not obtained from the household, then the reviewer shall resolve the 

difference to determine which information is correct. The reviewer shall recontact 

the household and discuss the difference unless the household cannot be reached or 

refuses to cooperate. When resolving conflicting information, the reviewer shall use 

his/her best judgment based on the most reliable data available and shall document 

how the differences were resolved. 

330 CASES NOT SUBJECT TO REVIEW. Certain types of cases are not to 

be included in the QC sample. These cases are normally eliminated in the sampling 

process; however, if such cases reach the reviewer, the reviewer shall terminate the 

review at the point when a determination is made that the case is not subject to 

review. The reviewer must complete items 1 through 7 and item 68 of an FNS-380-1. 

An FNS-380 has to be partially completed for these cases. The reviewer must provide 

identifying information and adequately document the FNS-380 to show that the case 

meets the not subject to review criteria. Otherwise, the case will be considered a 

not completed case. All cases that meet the criteria in sections 331 through 338 must 

be coded as not subject to review. 

331 Oversampling. Cases dropped as a result of oversampling are not 

subject to review. 

332 Cases Listed in Error. Households listed in error as active cases are 

not subject to review. They include but are not limited to: 

• Negative cases appearing in the active sample; 

• Households that did not participate in the food stamp program for the 

sample month, including suspended cases and those that were eligible 

for zero benefits before any recoupments were made. Households are 

considered to have participated if they meet the active case definition 

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in section 130. (See section 321 for details regarding participation in 

Electronic Benefit Transfer type systems); 

• Households that received restored benefits but were otherwise not 

participating based upon an approved application; 

• Households that received retroactive benefits for the sample month. 

This includes households that applied for participation in the sample 

month, but were not certified until the following month; and 

• Households that participated based on an expired ATP. 

333 Disaster Cases. Households certified under disaster procedures 

authorized by FNS because of a natural disaster are not subject to review. 

334 Cases Pending a Hearing. Households that are appealing an adverse 

action when the review date falls within the time period covered by continued 

participation pending the hearing are not subject to review. This includes PA cases 

certified under joint processing that are under appeal. For jointly processed cases 

this provision applies even if only the PA grant is under appeal, if the food stamp 

benefits are frozen pending the decision on the PA grant appeal. A case remains not 

subject to review, even if the hearing decision has been rendered by the time of the 

review, if the case was still pending the hearing decision as of the review date. 

335 Intentional Program Violation Cases. Cases are not subject to 

review if as of the date the case is selected for QC sampling: 

• The case has been referred for investigation to the state's fraud 

investigation unit, and the investigation is scheduled to begin within 5 

months of sampling; 

• The case is under active fraud investigation; or 

• The case has a pending administrative or judicial IPV hearing. 

"Scheduled" means that an actual date for the investigation to begin has been 

assigned. 

"Under active investigation" means that the fraud investigator has begun to actually 

explore the details of an apparent client caused overissuance. To be considered 

"active" the investigation must be in progress. It does not mean that the case has only 

been referred for investigation and accepted by the fraud investigation unit. 

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336 All Household Members Have Died. The case is not subject to 

review if all the household members who could be interviewed died before the review 

could be undertaken or completed. The availability of an authorized representative 

for interview does not make this case subject to review. 

337 Household Moved Out of State. The case is not subject to review if 

all the household members who could be interviewed moved out of State and have not 

returned by the time the reviewer attempts to contact the household. The 

availability of an authorized representative for interview does not make this case 

subject to review. 

338 Unable to Interview. Cases are not subject to review if the interview 

cannot be completed because all individuals who could be interviewed: 

• Have been hospitalized, incarcerated or placed in a mental institution 

and are expected to remain there for 95 days after the end of the 

sample month; or 

• Cannot be located after all reasonable efforts to do so have been made 

and documented as provided in section 442.1. 
FNS HANDBOOK 310 

CHAPTER 4 

FIELD REVIEWS 

400 GENERAL. This chapter provides guidance on conducting field 

reviews. The two basic activities involved in a full field review are (1) 

interviewing the household and (2) making collateral contacts. 

410 PURPOSE. The purpose of a field review is to obtain all 

relevant information about the household's actual circumstances which 

relate to the household's eligibility and benefit level for the sample 

month's issuance and to verify and document the information. A full field 

review must be conducted for all active cases that are subject to review 

except as otherwise provided in this chapter or ineligible cases as provided 

in section 324. 

411 Alaska Cases. A full field investigation is not required for 

cases sampled in isolated areas of Alaska which are not reasonably 

accessible considering regularly scheduled commercial air service, 

available lodging and automobile or public transportation. 

For example, the area could be considered not reasonably accessible if the 

reviewer has to stay overnight because of airline schedules and there is no 

suitable lodging. The area could also be considered not reasonably 

accessible if the reviewer could not leave an area within a reasonable 

period of time after conducting the review. For example, the review(s) 

may take several hours but the reviewer would not be able to fly out for 

several days. An area could also be considered not reasonably accessible 

if there is no available ground transportation such as rental cars or public 

transportation that would be needed to conduct a face-to-face interview. 

In such cases, at least one attempt to contact the household, by telephone 

for example, must be made and documented. The review of such cases 

can then be completed by means of a review of the case record and by 

collateral contacts. 

412 Limitations on Information Sought. The reviewer may 

examine only those circumstances related to the household's eligibility 

and benefit level for the sample month's issuance. For example, the 

reviewer may not require that he/she be given access to a safe deposit 

box. The time periods for which information must be sought and verified 

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FNS HANDBOOK 310 

will vary depending on the household's eligibility, budgeting and reporting 

systems and whether income and expenses have been averaged or 

prorated. In addition, for reasons of reviewer safety, and so that quality 

control can not possibly interfere with any ongoing law enforcement 

activities, under no circumstances shall the reviewer question the 

household regarding the possibility of ineligibility due to an illegal 

drug conviction or possible status as a fleeing felon. (For details on 

this limitation of information sought, see the specific review procedures 

for disqualified household members in section 848.) 

413 Completion of Form FNS-380, Column 3 of the 

Worksheet. During the field investigation, the reviewer must complete 

column 3 of the FNS-380. The reviewer must document the analysis of 

each element. This includes documenting confirmation of information in 

column 2. Reviewers are responsible for resolving inconsistencies of 

information discovered during the review and documenting the results in 

column 3.

414 Planning the Field Review. Prior to conducting the 

interview, the reviewer should review the case record to identify areas 

where particular attention is warranted, e.g., conflicts in information or 

gaps in coverage. To facilitate the field review, the reviewer should also 

identify elements which were adequately verified and documented in the 

case record and need no further attention during the field review in 

column 3 of the FNS-380 worksheet. The reviewer must arrange for a 

personal interview with the household and arrange for obtaining 

verification from collateral contacts. 

415 Arranging for Verification. When adequate documentation 

of verification is not contained in the case record, the reviewer shall 

arrange for verification from collateral contacts. For QC purposes, a 

collateral contact is a source of information that can be used to verify 

household circumstances. The reviewer should note those elements that 

require additional verification and obtain the name, address, and 

telephone numbers of those sources from the household during the 

interview. 

420 HOUSEHOLD INTERVIEW. The QC reviewer shall conduct a 

face-to-face interview for active cases subject to review to determine the 

identity of the applicant and whether the household did exist and to 

explore household circumstances affecting the sample month's eligibility 

and allotment. 

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An interview is required for all cases except: 

• Certain Alaska cases as provided in section 411, 

• When the household is determined ineligible based on 

information furnished by the household as provided in 

sections 324 and 441, or 

• The household fails or refuses to cooperate as provided in 

section 442.2. 

During the interview, the reviewer should review documentary evidence 

and obtain names, telephone numbers and addresses for collateral 

contacts. 

In some instances when the interview cannot be completed, e.g., all 

members who could be interviewed have died, the case is not subject to 

review as provided in section 336. 

421 Arranging Household Interview. The reviewer must 

notify the household prior to the interview that it has been selected as 

part of an ongoing review process for QC and that a face-to-face interview 

will be held in the future. The reviewer must make arrangements for the 

interview and may inform the household of the type of information that 

the household will need to have available for the home visit. 

422 Individuals Who Can Be Interviewed. The reviewer must 

interview one of the following individuals: 

• The head of the household; 

• That person's spouse when a member of the household; 

• Another knowledgeable member of the food stamp household 

under review (who can identify the applicant, prove the 

household exists, know circumstances that affect eligibility 

and allotment, and provide documents along with the names, 

telephone numbers and addresses of collateral contacts); or 

• The authorized representative designated by the household 

to make application for the program on behalf of the 

household. An authorized representative may not be 

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FNS HANDBOOK 310 

interviewed if all household members who could be 

interviewed have died or moved out of state. (See sections 

336, 337 and 338.)

423 Location of Interview. The State agency determines the 

location of the face-to-face interview in most cases. For most 

reviews, the interview may take place at: 

• The household’s home, 

• The local certification office, or 

• Another location that is mutually agreeable to both the 

reviewer and the household. 

An office interview must be waived if requested by any household that: 

• Is unable to appoint an authorized representative and has no 

household member able to come to the office because they 

are elderly or disabled, or 

• Is unable to appoint an authorized representative and lives in 

a location not served by a certification office. 

The reviewer should not choose the certification office when that will 

inconvenience a household with: 

• Inadequate public transportation 

• No car 

• Problems with child care 

• Conflicting work hours 

• Conflicting school hours. 

FNS encourages reviewers to interview households in their homes. A home 

visit can be important in determining whether the household lived at the 

address given. A home visit also enables the reviewer to make visual 

observations of pertinent living circumstances. Reviews should not take 

place in the home when: 

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• There is a threat to the reviewer’s physical safety if the 

household lives in a high crime area 

• No one is at home during the day because of employment. 

When the interview is to be held at locations outside the home, the 

household needs to be advised in advance what documentation it needs to 

bring to the interview. 

Interviews cannot be conducted over the telephone except in Alaska under 

circumstances discussed in section 411. 

424 Conducting the Interview. The following are procedures 

for conducting the interview with the household. See Appendix E for 

guidelines on interviewing techniques. 

424.1 Opening the Interview. The reviewer must show proper 

identification and explain the purpose of the interview. Telephone calls 

and letters arranging the interview may have included such an 

explanation, and reference to them may be useful. 

424.2 Dealing With Household Fears During the 

Interview. The reviewer may want to tell the household that it and 

others were selected at random from a list of all households that received 

food stamps in the particular month. The reviewer might also say that the 

purpose of doing this is to find out if households in general are 

participating correctly. The reviewer should assure the household that all 

the information obtained from it and others will be safeguarded, that is, 

the Food Stamp Program allows only certain authorized persons to review 

information about food stamp households. 

424.3 Observation During the Interview. Observation should 

be made of such things as vehicles and evidence about household 

composition. For example, no toys or other evidence of young children 

when the household has stated there are some in the household and/or 

when the case record includes the existence of children in the household 

could warrant further inquiry. 

424.4 Establishing Household Composition. Household 

composition should be established early in the interview process because 

many of the questions to be asked depend on who is in the household. A 

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typical sequence would be to establish residency and then household 

composition. 

424.5 Reviewer Inquiries. The reviewer is required to ask the 

household about each element as it applies to each household member. 

For example, in a two-person household of Mr. and Mrs. Jones with neither 

person exempt from work registration, the reviewer might ask, "Mr. Jones, 

did you work for anyone or were you self-employed during the month of 

October 2002?" That question would be repeated for Mrs. Jones: "Did Mrs. 

Jones work for anyone or was she self-employed during the month of 

October 2002?" Follow-up questions may be required. 

If the reviewer obtains conflicting information about the household's 

circumstances, the reviewer must resolve any inconsistencies by 

recontacting the household. The source(s) of the conflicting information 

may be the client, a collateral contact, or both. If the reviewer 

determines that the new information is correct, the reviewer must 

document why the first statement was incorrect or incomplete. For 

example, if the household reported that it was paying $400 in rent and the 

landlord stated that the household was actually paying $600 in rent, the 

reviewer must ask the household to explain the inconsistency. The 

reviewer must document the correctness of the statement used. 

Example of recording a 

household’s statement: "Mr. Smith 

stated he worked for Charley's 

Choice Computers, 123 Main Street, 

836-1234, during June 2002and 

earned $300a week gross. He 

received 4 paychecks in June. No 

one in the household received any 

other earned income in June 2002. 

He said no one was self-employed 

during June 2002." 

424.6 Recording 

Household Statements. The 

reviewer must record the 

household's statements in column 

3 of the FNS-380 worksheet. 

424.7 Verification. The 

reviewer must verify household 

information during the field 

review if the verification was not 

adequately documented in the 

case file. 

• Reviewing Documentary Evidence. The reviewer must 

review appropriate documentary evidence which the 

household has available. 

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FNS HANDBOOK 310 

• Obtaining Collateral Contacts. The household is the best 

source of names, addresses and telephone numbers of 

persons or sources that can verify household circumstances. 

Therefore, the reviewer must ask the household for this 

information. If the household refuses to provide such 

collateral contacts, one of the following procedures must be 

followed depending on State requirements: 

1. The reviewer should try to find collateral contacts by 

other means. In addition, the reviewer is free to 

gather information from collateral contacts other than 

ones obtained from the household; or 

2. Households must sign a State release of information 

form to allow QC reviewers to contact third parties to 

obtain information pertinent to the household's food 

stamp case. If the household refuses, the reviewer 

must explain to the household that this refusal may 

result in the household no longer receiving food 

stamps. As discussed in section 442.2, such cases may 

be completed if possible. 

430 COLLATERAL CONTACTS. Collateral contacts are needed 

when verification is not present in the case record or from the household. 

Most of the time the information that should be sought from a collateral 

contact will be evident. For example, information about rent would 

generally be obtained from landlords. Reviewers should also keep in mind 

that one collateral contact can sometimes verify several elements. 

Landlords can sometimes also verify household composition. Reviewers 

should plan collateral contacts to make maximum use of third party 

information. To minimize demands on the time of collateral contacts and 

help make the review efficient, reviewers should try to obtain all the 

information they need from a particular collateral contact at one time. 

431 Obtaining Information From Collateral Contacts. 

When contacting collateral information sources, reviewers must identify 

themselves, describe their purpose, and state what information they need. 

It does not mean that the agency suspects that there is something wrong 

with the household's food stamp case. Discussions with collateral contacts 

must focus on information pertinent to the review yet may include factors 

other than those the reviewer planned to verify. For example, a landlord 

who was contacted about rent may mention the presence of a household 

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FNS HANDBOOK 310 

member which neither the case record nor the household indicated. If so, 

the reviewer should obtain any relevant information about the person that 

the landlord may know and contact the household again to resolve any 

inconsistencies. 

432 Collateral Contact Refusal To Cooperate. A third party 

may refuse to provide the information that is needed to verify an element 

of eligibility or basis of issuance. The program has no authority to require 

third party cooperation. If verification cannot be obtained from other 

known sources, the household should be contacted again to obtain another 

source. A collateral's refusal to cooperate should not be interpreted as 

the household's refusal to cooperate. 

433 Documentary Verification. The reviewer shall document 

verification obtained from collateral contacts either by recording the 

information in column 3 of the FNS-380 or by attaching copies of 

documentary evidence. (See section 520 for documentation 

requirements.) 

440 COMPLETION OF FIELD REVIEWS. Field reviews must be 

completed to the point where either ineligibility or the appropriate 

benefit allotment is determined, verified and documented, except for 

cases that are not subject to review as specified in Chapter 3 and cases 

that the reviewer is unable to complete in accordance with section 442. 

441 Cases Determined Ineligible. If during the field 

investigation the reviewer determines and verifies the household's 

ineligibility, the review can be terminated at that point provided the 

determination is based on information obtained from the household. If it 

was obtained from another source, the correctness of such information 

must be reviewed further. The reviewer shall try to resolve the conflicting 

information by recontacting the household unless it cannot be reached or 

refuses to cooperate. This contact may be by telephone, mail or in 

person. If the reviewer is unable to resolve the difference with the 

household, the reviewer shall use his/her best judgment based on the 

most reliable data available and shall document how the final 

determination was made. 

442 Incomplete Case. Every reasonable effort must be made to 

complete all active cases except those that are not subject to review. All 

cases reported as not complete shall be reported to the State agency for 

appropriate action on an individual case basis. 

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442.1 Case Record or Household Cannot Be Found. The 

reviewer shall make all reasonable efforts to locate the case record and 

the household. 

• Case Record. When a case record cannot be found, the 

reviewer must use whatever information is available to contact 

the household and complete the review. 

• Household. This provision does not apply when the household's 

current residence has been located and confirmed but the 

reviewer is unable to talk to the recipient. (See section 442.2 

for refusal and failure to cooperate.) 

The reviewer may be unable to locate the household at the 

address indicated in either the case record or the issuance 

record, and the reviewer is not otherwise aware of the 

household's current address. Some cases may also include the 

characteristic that correspondence from Quality Control to the 

household has been returned with an official Postal Service 

stamp indicating the correspondence was "undeliverable", 

"moved no forwarding address", etc. (In this instance, the official 

Postal stamp may serve as one source of contact; however, a 

letter marked simply unclaimed is not acceptable.) In such 

circumstances the reviewer shall attempt to locate the 

household by contacting at least two sources that the reviewer 

determines are most likely to know the household's current 

address. Such sources may include, but are not limited to: 

1. The local office of the U.S. Postal Service; 

2. The State Motor Vehicle Department; 

3. The owner or property manager of the residence at the 

address in the case record; and 

4. Any other appropriate sources based on information 

contained in the case record, such as public utility 

companies, telephone company, employers, relatives or 

school officials. Appropriate sources for homeless households 

may include soup kitchen personnel, homeless shelter 

operators, or transient housing officials. To qualify as a 

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FNS HANDBOOK 310 

contact, the source must provide feedback; messages left on 

answering machines do not qualify. 

After the reviewer has attempted to locate the household 

and has documented the response of each source contacted, 

if the household still cannot be located and the reviewer has 

documented evidence that the household did actually exist, 

the reviewer shall report the active case as not subject to 

review (Code 2). 

In these situations documented evidence shall be considered 

adequate if it either: 

• Documents two different elements of eligibility or basis of 

issuance, such as a copy of a birth certificate for age, a 

pay stub for income, or 

• Documents the statement of a collateral contact 

indicating that the household did exist. 

If the reviewer fails to undertake these efforts or to properly 

document the efforts, the case is considered incomplete 

(Code 3) as opposed to not subject to review. When the 

reviewer determines that the household never existed, e.g., 

an apparently bogus case, or never lived at the address given 

and the household cannot be located, the case must be 

coded as incomplete (Code 3). 

• Case Record and Household. If neither the case record nor 

the household can be found, the case must be reported as 

incomplete (Code 3) regardless of the State's efforts to locate 

the household. 

442.2 Household Refusal and Failure To Cooperate. One or 

more members of the household may refuse or fail to cooperate with the 

reviewer by refusing or failing to be interviewed or by not providing 

collateral contacts. 

• Determination of Refusal (Code 3). For a determination of 

refusal to be made, the household must be able to 

cooperate, but clearly demonstrate that it will not take 

actions that it can take and that are required to complete 

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the QC review process. An outright refusal to talk to the 

reviewer is an example. In certain circumstances, the 

household may demonstrate that it is refusing to cooperate 

by not taking action after having been given every reasonable 

opportunity to do so, even though the household or its 

members do not state that the household refuses to 

cooperate. 

Examples of 

instances where the 

household's failure 

to take required 

actions in 

completing a QC 

review has the 

effect of a refusal 

to cooperate 

include: 

Example of not responding to a 

letter: The household does not 

respond to a letter that is the 

reviewer’s initial attempt to contact 

the household to arrange an 

interview, that is sent Certified MailReturn Receipt Requested, and is 

signed for by a household member, 

within 30 days of the date of receipt. 

Example of not attending an 

interview: The household does not 

attend an agreed upon interview with 

the reviewer and then does not 

contact the reviewer within 10 days of 

the date of the scheduled interview to 

reschedule the interview. 

The key factor in 

determining 

whether the 

household refused 

or simply failed to 

cooperate with the 

reviewer is whether 

the reviewer can 

verify that the Example of not following up:

Following contact with the reviewer, 

the household does not return a signed 

release of information statement to 

the reviewer within 10 days of either 

agreeing to do so or signing for a 

request from the reviewer sent 

Certified Mail-Return Receipt 

Requested. 

household was 

actually contacted 

and aware that the 

reviewer was seeking the household’s 

cooperation. 

• Determination of Failure (Code 3). For a determination of 

failure to be made, the reviewer must be unable to 

document or verify that the household is unwilling to take 

actions that it can take and that are required to complete 

the QC review process. 

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Examples of 

instances where the 

household would be 

considered to have 

failed to cooperate 

rather than refused 

to cooperate in 

completing a QC 

review include: 

Example of failure, not refusal, when 

the household does not respond: The 

household does not respond to notes or 

messages left at the household’s verified 

address or with a non-household 

member, but the reviewer is unable to 

verify that the household received the 

notes or messages. An exception shall be 

made to this provision for notes or 

messages left with the household’s 

eligibility worker. If the eligibility 

worker states that the notes or messages 

were conveyed to a household member, 

and these notes or messages do not elicit 

a response from the household, then the 

household’s lack of response will be 

considered a refusal to cooperate with 

the reviewer. 

Example of failure, not refusal, when a 

third party does not cooperate: A 

refusal to cooperate comes from a person 

who is not a member of the household of 

record. 

Example of failure, not refusal, when 

the household cannot cooperate: The 

household demonstrates a willingness to 

cooperate with the reviewer, but is 

unable to provide requested information 

because the information is not in the 

possession of the household. 

• Steps To Obtain Compliance In Both Refusal and Failure to 

Cooperate Situation. If a household refused or failed to 

cooperate with the reviewer, certain steps must be taken. 

The case must be reported to the State agency for it to take 

other administrative action. Such action may include such 

things as having the eligibility worker contact the household, 

assigning the case to another QC reviewer and writing the 

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household a letter from a State official such as the Welfare 

Commissioner. 

After such actions, in cases where it has been determined 

that the household refuses to cooperate, the household shall 

be notified of: 

• The penalties for refusing to cooperate with respect to 

termination and reapplication 

• The possibility that its case will be referred for 

investigation for willful misrepresentation. 

If the household refuses to cooperate after such notice, the 

reviewer shall report the household's refusal to the State 

agency for termination of the household's participation 

without regard to whether the reviewer is able to complete 

the case. 

It is the responsibility of the State agency to establish 

whether a household's lack of cooperation is based on a 

refusal or a failure to cooperate. All the steps taken in the 

attempt to gain the cooperation of the household, as 

outlined in this section, shall apply to all cases in which the 

household is determined to have either refused or failed to 

cooperate with the reviewer, except that the reviewer shall 

not report the case to the State for termination when it is 

determined that the household failed, rather than refused, 

to cooperate. 

In instances where the reviewer has verified the 

address/residence of the household, but the household does 

not respond to letters, notes, or messages requesting the 

household’s cooperation, the reviewer shall report the case 

to the eligibility worker for appropriate administrative 

action, including possible termination of the household’s 

eligibility due to loss of contact between the State agency 

and the household. The reviewer shall request that the 

eligibility worker inform the household of the quality control 

review and how to contact the reviewer if the household 

responds to any proposed administrative action. 

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In all cases where the reviewer has determined that the 

household refused or failed to cooperate in completing the 

quality control review, the reviewer shall attempt to 

complete the case without the cooperation of the 

household. If the reviewer is able to determine and verify 

all of the necessary information without the cooperation of 

the household, the case shall be reported as complete even 

if the household could not be interviewed. 

If the reviewer is unable to determine and verify all of the 

necessary information without the cooperation of the 

household, the case shall be reported as incomplete. If, 

after disposition of the case as incomplete, the household 

later agrees to cooperate with the reviewer (at any time up 

until 95 days after the end of the review period) the 

reviewer must reattempt to complete the case. 

All of the steps taken to gain the cooperation of the 

household and to complete the review must be documented 

in the QC review record. 

442.3 Likely Conclusion. If the reviewer cannot obtain the 

required verification (see Chapters 5 and 8 through 11), the reviewer 

should explore other evidence, and review the eligibility worker's actions 

in the context of the overall case record and other QC case findings. If the 

reviewer is unable to arrive at a likely conclusion in such cases, the case 

must be coded as incomplete. If the reviewer is able to arrive at a likely 

conclusion, the case should be coded as complete. The reviewer must 

document the FNS-380 worksheet with the steps taken to meet the 

verification standards and how any alternate information helps 

substantiate the reviewer's determination.

The reviewer cannot use likely conclusion for certain elements, e.g.: 

• Non-citizen status, 

• IEVS for bank accounts and employment, 

• DMV for vehicles, 

• SSN’s and 

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• Work requirements. 

442.4 Late Reviews. Reviews shall not be reported as incomplete 

solely because the reviewer is unable to complete the review in time for it 

to be reported in accordance with the reporting requirements in section 

190 unless the State agency obtains prior FNS approval. 
FNS HANDBOOK 310 

CHAPTER 5 

VERIFICATION AND DOCUMENTATION 

500 GENERAL. This chapter contains the general verification and 

documentation requirements. Refer to Chapters 8 through 11 for specific 

verification and documentation requirements for each element of eligibility 

and basis of issuance. 

510 VERIFICATION. The reviewer must verify from information in the 

certification record or collateral contacts each element of a household's: 

• Eligibility for the point in time dictated by the eligibility rules 

governing the household's sample month participation, and 

• Benefit calculation for the household's budget month. 

511 Sources of Verification. The reviewer shall obtain sufficient 

evidence to establish the factual information for each element under review. 

A list of sources for verification is provided under the standard verification 

section of each element. These sources have generally proven to be the most 

reliable and have been provided to assist reviewers in completing reviews to 

the point when the proper benefit allotment is determined. In most instances, 

reviewers may use sources other than those listed under standard verification 

as long as they meet the criteria for evaluating evidence. (See section 513.) 

For a few elements, only specific sources of verification may be used as 

indicated in Chapters 8 through 11. 

512 Use of the Income and Eligibility Verification System 

(IEVS) Data. For certain elements as specified in Chapters 8 through 11, use 

of IEVS as verification and/or to obtain leads for further investigation is 

mandatory. In using information from IEVS, reviewers should consider the lag 

time necessary for information from provider agencies to be updated, input and 

available for access through IEVS. In some instances this process may run one 

or two quarters behind. As a result of this delay, absence of information from 

IEVS should not be construed as confirmation of the nonexistence of 

income/resources. 

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513 Evaluating Evidence. 

513.1 As the reviewer obtains evidence, he/she must evaluate the 

evidence to ensure that: 

• It meets the verification requirements for the element. 

• It does not conflict with other evidence, or that the conflicts are 

resolved and documented. 

• It proves (either by itself or in combination with other evidence) 

the facts being verified. 

• It pertains to the case member(s) or other individuals to whom it 

is supposed to apply. 

• It establishes the circumstances for the element AORD for the 

appropriate issuance and budget month. 

513.2 In judging the reliability of evidence, the reviewer should consider 

the following: 

• Age of Evidence or Date Evidence was Established. Does the 

date the evidence was established lend credence to the factor 

being established, or does it raise questions? 

• Purpose for Which Established. Why was the evidence 

prepared? Would there be any reason for falsifying the evidence? 

• Basis for the Evidence. What or who is the source? Is it 

reliable? For example, was the information provided for the 

purpose of establishing eligibility? If not, who provided the 

information? 

• Nature of the Evidence. Is the evidence official, such as a birth 

certificate, deed or other legal instrument? 

• Custody of the Evidence and Its Availability. Is the evidence in 

the custody of a person who might have a vested interest in 

changing or slanting the evidence? 

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• Way in Which Specific Information Is Recorded. Does written 

evidence clearly establish the facts of the issue being reviewed? 

For example, is the specific date of birth shown, or does it show 

only age? If it shows only age, does it indicate last or next 

birthday? If the answers to any of the questions raise doubts 

concerning the reliability of the evidence, or the identity of the 

person to whom the evidence pertains, resolve these doubts 

and/or attempt to obtain other types of evidence. 

The verification requirements of each section are the minimum requirements, 

and the reviewer may pursue additional verification. Whether the reviewer 

uses sources from the standard verification listing, other sources or IEVS, error 

determinations will ultimately be based on the household's actual 

circumstances. 

514 Positive and Negative Allegations. Verification standards 

differ in some instances depending on whether the household responds 

positively or negatively to a question. 

For example, if a household admits to having liquid resources, its statements 

are verified in a certain way. If a household denies having liquid resources, its 

statements are verified according to whether or not there is cause to doubt the 

negative allegation. 

Verification standards for negative allegations are included as needed with 

verification standards for positive allegations. 

515 Guidance for Particular Elements. Guidance is provided in 

Chapters 8 through 11 for each element to show what verification is required. 

The State shall use the IEVS data in accordance with Chapter 9 on resources 

and Chapter 10 on income. 

520 DOCUMENTATION. Verification must be documented by 

recording information on the worksheet and, whenever possible, by attaching 

copies of documentary evidence. Documentation must clearly show the basis 

for the reviewer's findings for each individual element. It is the basis for 

determining if a variance exists in an element. 

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521 Documentation 

With Attachments. 

Whenever verification is 

documented by attaching a copy 

of some official document or 

correspondence to the 

worksheet, the reviewer should 

make a note on the worksheet 

for the appropriate element 

referring to the document and 

stating the fact that it verifies. 

Examples of documentation with an 

attachment: Henry Jones stated that he 

was born April 10, 1950. Verified by New 

York City birth certificate number 11234. 

See attached copy.

Sarah Wilson stated her rent was $450 per 

month that did not include utilities. 

Verified as $450 per month for March 2002 

in letter from landlord. See attached copy. 

522 Documentation by 

Recording a Document. 

When a copy of the document is 

not obtainable, the reviewer 

must record the information on 

the worksheet. For 

documentation of documentary 

evidence from official sources 

and correspondence and written 

statements from collateral 

contacts to be considered 

adequate, it must contain the 

following: 

Examples of documentation by recording: 

Wages for John Doe were verified by 

viewing two biweekly pay stubs from Jo 

and Mo's Bakery, 221 Landgrave Place, 

Pleasant, Ohio, check #0631, received 10-

13-02, Gross Amt. $206.50 and check 

#2506, received 10-27-02, Gross Amt. 

$323.80. 

Sarah Wilson stated her rent was $450 a 

month that includes all utilities. Verified 

as $450 for March 2002 from rent records 

viewed at Cherry Tree Apartments rental 

office, 500 Cherry Tree Lane, Blossom City. 

• The source and type of document, its date (processed, signed, 

received or sent), any identification number, and the volume and 

page number if applicable; 

• Where the document is located, if appropriate, such as a 

government office; 

• The pertinent information from the document; and 

• How the information from the document applies to the specific 

period of time. 

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523 Documentation of Verbal Statement by a Collateral 

Contact. When documentary evidence cannot be attached to the QC file, 

information may be obtained verbally from collateral contacts and must 

contain the following information to be considered adequate: 

• The name of the 

contact, Example of documenting a verbal 

statement: Susan Gromolinsky stated that 

the day care center her two children 

attended in October 2000 charged $160 a 

month per child. Verified 2/15/02 in 

statement from Estelle Smith, Director, 

Cheery Child Day Care, phone 275-1662, 

that Tammy and Brenda attended all of 

October 2000 and Susan Gromolinsky was 

charged $320 for that month. 

• Title and 

organization (if 

appropriate), 

• Telephone number 

(if none, so state), 

• Address (if no 

telephone number 

 or if information was 

 obtained in person), 

• Significance to household; and 

• Date or dates of contacts and 

 pertinent information obtained. 

524 Verification and Documentation of Negative Allegations. 

In addition to verification of 

positive factors which the 

household admits, such as 

employment, bank accounts and 

expenses allowable as 

deductions, a household's 

negative allegations, for 

example, that no one in the 

household is employed, no one has a bank account or no one owns a vehicle 

must be verified. Verification of negative allegations needs to be documented 

on the worksheet as does verification of positive allegations. 

Example of documenting a negative 

allegation: Mr. Baker stated that no one in 

the household owned any licensed vehicle 

in July 2002. Verified by Motor Vehicle 

Department. See attached print-out. 

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FNS HANDBOOK 310 

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525 Verification and Documentation in Automated 

Certification Systems. In some State agencies, the certification file may 

be contained wholly or partially in computer files. 

In such instances, the QC reviewer must ensure that verification and 

documentation is sufficient to establish each element of eligibility and the 

benefit calculation for the household's budget month. If not, the QC reviewer 

shall obtain the necessary verification and document the worksheet in 

accordance with the standards in this chapter, and Chapters 8 through 11. 
FNS HANDBOOK 310 

CHAPTER 6 

ERROR DETERMINATION PROCESS 

600 PURPOSE. The purpose of the error determination process is to 

determine whether each active case is eligible, eligible with an overissuance or 

underissuance, or ineligible for the sample month. The term "error" applies to 

the allotment. There is an error in the case if the household is ineligible. 

There is also an error in the case if the household is overissued or underissued 

more than $25. The inclusion or exclusion of any variance in an element may 

affect the error determination process; however, a variance is not an error. 

There are two parts to the error determination process, the eligibility test and 

the allotment test. 

610 THE ELIGIBILITY TEST. The first thing the reviewer has to do is 

to determine whether the household was eligible to receive the sample month 

issuance. The reviewer must use the procedures in Chapters 5 and 7 through 

11 to verify the household's circumstances and to determine whether any 

variances found during the review are to be included or excluded. The 

procedures to be used depend upon the household's eligibility system, as 

distinct from its budgeting system, requirements. If the household was 

ineligible, the error determination process is complete. Column (2) of the 

computation sheet would be completed using the figures determined in the test 

if the necessary figures were obtained during the review. If the review was 

terminated before the household's complete circumstances were established, 

column (2) is not completed. The allotment amount would be zero as the 

entire amount authorized for the sample month was in error. The reviewer 

would enter Code 4 in Item 8 and the amount of the authorized allotment in 

Item 10 of Form FNS-380-1. If the household is eligible, the reviewer must 

continue with the Allotment Test. 

620 THE ALLOTMENT TEST. The allotment test is a two-step 

process. It consists of two comparisons. The first comparison is a comparison 

of an allotment computed based on actual, verified circumstances to the 

authorized allotment. The second comparison is a comparison of an allotment 

based on the verified circumstances excluding appropriate variances to the 

authorized allotment. Prior to doing the allotment comparisons, the reviewer 

must verify the household's actual circumstances appropriate for the 

household's budgeting requirements. 

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621 Comparison I. The first comparison is of an allotment computed 

based on the actual, verified budget month circumstances to the authorized 

allotment. The reviewer must not determine whether there are any variances 

for the purposes of this comparison. 

621.1 Using actual, verified income and deductions for the budget month, 

the reviewer must compute an allotment. This figure must include any 

relevant annualized or prorated amounts, and any applicable standard (i.e., 

SUA, homeless shelter standard, etc.). As appropriate, income received on a 

weekly or bi-weekly basis must be converted to a monthly figure. 

621.2 Then the reviewer must compare the allotment amount computed in 

621.1 to the amount the eligibility worker authorized for the sample month. 

621.3 If the difference between these two allotment amounts is $25 or 

less, the error determination process is over. There is no error in the allotment 

amount authorized for the sample month. The reviewer must use the actual 

verified budget month circumstances for completing column (2) of the 

computation sheet and must enter Code 1 in Item 8 of the Form FNS-380-1. 

621.4 If the difference between these two allotment amounts is greater 

than $25, the reviewer shall proceed to Comparison II. 

622 Comparison II. The second comparison is of the authorized 

allotment and an allotment based on the verified budget month circumstances, 

excluding any variances in accordance with the requirements in Chapters 7 

through 11. 

622.1 The reviewer must compute an allotment, using the verified budget 

month circumstances, excluding any variances as appropriate. 

622.2 Then the reviewer must compare the allotment amount computed in 

622.1 to the amount the eligibility worker authorized for the sample month. 

622.3 If the difference between these two allotments is $25 or less, the 

error determination process is complete and there is no error in the allotment. 

The reviewer must use the figures from 622.1 for column (2) of the 

computation sheet and enter Code 1 in Item 8 of the Form FNS-380-1. 

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FNS HANDBOOK 310 

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622.4 If the difference 

between these two allotment 

amounts is greater than $25, 

there is an error in the allotment 

amount authorized for the 

sample month. The reviewer 

must use the figures from 622.1 

or the figures from 621.1 for 

column (2) of the computation 

sheet and determine the amount 

in error. The figures used (622.1 

or 621.1) must be whichever 

Example of Using Comparison I figures to 

determine the error: For the case under 

review, the figures from 621.1 

(Comparison I) reflect an allotment error 

of a $35 overissuance. The figures from 

622.1 (Comparison II) reflect an allotment 

error of a $65 overissuance. It is the 

figures from Comparison I, the $35 

overissuance which must be used in the 

final error determination of the case. 

figures result in the least Example of Using Comparison II figures 

to determine the error: For the case 

under review, the figures from 621.1 

(Comparison I) reflect an allotment error 

of a $140 underissuance. The figures from 

622.1 (Comparison II) reflect an allotment 

error of a $70 overissuance. It is the 

figures from Comparison II, the $70 

overissuance, which must be used in the 

final error determination of the case. 

quantitative error for the case. 

The amount in error is the 

difference between the two 

allotments. The reviewer shall 

enter Code 2 for "Overissuance", 

or Code 3 for "Underissuance", in 

Item 8 and the amount in error 

in Item 10 of Form FNS-380-1. 
FNS HANDBOOK 310 

CHAPTER 7 

REVIEW PROCEDURES RELATIVE TO CERTIFICATION 

SYSTEMS AND CHANGES 

700 GENERAL. For QC purposes, it is critical that the reviewer 

determine the rules governing each household's participation in the issuance

month in relation to eligibility, budgeting and reporting. The certification 

system determines the period of time for which household circumstances must 

be verified for QC purposes. It also determines when changes must be made 

effective. 

There are two basic eligibility and budgeting systems - prospective and 

retrospective. The prospective eligibility and budgeting system uses the same 

month to consider the eligibility of the household and to budget the income

and deductions in determining benefits. A household’s circumstances are 

considered and the eligibility worker anticipates the circumstances for the 

issuance month based upon recent income and deductions and considering 

information provided by the client. Retrospective budgeting uses the 

circumstances, income and deductions from a specific prior month to 

determine benefit level. The retrospective budgeting system may be either

one-month or two-month systems. The eligibility and budgeting systems may 

vary based upon characteristics and established State procedures. For 

example, the State may have a two-month retrospective budgeting and 

prospective eligibility system for households with earned income and 

prospective eligibility and budgeting for all other households. In addition, 

States have the option of counting TANF income prospectively in an otherwise 

retrospectively budgeted system, and certain new members may be added 

under prospective budgeting for several months to an otherwise retrospectively 

budgeted household. Another factor to consider in determining the correct 

system is whether there was a recent change that should have resulted in a 

household being switched from one system to another. Households that were 

not certified in the previous month are phased into retrospective budgeting 

with "beginning" month treatment. This means that prospective budgeting is

used for one or two initial months depending on the State's system. 

The QC reviewer must use the correct system(s) even if an incorrect system 

was actually used to authorize the sample month benefits. In determining the 

correct system(s), the reviewer must consider the food stamp regulations, 

State options, implemented waivers, and individual household circumstances. 

For example, if a PA household with earned income should have been subject 

to retrospective budgeting for PA and food stamp purposes but it was 

erroneously certified prospectively for both programs, the QC reviewer must 

use the retrospective budgeting review procedures. 

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710 VERIFICATION TIME PERIODS. The procedures in sections 711-

713 specify the time periods for which household circumstances must be 

verified by the reviewer. 

When retrospective budgeting is combined with prospective eligibility, the 

reviewer must verify income and deduction information for two months, i.e., 

the budget month and the issuance month. The specific verification standards 

by element in Chapters 8-11 shall be used. 

711 Prospective Systems. (For further information refer to 

Definitions and sections 221 and 222.) 

711.1 Eligibility. For cases subject to prospective eligibility, the 

reviewer shall verify all elements governing the household's eligibility, except 

for income and deductions, AORD. The reviewer shall verify income and 

deductions (when a net income determination is necessary) for the entire 

issuance month. 

711.2 Benefit Level. For cases subject to prospective budgeting, the 

reviewer shall verify all income and deduction elements governing the 

household's benefit level for the entire issuance month. 

NOTE: In a prospective system, the budget month and the issuance month are 

the same. 

712 Retrospective Systems. (Reference Definitions and sections 221 

and 222.) 

712.1 Eligibility. For cases subject to retrospective eligibility, the 

reviewer shall verify all elements governing the household's 

eligibility, except as otherwise provided in this paragraph, as of the 

last day of the budget month. The reviewer shall verify elements 

related to residency, social security numbers, work registration, and 

the transfer of resources AORD. The reviewer shall verify income 

and deductions (when a net income determination is necessary) for 

the entire budget month. 

712.2 Benefits. For cases subject to retrospective budgeting, the 

reviewer shall verify all income and deduction elements governing the 

household's benefit level for the entire budget month. 

712.3 New Members After the Budget Month. If the household 

reported that a new member had or would join the household after the budget 

month and the State was required to add the person by the review date, the 

reviewer shall verify household composition AORD. 

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If the new member was required to be added prospectively because the person 

was not previously participating, the new member's circumstances shall be 

verified AORD except for income and deductions that shall be verified for the 

entire issuance month. If the new member was required to be added 

retrospectively because the person was previously certified in another 

household in the previous month, the new member's circumstances shall be 

verified in accordance with sections 712.1 and 712.2. 

713 Exceptions. 

713.1 Prorated Income and Averaged and Prorated Deductions. 

When income was or should have been prorated over the budget month and/or 

month for which eligibility was determined, the reviewer shall verify the 

amount of such income regardless of when it was received and compute a 

correct monthly amount. The same procedure applies to one-time or periodic 

expenses that were or should have been averaged or prorated. 

713.2 Variances. Information supporting variances must be verified. 

This means that in some instances information must be verified for months

other than the budget and/or issuance month depending on when the error 

occurred. 

For example, for a prospectively budgeted household, if there is a variance 

between the worksheet in effect AORD and the verified sample month 

information, the reviewer must determine and verify if the variance occurred 

at the time of certification or subsequent to that time. 

713.3 Categorical Eligibility. The reviewer shall verify household 

composition AORD and whether all members were authorized to 

receive PA, SSI, an appropriate GA payment in the sample month or 

authorized to receive the benefits of a State Program conferring 

categorical eligibility. This applies even for retrospective eligibility 

determinations. 

713.4 Transitional Benefits. The reviewer must verify the household’s 

eligibility to be certified to receive transitional benefits. This applies whether 

the household has received benefits under transitional criteria or not. 

720 REVIEW PROCEDURES RELATIVE TO REPORTING 

REQUIREMENTS. The types of reporting requirements are: change reporting 

($100/status), monthly reporting, quarterly reporting, semiannual reporting, 

transitional benefits (no reporting) and alternatives to these systems approved 

by waiver. (Refer to Definitions, section 223 and Appendix A.) Because of

State options and waivers, a household may be subject to one reporting 

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FNS HANDBOOK 310 

requirement for all elements or different requirements for different elements. 

The reporting requirements will delineate what has to be reported. 

The reviewer shall use the procedures in this section to determine whether a 

variance resulting from a change in the household’s circumstances must be 

included or excluded from the error determination due to reporting and 

processing time considerations. The reporting time frames are based upon the 

household’s requirement to report certain changes in its circumstances within

the specified time frames as determined by the State agency which can be as 

early as 10 days of the date that the household becomes aware of the change, 

or as late as within 10 days of the date the household receives its first 

paycheck attributable to the change. The exclusionary time periods in this 

section apply to all changes in circumstances unless otherwise specified in 

Chapters 8-11. 

The circumstances as verified by the reviewer for the budget/issuance month, 

including prorated or averaged income and deductions as appropriate, shall be 

compared to the worksheet in effect AORD. If there are no variances in an 

element when the verified circumstances are compared to the worksheet, the 

reviewer must stop the review of the particular element. 

If there is a variance, the reviewer shall determine the correct reporting 

procedure for each element. In some States all elements will be subject to the 

same reporting requirements. This determination shall be based on the State's 

reporting requirements that were in effect for the issuance month. 

721 Changes Relative to Appropriate Month. The reporting 

requirements apply to both prospective and retrospective systems. Based on 

the household's certification system, the reviewer must relate changes to the 

appropriate budget and issuance month in which the change occurred or was 

anticipated. For example, if a change reporting household in a prospective 

eligibility and two-month retrospective budgeting system reported on June 1 

that it anticipated an increase in income in July, the change must be 

considered in determining the household's eligibility for July. The increase in 

income would not, however, affect the household's benefit level until July 

becomes the retrospective budget month, i.e., September. 

722 Change Reporting - $100 Change in Earned Income/ 

Status Reporting. These procedures apply to households that are subject to 

the change reporting requirements in section 223.2 and 223.3 and those items 

that are not included on the monthly or quarterly report or to changes the 

State becomes aware of from a source other than a monthly or quarterly 

report. 

The 30-day and 20-day time periods referenced in this section are based on the 

regulatory requirements for change reporting. The requirements are 10 days

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FNS HANDBOOK 310 

for the household to report changes, 10 days for the State agency to act on 

known changes and a 10-day notice of adverse action period for actions to 

reduce or terminate benefits. State agencies have the option of using the 

same time period for the notice of adverse action as they use for public

assistance purposes. This may be longer or shorter than 10 days. If it is, the 

20-day and 30-day time periods that are related to the change reporting 

requirements shall be adjusted by the same number of days. For example, if a 

State uses a 12-day advance notice of adverse action to be consistent with 

public assistance, the 30-day period for unreported changes shall be changed to

32 days and the 20-day period for acting on reported changes shall be changed 

to 22 days. 

722.1 Changes Prior to the Notice of Eligibility for Initial 

Certifications. 

• Initial Month. Variances that are the result of unreported 

changes that became known to the household subsequent to the

interview shall be excluded if the sample month is the initial 

month. Variances that are the result of changes that were 

voluntarily reported by the household between the time of the

interview and the certification action are included variances 

unless the State had less than 10 days, from the date that the 

change is reported until the date the household is certified to act 

on the change. The date the household is certified is the review

date if the sample month is the initial month. 

• Subsequent Months. Unreported changes that became known or 

occurred between the time of the interview and the date of the 

notice of eligibility shall be treated as though they became 

known to the household on the date of the notice of eligibility. 

722.2 Unreported Changes. The following procedures apply to 

unreported changes under the change reporting requirements. Any variance(s) 

resulting from changes which occurred or the reviewer can document became 

known to the household more than 30 days prior to the review date, shall be 

included in the error determination. Variances resulting from changes that 

became known to the household or occurred 30 days or less prior to the review 

date shall be excluded from the error determination. There are two 

exceptions that are: 

• In a one-month retrospective budgeting system with either 

prospective or retrospective eligibility when the review date is

the first day of the issuance month and the household's issuance 

is after the 15th day of the issuance month, any variances that 

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occurred or became known prior to the 15th day of the budget 

month shall be included in the error determination. 

• In a two-month retrospective budgeting system with either 

prospective or retrospective eligibility when the review date is

the first day of the issuance month, the 30-day period is 

converted to a month's time for simplicity. Therefore, a change 

that occurred or became known during the budget month shall be 

included. Any variance resulting from a change that occurred or 

became known to the household in the processing month shall be 

excluded from the error determination. (See section 721 for 

changes relative to the appropriate month.) 

722.3 Reported Changes. The following procedures apply to reported 

changes under the change reporting requirements. If a change in

circumstances was reported which the State agency was required to effect 

AORD, any variance(s) resulting from the agency's failure to effect the change 

AORD shall be included in the error determination. 

• Two-Month Retrospective System. In a two-month 

retrospective eligibility and/or budgeting system where the 

review date is the first day of the issuance month, any

variance(s) resulting from change(s) that occurred during the 

budget month shall be included in the error determination. Any

variance(s) resulting from change(s) that occurred during the 

processing month shall be excluded. 

NOTE: This does not apply to prospective eligibility. 

• Other. In systems other than two-month retrospective systems 

variances shall be included in the error determination as 

specified below. 

1. Variances shall be included if the change would have resulted 

in an increased allotment, it was reported more than 10 days 

prior to the review date and action on the reported change 

was not pending AORD because the household had not 

submitted the necessary verification. An exception shall be 

made to this provision in those situations where a household 

has applied for initial benefits after the 15th of the month, 

and receives a combined first and second allotment. In such 

situations, if the second month is the sample month, any 

changes occurring in the first month, which the State agency 

is not required to affect for the second month, shall be

excluded from the error determination process. 

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2. Variances shall be included if the change would have resulted 

in ineligibility or a decreased allotment and it was reported 

more than 20 days prior to the review date with two 

exceptions: 

a. If the notice of adverse action expired during the issuance 

month (the sample month), and in a prospective system

the State agency had decided not to effect the change

until the month following the issuance month, the 

variance shall be excluded; or 

b. If the notice of adverse action notice expired on a 

weekend or holiday on which the review date also falls, 

the 20-day period shall be extended by the appropriate 

number of days. Additionally, if the review date falls on 

the day after a weekend or holiday on which the notice

expires, the 20-day period shall be extended for the 

appropriate number of days. 

In regard to all variances covered by this section, if a change 

became known to the household more than 30 days prior to the 

review date but was reported too late for the agency to effect 

the change AORD, any variance resulting from the change shall 

be included in the error determination. 

722.4 New Members. New members who are not already participating 

in another household must be added no later than the month following the 

month in which they were reported. In order to do this, the State may issue a 

supplement. (See section 233) To determine if the reported addition of a new 

member was properly handled for QC purposes, the reviewer must determine if 

the change would increase or decrease benefits. 

• Increase Benefits. If the addition of a new member(s) would 

increase benefits, any variance resulting from the State agency's

failure to include the member in the month after the change was 

reported must be included unless verification was not submitted 

as of the last day of the issuance month. (If timely verification 

was provided prior to the end of the issuance month, a 

supplement should have been authorized in the issuance month.) 

NOTE: If a State agency pulls its QC sample prior to the sample 

month, and a household reports a new member on or after the 

sampling date, but prior to the first day of the sample month,

the addition of the new household member must be examined to 

determine if it was properly handled, but the supplemental 

allotment (or change in regular allotment) itself is not included 

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in the allotment subject to review. In such circumstances, if a

supplemental allotment (or change in regular allotment) was 

authorized then no variance for this situation shall be cited. 

However the new household member, and any income or 

deductions associated with this person, shall be excluded from 

the remainder of the review. The correctness of the amount 

authorized in the supplemental (or change in regular allotment) 

is not subject to examination by QC in this situation. If a 

supplemental allotment (or change in regular allotment) is not 

authorized for the new household member then a variance for 

failure to include the new household member shall be cited. 

• Decrease Benefits. If the addition of a new member(s) would 

make the household ineligible or decrease benefits, the change 

must be handled the same as any other change resulting in 

ineligibility or decreased benefits in accordance with section 

722.3 above. 

• Disqualified Members. When members that have been 

disqualified for intentional program violations or work

requirement sanctions become eligible, they must be added in 

the month after the disqualification period ends. Such changes

shall be reviewed as a reported change for QC purposes because 

the State agency knew about the change. 

722.5 Incorrect Action. In all cases, any variance resulting from the 

agency acting incorrectly shall be included in the error determination. 

722.6 Notices of Expiration. A household's certification period may

have been shortened with a Notice of Expiration because the State agency was 

unable to obtain sufficient information on a change that involved one or more 

elements but the household had not refused to cooperate with the State 

agency. If so, and the sample month is the next to the last or the last month of

the certification period, any variances in these elements resulting from the 

change shall be excluded provided the household reported the change in a 

timely manner. Variances that occurred at the time of certification or 

recertification and those resulting from changes reported in an untimely 

manner shall not be excluded under the provisions of section 722.6. 

723 Monthly Reporting. These procedures apply if the element was 

subject to monthly reporting. 

723.1 One-Month System Where the Element Was Subject to 

Monthly Reporting. 

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• Unreported Changes. In reference to prospective eligibility, 

and/or prospective budgeting (the provisions concerning 

prospective budgeting apply when new members are added under 

prospective budgeting), if the reviewer discovers a variance in an 

element that is the result of a change which became known to 

the household after the budget month, the variance shall be 

excluded from the error determination. 

If the change occurred in, or the reviewer can document that the 

household was aware of the impending change during the budget 

month, the resulting variance shall be included in the error 

determination. 

In reference to retrospective eligibility and/or retrospective 

budgeting, if the reviewer discovers a variance in an element 

that is the result of a change that occurred in the budget month, 

the resulting variance shall be included in the error 

determination. If the changes occurred after the budget month, 

the variance shall be excluded in the error determination. 

An exception shall be made to the provision to include in the 

error determination process any variances resulting from a 

change that occurred in the budget month, in those situations 

where a household has applied for initial benefits after the 15th 

of the month, and receives a combined first and second month 

allotment. In such situations, any changes occurring in the first 

month, which the State agency is not required to affect for the

second month, shall be excluded from the error determination 

process. 

• Reported Changes on the Monthly Report. In reference to 

prospective eligibility and/or prospective budgeting, any 

variance resulting from a change which the reviewer can 

document became known to the household or occurred in the 

budget month and will continue through the issuance month shall 

be included in the error determination. (These provisions 

concerning prospective budgeting apply when new members are 

added under prospective budgeting.) 

In reference to retrospective eligibility and/or retrospective 

budgeting, any variance resulting from a change that occurred in 

the budget month shall be included in the error determination. 

Any variance resulting from the agency's failure to effect a 

change that was reported on the monthly report AORD that the 

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State agency was required to effect shall be included in the error 

determination. 

An exception shall be made to the provision to include in the 

error determination process any variances resulting from a 

change that occurred in the budget month, in those situations 

where a household has applied for initial benefits after the 15th 

of the month, and receives a combined first and second 

allotment. In such situations, any changes occurring in the first 

month, which the State agency is not required to affect for the

second month, shall be excluded from the error determination 

process. 

• New Household Members. If the addition of a new household 

member in the issuance month is reported on the monthly report 

for the budget month, the State agency is required to effect the 

change in the issuance month (the sample month). The reviewer 

must determine if the issuance month's benefits properly reflect 

the addition of the new household member(s). Any variance 

resulting from the agency's failure to add the new member or 

incorrect adjustment of the issuance month allotment shall be 

included in the error determination. 

• State Agency Action. In all cases, any variance resulting from 

the agency acting incorrectly shall be included in the error 

determination. 

723.2 Two-Month System Where the Element Was Subject to 

Monthly Reporting. 

• Unreported Changes. In reference to prospective eligibility 

and/or prospective budgeting any variance resulting from a 

change that became known to the household after the budget 

month shall be excluded from the error determination. If the 

change occurred in, or the reviewer can document that the 

household was aware of the impending change during the budget 

month, the resulting variance shall be included in the error 

determination. (These provisions concerning prospective 

budgeting apply when new members are added prospectively.) 

In reference to retrospective eligibility and/or retrospective 

budgeting, if the reviewer discovers a variance in an element 

that is the result of a change that occurred in the budget month, 

the resulting variance shall be included in the error 

determination. If the change occurred after the budget month, 

the variance shall be excluded from the error determination. 

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FNS HANDBOOK 310 

• Reported Changes on the Monthly Report. In reference to 

prospective eligibility and/or prospective budgeting any variance 

resulting from a change which the reviewer can document 

became known to the household or occurred in the budget month 

and was expected to continue shall be included in the error 

determination. (These provisions concerning prospective 

budgeting apply when new members are added prospectively.) 

In reference to retrospective eligibility and/or retrospective 

budgeting, any variance resulting from a change that occurred in 

the budget month shall be included in the error determination. 

If the change occurred after the budget month, the variance 

shall be excluded. 

Any variance resulting from the agency's failure to effect a 

change reported on the report AORD that the agency was 

required to effect shall be included in the error determination. 

• New Household Members. If the addition of a new household 

member in the processing month (the month before the issuance 

month) is reported on the monthly report received in the 

processing month, the State agency is required to effect the 

change in the issuance month (the sample month). The reviewer 

must determine if the issuance month's allotment properly 

reflected the addition of the new household member(s). Any 

variance resulting from the agency's failure to add the new 

member or incorrect adjustment of the issuance month's 

allotment shall be included in the error determination. 

• State Agency Action. In all cases, any variance resulting from 

the agency acting incorrectly shall be included in the error 

determination. 

724 Reviewing Prospectively Budgeted Elements/Sources in 

an Otherwise Retrospectively Budgeted Case. These procedures

apply if a State agency has elected a budgeting system under which an 

element, or a particular type of source within an element is budgeted 

prospectively while other elements/sources are budgeted retrospectively. An 

example of this would be a system under which all types of income except for 

TANF are budgeted retrospectively while the TANF income is budgeted 

prospectively. The following review procedures apply: 

• Prospectively Budgeted Elements/Sources. These

elements/sources must be reviewed in accordance with 

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prospective budgeting procedures contained in sections under 

722 and 724.1. The procedures for reported changes must be 

applied to both changes reported by the household, and changes

which the State becomes aware of from another source. For 

example, in the case of a State agency which prospectively 

budgets TANF income, and retrospectively budgets all other 

sources of income, a change in a TANF grant would be a change 

that the State agency is aware of since the State agency itself is 

the source of the TANF income. 

 

• Retrospectively Budgeted Elements/Sources. These

elements/sources must be reviewed in accordance with 

retrospective budgeting procedures contained in sections under 

722 (for change reporting elements/sources) or sections under 

723 (for monthly reporting elements/sources), as appropriate. 

724.1 Adding New Members Prospectively to a Retrospectively 

Budgeted Household. In some cases, new members must be added using 

prospective eligibility and budgeting while the remainder of the household is

retrospectively budgeted. This may occur in a two-month system if the new 

member was not already certified to receive food stamps in another household. 

It may occur in other situations if the State has a waiver. The reviewer shall 

determine the number of months a new member is handled prospectively based 

on the regulations, the State's system(s) and waivers. The new person's income 

and deductions from the issuance month shall be added to the other household 

members' income and deductions from the retrospective budget month to 

determine the household's allotment. 

• Verification. See section 712.3. 

• Variances. 

1. If a new member was reported, the reviewer shall determine 

if the new household member and the new member's 

circumstances were handled correctly. Variances resulting 

from the State agency's improper action shall be included in 

the error determination. 

2. If the new member was not reported or not acted on, the 

reviewer shall use the monthly reporting procedures in

section 723 for prospective eligibility and prospective 

budgeting to determine if the variance(s) shall be excluded. 

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725 Quarterly Reporting. The State agency has the option of 

establishing a quarterly reporting system in lieu of change reporting 

requirements. However, able-bodied adults subject to the time limit as 

specified in regulations at 7 CFR 273.24, have an additional requirement to 

report when their work hours fall below 20 hours per week, averaged monthly. 

These procedures apply for cases subject to quarterly reporting requirements: 

A. Quality control reviewers will verify sample month circumstances for the 

elements subject to quarterly reporting. These figures are used in the 

Comparison I allotment test found in Section 621, Handbook 310. 

B. Quality control will correct the worksheet figures for quarterly reporting 

elements for misapplication of policy and computation errors by eligibility 

workers, and for incorrect reporting by the household at the time of the

quarterly report. 

C. Quality control will use the corrected worksheet figures for quarterly 

reporting elements in the error determination. 

D. Elements on the quarterly report that are voluntarily reported by the 

household outside the quarterly report will be reviewed using established 

review procedures. 

E. If the household fails to submit a quarterly report but is allowed to continue 

to participate, quality control will verify actual circumstances for the 

sample month and compare them to the worksheet, using any cited 

variances in the error determination, with the exception of specific 

variances described in Sections 754 - 757, Handbook 310. 

F. If a household was subject to quarterly reporting but was not included in

the quarterly reporting system, the quality control reviewer will use the 

correct system in completing the review of the household’s case per Section 

700, Handbook 310. The reviewer will also apply the same procedure if the 

household was incorrectly included in the quarterly reporting system. 

726 Semiannual Reporting. Under limited reporting, many 

households are only required to report changes that cause the household’s 

gross monthly income to exceed 130% of the poverty income guideline for the 

household size. In general, any variances in the case resulting from changes, 

other than exceeding 130% of the poverty guideline, which occur after the 

certification action to authorize the sample month benefits, shall be excluded. 

Variances that occurred prior to, or at the time of the certification action to

authorize the sample month benefits shall not be excluded under the provisions 

of this section. 

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FNS HANDBOOK 310 

It should be noted that limited reporting households containing an Able Bodied 

Adult Without Dependents (ABAWD) are subject to the additional reporting 

requirement specified in regulations at 7 CFR 273.12(a)(1)(viii). These 

households must report any changes in work hours that bring the ABAWD 

individual below 20 hours per week, averaged monthly. For limited reporting 

cases containing ABAWDs the reviewer must continue to carry out the 

procedures for evaluating the correctness of Time Limited Participation as 

specified in section 850.7 

Note: Some States are operating semiannual reporting under a waiver of some 

of the requirements. (See Appendix A) 

726.1 Variance Determination. The reviewer shall follow these steps 

in completing the error determination: 

• Step 1. Overview of Case Correctness. Compare the QC 

verified sample month circumstances to the amounts and 

circumstances used to authorize the sample month benefits. 

This is the Comparison I allotment test provided for by 

instructions in section 621. If the difference between these two 

allotment amounts is $25 or less, the error determination process 

is over. If the difference between these two allotment amounts

is greater than $25, the reviewer shall proceed to Step 2. 

• Step 2. Evaluating the Correctness of the Certification Action. 

Correct the worksheet amounts and circumstances for

misapplication of policy and computational errors by the 

eligibility worker and for incorrect reporting (including failure to 

report) by the household at the time of the certification action 

that authorized the sample month benefits. 

Compare the QC verified sample month amounts and 

circumstances to the corrected worksheet amounts and 

circumstances. If there are no differences between these two 

allotment amounts, the error determination process is over. The 

reviewer shall use the corrected worksheet amounts and 

circumstances in the error determination. If there is a difference 

between these two allotment amounts, the reviewer shall 

proceed to Step 3.

• Step 3. Evaluating Compliance with Change Reporting 

Requirements. Households are required to report changes that 

result in the gross monthly income exceeding 130% of the poverty 

income guideline for their household size. The reviewer must 

determine if any such changes occurred, and if they did occur 

whether the change must be included in the error determination. 

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FNS HANDBOOK 310 

The reviewer shall compare the sample month income to the 

gross income standard for the household. (See Step 1) 

If the sample month income does not exceed the gross income 

standard then no reportable change has occurred. The reviewer 

will use the corrected worksheet amounts and circumstances in 

the error determination. (See Step 2) 

If the sample month income does exceed the gross income 

standard there has been a reportable change and the reviewer 

must proceed with the next step to determine whether the 

change occurred within the timeframes for reporting and acting 

on changes (See Step 4). 

• Step 4. Evaluating Timeframes for When Changes Occurred. If 

the sample month was the first or second effective month of an 

initial certification action the review procedures in this step shall 

not be undertaken, since insufficient time would have passed for 

any changes to occur which would be required to be acted on by 

the review date. The reviewer must use the corrected worksheet 

amounts and circumstances in the error determination. (See Step 

2) This exception will also apply if, in following the procedures 

in this step, the reviewer is required to examine the 

circumstances of a month, such as the second or third month 

prior to the sample month, in which the household was not 

authorized to participate in the Program for the entire month 

(and thus, was not subject to any Program requirements to 

report changes in household circumstances). Otherwise, the 

reviewer will proceed as follows. 

The reviewer shall compare the income from the month 

immediately prior to the sample month to the gross income 

standard for the household. 

If the income from the month immediately prior to the sample 

month does not exceed the gross income standard then the 

reportable change occurred within the sample month itself, and 

would be excluded from the error determination. The reviewer 

will use the corrected worksheet amounts and circumstances in 

the error determination. (See step 2) 

If the income from the month immediately prior to the sample 

month does exceed the gross income standard the reviewer must 

proceed with the next step to further evaluate whether the 

change occurred within the timeframes for reporting and acting 

on changes.

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FNS HANDBOOK 310 

The reviewer must compare the income from the second month 

immediately prior to the sample month to the gross income 

standard for the household. 

If the income from the second month immediately prior to the 

sample month does not exceed the gross income standard then 

the reportable change occurred within the month immediately 

prior to the sample month, and would be excluded from the error 

determination. The reviewer will use the corrected worksheet 

amounts and circumstances in the error determination. (See step 

2) 

If the income from the second month immediately prior to the 

sample month does exceed the gross income standard then, with 

three exceptions, the change has occurred outside of the 

timeframes for reporting and acting on changes, and the 

reviewer must include the unreported change in the error 

determination. 

Exception 1 requiring the examination of a third month: Some

State agencies have a Notice of Adverse Action (NOAA) period of 

10 days, and have elected to have households report exceeding

the 130% limit within the first 10 days of the month following the 

month in which the change has occurred. Because of these 

circumstances, when the month prior to the sample month 

contains 30 days or less, the entire month prior to the sample 

month, and the entire second month prior to the sample month 

constitute an exclusionary period for QC purposes. The reviewer 

must determine the income from the 3rd month immediately 

prior to the sample month in order to make an error 

determination. The following chart shows which sample months

are affected by these exceptional circumstances which may 

require the examination of a third month. 

Month Prior Sample Month 

February (28 or 29 days) March 

April (30 days) May 

June (30 days) July 

September (30 days) October 

November (30 days) December 

Exception 2 requiring the examination of a third month: Some

State agencies have a NOAA period of 10+ days, and have elected 

to have households report exceeding the 130% limit within the 

first 10 days of the month following the month in which the 

change has occurred. Because of these circumstances, the entire 

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FNS HANDBOOK 310 

month prior to the sample month, and the entire second month 

prior to the sample month constitute an exclusionary period for 

QC purposes. The reviewer must determine the income from the 

3rd month immediately prior to the sample month in order to 

make an error determination. 

Exception 3 requiring the examination of a third month: Some

State agencies have NOAA periods of 10+ days, and have elected 

to have households report exceeding the 130% limit within 10 

days of the date when the change occurs. If the income from the 

second month immediately prior to the sample month exceeds 

the gross income standard because of income received by the 

household in the last few days of the month (within the QC 

exclusionary time frame for the 10+ days NOAA period) the 

reviewer must determine the income from the 3rd month 

immediately prior to the sample month in order to make an error 

determination. If the income from the second month 

immediately prior to the sample month exceeds the gross income 

standard because of income received by the household prior to 

the last few days of the month (outside of the QC exclusionary 

time frame for the 10+ days NOAA period) the reviewer will not 

need to determine the income from the 3rd month immediately 

prior to the sample month in order to make an error 

determination. 

In all instances where a third month must be examined, if the 

income from the third month immediately prior to the sample 

month does not exceed the gross income standard then the 

reportable change occurred within the second month 

immediately prior to the sample month, and would be excluded

from the error determination. The reviewer will use the 

corrected worksheet amounts and circumstances (see step 2) in 

the error determination. If the income from the third month 

immediately prior to the sample month does exceed the gross 

income standard then the change has occurred outside of the

timeframes for reporting and acting on changes, and the 

reviewer must include the unreported change in the error 

determination. 

For non-categorically eligible households subject to the gross 

income test (the household does not contain an elderly or 

disabled member), with one exception (see below), the reviewer 

shall include the unreported change in the error determination 

by finding the household ineligible. 

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FNS HANDBOOK 310 

For categorically eligible households, and for non-categorically 

eligible households that are not subject to the gross income test

(the household contains an elderly or disabled member) the

reviewer shall include the unreported change in the error 

determination by completing an allotment determination based 

upon household circumstances at the time immediately prior to 

the QC exclusionary time frame for the case. 

EXCEPTION: If the State agency: 

1) Has implemented the 130% reporting requirement in Limited 

Reporting by giving the household a flat figure based on the 

number of persons in the household at the time of certification 

and instructing them to report when the household exceeds that 

figure, and 

2) If the QC reviewer discovers that for the months that must be

examined, the household's income exceeded the gross reporting 

limit that the household was given, and 

3) If the QC reviewer discovers that an additional person has 

joined the household, so that although the household's income 

exceeded the reporting figure, it did not exceed the gross 

income limit for the new household size, then 

4) The QC reviewer will not determine the household 

unilaterally to be ineligible. Instead, the QC reviewer will 

complete the error determination with an allotment based on all

of the household's circumstances for the time immediately prior 

to the exclusionary time frame for the case. These are the same 

instructions that the QC reviewer follows in completing the error 

determination on cases that are categorically eligible, and also 

for non-categorically eligible households that are not subject to 

the gross income test (the household contains elderly or disabled

members). 

Households receiving benefits under the limited change reporting option are

not required to report any changes in circumstances other than exceeding 130% 

of the poverty income guideline, during the certification period. As a result, 

unless a change has been processed since the initiation of the certification 

period, the review procedures outlined in this section shall be used in the error 

determination process. If a change in circumstances has been reported since 

the time of certification the reviewer shall use the review procedures in 

section 726.2. 

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FNS HANDBOOK 310 

726.2 Special Circumstances. Reported Changes After the 

Initial Authorization of Semiannual Reporting Benefits. 

Although it is not required to do so, a household may report a 

change in its circumstances, other than an increase in income that 

exceeds 130% of the poverty income guideline, during the period of 

transition. If a change is reported the following special review 

procedures apply. 

• Processed Changes. 

1. Changes that increase food stamp benefits. The eligibility 

worker must process any change in circumstances that would 

result in an increase in the household’s benefits. If the 

eligibility worker has changed the authorized benefits as a 

result of such a change, and the action is in effect as of the 

review date, then the reviewer shall determine the 

correctness of the new authorized benefit in accordance with 

the procedures in section 726.1. 

2. Changes that decrease food stamp benefits. The eligibility 

worker must not process any change in circumstances that 

would result in a decrease in the household’s benefits until 

the end of the certification period unless:

a. the State agency has information about the household’s 

circumstances considered verified upon receipt, or 

b. there has been a change in the PA grant. This also applies 

to the GA grant if the GA grant and food stamps are jointly 

processed. 

If the eligibility worker has changed the authorized benefits 

as the result of one of these changes, and the action is in 

effect as of the review date, then the reviewer shall 

determine the correctness of the new authorized benefit in 

accordance with the procedures in section 726.1. 

For all other changes, if the eligibility worker has mistakenly 

changed the authorized benefits, and the action is in effect as 

of the review date, then a variance exists. The reviewer shall 

complete the error determination using the corrected 

worksheet amounts from the time of the initial authorization 

of benefits. 

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FNS HANDBOOK 310 

• Unprocessed Changes. 

1. Changes that increase food stamp benefits. The eligibility 

worker must process any change in circumstances that would 

result in an increase in the household’s benefits. If the 

eligibility worker has failed to change the authorized benefits 

as the result of such a change, then a variance exists. The 

reviewer shall complete the error determination using 

corrected worksheet amounts and circumstances from the 

time of the reported change. 

2. Changes that decrease food stamp benefits. The eligibility 

worker must not process any change in circumstances that 

would result in a decrease in the household’s benefits unless: 

a. the household has voluntarily requested that its case be 

closed 

b. the State agency has information about the household’s 

circumstances considered verified upon receipt, or 

c. there has been a change in the PA grant. This also applies 

to the GA grant if the GA grant and food stamps are jointly 

processed. 

If the eligibility worker has failed to change the authorized 

benefits as the result of one of these changes, then a 

variance exists. In the case of the first listed change, the 

reviewer shall complete the error determination by 

considering the household ineligible. For the second and 

third listed changes, the reviewer shall complete the error 

determination using corrected worksheet amounts and 

circumstances from the time of the reported change. 

For all other changes, the eligibility worker has acted 

correctly if the authorized benefits have not been altered as 

a result of a change. The reviewer must determine the 

correctness of the benefits in accordance with the procedures 

in section 726.1. 

In regard to any reported changes, if a change in circumstances was reported 

which the State agency was not required to effect as of the review date due to 

the regulatory timeframes for acting on reported changes, any variance(s) 

resulting from the agency's failure to effect the change shall be excluded in the 

error determination. 

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FNS HANDBOOK 310 

727 Transitional Benefits. Transitional benefits are an option that 

a State may choose to provide to households when they leave TANF. If a state 

chooses to provide transitional benefits, a household may receive the benefits 

for a period of not more than 5 months after leaving the TANF program. The 

eligibility worker must recalculate the household’s food stamp benefits by 

removing the TANF to determine the household’s transitional benefit. Those 

benefits are frozen at the new amount throughout the household’s transitional 

period. 

States providing transitional benefits have the option to further adjust the 

household’s benefit in the transitional period to take into account changes in 

circumstances that it learns from another program in which the household 

participates. 

The focus of the QC review will be on whether the household is eligible to 

receive transitional benefits and whether those benefits were calculated 

correctly. If the State chose the option to act on changes from another 

program in which the household participates, the review will also focus on the 

accuracy of the changes. 

727.1 Determining Eligibility for Transitional Benefits. The 

reviewer must determine if the household meets any of the following criteria 

that would render the case ineligible to receive transitional benefits: 

• the household lost its TANF cash assistance because of a 

sanction, 

• the household was disqualified from the Food Stamp Program, 

• the household is in a category of households designated by the 

State as ineligible for transitional benefits. 

If the reviewer verifies that any of these conditions apply, then the 

case must be reviewed in accordance with standard review 

procedures rather than the review procedures for transitional 

benefits specified in this section. If the transitional period was 

longer than allowable, the case must also be reviewed in accordance 

with standard review procedures rather than the review procedures 

specified in this section. 

If the eligibility worker failed to establish transitional benefits for a 

household that should have been receiving transitional benefits, the 

case must be reviewed in accordance with review procedures 

specified in this section rather than the standard review procedures. 

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FNS HANDBOOK 310 

727.2 Changes After the Initial Authorization of Transitional 

Benefits. The state agency is only allowed to adjust transitional benefits

based on information reported from another program in which the household 

participates, if the state agency opted to act on these changes. However, the 

household may choose to be recertified at any time during the transitional 

period. 

Changes after the initial authorization of transitional benefits must be 

reviewed as follows: 

• State opted to act on changes reported by another program in 

which the household participates. If the eligibility worker has 

changed the authorized transitional benefit as the result of the 

state’s option, and the action is in effect as of the review date, 

then the reviewer must determine the correctness of the new 

transitional benefit. (See section 727.3.) If the eligibility worker 

has failed to change the authorized transitional benefits as the 

result of such a change, and the change should have been in 

effect as of the review date, then a variance exists. The reviewer 

must complete the error determination using the corrected 

worksheet amounts from the time of the reported change. 

• State opted not to act on changes reported by another program 

in which the household participates. If the eligibility worker has 

changed the authorized transitional benefit and the state has not 

chosen the option, then a variance exists. The reviewer must 

complete the error determination using the corrected worksheet 

amounts from the time of the initial authorization of transitional

benefits. (See section 727.3.)

• The household chose to be recertified. The household has an

option of being recertified at any time during the transitional 

benefit period, thus ending transitional benefits. Those cases will 

be reviewed using standard review procedures. 

• Duplicate Participation. If a transitional benefit household 

member moves out and becomes a member of another certified 

household, the eligibility worker must act on this change to avoid 

possible duplicate participation. Therefore, the person leaving 

(along with that person’s income and deductible expenses) must 

be removed from the transitional benefit household. If the 

eligibility worker has failed to remove the person who has left the 

household, a variance would exist in the case. If the eligibility 

worker has changed the authorized transitional benefits as the 

result of such a change, and the action is in effect as of the 

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review date, then the reviewer must determine the correctness of 

the new transitional benefit in accordance with the procedures in

section 727.3. 

727.3 Variance Determination. There are separate procedures to 

follow depending on whether the State has chosen the option to act on

changes. The reviewer must follow these steps in completing the error 

determination: 

• The State did not choose the option to act on changes from 

another program in which the household participates: 

Note: Comparison I is not done first in this process. By doing the 

steps directed below, if the transitional benefit is correctly 

calculated, the review process is minimized by eliminating 

verification of the sample month circumstances. 

Step 1. The reviewer must determine whether the household is 

eligible to receive transitional benefits. 

Step 2. Determine whether the transitional benefit amount was

correct based on the food stamp allotment authorized prior to the 

calculation of the transitional benefit. To do this, the reviewer 

must use the food stamp benefits for the last month TANF 

benefits were received, subtract the TANF benefit and then

recalculate the food stamp benefits. If there is not a difference 

greater than $25 in the case, the case is correct and the QC 

review process is over. If there is a difference greater than $25, 

go to step 3. 

Step 3. Verify the sample month’s amounts and circumstances. 

Calculate a benefit amount based upon the sample month 

circumstances. Compare to the allotment actually received. (This 

step is similar to Comparison I in the QC review process and 

provides the State a second opportunity to have a correct case.) 

The case is correct if the difference between these two allotment 

amounts is $25 or less. If the difference is greater than $25, 

there is an error in the case. Use the lower amount from either 

step 2 or step 3. 

• The State chose the option to act on changes from another 

program in which the household participates:

Note: Comparison I is not done first in this process. By doing the 

steps directed below, if the transitional benefit is correctly 

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calculated, the review process is minimized by eliminating 

verification of the sample month circumstances. 

Step 1. The reviewer must determine whether the household is 

eligible to receive transitional benefits. 

Step 2. The reviewer must determine if any changes have 

occurred that were required to be included in the transitional 

benefit calculation because they were reported to another 

Program and acted upon. 

Step 3. Determine whether the transitional benefit amount was

correct based on the food stamp allotment authorized prior to the 

calculation of the transitional benefit. To do this, the reviewer 

must use the food stamp benefits for the last month TANF 

benefits were received, subtract the TANF benefit, account for 

any changes that should have been made and then recalculate the 

food stamp benefits. If there is not a difference greater than $25 

in the case, the case is correct and the QC review process is over. 

If there is a difference greater than $25, go to step 4. 

Step 4. Verify the sample month’s amounts and circumstances. 

Calculate a benefit amount based upon the sample month 

circumstances. Compare to the allotment actually received. (This 

step is similar to Comparison I in the QC review process and 

provides the State a second opportunity to have a correct case.) 

The case is correct if the difference between these two allotment 

amounts is $25 or less. If the difference is greater than $25, 

there is an error in the case. Use the lower amount from either 

step 3 or step 4. 

730 BEGINNING MONTHS. Households otherwise subject to 

retrospective budgeting are certified under prospective eligibility and 

budgeting during "beginning" months. The first beginning month cannot follow 

any month in which the household was previously certified. The reviewer must 

determine which households are eligible for beginning month treatment and if 

the State had one or two beginning months. 

731 Verification Time Periods. Since households entitled to 

"beginning month" treatment are subject to prospective eligibility and benefits, 

the reviewer shall verify household circumstances AORD except that income 

and deductions shall be verified for the entire issuance month. Monthly income 

may be averaged or converted during beginning months. 

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732 Changes. Beginning month treatment does not affect the 

household's reporting requirements unless the State has a waiver. Therefore, 

the following procedures apply. 

732.1 Elements Subject to the Change Reporting 

Requirements. Use the change reporting procedures in section 722. 

732.2 Elements Subject to the Monthly Reporting 

Requirements. (This section applies the monthly reporting requirements to 

prospective budgeting for beginning months.) 

• First Beginning Month. When the sample month is the first 

beginning month, all unreported changes that became known to 

the household subsequent to the interview shall be excluded. 

• Second Beginning Month. When the sample month is the second 

beginning month, the following procedures apply. 

1. One-Month System. Any unreported changes that occurred 

or became known to the household prior to the budget month

which will continue through the budget month shall be 

included in the error determination. (An exception shall be 

made to this provision in those situations where a household 

has applied for initial benefits after the 15th of the month, 

and receives a combined first and second allotment. In such 

situations, any changes occurring in the first month, which 

the State agency is not required to effect for the second 

month, shall be excluded from the error determination 

process.) Any variances that occurred or became known 

during the budget month shall be excluded. For reported 

changes, use the procedures in section 723.1. 

2. Two-Month System. For the second beginning month, all 

unreported changes that became known to the household 

subsequent to the interview shall be excluded. Variances 

resulting from changes that occurred or became known to the 

household prior to that time shall be included. If a household 

applies in one month, but is not interviewed until the 

following month, the first monthly report will not be due until 

the third month. 

In such cases, the missing report review procedures in section 

751 shall not apply for the first three months. 

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740 MASS CHANGES.

741 General. State agencies are required to change the benefit level 

of individual households when certain Federal and State agency changes are 

made which affect the entire food stamp caseload or a significant portion of 

the caseload. Individual notices of adverse action cannot be sent for these 

changes. Variances that result from untimely implementation as defined by

certification requirements, or incorrect implementation shall be included in 

the error determination. 

741.1 Regulatory Changes. When the Federal Food Stamp Program 

regulations are changed, the implementation dates are specified in the 

regulations. For purposes of prospective eligibility and prospective allotments, 

the implementation date is that specified in the regulations. For purposes of 

retrospective eligibility and retrospective allotments, the implementation date 

is the first budget month that includes the implementation date. For example, 

if the implementation date for a new regulation is January 1, the first 

allotment in a two-month, retrospective system that would be affected would 

be the March allotment. This policy applies to all Federal regulatory food 

stamp changes unless otherwise specifically stated in the regulations except for 

adjustments to eligibility standards, allotments, and deductions that go into 

effect for all households at the same time. (See instructions in section 741.2.) 

Variances resulting from untimely application of the regulatory change to the 

case under revision, in accordance with certification requirements, or incorrect 

implementation shall be included in the error determination. (See section 756 

for instructions regarding the 120-day variance exclusion period.) 

741.2 Periodic Food Stamp Adjustments. Federal adjustments to 

the eligibility standards, allotments, and deductions and any annual seasonal 

State adjustments to utility standards go into effect prospectively for all 

households at a specific point in time. Variances that result from untimely 

implementation as defined by certification requirements, or incorrect 

implementation shall be included in the error determination. 

741.3 PA Changes. When the State agency has at least 30 days' advance 

knowledge of the amount of overall adjustments to PA payments, the State 

agency shall change food stamp benefits in the same month as the PA change. 

If the State agency has less time, it is required to make the food stamp change 

no later than the month following the PA change. 

Variances that result from untimely processing, in accordance with 

certification requirements, or incorrect processing of food stamp changes shall 

be included in the error determination. 

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This section also applies to GA mass changes if the State agency administers 

the GA program. 

741.4 Social Security and Other Federal Mass Changes. State 

agencies are required to make food stamp changes to reflect cost-of-living 

adjustments (COLAs) and any other mass changes under RSDI, SSI and other 

Federal programs such as veteran's assistance under Title 38 of the United 

States Code and the Black Lung Program when information on COLAs is readily 

available and applicable to all or a majority of those programs' beneficiaries. 

• Monthly Reporting Households. These households are required 

to report income changes resulting from Federal mass changes

(other than PA) on their monthly reports. The reviewer must 

handle such changes as any other income change that was 

required to be reported on the monthly report. Refer to section 

723 on monthly reporting to determine which variances to 

include. 

• Non-monthly Reporting Households. The State agency is 

required to automatically adjust the food stamp benefit level for 

households affected by these mass changes. Variances resulting 

from untimely processing, in accordance with certification 

requirements, or incorrect processing of food stamp changes 

shall be included in the error determination. (The reviewer 

should check to see if the State agency's procedures provide for 

using a flat percentage rather than the exact amount of a social 

security or SSI change.) The food stamp change must be made no 

later than the second allotment after the change in income 

became effective. For retrospectively budgeted households, the 

change shall not be made prior to the first budget month it

became effective. For example, an increase in SSI in January in 

a two-month retrospective system would be made when January 

becomes the budget month, i.e., March. 

750 OTHER INCLUDED AND EXCLUDED VARIANCES. Refer to 

Chapter 6 for the error determination process, Chapters 8-11 for errors by 

specific element. 

751 Missing Reports. The reviewer shall not determine the household 

ineligible solely because a required report is missing. The reviewer shall verify 

the household's circumstances in the normal manner and compare them to the 

worksheet. Any variances that result when there is a missing report shall be 

included in the error determination, except the specific variances described in 

sections 754-757. 

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752 Expired Certification Periods. The reviewer shall not 

determine a household ineligible solely because its certification period has 

expired. The reviewer shall verify the household's actual circumstances for the 

appropriate sample or budget month and compare them to the worksheet. Any 

variances which result shall be included in the error determination, except the 

specific variances described in sections 754-757. 

753 Expedited Service. For expedited service cases, variances in

elements for which verification was postponed are excluded provided the 

household's identity was correct. Such elements need not be verified by the 

reviewer. This provision only applies to those households certified in the 

sample month that were correctly processed under the procedures for 

expedited service and entitled to expedited services (based on the application 

and the interview). If a lack of documentation prevents the reviewer from 

determining that the case was certified under expedited procedures, the

review procedures in section 753 do not apply. 

The provision that variances will be excluded in elements for which verification 

was postponed normally is applicable only to the first months' issuance. 

However, in some situations, the household applies after the 15th of the 

month, and is entitled to expedited service and for waived verification for, the 

first and second months' benefits. In such situations the variance exclusion 

provisions of this section will apply to appropriate elements for both the first 

and second months. 

This provision also applies when the household was not determined to be 

eligible for expedited service at the time of application but during the 

interview was determined eligible provided: 

• The household was not determined eligible for expedited service 

at the time of application because sufficient information was not 

available on the application to make that determination, or 

• The household's circumstances changed between the time of 

application and the time of the interview such that the 

household became eligible for expedited service after it 

submitted the application. 

754 Information From a Federal Source. Any variance resulting 

from use by the State agency of information concerning a household's or 

individual's circumstances received from any Federal source is excluded 

provided that such information is processed correctly by the State agency. 

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7 - 29 

755 SAVE. Two variances relating to the SAVE program are excluded. 

• A variance based on a verification of non-citizen documentation 

by INS if the State agency properly used SAVE and the State 

Agency provides the reviewer with: 

1. The non-citizen’s name; 

2. The non-citizen’s status; and 

3. Either the Alien Status Verification Index (ASVI) Query 

Verification Number or the INS Form G-845, as annotated by 

INS. 

• A variance based on the State agency's wait for the response of 

INS to the State agency's request for official verification of the 

non-citizen’s documentation if the State agency properly used 

SAVE and the State Agency provides the reviewer with either: 

1. The date of request if the State agency was waiting for an 

automated response; or 

2. A copy of the completed Form G-845 if the State agency was 

waiting for secondary verification from INS. 

756 Application of New Regulations. The reviewer will exclude 

variances resulting from the application of a new Food Stamp Program Federal 

regulation or implementing memorandum for a 120-day period of time in 

accordance with specific instructions contained in the regulation or 

implementing memorandum, provided that the State agency has implemented 

the regulation. The variance exclusion period will only fully apply if the State 

agency has implemented the regulatory change in a timely manner and in 

accordance with the provisions of the regulatory change. 

757 Federal Written Policy. The reviewer will exclude variances 

resulting from incorrect written policy that a State Agency acts on that is 

provided by a USDA employee authorized to issue Food Stamp Program Policy 

and that the State agency correctly applies.
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CHAPTER 8 

NON-FINANCIAL ELIGIBILITY CRITERIA 

800 GENERAL. This chapter discusses verification requirements and 

error determination for non-financial eligibility criteria. 

810 AGE AND SCHOOL ATTENDANCE.

811 Age - 110. Age may be verified for all household members. At a 

minimum, age must be verified when eligibility and/or allotment are affected. 

For example, students under 18 years of age with earned income or persons age 

60 and over with medical expenses or resources. 

For standard verification the reviewer will use the following: 

• Birth certificate 

• Adoption papers or records 

• Hospital or clinic records 

• Church records 

• Baptismal certificate 

• Bureau of Vital Statistics 

• U.S. passport 

• Family Bible records 

• Indian census records 

• JTPA document assigning to or placing in an institution of higher 

learning 

• Social Security records 

• Military records 

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• School records, or a statement signed by school authorities 

• Census records 

• Driver's license 

• Court support order 

• Juvenile court records 

• Child welfare records 

812 School Enrollment. School enrollment is verified in connection 

with children under 18 who have earned income. School enrollment is also 

verified with respect to household members who are 18 and over, but under 50 

and enrolled in post-secondary, vocational, trade, etc. schools and to 

"students" as defined by the Food Stamp Program who are enrolled in 

institutions of higher education. 

812.1 Student Status - 111. A person enrolled at least half-time in an 

institution of higher education is not eligible to participate in the Program 

unless the person meets certain eligibility criteria. The enrollment status shall 

begin on the first day of the school term. Such enrollment shall be deemed to 

continue through normal periods of class attendance, vacation and recess 

unless the person graduates, is suspended or expelled, drops out, or does not 

intend to enroll for the next normal school term (excluding summer school). 

812.2 Standard Verification. School Authorities. 

820 CITIZENSHIP AND NON-CITIZEN STATUS - 130. Only citizens 

and certain legal non-citizens are eligible to participate in the Food Stamp 

Program. 

821 U.S. Citizenship (By Birth or Naturalization). When a 

household's statement that one of its members is a U.S. citizen is questionable, 

the reviewer must verify whether or not the person is a citizen. 

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For standard verification the reviewer will use the following: 

• Birth certificate 

• Naturalization papers from the Immigration and Naturalization 

Service (INS) such as INS Forms I-179 or I-197 

• Passport 

• Hospital record of birth 

• Baptismal record, only when place and date of birth is shown 

• Family Bible 

• Military service papers 

• Indian census records 

• Voter registration card 

If none of the above is available and the household can provide a reasonable 

explanation why verification is not available, the reviewer shall accept a signed 

statement from someone who is a U.S. citizen who declares, under penalties of 

perjury, that the member in question is a U.S. citizen. 

The signed statement shall contain a warning of the penalties for helping 

someone commit fraud, such as, "If you intentionally give false information to 

help this person get food stamp benefits, you may be fined, imprisoned, or 

both." 

822 Non-Citizen Status. If a household member is not a citizen, noncitizen status must be verified. Verification is not required if the household 

member elected not to participate in the Program because they did not wish to 

provide the immigration status or Social Security Number. Verification of noncitizen status can only be accomplished through the documentation specified 

for use at certification. 

 

There are two basic ways that a non-citizen may participate in the Food Stamp 

Program. 

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1) There are some individuals who are eligible based upon their 

origin such as: 

• American Indians born outside the US 

• American Indians eligible for special programs and services 

• Hmong or Highland Laotian, spouses and dependent children 

2) There are other individuals who must be qualified and eligible: 

i. Qualified 

• Lawfully admitted for permanent residence 

• Granted asylum 

• Refugees 

• Paroled into US for at least 1 year 

• Deportation being withheld 

• Granted conditional entry 

• Battered or subjected to extreme cruelty in US 

• Cuban or Haitian entrant 

ii. Eligible (must meet an eligibility requirement to receive 

Food Stamps) 

• Residing in the US for at least 5 years 

• 40 quarters of coverage by SSA 

• Time limitation under certain qualifications 

• Military connection 

a. veteran 

b. active duty 

c. spouse/dependent of a veteran or active duty 

• Lawfully residing in US and one of the following: 

a. receiving assistance for blind or disabled 

b. residing in the US on 8-22-96 and born on or 

before 8-22-1931 

c. now under 18 years old 

• Verification of qualifying status and eligibility are done following 

certification guidelines. In the case of immigrant status, use only 

INS documentation and DOJ guidance to verify qualifying status 

and eligibility status. Some individuals will require additional 

verification of quarters of coverage or military related 

requirements. 

• In the case of non-citizens who qualify for participation in the 

program as a result of veteran’s status or military service, the 

reviewer must verify the status of the individual through the use 

of Department of Defense (DOD) records and forms. Only DOD 

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documentation is acceptable to verify the military service status 

of these individuals. 

• In the case of non-citizens who qualify for participation in the 

program as a result of 40 qualifying quarters of work, the 

reviewer shall verify the eligibility of the individual(s) through 

information from Social Security Administration (SSA) records 

made available to the State agency, or through employer work 

records. Reviewers are not required to re-verify the status of the 

non-citizen with SSA if information is available from the State 

Verification and Exchange System (SVES), which confirms the 

status of the non-citizen, and the quarters of coverage history 

system (QCHS), which provides the number of qualifying quarters 

of work. 

822.1 Reviewer Contact With INS. Only INS documentation is 

acceptable. If verification in the case file is not adequate and the non-citizen 

is unable to provide INS documentation, the reviewer shall obtain the noncitizen’s written consent before contacting INS for verification of non-citizen 

status. If the non-citizen will not provide written consent, the reviewer shall 

not contact INS. If verification of eligible non-citizen status is not provided or 

not provided on a timely basis, the non-citizen shall be considered ineligible. 

822.2 Variances.

• If the reviewer determines that a household member(s) reported 

to be a U.S. citizen or an eligible non-citizen is actually not a 

citizen or is an ineligible non-citizen, the case shall be reported 

as containing a client-caused variance. 

• If the reviewer determines the agency had information of the 

status of the household member(s) as non-citizen(s) that did not 

meet the criteria of any of the classes eligible for participation in 

the program, and failed to take appropriate action to remove the 

individual(s) from the program, the case shall be reported as 

containing an agency-caused variance. 

• A variance also will be coded if the reviewer determines that the 

eligibility worker failed to verify the eligibility status of a noncitizen, as required, and the non-citizen is ineligible for the 

program. 

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In making the error determination, the reviewer will exclude the ineligible 

member(s) in determining the food stamp benefits for the sample month. The 

income and resources of any ineligible member(s) shall be handled in 

accordance with certification policy. 

In addition, if the reviewer determines that any eligible non-citizen(s) have 

been improperly excluded from the household, then a variance will be cited. 

The error determination will be completed by including the eligible noncitizen(s) in the household. 

The appropriate time frames and requirements for reporting and acting on 

changes in the household circumstances shall apply. Deficiencies, other than 

those referenced above, shall not be included in the error determination. 

823 Reports Concerning Illegal Non-citizens. If the reviewer 

determines the presence in the household of a person or persons who have 

entered or remained illegally in the United States, and there is no 

documentation that INS has not declined deportation action, this information 

must be entered on the narrative pages of the worksheet in column 3. A report 

must be forwarded to the local agency identifying the illegal non-citizen as a 

non-household member. QC staff must not contact INS regarding information 

obtained relative to illegal non-citizens.

830 RESIDENCY - 140. The reviewer must determine where the 

household lived AORD. In unusual cases (such as homeless households, some 

migrant farmworker households or households newly arrived in the area) where 

verification of residency cannot reasonably be accomplished, the reviewer must 

document that he/she attempted to verify residency. Verification of residency 

is not required for categorically eligible households. 

831 Standard Verification. The reviewer will use the following: 

• Statement from a non-relative landlord 

• Rent or mortgage receipt from non-relative landlord that shows 

the address 

• Official records confirming ownership of a house at the address 

given 

• Employer's statement 

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• List of residents from a responsible official of a drug/alcoholic 

treatment center or group home, who is not the household's 

authorized representative 

• Tax office records 

• Post Office records 

• Church or synagogue records 

• Utility company records or bills 

• Signed statement, or documented verbal statement, from nonrelative 

• Item of mail with household name and address with postmark or 

date as of the review date 

• Other property records 

• Current driver's license 

• Department of Motor Vehicles document(s) 

• Voter Registration 

832 Resident of Institution. If a household is found to have been a 

resident of a type of institution which makes the household ineligible, that fact 

should be documented under this element and also noted under Element 150 - 

Household Composition. 

840 HOUSEHOLD COMPOSITION AND LIVING 

ARRANGEMENT - 150. The reviewer must verify household composition. 

This is done by determining: 

• If any individuals were included in the household who should have been 

determined ineligible; 

• If any were not included who should have been included, and who these 

individuals were. 

This includes household eligibility with respect to residence in institutions 

as verified under Element 140 RESIDENCY. 

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841 Categorically Eligible Households.

The reviewer must first verify the household's correct composition. 

The reviewer must then verify whether all household members received or 

were authorized to receive PA, SSI, State or local GA payment or benefits from 

a State Program conferring categorical eligibility. 

The reviewer need not review those elements of eligibility which are 

superseded by categorical eligibility, i.e., resources, gross and net income 

limits, social security number, residency and sponsored non-citizen 

information. Included variances cannot exist in these elements. 

Even if a household is categorically eligible, and thus exempt from gross and 

net income limits, the reviewer is still required to determine the household's 

income for the appropriate budget or sample month in order to establish the 

correct benefit level. 

842 Method of Verifying Household Composition. The following 

discussion of verification of household composition is presented along the lines 

of a typical interview on this element. 

842.1 Household Statement About Membership. The reviewer 

must ask the household to state who was in the household AORD and the 

relationship or significance among the various individuals. 

• Household Statement Agrees With Case Record. If the 

household's statement agrees with the case record, the reviewer 

notes this and obtains the name of a collateral contact the 

household believes to be best able to verify household 

composition. (The criteria for acceptable collateral contacts for 

this element are discussed in section 842.3.) If the household 

cannot provide a collateral contact, the reviewer must try to 

obtain the verification from other collateral contacts. 

Possibilities include: landlords, school officials, ministers, 

physicians, visiting nurses, and neighbors. 

• Household Statement Disagrees With Case Record. If the 

household's statement does not include person(s) listed in the 

case record as member(s) of the household, the reviewer must 

ask about the status of these individuals. 

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1. Household Acknowledges Other Members. If the household 

acknowledges other members, the reviewer would proceed with 

the routine verification using collateral contacts.

2. Household Disclaims Person Shown in Case Record. If the 

household asserts that a person shown in the case record was not 

a member AORD, the reviewer should first try to find out from 

the household where the person was at that time. 

3. If the household asserts that the person was elsewhere, the 

reviewer should try to verify that assertion using the evidence 

under Element 140, RESIDENCY. 

4. If the household admits that the person was present but claims 

he is not a household member, the reviewer must verify this 

issue. This should be done by obtaining specific information 

about the person and discussing household composition policy. 

This should lead to a determination of whether there is proof 

that the person was or was not a household member (for 

example, a live-in attendant, boarder, or a member of a group 

sharing living quarters but not purchasing and preparing food 

together with that household.) If the discussion resolves the 

difference, then the reviewer would verify the individual’s status 

as a household or non-household member using collateral 

contacts. If the difference is not resolved, then collateral 

contacts would be used as discussed in sections 842.3, 842.4 and 

842.5. 

842.2 Inquiry to Household About Other Members. During 

discussion of household composition, the household may offer information 

about household members in addition to the members shown in the case 

record. Whether or not this happens, the reviewer must ask if there were any 

other household members as of the review date. 

• Household Acknowledges Other Members. If the household 

acknowledges other members, the reviewer needs to obtain the 

appropriate information about those individuals and proceed 

with the routine verification using collateral contacts. 

• Household Denies Any Other Members. Reviewer action when 

the household denies that there were additional household 

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members depends on whether there is reason to doubt the 

household's statement. 

1. Reviewer Has No Reason To Doubt Household's Statement. If 

the reviewer has no reason to doubt the household's denial that 

there were any other members AORD, and there is no contrary 

evidence, then further discussion about this matter with the 

household is not necessary. 

2. Reviewer Has Reason To Doubt the Household's Statement. 

The reviewer may doubt the household's statement for several 

reasons. For example, the reviewer may observe other 

individuals in the house or observe evidence of others living 

there. When a reviewer has such reason to doubt a household's 

denial of additional individuals, the reviewer must specifically 

ask the household about such individuals. If the household 

continues to deny that the individuals were household members, 

the reviewer must pursue verification as outlined in section 

842.1: Household Disclaims Person Shown in Case Record; If the 

household asserts that the person was elsewhere; and If the 

household admits that the person was present but claims he is 

not a household member. 

842.3 Inquiry to Collateral Contacts About Household 

Members. Reviewers are required to verify household composition with at 

least one individual who is not a household member and does not live with the 

household. 

Evidence for standard verification of household composition is information from 

a collateral contact that positively identifies the household members. 

The reviewer must ask the collateral contact to name the individuals who live 

in the household. 

Reviewers should avoid asking collateral contacts merely to confirm that a list 

of names identifies those individuals. 

• If the contact's names match the names of the individuals in the 

household as determined by the reviewer from the household 

interview, the household composition is considered verified. 

• If this level of verification is unsuccessful, documentation on the 

worksheet must show the reason. 

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Collateral contacts may state that there are additional members in the 

household other than those the reviewer has already identified in interviewing 

the household. Whether or not such statements are made, the reviewer must 

ask collateral contacts if there are other household members and document the 

worksheet with the response. 

842.4 Resolving Inconsistencies in Information About 

Household Composition. Reviewers must resolve inconsistencies in 

information about household composition by contacting collateral contacts or 

by recontacting the household, as appropriate. Such inconsistencies can arise 

in the following situations: 

• Household Claims Individual Lives Elsewhere. When the 

household claims that an individual shown in the case record as a 

household member was not a member. 

• Household Denies Individual Living With Household Is a 

Household Member. When a household asserts that an individual 

living with it was not a household member. 

• Collateral Contacts Indicate Additional Members. When a 

collateral contact indicates that there was an individual who was 

a member of the household to which the household did not 

admit. 

• Collateral Contacts Indicate a Claimed Household Member Was 

Not a Member. When a collateral contact states an individual 

who the household claimed was a household member was not. 

Several aspects of this situation need to be noted. 

• First, the statement must be positive. For example, a landlord 

states he knows for a fact that a certain individual moved out 

prior to the time when the individual would have been included 

in the household. The household would need to be re-contacted 

in this type of situation. 

• Second, in some situations, recontacting the household is not 

necessary. For example, a minister or physician verifies that an 

individual, whom the household claimed as a member, died prior 

to the time the individual could have been included as a 

household member. 

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842.5 Actions To Resolve Inconsistencies. 

• With Collateral Contact Verification. If, as a result of the 

reviewer recontacting it, the household acknowledges a member 

other than ones it had previously acknowledged and/or 

acknowledges a claimed member was not one, the reviewer 

proceeds with the review on the basis of that adjusted household 

composition. If the household contends that its assertion is 

correct and the reviewer does not have strong evidence to the 

contrary, then the reviewer must use the household composition 

based on the information provided by the household. 

• Reviewer Action When Verification Is Unobtainable or 

Inadequate. When the reviewer cannot obtain verification or it 

is inadequate, either for the entire household or some of its 

members, the household's statement must be used for household 

composition. 

843 Residents of Certain Institutions. When AORD a household is 

found to have been a resident of an institution that makes the household 

ineligible, verification must be documented under Element 140 - RESIDENCY, 

and a note of that made under this element. 

844 Error Determination. In the majority of cases with a variance in 

household composition, the variance will be handled by simply adding or 

subtracting from the household size the individuals and their circumstances.

844.1 Household Consolidation/Movement. The procedures in this 

section apply to situations involving two or more separately certified 

households, regardless of size, that should have been certified as one 

household AORD. 

This may or may not involve movement of the households. One example of this 

would be individuals who lived together who should have been certified as one 

household but were erroneously certified as two or more households. 

These procedures apply to whichever household is sampled. 

They do not apply to duplicate participation situations (see 844.2) or situations 

involving an individual member of a certified household moving in with another 

separately certified household (see 844.3). 

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• Include all households with their income, deductions, resources, 

etc., in a computation of what the household should have 

received for the sample month; 

• Add up all food stamp issuances received by all individuals who 

should have been included in the household for the sample 

month; 

• Compare the allotment amount the household should have 

received to the combined total issued for the sample month; 

and 

• If the difference is $25.00 or less, the allotment issued to the 

case under review will be reported as correct. If the household 

was ineligible, the allotment issued to the case under review 

will be reported as being in error. 

• If the entire household was eligible, but was underissued or 

overissued by more than $25.00 the reviewer shall: 

1. Calculate the percentage that the allotment issued to the 

case under review is of the total issued; 

2. Multiply the amount under or overissued by this percentage, 

rounding the answer down to the nearest whole dollar figure; 

3. If the result is $25.00 or less, the allotment issued to the 

case under review will be reported as correct; 

4. If the result is more than $25.00, the result will be reported 

as the amount in error for the case under review; and 

Note: Although the total amount of food stamps issued to the 

household is used to calculate the dollar loss, only the amount 

authorized to the case selected for review will be reflected on 

the Form FNS-380-1 as the allotment amount. 

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Example of Determining the Amount of Error when Households Should 

Have Been Combined: There were two certified households that should have 

been certified as one household. The first certified household which was 

selected for review had 3 members and received an allotment of $248. The 

second certified household had 2 members and received an allotment of $53. 

When you consider all of the individuals and what benefits they should have 

received as a single household, it is determined that they were entitled to 

$107 in benefits. 

Household #1 allotment - $248 + Household # 2 allotment - $53 = $301 

$301 allotment the household received - $107 allotment the household should 

have received = $194 overissuance 

There is greater than a $25 difference therefore you must: 

 

1. Calculate the percentage that the allotment issued to the 

case under review is of the total issued; 

 $248 

 ________ x 100 = 82.39% 

 $301 

2. Multiply the amount under or overissued by this 

percentage, rounding the answer down to the nearest 

whole dollar figure;

 $194 overissuance 

 x 82.39% 

 

$159.83 round down to $159 

Since this is greater than $25, the error for the case under review is $159. 

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844.2 Duplicate Participation By All or Some Members of the 

Same Household. The procedures in this section are used when all 

members of one certified household are also participating as members of 

another separately certified household, and may or may not involve movement 

of the household. These procedures apply if either household is sampled. * 

Example of the Review Procedure for 

Duplicate Participation: For example, 

the State agency correctly certified a 

household with five members (Case A). 

The State agency later certified two 

members of household A as another 

household (Case B). The result is that 

all members of Case B are duplicate 

participants. If A is sampled, A is 

correct for this element. If B is 

sampled, there is a variance as the 

members were already included in Case 

A, and the total allotment issued to 

household B should be considered an 

overpayment. 

When the reviewer verifies that an 

individual or group of individuals 

have been included as household 

members in the case under review, 

and the individual(s) received an 

allotment as a separate household 

for the sample month, the reviewer 

shall determine which case was the 

first to be correctly authorized to 

receive benefits. If that case is 

sampled it would be correct for this 

element. 

Households on Indian reservations are not eligible to participate in both the 

Food Distribution and Food Stamp Programs simultaneously. A household that 

participated in both programs in the sample month is ineligible for food stamps 

if it was certified for the Food Distribution Program first. 

844.3 Transfer/Movement of Individuals Into, Out of, and 

Between Food Stamp Households. The procedures in this section 

pertain to an individual member(s) of one certified household 

moving/transferring into another certified household, and may or may not 

involve duplicate participation of the individual member. These procedures 

apply if either household is sampled. This section does not apply to 

movement/consolidation of the entire household. (See section 844.1.) 

NOTE: If an individual is certified as a one-person household, and moves into 

another certified household, use review procedures at 844.1 or 844.2 as 

appropriate. When one or more individuals move from one certified household 

to another certified household, the reviewer must ensure that the individual(s) 

and any associated income and/or deductions are not used in both households' 

budget calculations. If the agency policy requires that individuals and their 

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circumstances be included in the gaining household AORD, but fails to include 

them in the gaining household's budget calculations, a variance exists and the 

reviewer shall include the individual(s) and their circumstances in the gaining 

household's budget for the issuance month. Similarly, if the agency fails to 

remove the individual(s) and their circumstances from a losing household's 

budget AORD, a variance exists and the reviewer shall remove the individual(s) 

from the losing household's budget. 

It is important to note that a problem in a case related to the case under 

review through movement of individuals does not necessarily result in a 

variance in the case under review. For example, if the case under review is a 

household losing an individual to another participating food stamp household 

and the transfer should have been made AORD, no variance would exist in the 

case under review if the individual and his/her circumstances had been 

removed from this household, even if the individual was never added to the 

gaining household's budget. Thus, the determination of whether a variance 

exists in the case under review depends upon whether the case is the 

household gaining or losing members and whether the change must be made 

considering reporting requirements. 

The following table illustrates when a variance exists in a case under review 

and assumes that the agency should have acted AORD. 

 Situations 

Individual(s) 

included in both 

households 

Individual(s) not 

included in either 

household 

Individual(s) 

included in losing 

household only 

Gaining household 

under review 

No variance in 

household 

composition 

Variance- Add 

individual(s) to 

household 

Variance- Add 

individual(s) to 

household 

Losing household 

under review 

Variance- Remove 

individual(s) from 

household 

No variance in 

household 

composition 

Variance- Remove 

individual(s) from 

household 

845 New Members Added to a Retrospectively Budgeted 

Household - Two-Month System. 

• When a household reports the addition of an individual during the 

processing month of a two-month system, the agency may have 

to include the individual(s) and their circumstances in the 

household's eligibility and allotment determinations for the 

sample month's issuance even if the change is reported after 

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submission of a monthly report (the agency would not include an 

individual who was already participating as part of another 

household in the sample month.) If the State agency failed to 

make a required change, the variance is included in the error 

determination. 

• If a new member was not certified for the program prior to 

joining a retrospectively budgeted food stamp household, the 

new member must be added using prospective eligibility and 

budgeting procedures for the new member. Household 

composition must be determined prospectively and the new 

member's circumstances must be determined prospectively and 

added to the household's prospective or retrospective 

circumstances depending upon whether the household was 

subject to prospective or retrospective eligibility. The new 

member's circumstances for the issuance month must be added 

to the household's circumstances for the budget month for the 

calculation of benefits. 

• If a new member 

moved out of one food 

stamp household and 

into a retrospectively 

budgeted household, 

with no break in 

participation, the new 

member must be 

added to the household 

using the new 

member's 

circumstances from 

the budget month for 

allotment purposes. 

Whether the new 

member's 

circumstances will be 

determined 

prospectively or 

retrospectively for eligibility purposes will depend upon whether 

the household was subject to prospective or retrospective 

eligibility. 

Example of adding new members to a 

retrospectively budgeted household: 

For example, a two-person household 

was participating in a two-month 

retrospective budgeting system based 

on monthly income of $200. On July 

29, in the processing month, the 

household reported a new member 

moved in. He had $100 unearned 

income in June and July and 

anticipated no income in August. The 

new member was not previously 

certified for food stamps. The State 

must add the new member 

prospectively to the retrospectively 

budgeted household for the issuance 

month of August. Therefore, eligibility 

and the allotment would be based on 

three members with $200 income. 

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846 Separated Households. If a household separated and became 

two or more separate food stamp households at some time prior to the date for 

which household composition must be determined, use the following 

procedures to determine which household to review. 

If the State agency assigns case numbers by social security number, review the 

household with the majority of members who were certified as members of the 

sampled case provided that the majority contains an adult member who was 

certified as a member of the sampled case. If there is no majority or no adult 

from the sampled household in the majority, review the household that 

contains the individual with the social security number that corresponds to the 

sampled case. 

If the State agency assigns case numbers by some means other than social 

security number, review the household that would have retained the sampled 

case number using the State's procedures. If neither household would have 

retained the case number, review the household that contains the majority of 

the members who were certified as members of the sampled case provided that 

the majority contains an adult member who was certified as a member of the 

sampled case. If there is no majority or no adult from the sampled household 

in the majority, review the household that contains the individual who was 

head of the household before it separated. 

847 Recipient Disqualification - 151. The reviewer must complete 

a check for all adult household members, 18 years of age or older, with the 

Disqualified Recipient Subsystem (DRS), in order to verify the possible presence 

of individual(s) in the household who have been disqualified from participation 

in the food stamp program AORD. If the DRS check does not indicate the 

presence of any disqualified members in the household, and no indication of 

information to the contrary has arisen during other collateral contacts, then no 

further verification is required. If the DRS check does indicate the presence of 

a possible disqualified individual(s) in the household, the reviewer must verify 

the eligibility status of the individual(s) by contacting the agency that 

submitted the information to DRS. 

If the reviewer determines that AORD a household member is an individual 

disqualified from the food stamp program, the case shall be reported as 

containing a variance. The error determination shall be completed by 

excluding the individual from the household and including the correct share of 

the individual’s income and resources in determining the eligibility and benefit 

level of the household. 

8 - 18 
 FNS HANDBOOK 310 

If the reviewer determines that AORD an individual is not disqualified from the 

food stamp program and has been erroneously excluded from the household 

under review, the case shall be reported as containing a variance. The error 

determination shall be completed by including the individual in the household. 

The individual’s income and resources shall be considered in determining the 

eligibility and benefit level of the household. 

If the reviewer determines that there was a variance as the result of a change, 

the reviewer shall then determine whether the variance is included or excluded 

based on the reporting requirements and exclusionary time periods. 

848 Ineligibility Due to a Drug Related Conviction, and 

Fleeing Felon Status. Unless a State agency has opted out of the provision, 

household members convicted of a drug related felony, if the felony occurred 

after August 22, 1996, are ineligible for the Food Stamp Program. In addition, 

household members who are fleeing felons or probation/parole violators are 

ineligible. 

• Verification. The reviewer must examine agency records to 

determine whether the agency was aware of drug related 

convictions, or that a household member was a fleeing felon or a 

probation/parole violator. The QC reviewer shall verify the date 

on which the state agency became aware of the information. 

Verification shall consist of documentation contained within the 

records of the State agency, or information that is otherwise 

known to the State agency. We expect that at some time in the 

future there will be databases available to check for drug 

convictions and possibly for fleeing felons. As these become 

available, the QC review procedures will be expanded and may 

require inquiries of these databases. 

• Variances. If the reviewer determines that the agency was 

aware of the household member(s) status as ineligible and failed 

to take appropriate action to remove the individual(s) from the 

program the case shall be reported as containing an agencycaused variance. In making the error determination the reviewer 

will exclude the ineligible member(s) in determining the food 

stamp benefits for the sample month. The income and resources 

of any ineligible member(s) shall be handled in accordance with 

certification procedures. The appropriate time frames and 

requirements for reporting and acting on changes in the 

household circumstances shall apply. Deficiencies, other than 

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 FNS HANDBOOK 310 

those referenced above, shall not be included in the error 

determination. 

For reasons of reviewer safety, and so that quality control can not possibly 

interfere with any ongoing law enforcement activities, under no circumstances 

shall the reviewer question the household regarding the possibility of 

ineligibility due to an illegal drug conviction or possible status as a fleeing 

felon. If, in the course of conducting the review, the reviewer becomes aware 

through other sources that a household member(s) was ineligible because of 

one of these provisions, but that the State agency was unaware of this 

information, then a report must be forwarded to the local agency identifying 

the individual’s status as an ineligible household member. QC staff must not 

contact law enforcement agencies with information regarding the whereabouts 

of any fleeing felons or probation/parole violators discovered. 

850 WORK REQUIREMENTS AS A CONDITION OF PARTICIPATION.

850.1 Work Registration - 162. As a condition of participation in the 

Food Stamp Program, eligible recipients are required to register for work unless 

they are exempt. If the household member, unless otherwise exempt, refuses 

to work or fails without good cause to work register, the individual is ineligible 

until the individual registers or becomes exempt from work registration 

requirements. 

The reviewer is required to determine and verify whether each household 

member was required to register for work. For each member required to 

register, the reviewer must verify whether the individual was registered. If the 

State exempted an individual from the work registration requirement, the 

reviewer shall determine if the exemption was correct. The reviewer is 

required to determine if a member of the household or the entire household 

should have been disqualified AORD because an individual refused without good 

cause to work register. 

• Verification. Work registration may be verified using the 

following primary sources: 

1. Employment registration form 

2. Employment agency printout 

3. Contact with the employment office 

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 FNS HANDBOOK 310 

4. Case record documentation of the date on which current 

registration was validated 

• Variances. If the reviewer determines that a household member 

has refused or failed without good cause to register, the case 

shall be reported as containing a variance. Lack of a work 

registration form in the case record is not evidence of refusal or 

failure to cooperate without good cause. If a required good cause 

determination was not made by the State agency, the reviewer 

must verify whether there was good cause. If a good cause 

determination was made by the State agency, that good cause 

determination itself is not subject to examination by the 

reviewer. If the reviewer determines that there is a variance for 

refusal or failure without good cause to register for work, the 

reviewer shall consider the individual ineligible. Work 

registration variances will not be cited for any individuals added 

to the household's composition (and for whom a household 

composition variance has been cited) as a result of the QC 

review. 

If the reviewer determines that a member of the household 

failed or refused with good cause to work register and was 

erroneously excluded in the household under review, the case 

shall be reported as containing an agency-caused variance. Such 

a variance will result in a determination that the individual is 

eligible. 

If, AORD, the state agency has imposed a disqualification period 

upon a household member, the reviewer shall not consider the 

individual to be either eligible or ineligible based solely on the 

timeliness of the disqualification action. The specific 

circumstances of the disqualification action must be examined in 

order to determine its correctness. 

• Exemptions. The verification sources for exemptions from work 

registration vary with the basis for exemption. The reviewer 

should verify each exemption with the appropriate source. 

850.2 Employment and Training - 160. As a condition of 

participation in the Food Stamp Program, eligible recipients who have 

registered for work may be required to participate in an employment and 

training program operated by the State. Employment and training programs 

8 - 21 
 FNS HANDBOOK 310 

may include a job search program, a job search training and job placement 

program, a workfare program, a program to improve employability, an 

educational program, a program to increase self-sufficiency, a work 

experience/training program and/or separate work/training program such as a 

Job Training Partnership Act Program. If the State exempted an individual 

from the employment and training program, the reviewer shall determine if the 

exemption was correct. The reviewer is required to determine if a member of 

the household or the entire household should have been disqualified AORD 

because an individual refused without good cause to participate in employment 

and training. 

• Verification. Participation in employment and training may be 

verified by contact with the appropriate operating Employment 

and Training offices or by reports from the appropriate office. 

Employment and training may be operated by the State agency or 

by other entities. 

• Variances. If the reviewer determines that an individual(s) has 

refused or failed without good cause to comply with employment 

and training requirements and the individual(s) was not 

disqualified from the program, the case shall be reported as 

containing a variance. If a required good cause determination 

was not made by the State agency, the reviewer must make a 

determination by verifying whether there was good cause. If a 

good cause determination was made by the agency, that good 

cause determination itself is not subject to examination by the 

reviewer. If the reviewer determines that there is a variance for 

refusal or failure without good cause to comply with employment 

and training requirements, the reviewer shall consider the 

individual or household ineligible. 

If the reviewer determines there is no documentation to support 

that a member of the household has refused or failed without 

good cause to comply with employment and training 

requirements, and that individual has been erroneously 

disqualified, the case shall be reported as containing a variance. 

Such a variance will result in a determination that the individual 

or household is eligible. 

If, AORD, the state agency has imposed a disqualification period 

upon an individual, the reviewer shall not consider the individual 

to be either eligible or ineligible based solely on the timeliness of 

the disqualification action. The specific circumstances of the 

8 - 22 
 FNS HANDBOOK 310 

disqualification action must be examined in order to determine 

its correctness. 

• Exemptions. The verification sources for exemptions from 

employment and training vary with the basis for exemption. The 

reviewer should verify each exemption with the appropriate 

source. 

850.3 Acceptance of Employment - 166. As a condition of 

participation in the Food Stamp Program, eligible recipients are required to 

report to an employer to who referred and to accept a bona fide offer of 

suitable employment. The reviewer is required to determine if a member of 

the household or the entire household should have been disqualified AORD 

because an individual refused without good cause to accept suitable 

employment. If the State disqualified the individual for failure to comply, the 

reviewer shall determine if the disqualification was correct. 

• Verification. At a minimum the reviewer shall look for 

information in the case record that indicates noncompliance 

without good cause. If a required good cause determination was 

not made by the State agency, the reviewer must make a 

determination by verifying whether there was good cause. If a 

good cause determination was made by the State agency, that 

good cause determination itself is not subject to examination by 

the reviewer. 

• Variances. If there is no indication of noncompliance, 

compliance will be presumed. A determination by, or 

notification to, the agency of failure or refusal to comply without 

good cause shall be reviewed to determine the period of 

ineligibility. 

If the reviewer determines that a member of the household 

failed or refused without good cause to accept employment and 

was erroneously included in the household under review, the 

case shall be reported as containing a variance. Such a variance 

will result in a determination that the individual or the 

household, as appropriate, is ineligible. 

If the reviewer determines that a member of the household 

failed or refused with good cause to comply and was erroneously 

excluded from the household under review, the case shall be 

8 - 23 
 FNS HANDBOOK 310 

reported as containing an agency caused variance. Such a 

variance will result in a determination that the individual is 

eligible. 

If, AORD, the state agency has imposed a disqualification period 

upon an individual the reviewer shall not consider the individual 

to be either eligible or ineligible based solely on the timeliness of 

the disqualification action. The specific circumstances of the 

disqualification action must be examined in order to determine 

its correctness. 

• Exemptions. The verification sources for exemptions from the 

requirement to accept suitable employment vary with the basis 

for exemption. The reviewer should verify each exemption with 

the appropriate source. 

850.4 Employment Status/Job Availability - 165. As a condition of 

participation in the Food Stamp Program, eligible recipients are required to 

provide information on an on-going basis to allow the State agency to 

determine the employment status or job availability of the individual and of 

members of the household. The reviewer is required to determine if a member 

of the household or the entire household should have been disqualified AORD 

because an individual without good cause failed or refused to provide 

information relative to their employment status or job availability. If the State 

disqualified an individual for failure to comply, the reviewer shall determine if 

the disqualification was correct. 

• Verification. At a minimum the reviewer shall look for 

information, such as reports from the State agency in the case 

record that indicates noncompliance without good cause. If a 

required good cause determination was not made by the State 

agency, the reviewer must make a determination by verifying 

whether there was good cause. If a good cause determination 

was made by the State agency, that good cause determination 

itself is not subject to examination by the reviewer. 

• Variances. If there is no indication of noncompliance, 

compliance will be presumed. A determination by, or 

notification to, the agency of failure or refusal to comply without 

good cause shall be reviewed to determine the period of 

ineligibility. 

8 - 24 
 FNS HANDBOOK 310 

If the reviewer determines that a member of the household 

failed or refused with good cause to comply with reporting 

requirements and was erroneously excluded in the household 

under review, the case shall be reported as containing an agencycaused variance. Such a variance will result in a determination 

that the individual is eligible. 

If, AORD, the state agency has imposed a disqualification period 

upon a household member, the reviewer shall not consider the 

individual to be either eligible or ineligible based solely on the 

timeliness of the disqualification action. The specific 

circumstances of the disqualification action must be examined in 

order to determine its correctness. 

• Exemptions. The verification sources for exemptions from the 

reporting requirements vary with the basis for exemption. The 

reviewer should verify each exemption with the appropriate 

source. 

850.5 Voluntary Quit/Reducing Work Effort - 163. As a condition 

of participation in the Food Stamp Program, eligible recipients may not 

voluntarily quit without good cause, or reduce hours of employment to less 

than the required number of hours per week without good cause. If a nonexempt individual voluntarily quits or reduces their work hours without good 

cause the individual or household is ineligible to participate. The reviewer is 

required to determine if a member of the household or the entire household 

should have been disqualified AORD because an individual voluntarily quit or 

reduced their work hours. 

The reviewer is required to determine whether the member of the household 

voluntarily quit his/her job without good cause, and whether the household 

should have been disqualified AORD as the result. If a good cause 

determination of voluntary quit is made by the State agency that good cause 

determination itself is not subject to examination by the reviewer. 

The reviewer shall determine whether the member of the household voluntarily 

quit a job if: there is an indication in the case record of a quit (unless 

documentation shows good cause); IEVS data that was previously obtained 

indicates recently terminated employment; during the interview the household 

indicates that an individual recently became unemployed or reduced their work 

hours; or an indication of a quit or reduction is found through collateral 

contacts. 

8 - 25 
 FNS HANDBOOK 310 

• Verification. The reviewer must verify the following information 

to determine whether the member of the household should have 

been disqualified because of the quit or reduction. 

Verify when the quit or reduction occurred, if it was voluntary, 

and the number of hours or weekly wages. Verification sources 

include, but are not limited to, previous employer(s), employee 

associations, union representatives, and/or grievance 

committees or organizations. Primary responsibility for providing 

verification and/or collateral contacts rests with the household 

member. 

If a good cause determination was not made by the State agency, 

make a determination by verifying whether there was good 

cause. 

Reviewers must apply State agency definitions for “voluntary 

quit” and “reducing work efforts” in completing the review of 

these provisions. 

• Variances. If the reviewer was unable to obtain verification 

because the quit or reduction resulted from circumstances that 

cannot be verified, (i.e., such as a resignation from employment 

due to discrimination practices or unreasonable demands by an 

employer or because the employer cannot be located), no 

variance shall exist in this element. 

If, AORD, the state agency has imposed a disqualification period 

upon an individual, the reviewer shall not consider the individual 

to be either eligible or ineligible based solely on the timeliness of 

the disqualification action. The specific circumstances of the 

disqualification action must be examined in order to determine 

its correctness. 

850.6 Workfare and Comparable Workfare - 164. As a condition 

of participation in the Food Stamp Program, State agencies may require 

recipients to participate in an optional workfare program. Such a workfare 

program may also include comparable workfare programs approved by the 

State, i.e., self-directed workfare. The reviewer shall use the procedures in 

this section for individuals participating in such a program. 

8 - 26 
 FNS HANDBOOK 310 

Individuals, or households are to be disqualified from the Food Stamp Program 

when the State agency determines that a workfare participant has failed or 

refused without good cause to comply with the requirements of workfare. 

(Such disqualifications do not apply if participation by the food stamp recipient 

was voluntary.) The reviewer is required to determine if individuals should have 

been disqualified AORD because they did not comply with workfare 

requirements. 

• Verification. At a minimum the reviewer shall look for 

information, such as reports in the case record that indicates 

noncompliance with the workfare requirements without good 

cause. 

• Variances. If there is no indication of noncompliance, 

compliance will be presumed. A determination by, or 

notification to, the agency of failure or refusal to comply 

without good cause with workfare requirements shall be 

reviewed to determine the period of ineligibility. 

If the reviewer determines that a member of the household has 

refused or failed without good cause to comply with workfare 

requirements and has been erroneously included in the 

household under review, the case shall be reported as

containing an agency caused variance. Such a variance will 

result in a determination that the individual or the household is 

ineligible. 

If the reviewer determines that a member of the household 

failed or refused with good cause to comply with workfare 

requirements and has been erroneously excluded from the 

household under review, the case shall be reported as 

containing an agency-caused variance. Such a variance will 

result in a determination that the individual is eligible. 

If AORD the state agency has imposed a workfare 

disqualification period upon a household member, the reviewer 

shall not consider the individual to be either eligible or ineligible 

based solely on the timeliness of the disqualification action. 

The specific circumstances of the disqualification action must be 

examined in order to determine its correctness. 

8 - 27 
 FNS HANDBOOK 310 

• Exemptions. The verification sources for exemptions from 

workfare requirements vary with the basis for exemption. The 

reviewer should verify each exemption with the appropriate 

source. 

850.7 Time Limited Participation - 161. Able-bodied adults 

between the ages of 18 and 50 without dependents (ABAWDs) are eligible for 

participation in the Food Stamp Program for only 3 months within a 36-month 

period of time without working or participating in a work or workfare program, 

unless exempt. ABAWD individuals meeting certain criteria may qualify for 3 

additional consecutive months of participation in the 36-month period. 

• Verification. The reviewer must verify, as of the review date, 

both the status of individual household members as ABAWDs, and 

also the program participation history of any members 

determined to be ABAWDs. This will include an examination of 

agency records. The reviewer shall verify the date on which the 

State agency became aware of the information. Verification 

shall consist of documentation contained within the records of 

the State agency, or information that is otherwise known to the 

State agency. Agency issuance records shall be used to verify the 

program participation of any individuals determined to be 

ABAWDs. 

In addition, the reviewer must explore the eligibility status of the 

ABAWD as a routine part of the field review of the case. 

Household members should be questioned regarding the history 

of participation in the program on the part of any ABAWD 

household members. 

If there are no indications from the review of agency records or 

from the field review that any household members may be 

ineligible ABAWDs, then the household’s statement may be 

accepted. No further investigation of the matter is necessary. 

There is no requirement that the reviewer contact agencies 

administering the program in other states if there are no 

indications that the ABAWD has participated within another 

jurisdiction. 

When a household admits that a household member is an ABAWD, 

or agency records and/or collateral contacts indicate that a 

household member may be an ABAWD, the reviewer must verify 

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the eligibility status of the individual(s) through the examination 

of agency records and collateral contacts with organizations 

administering the program in other states. The records of the 

State agency responsible for the administration of the Food 

Stamp Program where the recipient potentially participated are 

the only acceptable source of verification regarding the 

individual(s) ABAWD status. 

• Variances. The reviewer shall take the following steps in making 

the error determination: 

For each household member, determine AORD whether the 

individual is an ABAWD. For those individuals who are 

determined to be an ABAWD as of the review date, proceed with 

the review steps below. 

For each household member who has been determined to be 

ABAWD, determine whether these individuals have exceeded 

their time limits for participation in the program. 

Variances will be cited if it is determined that AORD the 

household contains member(s) who are ABAWDs who have 

exceeded their time limits for participation. In making the error 

determination the reviewer will exclude the ineligible member(s) 

in determining the food stamp benefits for the sample month. 

Reportable changes that are not reported, and that impact on 

the eligibility status of an ABAWD individual shall be included in 

the error determination process. 

Variances shall also be cited if the reviewer determines that, as 

of the review date, the agency has improperly excluded an 

individual who was not subject to the time limit restrictions, or 

who had not yet exceeded the time limits for program 

participation. In making the error determination the reviewer 

will include the eligible member(s) in determining the food 

stamp benefits for the sample month. 

The appropriate time frames and requirements for reporting and 

acting on changes in the household circumstances shall apply. 

If AORD the state agency has imposed an ABAWD disqualification 

period upon a household member, the reviewer shall not consider 

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the individual to be either eligible or ineligible based solely on 

the timeliness of the disqualification action. The specific 

circumstances of the disqualification action must be examined in 

order to determine its correctness. 

• Exemptions. The verification sources for exemptions from the 

time limit requirements vary with the basis for exemption. The 

reviewer should verify each exemption with the appropriate 

source. 

860 SOCIAL SECURITY NUMBERS - 170. An individual may not 

apply for the Food Stamp Program because they do not wish to provide their 

social security number at the time they are applying for the rest of the 

household. No verification is required for these members of the household who 

have chosen not to be included as a recipient of the Food Stamp benefits for 

themselves. Otherwise, individuals who refuse or fail without good cause to 

provide a social security number (SSN) or to apply for one are ineligible to 

participate as a member of the household. 

860.1 Verification.

Verification of SSN’s is not required for households that are categorically 

eligible based on PA or SSI payments. However, an SSN may be verified for a 

member of a categorically eligible household when the number is needed to do 

an IEVS check and the SSN is not in the case file or it appears to be incorrect. 

For other households, including those households that are categorically eligible 

based on GA payments, verification must be obtained for each household 

member. Verification based on viewing the Social Security card is not 

acceptable. Verification must be based on one of the following sources: 

• Collateral contact with SSA. 

• SSA printouts or documents such as a Form SS-5 (Application for 

an SSN) or SSA-5028 (Receipt for Application for an SSN) or other 

similar forms. 

• Documentation that the SSN had been verified by another 

program participating in IEVS. 

• Documentation in the case record that shows that a Form SS-5 

was sent to SSA on a specific date. 

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• Birth document issued by the hospital in the case record that 

shows that an SSN was applied for or other receipt showing this, 

if it contains identifying information that includes the names of 

the baby and the parent(s) and the date of birth of the baby. 

1. Under no circumstances should the reviewer contact a 

hospital to verify whether or not a food stamp applicant or 

recipient applied for a newborn baby's SSN while in that 

hospital. 

2. The reviewer must look for a copy of documentation from the 

hospital in the case record that shows that an SSN was applied 

for. 

The reviewer must document the verification used to show that the individual 

did or did not have an SSN. 

860.2 Variances. A variance shall be cited, and the household member 

determined ineligible, only in the following circumstances: 

• If the reviewer determines, using documentation in the case 

record, that an individual had refused, or failed without good 

cause, to provide or apply for an SSN. 

• If the reviewer finds no evidence that establishes refusal, the 

reviewer must determine whether good cause existed for the 

individual's failure to provide or apply for an SSN. Good cause 

shall be established through documentary evidence that the 

individual had made every effort to supply the necessary 

information to complete an application for an SSN. 

• If the reviewer determines that the household knowingly 

provided an incorrect SSN for an individual or knowingly failed to 

provide all SSN's for an individual, the individual shall be 

determined ineligible. 

• If an individual had been disqualified by the State agency, the 

reviewer shall determine if the disqualification was correct 

AORD. 

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Deficiencies, other than those referenced above, shall not be included in the 

error determination. 

• If an individual who was added to household composition as a 

result of the QC review (and for whom a household composition 

variance has been cited) does not have an SSN, an SSN variance 

shall not be cited. 

• Failure on the part of the agency to process an SS-5 or to inform 

the household member that an SSN must be obtained within the 

allowed time frames shall not be considered a variance and shall 

not affect the error determination.

If an individual is determined to be ineligible, the reviewer shall exclude that 

individual from the household but include a pro rata share of the individual's 

income and all of the individual's resources in determining the household's 

eligibility. Likewise, those individuals who choose not to provide their social 

security number and did not want to receive food stamp benefits have their 

income and resources considered in determining the remainder of the 

household’s eligibility and benefits. 

870 DISABLED INDIVIDUALS. Disabled household members are 

entitled to some special eligibility and benefit standards: 

• The net income standard 

• The excess medical deduction 

• The uncapped shelter deduction, and 

• Special household composition considerations. 

Disability status must be verified in connection with application of these 

special standards.

“Disabled” status that entitles a member to the special eligibility and benefit 

standards is defined in Food Stamp Program regulations. Only individuals 

meeting the criteria listed in the regulatory definition shall be considered 

disabled for purposes of the special eligibility and benefit standards. 

870.1 Verification. The source of verification varies with the basis for 

the entitlement to disability status. The verification must be documentation, 

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8 - 33 

computer listings, or collateral contacts with the government agency that has 

provided the basis for the disability determination. 

For example: if the basis for the disability determination is receipt of SSI, then 

verification must consist of SSA documentation or computer listings which 

verify the information or a collateral contact with SSA. 

870.2 Variances.

• If the reviewer determines that an incorrect disability status 

determination has been made (a disabled household member has 

been considered non-disabled, or a non-disabled household 

member has been considered disabled) then a variance exists. 

• If the reviewer determines that the variance is the result of a 

change, the reviewer shall then determine if the variance is 

included or excluded based on the reporting requirements and 

exclusionary time periods. 

Example of Coding a Variance That 

Was Related to Disability Status: A

household is given an uncapped shelter 

deduction on the basis that a household 

member is disabled. The reviewer 

discovers that the household member is 

not disabled, and the household is not 

entitled to an uncapped shelter 

deduction. The variance should be 

coded in element 363, shelter 

deduction. 

Variances in disability status are not 

coded on the FNS-380-1 as disability 

variances, rather they should be 

coded in the element that is effected 

by the disability status variance. 
 FNS HANDBOOK 310 

CHAPTER 9 

RESOURCES 

900 VERIFICATION STANDARDS FOR RESOURCES - 200-299.

910 GENERAL REQUIREMENTS. This chapter discusses the general 

requirements for verification of resources. 

911 Purpose of Verification of Resources. Except for 

categorically eligible households, the reviewer must verify the household's 

liquid and non-liquid resources. The reviewer must then determine if the 

household's nonexempt resources exceeded the resource eligibility standard. 

Fluctuations in resources over the certification period, even in excess of the 

household's standard, shall not be considered variances. Thus, only when the 

applicable resource standard was exceeded as of the QC verification date (see 

section 710), the household fails to report the acquisition of certain vehicles, 

or when policy was misapplied by the agency shall the reviewer cite a variance 

in this element. In regard to variances resulting from changes, the exclusionary 

time periods in Chapter 7 apply. 

In determining whether a variance exists, the reviewer must ensure that the 

same money is not counted both as income in the month it was received and as 

a liquid resource in the same month. 

912 Eligibility Standards. There are statutory resource limits for all 

households except those households that are categorically eligible. The 

reviewer will need to determine the resource limit for the household. 

913 Categorical Eligibility. Households are categorically eligible if 

all household members received or were authorized to receive PA, SSI, State or 

local GA payments, or benefits from a State Program conferring categorical 

eligibility. The reviewer need not review the household's resources if it was 

categorically eligible except to determine if the resources provided any income 

to the household such as interest or rent. So long as all household members 

were included in a PA grant or they received SSI, State or local GA payment, or 

benefits from a State Program conferring categorical eligibility, the household 

was eligible for food stamps in relation to this element, regardless of whether 

its total resources exceeded the standard and regardless of whether there was 

more than one PA unit in the food stamp household. 

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If the reviewer becomes aware that the PA/FS household had more resources 

than allowed by the PA standard, this information shall be reported to the 

agency but shall not result in the case being reported as ineligible for food 

stamp benefits. When a case is found to be incorrectly classified as 

categorically eligible, the reviewer shall use the applicable resource standard. 

For example, if the reviewer finds that a household contained an individual 

who was not included in the PA budget, the food stamp resource limit would be 

used. If the resources exceeded the resource limit, the case was ineligible. 

914 Combined Resources - 225. To determine if there was a 

variance, the reviewer must total verified nonexempt resources and compare 

that amount to the appropriate resource limit. The worksheet must show the 

total and the resource limit used. 

915 Acceptable Case Record Verification. Reviewers may accept 

case record verification for resources which households declare if such 

verification is current relative to the likelihood of the resource changing. For 

non-liquid resources, the reviewer may accept as current any appropriate case 

record verification stating the amount of the resource during the 30 days 

before or after the review date. For liquid resources, the reviewer may only 

accept case record verification stating the amount of resources as of the QC 

verification date specified in Chapter 7. 

916 Transfer of Resources. The reviewer must ask the household if 

it transferred any resources during the three months prior to application or 

after its eligibility was determined. 

If the household admits to a transfer of resources, the reviewer must identify 

the resource, specify when the transfer occurred, and determine whether the 

transfer was knowingly made in order to qualify for food stamp benefits. The 

household's documentation of the transfer may be used for verification. If the 

case record documents that the household reported to the EW a transfer of 

resources, the reviewer will determine if, in accordance with certification 

procedures, the household would be eligible for the sample month. 

A household may use its resources without having that use considered as a 

transfer of resources. For example, a household that had $3,000 in a bank 

account and used $2,000 to re-roof its home would not be ineligible based on a 

transfer of resources. 

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920 NONEXEMPT RESOURCES. The reviewer must verify the amount 

of nonexempt resources declared by the household, and explore undeclared 

resources to a point where the absence of each resource is reasonably 

established. The evidence required to support the positive and negative 

allegations is specified in this chapter. The "amount" of a non-liquid resource is 

its fair market value less encumbrances except for licensed vehicles. (See 

section 970.) 

930 EXEMPT RESOURCES. The reviewer must determine that 

resources which are not to be included as a resource for the Food Stamp 

Program have been properly exempted in the determination of the household's 

resources. 

931 Resources of Non-Household Members. The reviewer must 

verify that the resources of household members disqualified for intentional 

program violations or failure to comply with the work requirements, ineligible 

non-citizens, and SSN disqualified persons were counted according to 

certification policy.

For all other non-household members, the reviewer must verify that resources 

of these non-household members were included/excluded as determined by 

certification policy. 

932 Resources of Non-Citizen Sponsors. The reviewer must verify 

the amount of any resources which are required to be deemed to the household 

from a sponsor (and the sponsor’s spouse) of a non-citizen. 

933 Resources Jointly Owned With Non-Household Members. 

The reviewer must verify the amount of any jointly owned resources. 

Resources owned jointly by separate households shall be considered available 

based upon certification policy and applicable State laws. 

934 Resources Which Are Accessible to the Household But 

Not Owned by the Household. The treatment of resources which are 

accessible to the household but not owned by the household are considered 

based upon certification policy and applicable State laws. 

940 BANK ACCOUNTS OR CASH ON HAND - 211. The reviewer 

must ask the household if any member had any liquid resources. These types of 

resources are cash or instruments, which can be readily converted to cash. 

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Examples: 

• Cash on hand 

• Money in savings and checking accounts 

• Instruments issued by banks and credit unions, such as certificate 

of deposit 

• Stock ownership in corporations 

• Bonds, such as savings bonds 

• Shares in mutual funds 

• Nonrecurring lump-sum payments such as income tax refunds 

• Individual Retirement Accounts 

941 Inquiry About Debits to Accounts. The reviewer should 

consider as a debit to the account, any money that was counted as income for 

the month. The reviewer would also consider outstanding checks or drafts 

written against an account to be debits to that account. For retrospectively 

eligible cases, resources are determined as of the last day of the budget 

month. For prospectively eligible cases, resources are determined AORD. The 

reviewer must complete an IEVS check for resources for all household 

members. In addition, the reviewer must verify whether any adult member of 

the household has a bank account. 

942 Inquiry About Declared Liquid Resources. Reviewers must 

obtain certain information from households that declare liquid resources that 

are not identified in the case record or for which verification is not current. 

Most of this information can be obtained from the household or from a financial 

institution. This information is: 

• The name and address of the financial institution 

• The type of account, the account number and type of 

ownership 

• The amount of the resource 

NOTE: Only verification from a financial institution is acceptable. 

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943 Verification of Declared Liquid Resources. 

943.1 Cash. Reviewers may accept the household's statement about the 

amount of cash on hand. Any lump-sum payments that are not converted to 

cash or deposited in a bank account could be verified by viewing the payment 

check. 

943.2 Other Liquid Resources. To verify any other liquid resources 

declared for a household member, the reviewer must contact the financial 

institution and verify the net amount of the resource. The reviewer must also 

inquire if other household members have resources there or if the member who 

has declared the resource has any other resources there. Amounts of all 

resources must be verified. 

943.3 Conditions Affecting Further Verification. The reviewer 

shall check the accuracy of account information provided by the individual and 

check for the existence of non-declared accounts through inquiries to banks or 

banking institutions for the following situations: 

• Household member alleges ownership of an account. 

• Evidence appears to contradict household's negative allegation of 

an account. 

• Household member uses a banking institution to cash checks or 

for direct deposit of checks. 

• IEVS or other collateral inquiry reveals possible resources. 

950 NONRECURRING LUMP-SUM PAYMENTS - 212. Household 

circumstances may indicate the possibility of a recent lump-sum payment. For 

example, a household in which there has been a recent death may have 

received a lump-sum insurance settlement or a household that recently moved 

may have received a refund of rental or utility deposits. Such payments that 

have been deposited in bank accounts should appear in routine verification of 

liquid resources. If there is a possibility that the household received a lumpsum payment and it does not appear as a declared resource, the reviewer must 

ask the household if it received such a payment and document the worksheet 

appropriately. 

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960 OTHER LIQUID ASSETS. If the household owns any personal 

property that is not exempted from consideration as a resource, the reviewer 

must determine the value of such property through any reliable and reasonable 

method i.e., sales slips, personal property tax assessment, catalog, existing 

insurance appraisal, and local merchants. 

In the absence of evidence to the contrary, the reviewer may accept a 

household's statement that they own no such personal property. 

970 REAL PROPERTY - 221. The reviewer must determine if the 

household owns any real property (i.e., land or buildings). The reviewer must 

then determine if any is excludable from consideration as a resource, such as a 

home and lot; and property producing income consistent with its value. The 

reviewer must then determine the value of any property, such as recreational 

property, which is a countable resource. 

971 When Property Is Acknowledged. Where it is known from 

either the household's statement, the case record, or other sources that the 

household owns property, the reviewer must verify what property is excludable 

and the equity value of property not excludable. Sources of verification are: 

• Courthouse Records 

• Tax Records 

• Real Estate Transfer Division 

• Title Search 

• Municipal Building Inspection Compliance records 

972 When No Property Is Acknowledged. When no property is 

acknowledged, or only excludable property, the reviewer must follow up to 

determine that the household owns no real property, or only excludable 

property. 

For the following households the reviewer may accept the household's 

statement that it has no property unless there is evidence to contradict the 

household's negative allegation. 

• Household resided AORD in government/tribal public housing or 

federally subsidized housing such as the Housing Authority/Tribal 

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Housing Authority (THA), Housing and Urban Development (HUD) 

or Section 8. 

• Household was homeless AORD. 

For all other households the reviewer will routinely check for property 

ownership. Checks are made through county records when the reviewer is in 

possession of information needed to retrieve the property data; for example, 

the names of all the adult members of the household where there is an alpha 

index. When the reviewer does not have the information needed to retrieve 

the property data, the reviewer may have to look elsewhere to obtain the data 

by which the property information is retrievable. When there is no such source 

and no reason to believe there is property or only excludable property 

ownership, the negative allegation will be accepted. The file must be clearly 

documented to show why no verification was obtained. 

980 VEHICLES - 222. For each adult household member the reviewer 

shall verify the household's positive or negative allegation of vehicle ownership 

via inquiry through the State Department of Motor Vehicles (DMV) or its 

equivalent. The reviewer shall also determine status (with respect to use and 

license) and the value of all vehicles owned by the household. Information 

such as purchase price, encumbrances against the vehicle, and the name of the 

organization financing the purchase would aid the reviewer in determining the 

effect of motor vehicle ownership on eligibility. The value of some licensed 

vehicles is excluded as a resource. To establish the value of motor vehicles the 

reviewer shall use the National Automobile Dealers Association (NADA), “blue 

book", or equivalent. In addition, car valuations can be verified by other 

sources (i.e., car dealers) that can provide an approximate valuation based on 

make, model and year of the vehicle. 

Whether the recipient alleges ownership of a motor vehicle or not, the 

reviewer shall check via inquiry through the State Department of Motor 

Vehicles (DMV) or its equivalent the accuracy of the information, and to 

explore potential ownership of other vehicles not alleged. This check shall be 

completed even if the household provides proof of ownership. In addition, 

reviewers may have to contact other collateral sources when DMV records 

differ from the household's statement. 

When the household alleges ownership of a motor vehicle the reviewer shall 

examine the registration card and record the following information on all 

licensed vehicles: 

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9 - 8 

• Registered owner 

• Make 

• Model 

• Year 

990 OTHER NON-LIQUID RESOURCES - 224. The reviewer must 

determine ownership, status with respect to inclusion and exclusion, and equity 

value of non-liquid resources not covered in Elements 221 and 222. Documents 

that can be used as the basis of verification of such items are things such as 

sales agreements and tax records as well as items mentioned under sections 

970 and 980 above. 
FNS HANDBOOK 310 

CHAPTER 10 

INCOME

1000 GENERAL. This chapter describes the procedures for verifying 

household income and for determining variances in income. 

1010 VERIFICATION AND VARIANCE DETERMINATION 

PROCEDURES 

1011 Verification. Households may receive income from one or more 

types of sources, e.g., wages or a salary, a public assistance grant, a selfemployment enterprise, alimony payments. The income verification 

procedures are based on the source of the income. Income is verified for the 

budget or issuance month(s), depending upon the specific eligibility, budgeting, 

and reporting requirements. (Refer to Chapter 7.) In some instances, income 

is also verified for other months, e.g., the receipt of a student grant that has 

to be prorated over a specific period. 

1012 Variance Determination. The variance determination process 

depends upon how the income is received, i.e., stable, fluctuating, annualized, 

or received on some other schedule. In making the variance determination, the 

reviewer needs to determine how the eligibility worker treated the income, if 

the worker correctly applied the certification policy(s), if the worker made any 

computational errors, if the recipient correctly reported income, and if the 

recipient correctly reported income changes. 

1013 Terminology. In general, the procedures in this chapter are based 

upon the following terminology. 

1013.1 Annualized income is self-employment income, e.g., farmers, or 

contract income which is intended to represent a household's annual income 

and which is prorated evenly or unevenly over a 12-month period. 

1013.2 Anticipated Income is counted when its receipt is reasonably 

certain. "Reasonably certain" is to be decided on a case-by-case basis by the 

State agency in conjunction with the household. The provisions on change 

reporting in section 223.2 concerning earliest date is applicable to determining 

when income can be reasonably anticipated. 

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1013.3 Averaged Income is income calculated for the certification 

period based on a household’s anticipation of monthly fluctuations over the 

certification period. The State agency may establish averaging methods to be 

applied to certain types of households. (Conversion does not constitute 

averaging.) 

1013.4 Conversion is changing weekly or biweekly income to a monthly 

amount by (1) multiplying weekly amounts by 4.3 and biweekly amounts by 

2.15, or (2) using the State agency's public assistance standard. When 

processing monthly reports, State agencies have the option of converting to a 

regular monthly amount income that is received weekly or biweekly. The State 

agency must choose one option for all change reporters and one option for all 

monthly reporters. If the EW was required to convert income, the QC reviewer 

must convert. The QC reviewer must use the State agency's applicable 

conversion method. If an EW was not permitted to convert income (i.e., the 

recipient receives less than a full month’s income from the source), the 

reviewer must not convert. If the State agency did not select an option, the 

QC reviewer will use actual income. 

1013.5 Fluctuating income is earned or unearned income that varies 

monthly in amount and/or by source. Such income may be averaged or 

unaveraged. 

1013.6 Prorated income is income that is divided among the household 

members (including any ineligible household members, if appropriate) or 

among the individuals for whom it is intended, or income divided by the months 

for which it is intended to cover, e.g., a student grant. 

1013.7 Stable income is income that is received in a fixed amount from 

the same source(s) on a regular schedule. 

1020 VERIFICATION REQUIREMENTS - EARNED INCOME 

1020.1 Credit check for verification of earned income. This 

element will serve as an optional tool for the verification of earned income. A 

credit check may be used when the reviewer wants to further investigate or 

establish a financial profile of household members. 

1021 Wages and Salaries - 311. This element refers to income 

earned by a recipient through the receipt of wages, salaries, tips, or 

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commissions. The reviewer must verify whether any household members were 

employed and the amount and frequency of earnings. (See section 512.) 

1021.1 Positive Allegation. When the household admits that a 

household member earns wages or salaries, the reviewer must determine the 

name of employer, the amount and frequency of earnings; and the type of 

employment (full-time, part-time, etc.). 

For standard verification the reviewer must contact the employer or examine 

wage stubs or pay envelopes, if they cover the period of employment under 

review and there is no indication of other employment. 

1021.2 Negative Allegation. If the household states that it received no 

earned income during the appropriate month, the reviewer shall further 

investigate household circumstances to ensure that the household did not have 

any earned income. Exploration of past employment, including types of work 

and former employers, may provide indications of employment during the 

appropriate month. 

Information obtained while verifying other elements of eligibility, with 

individuals such as relatives, school officials, landlord, etc., may show the 

participant is frequently absent from the home. This may be an indication of 

the participant's employment. 

Additional situations that the reviewer must investigate are: 

• Indications that the head of the household is not at home during 

regular working hours and leaves at the same time every day 

• Difficulty in finding the head of the household at home 

• Seasonal employment at its peak in the area where the 

participant lives 

• Shelter costs higher than reported income. 

1021.3 Verification. The verification requirements in this section are 

minimum requirements (See section 513.2). It is the responsibility of the 

reviewer to find all sources of income in determining actual household 

circumstances for the review period. If in the course of the review doubts are 

raised concerning household circumstances (i.e. unexplained income, suspected 

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seasonal work, etc.), the reviewer must verify actual circumstances and must 

investigate any potential sources of additional income. 

• IEVS. The reviewer shall complete an IEVS check for all adult 

household members to verify the household's positive or negative 

allegation of earned income. (See section 512 on IEVS matching.) 

• No Further Investigation. When an IEVS check is done in 

accordance with section 512, if the IEVS records do not indicate 

recent employment, and no indication of information to the 

contrary has arisen during other collateral contacts, then no 

further verification is required. 

• Further Investigation. When the IEVS check is done in 

accordance with section 512 and the IEVS records indicate 

employment within the most recent quarter, the reviewer must 

check with the recipient and these employers to verify the 

employment situation for the appropriate month. 

1022 Self-Employment - 312. Reviewers must ask all households if 

they have any income from self-employment enterprises. Examples of selfemployment income include but are not limited to: farmers; income derived 

from rental property when a member of the household is actively engaged in 

management of the property at least an average of 20 hours per week; 

payments from a roomer or boarder; and independent contracting. Selfemployment income may be received according to a variety of schedules. Selfemployment income can be received in a variety of forms including a lump sum 

payment, in fluctuating payments, seasonal payments, or regular "salary" 

payments. Frequently more than one form of income will appear for a selfemployment enterprise. 

1022.1 Positive Allegation. When the household admits to selfemployment, the reviewer must describe the type of enterprise and verify the 

amount of income by means of as many of the following documents as 

necessary: 

• Recent tax returns or business records 

• Receipts for business expenses 

• Household's statement about estimated earnings 

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In determining expenses, the reviewer must take into account which expenses 

are allowable based on certification policy. 

1022.2 Negative Allegation. Denials of self-employment must be 

verified in the same manner as denials of wages and salaries discussed in 

section 1021.2. 

1023 Other Earned Income - 314. The reviewer must ask if the 

household received other earned income, which can include: 

• Income from other work (such as a paper route, running errands, 

cutting lawns, babysitting, or doing other "cash" jobs); and 

• Training allowance from vocational and rehabilitative programs 

sponsored by Federal, State, or local governments to the extent 

they are: 

1. Not a reimbursement, or 

2. Not excludable by Federal law. 

1023.1 Positive Allegation. The reviewer must verify the amount and 

frequency of other earned income by means discussed in the preceding sections 

on earned income or by other appropriate means such as receipts. The 

reviewer must verify through the appropriate office the amount of any training 

allowances received by the household. 

1023.2 Negative Allegation. In the absence of contradictory evidence, 

the reviewer may accept the household's claim of no other earned income. 

1030 VERIFICATION STANDARDS FOR UNEARNED GOVERNMENT 

BENEFITS. The reviewer must verify the receipt and amounts of any 

unearned income identified in the case record, ask the household if it received 

any other unearned income by specifically mentioning each of the other types 

specified in the following sections, and must verify such income items. 

Household disclaimers of unearned income should be evaluated in the context 

of the household circumstances and history. For example, review of the 

recipient's employment history may indicate possible eligibility for 

unemployment compensation or veteran's benefits. The reviewer must 

establish a basis for a decision of non-receipt of benefits regardless of the 

recipient’s denial of receipt of income. (See section 512.) 

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1031 Retirement Survivors' and Disability Insurance (RSDI) 

Benefits - 331. Regardless of whether the household alleges receipt of RSDI 

benefits, the reviewer shall check for all household members the accuracy of 

the information through SSA's data exchange system. In addition, the reviewer 

may have to use other collateral sources such as SSA's current award 

letter/correspondence or direct contact with the SSA district office to obtain 

RSDI benefit information. 

1032 Veterans' Benefits - 332. 

1032.1 Positive Allegation. For standard verification use the following: 

• Current Veteran's Administration (VA) Award notice 

• Direct contact with a VA representative 

1032.2 Negative Allegation. See IEVS Matching, section 512. 

1033 Supplemental Security Income (SSI) - 333. Regardless of 

whether the household alleges receipt of SSI benefits, the reviewer shall 

routinely check for all household members the accuracy of the information 

through SSA's data exchange system. In addition, the reviewer may have to use 

other collateral sources such as SSA's current award letter/correspondence or 

direct contact with the SSA district office to obtain SSI benefit information. 

1034 Unemployment Compensation - 334. 

1034.1 Positive Allegation. The reviewer must verify the amount and 

date that unemployment compensation was received. For standard verification 

use the following: 

• Current award certificate 

• Official correspondence 

• Direct contact with the appropriate agency administering the 

unemployment compensation program 

1034.2 Negative Allegation. (See IEVS Matching, section 512.) 

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1035 Worker's Compensation - 335. 

1035.1 Positive Allegation. For standard verification the Workmen's 

Compensation award notice is the best evidence. When the award notice is 

unavailable, the reviewer must contact the Workmen's Compensation office to 

verify the amount of the payment received during the appropriate month. 

1035.2 Negative Allegation. (See section 512). 

1036 Other Government Benefits - 336. Other government 

benefits include but are not limited to Black Lung Benefits, Railroad 

Retirement payments, and payments to farmers by USDA. 

1036.1 Positive Allegation. For standard verification use the following: 

• Current award certificate. 

• Official correspondence. 

• Direct contact with the appropriate agency that provides the 

payments. 

1036.2 Negative Allegation. (See section 512.) 

1040 VERIFICATION STANDARDS FOR OTHER UNEARNED 

INCOME. 

1041 Contributions/Income-In-Kind - 342. 

1041.1 Alimony Payments. An important type of contribution is alimony 

payments. The composition of the household may indicate whether the 

reviewer should seek additional information with regard to the probability of 

child support (see section 1050 for further review instructions regarding child 

support) or alimony payments. 

• Positive Allegation. The primary source of verification for 

declared support payments and contributions is contact with the 

person making the contribution. When support payments or 

contributions are made through a third party, such as a court or 

probation office, verification can be made through that agency. 

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The reviewer shall be alert to the effect of timing and the 

amount of payment relative to the review date. 

• Negative Allegation. The household’s denial of receipt of 

alimony payments or contributions may be accepted in the 

absence of evidence to the contrary. If there is a conflict in 

information provided by the household and that provided by 

collateral contacts, the reviewer should obtain a statement if 

possible from the person making the alimony payments or 

contributions, copies of canceled checks, etc., to help resolve 

the conflict. 

• Documentation. 

1. From Household. The following are documents or other 

records for verification generally available from the 

participant: 

a. Divorce or separation decree 

b. Court order 

c. Alimony check 

d. Alimony agreement or 

e. Correspondence regarding alimony payments. 

2. From Other Sources. The following are other sources 

available for verification: 

a. Court records 

b. Lawyer's records 

c. Canceled check of person making contribution 

d. Income tax returns or 

e. Employer's record of attached wages. 

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1041.2 Income-In-Kind. Reviewers should verify that no income-in-kind 

is included as part of the household's food stamp income. An example of 

income-in-kind is a rent-free apartment furnished as a part of the 

compensation package for a recipient working as a building manager. This 

should be excluded. 

1042 Deemed Income - 343. The amount of income deemed to the 

household from the sponsor (and the sponsor’s spouse) of a non-citizen member 

of the household must be verified. This can be accomplished by reviewing the 

documentation in the case record, including any TANF part of it. Any 

inadequacies in verification in the case record must be remedied by having the 

household obtain the needed documentation from the sponsor or the sponsor’s 

spouse. If the household with a non-citizen member alleges no sponsor of the 

non-citizen, the reviewer must contact INS for verification. If INS states that 

there is a sponsor, the reviewer must follow up appropriately. In addition, the 

possibility of income from a sponsor (or a sponsor’s spouse) in excess of the 

amount deemed must be explored and verified and included as income to the 

household. (See section 822.1.) 

1043 PA or GA - 344. The receipt and amount of any PA or GA 

payments which the household claims must be verified either through contact 

with the paying agency or from official correspondence from the agency. (See 

section 512.) 

1044 Educational Grants, Scholarships, and Loans - 345. The 

reviewer must verify the source of income (i.e., Title IV, BIA, JTPA, Perkins 

Act), the amount of income, the period of time it was intended to cover, any 

earmarked amounts for allowable expenses and amounts used for tuition and 

mandatory fees, books, supplies, transportation, and other miscellaneous 

personal expenses (other than living expenses) for the same period of time, and 

origination fees and insurance premiums on loans. Mandatory fees include the 

rental or purchase of any equipment, materials, and supplies related to the 

pursuit of the course of study involved. 

Most educational assistance and tuition, mandatory fees and earmarked 

amounts may be verified by contacting the school the student attended. 

Educational assistance and earmarked amounts may also be verified by the 

provider agency, e.g., the Veteran's Administration for some veteran's 

educational benefits. The student may provide verification for the exclusion of 

amounts used for the allowable costs. 

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1044.1 Positive Allegation. When a household admits that a household 

member receives educational grants, scholarships, and loans, the reviewer 

must verify the income and expenses through sources such as the following: 

• Contact with the school the student attended 

• Contact with the provider agency 

• Receipts for expenses 

• Prevailing transportation rates. 

1044.2 Negative Allegation. If there was no member who was a 

student, the household's denial of receipt of educational funds may be 

accepted in the absence of evidence to the contrary. At a minimum, for 

households with a student, the reviewer must contact the school to verify 

whether or not the student received educational assistance. 

1045 Other Unearned Income - 346. The reviewer must verify the 

receipt and amount of other types of unearned income. Several examples are 

discussed below. (See section 512.) 

1045.1 Foster Care Payments. When there is a foster child or adult in 

the household, the reviewer shall verify through the appropriate office whether 

the child or adult is legally assigned to the household and the amount paid each 

month for such foster care. 

1045.2 Dividends and Interest. Interest on a savings account and 

bonds, and dividends from investments such as stocks may be paid annually or 

more frequently. At the time the household is certified, the participant is to 

report such income. The EW may have averaged this income at the request of 

the household or may have counted the income only in the month it was 

expected to be received. The reviewer shall determine if the household 

reported the receipt of such money and the amount that should be considered 

income during the appropriate month. If such income was averaged, the 

reviewer shall also average in accordance with certification procedures. If the 

reviewer discovers such income, which was not reported either at the time of 

certification or at the time it was received, the interest or dividend shall be 

counted as income in the month in which it was received. 

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1045.3 Rental Income. Gross income derived from rental property must 

be verified. The costs of doing business must be verified and excluded from 

the gross income. 

1045.4 Pensions and Union Benefits. A recipient may state that 

he/she received pension(s) or union benefits. A review of the recipient's 

employment history may indicate possible eligibility for a company retirement 

pension, or past union membership could indicate possible benefits from that 

source. If the household indicates that it received pension (s) or union 

benefits, the source and amount must be verified using the procedures in 

section 1021.1. If there is an indication that the recipient may have been 

entitled to or is receiving a pension or union benefits, the reviewer must 

establish a basis for a decision of non-receipt of benefits more substantial than 

the recipient's denial of receipt of income. Work sheet documentation must 

clearly reflect the basis for the decision. 

1046 TANF - 347. (See section 1043.) 

1050 CHILD SUPPORT PAYMENTS RECEIVED FROM ABSENT 

PARENT - 350. 

An important type of household income in many cases is child support 

payments. The composition of the household may indicate whether the 

reviewer should seek additional information with regard to the probability of 

support payments. 

• Positive Allegation. The primary source of verification for 

declared support payments and contributions is contact with the 

person making the payments. When support payments or 

contributions are made through a third party, such as a court or 

probation office, verification can be made through that agency. 

The reviewer shall be alert to the effect of timing and the 

amount of payment relative to the review date. 

• Negative Allegation. The reviewer may accept the household’s 

negative allegation if: 

1. The absent parent is making child support payments to the 

child support enforcement agency, or 

2. The absent parent is incarcerated. 

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Otherwise, the reviewer shall consider that there is a possibility 

of support payments or contributions being made on a voluntary 

basis without legal liability for such contributions. When the 

household states that it does not receive support payments and 

the location of the person liable for support is known, the 

reviewer must attempt to contact the person liable for such 

payments. If the person’s location is not known, if the person 

cannot be contacted, or if the person denies making support 

payments as of the budget or sample month, the reviewer shall 

contact the child support enforcement agency. 

Where contact is attempted, the reviewer should be sensitive to the delicate 

nature of the contact and proceed accordingly. Where no contact is attempted 

because it would be inappropriate, the reviewer should document the 

worksheet appropriately. 

If there is a conflict in information provided by the household and that 

provided by the absent parent, the reviewer should obtain a statement from 

the absent parent, copies of canceled checks, etc., to help resolve the conflict. 

• Documentation. 

1. From Household. The following are documents or other 

records for verification generally available form the 

participant: divorce or separation decree; court order; 

contribution check; support agreement; or correspondence 

regarding support payments. 

2. From Other Sources. The following are other sources 

available for verification: court records; lawyer’s records; 

canceled check of person making contribution; income tax 

returns; or employer’s record of attached wages. 

1060 VARIANCE DETERMINATIONS. Once income has been verified, 

the reviewer must determine whether there were any variances in terms of 

eligibility or budgeting. The procedures in section 1061 shall be used for 

determining eligibility. Budgeting variances shall be determined using the 

procedures in sections 1062, 1063, 1064, 1065, 1066, 1070, and 1080. 

The variance determination process for income is dependent on the type of 

income and the reporting requirements to which the household is subject.

Refer to Chapters 2 and 7 for the review procedures used in determining 

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variances for households subject to monthly reporting, quarterly reporting, and 

semi-annual reporting, and for households receiving transitional benefits 

allowances.

1061 Eligibility. Unless a household was categorically eligible, it must 

meet the income test(s). Households that contain an elderly or disabled 

member, must meet the net income test. All other households must meet both 

the gross and net income tests. 

1061.1 Prospective Eligibility. For households participating based on 

prospective eligibility, the reviewer shall apply the appropriate income test(s) 

to the income verified for the sample month. If the household's sample month 

income meets the income test(s), the household is prospectively eligible based 

upon income. 

If the household's sample month income exceeds the income limit(s), the 

reviewer must determine whether this is the result of a variance that is 

included in the error determination. If the variance is included the case shall 

be reported as ineligible. The reviewer shall use the appropriate time frames 

for reporting and acting on changes to determine whether there is an excluded 

variance. (See Chapter 7.) 

1061.2 Retrospective Eligibility. For households participating based on 

retrospective eligibility, the reviewer shall apply the appropriate income 

test(s) to the income verified for the budget month. If the household's budget 

month income meets the income test(s), the household is eligible based upon 

income. If the household's budget month income exceeds the income limit(s), 

the case shall be reported as ineligible and a variance cited. 

1061.3 Categorical Eligibility. A categorically eligible household is 

eligible for food stamps regardless of whether its income exceeded the limit(s). 

If the reviewer becomes aware that a categorically eligible PA household has 

more income than allowed by the PA limit(s), this information shall be reported 

to the agency but shall not result in the case being reported as ineligible for 

food stamp benefits. When a case is found to have been incorrectly classified 

as categorically eligible, the reviewer shall use the income test(s) as 

applicable. For example, if the reviewer finds that a household contained an 

elderly individual who was not included in the PA budget and who did not 

receive SSI, the food stamp net income test would be used. If the income 

exceeded the household's net income limit, the household was ineligible. 

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1062 Unearned Income 

Households subject to change reporting requirements are only required to 

report changes in unearned income when there is a change of more than $50 in 

monthly income. For cases subject to change reporting, QC will use the 

following procedures in reviewing unearned income. These procedures apply to 

both stable and fluctuating income. They apply to both prospectively and 

retrospectively budgeted unearned income. They apply to both 

reported/processed sources and unreported/unprocessed sources of unearned 

income. 

A. Compare the QC verified budget month income to the worksheet amount. 

In prospectively budgeted cases the budget month is the sample month (SM). In 

retrospectively budgeted cases the budget month is one or two months prior to 

the sample month, depending on the system used by the State. If there is no 

difference, there is no variance. Use the verified budget month amount in the 

error determination process. If there is a difference, proceed to Step B. 

B. Correct the worksheet amount for misapplication of policy and 

computational errors by the EW and for incorrect reporting (including failure to 

report) by the household at the time of certification, recertification, or the last 

reported change. Compare the QC verified budget month amount to the 

corrected worksheet amount. If there is no difference, use the corrected 

worksheet amount in the error determination process. If there is a difference, 

go to Step C. 

C. Determine if the difference can be excluded based on the reporting 

requirements in Chapter 2 or the exclusionary time periods in Chapter 7. 

NOTE: If there was more than one source of unearned income, the reviewer 

must total the corrected worksheet unearned income and compare it to the 

total QC verified budget month unearned income to determine if there was a 

change of more than $50 that had to be reported. 

If the difference is a result of a change that can be excluded based on the 

reporting requirements or the exclusionary time periods, use the corrected 

worksheet amount from Step B in the error determination process. If the 

difference cannot be excluded, a variance shall be cited, and the reviewer 

shall use the QC verified budget month amount in the error determination 

process. 

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If there is more than one variance in an income source, the reviewer must 

arrange all variances in chronological order. The reviewer must then 

determine if the latest variance is an included or an excluded variance based 

upon time frames for reporting and acting on changes. 

• If the latest variance is an included variance, the reviewer shall use the 

QC verified budget month amount in the error determination process. 

• If the latest variance is an excluded variance, the reviewer shall use the 

income amount that reflects the full effect of the latest included 

variance(s).

1063 Prospectively Budgeted Earned Income $100 Change 

Reporting 

These procedures apply to households that are required to report changes in 

the total amount of monthly earned income of more than $100. These 

procedures apply to reported/processed sources of income. These procedures 

apply to income received in beginning and other months. 

Fluctuating earned income may be averaged or unaveraged, at the State’s 

option. Any income that does not meet the definition of averaging must be 

considered unaveraged income. The same basic review procedure must be 

used for averaged fluctuating income, unaveraged fluctuating income, and 

stable earned income. For averaged income, the reviewer must use the most 

recently calculated averaged income that is or should have been in effect for 

the sample month; i.e., if the EW reaveraged for any reason after certification 

but prior to the review date, and that reaveraged amount should have been 

used to determine the sample month's issuance but was not, the reaveraged 

amount would be used as the corrected eligibility worker's figure. If the 

eligibility worker was required to convert, the QC reviewer must convert 

verified income for the appropriate month(s). Any other misapplications of 

policy or incorrect computations must be corrected. 

In the error determination process, any vacation or sick pay received by the 

recipient must be counted by the QC reviewer as income in the month 

received. Vacation and sick pay are considered to be from the same source as 

the normal pay source, unless it is a terminated source. If it is a terminated 

source, the vacation or sick pay would be treated as a non-recurring lump-sum 

payment if the pay was received once in a lump sum. 

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Section 722 must be used to determine whether income from a new or 

terminated source is used in the error determination process. 

All reported earned income sources must be added together before doing the 

calculations called for in sections 1063.1 and 1063.2. If a case contains both 

reported and unreported sources of earned income any reported sources must 

be reviewed in accordance with section 1063.1 and 1063.2, as appropriate, and 

any unreported sources must be reviewed in accordance with section 1063.3. 

• Interim Change. 

1. For purposes of determining the effective month of a 

certification action under 1063.1 and 1063.2, an interim 

change is a recalculation of a case’s food stamp benefits 

resulting from: 

a. Change reported by the household; or 

b. Change the agency becomes aware of through a source 

other than the household with the exception of nonincome related mass changes. Income related mass 

changes include, but are not limited to, SSA and SSI COLA's 

and across the board adjustments to TANF. Non-income 

related mass changes include, but are not limited to, 

adjustments to SUA's and caps on dependent care 

deductions. 

2. The recalculation does not have to result in a change to the 

allotment. In order to be considered an interim change under 

this definition, the certification record must document that 

two things have occurred: 

a. Either a change is reported by the household, or the 

agency becomes aware of the change; and 

b. The eligibility worker has to act on the change, which 

includes the eligibility worker's documented decision that 

the change will not affect the household's allotment. 

• Effective Date of a Certification, Recertification, or Interim 

Change. In determining whether to use procedures at 1063.1 

(first and second month) or 1063.2 (third month and later), the QC 

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reviewer needs to consider when a certification action became 

effective rather than when the action was taken. 

Example of an Effective Month After 

the Date of the Action: The EW 

recertifies a household on April 25 for 

May through October. May is the first 

effective month of the certification 

action. 

Example of an Effective Month Before 

the Date of the Action: A household 

applies for benefits on September 10. 

On October 4, the EW certifies the 

household for September through 

December and issues benefits 

retroactively for September. Even 

though the certification action did not 

occur until October 4, the first effective 

month of the certification action is 

September, the month of initial 

certification. 

The reviewer must use the following procedures to determine 

whether any variances exist. These procedures apply to both stable 

and fluctuating sources of earned income. 

1063.1 First and Second Effective Months of a Certification 

Action. If the sample month was the first or second effective month of an 

initial certification, a recertification, or an interim change, the reviewer must 

review income using the procedures in this section. This section must also be 

used for the third effective month if using procedures at 1063.2 would take the 

QC reviewer outside of the effective period of a certification action. 

In the steps below, QC must use converted income as appropriate. 

• Comparison I. Verify the sample month income. This income is 

used in the Comparison I allotment test at section 621. If the 

Comparison I allotment test results in an allotment difference 

greater than $25 from the authorized allotment, proceed to the 

next step. 

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• Comparison II. 

1. If necessary, correct the worksheet income figure at the time 

income from each source was last calculated for the 

allotment under review for misapplication of policy and 

computation errors by the eligibility worker, and for incorrect 

reporting by the household. In the case of previously known 

and processed sources of income, in which a change has been 

reported by the household, or otherwise become known to the 

agency, and the eligibility worker has failed to process the 

change, correct the worksheet income figure for the time the 

change became known or was reported. 

2. Using 722, determine whether any changes occurred in the 

household's circumstances that should have been in effect as 

of the review date, excluding unreported/unprocessed 

income. If any change should have been in effect, use the 

change in the error determination. If there was no change 

that should have been in effect, use the eligibility worker's 

corrected figure in the error determination. 

Example of case in which the eligibility worker’s figures are used in the 

error determination: 

Change made in example 

Certification Period: March 1 through July 31 

Sample Month: March 

Certified: February 25 

Verified March Income: $1025 

Income on Worksheet: $890 

The eligibility worker correctly added together eight weekly pay stubs from 

January and February and converted the income to $890 monthly. The 

household correctly reported at the time of certification. 

The reviewer will use $890 in the error determination process because the 

income was correctly determined at the time of certification and AORD 

insufficient time has passed since the certification action for any changes to be 

included in the error determination. 

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Example of case in which the corrected eligibility worker’s figures are used 

in the error determination: 

Certification Period: March 1 through August 31 

Sample Month: March 

Certified: February 25 

Verified March Income: $1530 

Income on Worksheet: $890

The eligibility worker added together biweekly pay stubs from January and 

February and converted the income to $890 monthly. However, the QC 

reviewer discovered that the household actually received income weekly. The 

QC reviewer must correct the EW's figure by adding together the weekly pay 

stubs for January and February and converting using the correct weekly 

conversion factor. The corrected figure must be used in the error 

determination process. Insufficient time has passed since the certification 

action for any changes to be included in the error determination, so only the 

error at certification is included. 

Example of case in which the eligibility worker’s figures, following an 

interim change, are used in the error determination: 

Certification Period: January 1 through August 31 

Sample Month: June 

Certified: January 15 

Interim Change: May 10 

Verified June Income: $870 

Income on Worksheet: $903 

The recipient was interviewed on January 2 and certified on January 15 with 

monthly income of $210. On May 1, the recipient's employment changed from 

part-time to full-time. She received her first full-time pay check on May 7. 

She reported the change to the State agency on May 8 and provided verification 

that she could expect to work about 35 hours per week at $6.00 per hour. On 

May 10 the State agency prepared a budget for June through August, based on 

monthly income of $903 ($6 x 35 x 4.3). The reviewer will use $903 in the 

error determination process because the income was correctly determined at 

the time of the interim change and AORD insufficient time has passed since the 

interim certification action for any changes to be included in the error 

determination. 

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Example of case in which the sample month is the third effective month of 

a certification action and an unreported change has occurred which must be 

included in the error determination: 

Certification Period: June 1 through May 30 

Sample Month: August 

Recertified: May 20 

Verified August Income: $460 

Income on Worksheet: $325 

The State agency has a 12-day NOAA period; requires averaging at least two 

full months of income to determine a "best estimate" of anticipated income; 

and requires reporting of actual changes of more than $100 from the monthly 

average. 

Although August is the third effective month of a certification action, using 

procedures at 1063.2 would take the reviewer outside of the effective period 

of the certification action since the State agency has a 12-day NOAA (i.e. the 

first full month ending 32 days prior to the review date is May which is prior to 

certification.) Therefore, procedures at 1063.1 are used in reviewing income. 

In recertifying the household, the EW correctly averaged income from April 

($300) and May ($350) to compute a best estimate of $325. On June 5, the 

household received its June paycheck of $460 that was neither reported by the 

household nor processed by the State agency. 

The QC reviewer determined that the change to $460 must be included in the 

error determination since the household was aware of the change more than 32 

days prior to the review date and the change exceeded the best estimate of 

$325 by more than $100. Based on certification policy, the QC reviewer 

determined one way to include this change was by averaging income from 

April, May and June [($300 + $350 + $460) ÷ 3 = $370]. Thus, $370 is used in 

determining the error amount. It should be noted that $370 is used in the error 

determination even though it differs by $100 less from the corrected EW's 

figure. 

1063.2 Third Effective Month or Later Following a Certification, 

Recertification, or Interim Change. If the sample month was the third 

effective month or later, the reviewer must review the income using the 

procedures in this section. If the review date is such that the following 

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procedures would take the QC reviewer outside of the effective period of a 

certification action, use section 1063.1. This will apply to most states for 

completion of March sample month cases, and states with 10+ days notice of 

adverse action periods. 

In the steps below, QC shall use converted income as appropriate. 

• Comparison I. Verify the sample month income. This income is 

used in the Comparison I allotment test at section 621. If the 

Comparison I allotment test results in an allotment difference 

greater than $25 from the authorized allotment, proceed to the 

next step. 

• Comparison II. 

1. If necessary, correct the worksheet income figure at the time 

income from each source was last calculated for the 

allotment under review for misapplication of policy and 

computation errors by the eligibility worker, and for incorrect 

reporting by the household. In the case of previously known 

and processed sources of income, in which a change has been 

reported by the household, or otherwise become known to the 

agency, and the eligibility worker has failed to process the 

change, correct the worksheet income figure for the time the 

change became known or was reported. 

2. Compare the verified sample month's income to the corrected 

eligibility worker's income figure. 

3. If the two income figures vary by $100 or less, use the 

eligibility worker's corrected income amount in the error 

determination process. 

4. If the two income figures vary by more than $100, the 

reviewer must verify the household's fluctuating income for 

the full month ending 30 days prior to the review date. This 

month is referred to as the error determinant month. The 30-

day period is based upon the regulatory time frames for 

reporting and acting on changes. For states with notice of 

adverse action periods other than 10 days, the 30-day time 

frame must be adjusted up or down accordingly. If this 

amount varies by $100 or less from the corrected eligibility 

worker's income figure, use the corrected eligibility worker's 

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income figure in the error determination process. If this 

amount varies by more than $100 from the corrected 

eligibility worker's income figure, use the amount from the 

error determinant month in the error determination process. 

In the following examples, the State agency has a 10-day notice of adverse 

action period unless otherwise specified.

Example of case in which the eligibility worker’s figures are used in the 

error determination (EW’s figures vary by less than $100 from the sample 

month):

Sample Month: November 

Income for November: Nov. 6 $2420.91 

Nov. 13 224.13

Nov. 20 260.93

Nov. 27 209.15

Total $925.12

Income for May, June, July: 

May 4 $209.42 June 1 $203.76 July 6 $94.64 

May 11 201.46 June 8 213.40 July 13 213.25 

May 18 122.13 June 15 212.25 July 20 147.16 

May 25 260.48 June 22 195.39 July 27 226.40 

June 29 215.46

 Total $793.49 $1,040.26 $781.45 

The eligibility worker, using the pay stubs from May, June, and July, calculated 

an average monthly income of $872. The verified income for the sample month 

of November is $925. The eligibility worker correctly computed an average. 

The income received during the sample month is within $100 of the eligibility 

worker's figures. Therefore, $872 would be used in the error determination 

process. 

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Example of case in which the eligibility worker’s figures are used in the 

error determination (EW’s figures vary by less than $100 from the error 

determinant month): 

Certification Period: May 1 through October 31 

Sample Month: August 

Income for August: $1020 

Income for June: $880 

Income for April: $890 

Using four weekly pay stubs for April, the eligibility worker correctly computed 

a monthly income of $890. The verified income for the sample month is $1020. 

The income received in the sample month is $130 more than the eligibility 

worker's figure. Therefore, the reviewer must verify the income for the first 

full month ending 30 days prior to the review date. The income for June is 

$880, which is within $100 of the eligibility worker's figures. Therefore $890 

would be used in the error determination process. 

Example of case in which the corrected eligibility worker’s figures are used 

in the error determination (corrected EW’s figures vary by less than $100 

from the error determinant month): 

Sample Month: November 

Income for November: Income for September: 

Nov. 6 $220.91 Sept. 5 $253.25 

Nov. 13 245.14 Sept. 12 198.78 

Nov. 20 306.93 Sept. 19 235.45 

Nov. 27 203.27 Sept. 26 207.88

Total $976.25 $895.36

Use the same income for May ($793.49), June ($1040.26), and July ($781.45) as 

in the previous Example. The eligibility worker, using the pay stubs for May, 

June, and July calculated an average monthly income of $962. The eligibility 

worker incorrectly computed an average by transposing the income for July 20 

to $417.16. The corrected eligibility worker figure is $872. The income 

received during the sample month is $104 more than the corrected eligibility 

worker's figure. Therefore, the reviewer shall verify the income for September 

- $895. This is within $100 of the corrected eligibility worker's figure. 

Therefore, $872 would be used in the error determination process. 

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Example of case with conversion error: 

Use the same income for May ($793.49), June ($1040.26), and July ($781.45) as 

in the previous Example. The eligibility worker was required to convert the 

income, but did not. The reviewer must correct the eligibility worker's figures 

by converting the income. The corrected income amount would be used as the 

corrected eligibility worker figure in the error determination process. The QC 

reviewer would convert the income for the sample month and for the first full 

month 30 days prior to the review date in doing the error determination. 

Example of case in which the error determinant month is not the month two 

month’s prior to the sample month: 

Certification Period: June 1 through December 31 

Sample Month: November 

Review Date: Nov. 1 

Verified November Income: $850 

Verified August Income: $950 

EW’s figure for Income: $700 

The State agency has a 13-day notice of adverse action period. The EW 

correctly computed monthly income of $700 at certification. No interim 

changes have been processed since certification. The verified sample month 

income is $850. Since this amount differs by more than $100 from the EW's 

figure, the QC reviewer verifies income for August - the first full month ending 

33 days prior to the review date. August income of $950 is compared to the 

EW's figure and used in the error determination since it differs by more than 

$100 from the EW's figure. 

1063.3 Unreported/Unprocessed Sources of Earned Income. 

If the existence of an earned income source is never reported to the agency, or 

if reported, is never processed by the agency, the reviewer must use the 

income received in the sample month (converted as appropriate) in the error 

determination process. 

Unreported/unprocessed sources of income that should have been annualized 

or prorated shall be reviewed in accordance with instructions in Section 1065. 

Unreported/unprocessed sources of unearned income shall be reviewed in 

accordance with instructions in Section 1062. Any unreported source that 

begins within the exclusionary timeframes must be excluded. 

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1064 Prospectively Budgeted Earned Income - Status 

Reporting 

Households subject to status reporting requirements are only required to report 

changes in earned income when there is a change in (a) source, (b) hourly 

rate/salary, or (c) employment status (part-time to full-time, or full-time to 

part-time). For cases subject to status reporting, QC will use the following 

procedures in reviewing earned income. They apply to reported and 

unreported sources of earned income subject to status reporting. 

The reviewer shall follow these steps (income shall be converted as 

appropriate): 

1064.1 Compare the QC verified sample month (SM) income to the worksheet 

amount. If there is no difference, there is no variance. Use the worksheet 

amount in the error determination process. If there is a difference, go to 

section 1064.2. 

1064.2 Correct the worksheet amount for misapplication of policy and 

computational errors by the EW and for incorrect reporting by the household at 

the time of certification, recertification, or the last reported change. Compare 

the QC verified sample month amount to the corrected worksheet amount. If 

there is no difference, use the corrected worksheet amount in the error 

determination process. If there is a difference, go to section 1064.3. 

1064.3 Determine if the difference can be excluded based on the reporting 

requirements in Chapter 2 or the exclusionary time periods in Chapter 7. 

Note: For households subject to the provisions of status reporting, the 

household was only required to report changes in earned income if there was a 

change in (a) source, (b) hourly rate/salary, or (c) employment status (parttime to full-time or full-time to part-time) as defined by the State agency. For 

such status reporting households, if there was more than one source of earned 

income, the reviewer must make the comparisons at 1064.1 and 1064.2 

separately for each source of earned income rather than totaling earned 

income prior to the comparisons. 

If the difference is a result of a change that can be excluded based on the 

reporting requirements or the exclusionary time periods, use the corrected 

worksheet amount from Section 1064.2 in the error determination process. If 

the difference cannot be excluded, a variance shall be cited, and the reviewer 

shall use the QC verified SM amount in the error determination process. 

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If there is more than one variance in an income source, the reviewer must 

arrange all variances in chronological order. The reviewer must then 

determine if the latest variance is an included or an excluded variance based 

upon time frames for reporting and acting on changes. 

• If the latest variance is an included variance, the reviewer shall 

use QC verified SM amount in the error determination process. 

• If the latest variance is an excluded variance, the reviewer shall 

use the income amount that reflects the full effect of the latest 

included variance(s). 

1065 Annualized and Prorated Income. 

1065.1 Self-Employment. Self-employment income that represents a 

household's annual income must be annualized over a 12-month period. This 

applies even if the income is received during only part of the year, and it 

applies regardless of whether or not the household received income from other 

sources. 

If self-employment income is intended to meet the household's needs for only 

part of the year, it is prorated only over the period of time it is intended to 

cover. 

• Reported Source. When reviewing self-employment income, the 

focus of the review shifts from the income received in the 

budget/sample month to action taken by the EW in handling the 

income and allowable income exclusions when the income was 

last calculated. Regardless of whether the EW anticipated 

income or projected past income, the reviewer must correct the 

worksheet amount for misapplication of policy and computational 

errors by the EW and for incorrect reporting by the household at 

the time of certification, recertification, and when changes were 

subsequently reported. This corrected worksheet amount must 

be used in the error determination process. 

Unreported changes in amount after the time of certification or 

recertification are not considered. 

• Unreported Source. When a household failed to report a source 

of self-employment income, the reviewer must develop an 

average monthly amount to be used in the error determination 

process based on the best information available AORD provided: 

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1. The source was in existence at the time of certification or 

recertification, or 

2. The household subsequently became self-employed and the 

change cannot be excluded based on the time frames for 

reporting and acting on changes. 

1065.2 Contract Income. Households that derive their annual income by 

contract in a period of time shorter than one year must have the contract 

income averaged over a 12-month period, provided it is not received on an 

hourly or piecework basis. 

• Reported Source. 

The reviewer must 

correct the worksheet 

amount for 

misapplication of 

policy and 

computational errors 

by the EW and for 

incorrect reporting by 

the household at the 

time of certification 

or recertification. 

The reviewer must 

then make an 

adjustment for any subsequent changes that cannot be excluded 

based on the reporting requirements and the time frames for 

reporting and acting on changes. This corrected monthly amount 

must be included in the error determination process. 

Example of an Unreported Change in a 

Reported Source: A household was 

certified from October 2003 through 

September 2004 based on an annual 

income of $27,000 or $2,250 a month. 

The teacher received a 2 percent pay 

raise on January 1 but failed to report 

the change. The sample month was 

March. The reviewer must re-annualize 

over the 12-month period and divide by 

12 to determine the monthly income 

amount to be used in the error 

determination process. 

• Unreported Source. When a household failed to report a source 

of contract income, the reviewer shall develop an average 

monthly amount to be used in the error determination based on 

the best information available AORD provided: 

1. The source was in existence at the time of certification, or 

2. The household subsequently gained the contract income and 

the change cannot be excluded based on the time frames for 

reporting and acting on changes. 

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1065.3 Educational Income. Scholarships, deferred educational loans 

and other educational grants, after exclusions, must be averaged over the 

period it is intended to cover. Educational income is not counted until the 

month in which it is received or anticipated with reasonable certainty to be 

received. Once counted, the income, after allowable exclusions, is prorated 

over the entire period it is intended to cover. 

• Reported Source. The reviewer must correct the worksheet 

amount for misapplication of policy and computational errors by 

the EW and incorrect reporting by the household at the time of 

certification or recertification. The reviewer must make an 

adjustment for any subsequent changes that cannot be excluded 

based on the reporting requirements and the time frames for 

reporting and acting on changes. This corrected monthly amount 

must be used in the error determination process. 

• Unreported Source. When a household failed to report a source 

of educational income which should have been included as 

budget month income, the reviewer must develop an average 

monthly amount to be used in the error determination process 

provided: 

1. The source was in existence at the time of certification or 

recertification, or 

2. The household subsequently received the income and the 

change cannot be excluded based on the time frames for 

reporting and acting on changes. 

This amount shall be based on the best information available 

AORD. 

1066 Household With More than One Type of Income. This 

section is used for household with more than one type of reported/processed 

income, i.e., unearned, earned (status or change reporting), annualized or 

prorated income. This section must not be used for households with more than 

one source either the same type of income or income with the same reporting 

requirement. 

The following is an example of a household with multiple sources of a single 

type of income: a household is certified with income from two different 

employers. Even though there are two sources of income, there is only one 

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FNS HANDBOOK 310 

type since both are earned, and both are subject to the same household 

reporting requirement. Therefore, income in this example is reviewed using 

procedures for earned income, based on the household’s income reporting 

requirement. 

In the event a household has more than one type of income, the reviewer must 

use the procedures in this section: 

In the steps below, QC must use converted income as appropriate. 

• Comparison I. To do the allotment comparison in section 621, 

verify the amount of each type and source of income received in 

the sample month, including any unreported/unprocessed 

income. All types of income must be added together. If the 

Comparison I allotment test results in an allotment difference 

greater than $25 from the authorized allotment, proceed to the 

next step. 

• Comparison II. The reviewer must separately evaluate each type 

of income using the appropriate procedures from Sections 1062, 

1063, 1064, and/or 1065 for the various types of income received 

by the household. Combine these separately determined income 

figures and use this amount in the error determination process. 

In the following examples, the State agency has a 10-day notice of adverse 

action period unless otherwise specified. 

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Example of three types of income, with a change that was too small for a 

significant impact on the allotment: 

Sample Month: August 

Certified: May 15 

No interim change 

Type of Income At Certification Verified for August

Earned income amount: 325 312 

Unearned income amount: 100 100 

Prorated income amount: 225 225

Total 650 637 

Allotment for 3 235 238 

The QC reviewer determined that the income used at certification was correct. 

Since the allotment based on the sample month income varies by less than the 

$25 threshold for citing a QC allotment error the case is determined correct. 

Example of three types of income, with a change that was not included in 

the final error determination: 

Sample Month: August 

Certified: May 15 

No interim change 

Type of Income At Verified Final Error 

 Certification for August Amount

Earned income amount: 325 610(status) 325 

Unearned income amount: 100 100 100 

Prorated income amount: 225 225 225

Total 650 935 650 

Allotment for 3 235 167 235 

The QC reviewer determined that the income used at certification was correct. 

Since the allotment based on the sample month income varies by more than the 

$25 threshold for citing a QC allotment error the reviewer must review each 

income type independently. Section 1062 was used to evaluate the unearned 

income which was determined to be correct. Section 1065 was used to 

evaluate the prorated income which was determined correct. Section 1064 was 

used to evaluate the status reporting earned income and it was determined 

that the income at certification was correct and there were no reportable 

changes. The overall error determination was that the case was correct. 

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Example of two types of income, with changes that must be included in the 

final error determination: 

Sample Month: August 

Certified: May 15 

No interim change 

Type of Income At Verified Final Error 

 Certification for August Amount

Earned income amount: 520 560(status) 560 

Unearned income amount: 400 510 480 

Total 920 1070 1040

Allotment for 3 166 123 132 

The QC reviewer determined that the income used at certification was correct. 

Since the allotment based on the sample month income varies by $43 (more 

than the $25 threshold for citing a QC allotment error) the reviewer must 

review each income type independently. Section 1062 was used to evaluate 

the unearned income. The reviewer determined that there were two 

unreported changes. Unearned income became $480 in July and $510 in 

August. The change to $480 is an includable variance. The change to $510 is 

excludable as it is within the timeframes for reporting and acting on changes. 

Section 1064 was used to evaluate the status reporting earned income and it 

was determined that there was an unreported wage increase from $6.00 per 

hour to $6.50 per hour in June which is an includable variance. The final error 

determination is based on income of $1040 and results in an allotment error of 

$34 (166 – 132). 

1070 INCOME FROM INELIGIBLE HOUSEHOLD MEMBERS. While 

the size of a household is always reduced by the number of ineligible members 

when applying the Thrifty Food Plan, the manner in which income is handled 

varies depending upon the reason for which an individual is ineligible. 

1070.1 Income That Must Be Counted Entirely. The income 

received by a household member disqualified for certain program violations is 

considered available to the household in its entirety. However, for purposes of 

the eligibility income test(s), the household size must be reduced by the 

number of disqualified individuals. In all other respects, the income received 

by these ineligible household members is examined consistent with the policies 

and procedures for any other income. 

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FNS HANDBOOK 310 

1070.2 Income That Must Be Counted On A Prorated Basis. The 

income received by individuals who are ineligible for the program because of 

certain deficiencies is prorated among the ineligible individual(s) and the 

remaining household members. The prorated share attributed to the ineligible 

individual(s) is then excluded from the eligibility income test(s). The 

household size is reduced by the number of ineligible individuals in establishing 

income eligibility standards for the household. In all other respects, the 

income received by these ineligible household members is examined consistent 

with the policies and procedures for any other income. 

1080 NON-COMPLIANCE WITH OTHER PROGRAM RULES. 

Households whose cash assistance is reduced, suspended, or terminated 

because of the failure of a household member to perform an action required 

under a Federal, State, or local means-tested public assistance program may 

not receive an increased food stamp allotment as the result of the decrease. In 

addition, the State agency may reduce the household’s allotment by not more 

than 25%. The QC reviewer must determine whether the State agency acted 

properly when it became aware that this provision applied to the household. 

An examples of benefits considered under this provision is TANF. Examples of 

programs, which are not means-tested and therefore, not considered are RSDI, 

Railroad Retirement, and Unemployment Compensation benefits. 

1081 Desk Review. The reviewer must examine the household's case 

record and other records of the State agency to determine if the State agency 

was aware of a penalty AORD. If so, the reviewer must also determine whether 

the State agency was aware that the penalty was caused by a failure to 

comply. 

1082 Field Review. The reviewer is not required to investigate 

penalties of which the State agency was unaware. However, if the reviewer 

uncovers a type of assistance that was received AORD but was not included in 

the certification action, QC must, if necessary, re-examine the State agency's 

records about the penalty. 

The determination regarding failure to comply with another program’s 

requirements is made by the agency administering that program. Under no 

circumstances should the QC reviewer make a determination or challenge a 

determination that has already been made. 

If a good cause determination for failure to comply with program requirements 

has been made by the State agency, that good cause determination itself is not 

subject to challenge by the reviewer. 

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1083 Verification. QC must verify the amount of the penalty for the 

appropriate months. QC must also verify the cause of the penalty and the date 

on which the State agency became aware of the amount and cause. 

Verification of this element consists of documentation that has been provided 

to the State agency or is otherwise known by the State agency. 

The reviewer must examine State agency records to determine whether the 

State agency was aware of any reduction, suspension, or termination of any 

Federal, State, or local means-tested assistance program as of the sample 

month. The QC reviewer must verify the cause of the penalty and the date on 

which the State agency became aware of the amount and the cause. A 

determination by another agency that the penalty was due to the failure of the 

household to perform a required action must be accepted by the reviewer, and 

is not subject to further examination. Verification consists of documentation 

provided to the State agency by the agency administering the program to which 

the penalty is being applied, or information that is otherwise known to the 

State agency. 

1084 Identification of Variances. A variance exists only if: 

• The household's penalty was caused by a failure to comply, the 

State agency was aware of both the penalty and the cause, and 

the State agency either did not count or counted the wrong 

amount of the penalty as income; or 

• The State agency erroneously reduced Food Stamp benefits. 

1085 Treatment of Variances. QC must consider the date the State 

agency became aware of the cause of the penalty as the date of a reported 

change.

Variances will only be cited if the State agency was aware of the penalty in the 

other means-tested program, and failed to appropriately adjust the food stamp 

benefits based on this information. In making the error determination, the QC 

reviewer will include the amount for the other program, which should have 

been used in determining the food stamp benefits for the sample month. 

Penalties that the State agency was not previously aware, will be excluded 

from the error determination process. The appropriate time frames and 

requirements for reporting and acting on changes in household circumstances 

shall apply.

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10 - 34

If a variance is included, the QC reviewer must correct the worksheet figure for 

misapplication of policy, failure to act or correctly act on reported information 

and computational errors by the Eligibility Worker. For purposes of correcting 

worksheet figures, the QC reviewer must use State agency procedures as long 

as these procedures meet minimum Federal guidelines. In the absence of 

procedures or procedures meeting Federal guidelines, the QC reviewer must 

use the penalty amount from the budget month. The corrected figure is used 

in the error determination process. 

1086 Other Deficiencies. Deficiencies in this element, other than 

those specified above, must not be considered variances for purposes of QC and 

need not be reported. For example, the State agency's failure to investigate 

the cause of a decrease in another program's benefits must not be considered 

as a variance unless the casefile contains documentation identifying the 

penalty as an intentional failure to comply.
FNS HANDBOOK 310 

CHAPTER 11 

DEDUCTIONS 

1100 DEDUCTIONS. In the Food Stamp Program there are six allowable 

deductions from a household's gross income: 

• Earned income deduction 

• Dependent care deduction 

• Standard deduction 

• Shelter deduction 

• Medical deduction 

• Child support payment deduction. 

1110 REVIEW OF DEDUCTIONS. What follows is a general discussion and 

illustrations by example of the handling of allowable deductions. 

1111 Deductions as Billed. In general, a household becomes entitled to a 

deduction when it receives a bill or, if there is no bill, when the expense otherwise 

becomes due. Exceptions to this general rule are noted in this chapter. When an expense 

is paid through a charge account, the expense is considered "billed" when the household 

received its charge account statement. 

• A household may choose to average periodic billings over the interval 

between scheduled billings or over the period the expense is intended to 

cover. 

• A household may choose to average one-time only expenses (other than 

medical expenses) over the entire certification period in which they are 

billed. 

• A household may choose to average one-time only medical expenses over 

the remainder of its certification period. 

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Example of Allowing a Deductible 

Expense as Billed, Not as Paid: A 

household did not receive a monthly bill 

for its rent. However, it did sign a lease 

that required a rental payment of $125 

monthly throughout the certification 

period. In calculating the household's 

shelter expenses, the reviewer would 

include the rent of $125 as "otherwise 

becoming due." A household paid $17.62 

for electricity on March 7th (billed in 

February). The household was billed 

$32.16 for electricity on March 20th. In 

calculating the household's shelter 

expenses for March, the reviewer would 

consider $32.16 for March, as the amount 

billed. 

The Food Stamp Program does not allow 

deductions according to a household's 

actual payments. For these deductions, 

the reviewer must concentrate on dates 

and amounts of billings and not on dates 

and amounts of payments. An exception 

to this general rule is the child support 

deduction. 

The reviewer may use information about 

payments to determine a household's 

cash flow - Does the household spend 

more than it receives? This information 

may be useful in investigating household 

composition and income. The reviewer 

may use information about the method 

of payment to determine when an 

expense was billed (as with credit cards 

and charge accounts.) However, 

payments are not the basis for 

deductions. 

Example of When an Expense is 

Considered Billed if Paid by Credit Card:

An elderly household member visited a 

doctor on March 8th. Since payment was 

due at the time of service, she charged the 

bill on her credit card that same day. The 

credit card company billed the household 

member on a statement that she received 

on May 2nd. The reviewer would consider 

this expense as billed in May. 

1112 Expenses Paid by 

Excluded Vendor Payment. When 

a person or organization outside the 

household pays a household's expenses 

directly to another party (like a doctor, 

a landlord, or a baby sitter), those 

payments are called vendor payments. 

The Food Stamp Program excludes some 

vendor payments from the household's 

income. 

Example of an Expense Paid by Excluded 

Vendor Payment: A household was billed 

$200 for rent each month of its 

certification period. A charity paid $150 

of the rent each month directly to the 

landlord. In calculating the shelter 

deduction, the household's rent was $50. 

The $150 was an excluded vendor 

payment. 

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Example of Assistance That Was Not an 

Excluded Vendor Payment: A household 

was billed $200 for rent each month of its 

certification period. A charity gave the 

household $150 each month to help pay the 

rent. In calculating the shelter deduction, 

the household's rent was $200. The $150 

was not an excluded vendor payment. 

When vendor payments are excluded 

from income, the household is not 

allowed a deduction for the expenses 

covered by the vendor payments. The 

reviewer must ensure that dependent 

care, shelter, and medical expenses 

are not deducted when someone pays 

those expenses by excluded vendor 

payment, except for Low Income Home 

Energy Assistance Act payments. 

1113 Deductions Disallowed 

at Certification or 

Recertification. Normally, if a 

household was entitled to a deduction 

at the time of the most recent 

certification or recertification and did 

not receive it, the case has an included 

variance. There are three exceptions to 

this rule: 

11 - 3 

1. The household reported 

the expense but chose 

not to receive the 

deduction 

2. The State agency asked 

for verification, the 

household did not 

provide it, and the State 

agency certified the 

household without the 

deduction 

3. The household fails to 

report expenses at certification or recertification after the State agency 

has informed the household that such failure will result in the forfeiture of 

the right to a deduction. 

Example of an Expense Disallowed for 

Failure to Report Expense at Application:

A household indicated on its application at 

certification that it incurred shelter 

expenses of $500 in rent. No utility 

expenses are reported. The eligibility 

worker (EW) certifies the household with 

only the $500 rent used in the 

determination of the shelter deduction. 

The application contains a statement 

informing the household that they forfeit 

the right to deduction of household 

expenses if they fail to report the 

expense. The reviewer verified shelter 

expenses of $500 rent, plus utilities. In 

completing the final review findings for 

the cases the reviewer would include only 

the rent, not the utilities, in the shelter 

deduction calculation. (Assuming no 

variances are found in any of the other 

elements of this review, this case would 

be completed as correct, no error. 

For the first two exceptions reviewer must exclude these variances if the State agency 

documented the case record to show why the household did not receive the deduction for 

these reported expenses. The documentation must be dated between the household's 

application covering the sample month and the review date. 
FNS HANDBOOK 310 

For the third exception, the reviewer must exclude these variances if the State agency 

documented the case record to show the statement informing the household of its right 

to claim the deduction. The document must be dated for the time of the certification 

action covering the sample month. Statements subsequent to the review date, by the 

State agency or by the household, must not be taken into account. 

 

Deductions disallowed at certification or 

recertification under one of the provisions 

listed above must be included in the error 

determination under certain unique 

circumstances. If the household, 

subsequent to the certification action but 

prior to the sample month (allowing for 

exclusionary time frames), reports and/or 

verifies the expense, and the State agency 

does not allow the deduction, the 

reviewer must identify an agency caused 

variance by including the deduction in the 

error determination. 

Example of an Expense Disallowed for 

Failure to Report Expense at Application: 

A household indicated on its application at 

certification that it did not incur any 

dependent care expenses. The EW noted in 

the casefile that the client was informed at 

the certification interview that they forfeit 

the right to deduction of household 

expenses if they fail to report the expense. 

The reviewer would not include a 

dependent care deduction in the 

calculation. (Assuming no variances are 

found in any of the other elements of this 

review, this case would be completed as 

correct, no error. 

Example of an Expense Disallowed for No Documented Reason:

A household stated at certification that it made court ordered child support payments of 

$400 monthly. The EW did not allow a child support deduction, and documented no 

explanation in the casefile as to why the court ordered child support payments of $400 

monthly was not allowed. The reviewer verified the court ordered child support 

payments of $400 monthly. In completing the final review findings for the case the 

reviewer would include a child support deduction of $400 in the calculation. (In absence 

of any offsetting variances found in other elements of this review, this case would be 

completed as containing an underissuance.) 

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Example of an Expense Not Reported After Certification or Recertification. A 

household indicated on its application at certification that it incurred no shelter 

expenses. The application contains a statement informing the household that they 

forfeit the right to a deduction of household expenses if they fail to report the 

expense. The reviewer verified that shelter expenses of $400 in rent and utilities, 

which entitled the household to the SUA existed at the time of certification. The 

reviewer further verified that the household moved two months after certification 

and failed to report the move. The move occurred three months prior to the QC 

sample month and the reviewer verified that the shelter expenses in the new 

home included $300 in rent and utilities, which entitled the household to the SUA. 

Because this policy affects only certification and recertification actions, and not 

the requirement to report moves occurring after recertification, in completing the 

final review findings for the case the reviewer would include the rent of $300 plus 

the SUA from the unreported move in the shelter deduction calculation. (In 

absence of any offsetting variances found in other elements of this review, this 

case would be completed as containing an underissuance. 

1114 Special Treatment of Variances. The reviewer can handle most 

variances by referring to the procedures in Chapter 7 for including and excluding 

variances. There are, particular aspects of the deductions that require special treatment. 

These aspects are handled under the subject "special treatment of variances" which 

appears under the dependent care, shelter, and medical headings. 

Example of One Way to Calculate the 

Earned Income Deduction:

$763 total earned income 

x.20 deductible percentage 

$153 deductible amount 

763 total earned income 

-153 deductible amount 

$610 earned income minus the deduction 

1120 EARNED INCOME 

DEDUCTION - 321. The earned 

income deduction is 20% of the 

household's total earned income, after 

excluding the costs of doing business of 

self-employment enterprises. The total 

earned income amount appears on line 1 

of the computation sheet. 

Example of Another Way to Calculate the 

Earned Income Deduction: 

$763 total earned income 

x.80 non-deductible percentage 

$610 earned income minus the deduction 

1120.1 Documentation. 

Documentation (other than on the 

computation sheet) is necessary only if 

there was a variance in the amount. If 

there was such a variance, the reviewer 

must explain the mistake in policy or in 

arithmetic. 

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FNS HANDBOOK 310 

1120.2 Verification. Verification of the earned income deduction is not necessary, 

since the amount of the deduction depends totally upon verified earned income. 

1130 DEPENDENT CARE DEDUCTION - 323. A household is entitled to the 

dependent care deduction, if it incurs out-of-pocket costs for the care of a dependent 

because such care is necessary for a household member to: 

• Accept employment 

• Continue employment 

• Seek employment in compliance with job search 

• Make an effort equivalent to job search if not subject to job search 

• Attend training, or to pursue education which is preparatory to employment 

If an expense is both a dependent care expense and a medical expense, the reviewer must 

consider the cost as a medical expense. 

1130.1 Deductible Expenses. A household may deduct the amount of the 

dependent care expense for which they must compensate the person who provides the 

care. In-kind benefits, like meals and lodging, are not deductible expenses. The reviewer 

will convert or prorate expenses as appropriate. 

Deductions are governed by certification policy. 

1130.2 Documentation. The reviewer must document: 

• Who received the dependent care 

• Who provided the dependent care 

• Why the household was entitled to a deduction 

• The amount of the dependent care cost in the appropriate month or months 

• The time periods covered by dependent care expenses 

• The type of verification obtained 

• The nature of any variances 

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1130.3 Standard Verification. 

• Bills for such costs from the appropriate month or months 

• A statement from the provider concerning the appropriate month(s) and the 

amount(s) 

1130.4 Special Treatment of Variances. This section provides the instructions 

on special handling of the dependent care deduction. 

• Expenses Not Reported 

at Certification or 

Recertification. If the 

household failed to report 

a dependent care expense 

at certification and a 

dependent care expense 

existed for the budget 

month, the reviewer will 

determine the error by 

using the amount of the 

expense at the time of 

certification. 

Example of the Household’s Failure to 

Report a Periodic Expense: At 

certification, the household failed to report 

a $500 quarterly dependent care expense. 

In January, the household was billed $500 

that covered January, February and March. 

The budget month is March. The household 

failed to report the expense at certification 

and the expense existed for the budget 

month. Therefore, the reviewer will 

prorate the expense over the interval 

between billings and use the amount of the 

expense prorated for the time of 

certification. 

If the household failed to report a periodic or annual expense at 

certification and the expense existed for the budget month, the reviewer 

will prorate the bill over the interval between billings. The reviewer will 

then use the amount prorated for the time of certification. 

• Change Reporting and Unreported Changes Subsequent to Certification or 

Recertification. A change reporting household is not required to report 

changes in its dependent care costs. Therefore, if the reviewer can 

attribute a variance to an unreported change subsequent to certification, 

the reviewer will exclude the variance. 

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Example of a Reported Change That the State Ought to Have Processed, 

and an Unreported Change That the Household was not Required to 

Report: A household correctly reported and received a deduction for $100 

in monthly dependent care costs for a three month old child. Halfway 

through its certification period, on May 14th, the household learned that 

its costs would drop to $80 monthly. The household reported the change 

to the local food stamp office, which did not adjust the allotment. On 

July 20th, the household's dependent care costs dropped again to $60 

monthly but the household did not report the change. The reviewer 

verified $60 in monthly dependent care costs for the sample 

month/budget month of September, (change reporting, prospective 

eligibility and budgeting). The reviewer would exclude this variance 

because the household was not required to report the drop in its 

dependent care expense. In calculating the allotment, the reviewer 

would include the household's drop in monthly dependent care costs to 

$80 as a variance because the change should have been in effect AORD. 

• Expenses Reported at Any Time and Not Correctly Processed.

If a household reports its circumstances and the State agency does not 

correctly process the deduction, the reviewer will follow this procedure 

(converting or prorating as appropriate). 

If the State agency made a mathematical mistake, the reviewer will correct 

the mistake. 

If the State agency misapplied policy the reviewer will correctly apply 

policy. 

1140 STANDARD DEDUCTION - 361. The State agency must deduct the 

standard deduction for all households. The amount of the standard deduction 

is determined by household size and minimum deduction amounts. 

1140.1 Documentation. Documentation (other than on the computation sheet) is 

necessary only if there was a variance in the amount. If there was such a variance the 

reviewer must explain the mistake in policy or in arithmetic. 

1140.2 Verification. Verification of the standard deduction is not necessary. 

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1150 SHELTER DEDUCTION - 363. A household may deduct some or all of its 

excess shelter expenses. 

Excess Shelter Expense = Total Shelter - (Income - Other Deductions) 

2 

1150.1 Calculation of Shelter Deduction.

• Elderly/Disabled Households. These households may deduct all of their 

excess shelter expenses. 

• Other Households. Households other than elderly/disabled may deduct 

their excess shelter expenses up to the limit for their area. The State 

agency must use the limit for the sample month. 

1151 Rent or Mortgage. The 

entire rent or mortgage payment for the 

household's shelter is a deductible 

expense. Multiple mortgages (like 

second mortgages) for the same shelter 

are all deductible, as are lot rents for 

trailers. (See section 1154, Unoccupied 

Home.) 

Example of a Second Mortgage: A 

household's monthly payment on its first 

mortgage was $350. The household also 

took out a second mortgage to buy an 

automobile; the monthly amount of that 

mortgage was $75. In calculating the 

shelter expenses, the reviewer would 

allow $425 in monthly mortgage expenses. 

Households in which all members are homeless but are incurring or reasonably expect to 

incur shelter expenses within the month, are subject to special provisions in the 

calculation of shelter expenses. The shelter expenses for these households must be: 

• A State agency developed standard estimate of shelter expenses 

• The Federal standard estimate of shelter expenses 

• At the option of the household, actual verified shelter expenses that exceed 

the standard estimate (See section 1157.) 

1151.1 Documentation. The reviewer must document the: 

• Address or location of the dwelling 

• Type of billing (rent or mortgage) 

• Verification obtained 

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• Nature of any variances 

1151.2 Standard Verification. 

• A statement from the institution holding the mortgage 

• A rent or mortgage receipt 

• A statement by the landlord or manager 

• A current lease 

1152 Property Taxes. Property taxes, State assessments, and local assessments on 

the household's home and property are deductible expenses. Personal property taxes are 

not deductible expenses. 

1152.1 Documentation. The reviewer must document: 

• The types of taxes and assessments 

• The amounts of taxes and assessments 

• The time period covered by taxes and assessments 

• The verification obtained 

• Whether the property taxes are part of the mortgage payment 

• The nature of any variances 

1152.2 Standard Verification. 

• Bills from the taxing authorities 

• Statements from the taxing authorities 

1153 Property Insurance. Property insurance premiums on the home itself are 

deductible expenses. Insurance premiums on personal property and furnishings are not 

deductible. 

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1153.1 Documentation. The reviewer must document: 

• The type of property insurance 

• The amounts of property insurance bills 

• The time periods covered by insurance bills 

• The insurance company 

• The verification obtained 

• Whether the property insurance premium is part of the mortgage payment 

• The nature of any variances 

1153.2 Standard Verification. 

• Bills from the insurance company 

• Statements from the insurance company 

1154 Unoccupied Home. A household may deduct the shelter costs of a 

temporarily unoccupied home under certain conditions. 

The absence from the unoccupied home must be due to one of the following 

circumstances: 

• Employment away from home 

• Training away from home 

• Illness 

• Abandonment caused by a natural disaster or casualty loss 

In addition, the household must meet all of the following circumstances: 

• The household must intend to return to the home; 

• Any resident of the home during the budget month or issuance month must 

not be claiming the shelter expenses for food stamps in another case; and 

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• The home must not be leased or rented during the household's absence. 

1154.1 Documentation. The reviewer must document the: 

• Address of the unoccupied home 

• Household's entitlement to the deduction 

• Verification obtained 

• Nature of any variances 

1154.2 Standard Verification. 

• Standard verification as listed for other shelter expenses 

• Statements from any persons residing in the other home 

• Statements from the appropriate local food stamp office 

1155 Repairing a Damaged Home. The repair costs of a home are deductible 

only if the home was substantially damaged or destroyed by a natural disaster. These 

repair costs are not deductible if they have been or will be reimbursed from any source. 

1155.1 Documentation. The reviewer must document: 

• Cause of the damage 

• Cost of the repair 

• Verification obtained 

• Nature of any variances 

1155.2 Standard Verification. 

• Bills from providers 

• Correspondence from the providers 

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1156 Utilities (Other Than the Standard Utility Allowance). A household 

may deduct a utility expense unless the State agency certified the household by using a 

standard utility allowance. Deductible utilities include (but are not limited to): 

• Fuel for heating and cooking 

• Cooling 

• Electricity 

• Water 

• Sewage 

• Garbage and trash collection 

• The basic service fee for one telephone (including tax on the basic fee) 

• Fees charged by the provider for installing the utility. 

An expense is not allowable if it is covered by an excluded vendor payment or by a 

reimbursement. The only exception to this concerns households who receive or expect to 

receive payments under the Low Income Home Energy Assistance Act (LIHEAA). 

1156.1 Documentation. The reviewer must document the: 

• Type of utility 

• Amounts of bills 

• Utility companies 

• Time periods covered by utility bills 

• Verification obtained 

• Nature of any variances 

1156.2 Standard Verification. 

• Bills from the utility companies 

• Statements from the utility companies 

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1157 Homeless Shelter Deduction. A state agency may use a standard 

homeless shelter deduction in place of the usual shelter deduction. In those states that 

use this deduction, the following applies. 

1157.1 Documentation. The reviewer must document: 

• The household’s status as a homeless household 

• The household’s incurring of shelter expenses that entitle it to the homeless 

shelter deduction during the budget month 

• The amount the household declares it incurred in shelter expenses. 

1157.2 Standard Verification. 

For the household’s homeless status and for the incurring of shelter expenses: 

• Statements from employees and volunteers of homeless shelters, halfway 

houses and the like 

• Statements from individuals who made temporary accommodations 

available 

• Statements from providers of social services. 

Note: The reviewer need not verify all of the homeless household’s actual shelter 

expenses for the sample month. The reviewer should seek sufficient verification to 

indicate that the household incurred the minimum amounts of shelter costs to qualify for 

the standard. 

1157.3 Variances 

The following are some examples of variances that may exist: 

• The state gave a household the homeless shelter deduction although the 

household was not homeless 

• The state gave a household this deduction although the household received 

free shelter throughout the month 

• The state gave a household this deduction although the household’s shelter 

expenses were extremely low and the state agency’s policy was not to use 

the deduction in that situation 

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FNS HANDBOOK 310 

• The state did not give this deduction when the household was entitled to it 

• The state gave this deduction when the household was entitled to deduct 

actual shelter expenses. 

Whether these variances are included or excluded depends upon the ordinary 

requirements for reporting and acting on information at certification actions and when 

changes occur. 

1160 Standard Utility Allowance - 364. The State agency may choose to offer 

a household a standard utility allowance (SUA) or actual expenses if the household verified 

higher expenses. The State agency may also mandate the use of the SUA. 

The State agency may choose to offer SUA’s in these ways: 

• A single SUA mandated for all households 

• A separate SUA for each utility 

• A single SUA including heating or cooling, which is available to all entitled 

households 

• Two single SUA’s including heating or cooling: 

1. One of these would be used by entitled households who receive nonLIHEAA indirect energy assistance payments 

2. The other would be used by all other entitled households (including 

recipients of LIHEAA payments) 

• A Limited Utility Allowance for households with no heating or cooling 

expenses, but who are billed for at least two utilities, one of which may be 

the telephone. 

• A Single Utility Allowance for households billed for only one utility, other 

than the telephone. 

The State agency may develop a variety of SUA’s, depending upon such factors as 

• Household size 

• Regions within States 

• Season 

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FNS HANDBOOK 310 

• Month of application 

• Length of the certification period 

If the State agency does not mandate the use of the SUA, an individual household is entitled 

to use a SUA if: 

• The household receives or expects to receive a LIHEAA payment for its 

current residence or 

• The household meets all of the following criteria: 

1. The expense is not totally covered by an excluded vendor payment or 

reimbursement 

2. The household incurs an expense covered by the allowance (in the case 

of a single allowance that includes heating and cooling costs, it must 

incur heating or cooling expenses separate and apart from rent) 

3. The expense is incurred during the certification period or the period 

covered by the SUA 

4. The household is billed on a regular basis or if it resides in private rental 

housing and is billed by their landlords on the basis of individual usage 

or is charged a flat rate separately from the rent. 

NOTE: Residents of public housing units that have central utility meters and that 

charge households only for excess heating or cooling costs are not entitled to a 

standard that includes heating or cooling costs based only on the charge for excess 

usage. 

If the State agency mandates the use of the SUA, the household must receive the SUA 

if:

• The household is entitled to the SUA (see above) or 

• The household resides in a public housing with central meters, paying only 

excess heating or cooling (when the allowance includes heating or cooling) 

The State agency may not prorate the SUA of households that share utility expenses. 

1160.1 Documentation. The reviewer must document the: 

• Type of allowance 

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FNS HANDBOOK 310 

• Household's entitlement to that allowance 

• Source of excluded vendor payments 

• Verification obtained 

• Nature of any variances 

1160.2 Standard Verification. 

• Bills from the utility companies 

• Statements from the utility companies 

• Statements from providers of LIHEAA payments 

1160.3 Variances. 

• If the household was entitled to the SUA, and received it, there was no 

variance. 

• If the household was not entitled to the SUA, but the EW used the SUA, the 

reviewer must determine whether the household was entitled to deduct its 

actual utility expenses at the time of certification, recertification or when a 

utility expense was reported. 

• If the household was entitled to deduct actual expenses, the reviewer will 

include the variance by using the actual expenses from certification, 

recertification or when the utility expenses were reported, whichever is the 

most recent. 

• If the household was not entitled to the SUA or to actual expenses, but 

received either the SUA or the actual expense, the reviewer will include the 

variance by not deducting any utility expenses. 

• If the household moved and was no longer entitled to the SUA, but received 

it, the reviewer will handle the variance in accordance with the household's 

reporting and budgeting time frames. 

• If the household was entitled to either actual expenses or the SUA, but 

received neither, the reviewer will use the SUA unless the certification 

record documents that the household elected to use actual expenses. If 

such documentation exists, the reviewer will use actual expenses. 

11 - 17 
FNS HANDBOOK 310 

• If the household was entitled to either actual expenses or the SUA and the 

certification record documents that the household chose to deduct the SUA 

at certification, but received a deduction for actual expenses instead, the 

reviewer will use the SUA when determining a variance. 

• If the State mandates the use of the SUA and the household was entitled to 

the SUA but received actual expenses instead, the reviewer will use the SUA 

when determining a variance. 

The reviewer must determine whether the State agency reasonably anticipated at 

certification, recertification or when a utility expense was reported, that the household 

would be entitled to the SUA. If the State agency's anticipation was reasonable, and the 

household received the SUA, there is no variance in the case. For unreported and 

incorrectly processed changes, see section 1161.1. 

1160.4 Prorated SUA. The reviewer must prorate the SUA if: 

• The State does not mandate the use of the SUA; and 

• Two or more households live together; and 

• They share utility expenses; and 

• The household being reviewed is entitled to the SUA and did not choose to 

verify actual higher costs, 

If the reviewer determines that the SUA should have been prorated for the household, the 

reviewer will prorate according to the State agency's procedure. 

1161 Special Treatment of Variances. This Section provides the instructions 

on special handling of shelter deductions including dwelling(s) and utilities. 

1161.1 Expenses Not Reported at Certification/Recertification. If the 

household failed to report a monthly expense at certification and the expense existed for 

the budget month, the reviewer will determine the error by using the amount of the 

expense at the time of certification. 

If the household failed to report a periodic or annual expense at certification and the 

expense existed for the budget month, the reviewer will prorate the bill over the interval 

between billings. The reviewer will then use the amount prorated for the time of 

certification. 

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FNS HANDBOOK 310 

1161.2 Change Reporting and 

Unreported Changes Subsequent 

to Certification / Recertification. 

A change reporting household must 

report its shelter expenses only when it 

moves. (This does not impact on the 

recipient’s obligation to report changes 

in income.) 

Example of an Unreported Change That 

the Household Was Required to Report: 

A household was certified, with 

prospective eligibility and budgeting, 

based upon monthly rent of $175. On 

March 16th, the household signed a lease 

for a different apartment, beginning May 

1st, at $190 each month. In calculating 

shelter expenses for May, the reviewer 

would allow rent of $190, because the 

household should have reported the 

change. 

• Therefore, the reviewer must exclude any variances caused by unreported changes 

subsequent to certification when the household did not move. 

• The reviewer must include any 

variances caused by change in 

residence subsequent to 

certification if the change should 

have been reported and acted 

upon AORD. 

Example of an Unreported Change That 

the Household Was Not Required to 

Report: A household was certified, with 

prospective eligibility, retrospective 

budgeting. At the time of certification, 

the household's monthly rent was $225. 

On June 1st, the household's rent for the 

same apartment changed to $300. The 

household did not report the change. In 

calculating shelter expenses for the budget 

month of August, the reviewer would allow 

rent of $225, because the household had 

not moved regardless of the rent increase. 

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FNS HANDBOOK 310 

1161.3 Expenses Reported at 

Any Time and Not Correctly 

Processed. 

Example of the State Agency’s Failure to 

Process a Reported Change: A household 

was billed $240 for annual property taxes 

on November 3. When the household 

applied the next day, it reported the 

expense. The EW did not allow the 

expense. In determining the variance, the 

reviewer will use $20, the amount of the 

expense prorated to the time of 

certification. 

If a household reports its circumstances 

and the State agency does not correctly 

process the deduction, the reviewer will 

follow this procedure (converting or 

prorating as appropriate): 

Example of a Mistake in Arithmetic: At 

certification the household reported a biweekly rental expense of $100. The EW 

converted the household's biweekly rent as 

follows: 

$100.00 biweekly rent 

X 2.15 conversion factor 

$250.00 monthly rent 

The reviewer discovered a mathematical 

mistake: 

$100.00 biweekly rent 

x 2.15 conversion factor 

$215.00 monthly rent 

The reviewer corrected the mathematical 

mistake by using the correct figures. 

• If the State agency made a 

mathematical mistake, the 

reviewer will correct the mistake. 

• If the State agency misapplied 

policy, the reviewer will correctly 

apply policy. 

Example of a Monthly Reporting 

Household’s Failure to Report Actual 

Expenses: A household was certified on 

the basis of an averaged electricity 

expense of $32 monthly. On its monthly 

report for the budget month of April, the 

household did not report its electric bill of 

$36. The reviewer will determine error by 

using $0 for the electricity expense. 

1161.4 Monthly Reporting and 

Actual Expenses. Some households 

must report and verify their expenses each 

month. If such a household failed to 

report or to verify its actual utility 

expenses on the monthly report and the 

household is not receiving a SUA, the 

reviewer will determine the variance by 

not considering that utility expense. 

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FNS HANDBOOK 310 

1170 MEDICAL DEDUCTION - 365. A household may deduct the reported 

medical expenses (in excess of $35) of any household member who is elderly or disabled 

providing the expenses are not being reimbursed. (This includes any anticipated changes 

in the household's medical expenses that can be reasonably anticipated for the 

certification period based on available information about the household member's medical 

condition, public or private insurance coverage, and current verified medical expenses.) 

1170.1 Deductible Expenses. A household may deduct the medical expenses of its 

entitled members to the extent that they exceed $35 for each household each month. 

When performed, prescribed, or approved by a licensed practitioner, qualified health 

professional, or recognized facility, the following medical expenses are deductible: 

• Basic care: 

1. Medical care, dental care, psychotherapy, and rehabilitation; 

2. Hospitalization and outpatient care 

3. Nursing care and nursing home care 

• Hospitalization, outpatient, nursing and nursing home care for an individual 

who was a household member immediately prior to entering a hospital or 

nursing home. 

• Drugs: 

1. Prescription drugs 

2. Over-the-counter drugs 

• Equipment: 

1. Medical supplies 

2. Sick-room equipment 

3. Dentures 

4. Hearing aids 

5. Prosthetics 

6. Prescribed eye glasses 

11 - 21 
FNS HANDBOOK 310 

7. Other prescribed equipment 

• Health and hospitalization insurance policy premiums. 

• Medicare/Medicaid: 

1. Medicare premiums 

2. Medicaid cost-sharing expenses 

3. Billed spend-down expenses 

• Service animals (i.e., seeing eye dogs): 

1. Securing and maintaining a service animal 

2. Animal food 

3. Veterinary care 

• Reasonable costs of transportation and lodging to obtain medical treatment 

or services. 

• Attendant, homemaker, home health aid, child care services, housekeeper 

necessary due to age, infirmity, or illness. Amount equal to the one-person 

coupon allotment if the household furnishes the majority of a home care 

attendant's meals. 

If an expense is both a dependent care expense and a medical expense, the reviewer must 

consider the cost as a medical expense. 

A household may not deduct the following expenses: 

• Premiums for health and accident policies that pay lump sum settlements 

for death or dismemberment 

• Premiums for health and accident policies that are payable as income 

maintenance, mortgage continuance or loan payments while the beneficiary 

is disabled 

• Expenses that have not been verified as non-reimbursable 

11 - 22 
FNS HANDBOOK 310 

1170.2 Documentation. The reviewer must document the: 

• Household members' entitlement to the deduction 

• Deductible expenses 

• Treatment of reimbursements 

• Time periods covered by medical bills 

• Verification obtained 

• Nature of any variances 

1170.3 Standard Verification. 

Positive Allegation: 

• Bills from the providers of health insurance, services, and products 

• Statements from these providers 

• Health insurance policies clearly describing their areas of coverage 

Negative Allegation: In the absence of contradictory information, the reviewer may 

accept the household's disclaimer of deductible medical expenses and health insurance. 

1170.4 Calculation of Medical Expenses. The reviewer must review medical 

expenses as follows: 

Comparison I. Verify actual medical expenses that are billed or otherwise 

became due in the budget month. This figure includes any prorated amounts 

allocated to the budget month. These figures are used in the comparison I 

allotment test. (See section 621.) 

Comparison II. 

• If necessary, correct the worksheet expense figure for: 

1. Misapplication of policy 

2. Failure to act or correctly act on reported changes 

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FNS HANDBOOK 310 

3. Computational errors by the eligibility worker 

4. Incorrect reporting or failure to report by the household at the time of 

certification/recertification 

• Exclude variances attributable to an unreported change subsequent to a 

certification/recertification. 

• Use the corrected worksheet figure in the error determination process. 

1170.5 Special Treatment of Variances. This section provides the instructions 

on special handling of medical deductions. 

• Reimbursement.

Example of an Expense That the State 

Disallowed Because There Was No 

Verification: A household stated at 

certification that it incurred a monthly 

medical expense of $50 for visits to a 

doctor. The EW requested verification 

that the expense was not reimbursable. 

The household did not provide the 

verification, so the EW did not allow a 

medical deduction. There is no variance. 

If the EW requested 

verification of 

reimbursement from the 

household and the 

household was certified 

without the expense 

because it did not provide 

the verification, the 

reviewer must not allow 

the medical expense. 

If the casefile does not 

Example of a Reported Expense That the 

State Did Not Process, for No Apparent 

Reason: A household stated at 

certification that it incurred a monthly 

medical expense of $40 for visits to a 

doctor. The EW did not allow a medical 

deduction. The reviewer verified that the 

household had no medical insurance AORD 

and included a variance. 

contain documentation of 

the EW's request for 

verification of 

reimbursement, or if the 

household did not report 

the medical expense at 

certification/ 

recertification, the 

reviewer must verify 

whether or not the 

household member had 

medical insurance, Medicaid, or Medicare AORD and the type of expenses 

covered. 

1. If there was no insurance, the reviewer must allow the expense. 

11 - 24 
FNS HANDBOOK 310 

2. If the household had 

insurance but the 

verification clearly showed 

that a type of expense or 

portion of the expense was 

not covered by insurance, 

the portion of the expense 

not covered by insurance 

would be allowed. 

Example of an Unreported Expense That 

Was Not Reimbursable: A household 

stated at certification that it had no 

medical expenses and the EW deducted 

none. The reviewer verified that at 

certification the household did incur 

medical expenses of $220 monthly for 

doctors fees, laboratory fees, and drugs to 

treat emphysema. The reviewer also 

verified that the household had medical 

insurance AORD. The insurance company 

stated that such expenses would not be 

reimbursed. Therefore, the reviewer 

included a variance by allowing the 

expenses in the amount of $220. 

3. If the household had 

insurance but there was no 

clear verification of whether 

an expense was covered by 

the insurance or the amount 

that the insurance would 

pay, the expense would not 

be allowed. 

• Reported Medical Expenses. 

Recurring Medical Expenses. Recurring medical expenses such as doctors 

visits and prescriptions are considered by developing a monthly amount 

based on frequency. 

Example of a Mistake in Prorating: 

During its certification interview, a 

household reports and requests proration 

for a bi-monthly health insurance premium 

of $40. The EW prorated the premium 

over the interval between billings but 

incorrectly allowed $25 monthly. The 

reviewer verified a $40 expense at 

certification. The reviewer corrected the 

proration and used $20, the correct 

amount prorated to the time of 

certification. 

Processed Expenses. If 

the medical expense 

sources and amounts are 

correct, but the agency 

misapplied policy or made 

expense computational 

mistakes, the reviewer 

must use these correct 

amounts, and apply correct 

policy in determining the 

medical expenses. 

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The reviewer will consider 

11 - 26 

periodic medical expenses 

that were prorated, to have 

been prorated based on the 

household's request for 

proration, unless the casefile 

discloses a conflicting 

request by the household 

that the expense be 

deducted in the month that 

the expense was billed or 

otherwise became due. 

If the case supports a 

Conflicting request, the 

periodic medical expense 

must be deducted only in the 

month in which it was billed or otherwise became due. 

If the EW incorrectly prorated or did not prorate a medical expense that 

should be prorated, the reviewer must calculate the correct prorated 

medical expense. The reviewer must correct for any variance that occurred 

at the most recent certification/recertification or reported change. 

Example of a Change That Was Reported, 

But Not Processed: In the middle of the 

certification period, a household reported a 

new expense for a quarterly health insurance 

premium of $165. The household requested 

that the expense be prorated. The EW did 

not process this change. As the household 

reported the change and requested 

proration, the reviewer would allow the 

expense and prorate to the time the change 

was reported. 

Example of Correct Proration of an 

Incorrectly Reported Expense: When a 

household applied on April 3rd, it reported 

a bi-monthly dog food bill of $40 for its 

seeing-eye dog and requested proration of

the expense. The EW prorated this 

expense and allowed $15 each month. 

The reviewer verified that at the time of 

application the household’s bi-monthly 

expense was actually $40. Therefore, the 

reviewer corrected the EW’s figures and 

used $20, the correct amount prorated to 

the time of certification. 

Unprocessed Expenses. If 

the household reported an 

expense at certification and 

the EW did not process the 

expense, the reviewer will 

allow the expense. If the 

household requested 

proration, the expense will 

be prorated over the 

certification period. 

If the household reported a change subsequent to certification and the EW 

did not process it, (but should have in accordance with the time frames in 

section 720) the reviewer must allow the expense. If the household 

requested proration, the expense will be prorated to the time the change 

was reported. 
FNS HANDBOOK 310 

One-Time Medical 

Expenses. One-time 

medical expenses are 

prorated over the 

remainder of the months 

in the certification 

period or deducted in 

the month the expense is 

billed or otherwise 

becomes due. 

Example of a Processed, One-Time 

Expense: A household was certified in 

January for 12 months. On June 2, the 

household reported a one-time nonreimbursable medical expense of a $400 

hospital bill. The household requested 

that the expense be prorated. The EW 

prorated the expense over seven months 

(June - December) and allowed $57.14 for 

each month. Since the expense was not 

included in the June allotment, the 

reviewer must prorate the expense over 

six months (July - December) and use 

$66.66 in the medical expense calculation. 

Processed Expenses. When one-time medical expenses have been 

prorated, the reviewer will consider the request for proration to have been 

made by the household unless the casefile discloses a conflicting request 

(that the expense be deducted in the month that the expense was billed or 

otherwise became due). If the case supports a conflicting request, the onetime medical expense must be deducted only in the month in which it was 

billed or otherwise 

became due. Example of a Reported Expense That 

the State Prorated Over Too Many 

Months: A household reported, and 

verified a one-time, nonreimbursable, 

hospital bill of $500 in September. The 

household requested that the expenses be 

prorated. The EW prorated the bill over 

October and November. The household's 

certification period was scheduled to end 

on December 31st. Any proration of this 

expense can be done only over the 

remainder of the certification period. The 

reviewer must prorate the amount of the 

reported change over the remaining 

months of the certification period. 

If the EW incorrectly 

prorated a medical 

expense that should be 

prorated, the reviewer 

must calculate the 

correct prorated medical 

expense. The reviewer 

must correct for any 

variance that occurred at 

the most recent 

certification/ 

recertification or 

reported change. 

11 - 27 
FNS HANDBOOK 310 

Unprocessed Expenses. 

If the household reported 

an expense at 

certification and the EW 

did not process the 

expense, the reviewer 

will allow the expense in 

the medical expense 

calculation. If the 

household requested 

proration the expense 

will be prorated over the 

certification period. 

11 - 28 

If the household reported 

a change subsequent to 

certification and the EW did not process it, (but should have in accordance 

with the time frames in section 720) the reviewer must allow the expense in 

the medical expense calculation. If the household requested proration, the 

expense will be prorated to the time the change was reported. 

Example of a Reported, But Unprocessed 

Expense: A certified household incurred a 

$600 deductible medical expense in 

December, the last month of its 

certification period. Although the 

household reported the expense at its 

December certification interview and 

requested proration, the EW did not 

deduct it. The household's new 

certification period was January through 

June and the sample month is one of these 

months. The reviewer corrects the EW's 

misapplication of policy by prorating the 

reported change over the 6 months of the 

new certification period. 

• Unreported Expenses. The reviewer must verify the household's 

unreported expenses at the time of certification or recertification and use 

the amount in the calculations for Comparison II specified in section 1170.4 

review instructions. Unreported expenses are to be deducted in the month 

that the expense was billed or otherwise became due. 

A household is not required to report changes in its medical expenses 

subsequent to certification or recertification. Therefore, the reviewer must 

verify expenses and exclude any variances that can be attributed to 

unreported changes in medical expenses during the certification period. 
FNS HANDBOOK 310 

1180 CHILD SUPPORT PAYMENT DEDUCTION - 366. A household is entitled 

to the child support payment deduction if 

it incurs legally binding costs for any child 

support payments made to a nonhousehold member for the care of a child. 

This includes legally obligated vendor 

payments made to a third party on behalf 

of a child. Voluntary support payments 

are not deductible. 

11 - 29 

1180.1 Documentation. The 

reviewer must document: 

• Who is legally obligated to 

pay child support 

• The amount, and payment 

schedule, that the 

household member is legally obligated to pay 

Example of the Difference Between 

Legally-Obligated and Voluntary 

Expenses: During its certification 

interview, a household reports a monthly 

child support payment in the amount of 

$150. In addition to the $150 monthly 

payment, the EW allowed a deduction for 

a payment in the amount of $25 to a day 

care center. The reviewer verified that 

the household was legally obligated and 

actually paying $150 a month in child 

support payments and that the $25 

payment to the day care center was 

voluntary. The reviewer corrected the 

misapplication of policy and used $150 in 

the error determination process. 

• Who received the child support payments 

• Who actually provided the child support payments 

• Why the household was entitled to a deduction 

• How much the child support payments were in the appropriate month or 

months subject to review 

• The time periods covered by child support payments which were made 

• The type of verification obtained 

• The nature of any variances 

1180.2 Verification. The reviewer must verify the household's legal obligation to 

pay child support, the amount of the obligation and the amount actually paid. The 

primary source of verification for declared child support payments is the household 

making the contribution. When support payments are made through a third party, such as 

a court or probation office, verification can be made through that agency. Verification 

can also be made through the person, or persons, in receipt of the child support 

payments. The reviewer must be alert to the effect of timing and amount of payment 

relative to the review date. 
FNS HANDBOOK 310 

Child support payments should be verified through use of the following documentation: 

From the Household. Documents or other records generally available from the household 

include: 

• Canceled checks 

• Wage withholding statements 

• Income tax returns 

• Divorce or separation decrees 

• Court order 

• Support agreements 

• Correspondence regarding support payments 

From Other Sources. Documents or other records available from other sources for 

verification include: 

• Statements from the custodial parent 

• Court records 

• Lawyer's records 

• Divorce or separation decrees 

• Employer's records showing attachment of wages 

• Title IV-D and Child Support Enforcement agencies 

11 - 30 
FNS HANDBOOK 310 

11 - 31 

1180.3 Calculation of the Child 

Support Deductions. The reviewer 

must review child support deductions as 

follows: 

Example of Incorrect Reporting of 

Deductible Expenses: At the certification 

interview on July 11th, the household 

stated that it was legally obligated and 

actually paying $60 a month in child support 

expenses. The EW allowed a child support 

deduction in the amount of $60. The 

reviewer verified that in addition to the $60 

payment, the household actually paid 

$25.00 monthly for health insurance. The 

divorce decree (dated January 5th) stated 

that the household was legally obligated to 

pay $25.00 monthly for health insurance. 

The household actually paid the expenses 

and the difference existed at the time of 

certification, therefore, the reviewer will 

use $85 in the error determination process. 

Comparison I. 

Verify the actual amount of the child 

support payment in the budget month. 

Convert if required. This figure is used 

in the comparison I allotment test. 

Comparison II. 

If necessary, correct the worksheet 

expense figure for 

• Misapplication of policy 

Example of a Reported, but Unprocessed 

Change: At certification, the household 

reported a $40 child support payment. The 

EW allowed a child support deduction in the 

amount of $40. The reviewer verified that 

the household's legal separation agreement 

had been amended one week after the 

household was certified and that the 

household actually paid $125 a month for 

child support. The reviewer found that the 

EW had documented receiving a call from 

the household reporting that its child 

support payment had increased to $125, but 

failed to take any action. In accordance 

with the reporting requirements and time 

frames, the change should have been in 

effect AORD. Therefore, the reviewer 

would use $125 in the error determination 

process. 

• Failure to act or correctly act on 

reported changes 

• Computational errors by the 

eligibility worker, and 

• Incorrect reporting or failure to 

report at the time of certification 

or recertification by the 

household. 

Exclude variances attributable to an 

unreported change subsequent to 

certification/recertification. 

Use the corrected worksheet figure in 

the error determination process. 
 FNS HANDBOOK 310 

 

CHAPTER 12 

MAKING THE REVIEW DECISION 

1200 GENERAL. The review decision consists of determining whether 

there is an error in the case and, if so, the dollar amount of the error. The 

State agency may also opt to establish the dollar error amount associated with 

individual variances. The procedures to be used and the documentation 

requirements are described in this chapter. See chapter 6 covering the 

eligibility and allotment tests which are integral to making the review decision. 

1210 THE COMPUTATION SHEET. The food stamp computation sheet 

of the Form FNS-380, is to be used to document all completed active case 

reviews. The only exceptions are reviews of households that were ineligible for 

reasons other than income. Columns (1) and (2) are required to be completed, 

Columns (3), (4), and (5) are optional. Regardless of the use of columns (3), 

(4), and (5), Columns (1) and (2) must be used as outlined in sections 1211 and 

1212 below. 

1211 Column (1). Column (1) of the computation sheet must be 

completed for all active case reviews. In this column, record the figures that 

the eligibility worker used to compute the allotment for the sample month. 

1212 Column (2). Column (2) of the computation sheet must be 

completed for all active case reviews. If the household was ineligible because 

of gross or net income, the reviewer may stop at the appropriate income line. 

In this column, record the final State agency quality control (SAQC) 

determination figures. The figures to use as final SAQC determination figures 

depend upon the results of the Eligibility and Allotment Tests of the Error 

Determination Process. See the guidance below and consult Chapter 6. 

Note: If the household was ineligible because of gross or net income the 

reviewer may stop at the appropriate income line. 

1212.1 In the three cases below, the figures to use for final SAQC figures 

in Column (2) are the figures based upon verified circumstances, including or 

excluding variances as appropriate. 

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 FNS HANDBOOK 310 

 

Case 1: 

ELIGIBILITY TEST = Ineligible 

ALLOTMENT TEST = N/A 

Column 2 is filled out to the point of ineligibility. 

(See section 610) 

Case 2: 

ELIGIBILITY TEST = Eligible 

ALLOTMENT TEST: 

COMPARISON I = $25 or less difference in allotments 

COMPARISON II = N/A 

Column 2 is filled out with the comparison I figures. 

(See section 621.3) 

Case 3: 

ELIGIBILITY TEST = Eligible 

ALLOTMENT TEST: 

COMPARISON I = Greater than $25 difference in allotments 

COMPARISON II = Greater than $25 difference in allotments 

Column 2 is filled out with the figures with the smallest amount from 

Comparison I or Comparison II. 

(See section 622.4) 

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 FNS HANDBOOK 310 

 

1212.2 In the case below, the figures to use as final SAQC figures in 

Column (2) are the figures based upon verified circumstances, including all 

variances. No variances are to be excluded. 

Case 4: 

ELIGIBILITY TEST = Eligible 

ALLOTMENT TEST: 

COMPARISON I = Greater than $25 difference in allotments 

COMPARISON II = $25 or less difference in allotments 

Column 2 is filled out with the Comparison II figures. 

(See section 622.3) 

1213 Columns (3), (4), and (5). Columns (3), (4), and (5) of the 

computation sheet are optional columns. They are included for the 

convenience of States and may be used for recording: 

• Comparison I 

• Comparison II 

• Illustrating the impacts of individual variances 

• Reflecting a retrospectively budgeted household's prospective 

eligibility 

• Any other State identified purpose 

1220 COMPUTING THE AMOUNT ISSUED IN ERROR. The amount 

issued in error is the difference between the allotment amount authorized by 

the eligibility worker for issuance for the sample month (last line of Column (1) 

of the food stamp computation sheet) and the allotment amount computed by 

the SAQC reviewer (last line of Column (2) of the food stamp computation 

sheet), except that eligible cases with differences of $25 or less are not 

considered to be in error. The amount issued in error is either an overissuance 

or an underissuance. For cases that are ineligible, the total allotment amount 

is issued in error (there is no consideration of there being less than a $25 

error). 

12 - 3 
 FNS HANDBOOK 310 

 

If the difference between the amounts is greater than $25, there is an error in 

the allotment amount authorized for the sample month. The reviewer must 

use the figures from either Comparison I or Comparison II to determine the 

amount in error. The figures used must be whichever figures result in the least 

quantitative error for the case. (See chapter 6.) 

1230 THE REVIEW SCHEDULE. The Review Schedule Form FNS-380-1 

is to be used to record error findings from reviews of active cases. A line-byline description of this form is contained in Appendix C following the form. For 

purposes of this chapter, the completion of items 8 (review finding), 10 

(amount of error), and 16 (error amount attributed to a variance) of the FNS380-1 are described below. 

1231 Coding Review Findings - Item 8. For Item 8 of the FNS-380-

1, indicate the results of the Quality Control review by entering one of the 

following codes: 

CODE DESCRIPTION

1 Amount correct 

2 Overissuance 

3 Underissuance 

4 Ineligible 

Example of the Coding of Case Findings: This shows the coding for the 

cases illustrated in section 1212 above. 

Case 1 Code 4 - Ineligible 

Case 2 Code 1 – Amount correct 

Case 3 Code 2 or Code 3, as appropriate 

Case 4 Code 1 – Amount correct 

1232 Amount of Error - Item 10. For Item 10 of the FNS-380-1, 

indicate the dollar amount issued in error, computed as in section 1220 above. 

12 - 4 
 FNS HANDBOOK 310 

 

As an example, the cases illustrated in section 1212 above would be handled as 

follows: 

Example of the Coding the Amount of Error: This shows the coding for the 

cases illustrated in section 1212 above. 

DOLLAR AMOUNT ISSUED IN ERROR

Case 1 Entire allotment amount was issued in error 

Case 2 0 – no error 

Case 3 smallest discrepant amount from Comparison 1 or 

 Comparison 2

Case 4 0 – no error 

1233 Coding the Dollar Amount Associated With Variances 

- Item 16. 

1233.1 Mandatory Use. All State agencies shall compute and enter the 

dollar amount associated with excluded variances that resulted from correctly 

processed information received from an automated Federal information 

exchange (FIX) system. The State agency will use the method outlined in the 

paragraph entitled “One Variance” in section 1233.2 when there is only one 

variance in the case. When there is more than one variance, the State agency 

may use the simple calculation method outlined in the first bulleted 

subsection, entitled “Simple Calculation Method”, under the paragraph entitled 

“Multiple Variances” in section 1233.2 or an alternate method to determine the 

dollar amount of the errors. The State agency may not use the refined 

calculations in the bulleted subsection, entitled “Refined Calculation Method”, 

under the paragraph entitled “Multiple Variances” in section 1233.2. 

1233.2 Optional Use. At its option the State agency may elect to code 

the dollar error amount associated with individual included variances. The 

dollar amount of all included variances is reported as a total in Item 10, Error 

Amount. For those State agencies electing to code the dollar error amount 

associated with individual variances, the following guidance is offered. 

12 - 5 
 FNS HANDBOOK 310 

 

One Variance. If only one variance exists in the case, the dollar amount of 

error to be recorded in Item 16 is the same as the amount recorded in Item 10. 

(See section 1232.) No further calculations are necessary. Complete the other 

items in section 2 of the Form FNS-380-1, as appropriate. 

Multiple Variances. If more than one variance exists in the case, the dollar 

amount of error to be recorded in Item 16 is calculated for each variance. Use 

the food stamp computation sheet, Columns 3, 4, or 5, and one of the methods 

below (or another method) to determine the impact (dollar amount of error) 

attributable to each individual variance. If the case has more than 3 variances, 

or if additional columns are needed for some other reason, use additional 

computation sheets. After the individual impacts are determined, complete 

the items in section 2 of the Form FNS-380-1. 

• Simple Calculation Method. 

The simple calculation involves taking a separate look at each 

variance and identifying what the dollar impact is of the variance 

when looked at in isolation of anything else happening in the 

case. To do this you will use the EW’s figures for everything 

except the variance being calculated. 

When using this method, the sum of the impacts of the individual 

variances does not equal the amount of the overissuance or 

underissuance identified for the case. 

 

To calculate the impact of the individual variances, complete a 

separate column of the food stamp computation worksheet. 

• At the top of the column, identify the variance being 

examined. 

• Use the EW's figures for all elements, except the element 

containing the variance under examination. 

• For any element containing two or more variances in a single 

element, treat each variance separately. 

• Compute an allotment amount based upon the EW’s figures 

for everything except the variance being calculated. For the 

variance being examined use the corrected figure. 

12 - 6 
 FNS HANDBOOK 310 

 

• Compare this allotment amount with the allotment amount 

authorized by the EW for the issuance month. The difference 

between these two amounts is the dollar impact, associated 

with that particular variance. 

Repeat all steps for each variance. 

For example, if the calculation using the variance yields an 

allotment of $125 and the EW figures calculated an allotment of 

$100, the impact of the variance is a lowering of the allotment 

by $25. This would be indicated as a negative number, - 25. 

If the calculation using the variance yields an allotment of $85 

and the EW figures calculated an allotment of $100, the impact 

of the variance is an increase of the allotment by $15. This 

would be indicated as a positive number, + 15. 

(See the example case and figure 1.) 

• Refined Calculation for Multiple Variances. 

The refined calculation method is an expansion on the simple 

calculation method. When using the simple calculation method, 

for more than one variance in a case, the sum of the impacts of 

the individual variances do not equal the amount of the 

overissuance or underissuance. The refined calculation is a 

methodology to follow which takes the actual amount established 

as the overissuance or underissuance, and identifies the impact 

of the individual variance relative to the error amount. This 

method goes a step beyond the simple calculation to ensure that 

the sum of the impacts equals the amount of 

overissuance/underissuance for the case. This places the impacts

of individual variances more into perspective. 

Note: Do not include FIX variances in these computations. FIX 

variances are not included in the error determination and thus 

are not part of any overissuance or underissuance. 

Perform all the steps of the Simple Calculation method above to 

establish the impact of the individual variances. 

12 - 7 
 FNS HANDBOOK 310 

 

Total the resultant individual dollar impact amounts. In doing 

this total, negative numbers are subtracted from positive 

numbers. 

Determine the percentage that the actual error dollars for the 

case relative to the total of the individual impacts of the 

variances. By determining the percentage that the error dollars 

are to the sum of the individual impacts of the variances, you can 

apply this resultant percentage to the individual impacts of a 

variance to determine its relative impact to the error dollars of 

the case. 

To determine the percentage, divide the overissuance/ 

underissuance amount for the case by the total of the impact of 

the individual variances.

Percentage of error dollars of total impact of the individual 

variances:

 Overissuance/Underissuance Error Dollars

 X 100 

 Total of the Dollar impact of the individual variances 

Multiply each individual dollar impact for a variance by the 

determined percentage. Each resultant figure represents the 

dollar impact, associated with that particular variance. 

(See the example case and figure 2.) 

12 - 8 
 FNS HANDBOOK 310 

 

Example Case:

Household Description: The household was comprised of Jan Williams (age 35) 

and her two children, Alan (age 15) and Terry (age 11). Mrs. Williams' mother, 

Mary Bailey (age 61), also lived in the household. All 4 purchased and prepared 

their meals together. No one was disabled. Jan Williams earned $650 a month 

working part-time at a local hardware store. She netted $500 a month from 

rental property that she did not actively manage. She also received $400 a 

month for child support from her ex-husband. Her mother, Mrs. Bailey, earned 

$450 a month working part-time at the local movie theater. The rent and 

utilities for their apartment totaled $1050 a month. The household was 

certified as a 3-person household for October 2001. 

EW actions: The EW correctly identified Jan Williams' earned income from the 

hardware store, her unearned income from the rental property, and correctly 

computed the shelter costs. 

Variances: There are 4 variances in the case: 1) The EW failed to include the 

unearned income from child support, 2) The EW incorrectly excluded Mrs. Bailey 

from the household, and in doing so, failed to include Mrs. Bailey's $450 a month 

earned income, 3) used the allotment amount for a household of 3, instead of a 

household of 4, and 4) incorrectly allowed medical deductions for Jan Williams 

and her sons.

Impact Calculation. Figures 1 and 2 below, trace the calculation of the impact 

of each of the individual variances in the example case. 

Simple Calculation Method (Figure 1) 

Refined calculation Method (Figure 2)

12 - 9 
 FNS HANDBOOK 310 

 

Figure 1 

Simple Calculation of Variance Dollar Amounts 

Associated With Individual Variances

EW SAQC Variance A B C D

Earned Income 650 1100 A 1100 650 650 650

Unearned Income 500 900 B 500 900 500 500

Gross Monthly 

Income 

1150 2000 1600 1550 1150 1150

Earned Income 

Deduction 

130 220 220 130 130 130

Standard Deduction 134 134 134 134 134 134

Excess Medical Costs 30 0 C 30 30 0 30

Allowable Shelter 

Deduction (Actual 

costs = $1050) 

622 227 332 422 607 622

Net Monthly Income 234 1419 1104 834 279 234

Thrifty Food Plan 356 452 D 356 356 356 452

30% of Net Income 71 426 332 251 84 71

Allotment 285 26 24 105 272 381

Over/Underissuance 

or Impact 

259 261 180 13 -96

Sum of Impact = 358 

Variance A = $450 in earned income not counted by EW. Individual impact = 

$261 overissuance. 

12 - 10 
 FNS HANDBOOK 310 

 

12 - 11 

Variance B = $400 in unearned income not counted by EW. Individual impact = 

$180 overissuance. 

Variance C = EW incorrectly allowed medical costs (not elderly/disabled). 

Individual impact = $13 overissuance. 

Variance D = Household size was 4, not 3. TFP = $452. Individual impact = $96 

underissuance. 

Note: Using this method, the sum of the individual impacts ($358) is not equal 

to the overissuance ($259). 

Figure 2 

Refined Calculation of Variance Dollar Amounts 

Associated With Individual Variances

Calculation of Refinement Factor: 259 (Over/Underissuance) 

÷ 358 (Sum of Impacts) 

= .72 (Refinement Factor) 

$ Impact by Individual Variances 

A B C D 

Impacts by Simple Calculation Method 261 180 13 -96 

Times Refinement Factor .72 .72 .72 .72

Impacts by Refined Calculation Method 188 130 10 -69 

Sum of Impacts = 259 

Using this method, the sum of the impacts ($259) is equal to the overissuance 

($259). 
FNS HANDBOOK 310 

CHAPTER 13 

NEGATIVE CASE RECORD REVIEWS 

1300 INTRODUCTION. This chapter describes reviews of negative 

actions. 

1310 PROCEDURES FOR CASE RECORD REVIEWS. The reviewer is

required to conduct a case record review. This section provides guidance on 

conducting reviews of the household's case record including documentation of 

verification contained in the case record and obtaining verification from

collateral contacts. Negative cases include:

• A household which was denied initial benefits; 

• A household whose benefits were terminated. A termination is a 

break in participation that is the result of deliberate State 

agency action. "Break in participation" means that the household 

did not receive a full month's allotment in the effective month of

the termination action, or that the household received a 

prorated allotment in the effective month of the termination 

action. 

However, a terminated household that continued to receive 

benefits pending a fair hearing is subject to review as a negative 

case. Also a household whose assigned certification period has 

been shortened is subject to review as a negative case if there 

was a break in participation. 

• A household whose benefits were suspended. A suspension is 

when the household has not been terminated from the program 

but is ineligible for benefits or is eligible for zero benefits. 

However, a suspended household that continued to receive 

benefits pending a fair hearing is subject to review as a negative 

case. 

1320 CASES NOT SUBJECT TO REVIEW. Certain types of negative 

cases are to be excluded from the QC sample. These are normally eliminated 

in the sampling process; however, if such cases reach the reviewer, they must 

be eliminated at that point and reported as not subject to review (NSTR) on 

the Quality Control Negative Case Action Review Schedule, Form FNS-245, 

(Item N). Such cases include: 

13 - 1 
FNS HANDBOOK 310 

• Households that have withdrawn an application prior to the 

agency's determination. 

• Households that at the time of sampling are: 

1. Under active investigation for intentional Food Stamp 

Program violation (IPV); 

2. Scheduled for an IPV investigation sometime during the next 

five months; or 

3. Pending an IPV hearing. 

• Households that have their case closed when their assigned 

certification period ends, i.e., the household is not recertified. 

• Cases removed from the sample as a result of a correction for 

oversampling. 

• Cases in which a decision to deny, terminate, or suspend the case

was made and subsequently reversed. In the case of denials or 

suspensions at application, the household was subsequently 

certified in time for initial benefits to be issued within the 

normal processing standard for the same month using the same 

application form. In the case of terminations or suspensions, the 

household continued to receive full month's benefits in the 

effective month of the termination/suspension action, for 

reasons other than continuation of benefits pending a fair 

hearing, with no break in participation. 

• Households that have been sent a notice of pending status but 

were not actually denied participation. 

• Cases listed in error (an active case in the negative frame) 

• Households denied food stamps under a disaster certification 

authorized by FNS. 

• Cases terminated or suspended for the household's failure to file 

a complete required report by the extended filing date, but 

reinstated when the household subsequently filed the complete 

report before the end of the issuance month. 

*

• Households that experience a break in participation due to 

computer malfunction or error that is not the result of a 

deliberate action by the State agency to terminate benefits. 

13 - 2 
FNS HANDBOOK 310 

• Suspended case after the initial month of a multi-month 

suspension. 

1330 CASE RECORD REVIEW. 

1331 Purpose of Case Record Reviews. The purpose of the case

record review is to verify through documentation contained in the case record 

whether the State agency's decision to deny, terminate or suspend the 

household was correct. The review date is the decision date for the action to 

deny, terminate, or suspend benefits. A valid negative action is one that is 

based on a correct reason. Under these procedures the reviewer is required to 

evaluate the stated reason for the negative action. These procedures also 

allow a reviewer to look for another correct reason for the negative action 

when the stated reason is an invalid reason. 

The review procedures do not base the validity of a negative action on a State 

agency's administrative system for putting an otherwise valid negative action 

into effect. If there is a valid reason for the negative action, the case will be 

valid even if the State did not meet the timeliness standards for a Notice of

Adverse Action (NOAA) or did not send a NOAA. 

1332 Scope of the Negative Action Case Review. The review of 

the correctness of the agency's action to deny or terminate assistance is 

conducted in relation to the date of the agency's decision and is generally 

limited to a desk review. In situations where the desk review does not verify

the validity of the negative action, the reviewer may conduct an expanded 

review including field investigations. 

1333 Procedures for the Case Record Review. The case record 

review must include all information applicable AORD to the case, including the 

application and the worksheet. The case record review process includes: 1) a 

review of the household case record, 2) an error analysis, and 3) the reporting 

of the review findings. 

1334 Completion of Case Record Reviews. During the review of 

the case record, the reviewer must: 

• Examine all available records related to the negative action 

• Determine the reason for the negative action 

• Decide if the action was appropriate for the situation 

• Determine if the record completely documents the reason the 

negative action was taken 

13 - 3 
FNS HANDBOOK 310 

• Conduct an expanded review within the case record if the reason 

for the negative action is not valid 

• Conduct an expanded review beyond the case record for those 

that the record does not indicate a valid reason for the negative 

action (optional) 

• Determine if the case is valid or invalid 

• Complete the FNS-245. This includes the household case record 

sections and document the reasons for denial, termination or 

suspension. A complete explanation of the negative action 

taken, appropriateness of the action, any collateral contacts 

must be included and all supporting documentation must be

attached. The explanation should delineate between the initial

review and the expanded review. 

1340 ACCEPTABLE DOCUMENTATION. The case record may contain 

documents or statements that the reviewer may use as verification if the 

documentation is adequate and it applies to the appropriate time period. 

Examples of documents or statements which can be considered acceptable 

documentation are certified or reproduced copies of official documents or 

reports, information on a signed application, check stubs, receipts or full 

recording by a person who has secured information directly from public or 

other records. Acceptable documentation must clearly demonstrate 

ineligibility. For example, a case that has been denied for being over the gross 

income limit based upon earnings, must have a complete explanation including 

the earning figures (each weeks pay, etc.) used to calculate the monthly 

earnings and showing the calculation/conversion. 

The reviewer need only verify information used to determine the correctness of 

the decision to deny, terminate or suspend the household. If the agency's 

reason given for the action is correct, the reviewer need only verify 

information for that one item. However, if the agency is incorrect and the 

reviewer goes further and determines that the household is ineligible for some 

other reason in the case record, that information must also be verified. In 

order to determine whether a household is ineligible, the reviewer may have to 

verify a single element of eligibility or all elements, depending upon the 

circumstances of each case. Documentation in the case record must be 

sufficient to support the reviewer's decision on the status of the case. The 

reviewer may wish to use an FNS-380 in addition to the FNS-245 to document 

the circumstances of a case that requires reviewing all elements. 

The first source of documentation in a negative case record may be a written 

statement made by the participant. Statements made by participants that are 

13 - 4 
FNS HANDBOOK 310 

documented in the case file need not be verified. For example, if a household 

has been found ineligible because of its resources and the household's 

application reports resources that exceed the amount allowed, the reviewer 

need not verify the statement with the household. 

1350 COLLATERAL CONTACTS. The reviewer may obtain verification 

from collateral contacts when adequate verification is not available in the case 

record. The procedures in sections 424.7, Obtaining Collateral Contacts, and 

430, Collateral Contacts, must be used in establishing collateral contacts. The 

reviewer must use the most reliable collateral verification available (e.g., 

banks, payroll listings, etc.) and must thoroughly document and/or attach all 

verification obtained. 

If any information obtained by the reviewer differs from that given by the 

participant, the reviewer must resolve the differences. The manner in which

the conflicting information is resolved must include recontacting the 

participant. If the participant cannot be reached, the reviewer must accept 

the collateral verification as correct. The reviewer must document the 

attempts to contact the participant. 

If the reviewer decides to obtain verification or a household release to contact 

a collateral contact (as discussed in section 424.7, Obtaining Collateral 

Contacts, and is unable to locate the household, the reviewer must code the 

case as invalid (the case record does not support the State agency's action.) If 

the household and/or the collateral contact(s) refuse to cooperate and the 

reviewer is unable to verify all of the necessary information by any other 

means, the reviewer must code the case as invalid. 

1360 ERROR ANALYSIS. If the reviewer is able to verify through 

documentation in the case record or a collateral contact that a household was 

correctly denied participation, terminated or suspended from the program, the 

case must be found to be a valid negative action. When the household is not 

ineligible for benefits because of the State agency's reason for the denial, 

termination or suspension, the reviewer must expand the review to determine 

whether or not the household is ineligible for benefits for any other reason 

documented in the case record. At its option, the reviewer may expand the 

review beyond the case review to find if there is a valid reason that the 

negative action was taken. When the household is not ineligible for benefits 

because of the State agency's reason, and the reviewer finds another reason 

that the household is ineligible for benefits the case will be found to be a valid 

negative action. If the reviewer is unable to verify the correctness of the State 

agency's decision to deny, terminate or suspend a household's participation 

through such documentation or collateral contact, the case must be found to

be an invalid negative decision. 

Example of a valid denial: The State agency denied a household participation 

in the program because of excess income. The reviewer is able to verify 

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through documentation in the case record or collateral contact that the

household's income exceeds the gross or net income limits. The case is a valid 

negative decision. 

Example of a valid suspension: The State agency suspended a household’s 

participation in the program because of receipt of overtime. The reviewer 

confirms that the reported income would render the household ineligible. The 

case is valid. 

Example of an invalid termination: The State agency terminates the 

household for failure without good cause to comply with work requirements. 

The reviewer is unable to verify the correctness of the State agency's decision 

to terminate the household's participation through documentation in the case 

record or collateral contact; the case is invalid. 

Example of an invalid suspension: The State agency suspended a household 

based on receipt of an extra paycheck. The reviewer confirms the extra 

paycheck but determines that there was a calculation error and the household 

was eligible for benefits. There is no other reason to justify the negative 

action. The case is invalid. 

Example of an invalid suspension that is, nevertheless, a valid negative

case: The reviewer confirms the household’s receipt of a fifth paycheck, 

which was the basis of the suspension, but determines that the net income is

less than the income limit so the household is eligible for benefits. The 

reviewer also verifies through DRS that all household members were 

disqualified from participating in the program during the period that includes 

the sample month. The case is valid. 

Example of a denial originally found to be invalid, that is, nevertheless, a

valid negative case: The State agency denied the application of a threeperson household for being over the resource limit. Careful checking of the 

value of their vehicle, that had taken them over the limit, indicated a mistake 

in the value of the vehicle. The household’s resources were under the resource 

limit. However, further analysis of the case found that the household's net 

income exceeded the net income limit so the household was not eligible for

benefits. The case is valid. 

1361 Variances. When the decision to deny, terminate or suspend a 

case is found to be incorrect, a variance exists in the case. The decision is 

incorrect if the reviewer cannot confirm the validity of the caseworker's 

decision or any other reason to deny, terminate or suspend the case. All 

identified variances in the case must be explained on the Form FNS-245. 

1362 Reporting Findings. When a negative case is invalid, the State 

agency must take appropriate action on the individual case, such as, certifying 

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the household if it is currently eligible and restoring lost benefits. The 

reviewer must also code and record the error determination on the Form FNS245. 

1370 DISPOSITION OF CASE REVIEWS. Each case selected in the 

sample of negative cases must be accounted for by classifying it as review 

completed, NSTR/listed in error, incomplete/review not processed, or case 

deselected on the Form FNS-245.

1380 INCOMPLETE CASES. Negative cases must be reported as not 

completed if, after all reasonable efforts, the reviewer is unable to locate the 

case record. 
FNS HANDBOOK 310 

CHAPTER 14 

INFORMAL RESOLUTION AND ARBITRATION 

1400 INFORMAL RESOLUTION AND ARBITRATION. 

1410 INFORMAL RESOLUTION. Informal resolution is a process that 

provides an avenue for States to challenge what they believe to be incorrect 

Federal findings. This is not a process of negotiation or compromise between 

the Federal and State agencies. 

Informal resolution may begin after FNS signs the official regional findings 

letter. This may be prior to the State’s receipt of the findings letter. States 

can accomplish such a challenge through phone calls, data faxes, etc. In any 

case, when contacted by the State, the FNS regional office should make every 

effort to explore the State's contention as quickly as possible. 

Informal resolution must end on the earlier of: 

• The date the arbitrator receives the State’s request for 

arbitration, or 

• The State’s deadline for requesting arbitration for that review. 

If, through informal resolution, the State agency and FNS regional office agree 

to a modified Federal finding prior to the 20-day deadline for requesting 

arbitration of the original finding, the new finding must be transmitted to the 

State agency. In such circumstances the State agency retains the right to 

request arbitration of the new Federal finding, if they are in disagreement with 

the new finding. 

Informal resolution can be continued up to the regulatory time limit for 

requesting arbitration. However, the onset or continuance of informal 

resolution does not postpone the 20-day time limit for requesting arbitration. 

Informal resolution may continue until the disagreement is resolved or until 

arbitration is requested or until the 20-day limit for requesting arbitration 

expires, whichever is earlier. 

1420 ARBITRATION. The purpose of the arbitration process is to resolve 

disagreements between the State agency and the FNS regional office 

concerning individual QC case findings and the appropriateness of actions taken 

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to dispose of an individual case. The following are circumstances that are 

subject to arbitration: 

• Disagree cases (where the Federal findings disagreed with the 

State agency’s findings). 

• Cases where the FNS regional office disagreed with the State 

agency’s disposition of the cases, including disputes over whether 

a case is subject to review or incomplete. 

• Cases where the application of policy in a particular QC case 

impacts the difference in a disposition/finding. 

Established policy, and comments on or coding of procedural deficiencies that 

do not impact the findings/disposition are not subject to arbitration. 

Agree cases are not subject to arbitration. These cases can be discussed 

through the informal resolution process. If, as a result of informal resolution, 

the state and the FNS regional office decide the previously issued agree 

findings no longer apply (e.g., because the State found new information about 

the case), the regional office will issue a new letter disagreeing with the 

State’s original findings. This disagree case is subject to arbitration. 

Arbitration is a one-tier process. The State agency appeals to the FSP Quality 

Control Arbitrator if the State agency does not agree with the regional office 

findings. 

Arbitration is limited to an examination of specific issues supporting the 

findings or disposition being challenged. However, the arbitrator cannot ignore 

any mathematical errors on the computation sheet that are discovered during 

the review of the case. The impact of the mathematical errors must be 

included in the final benefit calculation. 

1421 Documentation. It is the responsibility of the State agency to 

include all the necessary documentation to support its position when it submits 

a case for arbitration. Failure to include a single important piece of 

information could result in an adverse decision. The documentation may 

include, but is not necessarily limited to: 

• A copy of the FNS-380, FNS-380-1, attachments to the FNS-380, 

the region's finding, and subsequent correspondence from the 

FNS regional office related to the finding; 

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• Options selected such as budgeting TANF prospectively in a 

retrospectively budgeted system; 

• The existence and provisions of all waivers applicable to the case 

circumstances, including the approval, implementation dates, 

and expiration dates; 

• Applicable State policies including implementation dates, e.g., 

pages of the State manual indicating the conversion method 

selected, applicable standard utility allowance(s); 

• Written policy interpretations provided by FNS and the date 

provided to the State agency; 

• A clear record of all actions taken by the reviewer to try to 

complete a case, e.g., documentation showing the reviewer 

checked for personal property, that the household was contacted 

to clarify any disputed information; 

• Appropriate verification and adequate documentation of every 

aspect of the household’s circumstances; and 

• Legible copies of all case record material (a half cut-off copy of a 

court record on child support payments that is not identifiable 

cannot be considered by the arbitrator). 

If the arbitrator needs additional information, it is the arbitrator's prerogative 

to request the needed information from whichever party the information is 

needed. In the decision to the State agency, the arbitrator will explain the 

rationale for the decision, addressing each particular issue that was involved in 

the decision. 

1422 Usual Timeframe for 

Requesting Arbitration. Each 

time the Federal reviewer reports a 

disposition/finding in a case to the 

State agency that disagrees with 

the State’s original 

finding/disposition, the State 

agency has a right to request 

arbitration. 

Example of the First Day of the 20-

Day Period: The State agency receives 

the findings letter on June 8, then June 

9 is the first day of the 20-day period. 

The postmark on the State agency's 

request will be used to determine 

whether a request was submitted 

timely. 

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A State agency must request arbitration within 20 calendar days of receipt of 

the regional findings letter. The first day of the 20-day period begins with the 

day after the day the State agency receives the findings. 

It may happen that a State agency 

timely disposes of a review as 

incomplete or not subject to review, 

and later completes the review. In 

such a situation, the State agency 

has the full 20-day period to request 

arbitration. 

Example of a request that is too late 

for arbitration: The regional findings 

were issued to the State agency on 

March 4 and received by the State 

agency on March 8. The case is a 

disagree case. The State agency's 

request for arbitration is postmarked 

April 11. This case is not subject to 

arbitration as it was submitted late. 

Example of a request that is timely: 

The regional findings were issued to the 

State agency on February 27 and 

received by the State agency on March 

1. The case is a disagree case. On 

March 15, (postmark) the State agency 

requested arbitration. This case is 

subject to arbitration. 

Example of a request that is timely 

because FNS issued a new finding 

letter: The regional findings were 

received by the State agency on March 

1. The FNS regional office agreed with 

the State agency findings. On April 5 the 

State agency requested arbitration based 

on new information disputing its initial 

findings. The regional office had issued 

a new letter on March 20 disagreeing 

with the State’s original findings. This 

case is subject to arbitration. 

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1423 Unusual Timeframe 

for Requesting Arbitration. A 

State agency is supposed dispose of 

each review no later than the 95th day 

after the end of the sample month. 

For every day that disposition is late, 

the State agency loses a day to 

request arbitration. 

Example of how the usual timeframe 

is reduced: The review’s sample 

month was April. The deadline for 

disposing the review was August 3rd. 

The State agency disposed of the 

review on August 5th. The State agency 

received the federal finding on October 

6th. The usual deadline for requesting 

arbitration would be October 26th. But 

because the disposition was two days 

late, the deadline for requesting 

arbitration would be October 24th. 

Example of a late request because of a 

late disposition: The State agency was 

ten days late in disposing the review. 

The State agency received the finding 

letter on November 7th. The State 

agency requested arbitration on 

November 19th. The case is not subject 

to arbitration because it was submitted 

late. 

1430 FOOD STAMP PROGRAM QUALITY CONTROL ARBITRATION. 

1431 General. Food Stamp Program quality control arbitration is the 

final level in the process of resolving differences in the disposition and findings 

of cases within the program. As such, when the arbitrator makes a 

determination, that decision is final. Because of the finality of arbitration, it is 

very important that the case record be complete when the case is submitted to 

the arbitrator. 

1432 Quality Control Arbitrator. This individual must not be a QC 

reviewer, oversee QC reviewers, or in any way be directly involved in the 

validation effort. 

1433 Quality Control Arbitration Procedures. The State agency 

will have 20 days from the date of the receipt of the regional findings letter to 

request arbitration of a disagree case. If the last day of the period falls on a 

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Saturday, Sunday, or Federal or State holiday, the 20-day time frame runs to 

the end of the next work day. Requests for arbitration must be sent directly to 

the quality control arbitrator: 

FSP Quality Control Arbitrator 

USDA, Food and Nutrition Service 

Food Stamp Program 

Room 814 

3101 Park Center Drive 

Alexandria, VA 22302 

The State agency will notify the appropriate FNS regional office when 

arbitration is being requested. The arbitration request should include all 

appropriate documentation as specified in section 1421 of this chapter. 

However, additional information may be submitted after the request, provided 

it is submitted within the 20-day time frame. 

The arbitrator may request additional information from the State agency 

whenever necessary. The arbitrator will notify the State agency of the 

decision, explaining the rationale for the decision. 

1440 HANDLING CASE FINDINGS. In determining State agency error 

rates, the FNS regional office will use the results of its review unless the 

arbitrator decides in favor of the State agency or an alternate finding. Once 

the arbitrator's decision has been made, the FNS regional office will make any 

changes necessary to the State and/or regional disposition or findings. 
FNS HANDBOOK 310 

APPENDIX A 

COMMON CERTIFICATION WAIVERS 

Food Stamp Quality Control Review Procedures 

Introduction 

This handbook’s review procedures follow the Food Stamp Program’s 

nationwide regulations and policies. However, FNS has waived the regulations 

in certain policy areas that allow States to follow alternative procedures. 

The following are review procedures for common certification waivers 

approved by FNS. Food Stamp quality control reviewers must use these 

alternative procedures only when their State has an approved FNS waiver. 

These review procedures are not optional alternatives to the rest of the 

handbook. 

They cover the following areas: 

• Semi-annual reporting – acting upon all reported changes 

(see page A-2 through A-8) 

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SEMI-ANNUAL REPORTING 

ALL REPORTED CHANGES ACTED UPON

726 Semiannual Reporting. Under limited reporting, many 

households are only required to report changes that cause the household’s 

gross monthly income to exceed 130% of the poverty income guideline for the 

household size. In general, any variances in the case resulting from changes, 

other than exceeding 130% of the poverty guideline, which occur after the 

certification action to authorize the sample month benefits, shall be excluded. 

Variances that occurred prior to, or at the time of the certification action to 

authorize the sample month benefits shall not be excluded under the provisions 

of this section. 

It should be noted that limited reporting households containing an Able Bodied 

Adult Without Dependents (ABAWD) are subject to the additional reporting 

requirement specified in regulations at 7 CFR 273.12(a)(1)(viii). These 

households must report any changes in work hours that bring the ABAWD 

individual below 20 hours per week, averaged monthly. For limited reporting 

cases containing ABAWDs the reviewer must continue to carry out the 

procedures for evaluating the correctness of Time Limited Participation as 

specified in section 850.7 

726.1 Variance Determination. The reviewer shall follow these steps 

in completing the error determination: 

• Step 1. Overview of Case Correctness. Compare the QC 

verified sample month circumstances to the amounts and 

circumstances used to authorize the sample month benefits. This 

is the Comparison I allotment test provided for by instructions in 

section 621. If the difference between these two allotment 

amounts is $25 or less, the error determination process is over. 

If the difference between these two allotment amounts is greater 

than $25, the reviewer shall proceed to 

 Step 2. 

• Step 2. Evaluating the Correctness of the Certification Action. 

Correct the worksheet amounts and circumstances for 

misapplication of policy and computational errors by the 

eligibility worker and for incorrect reporting (including failure to 

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report) by the household at the time of the certification action 

that authorized the sample month benefits. 

Compare the QC verified sample month amounts and 

circumstances to the corrected worksheet amounts and 

circumstances. If there are no differences between these two 

allotment amounts, the error determination process is over. The 

reviewer shall use the corrected worksheet amounts and 

circumstances in the error determination. If there is a difference 

between these two allotment amounts, the reviewer shall 

proceed to Step 3. 

• Step 3. Evaluating Compliance with Change Reporting 

Requirements. Households are required to report changes that 

result in the gross monthly income exceeding 130% of the poverty 

income guideline for their household size. The reviewer must 

determine if any such changes occurred, and if they did occur 

whether the change must be included in the error determination. 

The reviewer shall compare the sample month income to the 

gross income standard for the household. (See Step 1) 

If the sample month income does not exceed the gross income 

standard then no reportable change has occurred. The reviewer 

will use the corrected worksheet amounts and circumstances in 

the error determination. (See Step 2) 

If the sample month income does exceed the gross income 

standard there has been a reportable change and the reviewer 

must proceed with the next step to determine whether the 

change occurred within the timeframes for reporting and acting 

on changes. (See Step 4). 

• Step 4. Evaluating Timeframes for When Changes Occurred. If 

the sample month was the first or second effective month of an 

initial certification action the review procedures in this step shall 

not be undertaken, since insufficient time would have passed for 

any changes to occur which would be required to be acted on by 

the review date. The reviewer must use the corrected worksheet 

amounts and circumstances in the error determination. (See Step 

2) This exception will also apply if, in following the procedures 

in this step, the reviewer is required to examine the 

circumstances of a month, such as the second or third month 

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prior to the sample month, in which the household was not 

authorized to participate in the Program for the entire month 

(and thus, was not subject to any Program requirements to 

report changes in household circumstances). Otherwise, the 

reviewer will proceed as follows. 

The reviewer shall compare the income from the month 

immediately prior to the sample month to the gross income 

standard for the household. 

If the income from the month immediately prior to the sample 

month does not exceed the gross income standard then the 

reportable change occurred within the sample month itself, and 

would be excluded from the error determination. The reviewer 

will use the corrected worksheet amounts and circumstances in 

the error determination. (See step 2) 

If the income from the month immediately prior to the sample 

month does exceed the gross income standard the reviewer must 

proceed with the next step to further evaluate whether the 

change occurred within the timeframes for reporting and acting 

on changes. 

The reviewer must compare the income from the second month 

immediately prior to the sample month to the gross income 

standard for the household. 

If the income from the second month immediately prior to the 

sample month does not exceed the gross income standard then 

the reportable change occurred within the month immediately 

prior to the sample month, and would be excluded from the error 

determination. The reviewer will use the corrected worksheet 

amounts and circumstances in the error determination. (See step 

2) 

If the income from the second month immediately prior to the 

sample month does exceed the gross income standard then, with 

three exceptions, the change has occurred outside of the 

timeframes for reporting and acting on changes, and the 

reviewer must include the unreported change in the error 

determination. 

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Exception 1 requiring the examination of a third month: Some 

State agencies have a Notice of Adverse Action (NOAA) period of 

10 days, and have elected to have households report exceeding 

the 130% limit within the first 10 days of the month following the 

month in which the change has occurred. Because of these 

circumstances, when the month prior to the sample month 

contains 30 days or less, the entire month prior to the sample 

month, and the entire second month prior to the sample month 

constitute an exclusionary period for QC purposes. The reviewer 

must determine the income from the 3rd month immediately prior 

to the sample month in order to make an error determination. 

The following chart shows which sample months are affected by 

these exceptional circumstances which may require the 

examination of a third month. 

Month Prior Sample Month 

February (28 or 29 days) March 

April (30 days) May 

June (30 days) July 

September (30 days) October 

November (30 days) December 

Exception 2 requiring the examination of a third month: Some 

State agencies have a NOAA period of 10+ days, and have elected 

to have households report exceeding the 130% limit within the 

first 10 days of the month following the month in which the 

change has occurred. Because of these circumstances, the entire 

month prior to the sample month, and the entire second month 

prior to the sample month constitute an exclusionary period for 

QC purposes. The reviewer must determine the income from the 

3rd month immediately prior to the sample month in order to 

make an error determination. 

Exception 3 requiring the examination of a third month: Some 

State agencies have NOAA periods of 10+ days, and have elected 

to have households report exceeding the 130% limit within 10 

days of the date when the change occurs. If the income from the 

second month immediately prior to the sample month exceeds 

the gross income standard because of income received by the 

household in the last few days of the month (within the QC 

exclusionary time frame for the 10+ days NOAA period) the 

reviewer must determine the income from the 3rd month 

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immediately prior to the sample month in order to make an error 

determination. If the income from the second month 

immediately prior to the sample month exceeds the gross income 

standard because of income received by the household prior to 

the last few days of the month (outside of the QC exclusionary 

time frame for the 10+ days NOAA period) the reviewer will not 

need to determine the income from the 3rd month immediately 

prior to the sample month in order to make an error 

determination. 

In all instances where a third month must be examined, if the 

income from the third month immediately prior to the sample 

month does not exceed the gross income standard then the 

reportable change occurred within the second month 

immediately prior to the sample month, and would be excluded 

from the error determination. The reviewer will use the 

corrected worksheet amounts and circumstances (see step 2) in 

the error determination. If the income from the third month 

immediately prior to the sample month does exceed the gross 

income standard then the change has occurred outside of the 

timeframes for reporting and acting on changes, and the 

reviewer must include the unreported change in the error 

determination. 

For non-categorically eligible households subject to the gross 

income test (the household does not contain an elderly or 

disabled member), with one exception (see below), the reviewer 

shall include the unreported change in the error determination 

by finding the household ineligible. 

For categorically eligible households, and for non-categorically 

eligible households that are not subject to the gross income test 

(the household contains an elderly or disabled member) the 

reviewer shall include the unreported change in the error 

determination by completing an allotment determination based 

upon household circumstances at the time immediately prior to 

the QC exclusionary time frame for the case. 

EXCEPTION: If the State agency: 

1) Has implemented the 130% reporting requirement in Limited 

Reporting by giving the household a flat figure based on the 

number of persons in the household at the time of certification 

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and instructing them to report when the household exceeds that 

figure, and 

2) If the QC reviewer discovers that for the months that must be 

examined, the household's income exceeded the gross reporting 

limit that the household was given, and 

3) If the QC reviewer discovers that an additional person has 

joined the household, so that although the household's income 

exceeded the reporting figure, it did not exceed the gross income 

limit for the new household size, then 

4) The QC reviewer will not determine the household unilaterally 

to be ineligible. Instead, the QC reviewer will complete the 

error determination with an allotment based on all of the 

household's circumstances for the time immediately prior to the 

exclusionary time frame for the case. These are the same 

instructions that the QC reviewer follows in completing the error 

determination on cases that are categorically eligible, and also 

for non-categorically eligible households that are not subject to 

the gross income test (the household contains elderly or disabled 

members). 

Households receiving benefits under the limited change reporting option are 

not required to report any changes in circumstances other than exceeding 130% 

of the poverty income guideline, during the certification period. As a result, 

unless a change has been processed since the initiation of the certification 

period, the review procedures outlined in this section shall be used in the error 

determination process. If a change in circumstances has been reported since 

the time of certification the reviewer shall use the review procedures in 

section 726.2. 

726.2 Special Circumstances. Changes That Have Been Reported or 

Become Known After the Initial Authorization of Six Month Limited Change 

Reporting Benefits. Although it is not required to do so, a household may 

report a change in its circumstances, other than an increase in income that 

exceeds 130% of the poverty income guideline, during the certification period. 

In addition, the agency may become aware of changes in the household’s 

circumstances from a source other than the household. If a change is 

reported/became known the following special review procedures apply. 

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A - 8 

• Processed Changes. The eligibility worker must process any 

change in circumstances reported by the household or which 

becomes known to the agency from a source other than the 

household. If the eligibility worker has changed the authorized 

benefits as the result of such a change, and the action is in effect 

as of the review date, then the reviewer shall determine the 

correctness of the new authorized benefit in accordance with the 

procedures in section 726.1. 

• Unprocessed Changes. The eligibility worker must process any 

change in circumstances reported by the household or which 

becomes known to the agency from a source other than the 

household. If the eligibility worker has failed to change the 

authorized benefits as the result of such a change, then a 

variance exists. The reviewer shall complete the error 

determination using corrected worksheet amounts and 

circumstances from the time the change was reported or became 

known to the agency. 

In regard to any reported changes, if a change in circumstances was reported or 

became known which the State agency was not required to effect as of the 

review date due to the regulatory timeframes for acting on reported changes, 

any variance(s) resulting from the agency's failure to effect the change shall be 

excluded in the error determination.
FNS HANDBOOK 310 

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INSTRUCTIONS FOR COMPLETING FORM FNS-380, 

THE WORKSHEET FOR FOOD STAMP PROGRAM 

QUALITY CONTROL REVIEWS 

GENERAL 

The standard worksheet appears in this Handbook in Appendix B. The automated 

worksheet may be downloaded from the USDA Food Stamp Quality Control homepage 

at the following address: http://www.fns.usda.gov/fsp/qc/default.htm. The users 

manual for the automated worksheet follows the FNS 380 form and the instructions 

for filling in the form. 

Some States have designed their own worksheet for Food Stamps Quality Control (QC) 

reviews. These States must submit for approval their designed worksheets to the FNS 

regional office (RO). The worksheet will be reviewed and States will then be notified 

of the decision. 

FACESHEET – PAGE 1 (FNS-380) 

This is page one of the Worksheet for Food Stamp Quality Control reviews. There are 

four sections: 

• Section A, is for identifying information and tracking information about 

the QC review. 

• Section B, lists persons living in the home. 

• Section C, lists significant persons not living in the home. 

• Section D, is a summary of the review findings. 

SECTION A – IDENTIFYING INFORMATION

1. Agency - Enter name of local agency. 

2. Case Name - Enter the name of the recipient by which the case is identified. 

3. Address - Enter the complete address at which the recipient resides. 

4. Telephone Number - Enter the telephone number at which the recipient can 

be reached. 

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5. Directions to Locate - Enter the directions to the address where the recipient 

resides. (This is particularly significant where the mailing address is a post office 

box number or rural route number.) 

6. Case Number - Enter the number assigned by the local agency to identify the

household that was certified. 

7. Review Number - Enter the number assigned to the Quality Control Review. 

8. Review Date/Month - Enter month, day, and year for which case eligibility 

and benefit level were reviewed.

9. Reserved - Leave blank. 

10. Most Recent Action: Date and Type - Enter the effective date (month, 

day, and year) of the most recent certification or recertification action prior to 

or concurrent with the review date. This date cannot be prior to the start of the 

most recent certification period. 

• A certification means the first time a case has been certified or a 

certification action following a break in participation. 

• A recertification means the initial certification period has expired and the 

agency has (a) completed a reexamination of all factors of eligibility subject 

to change following a period of time during which the recipient has been 

determined eligible and (b) made a decision to continue eligibility. 

11. Certification Period - Enter the period for which the case was certified. 

12. Participated During Sample Month - Check (√) the appropriate box to 

indicate if the household participated during the sample month. 

13. Received Expedited Service - Check (√) the appropriate box to indicate if 

the household was certified using expedited service procedures. 

14. Categorically Eligible Household - Check (√) the appropriate box to 

indicate whether the household was categorically eligible. 

15. Reviewer - Enter the name of the QC reviewer conducting the review and/or 

the reviewer’s identification number. 

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FNS HANDBOOK 310 

16. Date Assigned - Enter the month, day and year the sample case was received 

by the QC reviewer. 

17. Date of Case Readings - Enter the month, day and year the QC reviewer 

read the local office record of the recipient. 

18. Date of Personal Interview - Enter the month, day and year a personal 

interview was held with the recipient. 

19. Date Completed - Enter the month, day and year the Quality Control review 

was completed. 

20. Supervisor - Enter the name of the QC reviewer’s supervisor(s). 

21. Date Cleared - Enter the month, day and year the review was cleared by the 

supervisor for statistical processing. 

SECTION B – PERSONS LIVING IN THE HOME

Name - Enter the names of all persons living in the household. These would include 

the recipient, and both related and unrelated persons, including roomers and 

boarders. The first person listed should be the head of the household. 

If additional space is needed, use the reverse side of the facesheet. For additional 

space on the automated worksheet, press enter on the button labeled “Click for more 

HH members”. 

Birth Date - Enter the birth dates of all persons listed as members of the food stamp 

household. 

Age - Enter the age of all persons listed as members of the food stamp household. 

Relationship or Significance - Enter letters to show the relationship of the 

household members to the head of the household such as: 

• SP - spouse 

• S - son 

• D - daughter 

• GS - grandson 

• N - niece 

• FR - friend, etc. 

 

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FNS HANDBOOK 310 

Note: If the person is not included in the food stamp household under review but is a 

food stamp recipient indicate the case number under which he/she is receiving food 

stamps. 

Social Security - Enter the social security number of each household member. 

Enter “unknown” if the number cannot be determined from the case record or field 

investigation. Enter “none” if it is known that the household member never had a 

social security number. 

Recipient - Indicate whether the agency included this person in the sampled 

household. 

SECTION C – SIGNIFICANT PERSONS NOT LIVING IN THE HOME

Name - Enter the names of all persons, including responsible relatives not residing in 

the household, living or dead, who are of significance to the members of the food 

stamp household. This includes all absent parents (and alleged parents) of children in 

the household whether or not they are known to contribute to the person’s support. 

If the identity of the absent parent of a member of the household listed in Section B is 

unknown write “father/mother unknown” in this column and indicate the line number 

of the member in Section B. 

Relationship or Significance - Enter the relationship of each person to the 

member of the household listed in Section B, and identify by line number, the 

individual to whom the relationship pertains. 

Social Security Number - Enter the social security number (SSN), if known, of 

persons listed in this section. 

• Enter “unknown” if the number cannot be determined from the case record or 

field investigation. 

• Enter “none” if it is known that the person never had a SSN. 

Address - Enter the address of each person listed. If the address cannot be 

determined either from the case record or from the field investigation enter 

“unknown”. 

Phone Number - Enter the telephone number of each person listed. 

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FNS HANDBOOK 310 

Financial Support - Check (√) this box for any person who provided financial 

support to a member of the food stamp household during the budget or review month. 

SECTION D - REVIEW FINDINGS

This section provides a brief summary of the review findings. Enter the allotment 

amount authorized for the review month. (See section 232.) Check (√) the box that 

corresponds to the findings of the review of the case. If an error exists, enter the 

amount of the error. 

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FNS HANDBOOK 310 

WORKSHEET NARRATIVE- PAGES 2 THROUGH 14 (FNS-380) 

GENERAL INSTRUCTIONS 

Use the remaining portion of the worksheet to document each step of the 

independent full-field investigation and to evaluate each step in determining 

eligibility and appropriate benefit level. Record the facts sufficiently to establish the 

basis on which the decision was made on each element.

COLUMN 1, ELEMENTS OF ELIGIBILITY AND BASIS OF ISSUANCE

Listed are a number of elements associated with eligibility and benefit level. 

Definitions of these elements and verification requirements are found in Chapters 8 

through 11. States may add, under each area, any additional State eligibility 

requirements not included herein.

COLUMN 2, QC ANALYSIS OF CASE RECORD

Use this column to record documentation contained in the case record and to assist in 

planning for the field investigation. Enter details of recorded information that need 

not be reverified in this column. Note any pertinent facts; also record whether 

anything is questionable about the information. Identify questions that pertain to 

some but not all persons in the family. Indicate any of the following: conflicts in 

information recorded, factors subject to change, reliability of information recorded, 

reliability of source used, and missing information. 

Use this column selectively to highlight other points to be considered when conducting 

the field investigation or to remind you of the case situation. 

COLUMN 3, FINDINGS OF FIELD INVESTIGATION

Record the results of the field investigation. Information in this column provides the 

basis for completing the review findings and detailed error finding portions of the QC 

Review Schedule. The QC review is a review of the validity of the case at a given 

point in time in accordance with the provisions of Federal law, regulations, and 

implementing memoranda. Therefore, the entries in this column will relate to the 

facts of the situation affecting eligibility as of the review date even though the 

specific findings may or may not constitute a case error. 

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FNS HANDBOOK 310 

Answer any questions raised in Column 2 in this section. Entries such as “correct”, 

“verified”, and “OK” do not constitute adequate information. Document the specific 

sources used as verification or any attempts to verify the element for all applicable 

elements of eligibility and basis of issuance. Information must be provided in 

sufficient detail for anyone reviewing the case at a later time to clearly understand 

the conclusions on each element and the final conclusions on the case. 

Where there are eligibility or basis of issuance variances based on circumstances as of 

the review date, record the date the variances first occurred. 

COLUMN 4, RESULTS

Complete each element by circling one of the following to indicate the final decision: 

1 = No error 

2 = Agency error 

3 = Client error 

An agency error is defined as the failure of the agency to discharge its responsibilities 

in a proper and timely manner. 

A client error is defined as the failure of the recipient, guardian, or authorized 

representative to provide correct information or to otherwise discharge his/her 

responsibility in a proper and timely manner. 

Where both the agency and the client are responsible for the same error in an 

element the agency error takes precedence on the basis that the client’s failure 

would have been negated, and no discrepancy would have existed had the agency 

acted proper. 

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FNS HANDBOOK 310 

COMPUTATION SHEETS – PAGES 15 THROUGH 17 (FNS-380) 

General Instructions 

The computation sheets are to be used to document all completed active case 

reviews. The only exceptions are reviews of households that were ineligible for 

reasons other than income. Columns (1) and (2) are required to be completed, 

Columns (3), (4) and (5) are optional. Regardless of the use of Columns (3), (4), and 

(5), Columns (1) and (2) must be used as outlined below. 

COLUMN 1, ELIGIBILITY WORKER

Column (1), record the figures that the eligibility worker used to compute the 

allotment for the sample month. 

COLUMN 2, FINAL SAQC DETERMINATION

Column (2), record the final quality control determination figures based on the results 

of the review.

Note: If the household was ineligible because of gross or net income the reviewer may 

stop at the appropriate income line. 

COLUMNS 3, 4, 5 

Columns (3), (4), and (5) of the computation sheets are optional. They are included 

for the convenience of States and may be used for recording: 

• Comparison I 

• Comparison II 

• Illustrating the impacts of individual variances 

• Reflecting a retrospectively budgeted household’s prospective eligibility 

• Any other State identified purpose 

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USER’S MANUAL FOR AUTOMATED 380 FNS HANDBOOK 310 

FOOD STAMP QUALITY CONTROL 

AUTOMATED FNS-380 

User’s Manual 

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USER’S MANUAL FOR AUTOMATED 380 FNS HANDBOOK 310 

Table of 

Contents 

Introduction.......................................................................................3 

Data Entry...........................................................................................4 

1. Entering New Reviews .........................................................................4 

2. Viewing or Changing Previously Entered Reviews.........................13 

3. Ending a Work Session.........................................................................13 

Main Menu Utilities............................................................................14 

1. Computation Sheets .......................................................................................14 

2. Worksheet Completion Status......................................................................15 

3. Preview Menu ...................................................................................................16 

4. Print Menu .........................................................................................................17 

5. Delete Selected Review ...............................................................................18 

6. Import/Export Utility.......................................................................................19 

7. Save Entire Worksheet to a File ..................................................................21 

8. Appendix A .......................................................................................................22 

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USER’S MANUAL FOR AUTOMATED 380 FNS HANDBOOK 310 

INTRODUCTION 

The FOOD STAMP QUALITY CONTROL ELECTRONIC WORKSHEET (FNS-380) 

consists of one database that contains single or multiple reviews for a specific 

period (ex: fiscal year 2001). It was developed using Microsoft Access 2000. 

It allows users to: 

• Enter a new review 

• View previously entered reviews 

• Delete an entire review 

• Change a previously entered review 

• Import from/export to an ASCII file 

• Save entire worksheet to a file 

• Print any page from the worksheet 

To enter reviews for another period (ex: fiscal year 2002), the user needs to 

rename FNS-380 (ex: rename FNS-380 to FNS-380_2001 then download a 

new version from the USDA Food Stamps Quality Control homepage to use it 

for the new period. The address for this homepage is as follows: 

http://www.fns.usda.gov/fsp/qc/default.htm. 

To facilitate data entry, the system presents a full-screen data entry 

format; screen layouts resemble the pages of the Worksheet for Food 

Stamp Quality Control review. 

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USER’S MANUAL FOR AUTOMATED 380 FNS HANDBOOK 310 

DATA ENTRY 

1. ENTERING NEW REVIEWS 

 STEP 1: 

You must choose a review number before entering any review information. 

To enter a new review number, click on the box next to “CHOOSE A 

REVIEW NUMBER OR TYPE A NEW ONE”; then enter a new review number. 

 

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USER’S MANUAL FOR AUTOMATED 380 FNS HANDBOOK 310 

 STEP 2: 

To select a page from the electronic worksheet, go to the box to the right 

of CHOOSE AN ELECTRONIC WORK SHEET PAGE TO GO TO; click on the 

down arrow next to the box; and then choose a page from the drop down 

list. 

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USER’S MANUAL FOR AUTOMATED 380 FNS HANDBOOK 310 

The selected page of the Food Stamp Electronic Worksheet appears. 

OR 

To go to an Element of the electronic worksheet, click on the arrow next 

to the box beside CHOOSE AN ELEMENT TO GO TO: and then select an 

element from the drop down list. Or, you may type an element number 

(the system will automatically finish entering that element name in the 

block) and then click the box. 

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USER’S MANUAL FOR AUTOMATED 380 FNS HANDBOOK 310 

The selected page of the Food Stamp Electronic Worksheet appears. 

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USER’S MANUAL FOR AUTOMATED 380 FNS HANDBOOK 310 

To select a Review Schedule page, go to the box next to CHOOSE A 

REVIEW SCHEDULE PAGE TO GO TO; click on the down arrow for the box 

and choose a page from the drop down list. 

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USER’S MANUAL FOR AUTOMATED 380 FNS HANDBOOK 310 

The selected page of the Review Schedule appears. 

 

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USER’S MANUAL FOR AUTOMATED 380 FNS HANDBOOK 310 

STEP 3: 

To enter review data, simply begin typing. 

Some items to remember while entering data: 

 

• Press enter or Tab to skip over a field. 

• Use the right and left cursor movement keys to move from position to 

position within a field. 

• Amount fields are centered. 

• Hit F1 on any field to get help on that field. 

• A description of a field and/or the allowable range of characters that can 

be entered appears in the task bar on the bottom of the screen.

• If you are done entering data to the current page, check the box on the 

upper left corner to mark the page as completed.

The usual keyboard controls in a Windows environment are used in this 

program. Refer to Attachment A for more guidance on keyboard controls. 

In addition, for this application, filling, or moving past, the last field on a 

screen automatically opens the next data entry screen. Many fields have 

range-checking or data validation, and will not allow invalid data to be 

entered. You may either blank out the field or use the escape key to allow 

you to continue. 

These instructions above apply to using the cursor on all data entry 

screens. 

The Selection Menu appears at the top of the page selected. 

This menu allows the user to: 

• Move to the Next Page

• Go back to the Previous Page

• Print the page 

• Preview the page 

• Choose an Element to go to from the list box 

• Return to the Main Menu

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USER’S MANUAL FOR AUTOMATED 380 FNS HANDBOOK 310 

STEP 4: 

To enter review data appearing on the next page of the Electronic 

Worksheet, select Next Page at the top of the screen. 

The next page of the Electronic Worksheet appears. 

There are several things to remember when entering data to this screen: 

• When the next page is displayed, the cursor is in the first position of the 

first field. 

• Press Tab to move to the next field or to skip over a field. 

• Press Shift + Tab to move to the previous field. 

• To change data already entered to a field, move to the first position of 

the field, delete incorrect data and retype correct data. 

• To remove all data appearing in the field press CtrL+Del keys. 

• The data on the field is saved automatically when user advances to the 

next field. 

STEP 5: 

Continue entering data in the same manner on any selected page of the 

Electronic Worksheet. 

STEP 6: 

When data entry is complete, to add another review, return to the Main 

Menu and click on the Review Number list box to type a new review 

number, or click on the down arrow to select one from the list box. 

If there are no more reviews to enter, click Exit Food Stamp Quality 

Control System to close the program. 

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USER’S MANUAL FOR AUTOMATED 380 FNS HANDBOOK 310 

2. VIEWING OR CHANGING PREVIOUSLY ENTERED 

REVIEWS 

STEP 1: 

At the main menu select a review number from the list box. 

STEP 2: 

Select either an Electronic Worksheet page, an element or a Review 

Schedule page to go to. 

The selected page of the Food Stamp Electronic Worksheet for that particular review 

number will appear. Edit data on the Face Sheet page, pages 2-14 of the Food Stamp 

Electronic Worksheet, or the Review Schedule pages. 

 

STEP3: 

To view any additional reviews, click on Main Menu at the top of the 

screen and select another review number. 

3. ENDING A WORK SESSION 

To end the work session at any time, return to the Main Menu and click on 

Exit Food Stamp Quality Control System to close the application and 

exit the program. Data is automatically saved. 

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USER’S MANUAL FOR AUTOMATED 380 FNS HANDBOOK 310 

MAIN MENU UTILITIES 

(1) Computation Sheets 

Use the pull down box to select a review number, then click on 

Computation Sheets. Page 1 of the Food Stamp Program Quality Control 

Computation Sheet appears. Enter data or edit data as you need or do 

calculations manually. If you are using the automated version, calculations 

will be done automatically. 

A selection menu is at the top and bottom of the page. It allows the user to 

go to page 2, self-employment page, print and preview the current page. 

Use the scroll bar to view the rest of the page. When finished, click on the 

close button to go back to the main menu. 

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USER’S MANUAL FOR AUTOMATED 380 FNS HANDBOOK 310 

(2) Worksheet Completion Status 

This utility allows the user to check his work progress. It lists the Electronic 

Worksheet pages (Face Sheet page and pages 2-14) with a checkbox next 

to each page. If the checkbox is checked, it means that the corresponding 

page is completed for the selected review number. 

 

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USER’S MANUAL FOR AUTOMATED 380 FNS HANDBOOK 310 

(3) Preview Menu 

This utility has three sections: 

• Choose to preview the face Sheet page or any page from pages 2-14 

from the Preview Worksheet Pages section. 

• Choose to preview the computation sheets from the Preview 

Computation Sheets section. 

• Choose to preview the review schedule pages 1-3 from the Preview 

Review Schedule Pages section. 

At the bottom of the page, there are three command buttons: 

• Click on Main Menu button to go to the main menu. 

• Click on Print Menu to go to the Print Menu page. 

• Click on Exit Access to quit the application. 

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USER’S MANUAL FOR AUTOMATED 380 FNS HANDBOOK 310 

(4) Print Menu 

This utility has three sections: 

• Choose to print the face Sheet page or any page from pages 2-14 from 

the Print Worksheet Pages section. 

• Choose to print the computation sheets from the Print Computation 

Sheets section. 

• Choose to print the review schedule pages 1-3 from the Print Review 

Schedule Pages section. 

At the bottom of the page, there are three command buttons: 

• Click on Main Menu button to go to the main menu. 

• Click on Preview Menu to go to the preview menu page. 

• Click on Exit Access to quit the application. 

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USER’S MANUAL FOR AUTOMATED 380 FNS HANDBOOK 310 

(5) Delete Selected review 

Once a review is deleted from the Food Stamp Electronic Worksheet 

Program, it cannot be recovered. 

To delete a review, at the Main Menu, select a review number from the list 

box, then press the Delete Selected Review button. A confirmation box 

appears that states the review number to be deleted. Click Yes to delete 

that review. 

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USER’S MANUAL FOR AUTOMATED 380 FNS HANDBOOK 310 

(6) Import/Export Utility 

This utility allows the user to import cases from another database or export 

cases from this database to a text file (80 x 24). 

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USER’S MANUAL FOR AUTOMATED 380 FNS HANDBOOK 310 

Step 1: 

To import, choose Import cases from another database option. 

To export, choose Export cases to an ASCII file option. 

Step 2: 

Under File Name to Import from/Export to, enter the name of the file to 

import from/export to in the text box provided. Specify the path and the 

extension of the file. 

Step 3: 

To import/export all cases, select All Cases option. 

To import/export a range of cases, select Range of Cases option. 

When this option is selected, Starting Review Number and Ending Review 

Number text boxes are enabled. Enter the review numbers then click OK. 

To import/export more than one range, click on Add More and enter the 

additional ranges then click OK. A window appears that confirms the 

import/export process and tells how many cases were imported/exported. 

Click OK to return to the Main Menu.

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USER’S MANUAL FOR AUTOMATED 380 FNS HANDBOOK 310 

(7) Save Entire Worksheet to a File

This option allows the user to save the entire Electronic Worksheet 

Program to an executable file. 

Click on Save Entire Worksheet to a File utility, A Save As Dialog Box 

appears. Type a name for your file in the File Name text box. The file name 

cannot be more than eight characters. Click on Save. The review will be 

saved as a snapshot of the Face Sheet, pages 2-14 and Computation 

Sheets of the selected review number. The snapshot of all the pages will be 

saved in an executable file that can be emailed to a supervisor or 

colleagues. To view the case, double-click on this executable file to extract 

all the pages. 

Note: To be able to view these pages, Snapshot Viewer program must be 

installed on the computer. When viewing for the first time, the system will 

check to see if Snapshot Viewer program is installed. If it is not installed, it 

will ask to insert the Microsoft Office 2000 CD to install it. 

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USER’S MANUAL FOR AUTOMATED 380 FNS HANDBOOK 310 

B - 26 

APPENDIX A

Keyboard Controls for the worksheet are the usual keyboard controls for 

the Windows environment, as follows: 

Cursor control keys in the data entry / edit 

subsystem 

<Tab>/ 

<Return> Complete an entry, or move to the next 

field without entering. 

→ Move one position right in the current 

field. Will move to the next field if 

current field is highlighted. 

← Move one position left in the current 

field. Will move to the previous field if 

current field is highlighted. 

↓ (down arrow) Goes 1 line down; will go 

to the next field if current field is 

highlighted. 

↑ (up arrow) Goes 1 line up; will go to the 

 previous field if current field is 

highlighted. 

[Ctrl+Del] Delete all characters from the current 

field. 

<Esc> Undo all changes to current field. 

<Del> Delete a character at cursor position. 

<Ins> Inserts blank space at cursor position. 

<BackSp> Delete character before cursor. 
FNS HANDBOOK 310 

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APPENDIX C 
FNS HANDBOOK 310 

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FNS HANDBOOK 310 

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FNS HANDBOOK 310 

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FNS HANDBOOK 310 

INSTRUCTIONS FOR COMPLETING FORM FNS 380-1, 

QUALITY CONTROL REVIEW SCHEDULE 

GENERAL INFORMATION 

The Quality Control Review Schedule (QCRS) is the data entry form to record the 

results of Food Stamp Quality Control reviews. 

The schedule consists of seven sections: 

1 - Review Summary 

2 - Detailed Error Findings 

3 - Household Characteristics 

4 - Information on Each Household Member 

5 - Income Identified by Household Member 

6 - Reserved Coding 

7 - Optional - For State Use 

All entries in the QCRS are dollar amounts, dates, or numeric codes. 

Dates - Use six or eight-digit numbers as the entry requires. For example, 

October 3, 2003 would be coded: 1 0 0 3 2 0 0 3

1 0 2 0 0 3 The October sample month would be coded: 

Dollar Amounts - Round all dollar amounts to the nearest dollar; leading zeros are 

not required. For example, $165.00 is entered: 1 6 5

Not Applicable – If an item does not apply to the case reviewed, leave the applicable 

boxes blank: 

Unknown - If an item is known to exist but the specific amount is not known, fill in 

all boxes for that item with 9’s: 9 9 9 9

If no information is available or if the item does not apply to the household, leave the 

boxes blank. Do not enter zeros to indicate no information. 

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FNS HANDBOOK 310 

C - 6 

Stratum - States with stratified samples should submit to the FNS regional office a 

listing of the numeric codes utilized to identify stratum. Stratum codes are assigned 

by the State agency when the sample is stratified. If stratum codes are not used, 

leave blank or enter other identifying information at State option. 

Local Agency Code – This code is used to group data by county or county 

equivalent or smaller areas. The system requires a three-digit code. 

The State may use Federal Information Processing Standards (FIPS) codes or use an 

alternative method to designate local agency. Once a State has selected a method, 

submit to the FNS regional office a listing of the local agencies and corresponding 

codes. 

FIPS Codes – The National Institute of Standards and Technology has developed 

codes for classification of counties and county equivalents. These codes were 

devised by listing counties alphabetically and assigning sequentially odd integers; 

e.g., 001, 003, 005. 

QUALITY CONTROL REVIEW SCHEDULE 

SECTION 1 - REVIEW SUMMARY

This section records the final determination of the QC review. It is used to compute 

the States payment error rate. 

1. QC Review Number - Enter the number assigned to the Quality Control 

review. 

2. Case Number - Enter the number assigned by the local agency to the household 

that was certified and has been reviewed. 

3. State code - Enter the two digit State code from the following list of codes of 

National Institute of Standards and Technology. 
FNS HANDBOOK 310 

State Codes - National Institute of Standards and Technology 

State Code State Code

Alabama 01 Montana 30 

Alaska 02 Nebraska 31 

Arizona 04 Nevada 32

Arkansas 05 New Hampshire 33 

California 06 New Jersey 34

Colorado 08 New Mexico 35

Connecticut 09 New York 36

Delaware 10 North Carolina 37 

District of Columbia 11 North Dakota 38 

Florida 12 Ohio 39

Georgia 13 Oklahoma 40

Guam 66 Oregon 41

Hawaii 15 Pennsylvania 42

Idaho 16 Rhode Island 44

Illinois 17 South Carolina 45 

Indiana 18 South Dakota 46 

Iowa 19 Tennessee 47

Kansas 20 Texas 48

Kentucky 21 Utah 49 

Louisiana 22 Vermont 50

Maine 23 Virgin Islands 78

Maryland 24 Virginia 51

Massachusetts 25 Washington 53 

Michigan 26 West Virginia 54 

Minnesota 27 Wisconsin 55 

Mississippi 28 Wyoming 56 

Missouri 29 

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FNS HANDBOOK 310 

4. Local Agency Code – Enter the three-digit code designating the local 

agency for this case. 

5. Sample Month and Year - Enter the month and year for which the case 

eligibility and benefit level were reviewed. 

6. Stratum - Enter the two-digit stratum codes if sampling is stratified. If not 

stratified enter a State optional code or leave blank. 

7. Disposition - Enter one of the following codes: 

1 - Complete 

2 - Not subject to review 

3 - Incomplete 

4 - Case deselected 

If codes 2, 3, or 4 are used, no further entries are required on the remainder of 

the review schedule except item 68, reserved code for Timeliness of 

Application Processing (Expedited and 30 Day Requirement). 

8. Review Findings - Enter one of the following codes: 

1 - Amount correct 

2 – Overissuance

3 - Underissuance 

4 – Ineligible 

Do not complete sections 4 and 5 if code 4, ineligible, is used. 

9. FS Allotment Under Review - Enter the authorized amount of food stamps 

subject to review for the sample month. 

10. Error Amount - Enter the dollar amount of any identified error. The dollar 

amount of the error is the difference between the benefits the State 

authorized and the benefits the State should have authorized. Use the lower 

error amount from comparison one or comparison two. 

• For overissuance or underissuance errors, enter the error amount for those 

with errors exceeding $25.00. 

• For ineligible errors, enter the full amount of the error. 

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FNS HANDBOOK 310 

C - 9 

11. Case Classification - Enter one of the following codes: 

1 – Included in error rate calculation. 

2 – Excluded from error rate calculation - processed by SSA worker. 

3 – Excluded from error rate calculation, as designated by FNS (e.g. demo 

project, simplified FSP). 

SECTION 2 – DETAILED ERROR FINDINGS 

This section provides for the detailed coding of each variance identified during the QC 

review. If additional lines are needed to code error findings, attach an additional 

page. Since the information recorded in this section is the basis for corrective 

actions, the accuracy of the information is important. If more than one variance is 

identified, the variance that the agency believes is most significant in leading to the 

error should be listed first. 

12. Element - Enter the appropriate element number of the review for each 

variance identified. 

13. Nature codes - Enter the appropriate code for the nature of each variance. 

The following provides the element and nature codes to be used in items 12 

and 13. 

These nature codes may be used in any element: 

Nature code (98) - Transcription or computation errors. 

Nature code (99) – Other. Use this nature code in the following situations: 

a) If no specific nature code is listed under an element, 

b) If the nature of the error is clearly understood by looking at the 

agency/client code recorded for the error, or 

c) If none of the listed nature codes under an element apply to the 

error being recorded. 
FNS HANDBOOK 310 

C - 10 

BASIC PROGRAM REQUIREMENTS – (100) 

3⁄4 Element 111 - Student Status 

Nature codes: 

6 - Eligible person(s) excluded 

7 - Ineligible person(s) included 

3⁄4 Element 130 - Citizenship and Non-Citizen Status

Nature codes: 

Citizens

 6 - Eligible person(s) excluded 

 7 - Ineligible person(s) included 

124 - Variance resulting from use of automatic Federal information exchange 

system 

Non-Citizens

200 – Eligible non-citizen excluded 

201 – Ineligible non-citizen included 

124 – Variance resulting from use of automatic Federal information exchange 

system 

3⁄4 Element 140 - Residency 

Nature codes: 

99 - Other 

3⁄4 Element 150 - Household Composition 

Note: Variances should be coded under this element if a person or persons are 

unreported or incorrectly reported, unprocessed or incorrectly processed, and 

these persons also have income, resources or deductible expenses, which must be 

considered in the error determination. 
FNS HANDBOOK 310 

For example: the discovery of an unreported 62 year old with earned income, a 

bank account, and medical expenses would be recorded under Element 150 

(Household Composition), not Elements 211 (Bank Accounts or Cash on Hand), 311 

(Wages and Salaries), and 365 (Medical Deduction). 

Variances should not be coded under this Element for persons with characteristics 

that are specifically addressed under other 100 Series Elements (Student Status 

through Social Security Number). For example: the discovery of an eligible noncitizen in the household who was improperly excluded would be coded under 

Element 130 (Citizenship and Non-Citizen Status), not under Element 150 

(Household Composition). 

Nature codes: 

 7 - Ineligible person(s) included 

12 - Eligible person(s) with no income, resources, or deductible expenses 

excluded 

13 - Eligible person(s) with income excluded 

14 - Eligible person(s) with resources excluded 

15 - Eligible person(s) with deductible expenses excluded 

16 - Newborn infant improperly excluded 

3⁄4 Element 151 - Recipient Disqualification 

Nature codes: 

6 - Eligible person(s) excluded 

7 - Ineligible person(s) included 

3⁄4 Element 160 – Employment & Training Programs 

Nature codes: 

6 - Eligible person(s) excluded 

7 - Ineligible person(s) included 

3⁄4 Element 161 – Time-limited Participation

Nature codes: 

6 - Eligible person(s) excluded 

7 - Ineligible person(s) included 

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3⁄4 Element 162 – Work Registration Requirements

Nature codes: 

6 - Eligible person(s) excluded 

7 - Ineligible person(s) included 

3⁄4 Element 163 – Voluntary Quit/Reduced Work Effort 

Nature codes: 

6 - Eligible person(s) excluded 

7 - Ineligible person(s) included 

3⁄4 Element 164 – Workfare and Comparable Workfare 

Nature codes: 

6 - Eligible person(s) excluded 

7 - Ineligible person(s) included 

3⁄4 Element 165 – Employment Status/Job Availability 

Nature codes: 

6 - Eligible person(s) excluded 

7 - Ineligible person(s) included 

3⁄4 Element 166 – Acceptance of Employment

Nature codes: 

6 - Eligible person(s) excluded 

7 - Ineligible person(s) included 

3⁄4 Element 170 – Social Security Number 

Nature codes: 

6 - Eligible person(s) excluded 

7 - Ineligible person(s) included 

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RESOURCES - (200)

Liquid Resources

3⁄4 Element 211 – Bank Accounts or Cash on Hand

Nature codes: 

24 - Resource should have been excluded 

30 – Resource should have been included 

3⁄4 Element 212 – Nonrecurring Lump-sum Payment

Nature codes: 

24 - Resource should have been excluded 

30 – Resource should have been included 

3⁄4 Element 213 – Other Liquid Assets 

Nature codes: 

24 - Resource should have been excluded 

30 – Resource should have been included 

Non-Liquid Resources

3⁄4 Element 221 – Real Property 

Nature codes: 

24 - Resource should have been excluded 

30 – Resource should have been included 
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3⁄4 Element 222 – Vehicles 

Nature codes: 

24 - Resource should have been excluded 

30 – Resource should have been included 

3⁄4 Element 224 – Other Non-Liquid Resources 

Nature codes: 

24 - Resource should have been excluded 

30 – Resource should have been included 

3⁄4 Element 225 – Combined Resources 

Nature codes: 

20 - Incorrect resource limit applied 

29 - Exceeds prescribed limit 

INCOME (300)

Earned Income

3⁄4 Element 311 – Wages and Salaries

Nature codes: 

32 - Failed to consider or incorrectly considered income of an ineligible 

member 

35 – Unreported source of income (do not use for change in employment status) 

36 – Rounding used/not used or incorrectly applied 

38 – More income received from this source than budgeted 

39 - Employment status changed from unemployed to employed 

40 - Employment status changed from employed to unemployed 

41 - Change only in amount of earnings 

42 - Conversion to monthly amount not used or incorrectly applied 

43 - Averaging not used or incorrectly applied 

44 – Less income received from this source than budgeted 

46 - Failed to consider/anticipate month with extra pay date 

123 – Income incorrectly prorated 
FNS HANDBOOK 310 

3⁄4 Element 312 – Self-Employment

Nature codes: 

32 - Failed to consider or incorrectly considered income of an ineligible 

member 

35 – Unreported source of income (do not use for change in employment status) 

36 - Rounding used/not used or incorrectly applied 

38 – More income received from this source than budgeted 

39 - Employment status changed from unemployed to employed 

40 - Employment status changed from employed to unemployed 

41 - Change only in amount of earnings 

42 - Conversion to monthly amount not used or incorrectly applied 

43 - Averaging not used or incorrectly applied 

44 – Less income received from this source than budgeted 

45 - Cost of doing business not used or incorrectly applied 

3⁄4 Element 314 – Other Earned Income 

Nature codes: 

32 - Failed to consider or incorrectly considered income of an ineligible 

member 

35 – Unreported source of income (do not use for change in employment status) 

36 - Rounding used/not used or incorrectly applied 

38 – More income received from this source than budgeted 

39 - Employment status changed from unemployed to employed 

40 - Employment status changed from employed to unemployed 

41 - Change only in amount of earnings 

42 - Conversion to monthly amount not used or incorrectly applied 

43 - Averaging not used or incorrectly applied 

44 – Less income received from this source than budgeted 

45 - Cost of doing business not used or incorrectly applied 

Deductions

3⁄4 Element 321 – Earned Income Deductions

Nature codes: 

52 - Deduction that should have been included was not 

53 - Deduction included that should not have been 

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FNS HANDBOOK 310 

3⁄4 Element 323 – Dependent Care Deduction 

Nature codes: 

52 - Deduction that should have been included was not 

53 - Deduction included that should not have been 

Unearned Income

3⁄4 Element 331 – RSDI Benefits

Nature codes: 

 35 - Unreported source of income 

 37 - All income from source was known but not included 

 38 - More income received from this source than budgeted 

 44 - Less income received from this source than budgeted 

124 - Variance resulting from use of automatic Federal information exchange 

system 

3⁄4 Element 332 – Veterans Benefits

Nature codes: 

 35 - Unreported source of income 

 37 - All income from source was known but not included 

 38 - More income received from this source than budgeted 

 44 - Less income received from this source than budgeted 

124 - Variance resulting from use of automatic Federal information exchange 

system 

3⁄4 Element 333 – SSI and/or State SSI Supplement

Nature codes: 

 35 - Unreported source of income 

 37 - All income from source was known but not included 

 38 - More income received from this source than budgeted 

 44 - Less income received from this source than budgeted 

124 - Variance resulting from use of automatic Federal information exchange 

system 

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3⁄4 Element 334 – Unemployment Compensation

Nature codes: 

35 - Unreported source of income 

37 - All income from source was known but not included 

38 - More income received from this source than budgeted 

 44 - Less income received from this source than budgeted 

124 - Variance resulting from use of automatic Federal information exchange 

system 

3⁄4 Element 335 – Worker’s Compensation

Nature codes: 

 35 - Unreported source of income 

 37 - All income from source was known but not included 

 38 - More income received from this source than budgeted 

 44 - Less income received from this source than budgeted 

124 - Variance resulting from use of automatic Federal information exchange 

system 

3⁄4 Element 336 – Other Government Benefits

Nature codes: 

 35 - Unreported source of income 

 37 - All income from source was known but not included 

 38 - More income received from this source than budgeted 

 44 - Less income received from this source than budgeted 

124 - Variance resulting from use of automatic Federal information exchange 

system 

3⁄4 Element 342 – Contributions 

Note: Errors in Child Support Payments should not be recorded in this Element. 

See Element 350 (Child Support Payments Received from Absent Parent). 

Nature codes: 

 35 - Unreported source of income 

 37 - All income from source was known but not included 

 38 - More income received from this source than budgeted 

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FNS HANDBOOK 310 

 44 - Less income received from this source than budgeted 

124 - Variance resulting from use of automatic Federal information exchange 

system 

3⁄4 Element 343 – Deemed Income

Nature codes: 

 35 - Unreported source of income 

 37 - All income from source was known but not included 

 38 - More income received from this source than budgeted 

 44 - Less income received from this source than budgeted 

124 - Variance resulting from use of automatic Federal information exchange 

system 

3⁄4 Element 344 – TANF, PA, or GA 

Nature codes: 

 35 - Unreported source of income 

 37 - All income from source was known but not included 

 38 - More income received from this source than budgeted 

 44 - Less income received from this source than budgeted 

120 - Variance/errors resulting from noncompliance with this means-tested 

public assistance program 

124 - Variance resulting from use of automatic Federal information exchange 

system 

3⁄4 Element 345 – Educational Grants/Scholarships/Loans

Nature codes: 

 35 - Unknown source of income 

 37 - All income from source was known but not included 

 38 - More income received from this source than budgeted 

 44 - Less income received from this source than budgeted 

124 - Variance resulting from use of automatic Federal information exchange 

system 

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FNS HANDBOOK 310 

3⁄4 Element 346 – Other Unearned Income

Nature codes: 

35 - Unreported source of income 

37 - All income from source was known but not included 

38 - More income received from this source than budgeted 

44 - Less income received from this source than budgeted 

120 - Variance/errors resulting from noncompliance with this means-tested 

public assistance program 

124 - Variance resulting from use of automatic Federal information exchange 

system 

3⁄4 Element 350 – Child Support Payments Received from Absent

Parent

Nature codes: 

 35 - Unreported source of income 

 37 - All income from source was known but not included 

 38 - More income received from this source than budgeted 

 44 - Less income received from this source than budgeted 

111 - Child support payment(s) not considered or incorrectly applied for initial 

month(s)of eligibility 

112 - Retained child support payment(s) not considered or incorrectly applied 

124 - Variance resulting from use of automatic Federal information exchange 

system 

127 - Pass through not considered or incorrectly applied 

3⁄4 Element 361 – Standard Deduction

Nature codes: 

52 - Deduction that should have been included was not 

53 - Deduction included that should not have been 

65 – Incorrect standard used resulting from a change in household size 

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FNS HANDBOOK 310 

3⁄4 Element 363 - Shelter Deduction

Nature codes: 

 52 - Deduction that should have been included was not 

 53 – Deduction included that should not have been 

 64 - Incorrect amount used resulting from a change in residence 

123 - Incorrectly prorated 

3⁄4 Element 364 - Standard Utility Allowance

Nature codes: 

 52 – Deduction that should have been included was not 

 53 - Deduction included that should not have been 

 54 - Incorrect standard used (Not as a result of a change in household size or 

move) 

 64 - Incorrect amount used resulting from a change in residence 

 123 - Incorrectly prorated 

3⁄4 Element 365 - Medical Deductions

Nature codes: 

52 - Deduction that should have been included was not 

53 - Deduction included that should not have been 

3⁄4 Element 366 - Child Support Payment Deduction

Nature codes: 

52 - Deduction that should have been included was not 

53 - Deduction included that should not have been 

3⁄4 Element 371 - Combined Gross Income

Nature codes: 

28 - Incorrect income limit applied 

29 - Exceeds prescribed limit 

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FNS HANDBOOK 310 

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3⁄4 Element 372 - Combined Net Income

Nature codes: 

28 - Incorrect income limit applied 

29 - Exceeds prescribed limit 

OTHER - (500 and 800) 

3⁄4 Element 520 - Arithmetic Computation

Nature codes: 

75 - Benefit/allotment/eligibility incorrectly computed 

79 – Incorrect use of allotment tables 

80 - Improper proration of initial month’s benefits 

3⁄4 Element 530 – Transitional Benefits 

75 - Benefit/allotment/eligibility incorrectly computed 

77 - Household not entitled to transitional benefits 

99 - Other 

3⁄4 Element 560 - Reporting Systems 

Note: This element should be used to record errors resulting from the household 

being certified under an incorrect reporting system given the household’s 

characteristics and the State agency’s chosen options. Possible Reporting Systems 

include: Monthly Reporting, Quarterly Reporting, Semi-Annual Limited Reporting, 

Change Reporting, Status Reporting, 5 Hour Reporting and no reporting 

(transitional benefits). 

Nature codes: 

301 - Household improperly participating under retrospective budgeting 

302 - Household improperly participating under prospective budgeting 

303 - Household improperly participating under monthly reporting 

304 - Household improperly participating under quarterly reporting 

305 - Household improperly participating under semi-annual reporting 

306 - Household improperly participating under change reporting 
FNS HANDBOOK 310 

307 - Household improperly participating under status reporting 

308 - Household improperly participating under 5 hour reporting 

309 - Household improperly participating in transitional benefits 

3⁄4 Element 810 - Food Stamp Simplification Project

Nature codes: 

98 - Transcription or computation errors 

99 - Other 

3⁄4 Element 820 - Demonstration Projects 

Nature codes: 

98 - Transcription or computation errors 

99 – Other 

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FNS HANDBOOK 310 

14. Cause - Enter one of the following codes to indicate the primary cause for 

each variance identified. 

 1 - Information not reported. (Client failed to report information or changes 

that are required to be reported. Use this code only if the State could not 

know this information from another source or could not have anticipated 

the change.) 

 2 - Incomplete or incorrect information provided. (Client provided information 

that is incorrect or incomplete and the agency was not required to verify.) 

 3 – Information withheld by client. (Case being referred for IPV investigation.) 

 4 - Incorrect information provided by client. (Case being referred for IPV 

investigation.) 

 7 - Information reported by a collateral contact inaccurate. (The agency acted 

upon information provided by a collateral contact, which was verified by 

QC to be inaccurate, i.e. the client’s employer reported incorrect salary 

information.) 

8 – Acted on incorrect Federal computer match information that was not 

required to be verified. (This variance is excluded from the error 

determination but must be recorded.) 

10 - Policy incorrectly applied. (The agency used the wrong policy/incorrectly 

applied policy when determining eligibility or processing change 

information.) 

12 - Reported information disregarded or not applied. (The agency failed to 

take action on information reported by the client or information that 

became known through some other source, such as non-federal match 

information.) 

14 - Agency failed to follow up on inconsistent or incomplete information. 

(Information provided by the household or collateral source was 

inconsistent with other information in the case record or incomplete but 

the agency failed to request verification.) 

15 - Agency failed to follow up on impending changes. (The agency failed to 

take follow up action on a change that was anticipated, i.e. 

unemployment ending within the certification period, pregnancy, etc.) 

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FNS HANDBOOK 310 

16 - Agency failed to verify required information. (The agency failed to use 

third party information or documentation to establish the accuracy of 

statements on the application or change report form which are required to 

be verified. If the agency is not required to verify reported information 

use code 2.) 

17 - Computer programming error. (The agency eligibility system caused the 

error due to a programming related problem, i.e. an incorrect amount for 

standard deduction was programmed into the system, the agency 

authorized the use of workarounds to the computer system that resulted 

in an error, etc.) 

18 – Data entry and/or coding error. (The agency made a data entry error 

when keying into the State/local agency eligibility system, includes 

selection of incorrect codes.) 

19 – Mass Change. (The error was due to a problem with a computer generated 

mass change, i.e. mass change was run late or incorrectly updated the 

case.) 

20 - Arithmetic computation. (The agency made an error in computation or 

transcription, which was not related to computer programming or data 

entry.) 

21 - Computer user error. (The EW failed to use computer system properly or 

used an unauthorized process to work around the system.) 

99 - Other. (Variance caused by the agency, which does not fall under any of 

the specific causes listed above.) 

15. Error Finding – (Optional). This item provides a means for reviewers to 

identify the impact of individual variances. If only one variance is recorded for 

an error case, the error finding code for this item and item 8, finding, should 

be the same. Enter the appropriate code for each variance: 

2 - Overissuance 

3 - Underissuance 

4 – Ineligible 

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FNS HANDBOOK 310 

16. Error Amount - (Optional) Compute and enter the dollar amount of each 

separate variance. If one variance is coded, then the amount in this item 

should be the same as the error amount in item 10. If more than one variance 

is coded, the agency may use the optional guidance provided in Chapter 12 or 

use State developed procedures for assigning dollar amounts. Some agencies 

find this calculation helpful as an aid in prioritizing error causes for corrective 

actions. 

17. Discovery - Enter one of the following codes to indicate how the variance was 

discovered: 

1 - Variance clearly identified from case record: documentation is not from an 

automated match 

2 - Variance clearly identified from case record: documentation is from an 

automated match 

3 - Variance discovered from recipient interview 

4 - Employer (present or former) 

5 - Financial institution, insurance company, or other business 

6 - Landlord 

7 - Government agency or public records, not automated match 

8 - Government agency or public records, automated match 

9 – Other 

18. Verified - Enter one of the following codes to indicate how the variance was 

verified: 

1 - From case record: verification is not from an automated match 

2 - From case record: verification is from an automated match 

3 - From information provided by recipient 

4 - Employer (present or former) 

5 - Financial institution, insurance company, or other business 

6 - Landlord 

7 - Government agency or public records, not automated match 

8 - Government agency or public records, automated match (may not apply to 

tax information) 

9 - Other 

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19. Occurrence - Complete the following for each variance: 

a. Date - Enter the date (month and year) the variance occurred. 

b. Time Period - Enter the appropriate code to indicate the time period 

during which the variance occurred. 

1 - Before most recent action by agency (The most recent action would 

be either a certification or a recertification.) 

2 - At time of most recent action by agency 

3 - After the most recent action by agency 

9 - Time of occurrence cannot be determined 

SECTION 3 - HOUSEHOLD CHARACTERISTICS 

This section collects information about the household’s processing and specifics about 

resources, income, and deductions that were the basis of their food stamp benefits.

Some specific items come from the case record (Items 20-24, and 26-27). These items 

are: most recent action, type of action, length of certification period, allotment 

adjustment, amount of adjustment, receipt of expedited service, and authorized 

representative.

For all other items use information from the final QC determination. 

20. Most Recent Certification Action - Enter the effective date (month, day 

and year) of the most recent certification or recertification action prior to or 

concurrent with the review date. This date cannot be prior to the start of the 

most recent certification period and should be in the case record. 

21. Type of Action – Based on information in the case record, indicate the type 

of action by entering one of the following codes: 

1 - Certification 

2 - Recertification 

Certification means the first time a case has been certified or a certification 

action following a break in participation. 
FNS HANDBOOK 310 

Recertification means the initial certification period has expired and the 

agency has (a) completed a reexamination of all factors of eligibility subject to 

change following a period of time during which the recipient has been 

determined eligible and (b) made a decision to continue eligibility. 

22. Length of Certification Period - Enter the number of months the household 

was certified to participate during the current certification or recertification. 

For households that are participating in months for which 

they have not been certified enter the code 98. This information should be 

found in the case record. 

23. Allotment Adjustment – This item records whether there was any 

adjustment from the standard amount for the household size and income level 

of the household. Proration is providing less than a full month’s allotment due 

to the date of application or receipt of verification. Other adjustments include 

claims recoupment, sanctions, and adjustments for failure to comply with other 

means tested programs. Supplements included in the allotment are not 

considered as allotment adjustments for this item.

Enter the code that indicates whether or not the allotment was adjusted or 

prorated. If more than one adjustment was made, enter the code for the 

adjustment with the greatest impact on the food stamp allotment. 

Supplements included in the allotment are not considered as allotment 

adjustments for this item. 

1 - No adjustment 

2 - Prorated benefit 

3 - Other adjustment 

 

24. Amount of Allotment Adjustment - Enter the amount of the allotment 

adjustment from the record. If more than one adjustment was applied, enter 

the total amount of the difference between the allotment for the household 

size and income of the household and the amount the household actually 

received. If item 23 is coded 1, no adjustment, leave this item blank. Enter 9 

if the amount of adjustment is unknown. 

25. Number of Household Members - Enter the number of person(s) 

determined to be a part of the food stamp household and eligible to receive 

benefits based on the final QC determination. Include persons who should have 

been in the household but were not in the State’s original determination. Do 

not include persons whose income/resources are considered but are not 

receiving food stamps or food stamp household members who have been 

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FNS HANDBOOK 310 

disqualified from the program. If the household was ineligible for benefits, 

enter zero. 

26. Receipt of Expedited Service – Using information from the case record, 

enter the appropriate code for the household’s entitlement to expedited 

service at the most recent certification in effect at the time of the sample 

month: 

1 - Entitled to expedited service and received benefits within the Federal 

timeframe. 

2 - Entitled to expedited service but did not receive benefits within the Federal 

timeframe.

3 - Not entitled to expedited service.

27. Authorized Representative Used at Application - Enter the 

appropriate code using information from the case record. An authorized 

representative is a responsible adult designated by the household, in writing, to 

apply for benefits on behalf of the household. Did an authorized 

representative make application for the household? 

1 - Yes

2 - No 

28. Categorical Eligibility Status – Was the household categorically eligible for 

benefits based on the final QC determination? 

1 –Yes 

2 – No 

29. Reporting Requirement - Select the code that describes the reporting 

system used to certify the household. If the household was certified under sixmonth reporting enter code “6”, simplified reporting (also called six month 

reporting or semiannual reporting), even if QC determined that the appropriate 

reporting system should have been something else. 

1 - $25 change reporting 

2 - $80 change in earned income 

3 - $100 change in earned income 

4 - Status reporting 

5 - 5-hour change in hours worked and expected to continue over a month 

6 - Simplified reporting (exceeding 130% of income poverty guidelines) 

7 - Quarterly reporting 

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FNS HANDBOOK 310 

8 - Monthly reporting 

9 - Transitional benefits (no reporting requirement) 

10 – Other 

Resources:

30. Liquid Assets – Enter the dollar value of liquid assets such as cash on hand, 

checking and savings accounts, money market accounts, stocks, bonds, income 

tax refunds using information from the final QC determination. For amounts 

greater than $99,998 enter the code 99998. When there is an indication that a 

resource type was present but that amount is unknown, enter the code 99999. 

If an approximate amount is known, enter that amount.

31. Real Property (Excluding Home) - Enter the dollar value of land and 

buildings owned, excluding the primary residence using information from the 

final QC determination. For amounts greater than $99,998 enter the code 

99998. When there is an indication that a resource type was present but that 

amount is unknown, enter the code 99999. If an approximate amount is known, 

enter that amount. 

32(a). Vehicle - Code information on up to two vehicles in items (a) and (b). Use 

information from the final QC determination. Vehicles should be entered in 

descending order based on the fair market value. 

1 - No vehicles 

2 - Vehicle exempt because used for producing income, as a home, to transport 

a physically disabled member, for long distance travel (other than 

commuting), or to carry fuel or water. 

3 - Vehicle exempt because inaccessible resource (equity value is $1,500 or 

less) 

4 – Vehicle exempt due to categorical eligibility 

5 - Vehicle excluded under State TANF standard (vehicle of non-categorically 

eligible household members only) 

6 - Vehicle is registered and is attributable to an adult household member or is 

used by a person under 18 for employment or education (subject to fair 

market value only) 

7 - Vehicle not registered (equity test only) 

8 - Vehicle is not excluded and is not included in code 6 (subject to fair market 

value or equity test, whichever is greater) 

32(b). Status 2nd Vehicle – Use the codes 2 through 8 from 32(a). 

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FNS HANDBOOK 310 

33. Countable Vehicle Assets – Record that portion of a vehicle’s value 

counted toward the household’s resource limit using information from the final 

QC determination. 

34. Other Non-liquid Assets – Enter the dollar value of non-liquid assets such as 

boats and trailers using information from the final QC determination. For 

amounts greater than $99,998 enter the code 99998. When there is an 

indication that a resource type was present but that amount is unknown, enter 

the code 99999. If an approximate amount is known, enter that amount. 

Income:

35. Gross Countable Income - Enter the countable gross monthly income of 

the Food Stamp household before applying any deductions to the income from 

the final QC determination. Enter all countable income. Include prorated 

amounts from ineligible household members. 

36. Net Countable Income- Enter the countable net monthly income from the 

final QC determination used to compute the amount of the Food Stamp 

allotment for the sample month after application of all appropriate deductions. 

Deductions:

37. Earned Income - Enter the amount of the earned income deduction that the 

household was eligible to receive based on the final QC determination. 

38. Medical - Enter the amount of the allowable medical expenses for elderly and 

disabled household members based on the final QC determination. 

Do not record the value of the allowable medical deduction ($35). Enter those 

medical expenses in excess of $35 per month. 

For example, if a household was billed $100 for medical expenses, enter $65 

($100 minus the medical deduction of $35). 

39. Dependent Care - Enter the total dependent care deduction to which the 

household was entitled based on the final QC determination. 

40. Child Support - Enter the dollar value of the child support payment 

deduction from the final QC determination. 

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FNS HANDBOOK 310 

41. Shelter - Enter the dollar value of the shelter deduction from the final QC 

determination. 

42. Homeless - Select the code that applies to this household based on the final 

QC determination. 

1 - Not homeless 

2 - Homeless, not receiving homeless shelter allowance 

3 - Homeless, receiving homeless shelter allowance 

Additional Information on Shelter Costs: 

43. Rent/Mortgage - Enter the amount the household was billed for 

rent/mortgage from the final QC determination. Include taxes, insurance, 

condo fees and homeowner association fees. 

44. Use of SUA – This entry has two boxes that are used to collect different 

information about the SUA. Do not complete 44(b) if 44(a) is coded 1. 

a. Usage - Enter the code which describes usage and entitlement to the SUA 

based on the final QC determination: 

1 - No utilities and no LIHEAA 

2 - Uses actual expenses 

3 - Uses higher standard based on LIHEAA 

4 - Uses higher standard and does not receive LIHEAA 

5 - Uses lower standard 

6 – Uses phone only standard 

7 – Uses individual standards 

9 - Other 

LIHEAA is the Low Income Home Energy Assistance Act, your State program 

may have another name such as Home Energy Assistance Program (HEAP) 

Higher Standard is an SUA based upon receipt of heating or cooling and 

includes all utilities 

Lower Standard is an SUA based upon all utilities but is for households who 

do not incur heating or cooling or receive LIHEAA. 

b. Proration - Select the code that identifies whether the SUA amount was 

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FNS HANDBOOK 310 

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prorated (e.g. prorated among non-household members of the residence). 

1 - Not prorated 

2 – Prorated 

45. Utilities (SUA or Actual) - This item should be completed for all cases. For 

households using actual utility expenses, enter the actual amount that was 

billed for all utilities (gas, water, phone, electric, etc.) based on the final QC 

determination. For households using an SUA, enter the amount of the SUA that 

was used, based on the final QC determination. Enter $0 if there were no 

utility expenses. 

 

SECTION 4 – INFORMATION ON EACH HOUSEHOLD MEMBER 

Complete the following section, using information from the final QC determination, 

for eligible food stamp households. Enter information on each household member, 

including individuals whose income and resources were considered in establishing food 

stamp benefit level. If the number of household members exceeds the number of 

lines available, attach an additional page to allow for coding detailed person-level 

information on all food stamp household members. You may currently enter 

information on up to 16 individuals on the automated system, but you may record 

information on all household members using the paper form. If the entire household 

is ineligible do not enter any information in this section. 

For disqualified or ineligible food stamp household members, items 46, 47, 48, and 

58, if applicable, (person number, food stamp program participation, relationship to 

head of household, and dependent care costs) of this section must be completed. 

Information on income for these members must also be recorded in Section 5. For 

disqualified or ineligible members, the rest of the information in this section should 

be completed based on information known through observation or available in the 

case record. 

NOTE: Do not enter zeros in items 48, 50-52, and 54-58 (Relationship to Head of 

Household, Sex, Race, Citizenship Status, Employment Status, Work Registration, 

Employment and Training Program Status, ABAWD Status, and Dependent Care Cost). 
FNS HANDBOOK 310 

46. Person Number - Assign and enter a number for each food stamp household 

member (1, 2, etc.). This will include ineligible food stamp household 

members whose resources and income are considered in the eligibility 

determination. Use this assigned number to identify household members with 

income in Section 5. Code the head of the household as person 1. 

47. Food Stamp Program Participation – For each person indicate his/her 

eligibility or ineligibility for participation in the FSP (i.e., either eligible for 

participation and entitled to benefits or a reason for ineligibility. For ineligible 

non-citizens, whether they participate in a State funded FSP).

1 – Eligible member of Food Stamp case under review and entitled to receive 

benefits 

2 - Reserved

3 - Reserved

4 - Member is an ineligible non-citizen and is not participating in a State funded 

FSP 

5 - Member not paying/cooperating with Child Support agency 

6 - Member is an ineligible striker 

7 - Member is an ineligible student 

8 - Member is disqualified for program violation 

9 - Member is ineligible to participate due to disqualification for failure to 

meet work requirements (work registration, E&T, acceptance of 

employment, employment status/job availability, voluntary quit/reducing 

work effort, workfare/comparable and workfare). 

10 - ABAWD time limit exhausted and the ABAWD is ineligible to participate due 

to failure to meet ABAWD work requirements, to work at least 20 hours per 

week, to participate at least 20 hours per week in qualifying educational 

training activities or to participate in workfare. 

11 - Fleeing felon or parole and probation violator 

12 – Reserved 

13 - Convicted drug felon 

14 - Social Security Number disqualified 

15 - SSI recipient in California. 

16 - Prisoner in detention center 

17 - Foster care 

18 - Member is an ineligible non-citizen and is participating in a State-funded 

Food Stamp Program. 

99 - Unknown 

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FNS HANDBOOK 310 

48. Relationship to Head of Household - Enter the code that shows the 

relationship (including by marriage) of the person indicated in item 46 (person 

number) to the head of the household, as defined by the Food Stamp Program 

from final QC determination. 

 1 - Head of household 

 2 - Spouse 

 3 - Parent 

 4 - Daughter, stepdaughter, son, stepson 

 5 - Other related person (brother, sister, niece, nephew, grandchild, greatgrandchild, cousin) 

 6 – Foster Child 

 7 - Unrelated person 

49. Age - Enter the age (in years) from the final QC determination, of each 

household member. For children less than 1 year old, enter 0. For persons 98 

and older enter 98. If exact age is unknown, enter the best available 

information. 

50. Sex - Enter the appropriate code: 

1 - Male 

2 – Female 

51. Race - Enter the race of each person living in the household. 

1 - White, not of Hispanic origin 

2 - Black, not of Hispanic origin 

3 - Hispanic 

4 - Asian or Pacific Islander (Oriental) 

5 - American Indian or Alaskan Native 

9 - Unknown 

52. Citizenship Status - Enter the appropriate code. 

 1 - U.S. born citizen 

 2 - Naturalized Citizen 

 3 - Legal permanent resident with 40 quarters, military service, five years 

legal United States residency, disability, or under 18 years of age. 

4 – Reserved 

 5 – Person admitted as refugee, granted asylum or given a stay of deportation.

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FNS HANDBOOK 310 

 6 - Other eligible non-citizen 

 7 - Non-citizen legally in US who does not meet one of the above codes and 

who is not receiving food stamps but whose income and resources must be 

considered in determining benefits 

 8 – Other ineligible legal non-citizen (e.g. visitor, tourist, student, diplomat) 

 9 - Undocumented non-citizen 

10 - Non-citizen, status unknown 

99 – Unknown 

53. Educational Level - Enter highest educational level completed for each 

member of the household from the final QC determination: 

0 - None 

 1 - Grade 1 

 2 - Grade 2 

3 - Grade 3 

4 - Grade 4 

5 - Grade 5 

6 - Grade 6 

7 - Grade 7 

8 - Grade 8 

9 - Grade 9 

10 - Grade 10 

11 - Grade 11 

12 - High school diploma or GED* 

13 - Post secondary education (e.g. technical education or some college) 

14 - College graduate or post-graduate degree 

99 - Unknown 

* If member attended grade 12 but did not graduate, use code 11. 

54. Employment - Enter information on the current employment status of all 

persons based on the final QC determination.

First box: Status 

1 – Not in labor force and not looking for work 

2 – Unemployed and looking for work 

3 – Active duty military 

4 – Migrant farm laborer 

5 – Non-migrant farm laborer 

6 – Self-employed, farming 

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FNS HANDBOOK 310 

7 - Self-employed, non-farming 

8 – Employed by other 

Second box: Hours Worked 

1 – Not employed 

2 – 1-19 hours per week 

3 – 20-29 hours per week 

4 – 30-39 hours per week 

5 – 40+ hours per week 

55. Food Stamp Program Work Registration - Enter information on the 

current work registration status of all persons as known by the State agency 

based on the final QC determination: 

1 - Federal exemption 

3 - Work registrant, not employment and training (E&T) participant 

4 - Work registrant, voluntary E&T participant 

5 - Work registrant, mandatory E&T participant 

56. Food Stamp Program (FSP) Employment and Training (E&T) 

Program Status - Enter information on the current E&T program status of all 

household members as known by the State agency based on the final QC 

determination: 

0 – Not participating in E&T 

1 – Participating in non-FSP E&T (such as TANF) 

2 – FSP Job search or job search training 

3 – FSP E&T workfare or work experience 

4 – FSP E&T Work supplementation 

5 – FSP E&T education leading to HS diploma or GED 

6 – FSP E&T post secondary education leading to degree or certificate 

7 – FSP E&T remedial education (including adult education and English lessons 

not leading to a degree) 

8 – FSP E&T vocational training 

9 - Other 

57. ABAWD Status - A household member must be age 18 through 49 to be an 

Able Bodied Adult Without Dependents (ABAWD). Enter one of the following 

codes from the final QC determination: 

1 - Not an ABAWD 

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FNS HANDBOOK 310 

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2 - ABAWD in a waived area 

3 - Exempt based on 15 percent option 

4 - ABAWD meeting work requirements 

5 - ABAWD in 1st 3 months 

6 - ABAWD in 2nd 3 months 

7 - ABAWD who has exhausted time limited benefits 

58. Dependent Care Cost - For each child/adult with associated dependent care 

expenses enter the amount of the expense that the household is responsible for 

paying using information from the final QC determination. If the cost for more 

than one child/adult is combined, divide the cost evenly amongst each 

child/adult receiving care. 

SECTION 5 – INCOME IDENTIFIED BY HOUSEHOLD MEMBER 

This section collects detailed information on known income sources, by type and 

amount, based on the final QC determination. Information can be collected on up to 

four sources of income for up to ten household members. If income exists but is not 

attached to any specific member, assign the income to the payee. Enter all income 

amounts rounded to the nearest dollar. 

59. Person Number – Enter the person number from Section 4 for each food 

stamp household member with income based on information from the final QC 

determination. (This number is assigned in Section 4, item 46). 

Source 1

60. Income Type - (This instruction applies to items 60, 62, 64, and 66). Based on 

the final QC determination, identify the type of countable income as listed 

below for each type of income received by a food stamp household member.

Earned Income (Not Subsidized) 

11 - Wages and salaries 

12 - Self-employment 

14 - Other earned income 

Subsidized Earned Income 

16 - Wage supplementation - enter earnings that are above cash assistance 

and/or food stamp amount 
FNS HANDBOOK 310 

Unearned Income 

15 - Energy Assistance income 

31 - RSDI benefits 

32 - Veterans benefits 

33 - SSI 

34 - Unemployment Compensation 

35 - Workmen’s Compensation 

36 - Other government benefits 

37 – Foster care income 

42 - Contribution 

43 - Deemed income 

44 - State general assistance or other State-funded welfare (don’t include TANF 

here) 

45 - Educational grants/scholarships/loans 

46 – Other 

47 - TANF 

48 - State only diversion payment 

49 – Interest income 

50 - Court ordered child support payments received from absent parent or 

responsible person 

99 - Unknown 

61. Amount - (This instruction applies to Items 61, 63, 65, and 67.) Enter the 

gross amount of countable income received by the food stamp household 

member for the month from the final QC determination. 

Source 2

62. Income Type - Second type of income. See item 60. 

63. Amount - Second amount of income. See item 61. 

Source 3

64. Income Type - Third type of income. See item 60. 

65. Amount - Third amount of income. See item 61. 

Source 4

66. Income Type - Fourth type of income. See item 60. 

67. Amount - Fourth amount of income. See item 61. 

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FNS HANDBOOK 310 

C - 39 

SECTION 6 - RESERVED CODING

68. Timeliness of Application Processing (Expedited and 30 Day 

Requirement - This information is being collected for possible bonus 

payments. We want to delineate if there was timeliness of application 

processing for cases when a new application was filled in the current Federal 

Fiscal Year. 

Timeliness of application processing is measured for cases that filed an 

application in the current Fiscal Year. If there is more than one application in 

the current Fiscal Year, measure timeliness for the most recent application for 

or prior to the sample month. 

We are measuring the timeliness of application processing according to Federal

processing standards. A household entitled to expedited service must be 

provided the opportunity to participate within 7 days. Households not entitled 

to expedited service must be provided the opportunity to participate by the 

30th day following the date of application. A case that meets the applicable 

Federal processing standard is coded 1 – timely. A case that fails to meet the 

applicable Federal processing standard is coded 2 – not timely. 

If a new application was not filed in the review year, the case will not be used 

in determining the bonus payment. The case should be coded 3 – Other. Also, 

use Code 3, for cases that have been properly pended for incomplete 

verification. Improperly pended cases should be coded 2 –not timely. 

If after a thorough review of case circumstances and records there is no 

documentation, application or other information to determine timeliness, the 

case should be coded 3. For cases with this problem, every effort should be 

made to determine the timeliness of the case before deciding to use the Other 

code. 

 

 Please indicate the appropriate code: 

1 – Timely 

2 – Not timely 

3 - Other 
FNS HANDBOOK 310 

C - 40 

69. Handled as an Earned Income Case - A household was handled as an 

earned income household when the State knew about earned income prior to 

the sample month and acted on this information or made decisions about the 

handling of this income before the sample month. A household was not 

handled as an earners household when the household had no earned income at 

certification or anytime after certification or the State was unaware that there 

was earned income or failed to act on this information within the appropriate 

timeframe before the sample month. Enter the appropriate code: 

1 – Household was handled as an earned income case 

2 – Household was not handled as an earned income case 

70. Handled as Case With Non-Citizens - A household was handled as a noncitizen case when the State knew about the existence of non-citizens 

associated with the household before the sample month and made decisions 

about the inclusion or exclusion of these individuals. This includes Federal and 

State funded food stamp recipients as well as those non-citizens ineligible for 

Federal or State funded food stamps. A household was not handled as a noncitizens case when the household consists entirely of citizens or the State did 

not know prior to the sample month or act on the knowledge that there were 

non-citizens associated with the case. 

1 - Household includes eligible or ineligible non-citizens known to the State 

2 – Household does not include eligible or ineligible non-citizens that were 

known to the State. 

71. – 76. – Reserved 

SECTION 7 – OPTIONAL FOR STATE USE 

There are 4 lines of spaces available to the State to code additional information.
FNS HANDBOOK 310 

APPENDIX D 

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FNS HANDBOOK 310 

APPENDIX D 

INSTRUCTIONS FOR COMPLETING FORM FNS-245, 

QUALITY CONTROL NEGATIVE CASE ACTION REVIEW SCHEDULE 

GENERAL INSTRUCTIONS 

The Negative Case Action Review Schedule was developed to serve as the data entry 

and review form for negative cases. It is to be used to document all negative case 

reviews and as a worksheet for documenting the review. The schedule consists of five 

sections as follows: 

I - Case Management Information 

II - Identifying Information 

III - Analysis of Review Activity 

IV - Description of Variances 

V - Explanation of Review Findings 

SECTION I - CASE MANAGEMENT INFORMATION 

This section provides case management information and client identity. 

1. Case Name - Enter the name of the applicant or recipient whose 

participation was denied, suspended or terminated. 

2. Telephone Number - Enter the telephone number of the applicant or 

recipient. 

3. Mailing Address - Enter the mailing address of the applicant or recipient. 

4. Actual Address/Directions to Locate - Enter the actual address at which 

the applicant or recipient resides if different from the mailing address. Enter 

any necessary directions to locate the person’s home. 

5. Date Assigned - Enter the date (month, day, year) the case was assigned to 

the QC reviewer. 

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FNS HANDBOOK 310 

6. Date Completed - Enter the date (month, day, year) the review was 

completed. The reviewer should sign to indicate completion of the review. 

7. Date Cleared - Enter the date (month, day, year) the supervisor cleared the 

review. The supervisor should sign to indicate completeness of the work and 

clearance to transmit the information into the Food Stamp Quality Control 

System. 

SECTION II - IDENTIFYING INFORMATION 

This section provides identifying information related to the negative case action under 

review. For cases that are completed, fill out items A through I as applicable. For 

cases that are not subject to review or incomplete, fill out items A through D and E if 

appropriate. 

ITEM A. Review Number - Enter the number assigned to the negative action 

under review. 

ITEM B. Case Number - Enter the case number assigned by the State agency. 

ITEM C. State and Local Agency Code: 

• State Agency Code - In the first two blocks, enter your two-digit 

State code. These are the codes used by the National Institute of 

Standards and Technology. 

• Local Agency Code - In the last three blocks, enter the same threedigit code that the State agency uses to code local agencies for the 

QC review of active cases. 

ITEM D. Sample Month and Year - Enter the month and year for which the 

negative action was selected for review. The sample month for a negative 

action is based upon how the case was selected for review. There are 

three types of actions that are being reviewed (denials, terminations and 

suspensions). For each of these types of cases, State agencies may sample 

by the decision date or the effective date. Each State agency has been 

approved by FNS to sample these cases in a consistent way via the 

sampling plan. For each type of case, the sampling will be done the same 

way, either by decision date or by effective date. State agencies must 

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FNS HANDBOOK 310 

identify for the reviewer how cases were sampled so that the appropriate 

sample month and year are entered here. 

ITEM E. Stratum - Enter the two-digit stratum code. Stratum codes are assigned 

by the State agency when the sample is stratified and must be entered 

here if they are used. If stratum codes are not used by the State, other 

identifying information may be entered here at the State’s option. 

ITEM F. Decision Date - Enter the date (month, day, year) of the State agency's 

decision to deny the application, terminate benefits, or suspend 

participation. This can be the date the notice is sent or the computer 

input document is completed or processed. 

ITEM G. Effective Date - Enter the date (month, day, year) the agency's action to 

deny, terminate or suspend became effective. This is the date that the 

negative action is effective. For application, this is the date of the 

application; for terminations it is the first of the month that the client will 

no longer receive food stamp benefits; for suspension, it is the first of the 

month that the case is suspended. 

ITEM H. Action Type - Indicate the type of action by entering one of the following 

codes: 

1 - Application Denied 

2 - Terminated Case: Enter this code for cases in which the household's 

certification was terminated before the end of the certification period. 

3 - Suspended Case: Enter this code for cases in which the household’s 

participation was suspended. 

ITEM I. Case Classification - Enter the appropriate code as follows: 

1 – Included in error rate calculation.

2 – Excluded from error rate calculation - processed by SSA worker. 

3 – Excluded from error rate calculation, as designated by FNS (e.g. demo 

project, simplified FSP).

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FNS HANDBOOK 310 

SECTION III - ANALYSIS OF REVIEW ACTIVITY 

This section provides the analysis of the review of the action to deny an application, 

terminate benefits or suspend the case. For completed cases, fill in items J through N 

as appropriate. For cases that are not subject to review or incomplete fill out item N 

only. 

ITEM J. Notice Requirement - Enter the appropriate code as follows: 

1 - Compliance. Eligibility worker complied with the notice requirements 

and applicable timeframes, or there was no requirement to issue a 

notice. 

2 - Non-compliance. Eligibility worker failed to send a required notice to 

the applicant/recipient, or did not comply with applicable timeframes. 

ITEM K. Recorded Reason for Action - Enter the appropriate code to indicate 

the reason for the action as reflected by the case record. 

 1 - Resident of an institution not authorized by FNS 

 2 - Outside of project area or State 

 3 - Ineligible striker 

 4 - Ineligible non-citizen 

 5 - Ineligible student 

 6 - Ineligible boarder 

 7 - Missed scheduled interview(s) 

 8 - Failed to provide verification 

 9 - Refusal to cooperate 

10 - Refusal to supply SSN 

11 - Gross monthly income exceeds maximum allowance 

12 - Net Monthly income exceeds maximum allowance 

13 - Exceeds resource standard 

14 - Transfer of resources 

15 - Failure to comply, without good cause, with work registration/job 

search requirements 

16 - Voluntary quit 

17 - Failure to submit/complete report 

18 - Voluntary withdrawal after certification 

19 - Termination/denial due to TANF termination/denial 

20 - Intentional program violation 

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FNS HANDBOOK 310 

21 - Termination/denial due to program disqualification 

22 - Termination/denial of household of able-bodied adult(s) whose timelimited period of FSP eligibility has expired. 

23 - Failure to comply, without good cause, with FSP work requirements. 

24 - Eligible for zero benefits 

25 - Failure to access EBT benefits 

26 - Loss of contact with household 

27 - Applicant/household deceased 

28 - Not eligible for separate household status 

29 - Not eligible due to status as fleeing felon, parole violation, drug 

conviction etc. 

30 - Reason for denial/termination/suspension not documented 

99 - Other 

 0 - Not applicable (For use with Item M(b) only.) 

ITEM L. Validity of Recorded Reason - This item indicates the reviewer's 

evaluation of whether the recorded reason for the agency's action was in 

accordance with policy and supported by the information in the case record 

without regard to the compliance or non-compliance with the notice 

requirements. 

1 - Valid. Enter this code if the reviewer has determined from information 

in the case record that the reason given for the agency's action was 

valid. If Code 1 is entered, skip to Item N. 

2 - Invalid. Enter this code if the reviewer has determined from 

information in the case record that the reason given for the agency's 

action was invalid. Also enter Code 2 if the reviewer is unable to 

determine from information in the case record whether the initial 

reason was valid. 

ITEM M. Result of Expanded Review - Go to Item N if an expanded review was 

not done. If Item L is Code 2 and an expanded review was done enter the 

appropriate code as follows: 

1 - Valid based on recorded reason for negative action. The reviewer has 

determined from an action beyond the initial review that the recorded 

reason given for the agency’s action was correct. Also enter “00” (not 

applicable) in Item M(b). 

2 - Valid based on reason other than the recorded reason for negative 

action. The reviewer has determined from an action beyond the initial 

review that the agency’s action was correct for a reason other than that 

given by the agency. Also enter the appropriate code in Item M(b) for 

the different reason using a code from Item K. 

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FNS HANDBOOK 310 

3 - Invalid. The reviewer has determined from an action beyond the initial 

review that the agency’s action was invalid. Enter “00” (not 

applicable) in Item M(b).

ITEM N. Disposition of Review - Enter the appropriate code as follows: 

1 - Review completed 

2 - Not subject to Review/Listed in Error. Cases that are not subject to 

review are defined in Chapter 13 of the FNS Handbook 310. If Code 2 is 

entered in this item, no further entries are required on this schedule. 

3 – Incomplete/Review Not Processed. Enter this code if the reviewer was 

unable to locate the case record or was unable to process the case. 

Prior FNS approval is necessary for this code to be used for a review not 

processed in time to meet the reporting time frames. If Code 3 is 

entered in this item, no further entries are required on this schedule. 

4 - Case deselected/correction for oversampling. 

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FNS HANDBOOK 310 

SECTION IV - DESCRIPTION OF VARIANCES

This section provides for the description of variances identified in the review. Items 

O and P must be completed whenever the final determination for Item L is invalid 

(Code 2) and item M is not completed or whenever the final determination in item M 

is invalid (Code 3). At their option, States may complete items O and P in other 

situations. 

Items O and P are associated. The reviewer can list up to 3 variances. The first item 

listed in the O Element Code is associated with the first item listed in the P Nature 

Code. Likewise, O2 is associated with P2 and O3 is associated with P3. 

ITEM O. Element - Enter the appropriate element number of the review for each 

variance identified. 

ITEM P. Nature Codes - Enter the appropriate code for the nature of each 

variance. 

The following provides the element and nature codes to be used in items O 

and P. 

These nature codes may be used in any element: 

• Nature code (98) - Transcription or computation errors. 

• Nature code (99) – Other. Use this nature code in the following 

situations: 

a) If no specific nature code is listed under an element, 

b) If the nature of the error is clearly understood by looking at the 

agency/client code recorded for the error, or 

c) If none of the listed nature codes under an element apply to the error 

being recorded. 

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FNS HANDBOOK 310 

BASIC PROGRAM REQUIREMENTS – (100) 

3⁄4 Element 111 – Student Status 

Nature codes: 

1 - Eligible person(s) excluded 

2 - Ineligible person(s) included 

3⁄4 Element 130 - Citizenship and Non-Citizen Status 

Nature codes: 

1 - Eligible person(s) excluded 

2 - Ineligible person(s) included 

3⁄4 Element 140 - Residency

Nature codes: 

98 - Transcription or computation errors 

99 - Other 

3⁄4 Element 150 - Household Composition

Note:

Variances should be coded under this Element if a person or persons are 

unreported or incorrectly reported, unprocessed or incorrectly processed, and 

these persons also have income, resources or deductible expenses that must be 

considered in the error determination. 

For example: the discovery of an unprocessed 62 year old with earned income, a 

bank account, and medical expenses would be recorded under Element 150, not 

Elements 211, 311, and 365. 

Variances should not be coded under this Element for persons with characteristics 

that are specifically addressed under other 100 Series Elements. 

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FNS HANDBOOK 310 

For example: the discovery of an eligible non-citizen in the household who was 

improperly excluded would be coded under Element 130, not under Element 150. 

Nature codes: 

 6 - Entitled to separate status 

 7 - Eligible person(s) with no income, resources, or deductible expenses 

excluded 

 8 - Eligible person(s) with income excluded 

 9 - Eligible person(s) with resources excluded 

10 - Eligible person(s) with deductible expenses excluded 

11 - New born infant improperly excluded 

3⁄4 Element 151 - Recipient Disqualification 

Nature codes: 

 2 - Ineligible person(s) included 

18 - Eligible person(s) disqualified 

3⁄4 Element 160 – Employment & Training Programs

Nature codes: 

18 - Eligible person(s) disqualified 

3⁄4 Element 161 - Time-limited Participation

Nature code: 

18 - Eligible person(s) disqualified 

3⁄4 Element 162 - Work Registration Requirements

Nature codes: 

1 - Eligible person(s) excluded 

2 - Ineligible person(s) included 

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FNS HANDBOOK 310 

3⁄4 Element 163 - Voluntary Quit/Reduced Work Effort 

Nature codes: 

16 - Head of household did not voluntarily quit 

17 - Voluntary quit of non-head of household 

3⁄4 Element 164 - Workfare and Comparable Workfare 

Nature codes: 

18 - Eligible person(s) disqualified 

3⁄4 Element 165 - Employment Status/Job Availability 

Nature codes: 

18 - Eligible person(s) disqualified 

3⁄4 Element 166 – Acceptance of Employment

Nature codes: 

18 - Eligible person(s) disqualified 

3⁄4 Element 170 – Social Security Number 

Nature codes: 

18 - Eligible person(s) disqualified 

20 - Good cause for failure/refusal 

21 - Social Security Numbers provided 

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FNS HANDBOOK 310 

RESOURCES - (200)

Liquid Resources

3⁄4 Element 211 - Bank Accounts or Cash on Hand

Nature codes: 

24 - Resource should have been excluded 

3⁄4 Element 212 - Nonrecurring Lump-sum Payment

Nature codes: 

24 - Resource should have been excluded 

3⁄4 Element 213 - Other Liquid Assets 

Nature codes: 

24 - Resource should have been excluded 

Non-Liquid Resources

3⁄4 Element 221 - Real Property 

Nature codes: 

24 - Resource should have been excluded 

27 - Used for self-employment 

28 - Fair market value incorrect 

29 - Equity value incorrect 

3⁄4 Element 222 - Vehicles

Nature codes: 

24 - Resource should have been excluded 

27 - Used for self-employment 

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FNS HANDBOOK 310 

28 - Fair market value incorrect 

29 - Equity value incorrect 

3⁄4 Element 224 - Other Non-Liquid Resources 

Nature codes: 

24 - Resource should have been excluded 

27 - Used for self-employment 

28 - Fair market value incorrect 

29 - Equity value incorrect 

3⁄4 Element 225 - Combined Resources 

Nature codes: 

22 - Did not transfer resources 

23 - Did not exceed limit 

25 - Incorrectly applied resources of non-citizen sponsor 

26 - Included resources of a non-household member 

30 – Does not exceed prescribed limit 

31 - Incorrect limit applied 

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FNS HANDBOOK 310 

INCOME (300)

Earned Income

3⁄4 Element 311 - Wages and Salaries

Nature codes: 

32 - Failed to consider or incorrectly considered income of an ineligible 

member 

33 - Rounding used/not used or incorrectly applied 

34 - Income from known/processed source included that should not have been 

35 - Household unemployed 

36 - Conversion to monthly amount not used or incorrectly applied 

37 - Averaging not used or incorrectly applied 

38 - MRRB household not temporarily over the limit 

39 - Employment status changed from unemployed to employed 

41 - Change only in amount of earnings 

42 - Failed to consider/anticipate month with extra pay date 

3⁄4 Element 312 - Self-Employment

Nature codes: 

32 - Failed to consider or incorrectly considered income of an ineligible 

member

33 - Rounding used/not used or incorrectly applied 

34 - Income from known/processed source included that should not have been 

35 - Household unemployed 

36 - Conversion to monthly amount not used or incorrectly applied 

37 - Averaging not used or incorrectly applied 

38 - MRRB household not temporarily over the limit 

39 - Employment status changed from unemployed to employed 

41 - Change only in amount of earnings 

42 - Failed to consider/anticipate month with extra pay date 

3⁄4 Element 313 - Other Earned Income 

Nature codes: 

32 - Failed to consider or incorrectly considered income of an ineligible 

member 

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FNS HANDBOOK 310 

33 - Rounding used/not used or incorrectly applied 

34 - Income from known/processed source included that should not have been 

35 - Household unemployed 

36 - Conversion to monthly amount not used or incorrectly applied 

37 - Averaging not used or incorrectly applied 

38 - MRRB household not temporarily over the limit 

41 - Change only in amount of earnings 

Deductions

3⁄4 Element 321 - Earned Income Deductions

Nature codes: 

43 - Deduction that should have been included was not 

3⁄4 Element 323 - Dependent Care Deduction 

Nature codes: 

43 - Deduction that should have been included was not 

Unearned Income

3⁄4 Element 331 - RSDI Benefits

Nature codes: 

34 - Income from known/processed source included that should not have been 

3⁄4 Element 332 - Veterans Benefits

Nature codes: 

34 - Income from known/processed source included that should not have been 

3⁄4 Element 333 - SSI and/or State SSI Supplement

Nature codes: 

34 - Income from known/processed source included that should not have been 

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FNS HANDBOOK 310 

3⁄4 Element 334 - Unemployment Compensation

Nature codes: 

34 - Income from known/processed source included that should not have been 

3⁄4 Element 335 - Worker’s Compensation

Nature codes: 

34 - Income from known/processed source included that should not have been 

3⁄4 Element 336 - Other Government Benefits

Nature codes: 

34 - Income from known/processed source included that should not have been 

3⁄4 Element 342 - Contributions 

Errors in Child Support Payments should not be recorded in this Element. See 

Element 350. 

Nature codes: 

34 - Income from known/processed source included that should not have been 

3⁄4 Element 343 - Deemed Income

Nature codes: 

34 - Income from known/processed source included that should not have been 

3⁄4 Element 344 - TANF, PA, or GA 

Nature codes: 

34 - Income from known/processed source included that should not have been 

3⁄4 Element 345 - Educational Grants/Scholarships/Loans

Nature codes: 

34 - Income from known/processed source included that should not have been 

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FNS HANDBOOK 310 

3⁄4 Element 346 - Other Unearned Income

Nature codes: 

34 - Income from known/processed source included that should not have been 

3⁄4 Element 350 - Child Support Payments Received from Absent Parent

Nature codes: 

 34 - Income from known/processed source included that should not have been 

111 - Child support payment(s) not considered or incorrectly applied for initial 

month(s)of eligibility 

112 - Retained child support payment(s) not considered or incorrectly applied 

127 - Pass through not considered or incorrectly applied 

Other Deductions

3⁄4 Element 361 - Standard Deduction

Nature codes: 

43 - Deduction that should have been included was not 

3⁄4 Element 363 - Shelter Deduction

Nature codes: 

43 - Deduction that should have been included was not 

51 - Incorrect amount used resulting from a change in residence 

53 - Incorrectly prorated 

3⁄4 Element 364 - Standard Utility Allowance

Nature codes: 

43 - Deduction that should have been included was not 

50 - Incorrect standard used (Not as a result of a change in household size or 

move) 

51 - Incorrect amount used resulting from a change in residence 

52 - Incorrect standard used resulting from a change in household size 

53 - Incorrectly prorated 

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FNS HANDBOOK 310 

3⁄4 Element 365 - Medical Deductions

Nature codes: 

43 - Deduction that should have been included was not 

3⁄4 Element 366 - Child Support Payment Deduction

Nature codes: 

43 - Deduction that should have been included was not 

3⁄4 Element 371 - Combined Gross Income

Nature codes: 

30 – Does not exceed prescribed limit 

31 – Incorrect limit applied 

3⁄4 Element 372 - Combined Net Income

Nature codes: 

30 – Does not exceed prescribed limit 

31 - Incorrect limit applied 

Other

3⁄4 Element 412 – Budgeting System

Nature codes: 

63 – Deductions excluded that should not have been 

64 - Household improperly participating under retrospective budgeting 

65 - Household improperly participating under prospective budgeting 

3⁄4 Element 413 - Application

Nature code: 

66 – Improper denial within 30-day period for missing interview(s) 

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FNS HANDBOOK 310 

3⁄4 Element 414 – Joint TANF/FS Processing and Reporting

Nature codes: 

67 - Improper termination/denial/suspension when TANF was 

terminated/denied 

68 - Benefits improperly terminated due to non-submission of monthly report 

3⁄4 Element 415 - Verification

Nature code: 

69 - Improper denial prior to end of timeframe for providing verification 

80 - No application or case record information to support 

denial/termination/suspension 

3⁄4 Element 416 – Action Type

Nature codes: 

70 - Improper denial or termination when the case should have been suspended 

71 - Improper suspension when the case should have been denied or terminated 

72 - Improper termination or suspension for failure to meet reporting 

requirement 

3⁄4 Element 511 - Other

Nature code: 

99 - This code is to be used in situations not covered by the other existing 

element codes. 

3⁄4 Element 520 - Arithmetic Computation

Nature codes: 

61 - Benefit/allotment/eligibility incorrectly computed 

62 - Incorrect use of allotment tables 

3⁄4 Element 530 – Transitional Benefits

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FNS HANDBOOK 310 

Nature codes: 

75 - Eligible for transitional benefits 

RESERVED (FOR FEDERAL USE ONLY) 

There is one line of spaces reserved for future federal use. 

OPTIONAL (FOR STATE SYSTEMS ONLY)

There is one line of spaces available for the State to code information for which they 

wish to capture additional data. 

D - 21 
FNS HANDBOOK 310 

D - 22 

SECTION V - EXPLANATION OF REVIEW FINDINGS 

This section of the form will be used to document the results of the review. The 

reviewer need only record information used to determine the validity of the reason 

given for action and, if necessary, information on the status of the case as of the 

review date. The reviewer may have to simply document a single element of 

eligibility or all elements, depending upon the circumstances of each case. 

Documentation must be sufficient to support the reviewer’s decision on the status of 

the case and the identification of any variances. When the reviewer determines that 

the case record alone does not prove ineligibility, the reviewer may choose to expand 

the review beyond the case review to explore other reasons that might make the 

household ineligible. This section must also be used to document the results of the 

optional expanded review. 
FNS HANDBOOK 310 

APPENDIX E 

INTERVIEWING GUIDE FOR FOOD STAMP QUALITY 

CONTROL 

Interviewing plays a vital role in communication for the quality control 

reviewer. Skillful interviewing is a means of obtaining accurate, reliable 

information from food stamp recipients and collateral sources. While it is true 

that a review obtains some information through correspondence, interviews 

with recipients and collateral contact consume a considerable portion of the 

reviewer’s time. Since interviews involve this much time, making effective use 

of them to obtain accurate and reliable information is an important aspect of 

the reviewer’s job. 

Interviewing techniques presented here cannot of themselves make a QC 

reviewer a skilled interviewer. Each person’s own personality and experience 

has much to do with how the techniques learned are applied to the varied 

interview situations. However, techniques can provide a basis of knowledge to 

use in a variety of circumstances. This can help reduce anxiety and free the 

reviewer to be more responsive to the interview situation. 

The Nature of Interviewing

An interview differs from a conversation in that it has a clearly defined purpose 

and is directed by the interviewer to fulfill objectives related to the purpose. 

The QC reviewer will face a variety of interviewing situations with recipients, 

businesses, banks, governmental agencies, or other professionals and neighbors 

of the recipients. Interviews with the recipient are usually conducted in the 

residence, but some may take place in offices or over the telephone. 

Regardless of where or with whom, the purpose of an interview is fact-finding, 

and there is a need for good rapport between the interviewer and the 

recipient. 

General Rules for Effective Interviews 

• The reviewer must listen to the other person. 

• The reviewer must create a feeling of trust and confidence with the 

recipient. Fairness and honesty must exist. 

• The recipient must be put at ease. Some “small talk” might help. 

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FNS HANDBOOK 310 

• The reason for the interview must be clear in the minds of both 

persons. 

• Words and phrases used must have a common meaning for both 

persons. 

• The reviewer must give undivided attention to the recipient. As far as 

possible, there should be no interruptions from the telephone or any 

other source. 

Introducing One’s Self 

The introductory statement lays the groundwork for what may be a successful 

interview or one that only elicits “pat” answers. It may even result in a 

complete turn-down. If the interview is to be successful, psychological 

obstacles that may be present in the recipient’s mind must be removed, one by 

one. Introducing oneself and establishing a good relationship with the recipient 

requires an understanding of the typical questions that arise in the mind of a 

person who comes to the door and finds someone before him who claims to be 

a Government representative. 

The reviewer’s first step is to introduce herself/himself and to explain the 

reason for the visit. The fact the reviewer is a government representative is 

important. Although introductions vary somewhat, tone commonly used is “My 

name is _________. I am working for the Food Stamp Program, (State) Welfare 

Department.” The term “Food Stamp Program” and State welfare department 

are usually understood and serve to connect the reviewer with the 

Government. “I am with” or “I am working for” help to establish the reviewer 

as an ordinary working person with whom the recipient can talk. 

The second step in the introductory process is for the reviewer to show her/his 

identification card long enough for the person to read it. Often the recipient 

will give it no more than a cursory glance, but the fact that this person has 

shown an official identification will serve to allay suspicion and uncertainty. 

The reviewer’s next step is to explain the purpose of the visit and to make the 

recipient aware of the importance of the interview. This should be done 

briefly without naming the specific topics to be covered. For example: “The 

Food Stamp Program rules require a review of the households participating in 

the program. Your help is necessary to meet this requirement. I’ll need some 

basic information such as income and expenses.” 

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FNS HANDBOOK 310 

Because the results of the review depend to a large extent on the spontaneity 

of comment, it is usually necessary to leave the description in general terms. 

The reviewer thereby avoids suggesting possible answers to questions that will 

be asked. Next, the participant should be told how she/he happened to be 

chosen for the interview. This may be done somewhat as follows: "In trying to 

find out about households all over the State, we couldn’t talk to everyone, so 

we had to select a few households to be representative of the total.” 

The introduction should not be a “canned” speech recited in the same way 

each time it is used. It should be natural, conversational, and intereststimulating. The most difficult part of a good introduction, as well as of 

interviewing in general, is learning to gain the intuitive “hunches” about what 

to say to any particular participant. In general, however, introductions should 

contain the following elements: 

• Identifying oneself with the Food Stamp Program. 

• Showing the identification card. 

• Explaining the purpose of the interview and its importance. 

• Explaining how the particular household was chosen. 

Creating Rapport 

Inasmuch as the intensive type of interview seeks to attain a full and 

spontaneous discussion, a very necessary element in every interviewing 

situation is the personal relationship between the interviewer and the 

recipient. 

The impression made by the reviewer upon the recipient in the course of the 

introduction will to a considerable degree determine the rapport, i.e., the 

friendliness and trust, which will develop. The more natural the approach, the 

better. Simplicity of dress, a level of language suitable to the occasion, and a 

sincere interest in the work and in the recipient’s answers will gain acceptance 

for the reviewer as a person to whom the recipient can respond on a basis of 

common understanding. 

Sometimes the reviewer may feel that the introductory process alone has not 

established her/him firmly enough to proceed at once with the interview. The 

most common procedure in such cases is to talk about some topic in which both 

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FNS HANDBOOK 310 

persons have an interest. Discussion of the weather, the latest baseball scores, 

or the recipient’s garden, and making friends with the pet or children are some 

of the things that may help to ease the situation. A good rule in building 

rapport is to get the recipient started talking about things with which she/he is 

familiar or interested in discussing. 

Encouraging Discussion 

To be successful, an interview requires management and direction in order to 

attain the goals expected. In part, this involves taking steps to overcome 

inertia whenever this occurs and other measures to achieve a two-way 

communication process. 

Take the initiative.

The reviewer can anticipate that some recipients are at first going to be 

hesitant to discuss their household circumstances. The reviewer then 

has to help the communication process get underway by initiating 

discussion after appropriate introductory remarks and the initial 

explanation of the interview process. 

Provide support. 

Let the recipient know that you want to know what she/he is talking 

about. Encouragement, of course, comes from visual as well as oral 

feedback from the listener. The reviewer can encourage the recipient 

visually by having an expression of interest on her/his face, following the 

discourse of the recipient, etc. Verbal encouragement is achieved 

simply by making statements such as “I see”... “uh-huh”... “is that 

so?”... “Yes, I understand, go on”... Brief, interjectory statements such 

as these tend to encourage the speaker to say more. They indicate that 

the interviewer is attentive and is attaching proper importance to what 

the recipient is saying. 

Don’t be afraid of silence. 

Many people talk too much because they feel uncomfortable when 

silence prevails. However, pauses need not be embarrassing or 

awkward. Silence often draws people out. Pauses are also valuable 

after a recipient has responded too briefly to a question. Such a pause is 

often sufficient to convey the impression that the answer needs to be 

amplified. 

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FNS HANDBOOK 310 

Use neutral questions. 

Neutral questions may be used to elicit fuller responses to questions. 

“Why do you think that is so?” “I’d be interested in hearing your reason 

for that,” or “Just how do you mean?”, are examples of the type of 

questions that may be introduced in order to encourage the recipient to 

explain why. It is best to avoid a blunt “Why?” since it tends to make 

the recipient feel that she/he is being “put on the spot”. 

Repeat the question. 

Repeating the question is a useful device when the recipient seems 

unable to make up her/his mind or strays from the topic. 

Restate. 

A technique to use to encourage discussion is to restate what the 

recipient has just said. The reviewer can end with “Is that correct?”. 

Restatement has two advantages: (a) The reviewer clearly establishes in 

her/his own mind what the recipient has said, and (b) The recipient 

feels some pressure to elaborate upon any parts of the answer which 

she/he feels the reviewer doesn’t completely understand. 

Summarize. 

Summarizing what the recipient has just said is an especially useful 

device for clarifying her/his attitudes and prompting her/him to enlarge 

upon her/his statement. Summarizing all that has been said will help to 

clarify information and overall understanding. It establishes a basis for 

further discussion of problems that may have arisen. Like restatement, 

the purpose of summarizing is to validate the correctness of the 

information the reviewer has obtained. 

Asking Questions 

Since much of interviewing is based on the art of asking questions, the right 

questions must be asked in order to obtain appropriate and complete 

responses. 

Formulating the Question. 

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FNS HANDBOOK 310 

The question should be clear and specific as to the information desired. 

It should not permit an ambiguous interpretation. 

The wording of the question should be broad enough to allow a full 

response. For example, it is best to avoid questions that permit a simple 

yes or no response although there are times when such a response is 

necessary. When the response is incomplete or evasive a follow-up 

question is necessary. This can be achieved by rephrasing. Such 

statements as “I am not clear on the point you made about...,” or “Will 

you tell me more about...?”, should elicit a more precise response. 

When there is uncertainty about the meaning of the response, a helpful 

technique is to repeat the response to secure affirmation or denial. For 

example, “Did I understand you to say that...is the situation?” 

When the response is incomplete, superficial, or only hinted at, the 

reviewer should probe for more detailed information. This may be done 

by asking such questions as: “Why is that so?” “Can you tell me about 

that?” or “It seems that you are saying.... Will you give me some details 

about the situation?” “Then what?” “Is that so?” or “Tell me more.” 

Avoiding Pitfalls. 

Interviewing can involve some pitfalls related to techniques of asking 

questions. Some of the traps to avoid are: 

• When asking questions, the reviewer should not tip off the answers. 

The reviewer should give the recipient the latitude to make a 

response, e.g., do not say “You do not have any money in the bank, 

do you?” Ask instead, “What bank(s) do you use?” 

• The reviewer should avoid entrapment, unless there is some specific 

reason to suspect the recipient is being untruthful. Thus, the 

reviewer should avoid asking, “In what bank do you have your 

savings account?” unless circumstances point to the existence of a 

previously unreported bank account. 

• The reviewer should avoid remarks that can be construed as passing 

judgment on the recipient or the recipient’s responses. 

• Long, elaborate explanations by the recipient that add excessive 

detail are unnecessary. The reviewer should tactfully interrupt the 

person and go on to the next question. 

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FNS HANDBOOK 310 

Listening 

Another technique of interviewing is the art of listening. Effective listening 

requires considerable practice and involves learning new skills. 

The complexity of effective listening is evident when it is considered that the 

reviewer is involved in a number of complicated operations occurring 

simultaneously. The reviewer is actively receiving the recipient’s response 

while at the same time coordinating it with information already received, 

framing a follow-up question and trying to fulfill the overall plan for the 

interview. In addition to listening and absorbing the response, listening 

involves an evaluation of the response -- seeking to establish its’ meaning in 

relation to what has already been established. The meaning is enhanced by 

carefully noting the recipient’s tone of voice, the emphasis given, and the 

inflections in the voice. 

Non-Verbal Communication 

A counterpart of and supplement to verbal communication in the interview is 

non-verbal communication. This involves observations on both the reviewer 

and recipient about one another during the course of the interview and relates 

to such things as manner of dress, facial expressions, head-nodding, body 

posture, hand gestures, eye movements, the seating arrangements, etc. 

Non-verbal signs, if properly interpreted, may help one to understand better 

the thoughts expressed. Yet, these signs alone cannot be taken at face value 

as actually conveying the entire story or the implications we believe they 

convey. 

Non-verbal expressions may support or contradict the verbal message, e.g., the 

recipient may verbally express agreement but show uncertainty or 

disagreement by his facial expression. The significance of non-verbal 

communication is that it supplements the verbal expression of the recipient, 

particularly when there are language difficulties. It amplifies, underlines, and 

at times, contradicts what is conveyed verbally. 

With this caution in mind, the reviewer should be aware of her/his own 

thoughts and feelings and body expressions lest the non-verbal signs 

inadvertently convey false impressions to the recipient. 

Note-Taking 

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FNS HANDBOOK 310 

E - 8 

Beginning reviewers are frequently concerned about taking notes during the 

interview. Taking notes can be a problem if it interferes with the flow of 

communication distracting the reviewer from what the recipient is saying or 

even distracting the recipient. However, the purpose of the quality control 

interview is gathering specific factual information, and this provides a natural 

basis for note-taking. 

The reviewer is not expected to retain in her/his mind with a high degree of 

accuracy information such as names, addresses, amounts of income and 

deductions, dates, etc. In fact, the recipient might have more confidence 

when he sees the reviewer writing down information. The reviewer who does 

not write down such information might make the recipient wonder about 

her/his sincerity and why she/he asked for the information in the first place. It 

is a businesslike procedure to write down notes in the presence of the recipient 

to maintain the accuracy of the recipient’s statements. 

The recipient may also begin to wonder just what it is that the reviewer is 

writing down. Therefore, it is desirable to explain to the recipient the need for 

note-taking. The reviewer would explain that this is a way to ensure retention 

of accurate information. This alerts the recipient to the note-taking process. 

The general rule for note-taking is this: Do not become preoccupied to the 

degree that continuous writing becomes distracting. Do not let note-taking 

interfere with your attention to what the recipient is saying. 

Closing the Interview 

It is important to leave the recipient with a friendly feeling toward the 

reviewer and toward the agency he represents. It is also important that any 

questions or doubts about the interview expressed by the recipient should be 

cleared up before the reviewer leaves. The recipient should have the feeling 

that his/her time has been well spent. A few words of thanks will make the 

recipient feel that her/his efforts have been appreciated. 
FNS HANDBOOK 310 

INDEX 

Change reporting-$100 change 

in earned income2-4, 7-4, 10-

15 

A 

ABAWDS ...................... 8-28 

Change reporting-status.2-5, 7-

4, 10-25 

Acceptance of employment..8-

23 

Child support payment 

deduction................. 11-29 

Active case ................... 1-2 

Age............................. 8-1 

Child support payments from

absent parent............ 10-11 

Allimony payments ......... 10-7 

Allotment amount ........... 2-7 

Allotment test ............... 6-1 Citizenship ....................8-2 

Annualized income ......... 10-1 Collateral contact...... 1-4, 4-7 

Anticipated income ........ 10-1 Comparable workfare ..... 8-26 

AORD .......................... 1-2 Comparison I ..................6-2 

Arbitration................... 14-1 Comparison II .................6-2 

Consolidation/movementhousehold.................. 8-12 

Arbitration procedures .... 14-5 

Arbitration timeframes .... 14-3 

Arbitration timeframes-late Contract income........... 10-27 

transmission ............... 14-5 Conversion .................. 10-2 

Averaged income ........... 10-2 Correct system ...............2-1 

B D 

Decision date-negative action

............................... D-5 

Bank accounts................ 9-3 

Beginning months........... 7-24 

Deductions disallowed at 

cert/recert................ 11-3 

Bias ............................ 1-8 

Budget month ................ 1-2 

Budgeting ..................... 2-3 Deemed income ............ 10-9 

Dependent care deduction 11-6 

C Disabled ..................... 8-32 

Case record Disaster cases .................3-6 ................... 1-3 

Cash on hand Disqualification-recipient. 8-18 ................. 9-3 

Categorical eligibility Dividends ................... 10-10 ....... 1-3 

Certification action Documentation ......... 1-4, 5-3 ......... 1-4 

Certification errors Drug convictions............ 8-19 .......... 2-6 

Change Duplicate participation.... 8-15 ........................ 1-4 

Change reporting ............ 1-4 

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FNS HANDBOOK 310 

E Householdconsolidation/movement 8-12 Earned income case-handled as

..............................C-40 Household-duplicate 

participation .............. 8-15 Earned income deduction . 11-5 Households-resolving 

inconsistency.............. 8-11 Educational grants.......... 10-9 

Educational income .......10-28 Households-separated ..... 8-18 Educational loans........... 10-9 

Household-transfer/movement 

of individuals.............. 8-15 Effective date-negative action

............................... D-5 Household-verification ......8-8 Eligibility test ................ 6-1 

Employment and training . 8-21 I Employment status ......... 8-24 

IEVS......................5-1, 10-4 Error........................... 1-4 

Illegal non-citizens...........8-6 Error determinant month... 1-5 

Income-in-kind.............. 10-9 Expanded review-negatives 13-

3, D-7 Incomplete cases-negatives 13-

7 Expedited service........... 7-28 

Informal resolution......... 14-1 Expired certification periods 7-

28 Information from a federal 

source...................... 7-28 

F Initial month ..................1-5 

INS ..............................8-3 Federal mass changes...... 7-27 

Institutions ....................8-7 Federal written policy ..... 7-29 

Interest ..................... 10-10 Field review .................. 2-1 Interim change ...............1-5 Fleeing felons ............... 8-19 

Interviewing...................E-1 Fluctuating income......... 10-2 Interviewing-asking questionsE5 

FNS 245 instructions......... D-3 

FNS 380 instructions........B-18 Interviewing-closing the 

interview ....................E-8 FNS 380-1 instructions ...... C-5 

Foster care payments .....10-10 

Interviewing-creating rapport

H ................................E-3 

Interviewing-encouraging 

discussion....................E-4 Homeless shelter deduction 11-

14 Interviewing-general rules ..E-1 Household composition ..... 8-7 Interviewing-introducing one's 

self ...........................E-2 Household Interview ........ 4-2 

Household-categorically 

eligible ...................... 8-8 Interviewing-listening .......E-7 

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FNS HANDBOOK 310 

Interviewing-nonverbal 

communication............. E-7 

New regulations ............ 7-29 

Non-citizen....................8-3 

Interviewing-note taking ... E-8 Noncitizen case-handled as.. CIssuance month .............. 1-5 40 

Non-compliance with other 

means-tested programs ..2-8, 

10-33 

J 

Job availability.............. 8-24 

Non-liquid resources .........9-8 

L Nonrecurring lump-sum 

Likely conclusion payments ....................9-5 ........... 4-14 

NSTR-not subject to review 

active cases .................3-5 Liquid resources ............. 9-4 

Living arrangement.......... 8-7 

NSTR-not subject to review 

M negative cases ............ 13-1 

Mass changes ................ 7-26 O Medical deduction.........11-21 

One hundred dollar change

reporting............ 7-4, 10-15 Missing reports .............. 7-27 

Monthly reporting 1-5, 2-5, 7-8 

Mortgage Overissuance..................1-6 ..................... 11-9 

Movement/consolidationhousehold.................. 8-12 P 

Movement/transfer of PA and GA ..............1-6, 10-9 

individuals ................. 8-15 Pensions .................... 10-11 

Processing month ............1-6 

N Property insurance........ 11-10 

Nature codes-actives Property taxes ............. 11-10 ........ C-9 

Nature codes-negatives Prorated income............ 10-2 ..... D-9 

Negative case Prospective budgeting.......1-6 ................ 1-5 

Negative-action type Prospective eligibility .......1-6 ........ D-5 

Negative-decision date Public assistance (PA) 1-6, 10-9 ..... D-5 

Negative-effective date .... D-5 Q Negative-expanded review. 13-

3, D-7 QC universe ...................1-9 

Negative-reasons for action D-6 Quality control review.......1-6 

Quarterly reporting 1-6, 2-5, 7-

13 

Negatives .................... 13-1 

Negative-sample month .... D-4 

Negatives-incomplete...... 13-7 

R Negatives-NSTR ............. 13-1 

Negative-validity ............ D-7 Real property .................9-6 

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FNS HANDBOOK 310 

Recertification ............... 1-6 SAVE-systematic alien 

verification for entitlements

.............................. 7-29 

Recipient disqualification . 8-18 

Recording household 

statements.................. 4-6 Scholarships ................. 10-9 

Reducing work effort ...... 8-25 School enrollment............8-2 

Refined calculation of $ value 

of variances ............... 12-7 

Self-employment...10-4, 10-26 

Semi-annual reporting 2-6, 7-13 

Refusal and failure to 

cooperate.................. 4-10 

Semi-annual reporting-waiver 

to act on all reported 

Regulatory changes......... 7-26 changes ......................A-2 

Rent .......................... 11-9 Shelter deduction .......... 11-9 

Rental income..............10-11 Simple calculation of $ value 

Repairing a damaged home 11- of variance ................ 12-6 

12 Social security changes.... 7-27 

Residency ..................... 8-6 Social security numbers ... 8-30 

Residents of Institutions... 8-12 SSI-supplemental security 

Resources-accessible but not income ..................... 10-6 

owned by the household.. 9-3 Stable income............... 10-2 

Resources-categorical 

eligibility.................... 9-1 

Staffing standards ............1-8 

Standard deduction ........ 11-8 

Resources-exempt........... 9-3 Standard utility allowance..11-

Resources-jointly owned with 15 

nonhousehold members... 9-3 Status reporting 1-7, 7-4, 10-25 

Resources-noncitizen sponsors

............................... 9-3 

Student status ................8-2 

SUA-standard utility allowance

Resources-nonexempt ...... 9-3 ............................. 11-15 

Resources-nonhousehold 

members .................... 9-3 T 

Resources-transfer of ....... 9-2 TANF ........................ 10-11 

Retrospective budgeting ... 1-6 Time limited participation 8-28 

Retrospective eligibility .... 1-7 Timeframes-disposing cases . 1-

Review date .............1-7, 2-9 11 

RSDI-retirement survivors' and 

disability insurance benefits

.............................. 10-6 

Timeliness of application 

processing ................. C-39 

Transfer/movement of 

individuals ................. 8-15 S Transitional benefits..2-6, 7-21 

Sample month................ 1-7 

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FNS HANDBOOK 310 

U 

Underissuance................ 1-7 

Unearned income..........10-14 

Union benefits .............10-11 

Universe....................... 1-7 

Unoccupied home .........11-11 

Utilities .....................11-13 

V 

Valid/invalid negative actionD7 

Variance ...................... 1-7 

Vehicles ....................... 9-7 

Vendor payments ........... 11-2 

Verification..............1-8, 5-1 

Voluntary quit............... 8-25 

W 

Wages and salaries ......... 10-2 

Work registration........... 8-20 

Work requirements ........ 8-20 

Work-acceptance of 

employment............... 8-23 

Work-employment and training

.............................. 8-21 

Work-employment status/job 

availability ................ 8-24 

Worker's compensation.... 10-7 

Workfare..................... 8-26 

Work-time limited 

participation .............. 8-28 

Work-voluntary quit/reducing 

work effort................ 8-25 

Work-workfare/comparable

workfare ................... 8-26 

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