1 ERDC – Making it Easy… New policy effective 01/01/2009

2 Changes effective 01/01/2009  ERDC will be aligning with Food Stamp policy when it comes to verifying and budgeting income.  Forms: DHS 7476, DHS 7470 and DHS 487 were revised to align with new policy.

3 Verifying Income just got easier…. Effective 01/01/2009, income received in the past 30 days must be verified for ERDC - same as Food Stamps (previous policy required current month and past two months).  New ERDC applicants must verify all income received in the 30 days prior to the date of request.  Ongoing ERDC recipients must verify all income received in the past 30 days from when they turn in their ERDC re-application. Note: If changes occur between the time the re-application is received and when the interview is completed, the worker may need to verify the changes reported.

4 The past 30 days may differ: –If past income is not representative of future income, the client and the worker jointly estimate what the client expects to receive using the best information available at the time of the interview. –New job or job changes - verify by employer statement or phone call to the employer. Remember: Document the reason for the change. Additional verification may be needed and requested if income is variable or questionable.

5 How it works…Example 1 Client turns in an ERDC re-application on Nov 10 and provides past 30 days verification of income. The worker completes a phone interview and processes the re-application on Nov 29. In this situation the worker used income received, because it was representative of future income.

6 How it works…Example 2 Client turns in an ERDC re-application on Nov 10 and provides past 30 days verification of income. On Dec 15, the worker completes a phone interview with the client. The client states the income has not changed and it does not appear to be questionable. The worker would use the pay stubs turned in on Nov 10, to anticipate future income.

7 How it works…(continued) In either of the previous examples, if the client had stated that their income had changed or they anticipate it to change, if questionable, the income would need to be verified. If the change is a new job, it will need to be verified.

8 Prospective Budgeting The initial month may differ for ERDC and Food Stamps. For Food Stamp cases in CRS, use actual income for the initial month. That is income already received in the month plus all income that can reasonably be anticipated. In ERDC, income is budgeted so that the anticipated amount is the same for each month, including the initial month. For on-going months use prospective eligibility and budgeting.

9 Prospective Budgeting…continued Determine the type of income (stable, variable, etc.) based on the verification provided, then convert to a monthly amount as follows: If paid once a week, multiply by 4.3 If paid twice a month, multiply by 2 If paid every other week, multiply by 2.15

10 Form Changes Effective 01/01/2009 DHS ERDC Periodic Review and Food Stamp Application will change: –The form is renamed to Employment Related Day Care (ERDC) Re-application and Food Stamp (FS) Application. This will make the application of the policy more clear and eliminate the need for workers to send a DHS 487 for ERDC and a DHS 210 for Food Stamps when the client fails to provide needed verification (only the DHS 210 will be needed). –Income questions were revised to support new policy regarding income verification and budgeting. It will ask for last month’s income verification and the anticipated income for the current month. –Another option box was added for clients requesting FS only. This will eliminate the need to send a denial notice for ERDC if there is no longer a child care need. –Special needs question was added. –Filing Date space was added to the heading.

11 Form Changes…continued DHS The Application for Employment Related Day Care (ERDC) will change: –Income questions were revised to support new policy regarding income verification and budgeting. It will ask for last month’s income verification and the anticipated income for the current month. DHS The Notice of Incomplete Information will change: –The “Periodic Review” option box will be removed. This form will no longer be used for ERDC - DHS 210 form will be used instead.

12 ERDC Resources Cassie Day Barbara Zharkoff Shiela Carter Peggy Cain GroupWise: POLICY, CHILDCARE