Calculating Child Support Expenses for FoodShare

1. Calculating Child Support Expenses for FoodShare WisconsinSocialServicesAssociation 2014Conference

2. Objectives • Review current FS policy for CS Expenses • Identify different methods to calculate expense using Prospective Budgeting rules. • Walk through examples of CS expense cases.

3. FoodShare CS Expense Policy ALERT! ALERT! ALERT! ALERT! ALERT! FoodShare policy can and DOES change. The information in this session is based upon policy that was in effect as of 6/25/14. This is for training purposes only. ALWAYSreference policy first (currently FSH 4.6.5) in conjunction with Ops Memos and Process Help. This is not a DHS-sponsored training.

4. FoodShare CS Expense Policy FoodShare policy for allowable Child Support Expenses changed on 10/14/13 with the release of Ops Memo 13-33. As of that date, FS groups could not longer receive a deduction for just an obligation of CS. The deduction can only be for child support payments actually made or “reasonably expected” to be made.

5. FoodShare CS Expense Policy Allowable CS Expense Obligations (4.6.5.1) The CS expense deduction may include onlylegally obligated or court-ordered child support payments including arrearages actually made and/orreasonably anticipated to be made to a non-household member. The average amount an individual is paying on a current obligation is allowed as the expense.

6. FoodShare CS Expense Policy Allowable CS Expense Obligations (4.6.5.2) Arrearages, Legal obligation for a non-food unit member to pay for things  such as rent or mortgage payment, Legal obligation for health insurance payments, A prorated share of child support paid by ineligible members, Court ordered Foster Care payments, Court ordered subsidized Guardianship payments, or Court ordered blood test expenses for the child included in the court ordered obligation.

7. FoodShare CS Expense Policy Disallowed CS Expense (4.6.5.3) Maintenance, Payments made in accord with a property settlement.Lying in costs for the birth of a child. The annual child support R&D fee, or An employer's check withholding fee. For family support, prorate the payment among the group members it is intended for and exclude the (ex) spouse’s share as a deduction.

8. FoodShare CS Expense Policy Prospective Budgeting (4.6.5.1) Remember, the goal of Prospective Budgeting is to develop the best monthly estimate for the certification period. For most ongoing CS court orders, a “look-back” approach at prior payments is appropriate to determine an average paid amount. When support is paid sporadically, a look-back review is essential.

9. FoodShare CS Expense Policy Prospective Budgeting (4.6.5.1) The number of months used to calculate the average may vary depending on the amount of fluctuation in the payments. Workers should documentin case comments the number of months used to calculate the deduction and the reasonthose months were used. The look-back period could by 1 – 6 months or more, on a case-by-case basis.

10. FoodShare CS Expense Policy Prospective Budgeting (4.6.5.1) For new orders, or reported changes, a “look-forward” approach may be the best method to use. In these cases, past information may not be relevant to determine the best estimate of future payments. Regardless of looking backward or a current information, there must be an expectation of future payment.

11. FoodShare CS Expense Policy Prospective Budgeting (4.6.5.1) In summary, “to determine a monthly average when the payment amounts fluctuate, workers should follow the same process used to determine prospective income. The average should be the best estimate of amounts paid, but also amounts expected to be paid in the future.”

12. FoodShare CS Expense Policy Utilizing KIDS to Calculate CS Expense For most situations, a worker should utilize KIDS to verify CS expenses are court-ordered and the average child support amount paid. KIDS is a confidential computer system. Workers should not screen print information from KIDS and scan into ECF. Document in the comment field in CWW how calculations were made.

13. FoodShare CS Expense Policy Utilizing KIDS to Calculate CS Expense KIDS Paths: 02-05-13 To identify court orders 02-05-05 Participant Account Statement 02-05-06 Case Account Statement The Case Account Statement screen provides the detailed account of where payments were distributed.

14. FoodShare CS Expense Policy Utilizing KIDS to Calculate CS Expense Key Navigation Tips for KIDS: • Menu Number Driven • F12 takes a user back one prior screen • F8/F7 move forward or backward on a screen • Shift-F8/Shift F7 moves a person to the right or left on a screen.

15. FoodShare CS Expense Policy Utilizing KIDS to Calculate CS Expense NOTE: The following screen prints have no confidential data. All names, numbers, and related information have been changed. Any semblance to a real person or a real child support case is purely coincidental.

19. When possible, use SSN to search .

20. In this example, there is only one open NCP order.

21. The Ordered Amount is listed first, then the balance for each column. Press Shift-F8 to page to the Right for additional orders. The CSUP and CUSTA count for FS but LYIN does not.

22. Any payments in these columns would not count for FS (They are fees).

23. Enter a date-range to review payments. As general practice, it is good to look back 3 – 6 months to evaluate consistency of payment. A further look-back period sometimes may be necessary (such as when only paying quarterly).

24. As you review each page, note the payments. If they are consistent every month, you can do a one month average. Always determine based upon what is the best predictor for future payments. Below, we skipped ahead a few pages. Each month shows only twopayments of $163.84.

25. In this scenario, what would you budget? $163.84 x 2 = $327.68 If there was a third payment made in the last three months, then it would be appropriate to do: $163.84 x 2.15 = $352.26 Document in Comments on the Support page the Order #, and how the amount was calcuated.

26. Let’s do another example. Michael Jackson has two open NCP orders.

27. The Ordered Amount is listed first, then the balance for each column. Press Shift-F8 to page to the Right for additional orders.

28. Again, there is no countable orders on this page for FS. Disregard payments made under these columns.

29. Do a look-back period that will provide sufficient information to predict future payments.

35. In this scenario, what would you budget? Jan – May total $408.39/5 months = $81.68 Since payment were made consistently, you could do a 1, 2, or 3 month average instead of the 5 months used in this example.

36. In KIDS, press F12 to go back to the case listing page to select the second order for Michael Jackson

37. Shift-F8 again to look for additional orders/columns.

38. Again, no countable orders for FS on the second page.

43. In this scenario, what would you budget? March– May total $282.02/3 months = $94.01 The worker could also take the base payment of $21.69 and multiply by 4.3 but that would give a slightly different average: $93.27

44. FoodShare CS Expense Policy If there is not a child support payment history to review, and there has been a reported change (such as a new order or a new job), review the court order to determine the amount of obligation.

45. 02 Use Path 02 – 05 – 13 to view CS Court Ordered Obligation

46. 05

47. 13

48. 03 Look for NCP roles with an OPEN Case Status.

49. 03 Check for Open Obligations that have a FREQ AMT DUE amount.

50. The counted amount for FS is $140 Budget