 Determine household size ◦ Economic units  Determine income ◦ Regular wages ◦ Self employment income ◦ Unusual situation  Foster children If Categorically Eligible (FIP, Food Stamp or Foster on separate app) SKIP PART 3

 Definition of household: related or unrelated persons living as one economic unit and who share housing and/or significant income and expenses.  Separate economic units in the same house are characterized by prorating expenses and economic independence from one another.  LEAs are allowed to ask for proof when verifying application.

 Child away at school, including college: if they are considered dependent, they are members of the household, and regular income must be reported  Child living with relatives or friends: generally a member of the household with whom they live if economically dependent on that household  Homeless families may be counted as household members of host family

 Adopted child: if adopting family has legal responsibility, the child is a household member.  Subsidized adoption: adopting family has legal responsibility, gets a subsidy that must be included in household income.  Joint custody: LEA should award the ‘best’ benefit level (free in one household, reduced in another, child is approved free)  Foreign exchange student: is considered a member of the host family. Not eligible for free meals unless host family is eligible/fills out an application.

 Gross income (before taxes) ◦ Current earnings from work ◦ Welfare/child support/alimony ◦ Do NOT include value of Food Assistance ◦ Retirement/social security/disability benefits ◦ Any other regular income

 Current income is based on the most recent information available ◦ Current month ◦ Amount projected for the first month the application is made for ◦ The month prior to the application  Project income only in certain circumstances (self-employed, or seasonal)

 “Usual” income, if most months are about the same  Average income per month if there is a high level of variability (paid on commission)  Include overtime pay if it is usually received

 May use Federal 1040 from last year IF income this year is about the same as last year  Only lines 12, 13, 14, 17 & 18 are included in calculating self-employment income.  The smallest income allowed is zero (no negatives offsetting positives allowed, if there are two income sources in the household)

 IRS and USDA differ in how income is recognized  Many deductions allowed by IRS are NOT allowed by USDA ◦ Some medical expenses ◦ Alimony and child support that is paid out by household

 USDA includes regular withdrawals from savings as income  IRS allows carry-over losses from one year to the next for businesses  IRS allows off-sets against wages for business losses

 No conversion is necessary if there is only one source of income or if all sources are received in the same pay frequency, ie monthly, etc.  Conversion is required if there are multiple income sources with more than one pay frequency (someone paid weekly, someone else monthly, etc).  Always convert to ANNUAL- when incomes vary in frequency and add the converted numbers together. Put that number in Part 5.

 Weekly income X 52  Bi-weekly income (every two weeks) X 26  Semi-weekly income (twice a month) X 24  Monthly income X 12 These are on the application, in Part 5 Reminder: Only convert to annual if income frequencies vary. Add all of the unrounded converted values and compare to the current Income Eligibility Guidelines for the annual income for the household size

 DEMONSTRATION

 Military benefits – benefits received in cash are income  Deployed service members – only the portion of pay made available to the family or on their behalf is income ◦ Deployed service members may be counted in the household

 Now included on the foster family application  Will not need a separate application  Foster Children are automatically eligible for free  Foster children must be identified by a state child welfare agency or court. They do not apply to informal arrangements that may exist outside of the State or court based systems.  The foster child’s eligibility does not extend to other children in the foster family household  In Direct Certification downloads- Make sure you include “Foster Child” as one of the selected columns.

 Individual application or Roster  Name of child  Child’s personal income (probably zero)  Signature of foster parent, guardian, or head of institution

 THERE ARE NO MORE TEMPORARY APPROVALS.  YOU APPROVE THE INFORMATION AT FACE VALUE  IF YOU NEED TO MAKE A PHONE CALL TO CLARIFY INFORMATION, DO SO

 REQUIRED FOR NON-CATEGORICALLY ELIGIBLE  NEW-LAST FOUR DIGITS  Must provide either the last 4 digits of a Social Security Number or Check in Box- No Social Security Number  if neither box is completed the application is VOID

 FIP/FOOD ASSISTANCE  FOSTER CHILD  FOSTER CHILD IN FAMILY  SELF EMPLOYMENT & NEGATIVE INCOME  MIXED WAGES- SELF & OUTSIDE  SINGLE FREQUENCY  MIXED FREQUENCIES OF PAY  INCOMPLETE

The full set of both free and reduced guidelines do not get distributed to families. This is information only available to school personnel approving applications

SIGNATURE AND DATE IS REQUIRED OF ALL APPLICANTS

It is helpful to attach your calculations to track how the application was approved This section is used during Verification REQUIRED

 Applications are effective for the current school year and up to 30 operating days in the subsequent school year.  Update system on the 31 st day  Always use current school year income eligibility application to ensure correct approvals  Must approve within 10 days of receipt- Helpful Hint- Date stamp day of receipt  Save all applications  Connect documentation to application

 Households must be notified of their eligibility status  Households with children who are approved free or reduced price benefits may be notified in writing OR verbally.  Households with children who are DENIED benefits MUST be given WRITTEN notification of the denial.  The notification must include: Reason for denial of benefits Right to appeal Instruction on how to appeal Statement that family may reapply for free or reduced price benefits at any time during the school year  Notification Letter to Parents EXAMPLE

MONTHLYANNUAL  Monthly Student Roster  Monthly Eligibility Lists  Direct Certification Lists-including potential list  Monthly Claim Documentation  Enrollment Master List  Online Application  I E Applications  Verification  Site Inspections  Memos  Racial Ethnic Data  CNP 10 Perm. Agreement  Procurement Docs  Training-CR

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