F amily A lternatives D iversion The alternative to long-term assistance

Households cannot: Be currently receiving K-TAP benefits Be discontinued due to receipt of 60 months Return the amount of a K-TAP check in order to be approved for FAD Be serving a K-TAP ineligibility period Currently be ineligible due to Full Family Sanction (6/3 policy) Currently be receiving WIN benefits Have received FAD in the past 24 months Prescreen

K-TAP technical and financial eligibility factors must be met, EXCEPT: Only gross income test must be met The 30 day waiting period for deprivation factors of desertion and unemployment is WAIVED Deprivation factor of incapacity must be determined by a Field Determination K-TAP Eligible

Households must have a verified SHORT TERM need that may include: Transportation Child care Utilities Housing Employment related expenses Relocation Insurance Taxes/Licenses Household furnishings (in the event of a catastrophe) Criminal records check Drug Test Short Term Need

Households must be determined to be self- supporting if short-term needs are met. Only earned income is considered in this determination. Self-Supporting

Participant completes the FA-1 The worker reviews the FA-1 to determine What are the recent changes that caused the application for K-TAP? What short-term need the family might have. The financial and technical eligibility for K-TAP based on the applicant’s statement. If the participant appears eligible for K-TAP then: Determine if the family has or expects earned income sufficient to meet the ongoing needs, AND The family has an existing short-term financial need IF SO …… Review of steps so far:

Explain their option of receiving FAD or K-TAP Explain to the participant that if they receive FAD they are not eligible to receive K-TAP for 12 months from the month the first FAD payment is authorized. Explain that FAD can only be received twice in a lifetime. Applicant signs the FA-1 indicating they choose KTAP or FAD Explain FAD

If the individual chooses FAD: Within 10 days, the individual must verify their KTAP technical and financial eligibility and also their short-term needs Citizenship must be verified for 1 adult and 1 child at the very least Get Approval

At this time the worker: Completes the PAFS-97 to indicate why a KTAP application wasn’t taken If PA-77 was completed, Deny K-TAP Case on KAMES before approving FAD Establish a separate case for FAD Discuss other programs with the family such as their eligibility for Food Benefits, Medicaid, Child Care Assistance and other community partner assistance Complete PAFS-97

If additional verification is needed: Send or give applicant a PAFS-2 to request information within 10 days If verification is not provided, send PA-105 to advise the applicant that the FAD case is denied for failure to provide requested verification. Workers only have 15 days to process FAD! Request Verification

Determine the household’s countable gross income manually, and compare to the maximum gross income scale for K-TAP If the income exceeds the gross income scale, deny the FAD application: update the FA-1 and send a PA-105 to the participant If the income is below the income scale, approve the case All FAD cases will pend for supervisor approval When all verification is provided

The family has $1300 to spend over a period of 3 months. Payments are issued to the vendor, whenever possible. A 2-party check can be issued, if necessary. Issuing Payment

For approvals, enter only K-TAP eligible individuals on the FAD system. This could also include SSI parents or children. One or more checks can be issued, as needed, during the 3 month FAD eligibility period. FAD money CANNOT be used to pay any expense in advance. Some other expenses that cannot be paid with FAD money are medical bills, credit card bills, TV cable or satellite bills or the co-pay for subsidized child care.

Receipt of FAD excludes the benefit group from receiving K-TAP for 12 months unless non-receipt of K-TAP would result in: Abuse or neglect of a child, as determined by the Cabinet, or The parent’s inability to provide adequate care or supervision for their children due to loss of employment through no fault of the parent, as determined by the Cabinet. The FAD application must be processed within 15 days from the filing date.

The FAD approval date is the date it is entered on the FAD system, and the first payment is made. This also begins the 24 month count of FAD receipt. No FAD record exists if the case is denied, or all payments for the case are deleted from the FAD system. The FAD system assigns a 3-month period of eligibility by using the same calendar day 3 months from the current date. Example: 8/16/10 to 11/16/10 Some approval dates do not have a corresponding calendar date in the end month. 3 Months of FAD Eligibility

FAD System Entry The Following Is A Step-by-Step Guide to Issuing FAD Payments

FAD cases are entered off KAMES main menu The option number is “V” as shown You should not go into the FAD system until you are ready to make a payment.

This is the FAD main menu. There are several options to choose from. To enter a new case, or enter a payment on an existing case, choose option “A”. Enter your worker code, SSN or case number, and the date of approval for the FAD case. Press Enter.

On this screen, we want to enter all of the household members that would have been included on a KTAP case. Enter the correct FAD payment code according to the need type. The need types are: 01-Utilities 02-Rent 03-Car Repair 04-Child Care 05-Relocation 06-Mortgage 07-Insurance 08-Car purchase/payments 09-Taxes/License 98-Other Services 99-Other Goods Something you should know: “ REL” is how this individual is related to the youngest child. Press Enter.

This is the screen where you are actually making a payment. Enter the name, address and income and resource information for your client. Again, you may want to check your codes list for “Payment type” and “Need type”. In this case, we are doing a vendor payment If you are making a 2 party payment, you would put the vendor information in the 2 party check field, instead of the vendor payment section. Press Enter when screen is complete.

TAX ID Numbers A Tax Identification Number (TIN) or a Social Security Number must be entered for the following need types: Rent Car Repair Child Care Other Services (code 98) Use form FA-4 to verify the vendor TIN or SSN Do NOT: Enter a TIN or SSN unless it is required for that payment type. Enter the client’s SSN as the Tax ID number. Issue a payment directly to a client, regardless of the circumstances!

Now, we get a comment screen. Some of the things you would want to document: KTAP eligibility, and how you verified it. Short term need, and how you verified it. Income that shows they are self-supporting, and how you verified. Payments made, and how the expense was verified.

If you choose option “B”, Inquire Payments, you can look at payments you have made. Notice that the FAD balance and payment eligibility dates are listed on this screen.

If you discover that you made a mistake in entering the payment information or the amounts, you can choose option “D”, Payment Delete. This has to be done the same day you enter the payment! You can enter a “D” next to the payment you want to delete, and an “X” at the bottom of the screen, and press Enter.

For more information on FAD eligibility, payments, and system entry, go to Vol. III, M.S. 2200