Slide 1

Family Alternatives Diversion

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 orderto be approved for FAD

 Be serving a K-TAP ineligibility period

 Currently be ineligible due to Full FamilySanction (6/3 policy)

Currently be receiving WIN benefits

Have received FAD in the past 24 months

Prescreen

K-TAP technical and financial eligibility factorsmust be met, EXCEPT:

 Only gross income test must be met

 The 30 day waiting period for deprivationfactors of desertion and unemploymentis WAIVED

 Deprivation factor of incapacitymust be determined by a FieldDetermination

K-TAP Eligible

Households must have a verified SHORT TERMneed 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 thisdetermination.

Self-Supporting

Participant completes the FA-1

The worker reviews the FA-1 to determine

What are the recent changes that caused theapplication for K-TAP?

What short-term need the family might have.

The financial and technical eligibility for K-TAPbased on the applicant’s statement.

If the participant appears eligible for K-TAP then:

Determine if the family has or expects earnedincome 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 receiveFAD they are not eligible to receive K-TAPfor 12 months from the month the firstFAD payment is authorized.

Explain that FAD can only be received twicein a lifetime.

Applicant signs the FA-1 indicating theychoose KTAP or FAD

Explain FAD

If the individual chooses FAD:

 Within 10 days, the individual must verify theirKTAP technical and financial eligibility andalso their short-term needs

Citizenship must be verified for 1 adult and 1child at the very least

Get Approval

At this time the worker:

Completes the PAFS-97 to indicate why aKTAP application wasn’t taken

If PA-77 was completed, Deny K-TAP Caseon KAMES before approving FAD

Establish a separate case for FAD

Discuss other programs with the family suchas their eligibility for Food Benefits, Medicaid,Child Care Assistance and other communitypartner assistance

Complete PAFS-97

If additional verification is needed:

 Send or give applicant a PAFS-2 to requestinformation within 10 days

 If verification is not provided, send PA-105 toadvise the applicant that the FAD case isdenied for failure to provide requestedverification.

Workers only have 15 days to process FAD!

Request Verification

Determine the household’s countable grossincome manually, and compare to themaximum gross income scale for K-TAP

If the income exceeds the gross income scale,deny the FAD application: update the FA-1and 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 of3 months.

 Payments are issued to the vendor, wheneverpossible.

 A 2-party check can be issued, if necessary.

Issuing Payment

For approvals, enter only K-TAP eligibleindividuals on the FAD system. This could alsoinclude 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 anyexpense in advance. Some other expensesthat cannot be paid with FAD money aremedical bills, credit card bills, TV cable orsatellite bills or the co-pay for subsidized childcare.

Receipt of FAD excludes the benefit groupfrom receiving K-TAP for 12 months unlessnon-receipt of K-TAP would result in:

Abuse or neglect of a child, as determined bythe Cabinet, or

The parent’s inability to provide adequatecare or supervision for their children due toloss of employment through no fault of theparent, as determined by the Cabinet.

The FAD application must be processed within15 days from the filing date.

 The FAD approval date is the date it is entered on the FADsystem, and the first payment is made. This also begins the 24month count of FAD receipt.

 No FAD record exists if the case is denied, or all payments forthe case are deleted from the FAD system.

 The FAD system assigns a 3-month period of eligibility by usingthe 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 calendardate in the end month.

3 Months of FAD Eligibility

FAD System Entry

The Following Is A Step-by-Step Guide to IssuingFAD Payments

FAD cases areentered off KAMESmain menu

The option numberis “V” as shown

You should not gointo the FAD systemuntil you are readyto make a payment.

This is the FAD mainmenu. There areseveral options tochoose from.

To enter a newcase, or enter apayment on anexisting 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 toenter all of the householdmembers that would havebeen included on a KTAP case.

Enter the correct FAD paymentcode according to the needtype. 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 tothe youngest child.

Press Enter.

This is the screen where you areactually making a payment.

Enter the name, address andincome and resource informationfor your client.

Again, you may want to checkyour codes list for “Payment type”and “Need type”.

In this case, we are doing avendor payment

 If you are making a 2 party payment, you would put the vendor information inthe 2 party check field, instead of the vendor payment section.

Press Enter when screen is complete.

TAX ID Numbers

A Tax IdentificationNumber (TIN) or a SocialSecurity Number must beentered for the followingneed types:

 Rent

 Car Repair

 Child Care

 Other Services (code

98)

Use form FA-4 to verify thevendor TIN or SSN

Do NOT:

 Enter a TIN or SSN unless it is required for thatpayment 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 commentscreen.

Some of the things you wouldwant to document:

 KTAP eligibility, and how youverified it.

 Short term need, and howyou verified it.

 Income that shows they areself-supporting, and how youverified.

 Payments made, and howthe expense was verified.

If you choose option“B”, Inquire Payments,you can look atpayments you havemade.

 Notice that the FADbalance andpayment eligibilitydates are listed on thisscreen.

If you discover thatyou made a mistake inentering the paymentinformation or theamounts, you canchoose option “D”,Payment Delete.

This has to be donethe same day youenter the payment!

You can enter a “D” next to the payment you want todelete, and an “X” at the bottom of the screen, and pressEnter.

For more information on FADeligibility, payments, and systementry, go to Vol. III, M.S. 2200