Implemented in August 2005, the TANF Diversion Initiative is an alternative to Temporary Assistance for Needy Families (TANF). Diversion covers a short-term financial gap when a family’s earned income temporarily stops or reduces. The intention of Diversion is to “divert” the family from the immediate crisis and the need for ongoing TANF benefits.
A Diversion payment is a lump sum of either one, two, or three months of the Family size Allowance (FSA), depending on the time span of the need. A Diversion period extends from the first day of the month that the County Assistance Office (CAO) authorizes Diversion until the last day of the final month of Diversion eligibility. Recipient families only can receive Diversion once in 12 months.
NOTE: Diversion is not an annual entitlement to cover expected, ongoing needs. The intent of Diversion is to fill a short-term, non-recurring financial gap until a family’s income resumes. The CAO must base Diversion eligibility on this intent. Because Diversion is a cost-saving initiative, the CAO should evaluate each situation independently.
ELIGIBILITY FOR TANF
NOTE: The CAO must determine at application if the TANF family is eligible for and will receive Diversion benefits or TANF benefits. See Section 137.53 for screening tool.
Application: The applicant must complete the Common Application Form (PA 600). Every budget group member, age 18 or older, must sign the PA 600 and the Authorization for Release of Information (PA 4).
Eligibility In Month After Application Month: If a family is not eligible for Diversion in the month of application, the CAO will consider the next month. If the family is eligible for Diversion then, the second month is considered the first month of the Diversion period.
Financial/Non-Financial Requirements: An applicant family must meet—in either the application month or the following month—all TANF non-financial and income/resource requirements and all sanction/criminal history requirements.
Treatment of Income: When determining Diversion eligibility, the CAO uses TANF income eligibility criteria and counts both earned/unearned income. See Chapter 150, Income. However, the CAO disregards family income to determine the Diversion payment amount, which is always a full FSA for one, two, or three months.
Sanction: The family is ineligible for Diversion if an Eligible Specified Relative (ES) parent is sanctioned. To receive Diversion, the sanctioned individual must meet all sanction requirements and re-establish ES status.
ES Parents/SSI Recipients:
One-parent household: A single parent must be an ES to receive Diversion. An SSI recipient is not considered an ES and, therefore, is not eligible for Diversion.
Two-parent household: In a two-parent family with one parent who receives Supplemental Security Income (SSI), if the other parent is an ES, that parent can receive a Diversion payment for the TANF family.
NOTE: An SSI recipient is not part of the TANF family because an individual cannot receive both TANF and SSI benefits at the same time. The individual may choose which benefit to receive. See Section 105.1.
Diversion Agreement Form: The CAO will not require an applicant family applying only for Diversion to complete the Agreement of Mutual Responsibility (AMR) (PA 1661). Instead, the applicant family will complete/sign the Diversion Agreement Form (PA 1793). See Diversion Agreement Form (PA 1793).
No Overlapping Cash or Diversion Benefits: The CAO will not authorize Diversion to an applicant who received cash assistance any days in the Diversion application month or received a Diversion payment in the past 12 months (beginning with the NCE authorization date of the previous Diversion payment). For exceptions to authorizing cash assistance within a Diversion period, see Section 137.521.
Treatment of Non-Cooperation with Child Support: Although the CAO imposes a 25 percent reduction of the TANF grant if an applicant or recipient does not cooperate with child support requirements, this non-cooperation does not affect Diversion eligibility or Diversion payment amount.
NOTE: Alien families subject to the five-year ban are not eligible to receive TANF benefits and, therefore, not eligible for Diversion.
SHORT-TERM FINANCIAL NEED
Eliminating Need for Ongoing Cash Assistance: The intention of Diversion is to cover a family’s short-term financial gap and eliminate the need for ongoing TANF benefits. Diversion is not an annual stipend for a family’s anticipated, recurring needs.
Verifying Need: The CAO will verify the amount and duration of the need, up to a maximum three months. If verification exists in the case record, the CAO will not require more. Financial needs include but are not limited to: Work expenses (such as uniforms and tools); transportation expenses (such as car repairs/inspections, car payments, car insurance premiums); child care costs; housing expenses (such as mortgage payments, rent, home repairs, or utilities); costs to relocate to secure employment.
NOTE: The CAO will not issue Diversion to cover court costs, fines, bail, restitution payments, and child support payments (either ongoing or arrearages).
Income Expected in Diversion Period: In general, when determining if Diversion can cover the family’s financial gap, the CAO should count income expected within the Diversion period only when the Diversion payment (combined with all available supplemental benefits) cannot cover the financial gap.
NOTE: The CAO has leeway to work case by case when considering income expected within a Diversion period -- but should be cautious when counting this income. For example, an expected tax refund may not arrive timely or in the amount needed to help cover the need. However, regular, dependable child support payments or income from an established part-time job can be a reliable source of income.
SSI Income: When determining TANF or Diversion eligibility, the CAO will not count SSI benefits. However, when determining if a Diversion payment will cover a family’s short-term needs, the CAO can count SSI benefits expected in a Diversion period if a Diversion payment cannot cover all the needs.
Other Benefits: The CAO should consider all available supplemental benefits to help a Diversion payment cover the financial gap.
NOTE: If a combination of Diversion, anticipated income in the Diversion period, and supplemental benefits does not meet the family’s total short-term financial needs, the CAO cannot authorize Diversion. The CAO will consider other benefits, including ongoing TANF.
Income Expected After Diversion Period: The CAO will not require verification of recurring income the family expects to receive at the end of the Diversion period but the family should expect this income to arrive timely and in the amount to meet the family’s needs. In a two-parent household, only one ES parent needs to anticipate income. With a few exceptions, Diversion recipients are ineligible for cash assistance benefits until the end of the Diversion period. See exceptions in Section 137.521.
NOTE: Although the CAO will not require verification of recurring income expected at the end of the Diversion period, a family’s voluntary verification of this income can help pinpoint the duration of the need. The CAO should consider explaining this advantage to applicants. Waiting for this verification should not delay the application process.
ES WITH RECENT WORK HISTORY OR JOB SKILLS TRAINING
ES and Work History: The applicant family must contain an ES. Within 90 days of the application, the ES must have work history or job skills training. This time frame is within 180 days of application for geographical areas waived for time-limited Supplemental Nutrition Assistance Program (SNAP) benefit. See Appendix B in SNAP Handbook Chapter 575, Certification Periods.
NOTE: Income-in-kind counts as recent work history. For example, a family may live in a resort, receive no salary/wages, but take care of housekeeping and grounds in exchange for housing and meals.
Verification: Certificates from trainings, pay stubs, and income tax returns indicate job skills training or work history.
Two-Parent Household: Only one ES parent must meet the work or job skills requirement.
SSI Recipients: An SSI adult recipient cannot be an ES, and an SSI child recipient is not considered part of the Diversion or TANF household.
NOTE: Because an SSI recipient is not considered an ES, the recipient is not eligible for a child care payment. See Chapter 183, Child Care.
Non-Cooperation with Child Support: This will not affect the family’s eligibility for Diversion or the amount of the Diversion payment.
ES Status/Sanctions and Criminal History: When a TANF case closes, all members of an applicant group must meet restrictions for sanctions and criminal history and must re-establish ES status before the family can receive Diversion. The sanctioned relative must fulfill the minimum sanction time period and comply with appropriate action required by the CAO, such as referral to CareerLink.
NO OVERLAPPING CASH BENEFITS
To be eligible for a Diversion payment, an applicant family cannot already have received cash assistance in any days during the Diversion authorization month – or have received a previous Diversion payment within the past 12 months. The NCE authorization date of the Diversion payment is the begin date of the 12-month period, regardless of program status code or amount of Diversion. See exceptions below in Section 137.521.
The CAO can authorize an Emergency Shelter Allowance (ESA) to an individual/family who already received a Diversion payment to resolve a housing crisis within the 12-month period prior to the request for the ESA.
NOTE The CAO can authorize Diversion for an applicant family who received Diversion in another state within the past 12 months.
If the family’s situation falls under one of the three exceptions below -- and the Division of Employment and Training (DETP) in the Bureau of Policy approves the exception – the CAO may authorize cash assistance within a Diversion Period.
When making an exception, the CAO must write a detailed case-record narrative explaining the reason for the exception; file a Diversion overpayment for full calendar months with Reason Code 59; and use the ARRC screen, “TANF Diversion,” to enter a Diversion overpayment. See ARRC Data Entry Procedures in Using ARRC.
The CAO will explain that if a Diversion recipient receives cash assistance during the Diversion period, an overpayment is required. This means the recipient must repay all or a portion of the Diversion benefit to the Department through a decrease of the ongoing monthly cash assistance benefit by up to five percent, as indicated on the AMR (PA 1661).
NOTE: Spending Diversion funds at will, for any purpose, is not a valid reason to make an exception.
EXAMPLE: Kayla Miles and two toddlers receive a Diversion payment to cover three months of needs until her job begins. During the second month of the Diversion period, Kayla applies for TANF because she spent the Diversion funds on vacation and decided not to start the new job. This is not a valid exception. The CAO will not authorize TANF during the Diversion period.
EXCEPTION 1: DOMESTIC VIOLENCE ISSUES
A domestic violence (DV) issue, under the Family Violence Option according to normal DV regulations, is an exception. See Chapter 108, Family Violence Policy and Procedures; Section 108.6; Section 108.75. Rather than directly referring to DV issues on the AMR, the CAO should handwrite “family or household issues” or “referred for supportive services.” The CAO will inform the family of the overpayment and contact DETP for approval to authorize ongoing TANF. This exception may require verification, as per DETP.
EXAMPLE: Emily Grimes and three children receive a Diversion payment to cover August and September needs until her job starts in October. In mid-August, Emily’s ex-husband batters her and threatens the children. Emily temporarily moves her family to a friend’s house, spends Diversion funds on emergency needs, and applies for cash assistance. The CAO contacts DETP for approval of the exception.
EXCEPTION 2: CHILD WELFARE SERVICE AGENCY ISSUES
Ongoing TANF may help prevent a child welfare agency from removing a child from the home or speed the return of a child. If so, the CAO can consider this situation as an exception, upon receiving approval from DETP. This exception requires verification.
EXAMPLE: The CAO authorizes a Diversion payment to cover April, May, and June needs for Cindy Allen and family until she graduates from secretarial school and starts work in June. In early April, the child welfare agency informs Cindy her infant son can be returned home from foster care when she completes an infant-care class and verifies a recurring income. Cindy applies for cash benefits and provides a child welfare agency statement for verification. The CAO contacts DETP for approval of the exception.
EXCEPTION 3: UNFORSEEN CIRCUMSTANCES
When it appears that an unexpected circumstance qualifies as an exception, the CAO should forward details to DETP for review and approval. This exception may require verification, as per DETP.
Expected Job Falling Through: When the new job start expected at the end of the Diversion Period does not materialize, the CAO can consider this as an exception. This exception likely will require verification before the CAO contacts DETP for approval.
EXAMPLE: Mack Jade and family receive a Diversion payment to cover January and February needs until his job start on a construction crew. Two weeks later, the employer tells Mack the company will relocate to Nevada. Mack applies for cash benefits and provides an employer statement to verify the job loss. The CAO contacts DETP for approval of the exception.
Natural Disaster or Serious Crisis: Exceptions may include floods; tornados; earthquakes; fires; infestations; a budget group member’s serious illness or injury; utility shut offs; evictions or eviction notices; other emergencies threatening life or health and resulting in loss of an essential need. This exception may require verification, as per DETP. Examples of verification include news clippings; social service agencies such as Salvation Army or the Red Cross; third party contacts, such as landlords.
EXAMPLE: The CAO authorizes Diversion to meet September and October needs for Steve Rogers and family until his November job start. In mid-October, a fire severely damages their apartment. Re-locating to a motel, the Rogers spend Diversion funds on immediate needs, apply for TANF, and provide a landlord statement for verification. The CAO contacts DETP for approval of the exception.
Every budget group member, age 18 or older, must sign the PA 600 and the Authorization for Release of Information (PA 4). As a first step, the CAO reviews the application for cash assistance eligibility.
REMINDER: To be eligible for Diversion, a family must be eligible for TANF.
NOTE: Non-cooperation with child support results in a 25% reduction in a family’s TANF grant but does not restrict the family from receiving Diversion and does not reduce the diversion grant..
USE SCREENING TOOL
Screening helps to determine eligibility for Diversion or TANF benefits. At the application interview (or screening interview), the CAO will:
1. Ask the applicant these questions:
Why are you applying for cash benefits?
What happened to create a need to apply for cash assistance?
2. Narrate the response.
3. Based on the response, determine if the family has a specific episode of need or crisis situation that can be resolved with the Diversion Initiative, including :
Threat of homelessness, eviction, and/or utility shut-off.
Employment, school, or training needs, such as tools or automobile repair.
Recent loss of a job.
Need for employment but unable to find a job
4. If the family meets TANF non-financial eligibility requirements; is income and resource eligible for TANF; and, indicates a specific episode of need or crisis situation – take the following action:
NOTE: Alien families subject to the five-year ban are not eligible to receive TANF benefits and, therefore, not eligible for Diversion benefits.
Review eligibility for a Diversion payment using the eligibility requirements, including recent work history or job skill’s training. See when to authorize cash assistance in a Diversion period, as an exception, in Section 137.521.
Narrate the episode of need or crisis situation.
NOTE: The CAO will consider all available supplemental benefits, which can cover part of the financial gap and make a Diversion payment possible. Only if supplemental benefits plus a Diversion payment do not meet the family’s needs during a Diversion period, should the CAO count income expected to arrive within the Diversion period. For example, an expected tax refund may not arrive timely or in the amount needed to help a Diversion payment meet the needs but regular child support payments or dependable income from an existing part-time job can count as reliable income.
5. If the applicant meets Diversion requirements:
Discuss with the applicant the option of a Diversion payment, and
Authorize Diversion, if appropriate.
EXAMPLE: The CAO narrates reasons that Rick and Sandy Range apply for cash assistance for their family. After the couple exhausted unemployment compensation benefits, they started temporary part-time jobs, which have ended. Rick and Sandy plan to start work at a new factory opening in three months. The CAO determines the family eligible for TANF and Diversion. After the CAO explains Diversion, the couple chooses Diversion. The CAO authorizes a three-month Diversion payment and narrates.
6. If the applicant is not eligible for Diversion or opts not to receive Diversion: Authorize TANF.
EXAMPLE: Traci Banks, with two sons, applies for cash benefits. The CAO asks the reason/specific needs prompting her application; determines TANF eligibility; and, narrates. For the past eight months, since her sons’ father beat and stalked her, Traci has not worked at her long-standing waitress job. She moved her family to another town but is afraid to work because the stalking continues. Her parents cannot continue providing funds. After determining ineligibility for Diversion, the CAO authorizes TANF benefits and narrates accordingly.
COLLECT VERIFICATION
Verification to determine Diversion eligibility should clearly define the short-term needs of each applicant family. For this reason, the CAO should provide the family a detailed verification checklist/due date -- and stress that Diversion benefits cannot be authorized without these items. Acceptable verification includes, but is not limited to:
For Income or Current/Recent Work History: Check stubs for earned/ unearned income; checking/savings account statements; Domestic Relations child support statement; dated check stubs to show wages; employer statement to pinpoint recent/current employment or show date of end of maternity leave.
For Financial Needs: Work expenses, such as uniforms or tools; transportation expenses, such as car repairs, inspection, car payment, insurance premiums; child care costs; housing expenses, such as mortgage payments, rent, home repairs, utilities; costs to relocate to secure employment.
It is important for the CAO to require third-party statements from relatives or community organizations assisting the family during the Diversion period. This assistance, covering specific financial gaps, can pinpoint what remains to be covered with a Diversion payment.
NOTE: The CAO is not required to verify a family’s anticipated self-sustaining income expected at the end of the Diversion period. However, a family’s voluntary verification may help determine the length and nature of a short-term need. This verification can include: employer statement with date of return/start of work; date/amount of first check or expected pay.
EXCEPTION: In rare situations, the CAO may count income expected to arrive after the maximum three-month Diversion period. For example, a family with a financial crisis spanning four months would not be eligible for Diversion because a maximum three-month Diversion payment cannot meet their entire need. However, if the family verifies that a third-party will cover the needs for the fourth month, a three-month Diversion payment may meet their needs.
EXAMPLE: The CAO interviews Mia Stover, who requests Diversion for herself and toddler daughter. As Mia explains, her needs extend four months, from July through October, until her job start in early November. The CAO tells Mia a maximum Diversion period, covering three months, can meet her July, August, and September needs –- but not the October needs. For this reason, the CAO cannot authorize Diversion unless Mia finds a way to cover the October expenses. Mia contacts her new employer, who provides a statement that, on October 1, she will receive a signing bonus, enough to meet October needs. The CAO can authorize Diversion.
OFFER PROGRAMS AND SERVICES
The CAO will review advantages of programs, supplemental benefits, services, and special allowances available to Diversion applicants – plus employment and training requirements for all benefits. When a Diversion payment alone cannot cover the applicant family’s financial needs during the Diversion period, this additional help may fill the remaining financial gap and enable the CAO to authorize Diversion. See Chapter 138, Allowances and Benefits; Chapter 183, Child Care; Chapter 135.6.
Before deciding if supplemental benefits from a community agency are viable, the CAO must receive verification of the date, exact nature, and quantity of benefits.
The CAO only will make a referral to CareerLink’s New Directions/Diversion Initiatives Program if an individual meets Diversion criteria and opts to receive Diversion. Special allowances, such as mileage reimbursement to CareerLink, are not available to an applicant whose only Department benefit is Diversion. However, the CAO can pay mileage for travel to CareerLink if a Diversion recipient also is a SNAP RESET recipient.
EMERGENCY SHELTER ALLOWANCE (ESA) for rent or emergency shelter. See Section 138.8.
NOTE: The CAO can authorize an ESA to an individual/family who already received a Diversion payment to resolve a housing crisis within the 12-month period prior to the request for ESA.
LOW-INCOME ENERGY ASSISTANCE PROGRAM (LIHEAP) for help with heating fuel and utility bills. See LIHEAP Handbook .
SNAP BENEFITS to assist with grocery bills and to receive supportive services accompanying food stamp benefits (child care, clothing to accept work, and transportation help). When a family applying for Diversion considers SNAP benefits, the CAO must complete an Employment Development Plan (EDP) and explain the mandatory SNAP RESET requirements, including a 60-day job search. See Chapter 138, Allowances and Benefits; Chapter 180, Issuing Benefits; Section 580.8 in SNAP Handbook.
MA to help pay medical bills or prevent medical debt. See Medicaid Eligibility Handbook. Diversion can be opened without closing an MA budget. While processing a Diversion NCE payment, the CAO should not delay a medical assistance eligibility determination or disrupt medical coverage.
CHILD CARE SUBSIDY to help pay child care, through the Child Care Information Services (CCIS) Agency. See Letter of Potential Eligibility for Child Care Subsidy (PA 1696) and Chapter 183,Child Care.
NOTE: Adding other benefits can reduce a three-month FSA to a two-month FSA or a two-month FSA to a one-month FSA.
EXAMPLE: In mid-September, Terri Landers and toddler twins apply for a Diversion payment for September and October needs until her November 1st job start. The family receives SNAP and already paid September rent, plus a few bills. A Diversion payment must meet remaining September needs and all October needs, including rent, due October 1. The landlord stressed that another late rent payment means eviction. The CAO authorizes an ESA for October rent, enabling a September Diversion payment to meet all needs until the November job start.
OFFER OTHER COMMUNITY RESOURCES
The CAO discusses community services with the applicant to assist with short-term needs and prevent another family financial crisis. Community referrals and CAO recommendations include but are not limited to: Consumer Counseling and Budgeting Services; Child Care Network; Domestic Relations; Homeowner’s Emergency Mortgage Assistance Program (HEMAP) at (800) 342-2397; Housing Authority; Legal Services; Women Infants and Children Program (WIC), etc.
NOTE: On the Diversion Agreement Form (PA 1793), it is important that the CAO jot down supplemental benefits and community services explained to the applicant.
DIVERSION VS. TANF
With information from the CAO during the face-to-face interview, an applicant family must make an informed decision about which benefit best covers specific needs during the financial gap.
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DIVERSION |
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TANF |
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NOTE: See overpayment requirements on the AMR (PA 1661), stating that recipients will repay all or a portion of the Diversion benefit to DPW through a reduction of the monthly TANF grant by up to five percent.
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-- At Diversion application: TANF rules apply -- Future eligibility: TANF rules apply
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-- At TANF application: TANF rules apply -- Future eligibility: TANF rules apply.
NOTE: Receipt of TANF creates automatic eligibility for the earned income disregard if the applicant starts working while receiving TANF.
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NOTE: The CAO may need to help the family determine if a food stamp special allowance or a Diversion payment is the best choice to meet the family’s unique financial needs. The CAO weighs advantages of both and keeps in mind that food stamp RESET requires a 60-day job search.
The Diversion Agreement Form (PA 1793) serves as the AMR for Diversion recipients. An applicant who only wants Diversion does not need to complete the TANF Agreement of Mutual Responsibility (PA 1661).
The following individuals must sign the Diversion Agreement Form: Anyone required to sign the Application for Benefits and required to sign the AMR to receive TANF. This includes ES budget group members who meet Diversion criteria; the payment name if different from the applicant; budget group members, age 18 years or older; and, those considered as emancipated minors.
PURPOSE OF DIVERSION AGREEMENT
Document applicant’s informed decision regarding Diversion and TANF.
Refer individuals who would benefit from services from CareerLink to the local CareerLink office. See CAO Responsibilities below.
Document community services discussed with applicant .
CAO RESPONSIBILITIES
Explain eligibility requirements and objectives of Diversion Program.
Help applicant determine need for other services at the CAO.
Recommend community services beneficial to the applicant family. The CAO will document on the Diversion Agreement Form what specific agencies where the family may qualify for services.
Refer those who would benefit from CareerLink services to the local CareerLink office for assistance with employment and to learn about more available services.
NOTE: For Diversion, the CAO is not required to follow up a CareerLink referral. The CAO will provide a brochure (TPCL-6) explaining CareerLink services and make a system referral. CareerLink will send the recipient a letter to attend a meeting to discuss employment and available services. The CAO excludes from a CareerLink referral any recipient currently participating in a RESET retention component. An employment and training contractor already serving that recipient should assist with the family’s short-term needs.
APPLICANT RESPONSIBILITIES
Explain and verify short-term financial need and plans to support family without applying for TANF.
Use Diversion payment for specific financial need(s) presented in the application for Diversion.
(If referred to CareerLink office) Attend meeting at CareerLink to discuss employment possibilities and other services.
Sign and date to acknowledge that the CAO explained the Diversion Program—and that the applicant understands, if determined eligible for Diversion, he/she will either:
Choose, as marked on the Diversion Agreement Form, a Diversion benefit not to exceed three months. This includes acknowledging that the applicant may not receive cash assistance during the Diversion period; may not receive another Diversion benefit for 12 months from the date the Diversion benefit authorization, as noted on the Notice of Eligibility; may keep any child support received during the Diversion period or,
Choose cash assistance rather than Diversion benefits at this time.
AUTHORIZE IN 30 DAYS
A 30-day time frame exists to authorize Diversion, the same as TANF. The CAO should assist the applicant in applying for supplemental benefits and, if possible, hasten the time frame to help make the best use of a Diversion payment.
A delay in eligibility-determination for supplemental benefits should not delay authorization of Diversion – the same as a third party delay does not hold back authorization of cash benefits. Timely authorization ensures the applicant family’s financial requirements are covered and helps prevent a later need for TANF.
NOTE: If an applicant does not provide pending information for Diversion, and the 30-day authorization time frame has expired, the applicant may reapply for TANF or Diversion at any time.
DETERMINE NEED
To calculate the total short-term financial gap during the Diversion period, the CAO will review verification for each item of need.
Examples of financial needs (including but not limited to): Work expenses (such as uniforms or tools); transportation expenses (such as car repairs/inspections, car payment, insurance premiums); child care costs; housing expenses (such as mortgage payments, rent, home repairs, or utilities); costs to relocate to secure employment.
Verification of financial needs: Bills, creditor letters, landlord payment book, etc. If verification of the need already exists in the case record, the family is not required to duplicate the verification to qualify for a Diversion payment.
NOTE: A family’s Diversion payment for one, two, or three months may exceed the verified financial need. The CAO considers these excess Diversion funds as available for the family’s unexpected or unspoken needs.
REMINDER: A Diversion payment, alone or added to other assistance (such as food stamp benefits, Medical Assistance, supplemental benefits, or help from a third party) must meet the total need. If not, the CAO cannot authorize Diversion.
SUPPLEMENT A DIVERSION PAYMENT
The CAO will weigh effectiveness of supplemental benefits and community resources chosen by the applicant family. This includes help from a third party. The combined supplemental help must be able to cover whatever needs that a Diversion payment, alone, cannot cover during the Diversion period.
NOTE: Capturing all expenses during the Diversion period can eliminate the family’s need for TANF later. Reviewing eligibility for available programs and services helps determine if a Diversion payment can meet the total financial need. Before deciding if a community agency’s supplemental benefits are viable, the CAO must receive verification of benefit date, exact nature, and quantity.
The CAO will subtract the value of supplemental benefits—whether in funds or “in kind”—from the total family need. This determines the remaining financial need that the Diversion payment must cover.
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ADDED BENEFITS TO DECREASE NEED The CAO offers supplemental benefits to decrease the family need. This enables a Diversion payment to cover remaining needs.
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EXAMPLE: A Diversion payment for April and May cannot cover the Selick family’s need. The CAO offers SNAP benefits, MA, and community service referrals to cover some needs. This enables a Diversion payment to meet remaining needs. |
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REFUSAL OF SNAP BENEFITS If an applicant does not want food stamp benefits, the CAO considers the funds needed for food during the Diversion period as part of the family’s total financial need. |
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EXAMPLE: Sheri Rush and children apply for an August Diversion payment to cover food and a car payment. Sheri refuses SNAP benefits. A Diversion payment covers the car payment but the family still needs $200 for food. A church food bank verifies it will provide needed groceries, equivalent to $200. The CAO can authorize Diversion.
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HELP FROM THIRD PARTY If the family’s financial need exceeds the lump sum maximum FSA for three months, the applicant may be eligible for Diversion by verifying that a third party will pay the difference. |
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EXAMPLE: Lily Richards, on maternity leave, needs a Diversion payment to cover three months of expenses until her return to work. Lily exhausted all employer benefits but medical. A three-month Diversion payment falls short $400 to meet the needs. Lily’s aunt verifies she will provide the $400. The CAO can authorize Diversion.
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“IN KIND” BENEFITS An applicant may choose ”in kind” supplemental benefits, such as bags of food or clothes. The CAO must determine if “in kind” help meets a specific need in the Diversion period. If so, the CAO subtracts the estimated dollar amount of “in kind” benefits from the total need. If not, the CAO must calculate what funds still are required. |
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EXAMPLE: “In kind” benefits covering need Toby and Ann Jenkins, with three teen sons, need a Diversion payment for July and August rent, utilities, plus school clothes and shoes. Diversion falls short $325. Toby lists clothing and shoe items, with their value, if bought new. Clothing is $200; shoes are $150. A thrift shop verifies it will provide “in kind” payment to meet all clothing and shoe needs. By covering the total need, this “in kind” payment is worth $350 – which more than meets the $325 gap not covered by Diversion.
EXAMPLE: “In kind” benefits not covering need . In the example above, the thrift shop can provide the school clothing but not the shoes, valued at $150. Unless the Jenkins can cover this need, the CAO cannot authorize Diversion.
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TEMPORARY EMPLOYMENT One way an applicant can find needed funds to make a Diversion payment possible is to seek temporary employment during the Diversion period, until the new job starts. |
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EXAMPLE: Jen Lawson applies for a three-month Diversion payment until she finishes training as a lab technician and starts work. The Diversion payment falls short $400 to cover her family’s needs. Jen decides to work weekends as a waitress until training ends. The employer verifies Jen’s income should be $450 during the Diversion period. The CAO can authorize Diversion. |
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COUNTING INCOME WHEN DETERMINING DIVERSION ELIGIBILITY
IS THE FAMILY ELIGIBLE FOR TANF?
When determining if a family is eligible for Diversion, the CAO will treat income the same for Diversion as for TANF – and count both earned and unearned income in the eligibility computation. To be eligible for Diversion, a family must meet all TANF eligibility requirements, including income eligibility. This means the CAO will count income expected within a Diversion period, for example, from a part-time job, an unearned-income benefit source such as unemployment compensation benefits, etc. See Chapter 150, Income.
EXCEPTION: When determining TANF or Diversion eligibility, the CAO does not count SSI benefits.
WILL THE DIVERSION PAYMENT COVER THE NEEDS?
After determining a family is eligible for TANF, the CAO must determine If the amount of a Diversion payment – plus all available supplemental benefits and “countable” income expected within the Diversion period -- can cover needs during the Diversion period. If not, the CAO cannot authorize a Diversion payment.
NOTE: If a Diversion payment cannot cover needs in the Diversion period, the CAO can count expected SSI income to help cover the needs.
WHEN DOES INCOME EXPECTED WITHIN A DIVERSION PERIOD COUNT TOWARD COVERING NEEDS?
The CAO should consider income expected within a Diversion period on a case by case basis. Reliable income from an established part-time job, for example, can be counted as helping a Diversion payment meet the family’s need.
Generally, the CAO will not count “uncertain” income anticipated within the Diversion period as helping to meet the family’s needs. Uncertain income, by definition, may have a dubious arrival date, may come in an unknown amount, or may derive from an unreliable source. The income may be one-of-a-kind, sporadic, or questionable. If the CAO counts this income but it never arrives—or arrives in a smaller amount than anticipated -- the family’s financial crisis likely will not be resolved.
NOTE: Uncertain income expected within a Diversion period may be counted if this income helps make a Diversion payment possible. When counting income anticipated to arrive within the Diversion period as helping to meet the family’s need – the CAO should proceed with caution and count this income if it will make a Diversion payment possible. The CAO should request verification of approximate amount and arrival date of the income.
EXAMPLE: The CAO authorized a September Diversion payment for Eric Braden, wife Kate, and three daughters to meet needs until Eric’s job start in early October. The CAO counted Kate’s small monthly earned income from her job cleaning houses as helping to meet the family’s needs during the Diversion period. The CAO did not count Eric’s “uncertain” $500 inheritance from his uncle’s estate, expected sometime within two months.
If the CAO does not count uncertain income within a Diversion period as helping to meet the needs, but it does arrive, these funds are considered as helping to meet the family’s unspoken or unexpected needs. The CAO makes no adjustment for this income.
DOES INCOME ANTICIPATED AFTER THE DIVERSION PERIOD EVER COUNT TO HELP COVER NEEDS?
In most cases, the CAO will not count income anticipated to arrive after the Diversion period. However, in rare situations, the CAO may count this income if it will help resolve the financial need and make a Diversion payment possible. It is important to use discretion in individual cases and require the family to provide verification that the income will arrive timely and in the amount needed to help resolve the financial gap in the Diversion period.
EXAMPLE: Missy Davis and four children need Diversion for October utilities and rent. A Diversion payment only covers utilities. The landlord verifies his permission to wait to pay the October rent on November 20, after Missy receives a one-time retirement check from her previous job, as documented by her former employer. The CAO can authorize the October Diversion payment, now only required to cover utility bills.
COUNTING INCOME WHEN CALCULATING DIVERSION PAYMENT AMOUNT
When calculating a Diversion payment amount, the CAO does not consider or subtract a family’s earned or unearned income. A Diversion benefit always equals a full FSA of one, two, or three months,depending on the length of the financial crisis. The Diversion payment amount equals the appropriate FSA for the family size, multiplied by the number of months the Diversion period extends. The county of residence determines the FSA amount. See Appendix B, Chapter 168, Family Size Allowance.
EXAMPLE: The CAO determined a three-month Diversion payment will cover a $1,900 need during October, November, and December for the Tabor family of six. To make this determination, the CAO checked Chapter 168, Appendix B, of the Cash Assistance Handbook. The county of residence is in Group 2. A one-month FSA is $670 for a family of six. The Tabors need a three-month FSA, so the CAO multiplied $670 by three, for a Diversion payment of $2,010. This meets the $1,900 need.
EXAMPLE: Rob and Sally Carmel and two children are eligible for a July Diversion payment, which is a full month FSA for four people. The CAO does not subtract Sally’s $150 monthly income from her part-time job.
NOTE: Because the CAO does not adjust income when determining the Diversion benefit, the $10 monthly minimum payment criteria, normally a requirement at application for TANF, does not apply.
REMINDER: When determining income and resource eligibility for MA and SNAP benefits (including expedited food stamps), the CAO will exclude a Diversion payment.
The CAO will issue Diversion benefits to eligible families by EBT. If the applicant does not have an EBT account, the CAO will explain the EBT process and issue an EBT card.
NONCONTINUOUS ELIGIBILITY (NCE)
Unlike most NCEs, the Diversion NCE has the same begin and end date.
Program Status Codes determine the length of the Diversion period are: PSC 47 (one month), PSC 48 (two months), PSC 49 (three months).
NOTE: During authorization of Diversion, a MA eligibility determination should not be delayed or medical coverage disrupted. Diversion can be opened without closing an MA budget.
REMINDER: The length of the Diversion NCE is one day, with the same begin and end date.
EXAMPLE: On August 12, the Conrad's apply for a two-month Diversion payment. The begin and end date of the NCE for Diversion is August 12 (application date) but the Diversion period is August 1 through September 30 – two full months.
SUPPLEMENTAL BENEFITS
When authorizing supplemental benefits, the CAO will set the goal to cover the applicant family’s financial gap efficiently and timely. If possible, the CAO, first, will authorize supplemental benefits, including MA and SNAP benefits, depending on the applicant’s choices and eligibility. This way, the CAO will know the family’s remaining needs that a Diversion payment must cover.
According to individual CAO procedures, authorization of supplemental benefits may be the responsibility of the caseworker handling Diversion or another caseworker who customarily processes specific supplemental benefits.
AUTHORIZATION MONTH
AUTHORIZATION IN MONTH OF APPLICATION
If an applicant family is eligible for Diversion in the month of application, the CAO uses the date of the application as both begin date and end date of the NCE, whether the Diversion payment covers one, two, or three months.
EXAMPLE: On December 13, Robin Masters and teen daughter apply for Diversion to cover December and January needs until Robin’s small daycare opens February 5. The CAO authorizes a Diversion payment as an NCE with begin and end dates of December 13 (application date) and a Program Status Code of PSC 48 (two months).
NOTE: The FSA used to determine the amount of a Diversion payment varies according to county of residence. See Appendix B, Chapter 168, Family Size Allowance.
AUTHORIZATION IN MONTH FOLLOWING APPLICATION MONTH
A family may not be eligible for Diversion in the application month if the family does not meet eligibility requirements for TANF or already has received TANF benefits during that month. If a family does not qualify for Diversion in the application month but does qualify the following month, the CAO will make the following month the first month of the Diversion period.
REMINDER: If the family is eligible for Diversion during the month following the application month, the CAO uses the first day of the second month as both the begin and end date of the NCE, whether the grant is for one, two, or three months. Current procedures to issue future NCEs apply. The CAO needs to consider deadline dates to process the NCE.
EXAMPLE: On June 3, Suzi Allen applies for Diversion for herself and son to cover June and July needs. Her June income, including three weeks of pay from her last job, exceeds the TANF income limit. The family is eligible for Diversion in July. The CAO authorizes Diversion as an NCE with a begin and end date of July 1 (first day of the month following the application month) and a Program Status Code of PSC 47 (one month).
PROGRAM STATUS CODES
The Program Status Codes (listed below), which accompany categories C and U, determine the length of an NCE. See Section 137.561.
PSC 47: One month of Diversion (one month FSA). If the family need is equal to/or less than one month FSA.
PSC 48: Two months of Diversion (two months FSA). If the family need is greater than 1 month FSA but equal to/or less than 2 months.
PSC 49: Three months of Diversion (three months FSA). If the family need is greater than two months FSA but less than/or equal to three months FSA.
NOTE: It is important that both the CAO and the applicant accurately determine the Diversion period before data entry. A Diversion recipient submitting verification of additional need after authorization cannot extend the Diversion period -- or receive another Diversion payment until 12 months from the NCE begin date. However, if the CAO, in error, enters an incorrect Program Status Code, the CAO can authorize additional month(s) of Diversion.
EXAMPLE: APPLICANT REQUESTS EXTRA DIVERSION MONTH
Melody Tanner and two children receive a Diversion payment to cover February and March needs until her April job start. The CAO authorizes a two-month Diversion payment as an NCE with a begin and end date of February 13, the date of application. The CAO enters Program Status Code, PSC 48 (two months). A week after authorization, Melody tells the CAO her job will not start until May and asks for another month of Diversion. The CAO cannot extend Diversion. Melody cannot receive a Diversion payment again until February 13 of next year.
EXAMPLE: CAO ENTERS INCORRECT PROGRAM STATUS CODE
In the example above, the Tanners request a Diversion payment for the maximum three months. In error, the CAO enters the incorrect status code of PSC 47 (one month of Diversion) instead of PSC 49 (three months of Diversion). Because CAO error resulted in a smaller, incorrect Diversion payment, the CAO may authorize the additional two months of Diversion using PSC 49 (maximum three-month Diversion benefit) and any of the approved Reason Codes.
NOTE: If the family’s need is greater than a three-month FSA, but the family verifies the balance of the needed funding is available from another source, the CAO can authorize a three-month maximum Diversion payment by using PSC 49.
CAREERLINK REFERRAL
For an NCE budget with a PSC 47, 48, or 49, the CAO can create a system referral to CareerLink, by data entering an A project on ETP project enrollment screen with an Activity Code of 01 on CXIETP.
The CAO makes CareerLink referrals for individuals who would benefit from a referral and who volunteer, even though these individuals already may be employed. The CareerLink office will enter a Termination Code in the CareerLink system, which will populate a Termination Code on CSIETP. A CIS modification will close CSPREN when CSIETP closes.
After 90 days, if CareerLink does not make a data entry, both CSIETP and CSPREN will terminate automatically. The CAO will not receive any alerts with termination of CareerLink activity for Diversion. CareerLink will generate a report to headquarters with the number of referrals made from Diversion and the outcome of these referrals.
NARRATIVE
Both in the narrative and on the Diversion Agreement (PA 1793), the CAO notes that the applicant chose Diversion to meet the family’s short-term financial needs. For quality-control purposes, the CAO narrates all relevant information supporting the decision to authorize Diversion.
Suggested Narrative Entries: Include the following: details of screening and reason for application; statement that applicant family is eligible for TANF and Diversion, including information supporting Diversion eligibility determination; notation of CAO explanation and applicant signature on Diversion Agreement; notation of other forms; explanation of supplemental benefits the family chooses; items verification checklist; any other pertinent information related to the specific applicant.
REAPPLICATION
The purpose of Diversion is to solve a family’s short-term financial crisis. Diversion is not designed to use yearly to pay ongoing or recurrent expenses. A family receiving a Diversion payment must wait a full 12 months to receive Diversion again. The next 12-month period begins with the date of the NCE of the previous Diversion payment – no matter if the Diversion period is one, two, or three months.
EXAMPLE: Molly Banks and toddler daughter receive a Diversion payment for May and June. The begin and end date of the NCE is May 4 (the date of the application). Molly will not be eligible for another Diversion payment until May 4 of next year.
EXAMPLE: In the above example, on May 4, Molly applies for Diversion but is not eligible until June. The CAO authorizes a one-month Diversion payment for June – an NCE with a begin and end date of June 1 (the first day of the month following the month of application). Molly will not be eligible for another Diversion payment until June 1st of next year, although her original Diversion application was May 4.
REQUIREMENTS
The following Program Status Codes (PSC) apply to TANF C and U categories:
47 = Diversion, one-month FSA
48 = Diversion, two-month FSA
49 = Diversion, three-month FSA
System edits on CIS allow EDBC to determine non-financial and income/resource eligibility for Diversion. If a family is eligible for a Diversion payment, the CAO will enter an NCE on Case Non-Financial Program Request for a one-day period. The PSC entered on CACOMP determines the number of months of the Diversion benefits and pre-populates the NCE amount.
NOTE: If the family’s need is greater than a three-month FSA, but the family verifies the balance of the needed funds is available from another source, the CAO may enter PSC 49 to authorize a maximum three-month Diversion payment.
CIS DATA ENTRY PROCEDURES
The system will determine the monthly FSA amount. The NCE payment will equal a full FSA, up to a maximum of three months. The system will not take into account or make adjustments for income received at application or expected during the Diversion months. The Diversion payment is not subject to the $10 monthly minimum payment criteria.
PROGRAM STATUS CODES (PSC) 47, 48, or 49
Enter PSC 47 on Case Non-Financial -- If the family’s need is equal to or less than 1 month FSA:
Enter PSC 48 on Case Non-Financial – If the family’s need is greater than 1 month FSA but equal to or less than 2 months FSA:
Enter PSC 49 on Case Non-Financial -- If the family’s need is greater than 2 months FSA but less than or equal to 3 months FSA:
REASON CODES
Available codes are listed on the Systems Reference Table as TCVN.
If multiple reasons exist for the need for Diversion, the CAO should choose the primary one. Reason codes are as follows:
|
CODE |
DESCRIPTION |
|
01 |
Relocation |
|
02 |
Work Related Expenses |
|
03 |
Transportation Issues |
|
04 |
Child Care Issues |
|
05 |
Housing Issues |
TYPES OF NOTICES
One Notice for Eligibility: For an applicant who is eligible for Diversion, the CAO sends a notice of eligibility for Diversion but does not send a separate notice of ineligibility for TANF.
One Notice for Ineligibility: For an applicant who would have been eligible for Diversion, pending receipt of verification, which the applicant never provided, the CAO sends a notice of ineligibility for Diversion.
Two Notices for Ineligibility: For an applicant who applies for but is not eligible for Diversion because the family is not eligible for TANF, the CAO sends two notices—an ineligibility notice rejecting TANF and an ineligibility notice rejecting Diversion.
CIS NOTICES
From Execute Eligibility the CAO generates appropriate notices of eligibility or ineligibility for Diversion or TANF. The CAO notice sent depends on the applicant’s choice of benefits, as noted on the Diversion Agreement Form (PA 1793).
Eligible = 678
Ineligible = 679
SCREENS
DATA ENTRY EXAMPLE:
On May 2, Joy Day and two sons apply for Diversion until her job start in two months at a new factory locating in town. The Days need funds for two-months of rent and a car inspection. Joy’s parents are supplying all other needs, including food. See below.
Program Request: The CAO determines the Day family is eligible for Diversion in May. The NCE begin and end date is the application date, May 2. If Joy were not eligible until June, the NCE begin and end date would be June 1.
N = NCE action C= Category
Case Non-financial Program Request Question: The CAO determines the Program Status for the Day family is 48 because the family’s need spans a two-month period and requires a two-month FSA.
Eligibility Results Screens: Reason Code 678 denotes eligibility for Diversion benefits and generates the appropriate notice.
A Diversion overpayment will occur in the following situations:
Receiving TANF or General Assistance (GA) benefits within a Diversion period.
Receiving a Diversion payment in a month containing any days when a recipient received cash assistance.
Receiving more than one Diversion payment in a Diversion period (by same ES relative).
Receiving more than one Diversion payment in 12 months.
NOTE: When TANF and Diversion benefits overlap, the CAO will calculate the resulting Diversion overpayment for full calendar months. To enter the overpayment for Diversion, the CAO will use Reason Code 59. See ARRC Data Entry Procedures in Using ARRC.
OVERPAYMENT BEGIN DATE
If Diversion and cash assistance benefits overlap in the same month, the overpayment begins on the first day of the Diversion month in which cash assistance is authorized -- through the last day of the Diversion period.
EXAMPLE: Terri Hughes and infant son receive a Diversion payment for the Diversion period, April 1 through June 30. Terri spends Diversion funds, moves to another county, and receives ongoing TANF benefits beginning May 15. This means the new CAO, in error, authorized TANF benefits in a Diversion period. Terri’s situation does not qualify as an exception. See Section 137.521. The new CAO files a Diversion overpayment from the first day of the Diversion month that overlaps the TANF benefits (May 1) through the end of the Diversion period (June 30).
NOTE: When a family moves to another county where the new CAO, in error, authorizes benefits resulting in a Diversion overpayment, the new CAO is responsible for handling the Diversion overpayment and contacting the first CAO for relevant details of the case.
PAYING DIVERSION OVERPAYMENT AND RE-APPLYING FOR DIVERSION
Although a recipient family has paid a Diversion overpayment in full, the CAO may not authorize Diversion again until the 12-month time frame from the original date of the Diversion application has expired.
EXAMPLE: The CAO files a Diversion overpayment because the Lyon family received both Diversion (April 17 application date) and TANF benefits in April. The Lyons pay the overpayment in full, and their TANF benefits end in June. Later that year, the Lyons apply for another Diversion payment and tell the CAO they are entitled because they paid back the April Diversion overpayment. The CAO cannot authorize Diversion for the Lyon family until April 17 of next year (application date of the original Diversion payment).
WHEN TO FILE AN OVERPAYMENT
RECEIVING DIVERSION, THEN CASH ASSISTANCE DURING SAME MONTH(S)
The CAO may authorize cash assistance benefits in a Diversion period in error – or may make a valid exception. See 137.521. In either case, the CAO must file an overpayment.
EXAMPLE: The CAO authorizes a Diversion payment for Mary Burns and two children to cover February, March, and April needs. On March 10, the family applies for TANF and verifies their home flooded the previous day. With BETP approval, the CAO determines the family’s situation is an exception, authorizes TANF, informs Mary of an overpayment for March 1 through April 30 (two full months of Diversion).
RECEIVING TANF, THEN DIVERSION IN SAME MONTH
To be eligible for Diversion, an applicant family cannot have received cash assistance any days in the Diversion application month. The family may be eligible for Diversion the following month.
EXAMPLE: When Abby Web and son move to another county, she requests her TANF benefits be closed. Abby’s last semi-monthly TANF check covers five days in July. In the new county, Abby receives a Diversion payment to cover July needs until her new job start. Because the family already received TANF benefits for five days in July, the new CAO should not have authorized a Diversion payment for July. The new CAO files an overpayment from July 1 through 31 (1 full month of Diversion).
RECEIVING OVERLAPPING DIVERSION BENEFITS
An overpayment occurs when a family receives a second Diversion payment within 12 months – or receives two Diversion payments in any given month.
EXAMPLE: With a January 11th application, Roger Willis receives a Diversion payment for January, February, and March needs. The same year, the family moves to another county, and the new CAO authorizes another Diversion payment for September needs. Discovering the family received two Diversion payments in 12 months, the new CAO files an overpayment for September 1 through September 30 (1 full month of Diversion). The family cannot receive a TANF Diversion payment until January 11 of next year.
WHEN NOT TO FILE AN OVERPAYMENT
NOT SPENDING DIVERSION FOR INTENDED PURPOSE
Although an applicant does not spend a Diversion payment on the specific needs indicated at application, the CAO will not file an overpayment. If the family returns to the CAO for help with original needs that Diversion should have covered, the CAO will assist the family in the best possible way.
EXAMPLE: On June 4, Sam Nickels receives a June Diversion payment to cover the $500 June rent. On June 15, Sam applies for and receives an ESA to pay the June rent to prevent eviction. Sam tells the CAO that he used Diversion funds for other expenses. The CAO can authorize ESA with no need for a Diversion overpayment.
RECEIVING UNEXPECTED INCOME IN DIVERSION PERIOD
If a family receives a Diversion payment, and unexpected income arrives during the Diversion period, the CAO will not file an overpayment. The CAO will consider this income as meeting the family’s unspoken needs.
EXAMPLE: The CAO authorizes a Diversion payment for Reggie Angus, and family to cover February, March, and April expenses. On February 20, earlier than expected, Reggie receives a $3,000 income tax refund. The CAO does not file a Diversion overpayment.
STARTING NEW JOB EARLIER THAN EXPECTED
If a new job starts earlier than expected, to give the Diversion recipient earned income during the Diversion period, the CAO does not file a Diversion overpayment.
EXAMPLE: The CAO authorizes a Diversion payment for Linda Matthews and daughter to cover September, October, and November expenses until Linda starts work at a new candy factory on December 1. When the factory opens ahead of schedule, Linda starts work on October 2. The CAO does not file a Diversion overpayment.
EXPERIENCING CERTAIN HOUSEHOLD COMPOSITION CHANGES
If a single-parent family receives a Diversion payment, and the spouse, who was not part of the Diversion household, moves back into the family -- the CAO will not file an overpayment, even if the spouse has substantial income.
EXAMPLE: Brenda Sims and children receive a Diversion payment to cover April, May, and June needs until her job start in July. A year ago, Brenda separated from husband Trevor, whose whereabouts were unknown. On May 10, Trevor unexpectedly shows up, moves in the household, and supports the family with income from his high-salaried job. The CAO does not file a Diversion overpayment.
If a parent who is an ES for a Diversion payment moves from the household during the Diversion period, the children may move into another household with an adult who was not an ES as part of the original Diversion budget group. The CAO can authorize a Diversion payment for the family with the new caretaker as the ES (if meeting all ES criteria). An overpayment will not apply.
EXAMPLE: Ray Blank is an ES for his family’s Diversion payment covering January, February, and March needs until his self-employment as an exterior house painter resumes April 1. In late January, Ray relocates to a warmer climate to paint year-round. Until he can move his children with him at the school year’s end, they live with their Aunt Jane. To meet February and March family needs until her new job start, Jane becomes the ES for a new Diversion payment. The CAO does not file an overpayment because Jane was not part of Ray’s Diversion budget group.
RECEIVING OVERLAPPING DIVERSION PAYMENTS IN ANOTHER STATE
The CAO does not file an overpayment when a family has overlapping Diversion benefits in another state.
EXAMPLE: Bea Ritter and daughter receive a Diversion payment to cover needs for October and November in another state. In late October, the Ritters move to Pennsylvania and apply for Diversion to cover November needs until Bea’s new job start. The CAO can authorize this November Diversion payment although it overlaps a Diversion period in another state.
CALCULATING OVERPAYMENTS
Because a Diversion overpayment occurs when a family receives cash assistance during a Diversion period -- a Diversion overpayment extends from the first day of the Diversion month in which TANF is authorized, through the last day of the Diversion period. This means that the recipient is responsible to pay back a full month of Diversion for each Diversion overpayment month. A Diversion overpayment is deducted from the cash assistance benefit, to be reduced by up to 5 percent, as specified in the Agreement of Mutual Responsibility (AMR) (PA 1661).
NOTE: Diversion overpayments cannot exceed a three-month period and will not overlap any other cash overpayments associated with the recipient.
DATA ENTRY OF DIVERSION OVERPAYMENTS
The CAO will file the overpayment in the ARRC system with reason code 59 via ARCAPA.
On ARCAFA, the client error field = N. The category = C or U. All Diversion overpayments are coded as administrative error, so the overpayment can be recouped from the TANF grant at a rate of five percent.
The automated screen progression will pass the claim of to a new screen, ARCADV CAO must enter the begin date of the overpayment, which is the first day of the month that TANF is authorized within the Diversion period. The CAO must enter the end date of the overpayment, which is the last day of the Diversion period.
Rei sued September 21, 2012; replacing January 31, 2012; reviewed October 7, 2013