Diversion Cash Assistance (DCA)

Revised October 28, 2007

Purpose:

Key Points of DCA

Bona Fide Need - (BOND) Screen

Cash / MA Financial Eligibility - (CAFI) Screen

Subsequent DCA Payment

Supplemental DCA Payment

Key Points of DCA

Diversion Cash Assistance (DCA ) is a program to provide temporary assistance to eligible individuals to assist them in returning to work and to eliminate the need for the person to apply for TANF.
Up to $1500 DCA per household can be issued only for 1 month out of a 12 - month period.
If the client is not eligible for TANF, no DCA loan exists.
The (INCH) displays DCA if financial assistance is chosen on the (KIND) and the client would potentially be eligible for TANF.
On the (INCH), users can directly request DCA by entering [DA] in Program field and [R] in the Type field.
When entering information into ACES for a DCA case, the same information is required as for TANF or SFA except for non-custodial Parent Screen, the (WORK), and eligibility establishment date.
If a case unit contains an AU for both DCA and TANF an ELIG ESTAB DATE must be entered for the TANF AU but not for the DCA AU.
A denied DCA AU can be reopened. See Reopen.
Policy states the family must have a bona fide need which is present at the time of application or which occurs by the 30th day following the DCA begin date.
ACES counts the 30 days beginning with the day after the DCA AU begin date.
When eligibility for DCA benefits is determined to exist in the month of application, the begin date is the application date.
When eligibility for DCA benefits begins in any month after the date of the original application, the begin date is the first of that month.

EXAMPLE

Client applies for DCA on 11/05/00.
If the client is determined eligible to receive DCA for November, the begin date of DCA benefits is 11/05/00.
If client is determined to not be eligible for DCA in November, but is determined eligible on 12/03/00 the begin date of DCA benefits is 12/01/00.

Once approved, the DCA assistance unit will remain in active status for the entire 12-month time period even though assistance is authorized only for the beginning month.
DCA payments are considered a non-recurring lump sum for the food assistance program if the payment is not vendored and goes to the client.
The portion of the DCA payment that is to be counted, as a resource must be coded on the (RES1) using valid value [NL]. Record this [NL] amount only for the month the client expects to receive the DCA payment.

Bona Fide Need - (BOND) Screen

DCA payments are computed and generated based on information entered by the user on the (BOND) screen.
The (BOND) will allow users to record a client's bona fide needs, verification of need, amount of need, and future support data.
The(BOND) is an AU level screen.
DCA need amounts and authorized amounts on the (BOND) do not need to be the same.
ACES will not recalculate eligibility in any month, other than the benefit month, and for any reason, other than a change, on the (BOND).
Any other changes recorded in the AU will not result in a recalculation of eligibility.

Enter the [amount of money the client requests] in the Need Amount field.
Enter the [amount of money for the bona fide need that is being authorized] in the Auth Amount field.
The amounts entered for steps 1 and 2 do not have to be the same.
The user will be prevented from continuing to the next screen if the amounts entered in the Auth Amount field totals more than $1500.
Indicate in the Vendor field that the payment will be issued as a vendor payment. See Diversion Cash Assistance ( DCA) - DCA Vendor Payment.
A need entered on the (BOND) with a date later than the 30th day following the DCA begin date will not be included in the DCA payment.

The date entered in the Need Date field on the (BOND) can be prior to the date of application but cannot be a future date.
A need verified with the valid value CS, RE, or FA will not be included in the DCA payment.

Cash / MA Financial Eligibility - (CAFI)

The (CAFI) looks different for a DCA case.

The results of the client's bona fide needs will display on the (CAFI) in specific fields titled DIVERSION.

DCA to TANF

When a DCA recipient applies for TANF benefits, close the DCA AU using Reason Code 585 – DA Adult Eligible for TANF, Establish Loan Repayment - beginning with the month the client is eligible for TANF and each of the future months in ACES.
Before the closing the DCA AU make sure the client is eligible to receive TANF.
If the DCA AU is not closed before the TANF AU is finalized the user will receive the dual participation Edit Message 585 - Client Cannot Receive Benefits from Two AUs, Review Client Status - when trying to finalize the TANF AU.
For the user to avoid the dual participation Edit Message 585 - Client Cannot Receive Benefits from Two AUs, Review Client Status - when closing DCA in a historical month, enter an [O] in the Concurrent Receipt Cash field on the (DEM1) for each person in the AU that is now being opened on TANF.
If a case unit contains an AU for both DCA and TANF an ELIG ESTAB DATE must be entered for the TANF AU but not for the DCA AU.
ACES calculates loan repayments for DCA, when a DCA AU is closed prior to the end of the 12-month DCA period.

ACES calculates the DCA loan as follows:

Determines a monthly DCA payment amount:
Total DCA payment / 12 = monthly DCA amount

EXAMPLE

Client applies and is determined eligible for $1200 DCA with a begin date of 11/10/99.
He loses his job on 3/30/00. He is determined eligible for TANF with a begin date 5/3/00.
The DCA 12 month period of eligibility is 11/99 through 10/00. The client is approved for TANF in 5/99 so he is eligible for the DCA benefits he received 11/99 through 4/00. A loan repayment exists for months 5/99 through 10/99. Once established, this amount does not change. Even if the client goes off TANF in 7/99, the loan amount stands as originally established.
The loan calculation is:
- $1200 / 12 months = $100 per month
- O/P for 5/00 is $100
- O/P for 6/00 is $500 ($100/mo x 5 mo left in 12 mo)
- Total DCA loan amount due for repayment = $600
  < /A >

DCA Vendor Payment

Most payments for DCA are issued as a vendor payment.
Before finalizing a DCA case, users need to insure any new vendors have been assigned a vendor ID with the effective date set to the first of the month the DCA payment is be made.

To authorize a DCA vendor payment:

Enter a [Y] in the Vendor field on the (BOND) to indicate if the benefit amount authorized is to be vendored. When processing the initial DCA payment and a [Y] is entered in the Vendor field on the(BOND) ACES changes the default value in the Vendor field on the (CAFI) field to Y.
Actual vendor information, name, address etc. is entered when finalizing the case on (CAFI).
When all mandatory fields are completed on (CAFI) and the user presses <TRANSMIT> the system goes to the(VEND).
The (VEND) will be pre-filled with the authorized amount and need type information as entered on the (BOND).
After all mandatory information has been entered on the (VEND), <TRANSMIT>.
If more than one vendor payment is entered on the (BOND) another (VEND) will display.

One (VEND) will display for each vendor payment designated on the (BOND).
When money is to be issued to more than one vendor for the same type code, DO NOT COMBINE THE AMOUNTS ON THE BOND SCREEN.

The amounts must be entered separately so the correct number of the (VEND) screens display when the AU is finalized.

EXAMPLE

You are issuing $500 for child-care expenses. One bill is for $200 and the other bill is for $300 but to a different provider.

Even though these are both need type CC, the amounts must be entered as two separate entries so that the system will display two separate vendor screens in finalize.

Any part of the benefit amount left after the vendor payments are made will be sent directly to the client.
To vendor a supplemental payment the user must indicate the payment is to be vendored at the time the under payment BEG is confirmed.
On the (BEMG) enter all mandatory information then press <F16> to access the (BEGV). See Vendor Payment.

Overpayment

Close the DCA AU for all months in which the client is now approved for TANF. This means there could be historical closures as well as closing the on-going month.
The overpayment amount is 1/12 for every benefit month where DCA and TANF overlap.
Reason codes 585 / 586 has been added for DCA closures.

585 - DCA Adult Eligible for TANF, Establish Loan Repayment - For Administrative Use Only - 585 closing code has to do with setting up a repayment agreement.

586 - DCA Ineligible - has to do with not meeting other eligibility factor.

For all historical months you should see an overpayment of 1/12 of the total DCA issued.
When the on-going month is closed, the overpayment is 1/12 multiplied by the number of months remaining in the DCA certification period.
The user will have to close every month the client was not entitled for Diversion. Since the client was not entitled to DCA for reasons other than being eligible for TANF, then a regular OP letter would be sent rather than a Loan Repayment letter.
Overpayments must be processed for each month the client was not entitled to the DCA payment.
The user must process the most recent month first and work backwards to insure that the proration will be accurate.

Sanctions

A person in sanction for non-cooperation with TPL cannot receive a DCA payment for medical.
A person sanctioned from food assistance cannot receive DCA for food.
The client can, if otherwise eligible, receive a DCA payment for other need types.
ACES will not prevent the authorization of a DCA payment for food or medical needs to a person sanctioned from food assistance or for not cooperating with TPL.

IMPORTANT: In these situations it is up to the user to not authorize the payment if the client is not eligible.

NOTE:

In these situations it is up to the user to not authorize the payment if the client is not eligible.

Subsequent DCA Payment

If a subsequent DCA benefit is authorized, access the AU through Option R - Interim / Historical Change - for the benefit month of the original authorization to process the additional DCA payment.
This is necessary so ACES can track the accumulation of DCA benefits up to the $1500 limit.
Any subsequent DCA payment made after the initial authorization will display on the (CAFI ) as an underpayment.

To process the subsequent DCA payment(s):

Do not delete the first DCA entries made on the (BOND ) screen, go to the next line.
Enter the [amount of money the client requests] in the Need Amount field.
Enter the [amount of money for the bona fide need that is being authorized] in the Auth Amount field.
The amounts entered for steps 1 and 2 do not have to be the same.
The worker will be prevented from continuing to the next screen if the amounts entered in the Auth Amount field totals more than $1500.
A Need entered on the (BOND) with a date later than the 30th day following the DCA begin date will not be included in the DCA payment.
The date entered in the Need Date field on the (BOND) can be prior to the date of application but cannot be a future date.
A Need verified with the valid value [CS – Client Statement, RE – Not Verified Refused, or FA – Not Verified Failed] will not be included in the DCA payment.

To authorize any subsequent DCA payments:

Enter [CH] - Underpayment Due to Change in Situation - in the UP Reas field on the (CAFI).
This will create a BEG and the user must confirm the underissuance through the BEGs menu (BEMG) and have supervisor authorization before the benefit is generated and mailed to the client.
If a mistake is made, reduce the authorized amount, and the system will calculate an overissuance on the (CAFI ).
While on the (BEMG) screen the payment can be assigned to a vendor by pressing <F16>, displaying the (BEGV) Benefit Error Group Vendor Payment screen.

Supplemental DCA Payment

To issue a supplemental payment for DCA:

Enter Option [R] – Interim / Hist Change in the Selection field on the (AMEN).
Enter the [AU ID] in the AUID field.
Enter [BOND] in the Screen ID field.
Enter the [benefit month] in the Benefit Month (MM YY) field.
<TRANSMIT> and the (BOND) displays.
Enter the [need type] in the Need Type field.
Enter the [need amount] in the Need Amount field.
1. When money is to be issued to more than one vendor for the same type code, do not combine the amounts on the (BOND).
2. The amounts must be entered separately in order to bring up the correct number of (VEND) screens.
Enter the [amount authorized] in the Auth Amount field.
Enter the [verification code] in the V (verification) field.
Enter the [need date] in the Need Date field.
If the payment is to be vendored, enter [Y] in the Vendor field.
1. When [Y] is entered in the Vendor field on the (BOND), Y is pre-filled on the (CAFI).
2. [Vendor information (i.e. name, address etc)] is entered when finalizing the case.
Call (DONE) and <TRANSMIT> through case.

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