VENDOR PAYMENTS (FAM)

SR 94-04 Dated 04/94

Previous Policy

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A payment made by a person or organization on behalf of an assistance group, when the payment is made directly to another party with whom the assistance group has incurred an expense. If a payment for shelter is being vendored, see Income-in-Kind (Provided Shelter) in this section.

Treatment: Excluded Income

Exception:

• If the vendor payment is for an expense recognizable as deduction (i.e., child care), subtract the amount of the payment from the allowed deduction.

• If the payment is in excess of one month’s deductible cost, treat the excess according to its disposal:

- if it goes back to the individual, it is unearned income, or

- if it is counted as a credit toward next month’s service, subtract it from next month’s deduction.