7 CFR § 273.10(d)(2)-(4)

Determine expenses for the month using expenses that represent the EDG’s anticipated expenses. 

Anticipating Expenses

7 CFR § 273.10(d)(4)

Allow expenses reasonably certain to be billed during the benefit period.  

Billed Expenses

7 CFR § 273.10(d)(2)

Allow expenses only in the month they are billed or otherwise become due, regardless of when the EDG intends to pay the expense. 

Exception:  See Averaging Expenses.

Expense Conversion 

7 CFR § 273.10(c)(2)(i) and (d)(5)

Convert expenses billed more often than monthly to a monthly amount. Conversion factors are:

• The average weekly amount multiplied by 4.3
• The average bi-weekly amount multiplied by 2.15
• Billed twice a month (semi-monthly) multiplied by 2

Averaging Expenses

7 CFR § 273.10(d)(3)

EDGs may choose to have fluctuating expenses averaged. These are expenses usually billed at a set time but in different amounts. 

EDGs may also choose to have expenses which are billed less often than monthly averaged forward over the time between scheduled billings, or if there is no scheduled billing, averaged forward over the period the expense is intended to cover. 

One-Time Expenses

7 CFR § 273.10(d)(3)

EDGs may choose to have one-time only expenses: 

• allowed in only one month, or
• averaged over the entire benefit period in which they are billed. Averaging begins the month the change is effective.

One-Time Medical Expenses

7 CFR § 273.10(d)(3)

EDGs may choose to have one-time only medical expenses: 

• allowed in only one month, or 
• averaged over the remaining months of their benefit period. Averaging begins the month the change is effective.

Exception: EDGs with 24-month benefit periods reporting the medical expense in the first 12 months, have the option of averaging the expense over the remaining months of: 

• the first 12 months of the benefit period, or 
• the 24 months of the benefit period.