TN 39 (09-96)

A. Policy

The amount shown on a bill or included in an estimate which represents an arrearage is not a household cost. An arrearage is also not a household operating expense until it is paid by the household.

B. Procedure

In determining the CMV of outside ISM, deduct the amount still owed from the bill or statement. Count towards the CMV only the amount actually paid to the vendor or provided to the household.

In determining household operating expenses for inside ISM, do not include amounts the household still owes. Count only the actual cash expenditures of the household toward the food and shelter items.

C. References

• Computation of inside ISM, SI 00835.340

• Computation of outside ISM, SI 00835.350

• Household costs, SI 00835.465