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Example 2: An applicant/recipient has an IRA valued at $100,000. The applicant/recipient annuitizes the IRA and payments in the amount of $500 a month. The resource has been converted to income. This is a conversion of a resource to income making the IRA no longer a countable resource but the distributions countable as income. The IRA should be updated in the eligibility system as not available and the payments of $500 are considered income. 2605.35.00 VERIFICATION OF RESOURCES All verification of resources must be obtained from the source (for example, by the bank where the account is held) or through a source document. Verification of resources is required in all programs; however, the individual's signed statement as to the amount of cash on hand is sufficient (Refer to Section 2615.05.00). When resources are jointly owned, the portion belonging to the individual must be identified and verified. 2605.40.00 MONITORING OF RESOURCES Each applicant/recipient must be advised of the resource limits of the assistance programs and their responsibility to report any changes in the resource amounts which may affect their eligibility for assistance. Resources are verified at each redetermination and must be monitored more frequently if changes are anticipated, or resources are close to the limit. When payments are being made on real property or vehicles, the equity value may require monitoring as each payment will increase the property's equity. Special emphasis must be placed on the need for the recipient to keep their resources within the program's limits in order for assistance to continue. Additionally, workers are responsible for monitoring resources between redeterminations. In cases where resources are close to the resource limits, the cases must be flagged to alert the workers to check resources frequently or on a monthly basis when necessary. The Expected Changes Screen should be used for this purpose. Monthly monitoring of the value of resources is not required. 2605.45.00 THEFT OF FUNDS When a member, or their authorized representative, claims that the member’s income or resources have been stolen or misused it must be sent to PAL for review. To avoid imposition of a transfer of property penalty when claiming stolen or misused funds, the following actions are required: • The member must cooperate in the filing of an official police report detailing the alleged theft or