Page 48

UPDATED: AUGUST 1999

146

INCOME UNEARNED

RENTAL INCOME

(d) When the case record indicates that the A/R received income from rent, but s/he does not now declare that s/he is receiving it. Verification: Income from rental property may be verified in a number of ways: (a) seeing a lease or other rental agreement;

(b) Seeing documents in the A/R’s possession, including copies of bills, receipts for payments received, ledgers and income tax records may be seen;

Expenses for rental property may be verified by seeing bills or receipts for interest, taxes, insurance, utilities or repairs or by statements from the individuals or organization which received those payments. Any of the above may be cleared in writing through the usual local district procedure if the A/R is unable to provide verification. Documentation: Sufficient to establish an audit trail: (a) Name of tenants, amount and frequency of payment and document seen;

(b) Type, amount and frequency of expense and document seen;

(c) A copy of the returned clearance filed in case record.

Disposition: Rental income is determined. Business expenses are deducted to determine net rental income. This net amount is then budgeted according to the category of the A/R.

(MRG)

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Page 48

Official source

UPDATED: AUGUST 1999

146

INCOME UNEARNED

RENTAL INCOME

(d) When the case record indicates that the A/R received income from rent, but s/he does not now declare that s/he is receiving it. Verification: Income from rental property may be verified in a number of ways: (a) seeing a lease or other rental agreement;

(b) Seeing documents in the A/R’s possession, including copies of bills, receipts for payments received, ledgers and income tax records may be seen;

Expenses for rental property may be verified by seeing bills or receipts for interest, taxes, insurance, utilities or repairs or by statements from the individuals or organization which received those payments. Any of the above may be cleared in writing through the usual local district procedure if the A/R is unable to provide verification. Documentation: Sufficient to establish an audit trail: (a) Name of tenants, amount and frequency of payment and document seen;

(b) Type, amount and frequency of expense and document seen;

(c) A copy of the returned clearance filed in case record.

Disposition: Rental income is determined. Business expenses are deducted to determine net rental income. This net amount is then budgeted according to the category of the A/R.

(MRG)