Page 163

Page | 162 to determine the amount of lease income to be considered available to and deducted from the customer's needs.

Former recipients who had a cycle established prior to going off assistance would remain in the same cycle if eligible.

Verification at Application If the applicant reports lease in excess of $2,000 per year, or the amount of lease income is questionable, the Specialist will explain that verification is needed within 30 days and it is the applicant's responsibility to request assistance if they are unable to obtain the verification from BIA.

If the verification has not been received within the 30 days and the applicant has not requested assistance, the application may be denied. If the applicant has requested assistance, the Specialist must attempt to get the verification (signed EA-241) from BIA and proceed on a case-by-case basis to either approve or deny within Department time frames.

In some areas of the State, it may be more expedient for the Specialist to obtain the information for the EA-241 directly from BIA. Different procedures are permissible in order to handle the verification as expeditiously as possible. Verification is only required for applicants who report lease income of at least $2,000 a year, or for situations where the lease information appears to be questionable.

8702.1 Steps to Follow When Considering Lease Income Lease income is considered in two separate fiscal year cycles. First is the verification cycle July 1st through June 30th, secondly is the budgeting cycle October 1st through September 30th. For example, lease income in excess of $2,000 is to be budgeted effective October 1 through September 30 and is used from the verification cycle July 1 through June 30.

8702.2 Determining Lease Income at New Applications A. Verify lease income from the previous fiscal verification cycle (verify the amount expected to continue in the current fiscal year) if in excess of $2,000 or is questionable. B. Prorate the amount of lease income by dividing by 12 and budget this amount as unearned income in the budget for the approval month (UNEA panel using code 22) to continue in the remaining months through September 30th. On October 1st a new budget cycle begins. ACCESS will deduct $166.67 internally and will only budget the amount in excess of that figure. C. Lease income that has terminated because of land sale, transfer, etc., after the 1st of July but before the application date will be deducted from the total amount of lease income and will not be prorated in the budget process. D. Lease income received from the acquisition of land after the 1st of July, but before the application date will only be budgeted in the first regular budgeting cycle, which begins October 1st following the application date if it is in excess of $2,000. E. Verify lease income (if in excess of $2,000 or is questionable) again in July for the current fiscal verification cycle and continue the prorated share adjustment in October for the current fiscal budget year. Remember to remove income from a land sale or transfer of land since it is a lump sum resource.

Verification for On-Going Cases with Lease Amounts Greater than $2,000 or Questionable Situations The benefits specialist should begin preparation for the annual lease verification in June by preparing a list of cases which will require lease income verification. By June 15, contact should be established with those cases that do not already have a signed EA-241 (Lease Income Letter).