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DEPARTMENT FOR AGING AND REHABILITATIVE SERVICES AUXILIARY GRANT PROGRAM NON-SSI RESOURCE ELIGIBILITY 11/18 CHAPTER E PAGE 39 This is a penalty, not the recoupment of an overpayment, and is not subject to overpayment procedures. Exception No penalty applies if, as of the first day of the month in which the excluded funds were used for another purpose, the individual's resources would not have exceeded the limit even if the burial funds were not excluded. 18.3.1.1. Computing the Penalty Use the following procedure to compute and apply the penalty.

Steps Computing the Penalty Actions Step 1 Determine the individual’s countable resources as of the first moment of the first day of the month in which the funds were used for another purpose. Do not apply the Burial Fund Exclusion to the burial fund from which the funds were taken. Step 2 Compare the total resources to the resource limit. If the countable resources are equal to or less than the limit, there is no penalty. If the countable resources exceed the limit, there will be a penalty. Go to Step 3. Step 3 Determine the amount of excluded funds that were used. The penalty only applies to the use of excluded funds (including excluded interest). If the fund included excluded and non-excluded funds, assume the funds were used in the following order: non- excluded interest, non-excluded originally designated