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DEPARTMENT FOR AGING AND REHABILITATIVE SERVICES AUXILIARY GRANT PROGRAM NON-SSI RESOURCE ELIGIBILITY 11/18 CHAPTER E PAGE 40

Steps Computing the Penalty Actions amounts, excluded interest, and excluded originally designated amounts. EXAMPLE – At initial application an individual designated $4,000 as a burial fund. The worker excluded $3,500 and counted $500. Over time interest was added to the account. The account grew to $4,200 as of April. The worker determined the amount of interest that was earned on the excluded funds was $150 and $50 on the non- excluded funds. The totals for April were $3,650 excluded and $550 non-excluded. The individual used $750 for a non-burial purpose in April. The worker determined that the $750 used consisted of $50 in non-excluded interest, $500 in non-excluded funds, $150 in excluded interest and $50 in originally designated excluded burial funds. Step 4 The penalty will equal the total of the excluded funds and excluded interest that were used. EXAMPLE - Penalty for above example - A penalty of $200 applies ($150 excluded interest and $50 originally designated excluded funds)

Step 5 Apply the penalty as soon as administratively possible. An advance notice of action must be sent. Compute the grant as normal and subtract the penalty amount from the final grant amount. If the penalty exceeds the amount of one month’s grant apply the remainder of the penalty to the following month’s grant. Continue this process until the full penalty is recovered. Reduction of the grant to zero due to the application of the penalty will not be a reason to close the case. If all other