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DEPARTMENT FOR AGING AND REHABILITATIVE SERVICES AUXILIARY GRANT PROGRAM NON-SSI RESOURCE TRANSFERS 11/18 CHAPTER G PAGE 41 If the individual does not meet undue hardship for months in the past period under Step 1, it is necessary to take into account the effect that not receiving AG would have had on the individual. Therefore, for each past month in the ineligibility period, subtract the amount of AG paid in that month from the liquid resource total before determining whether the total available funds were below the undue hardship limit for that month. Example: During a redetermination on 7/5/17, it is determined that Mr. Smith transferred a resource that resulted in a period of ineligibility that began in 3/17 and continues through 11/17. It is necessary to establish whether Mr. Smith meets the requirements for undue hardship to determine if he was due the AG payments for 3/17-6/17. Mr. Smith provides evidence that he received $700 of Title II benefits each month from 3/17-6/17. He had no other income in these months except his AG grant of $346. The worker determines that Mr. Smith's liquid resources were $800 on 3/1/17, $250 on 4/1/17 $300 on 5/1/17 and 6/1/17, and $750 for 7/1/17.  For 3/17, Mr. Smith's other income (Title II of $700) plus his liquid resources ($900) = $1600 which exceeds the undue hardship limit ($1,221- the ALF rate in this case). The worker considers the effect that not getting AG would have by subtracting $326 from $1600 which results in total available funds of $1,274 for 3/17. Since $1,274 still exceeds the undue hardship limit of $1,221, Mr. Smith is ineligible for 3/17 (an overpayment).  For 4/17, Mr. Smith's other income ($700) plus his liquid resource balance ($250) = $950. From $950 the worker subtracts the $326 AG payment which results in total available funds of $624. This balance is below the undue hardship limit of $1,221. Therefore, Mr. Smith is eligible for 4/17 based on undue hardship.  For 5/17and 6/17, Mr. Smith continues to meet the undue hardship requirement. The worker adds the other income ($700) and the liquid resource balances ($300) and subtracts the $326 AG payment, which results in a balance of $348 for both 5/17, and 6/17. Thus, Mr. Smith is eligible for both months.  For 7/17 (the current month), Mr. Smith does not meet the undue hardship test. His other income ($700) plus his bank balance ($950) minus the $326 AG payment leaves a balance of $1324, which exceeds the limit for undue hardship.