Processing the SAR 7

How to Process a Complete and Timely SAR 7 with All Verifications [63-508.322]

Review and Compare

Review the report to make sure it is complete. Compare the report with the previous SAR 7 and other information in the case record for consistency.

Income Tests (for Non-CE Households)

For Non-Categorically Eligible households, determine the household's eligibility prospectively. Refer to Budgeting Concepts.

Compute the gross and net monthly income tests prospectively for the future payment period and document.

• Passed - The reasonably anticipated income for the payment period to determine the upcoming SAR Payment Period’s benefit amount.
• Not passed - Discontinue benefits and send a timely notice. Document this on the Maintain Case Comments window.

CE Households

For CE households, the gross and net monthly income tests are not required.

Budgeting

Determine the household's level of benefits based on the information reported on the SAR 7.

If budgeted income results in zero benefits for the next SAR period, discontinue the CalFresh case.

The following income and deductions must be considered:

• Earned and unearned income anticipated for the upcoming SAR Payment Period. Refer to Budgeting Concepts. for more policy information.]
• Legally obligated child support payments that will be PAID (as opposed to billed) in the upcoming SAR Payment Period. Refer to Income Deductions for more policy information.
• Other allowable deductions as billed or averaged for the SAR Payment Period. Refer to Income Deductions and Shelter Deductions for more policy information.

Action on Changes

Take prompt action on all changes.

• If the household becomes ineligible, terminate the household.
• If the household benefits will increase, the change is effective from the first month of the new SAR Payment period.
• If the household benefits will decrease, the change is effective the next payment period.

Reminder: If income changes are reported on the SAR 7 for the upcoming SAR period, the income must be anticipated for the upcoming payment period.

Note: If a household reports a change in unearned income on the SAR 7, whether the change is under or over the unearned income reporting threshold, the EW must act on the reported change and adjust the unearned income amount used to determine the household’s CalFresh budget effective the first month of new SAR period.

ExampleExample

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Benefit Issuance

Benefits must be issued by the household’s issuance stagger date to an eligible household which has provided a complete SAR 7 by 10 days before the end of the submit month.

NOA

Send a “CalFresh Notice of Change For Semi-Annual Reporting Household” (CF 377.4) if processing a complete SAR 7 results in a:

• Decrease in benefits (send the NOA 10 days before effective date of change), or
• Increase in benefits (send the NOA no later than the date the household receives benefits).

Complete SAR 7 Received After NOA Cutoff [63-508.65]

Issuance Deadline

Benefits must be issued as soon as possible to an eligible household that files a complete SAR 7 in the last 10 days of the submit month or on the extended filing date. The EW must ensure that benefits are issued within 10 days after the normal issuance date.

Before Month-End Cutoff

An IHE overissuance MUST be established when a recipient submits a late SAR 7 (after the 11th of the SAR Submit Month) which results in the household receiving more benefits than to which it is entitled because of the county’s inability to decrease benefits due to the 10-day notice requirement.

Reminder: If the SAR 7 was received timely (by the 11th of the Submit Month) but was not processed or was processed incorrectly by the county, then an AE overissuance must be established if the household received more benefits than to which it was entitled for the SAR Payment Period. If the SAR 7 is received after the 11th of the Submit Month then the overissuance is considered an IHE.

 

Process the SAR 7 as if it had been received before NOA cutoff. Follow the chart below when determining the amount of benefits.

• If Benefits will increase or remain the same, then
  • Revise the budget.
  • Issue benefits in a timely manner.
  • Send an automated NOA, if applicable.
• If Benefits will decrease, then
  • Issue benefits for at least the same amount as was indicated on the last valid NOA sent.
  • Make a mid-period change for the remaining months of the payment period to decrease benefits.
  • Establish an overissuance for the 1st month of the SAR payment period which occurred due to the inability to decrease benefits with a 10-day notice.

After Month-End Cutoff

After month-end cutoff, restore the case as an erroneous discontinuance. Then follow the directions above for Before Month-End Cutoff.

Complete SAR 7 With Missing Verifications Received After NOA Cutoff

Refer to Deductions for verification and budgeting instructions.]

Upon receipt of a complete SAR 7 which lacks verification that will result in a decrease or disallowance, follow the steps below:

1. Follow the instructions under Deductions to determine whether to disallow or reduce the deduction.
   1. If the deduction should be disallowed or reduced, then GO TO STEP 2.
   2. If the deductions should not be disallowed or reduced, then process the SAR 7 according to directions in Complete SAR 7 Received After NOA Cutoff [63-508.65].
2. Send a “CalFresh Notice of Change For Semi-Annual Reporting Households” (CF 377.4) to explain what verification is needed. (A blank SAR 7 need not be sent with the notice, but may be included if helpful.)
3. Follow the below.
   1. IF BENEFITS WILL Increase or remain the same, then
      1. Revise the budget, disallowing or reducing unverified deduction(s), if required.
      2. Allow benefits to be issued. Issue a supplement, if necessary.
      3. Send an automated increase NOA, if applicable.
   2. If the benefits will decrease, then
      1. Issue benefits for at least the same amount as was indicated on the last valid NOA sent.
      2. Make a mid-period change for the remaining months of the Payment Period to decrease benefits, due to disallowing or reducing unverified deduction(s).
      3. Establish an overissuance for the 1st month of the SAR Payment Period when benefits cannot be decreased due to the 10-day noticing regulations.
4. If the missing verification is received:
   1. By the extended filing date, allow the deduction in the payment period and issue a supplement, if appropriate.
   2. After the extended filing date and this will be a continuing expense, the receipt of the verification is considered a voluntary mid-period report.

Incomplete SAR 7

“Y” NOA [63-508.6]

A SAR 7 can have all verification of deductions attached and still be incomplete. Refer to Definition of a Complete SAR 7.

Upon receipt of an incomplete SAR 7 by the 11th of the submit month, the EW must follow the steps below.

1. EW
   1. Send an NA 960Y SAR NOA, listing what information on the SAR 7 is incomplete, no later than ten days before the end of the submit month.
      1. Record the SAR 7 in CalSAWS as Incomplete, in order to auto generate a NA 960Y SAR NOA.
      2. Manually generate a duplicate SAR 7, since the “NA 960Y SAR” NOA does not automatically produce a duplicate SAR 7.
      3. Mark the incomplete SAR 7 as Returned, in order to trigger an alert when the SAR 7 is not returned complete.
   2. If there is missing verification of a deduction, a “CalFresh Notice of Change For Semi-Annual Reporting Households” (CF 377.4 SAR) must also be sent to explain what verification is needed.
   3. Allow the household until the extended filing date to submit a complete SAR 7. Process the SAR 7 according to instructions in this section when it is received.
      1. If the household responds to the “NA 960Y SAR” NOA by sending another INCOMPLETE SAR 7, do not send a second “NA 960Y SAR” NOA. See “SAR 90” below for instructions.
   4. If a complete SAR 7 is not received by the extended filing date, the CalFresh case will be discontinued.

Personal Contact

AB 79 mandates that the EW contact the household after sending the X or Y discontinuance NOA to complete the SAR 7. Personal contact should be made before the monthly “Immediate NOA Cutoff” date.

Text/Email Message

When sending a text using “Message Media,” the message must include the EW’s direct telephone number for the client to call for assistance. For required verification, the website for uploading documents securely https://ssadocupload.sccgov.org/DEBS should be provided.

For guidance on the script and the process, refer to the topic Semi-Annual Report (SAR) Process in the DEBS Business Processes Handbook

Telephone Contact

If the EW successfully reaches the household, the EW must:

• Explore any missing or unclear information with the household and complete the report over the phone if the household agrees.
• Attempt to collect the information needed to complete the report, except for signing the report on behalf of the client. TS must be used to capture the client’s signature.

If the EW cannot reach the household or collect the information necessary to complete the report, the EW must document in the case record that an attempt was made to contact and collect the necessary information to complete the report.

Reminder Letter

For households that did not provide consent for electronic communications, or do not have a working phone number, the “Reminder Letter” (SAR 90) for an incomplete SAR 7 or SCD 50 must be sent. The reminder contact letter must be scanned in the IDM system.

SCD 50

The SCD 50 must be sent to households who failed to submit their SAR 7. This reminder letter must be sent after the X NOA is sent but prior to the “Immediate NOA Cutoff” date.

SAR 90

When an incomplete SAR 7 is received after sending an NA 960X SAR or NA 960Y SAR, send a “Reminder Letter” (SAR 90) specifying:

• What questions need to be answered.
• What verifications need to be provided for the SAR 7 to be complete.
• Which program is affected (CalWORKs or CalFresh or both).
• CalFresh benefits will still be discontinued on the effective date.

Note: If the SAR 7 is complete for one program, but not the other, only check the box for the program still needing additional information.

The SAR 90 form is not a NOA and will not reset the 10-day notice requirements or the case discontinuance date. Therefore, the SAR 90 does not confer new hearing rights, although households retain the right to request a hearing with respect to the original SAR 7 discontinuance notice.

Completion of SAR 7 by Telephone

EWs shall complete the SAR 7 for clients and obtain their TS when the clients contact us in the following situations:

• their SAR 7 was submitted timely, but it is incomplete,
• they sent in their SAR 7, but we have no record of it or are unable to locate it,
• they receive an ‘X’ NOA and call their EW,
• their case is discontinued for failure to turn their SAR 7 in during the submit month and they contact us in the month following discontinuance.

DocuSign SAR 7

The Semi-Annual Report (SAR 7) is available in DocuSign format for clients to complete and sign. Before sending the document to the client, all required fields must be completed by the EW. The case number, case name, client address etc. must all be entered on the form prior to sending it to the client via DocuSign. Once the SAR 7 is completed and returned by the client EWs will update the SAR 7 status in CalSAWS then print the SAR 7 and place it in the designated IDM area for clerical staff to image.

Note: The requirements for completing the SAR 7 via DocuSign are the same as a paper SAR 7 and workers are still responsible for obtaining the required signatures on the SAR 7.

Related Topics

SAR 7 Processing