Eligibility/Status Report- Semi-Annual SAR 7

[EAS 40.181.22)

Eligibility and benefits for a six-month period are based on information provided on the “Eligibility/Status Report - Semi-Annual” (SAR 7) and will be determined using prospective budgeting and income-averaging rules. The six consecutive months is the SAR Payment Period.

CalWORKs AUs are required to report all changes affecting eligibility and grant amount in the Semi-Annual Reporting (SAR) Period and any anticipated changes in the upcoming SAR Payment Period on their SAR 7. If the recipient fails to provide the report requested by the deadline, then the AU’s grant will be terminated.

The EW must use the SAR 7 to determine continued eligibility and ensure that all information reported during the Payment Period is included on the SAR 7. The EW must compare the information on the SAR 7 to information on mid-period reports and to what has been Journaled.

If the information reported on the SAR 7 is inconsistent with the information provided in any mid-period reports, the EW must contact the client to resolve the discrepancy. If the EW is unable to contact the client or resolve the discrepancy from such contact, the SAR 7 must be considered incomplete.

Note: The SAR 7 may also be used to request CalWORKs for an optional person. Refer to Mandatory Members of the AU for requesting CalWORKs for mandatory persons.

SAR cycles are based on the Beginning Date of Aid (BDA) in order to ensure the SAR cycle is aligned with the redetermination date. The following table illustrates how months are arranged in a SAR cycle.

First SAR Payment Period

January

February

March

April

May

June

Month 1

BDA Payment Period Begins

Month 2

Month 3

Month 4

Month 5

Data Month

Month 6

Submit Month/SAR 7 is due End of the Payment Period

Second SAR Payment Period

July

August

September

October

November

December

Month 7

Second Payment Period Begins

Month 8

Month 9

Month 10

Month 11

Data Month

Month 12

RD is Due

SAR 7 Requirement

All CalWORKs AUs, including Zero Basic Grant (ZBG) cases, must submit a SAR 7 once per year; six months after their BDA or annual RD. The SAR 7 is mailed to the client on the last working day of the Data Month (the fifth month of the six-month period) and is due to the county between the 1st and the 5th of the Submit Month (the sixth month of the six-month period). SAR 7s that are not received by the 11th of the SAR Submit Month are considered late. The SAR Reporting Period is the SAR Data Month and the five preceding months.

Extended Filing Date

In Annual and Semi-Annual reporting, this is the first working day of the payment period.

It is the final date by which an AU must submit a complete SAR 7, including all required verification, without a break in aid.

Note: The AU must submit the original SAR 7, not a copy.

Continuing Cases

All CalWORKs AUs which are ACTIVE in CalSAWS will automatically receive a SAR 7 and a postage-paid business return envelope which will be mailed on the last working day of the Data Month.

New Applications and Restorations Activated After Mid-Month Cutoff

All new applicant AUs (including restorations) granted CalWORKs after the SAR 7 transmittal run dates MUST BE MANUALLY ISSUED A SAR 7. A manual SAR 7 needs to be generated and mailed with a postage-paid return envelope. The automated process does not include cases activated after the above dates. Ensure that the EW number, recipient's name and address, case number or SSN, and REPORT MONTH are shown on any manually issued SAR 7.

Explain the SAR 7 reporting procedures to all applicants including:

The SAR 7 reporting responsibilities,
The requirement to return the SAR 7 between the 1st and 5th of the submit month (if the 5th falls on a weekend or holiday, it is due the first business day following the 5th), and
How to properly complete the SAR 7.

Note: The “How to Fill Out Your SAR 7” (SAR 7A) is used when discussing SAR 7 procedures. This must be provided to all applicants at Intake, and may also be used at any other time, such as at redetermination (RD) or when the client has a problem completing the SAR 7.

SAR 7 Translations

CalSAWS provides the SAR 7 in English, Spanish, Vietnamese, Chinese, and Russian (if the language is marked correctly in CalSAWS).

Reasonably Anticipated Income at SAR 7

Income is “reasonably anticipated” when the recipient and the EW determine it is reasonably certain that the recipient will receive a specific amount of monthly income in the SAR Payment Period. If the amount of income that will be received or when it will be received is uncertain, the portion of the AU’s household income that is uncertain must not be counted.

Under SAR, recipients will no longer be required to report an exact amount of anticipated monthly income for each month of the SAR period. Instead, recipients will be required to provide information for the Data Month and any anticipated changes in the six months following the Submit Month. The income received in the Data Month is considered reasonably anticipated and will be used in the budget calculations, unless the recipient reports that they anticipate a change in the upcoming SAR Period.

If an AU anticipates new income from a new source in the upcoming SAR Payment Period, such as a new job or unemployment benefits, this income must be considered reasonably anticipated if it is determined that:

The AU verifies that the income has been or will be approved or authorized within the upcoming SAR period, or the household is otherwise reasonably certain that the income will be received within the SAR period,
The anticipated amount of the income is known and verified, or the AU is otherwise reasonably certain of the amount of the income; and
The start date of the income is known and verified, or the AU is otherwise reasonably certain of the start date of the income.

ExampleExampleA father finds employment as a day laborer and doesn’t know in advance which days he will be working or how much he will be earning. This income can’t be reasonably anticipated for the upcoming SAR Period and should not be prospectively budgeted.

If an AU anticipates new income, but does not have reasonable certainty of the dates and amounts expected to be received, this income cannot be considered reasonably anticipated and therefore cannot be used in determining the benefits for the upcoming SAR Payment Period. If the new income exceeds the IRT mid-period, then the recipient would have to report it and benefits will be recalculated as necessary.

If the AU’s monthly income fluctuates or they expect the income received in the Data Month to change in the upcoming SAR Payment Period, the EW must attempt to find out the amount of income the AU reasonably expects to receive, in order to determine what income, if any, can be reasonably anticipated and used in the next SAR Payment Period’s benefit calculation. Only that portion of income that the AU reasonably anticipates it will receive can be used in the benefit calculation. If, for example, a recipient has fluctuating income, but agrees that she usually makes at least a minimum of $200 a month, the minimum anticipated income can be anticipated. If however, a recipient can’t anticipate an amount or if she will get paid in the upcoming semi-annual period, then no income can be reasonably anticipated.

New income cannot be anticipated unless the AU is reasonably certain of the amount of income and the start date. If an AU reports that they expect their income to change or stop but are uncertain of when or by how much, the EW cannot reasonably anticipate this change. If the recipient states that the Data Month income is NOT typical, explains why and lists an estimate of future income, the recipients estimate of future income must be used as long as there is no conflicting information. Additionally, if the recipient states that their income fluctuates so much that they can’t anticipate any income, no income will be counted. If the EW disagrees that the income is too unpredictable to anticipate, it must explore with the applicant or recipient what amount, if any, can be reasonably anticipated and document the basis for the amount used in the CalSAWS Journal Detail page.

The EW must also explain to the AU that if their actual income is less than the anticipated income, the recipient should make a mid-period, voluntary report of decreased income and provide verification so that the EW may increase their benefit amount mid-period.

Example #1Example #1A client reports that he believes he qualifies for $400 in Unemployment Insurance Benefits (UIB). There is no finding of eligibility and no statement of when the benefits will start. This income can’t be reasonably anticipated. If however, the recipient provided a copy of the UIB check or a statement that benefits would begin on a certain date, the income could be reasonably anticipated.

Example #2Example #2A client reports being told at an interview that she got the job. She is aware of a salary range, but has no further information. This income cannot be treated as anticipated. If however, the recipient knows her start date, anticipated wage amount and expected hours, then the EW should consider this income to be reasonably anticipated as of the date the income will begin and use this income in the benefit calculation for the next SAR Payment Period. The EW shall document the recipient’s statement of start date, expected hours, and wages in the case file to substantiate the recipient’s estimate.

Example #3Example #3A client is a waitress and doesn’t earn the same amount each month because of extra shift opportunities, shift cut-backs and variances of tips received, but she states on the SAR 7 that the reported Data Month’s income is “typical.” The EW must count that income as reasonably anticipated for the next semi-annual period. If, however, the recipient never has any regular shifts or hours, and the employer or prior income history substantiates that there is no minimum amount of income expected, or the recipient explains changes that have occurred or why the historical minimum income can’t be reasonably anticipated, then this income can’t be reasonably anticipated and will not be used to determine the benefit amount for the upcoming semi-annual period.

Example #4Example #4A client’s income varies between $200 and $400 a month and the employer can’t confirm the earnings or schedule, but the recipient states that earnings are usually at least $200. The EW must list $200 as reasonably anticipated income. If the recipient’s income varies dramatically (for example someone who is waiting for an on-call substitute position, who doesn’t know whether there will be any work or any minimum hours) there is no income that can be reasonably anticipated and no income will be budgeted.

Example #5Example #5A client was paid bi-weekly, but reports that she was laid off. She has applied for UIB, but has not heard from EDD. No income will be budgeted as she does not know how much she will receive from EDD or when her payments will start. Her prior pay history can’t be used because the job has ended and she can’t reasonably anticipate any income.

The following chart should be used to determine income that is reasonably anticipated by the AU:

If the AU...	Then...
Reports income they anticipate to receive in the next six-month payment period,	Determine if the anticipated income is fluctuating or stable, Adjust the budget for the next payment period accordingly, and Send a timely NOA.
Is unable to provide an estimate of the anticipated income,	Contact the client for additional information and determine what can be reasonably anticipated, or With the client’s authorization, contact the employer or other source of income when necessary, Adjust the budget for the next payment period accordingly, and Send a timely NOA.
AND the EW are unable to determine an estimated income amount and are unable to contact the source,	Do NOT anticipate this income in the upcoming payment period.

Note: EWs should use any historical budget information that may be considered to determine reasonably anticipated income for future payment periods.

Recipient Financial Eligibility Test (FET)

To determine financial eligibility when processing the SAR 7, determine whether the income is recurring or nonrecurring:

If the income reported is nonrecurring, it will be treated as property in the month received and NOT used to determine the grant amount. Refer to Property - General.
If the income reported is recurring:
- Complete the FET for the future six-month payment period, using the income that you anticipate the family will receive in the future six-month payment period.
  - If the FET is passed based on the reasonably anticipated income, compute the grant for the future payment period.
  - If the FET is passed but the Net Nonexempt Income (NNI) is over MAP but under the Tier 2 IRT level, the family is eligible for a Zero Basic Grant (ZBG).
  - If the FET is NOT passed, discontinue the case. Refer to Review Process.