Processing a SAR 7

Rule

Process a SAR 7 for each active CalWORKs case according to their individual SAR. Processing includes a complete review and comparison of the information provided on the SAR 7 with the information in the case record. This is true whether there is income or not, as there may be other information that requires action.

The important factors are to:

• Review the IRT level and eligibility of each continuing CalWORKs case, and
• Make necessary changes early enough to give the recipient an adequate and timely notice.

Review Process

When a SAR 7 is received, clerical images the SAR 7 into CalSAWS along with any attachments. The SAR 7 is then discarded and the attached original verifications are returned to the client. The system sends a task to the assigned EW that a SAR 7 for the case has been received. The SAR 7 must be processed by reviewing the following information:

1. Review the report for completeness by comparing the current SAR 7 to the information in the case record and resolve any discrepancies:
   1. Clarify any change when the income stops or changes from the amount previously anticipated. If the change can be verified (e.g. UIB, SDI, Workmen's Compensation, etc.), the appropriate notice indicating the change must be viewed. If the change cannot be verified (i.e. child support), the recipient's statement documented on the Journal Detail page is sufficient.
   2. Review the social security number listed on the pay stub against the social security number listed in the case.
   3. Verify with the employer the ending date of employment and the final check issued using the “Request for Information on Termination of Employment” (SCD 549 B) or a complete employer's statement, when employment ceases.
   4. Review for possible UIB, SDI, Social Security payments, or other potential income when earnings cease.
   5. Request any additional information required from the recipient (e.g. birth certificate for the newborn, social security number, adding person to the AU, etc.). Send a Request for Verification (CW 2200), and provide a date (10 days from the date being requested) for the information or verification to be returned. Do not send the “Y” NOA. If the requested information is not provided by the 10-day timeframe, then take appropriate action to discontinue the case.
2. Report is incomplete:
   1. Attempt to make personal contact with client:
      1. If contact is made, attempt to complete SAR7 and assist in gathering all necessary verification to complete the report.
      2. If unable to contact the client, a Journal entry must be entered indicating how contact was made (phone or text), and the outcome.
   2. Record “Incomplete” in the Customer Reporting Detail page under the Customer Reporting List page of all appropriate programs as well as the applicable check box for “Incomplete Reasons" in the PR-Incomplete Reasons section.
   3. Reprint the SAR 7 and mark that it is a reprint for future processing purposes.
   4. Send the reprint of the SAR 7 to the client with the “SAR 7 Incomplete-Discontinuance Reminder” notice (NA 960 Y SAR).
   5. Let the discontinuance stand if a SAR 7 is received that is still incomplete. Notify the recipient, using a SAR 90 “Reminder Letter”, that the SAR 7 received was incomplete and what missing verification is needed or which questions must still be completed. The discontinuance cannot be released until a correct and complete SAR 7 is on file.

   6. Important: Personal contact is a phone call or a text message.

3. Report is complete: Record “Completed” in the Customer Reporting Detail page under the Customer Reporting List page of all appropriate programs, as well as the types of changes.
   1. Determine financial eligibility (FET) for the future payment period based on anticipated gross income if a change of income is reported.
   2. Enter the new gross income in the appropriate income categories and types.
   3. Follow up on any changes reported on the SAR 7 such as:
      1. New address - Enter on the Address Detail page and review if the new address requires an inter-county transfer.
      2. Determine the new rent and utilities and the effective date.
      3. Send a “Would You Like to Register To Vote?” form (SCD 508) when the new address remains in Santa Clara County.
4. Enter the necessary documentation as required in the Journal Details page.
5. Run EDBC on the Task Navigation bar, click the appropriate Program check box, select the Begin Month and End Month, click on Run EDBC button
6. Review the result displayed on the EDBC Summary page and either Accept or Cancel EDBC results.

Documentation

Document on the Journal Detail page that the SAR 7 was processed and any reported changes in the AU’s situation. When there is a change of address (within Santa Clara County), send an SCD 508 and document the date it was sent on the Journal page.

Determining When the SAR 7 Is Complete

The recipient must report on the SAR 7 all changes that have occurred since the last SAR 7 through the current data month, even if they have already been reported in other ways, such as during an office visit or by a telephone call.

Criteria for Completeness of the SAR 7

1. The form is dated (any date).
2. The SAR 7 must be signed by each natural or adoptive parent or aided spouse of a parent or other caretaker relative living in the home, unless an individual specified is temporarily absent from the home.
3. All income including earned, unearned, exempt, and non-exempt income received during the SAR Data Month and income reasonably anticipated to be received during the next SAR Payment Period must be reported.
4. Proof of income submitted with the SAR 7 includes, but is not limited to: pay stubs, letters of award or benefits (such as unemployment, disability, or Social Security), statements showing interest income, dividend income, tax return showing the amount of EIC received, etc.
5. The response to all questions pertaining to CalWORKs eligibility and grant amount must be provided on the SAR 7. The information provided on the SAR 7 together with the submitted proof must be sufficient for the EW to determine ongoing eligibility and grant amounts.
6. If the “yes” or “no” box is not checked but the recipient has written or provided clear and complete information in answer to the question, the question is considered answered. In the following situations, the question must be considered COMPLETE:
   1. The “no” box is checked. No further information is given.
   2. The “yes” box is NOT checked but the information is provided on the SAR 7 and the required proof is attached.
   3. The “yes” box is checked, the information is NOT provided anywhere on the report, but the required proof (including when received) is attached showing ALL of the information necessary to determine eligibility and benefit amounts.
   4. The “yes” box is NOT checked, the information is NOT provided on the report, but the required proof (including when received) is attached showing ALL of the information necessary to determine eligibility and benefit amounts.

When the information on the SAR 7 is consistent and meets the completeness criteria above, it will be considered complete. However, if contradictory information is received from another source, such as from Employment Services or another EW, the case must be placed in suspense (“Y”) hold until the contradiction is cleared up.

Note: Since they are also signed under penalty of perjury, faxed or scanned SAR 7s are acceptable. If questionable, follow-up by requesting that the original also be sent in. Additionally, the SAR 7 may be completed in ink or pencil.

SAR 7 Not Received by the 11th of the Submit Month

The SAR 7 is due between the 1st and 5th of the submit month. If the recipient fails to return a correctly completed SAR 7 within this period, the EW is required to contact the client by the 15th of the month to determine the AU’s current eligibility.

On the first working day after the 11th calendar day of the submit month, or on the first working day following the 11th, if the 11th falls on a weekend or holiday, an “X” NOA will be generated through the AUTO-X Hold process in CalSAWS.

There are two mandatory ways to contact a client for CalWORKs, RCA, TCVAP:

• Personal Contact per Assembly Bill (AB) 79, and
• Balderas Reminder personal contact and notification.

Assembly Bill (AB) 79

Assembly Bill (AB) 79 mandates that the EW must attempt to make a personal contact to the household after the “X” discontinuance NOA has been sent in order to attempt to complete the SAR 7. This personal contact must be made before the monthly “Immediate NOA Cutoff” date.

Per AB 79, personal contact is a phone call or a text message.

• 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.
• 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.

Note: For guidance on the script and process, refer to DEBS BP Handbook.

Balderas Reminder Personal Contact and Notification

The EW must attempt to contact the recipient by telephone to remind him/her of his/her reporting responsibilities. If unable to make telephone contact, Balderas Reminder Notice (M40-181C-SAR) is mailed to the recipient and the attempted contact must be documented on the Journal Detail page.

CalSAWS will generate automated calls to clients as another reminder when their SAR 7 has not been received by the county. These calls are made after the 11th of the month.

SAR 7 Received Incomplete

If an incomplete SAR 7 is received, per AB 79, a personal contact must be made to the recipient to attempt to complete the SAR7 and the EW’s action documented on the Journal Detail page. If the EW is unable to reach the recipient, the reasons for this must also be documented in the Journal Detail page (i.e., “not home”, “wrong number”) and that the Balderas Reminder Notice (M40-181C-SAR) was mailed to the recipient.

The status of the incomplete report and the reason must be entered on the Customer Reporting Detail page under the Customer Reporting List page for CalSAWS to generate a “SAR 7-Incomplete-Discontinuance Reminder NOA (NA 960 Y SAR).” The telephone call or the Balderas Reminder Notice meets the requirement for a face-to-face appointment with the recipient.

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 Administrative Overpayment must be established if the assistance unit received more benefits than it was entitled for the six-month payment period.

Incomplete SAR 7 Received After “X” NOA Mailed

When an incomplete SAR 7 is received after the “X” NOA has been sent, the EW must:

• Attempt to contact the client by phone, and
• Send an SAR 90 “Reminder Letter” to obtain missing information or documents.

The NA 960 Y SAR (Y NOA) must NOT be sent to the client when an incomplete SAR 7 is received after NOA Cutoff.

Note: A “Y” NOA sent with less than a 10-day notice is invalid and will invalidate the previous “X” NOA that was sent out in a timely manner. The “X” NOA is still valid as it requires the client to submit a COMPLETE SAR 7 to stop the discontinuance action.

Refer to Completion of SAR 7 by Telephone for additional options.

SAR 90 “Reminder Letter”

The SAR 90 form is not a NOA and will not reset the 10-day notice requirements or the case discontinuance date. The questions in need of answering or verifications needed for the SAR 7 to be complete must be specified on the SAR 90. Workers must also identify the programs affected. If the form is complete for one program, but not the other, only check the box for the program still needing additional information.

Complete SAR 7 Received Late (After the 11th of the Month)

Issuance Deadline

Benefits must be issued as soon as possible to an eligible assistance unit 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 "Other" Overpayment MUST be established when a recipient submits a late SAR 7 (after the 11th of the SAR submit month) which results in the assistance unit receiving more benefits than it is entitled because of the county’s inability to decrease benefits due to the 10-day notice requirement.

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...	Then...
Increase or remain the same,	Revise the budget. Issue benefits in a timely manner. Send an automated NOA, if applicable.
Decrease,	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. Obtain a signed 10-day NOA waiver from the client or establish an “Other” overpayment 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”.

When to Place the Case in a “Y” Hold Status

ALL OF THE FOLLOWING REQUIREMENTS MUST BE MET; if not, THE CASE MUST BE PLACED IN “Y” HOLD STATUS. If the recipient does not complete the SAR 7 or provide the required verification, the case must be discontinued at the end of the month.

1. The address along with information provided on the SAR 7 must be sufficient for county administrative purposes, including the ability to locate the recipient.
2. Questions must be answered “yes” or “no.”
3. If any question is left blank but the response in the comments section or attached proofs give clear and complete information sufficient to answer the question, the question is considered complete.
   1. If any question is answered “yes,” then sufficient information must be provided in the comments section to make any required eligibility determination. If information is insufficient or additional verification is needed to clear eligibility, it may be necessary to place the case in a “Y” hold status.
4. The SAR 7 must be SIGNED by each natural or adoptive parent of the child(ren) in the AU, each caretaker relative, and the aided spouse of the parent or caretaker relative living in the home, unless an individual so specified is temporarily absent from the home. If the signature of any required person is missing, “Y” the case. These persons include:
   1. The minor mother living with her aided senior parent(s).
   2. The aided stepparent. Unaided stepparents do not need to sign the SAR 7.
   3. All parent(s) of the aided children living in the home, whether the parents are aided or not, when another relative is the caretaker relative.
   4. A parent who meets the temporary absence rule may be excused from signing if there is another parent or caretaker relative in the home that may sign the SAR 7. [Refer to the Determination of Temporary Absence section of Temporary Absence.]
5. ALL INCOME received in the DATA MONTH including gross earnings, unearned-disability-based, exempt and nonexempt of the AU member(s) and certain Non-AU member(s) in the home must be reported.
   1. EARNED INCOME — verification from the employer of the gross earnings (before deductions) as well as the date received is necessary. The “Income/Profit and Loss Statement” (CSF 32) is not required if the client chooses to use 40% of self-employed income as the self-employed business expense deduction. The gross self-employment income must then be reported on the SAR 7.
   2. UNEARNED INCOME and DISABILITY BASED INCOME— verification of amount is necessary:
      1. At beginning eligibility determination,
      2. At initial receipt of payment, or
      3. Any change in the amount of payment.
      4. At annual redetermination (RD).
6. ALL ANTICIPATED INCOME for the next payment period including earnings, unearned-disability-based, exempt and nonexempt of the AU member(s) and certain Non-AU member(s) in the home must be reported.
7. A COMPLETED “Sponsors Semi-Annual Income and Resources Report” (SAR 72) must be submitted with the SAR 7 when the recipient is a sponsored non-citizen.
8. A COMPLETED “Supplemental Semi-Annual Income Report” (SAR 73) must be submitted with the SAR 7 when the recipient is a minor parent living in the home of an unaided senior parent.
9. All information on the SAR 7 must be consistent with other information which the EW has verified as accurate. If there is an inconsistency which brings eligibility or the grant amount into question, place the case in “Y” hold status.
10. When the recipient reports any change or circumstance by telephone or on a voluntary mid-period report and the information is not reported on the SAR 7, the SAR 7 must be considered incomplete.

SAR 7 Processing Time Frame

[40-181.2]

The following chart shows the time frames used in the SAR 7 process.

Who	When	Action
Recipient	Between the 1st and the 5th of the Submit Month.	Fails to submit the SAR 7.
CalSAWS	Auto X Hold Process Cutoff (between the 11th and 13th)	Generates the “X” NOA through the Auto-X process and mails to the client if a SAR 7 is not logged in as received.
EW	After CalSAWS generates the X NOA.	AB 79 Personal Contact: A phone call or text must be made to contact client. If contact is made attempt to collect all information to complete SAR 7. Document on the Journal Detail page that an attempt was made, the method and outcome. Balderas Personal Contact Reminder: EW must attempt to make Balderas personal contact (face-to-face or telephone) with the recipient. Document on the Journal Detail page that an attempt was made and the method.
EW	SAR 7 received after X NOA sent, but is incomplete.	Record “Incomplete” in the Customer Reporting Detail page under the Customer Reporting List for all appropriate programs as well as the “Incomplete Reasons.” Reprint the SAR 7 and mark that it is a “reprint” for future processing purposes. Send the reprint of the SAR 7 to the client with the “SAR 90 “Reminder Letter” indicating: Which programs are affected, Which questions still need to be answered, and What verification(s) is still missing.
CalSAWS	A complete SAR 7 is not received 5 days prior to the end of the month.	Sends the Balderas Reminder Notice (M40-181C SAR) to clients and generates an automated outbound call informing clients that their SAR 7 has not been received.
EW	By the close of the 1st work day of the Payment Period.	Rescinds the discontinuance if the recipient turns in a complete SAR 7.
EW	Within the month following the discontinuance for an incomplete SAR 7 or for non-submission of a SAR 7,	Restore benefits without requiring a new application or intake interview, if all other eligibility criteria are met. Benefits are determined based on the information provided on the completed SAR 7 and prorated from the date the complete SAR 7 is received.

Voluntary Mid-Period Recipient Reporting for Semi-Annual Reporting

Recipients may voluntarily report changes in income and circumstances that may increase their grant at any time during the six-month Payment Period. The EW will only take mid-period action on those voluntary reports that result in an increase to benefits. Examples of changes that, when reported, might increase benefits include, but are not limited to the following:

• When the AU’s income decreases,
• Someone moves into the home,
• An AU member becomes pregnant, or
• A teen becomes pregnant or gives birth and meets Cal-Learn requirements.

When a recipient voluntarily reports a change mid-period (payment month and submit month), the EW will NOT take action during the current period IF it would decrease the grant or make the AU ineligible. The EW will send a NOA informing the AU that the voluntarily reported information did not change their benefits and remind the recipient to report this change on their next SAR 7.

Note: If the EW becomes aware that an eligible child in the AU is deceased, benefits shall be decreased in the month following the month after the report month (2 months later). If the death of an aided child occurs on June 15th, the soonest the grant can be decreased is August 1st.

When a client voluntarily reports new employment or the EW discovers the client’s new employment through other verified sources, the EW must follow up by obtaining a completed "Request for Employment Information" (SCD 549A) or employer’s statement or pay stub. A faxed SCD 549A, employment statement, or pay stub is acceptable. The EW must enter the new employment information into the Employment  Detail page in the Customer Information-Non-Financial Employment link and the Income List, Income Detail, and the Income Amounts pages in the Customer Information-Financial section of CalSAWS.  [Refer to Program Directive 23-28]

Note: The EW must NOT take action to reduce or discontinue cash aid mid-period based on the SCD 549A, employer’s statement, or pay stub unless the client’s income exceeds the Income Reporting Threshold (IRT) levels.

Note: The EW will receive a Task when changes to the Employment (Employer Information only) record are made by a WTW Employment Counselor (EC).  The WTW EC will be notified via an Alert if the Employment (Employer Information only) record is updated by the EW.

Effective Dates of Increased Grants

Action to increase the grant shall be based on when the change was reported, NOT when the change actually occurred. The effective date of the increase in cash aid is determined differently for increases due to decreased income than for increases due to adding AU members and are as follows:

• Increases due to decreased income are effective the first of the month in which the change is reported.
• Increases due to the addition of new AU members are effective the first of the month following the report of the change.

Mid-Period Status Report (SAR 3)

The Mid-Period Report Form (SAR 3) must be made available for clients who wish to report a mid-period change in writing. If a client chooses not to report a mid-period change in writing at the time of the change, the EW will document the following information the Journal Detail page in CalSAWS.:

• The date the change is reported.
• The date the change occurred.
• If the change(s) reported are Mandatory, indicate which change is being reported and any action required.
• If the change(s) reported are Voluntary, indicate which change is being reported and whether verification must be provided within 10 days.

Case Discontinued for Late SAR 7

When the recipient contacts the EW who closed the case AND returns the completed SAR 7 on the first workday of the SAR payment period, the EW must rescind the discontinuance and process the SAR 7.

When the recipient contacts the EW after the first workday of the SAR payment period, but before the end of the month from the discontinuance date, the EW must make a determination of good cause. If good cause exists, the EW must rescind the discontinuance and process the SAR 7. The good cause determination and the decision must be documented on the Journal Detail page.

ExampleExampleA recipient contacts the EW on July 7th. The EW discovers that the case was discontinued June 30th for not returning their SAR 7 in their submit month of June. When the EW asks the recipient why the SAR 7 was not returned, the recipient explains that she was in the hospital from June 18th until July 3rd and hands the EW the SAR 7. The SAR 7 indicates that the recipient had earnings in May (the data month). The EW determines that the recipient had good cause for not getting the SAR 7 in by the extended filing date as she was in the hospital on that day. The discontinuance is rescinded. The EW must take action on any overpayment that occurs.

Note: If less than one month break in aid has passed, the case will be restored in continuing. If one month or more has passed since the discontinuance, the client must reapply for aid as a new applicant at intake. Refer to More than One Month Break-in-Aid.

Completion of SAR 7 by Telephone

EWs shall complete the SAR 7 for clients and obtain their telephonic signature (TS) 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.

Refer to DCBP “Completion of SAR7 by Telephone” section for completion process.

DocuSign SAR 7

The 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 area for clerical staff to image.

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

Criteria for Determining Good Cause

[EAS 40-181.23]

Use the following criteria to determine if good cause for a late SAR 7 exists:

• The recipient is suffering from a physical or mental condition which prevents timely and complete reporting.
• The recipient's failure to submit a timely and complete report is directly attributable to a county error.
• There are other extenuating circumstances.

If restoration of CalWORKs is requested after a month has passed, a good cause exemption is only to be reviewed at the client’s request. The burden of proof is on the client to prove he or she has good cause for not submitting a complete and timely SAR 7; however, the EW has the discretion to decide if each specific situation meets the above criteria for “Good Cause.”

Restoration of Aid

Under AB 959 policy, when a recipient submits a complete SAR 7 within the month following the discontinuance for an incomplete SAR 7 or for non-submission of a SAR 7, benefits must be restored to the AU without requiring a new application or intake interview, if all other eligibility criteria are met.

Benefits are to be determined based on the information provided on the completed SAR 7 and prorated from the date the complete SAR 7 is received.

Because these restored AUs are considered recipients, they are not subject to applicant eligibility criteria, such as the applicant disregard or the 100-hour rule for two-parent cases. The client’s current SAR Cycle and certification period are retained as if the case was never discontinued.

Note: Restoring benefits at a decreased amount is correct since the case is going from a discontinued status (zero benefits) to an active status, after a break in aid. This is not considered a mid-period decrease.

Example 1Example 1

Example 2Example 2

Example 3Example 3

Example 4Example 4

Reminder: Good Cause rules for failure to submit a complete and timely SAR 7 continue to apply. If the client is determined to have Good Cause for not submitting their SAR 7, the discontinuance must be rescinded and aid restored in full to the beginning of the month. Refer to Criteria for Determining Good Cause [EAS 40-181.23].

Related Topics

Eligibility/Status Report- Semi-Annual SAR 7

Annual Reporting/Child Only (AR/CO) Cases