{\rtf1\mac\deff3{\fonttbl{\f1\fnil Chicago;}{\f2\fnil Geneva;}{\f3\fnil Monaco;}{\f4\fnil Zeal;}{\f5\fnil Zapf Dingbats;}{\f6\fnil Zapf Chancery;}{\f7\fnil Wingdings;}{ \f8\fnil VT100;}{\f9\fnil Verdana;}{\f10\fnil Times New Roman;}{\f11\fnil Times;}{\f12\fnil Symbol;}{\f13\fnil Swing;}{\f14\fnil Script MT Bold;}{\f15\fnil Palatino;}{ \f16\fnil Oxford;}{\f17\fnil Onyx;}{\f18\fnil Old English Text MT;}{\f19\fnil Old English Text;}{\f20\fnil New York;}{\f21\fnil New Century Schlbk;}{\f22\fnil New Berolina MT;}{\f23\fnil Nadianne;}{ \f24\fnil N Helvetica Narrow;}{\f25\fnil Mishawaka Bold;}{\f26\fnil Mishawaka;}{\f27\fnil Machine;}{\f28\fnil Lucida Bright;}{\f29\fnil Lubalin Graph;}{\f30\fnil Klang MT;}{\f31\fnil %InterCon3270apl;}{ \f32\fnil VT-132;}{\f33\fnil VT-80;}{\f34\fnil VT-80 Graphics;}{\f35\fnil %InterCon3270sym;}{\f36\fnil Impact;}{\f37\fnil Helvetica Compressed;}{\f38\fnil Helvetica Black;}{\f39\fnil Helvetica;}{ \f40\fnil Gill Sans Condensed Bold;}{\f41\fnil Garamond Narrow;}{\f42\fnil Delphian;}{\f43\fnil Courier New;}{\f44\fnil Courier;}{\f45\fnil Comic Sans MS;}{\f46\fnil Bookman;}{\f47\fnil Bodoni MT Ultra Bold;}{ \f48\fnil Avant Garde;}{\f49\fnil Arial MT Condensed Light;}{\f50\fnil Arial Black;}{\f51\fnil Arial;}{\f52\fnil %MAdobeSerMM_790 100;}{\f53\fnil %MAdobeSerMM_790 900;}{\f54\fnil %MAdobeSerMM_110 100;}{\f55\fnil %MAdobeSerMM_110 900;}{ \f56\fnil %MAdobeSanMM_1450 50;}{\f57\fnil %MAdobeSanMM_1450 1450;}{\f58\fnil %MAdobeSanMM_50 50;}{\f59\fnil %MAdobeSanMM_50 1450;}} {\colortbl\red0\green0\blue0;\red255\green255\blue255;}\paperw12240\paperh15840\deftab720\margl1440\margr1440\margt1440\margb1440\sectd\pard\plain\f39\fs24\f39 {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004100 - 4310 \'00SUBJECT: SUMMARY/RESOURCE ELIGIBILITY \'00 \par\'00{\ul DATE: 10-1-91 \'00 STANDARDS }\'00 \par \par \par 4100{\ul Summary} \par \par For the purpose of determining eligibility for the Food Stamp Program, resources are defined as assets available to the household. Such assets may be money in bank accounts, certificates of deposit, stocks, bonds, land or houses that the household could sell. Vehicles are also considered as resources. \par \par Some assets are totally excluded from consideration as resources. Other assets are considered inaccessible if the household can demonstrate that the asset is not available and will not likely become available. \par \par Households may not transfer resources to become eligible or remain eligible for food stamps. \par \par 4200{\ul When Resources are Determined} \par \par At initial application and at application for recertification, resources are determined at the time of the interview. If the household's countable resources exceed the limits at the time of the interview, deny the application. The household may reapply at any time. When the household reapplies, resources will be re-determined at the time of the next interview. See FSC 11420 for handling reported changes in resources. \par \par 4300{\ul Resource Eligibility Standards} \par \par A household's eligibility will be denied or terminated when the value of the household's countable resources (both liquid and non-liquid assets) exceeds the following: \par \par .$3,000 for all households with an aged member regardless of household size; and \par \par .$2,000 for all other households. \par \par Exception:Households which are categorically eligible as defined in the Glossary do not have to meet the resource limits as provided in this section. \par \par 4310{\ul Uniform Resource Standards} \par \par Resource standards are uniformly applied to all households except those in which all members are recipients of AFDC and/or SSI. Except for categorically eligible households, all resources currently held by the household and all resources anticipated to be received during the certification period must be reported at the time of the interview. \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004400 - 4410 \'00SUBJECT: EXCLUDED RESOURCES/HOME \'00 \par\'00{\ul DATE: 10-1-91 \'00 AND LOT }\'00 \par \par \par 4400{\ul Excluded Resources} \par \par A general list of excluded resources is provided below. Each excluded resource is explained in detail in the sections of policy immediately following. \par \par 1.The household's home and lot. \par \par 2.Household and personal goods. \par \par 3.Life Insurance policies and pension funds. \par \par 4.Certain vehicles. \par \par 5.Properly essential for the maintenance or use of certain excluded vehicles. \par \par 6.Income producing property. \par \par 7.Certain payments excluded by law. \par \par 8.Resources of a PA/SSI recipient in a mixed household. \par \par 9.Earmarked resources. \par \par 10.Indian lands. \par \par 11.Burial lots limited to one per household member. \par \par The following resource exclusions apply to all eligible household members, ineligible aliens, and disqualified household members: \par \par 4410{\ul Home and Lot} \par \par 1.The home and lot is the household's residence and any surrounding property not separated from the residence by intervening property owned by others. Rights-of-way, such as roads which run through the property surrounding the home, do not affect the exemption. Other structures on the homestead will be evaluated to determine if they can be excluded as described here. \par \par .If the other structure is a house (or mobile home) that is habitable (has indoor plumbing facilities, running water and is liveable), then the house (not the land on which it sits) will be counted as a resource provided it is not income producing. If the water has been turned off by the utility company, the house will be considered as having "running water". \par \par .If the other structure is a building that is not a traditional house, it will be considered as an excluded resource i.e, tool sheds, corn cribs, wood sheds, barns, etc. \par \par If these structures produce income (i.e. rental payments), this {\ul income} {\ul is} {\ul not} {\ul excluded}, and is treated in accordance with FSC 5715.\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004410 - 4420 \'00SUBJECT: HOUSEHOLD AND PERSONAL GOODS/\'00 \par\'00{\ul DATE: 2-1-95 \'00 LIFE INSURANCE/PENSION FUNDS }\'00 \par \par \par 2.The residence and surrounding property remain excluded when temporarily unoccupied for the following reasons: \par \par a. Employment; \par \par b. Training for future employment; \par \par c. Illness of a household member; or \par \par d. Unhabitability caused by casualty or natural disaster, if the household plans to return to the residence. \par \par 3.Households which do not currently own a home receive an exclusion if: a) they own or are purchasing a lot on which they intend to build or are building a home, and b) they plan to reside in the home. The exclusion applies to the value of the lot and home if partially completed. There is no limit to the partial completion of the home. There is no limit to the size of the lot if the lot is not separated by intervening property owned by others, nor are there any limits to the period of time in the future when the household plans to build the home. \par \par Obtain verification of the value of the home and lot if the information given by household about the home and lot may affect eligibility and is questionable. \par \par Document: \par \par a. The questionable circumstances; \par \par b. How the questionable circumstances were resolved; and \par \par c. The verification used to resolve the questionable circumstances. \par \par 4420{\ul Household and Personal Goods/Life Insurance/Pension Funds} \par \par Exclude the following items when determining countable resources. \par \par 1.Household Goods -Examples of these include, but are not limited to, appliances, microwaves, lawn mowers, garden tractors, furniture and TV satellite dishes. \par \par 2.Personal Effects -Examples of these include, but are not limited to, tools, jewelry and clothing (including any types of fur coats). \par \par 3.The cash value of life insurance policies and prepaid burial policies and plans. \par \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004420 - 4430 \'00SUBJECT: EXCLUDED VEHICLES \'00 \par\'00{\ul DATE: 5-1-95 \'00 }\'00 \par \par \par NOTE:Any amount that can be withdrawn from prepaid burial plans without a contractual obligation to repay should be counted as a resource for food stamp purposes. Even if funds are never withdrawn, the ability to make withdrawals is sufficient justification to qualify these funds as resources. \par \par 4.Livestock. \par \par 5.The cash value of pension plans are excluded as resources. Under a salary reduction retirement plan, employees have their employer withhold payment of a specified portion of current salary for investment in a retirement savings plan. The employer often contributes to the plan as well. The plans that may be excluded as a resource and are authorized by Federal law are: \par \par .401(k) Plan (cash-or-deferred arrangement), \par .The Federal Employees' Retirement Thrift Savings Plan, \par .403(b) Plans (tax-sheltered annuities), \par .501(c) (18) Plans (trusts created before June 1959), \par .457 Plans (State, local governments, other tax-exempt organizations), and \par .Simplified Employer Pension (SEP) plans (IRA completely funded by employer). \par \par Note:Individual Retirement Accounts and Keogh Plans are counted as resources. See FSC 4630 - 4640. \par \par 4430{\ul Totally Excluded Vehicles} \par \par SSI recipients have special resource provisions. See FSC 4451. Also, see FSC 4811 for information about jointly owned vehicles. \par \par The following vehicles are totally excluded as resources available to the household: \par \par 1.Unlicensed vehicles on Indian reservations where vehicles driven by tribal members are not required to be licensed; \par \par 2.Income producing vehicles, or vehicles necessary for employment of a household member - i.e. a vehicle used by a traveling salesperson. This exclusion does {\ul not} extend to vehicles driven back and forth to a job site; \par \par 3.Vehicles used as the household's residence; \par \par 4.Vehicles used for the transportation of disabled household members. \par \par 5.Vehicles necessary to carry the primary source of fuel for heating or water for home use. \par \par Items 2 through 4 are explained in detail below. \par \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004430 - 4430 \'00SUBJECT: EXCLUDED VEHICLES \'00 \par\'00{\ul DATE: 5-1-95 \'00 }\'00 \par \par \par{\ul Item 2} \par \par Income producing vehicles are defined as those vehicles used primarily (over 50% of the time) for income producing purposes or those vehicles annually producing income consistent with their fair market value even if used only on a seasonal basis. See FSC 4441 for instructions on determining if income is consistent with fair market value. \par \par Vehicles necessary for employment include only those used for job- related long distance travel. For example, vehicles used by traveling salespeople or migrant farmworkers following the job stream are excluded. \par \par These two exclusions apply during temporary periods of unemployment when the vehicles are not in use. For example, a taxi is excluded if the driver is ill and unable to work, or a migrant's vehicle is excluded if he temporarily leaves the job stream. \par \par A vehicle essential to the self-employment of a household member engaged in a farming operation may continue to be excluded as a resource for one year from the date the farm operation was terminated. \par \par{\ul Item 3} \par \par Vehicles used as the household's residence are excludable. This includes campers, travel trailers and travel homes when used as the household's principal residence. \par \par{\ul Item 4} \par \par Vehicles are totally excludable if the vehicle is necessary for the transportation of a physically disabled household member. (This will not apply to disabilities based strictly on a mental condition.) \par \par Disabled, as it relates to the exclusion of a vehicle to transport a physically disabled member, means either a permanent or a temporary disability. Permanent disabilities are those which entitle an individual to receive a disability check from a source such as Social Security, SSI or VA. Temporary disabilities are conditions such as (but not limited to,) a broken leg, the recovery period following major surgery or conditions which require ongoing treatment such as dialysis or chemo-therapy. (Vehicles owned {\ul solely} by an SSI recipient are excluded under the provisions in FSC 4451.) \par \par If the disabling condition is not obvious to the caseworker, the household will be asked to furnish verification. Acceptable verification includes receipt of a check based on the disabling condition or a statement from a physician or other health professional such as a physical therapist. The verification must provide, at a minimum, statements of the cause of the disability and the period of time during which the disabling condition is expected to continue. \par \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004430 - 4430 \'00SUBJECT: INCOME PRODUCING PROPERTY \'00 \par\'00{\ul DATE: 5-1-95 \'00 }\'00 \par \par Any vehicle may be excluded under these provisions as long as the vehicle is used to transport a physically disabled household member. There is no requirement that the vehicle be either a special type of vehicle or be specially equipped. There is a limit of one vehicle per physically disabled household member. \par \par{\ul Item 5} \par \par Vehicles necessary to carry the primary source of fuel for heating or water for home use will be totally excluded as a resource. \par \par{\ul Example 1} -A household uses a four wheel drive vehicle to haul firewood. The firewood is used in a wood furnace which is the household's primary source of heat. The vehicle is totally excluded as a resource. \par \par{\ul Example 2} -A household must haul its water from a neighbor's house. Since they use their only vehicle to haul the water, this vehicle will be totally excluded as a resource. \par \par{\ul Example 3} -A home is equipped with an electric heat pump. However, the household actually uses a wood heater as its primary source of heat. The household uses one of its vehicles to cut and haul the wood off of its property. The vehicle will be excluded as a resource. \par \par The exclusion will apply for the entire year so long as the household expects to use the vehicle to haul fuel and/or water at some time during the year. \par \par{\ul Example 1} -A household uses a wood stove to heat its home. The household uses one of its vehicles to haul wood for the wood stove. The vehicle will continue to be excluded during the summer when no wood is being hauled. \par \par{\ul Example 2} -A household uses a well for its water supply. In the summer the well usually goes dry because nearby farmers are irrigating their fields. The household must then haul its water. Their vehicle will be excluded for the entire year. \par \par Households without either heating fuel (e.g. - butane or natural gas) or water piped into their homes may exclude one vehicle without meeting further tests about the capability or actual use of the vehicle. For the purpose of applying this exclusion, all-electric homes will be considered to have fuel "piped in" if the household has electric heating devices in the home. \par \par Verification that the household does not have either water or heating fuel piped into its home may be requested if the household's statements are questionable. Households (including all electric homes) which have both fuel and water piped into the home must verify that the excluded vehicle is used to transport the household's primary source of heating fuel or water. Verification may be obtained through utility companies, collateral contacts, or through documentary evidence such as receipts for the purchase of wood.\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004431 - 4440 \'00SUBJECT: INCOME PRODUCING PROPERTY \'00 \par\'00{\ul DATE: 4-1-90 \'00 }\'00 \par \par \par 4431{\ul Property Related To the Use of Excluded Vehicles} \par \par Real or personal property which is directly related to the maintenance or use of a vehicle will be excluded as a resource if that vehicle is excluded as a resource because it is: \par \par 1.Annually producing income consistent with its fair market value; or \par \par 2.Used primarily (over 50 percent of the time that the vehicle is used) for income producing purposes such as, but not limited to taxis, trucks, or fishing boats; or \par \par 3.Used to transport a physically disabled household member. \par \par Only that portion of real property actually involved in the maintenance or use of an excludable vehicle is to be excluded under these provisions. \par \par{\ul Example 1}:A household owns a one-acre field but only uses 1/4 of that acre to park and maintain equipment for a self-employment enterprise. Only the 1/4 acre actually in use will be excluded. If the one acre tract is worth $1,000, 1/4 of the value is $250. $250 would be excluded as a resource. $750 would be counted as a resource. \par \par This method of determining the amount of a resource exclusion is not affected by state or local zoning laws or by the household's ability to convert the property to a cash resource. \par \par{\ul Example 2}:The household in example 1 above declares that the one acre tract they own is in an incorporated industrial area. They state that local laws prevent them from selling anything less than the full one-acre tract. In spite of this, only the $250 amount for the 1/4 acre actually used will be excluded as a resource. $750 will be counted as a resource. \par \par 4440{\ul Income Producing Property} \par \par Income producing property is one of the following. \par \par 1.Property which annually produces income consistent with its fair market value, even if only used on a seasonal basis (e.g. - farmland rented for the crop season). See FSC 4441 for instructions on determining fair market value. \par \par 2.Property essential to the employment or self-employment of a household member (e.g. - farmland used by a household member to produce a crop for sale). \par \par 3.Rental homes, which may be used by households for vacation purposes at some time during the year, but which annually produce income consistent with their fair market value. \par \par\page {\ul } \'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004440 - 4450 \'00SUBJECT: DETERMINING IF INCOME IS CON- \'00 \par\'00{\ul DATE: 5-1-95 \'00 SISTENT WITH FAIR MARKET VALUE}\'00 \par \par \par 4.Work related equipment, such as the tools of a tradesman or the machinery of a farmer, which is essential to the employment or self-employment of a household member. \par \par NOTE:Tools are excluded either as personal property or income producing property. \par \par Property essential to the self-employment of a household member engaged in a farm operation may be excluded as a resource for one year from the date the farm operation is terminated. The exclusion extends to vehicles used in the farming operation (FSC 4430) as well as land and machinery used in the operation. \par \par 5.Installment contracts payable to the household. See FSC 4570 for instructions on excluding installment contracts when the purchaser has defaulted on the agreement. \par \par 4441{\ul Determining if Income is Consistent with Fair Market Value} \par \par Fair market value is based upon the prevailing rate of return in the area where the property is located or used. \par \par Example:A house rented for $50 a month is considered to be producing income consistent with fair market value if similar houses in the same area rent for about the same amount. \par \par When the caseworker cannot determine whether property is producing income at the prevailing rate of return based upon information furnished by the household, a knowledgeable source may be contacted. A knowledgeable source is an individual who, by virtue of his professional experience, will be able to determine if the property is producing income consistent with fair market value. (For real property located in Arkansas, the assessed value times 5 will be used as the fair market value. See FSC 4712 for additional information.) Local realtors, local FHA or Small Business Administration Offices or the tax assessor may be sources of information about the value of real property located outside Arkansas. Local car dealers would have knowledge of the value of vehicles. The knowledgeable source will be provided with the appropriate information and asked to determine if the property is producing income at the prevailing rate of return. \par \par Households which disagree with the decision regarding fair market value or prevailing rate of return, will be offered the opportunity to provide verification of these items. \par \par NOTE: Property excluded as a resource because it is {\ul essential} to employment does not have to produce income consistent with fair market value. For example, land used by a farmer does not have to produce any countable income to be excluded. \par \par 4450{\ul Resources Excluded by Law} \par \par The current list of resources excluded by Federal statute includes the following items.\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004450 - 4450 \'00SUBJECT: RESOURCES EXCLUDED BY LAW \'00 \par\'00{\ul DATE: 8-1-94 \'00 }\'00 \par \par 1.Payments or allowances made under Federal law for the purpose of energy assistance. Examples of Federal payments which are excluded are energy assistance payments provided through the Department of Health and Human Services, Low-Income Energy Assistance Program (HEAP), the Community Services Administration's Energy Crisis Assistance, and Crisis Intervention Programs (CIP). Refer to FSC 5722 for treatment of HUD Utility Assistance payments. \par \par 2.Benefits received from the Special Supplemental Food Program for Women, Infants and Children (WIC) (P.L. 92-443, Sec. 9). \par \par 3.Reimbursement from the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (P.L. 91-646, Sec. 216). \par \par 4.Payments received from the Youth Incentive Entitlement Pilot Projects, the Youth Community Conservative and Improvement Projects, and the Youth Employment and Training Programs under Title IV of the Comprehensive Employment and Training Act Amendments of 1978 (P.L. 95-524). \par \par 5.Earned income credits received before January 1, 1980, as a result of P.L. 95-600, the Revenue Act of 1978, or the Review Readjustment Act of 1975 (P.L. 94-112). \par \par 6.Payments to farmers under Disaster Assistance Act of 1988 (P.L. 100-387). When the Secretary of Agriculture determines that a farm emergency exists due to a natural disaster, any payments made pursuant to such determination will be excluded as a resource. Refer to FSC 5405 for income exclusions and FSC 5640.2 for special payments to farmers. \par \par 7.Payments to Indian tribes as specified below: \par \par .Payments received by the Confederated Tribes and Bands of the Yakima Indian Nation and the Apache Tribe of the Mescalero Reservation from Indian Claims Commission as designated under P.L. 95-433, Sec. 2; \par \par .Payments to the Passamaquoddy Tribe and the Penobscot Nation or any of their members received pursuant to the Maine Indian Claims Settlement Act of 1980 (P.L. 96-420, Sec. 5); \par \par .Payments received from the disposition of funds to the Grand River Band of Ottawa Indians (P.L. 94-540); \par \par .Payments received under the Alaska Native Claims Settlement Act (P.L. 92-203, Sec. 21(a) or the Sac and Fox Indian Claims Agreement (P.L. 94-189); and \par \par .Payments received by certain Indian tribal members under P.L. 94-114, Sec. 6, regarding submarginal land held in trust by the United States. \par \par .Payments of relocation assistance to members of the Navajo and Hopi Tribes under P.L. 95-531.\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004450 - 4450 \'00SUBJECT: RESOURCES EXCLUDED BY LAW \'00 \par\'00{\ul DATE: 8-1-94 \'00 }\'00 \par \par .Payments to the Turtle Mountain Band of Chippewas, Arizona (P.L. 97-403); \par \par .Payments to the Blackfeet, Grosventre, and Assiniboine tribes (Montana) and the Papago (Arizona) (P.L. 97-408); \par \par .Per capita and interest payments made to the Assiniboine Tribe of the Fort Belknap Indian Community and the Assiniboine Tribe of the Fort Beck Indian Reservation (Montana) (P.L. 98-124, Section 5); \par \par .Per capita and interest payments made to the Red Lake Band of Chippewas (P.L. 98-123, Section 3, 10/13/83); \par \par .Payments to the Saginaw Chippewa Indian Tribe of Michigan (P.L. 99-346, Section 6(b) (2)); \par \par .Per capita payments to the Chippewas of Mississippi (P.L. 99-377, Section 4(b), 8/8/86); \par \par .Old Age Assistance Claims Settlement Act, provides that funds made to heirs of deceased Indians under this Act except for per capita shares in excess of $2,000 (P.L. 98-500, Section 8, 10/17/84); \par \par .Payments to the Puyallup Tribe of the State of Washington (P.L. 101-41, 6-21-89); and \par \par .Payments under the White Earth Reservation Land Settlement Act of 1985 to the White Earth Band of Chippewa Indians in Minnesota (P.L. 99-264); and \par \par .Payments under the Seneca Nation Settlement Act of 1990 to members of the Seneca Nation (P.L. 101-503). \par \par .Funds appropriated in satisfaction of judgements awarded to the Seminole Indians in dockets 73, 151, and 73-A of the Indian Claims Commission. \par \par .Funds distributed or held in trust for members of the Chippewas of Lake Superior (P.L. 99-146). \par \par .Assistance paid under P.L. 95-608, the Indian Child Welfare Act of 1978. \par \par .Payments to the Confederated Tribes of the Colville Reservation under the Grand Coulee Dam Settlement Act (P.L. 103-436). \par \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004450 - 4450 \'00SUBJECT: RESOURCES EXCLUDED BY LAW \'00 \par\'00{\ul DATE: 8-1-94 \'00 }\'00 \par \par 8.Per capita payments of $2,000 and less made under Public Law 98-64 to Native Americans from judgment awards and funds held in trust by the Secretary of the Interior and purchases made with certain per capita payments to specific tribes or bands of Indians. \par \par This exclusion applies on a per-person and {\ul not} a per-household basis. It applies individually to each payment regardless of how frequently the payments are made and regardless of the number of months for which the payment is made. When such payments are deposited in a bank or financial institution, the funds remain excluded. The length of the exclusion period will be determined by the type of funds in the account. See FSC 4960. \par \par The purchase exclusion extends only to purchases of property, including vehicles, which were made with funds distributed to Native Americans after December 31, 1981, but before January 12, 1983, under a plan approved by Congress. For the purpose of applying this policy, "purchases" refers to initial purchase only and not to subsequent purchases, e.g. trading in a car bought with excluded funds. Excluded property remains excluded only as long as it is held by the person who originally received the per capita payment with which it was purchased. \par \par The value of the property to be excluded depends on the amount of per capita payment used in its purchase. Property valued at $2,000 or less which was purchased with excluded per capita funds is totally excluded as a resource. Property which was purchased using a combination of excluded per capita funds and other household funds is excluded only to the extent per capita funds were used in the purchase. (For example, if property was purchased for $2,000 but only $1,000 of the purchase was made using per capita funds, only $1,000 of the property's value will be excluded as a resource.) If the property has depreciated in value, the current amount to be excluded must be based on a proportionate share of the original value. The percentage which the original exclusion was to the original purchase price will be determined and this percentage will be applied to the current market value. (Example, a vehicle was purchased in 1984 for $2,000. $1,000 of the funds used were excluded per capita funds. The percentage was 50%. The current value of the vehicle is $500. $250 of the vehicle's value will be excluded as a resource.) \par \par More than one per capita payment may have been received during the period from December 31, 1981 to January 12, 1983 by the person who purchased property using per capita payments. Since the $2,000 exclusion applies to each per capita payment, the total exclusion allowed for the property may exceed $2,000. (Example, an individual used a $2,000 per capita payment received in November 1982 and a $1,500 per capita payment received in December 1982 to purchase a lot valued at $3,500. The lot will be totally excluded as a resource.) \par \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004450 - 4450 \'00SUBJECT: RESOURCES EXCLUDED BY LAW \'00 \par\'00{\ul DATE: 8-1-94 \'00 }\'00 \par \par 9.Payments made to Vietnam veterans under the Agent Orange Veteran Payment Program as authorized by P.L. 101-201. Payments are made to Vietnam veterans who were exposed to Agent Orange while serving in Vietnam at any time between January 31, 1961 and December 31, 1971 and who became totally disabled before their 60th birthday. The Program does not make payments for disabilities or deaths caused by accidental, traumatic or self-inflicted injuries. \par \par Eligible veterans may receive a payment for each year they are disabled during the life of the Program. (The Program will end on December 31, 1994.) The size of each payment depends on the number of eligible applicants, the veteran's age, and the duration of the disability. Survivors of deceased veterans may receive one lump sum payment. The amount of the payment will be dependent on the number of eligible applicants, the year of death and the veteran's age at the time of death. \par \par P.L. 101-239, the Omnibus Reconciliation Act of 1989, Section 10405, also excluded payments made from the Agent Orange Settlement fund or any other fund established pursuant to the settlement in the Agent Orange product liability litigation, M.D.L. No 381 (E.D.N.Y.) \par \par 10.Payments of $20,000 made to U.S. citizens and permanent resident aliens of Japanese Ancestry who were confined, held in custody, relocated, or otherwise deprived of liberty or property during the period December 7, 1941 through June 30, ,1946. In order to receive a payment the individual must have been living on August 10, 1988, the date of enactment of the Wartime Relocation Act. \par \par If an eligible individual is deceased at time of payment, such payment may be made to a spouse, to children (equal shares), or to parents, if such persons are living at time of payment. \par \par Exclusion of these payments is mandated by the Civil Liberties Act of 1988 (P.L. 100-383). \par \par 11.Payments of $12,00 made to any Aleut Indian who, as a civilian, was relocated by authority of the United States from his home village on the Pribilof Islands or certain Aleutian Island to an internment camp or other temporary location during World War II. Payments of $12,000 will also be made to any Aleut born while his or her mother was interned or relocated during World War II. \par \par Exclusion of these payments is mandated by the Civil Liberties Act of 1988 (P.L. 100-383). \par \par 12.Payments received from the Federal Emergency Management Assistance (FEMA) under P.L. 93-288, Sec. 312 (d) as amended by P.O. 100-707, Sec. 105 (i). Funds distributed by FEMA under a {\ul disaster} or emergency would be excluded as a resource. Not all payments from FEMA are for disaster or emergency assistance. For payments to be excluded, the disaster or emergency would have to be declared by the President. Refer to FSC 5405 for income exclusions. \par \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004450 - 4451 \'00SUBJECT: AFDC AND SSI RECIPIENTS \'00 \par\'00{\ul DATE: 2-1-95 \'00 }\'00 \par \par 13.Payments received through the Radiation Exposure Compensation Act, (P.L. 101-426, Sec. 6 (h) (2), 10/15/90), provides that amounts paid to individuals under this section will be excluded as a resource. This law establishes a program to compensate individuals for injuries or deaths resulting from exposure to radiation from nuclear testing and uranium mining in Arizona, Nevada and Utah. Refer to FSC 5405 for income exclusions. \par \par 14.Income amounts necessary for the fulfillment of a PASS (Plans for Achieving Self-Support) under Title XVI of the Social Security Act will be excluded as a resource. \par \par 15.The value of assistance to children under P.L. 89-642, Section 11(b) of the Child Nutrition Act of 1966 and P.L. 79-396, the National School Lunch Act. \par \par 16.Under P.L. 102-235, the Higher Education Act Amendments of 1992, student financial assistance received under Title IV of the Higher Education or under Bureau of Indian Affairs student assistance programs will be excluded as a resource. See FSC 1622.3 for additional information. See FSC 1622.3 for additional information. \par \par 17.Payments made to individuals because of their status as victims of Nazi persecution under P.L. 103-286. This exclusion is effective for eligibility and benefit level determinations made on or after August 1, 1994. If an application was denied because of this income, benefits will be restored if household is otherwise eligible. Restoration will be authorized back to 8-1-94 or the date of application, whichever is later. \par \par 18.Earned Income Credits (EIC) payments received as a lump sum or as payments under section 3507 of the Internal Revenue Code by any household member. EICs are advance payments received as part of the employee's paycheck through a reduction in taxes withheld. These payments will be excluded for 12 months, provided the household was participating at the time of receipt of the earned income tax credit and provided the household participates continuously during that 12-month period. Breaks of one month or less due to administrative reasons, such as delayed recertification or missing or late monthly reports, will not be considered as nonparticipation in determining the 12-month exclusion. This exclusion is effective September 1, 1994. \par \par 19.Under P.L. 103-22, compensation made to crime victims as authorized by the Crime Act of 1984. \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004451 - 4451 \'00SUBJECT: AFDC AND SSI RECIPIENTS \'00 \par\'00{\ul DATE: 2-1-95 \'00 }\'00 \par \par 4451{\ul Resource Eligibility Standards for AFDC and SSI Recipients} \par \par{\ul A household member who receives SSI or AFDC is considered to have met the Food Stamp Program's resource limits}. In other words, if a household member receives SSI or AFDC benefits, that household member is categorically resource eligible for food stamp purposes and that member's resources, if identified, cannot be included when a household's total resources are calculated. \par \par A household member will be considered an AFDC or SSI recipient if he/she has been authorized to receive the assistance but has not yet received a payment. An individual will also be considered a recipient when AFDC or SSI benefits are recouped, suspended or not paid because the grant is less than a minimum benefit. \par \par Co-owned resources will not automatically be excluded under this policy. Instead, the resource will be handled in the same manner as any other jointly owned resource. See FSC 4910 and FSC 4601 for instructions. \par \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004460 - 4500 \'00SUBJECT: OTHER RESOURCES \'00 \par\'00{\ul DATE: 10-1-91 \'00 }\'00 \par \par 4460{\ul Other Excluded Resources} \par \par{\ul Earmarked Resources} \par \par Earmarked resources are governmental payments such as those made by the Department of Housing and Urban Development through the Individual and Family Grant Program or disaster loans or grants made by the Small Business Administration. Earmarked resources must be designated for the restoration of a home damaged in a disaster, {\ul and} the household must be subject to a legal sanction if the funds are not used as intended. \par \par{\ul Prorated Student Income and Self-Employment Income} \par \par Monies which have been prorated and considered as income are excluded as a resource. Examples of these will include: \par \par a. Student grants and loans, and \par b. Self-employment income. \par \par Refer to FSC 1622.3 for the procedure for handling student's income. \par \par Refer to FSC 5630 for the procedures for handling self-employment income. \par \par{\ul Burial Lots} \par \par One burial lot per household member will be excluded as a resource. \par \par{\ul Indian Lands} \par \par Lands held jointly with the Tribe, or land that can be sold only with the approval of the Bureau of Indian Affairs are considered Indian Lands. Indian Lands are excluded as a resource. \par \par 4470{\ul Verification of Excluded Resources} \par \par Excluded resources will be verified when questionable. Acceptable verification includes documentation or collateral contacts which establish that the resource is excludable. \par \par 4480{\ul Documentation of Excluded Resources} \par \par Document: \par \par 1.The type of resource; \par 2.The status of the resource as excluded; and \par 3.The reason for the exclusion. \par \par 4500{\ul Inaccessible Resources} \par \par Inaccessible resources are resources with a cash value not accessible to the household. Inaccessible resources include: \par \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004470 - 4510 \'00SUBJECT: IRREVOCABLE TRUST FUNDS \'00 \par\'00{\ul DATE: 9-1-92 \'00 }\'00 \par \par 1.Irrevocable trust funds; \par \par 2.Property in probate; \par \par 3.Real property for sale; \par \par 4.Resources of residents of shelter for battered women as specified below; \par \par 5.Security deposits; \par \par 6.Non-liquid resources against which a lien was placed to obtain a business loan; \par \par 7.Installment contracts which are not producing any income; and \par \par 8.Resources unlikely to produce any significant amount of funds if sold. \par \par An explanation of each type of inaccessible resource appears in the following sections of policy. \par \par 4510{\ul Irrevocable Trust Funds} \par \par Any funds in or transferred to a trust and the income produced by that trust are considered inaccessible if all of the following conditions exist. \par \par 1.The funds held in {\ul irrevocable trust} are either: \par \par a.Established from the household's own funds and used by the trustee {\ul solely} to make investments on behalf of the trust or to pay the educational or medical expenses of the beneficiary; or \par \par b.Established from non-household funds by a non-household member, and totally unavailable to the household. \par \par NOTE:If the household can petition the court to obtain money from a trust for reasons such as purchasing personal items or paying living expenses, the fund is not considered an irrevocable trust. \par \par 2.The trust arrangement will not likely cease during the certification period, and no household member has the power to revoke the trust arrangement or to change the name of the beneficiary. \par \par 3.The trustee administering the funds is either: \par \par a.A court, institution, corporation, or organization not under the direction or ownership of any household member; or \par \par b.An individual appointed by the court who has court imposed limitations placed upon the use of the funds. \par \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004510 - 4520 \'00SUBJECT: PROPERTY IN PROBATE \'00 \par\'00{\ul DATE: 10-1-86 \'00 }\'00 \par \par 4.The trust investments made on behalf of the trust do not directly involve or assist any business or corporation under the control, direction or influence of a household member. \par \par Verify if questionable. Acceptable verification of inaccessible trust accounts include: \par \par a.Statements from the financial institution managing the trust describing the terms of the trust; or \par \par b.Court orders or letters from the court describing the terms of the trust. \par \par Document: \par \par a.The amount of the trust fund; \par \par b.The name of the person for whom the account is held in trust; \par \par c.The name of the trustee, and the name of the financial institution handling the trust; and \par \par d.The reasons for the decision to consider the trust accessible or inaccessible. \par \par 4520{\ul Property in Probate} \par \par Property that household members expect to inherit following a decision of the court is considered an inaccessible resource. \par \par Verify if questionable. Acceptable verification includes: \par \par a.A statement from an attorney; or \par \par b.A legal document, such as a court order. \par \par Document: \par \par a.A description of the property the household expects to inherit; \par \par b.When the household expects to receive the property; and \par \par c.If verification is required, why the inaccessible resources were considered questionable, and the verification obtained. \par \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004520 - 4540 \'00SUBJECT: PROPERTY FOR SALE/RESIDENTS OF\'00 \par\'00{\ul DATE: 10-1-86 \'00 SHELTERS }\'00 \par \par \par 4530{\ul Real Property For Sale} \par \par Real property that the household is making a good faith effort to sell at a reasonable price is considered an inaccessible resource. \par \par Verify if questionable. Accept as proof of a good faith effort to sell real property at a reasonable price - collateral statements, listings from real estate brokers, or advertisements in local newspapers. \par \par Document: \par \par a.Information about the property for sale - i.e. number of acres of land, location of house, etc.; and \par \par b.The information used to establish a good faith effort to sell the property at a reasonable price. \par \par 4540{\ul Resources of Residents of Shelters for Battered Women and Children} \par \par Resources are considered inaccessible to persons residing in shelters for battered women and children if: \par \par 1.The resources are jointly owned by the residents and any members of their former household; and \par \par 2.The resident's access to the value of the resources is dependent upon the agreement of a joint owner who still resides in the former household. \par \par Verify that resources of shelter residents are inaccessible only when questionable. {\ul In} {\ul no} {\ul instance} {\ul will} {\ul verification} {\ul be} {\ul requested} {\ul if} {\ul such} {\ul verification} {\ul will} {\ul jeopardize} {\ul the} {\ul safety} {\ul of} {\ul the} {\ul resident}. \par \par Acceptable verification includes: \par \par a.Bank statements, pass books or correspondence indicating that an account is jointly owned; \par \par b.Car payment books or loan agreements indicating that vehicles are jointly owned; \par \par c.Payment books, loan agreements or correspondence indicating that property is jointly owned; or \par \par d.Collateral contacts only if: \par \par 1. The resident has designated the collateral; and \par \par 2.{\ul Contact} {\ul with} {\ul the} {\ul collateral} {\ul will} {\ul not} {\ul jeopardize} {\ul the} {\ul safety} {\ul of} {\ul the} {\ul resident}. \par \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004540 - 4560 \'00SUBJECT: SECURITY DEPOSITS/NON-LIQUID\'00 \par\'00{\ul DATE: 10-1-87 \'00 RESOURCES WITH LIEN }\'00 \par \par \par Document why the resources of the resident are inaccessible. If inaccessibility is questionable, documentation must include: \par \par a.Why the inaccessibility is questionable; and \par \par b.How the questionable information was resolved. Due to the resident's special circumstances, questionable resources will be resolved through available sources. {\ul The} {\ul co-owner} {\ul of} {\ul the} {\ul resources} {\ul must} {\ul not} {\ul be} {\ul contacted}. \par \par 4550{\ul Security Deposits} \par \par Deposits paid by the household to secure rental property or utilities are considered inaccessible resources. \par \par NOTE:Security deposits become accessible resources when they are refunded to the household. \par \par{\ul If} {\ul questionable}, accept as verification of security deposits receipts or statements from the holder of the deposit. \par \par Document: \par \par a.The nature of the questionable information; \par \par b.How the questionable circumstances were resolved; and \par \par c.The method/document used to verify the deposits. \par \par 4560{\ul Non-Liquid Resources Against Which a Lien is Placed} \par \par Non-liquid resources such as land, crops, buildings, timber, farm equipment or machinery will be considered an inaccessible resource if: \par \par 1.A lien has been placed against the property; and \par \par 2.The lien results from a member of the household having obtained a business loan; and \par \par 3.The owner of the business has agreed not to sell the property until the note is paid. (This insures that the creditor's collateral interest is protected.) \par \par This exclusion will not apply if the property owner could sell the mortgaged property and use the proceeds to pay off the loan. It applies only when the household is prohibited by the agreement from selling the mortgaged property. \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004570 - 4600 \'00SUBJECT: INSTALLMENT CONTRACTS/ \'00 \par\'00{\ul DATE: 9-1-92 \'00 COUNTABLE RESOURCES }\'00 \par \par \par 4570{\ul Installment Contracts as Inaccessible Resources} \par \par Installment contracts are agreements under which an individual receives a monthly payment on property which has been sold. See FSC 5710 for instructions on determining the amount of income received under an installment contract which is to be counted as income in the food stamp budgeting process. \par \par When installment contracts are not producing any income because the purchaser is defaulting on the payments, the contract is considered an inaccessible resource. This is true until the property legally reverts back to the seller. \par \par 4580{\ul Resources Unlikely to Produce Significant Return} \par \par A resource is considered inaccessible if,as a practical matter, the household is unable to sell the resource for any significant return. A significant return is any return estimated to be one-half or more of the applicable resource limit for the household after estimated costs of sale or disposition and taking into account the ownership interest of the household. \par \par A resource is considered inaccessible if its sale or other disposition is unlikely to produce any significant amount of funds for the support of the household. A significant amount of funds is any amount estimated to be one-half or more of the applicable resource limit for the household. \par \par Example -A household member owns a lot jointly with three siblings who are not household members. The lot is valued at $4,000. Costs of selling the lot are estimated at $500. $4,000 - $500 = $3,500 \'d6 4 = $875. $875 is less than one-half the household's resource limit of $2,000. \par \par This policy does not apply to vehicles, to stocks or bonds or to other negotiable financial instruments. \par \par Verification of the value of a resource to be excluded will be required only if the information provided by the household is questionable. \par \par 4600{\ul Determining and Verifying Countable Resources} \par \par All non-excluded resources will be counted when determining the household's eligibility based upon resources. To determine a household's total countable resources, consider the resources available to all eligible household members and any household member disqualified for: \par \par 1.Intentional Program Violation; \par 2.Failure to comply with the SSN requirement; or \par 3.Failure to comply with Project SUCCESS/Workfare. \par \par Resources of ineligible aliens are also considered if the alien would otherwise be considered a household member. \par \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004600 - 4601 \'00SUBJECT: COUNTABLE RESOURCES/OWNERSHIP\'00 \par\'00{\ul DATE: 6-1-90 \'00 OF LIQUID BANK ACCOUNTS }\'00 \par \par \par NOTE:Countable resources of disqualified members or ineligible aliens are considered totally available to the household. \par \par Listed below are examples of liquid resources. \par \par 1.Advanced Earned Income Tax Credits (AEITC) \par 2.Bonds. \par 3.Cash on hand. \par 4.Funds held in individual retirement accounts (IRA's). \par 5.Funds held in Keogh Plans (when held solely by the household members). \par 6.Money in checking or savings accounts including Christmas clubs, children's accounts. (See FSC 4601 for information about ownership of bank accounts.) \par 7. Mutual Funds. \par 8.Savings certificates. (See FSC 4601 for information about ownership.) \par 9.Stocks. \par \par Liquid resources must be verified at initial application and thereafter when a new liquid resource is reported or when information about previously reported resources is incomplete, inaccurate, inconsistent or outdated. See the {\ul Glossary}, definition of "Verification" for additional information. \par \par A full description of each type of resource, acceptable verification, and documentation is contained in the following sections of policy. \par \par 4601{\ul Ownership of Liquid Bank Accounts} \par \par When a food stamp household member holds a joint bank account or certificate of deposit with a member of another household and this ownership will make the household ineligible for food stamps, the caseworker must determine how much, if any, of the funds will be counted a resource to the household. This determination will generally be based upon ownership of the funds. \par \par Ownership is defined as to have or to hold as property or to possess. Normally, a person is considered as the owner of funds in a bank account if that person earned, received, or was given the funds which were deposited into the account. For example, a food stamp household is not considered to be the owner of the funds in an account when no household member earned, received or was given any of the funds in the account. \par \par The owner of the bank account is usually the one who deposits the money into the account or for whom deposits are made. \par \par Example - An elderly client deposits her social security checks into a checking account each month. Her daughter's name has been added to the account. None of the daughter's funds have been deposited into the account. The client is the sole owner of the account. \par \par There are exceptions. \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004601 - 4610 \'00SUBJECT: OWNERSHIP OF LIQUID BANK \'00 \par\'00{\ul DATE: 10-1-87 \'00 ACCOUNTS/BONDS }\'00 \par \par \par Example - A legally married husband and wife are considered joint owners of the funds in a bank account as long as both names appear on the account. This is true regardless of which spouse deposits money to the account. \par \par Ownership of funds in jointly owned bank accounts will be established through written statements from each of the joint owners. In the event that at least one of the joint owners cannot be located or refuses to cooperate, the caseworker will attempt to establish ownership of the funds in the account through collateral contact. Suggested sources of collateral contact include bank officers, attorneys, accountants or friends or relatives familiar with the arrangements of the co-owners of the bank account. \par \par If no collateral contact familiar with the arrangement can be located or will cooperate, the household may be certified based only upon the written statements of any co-owner who is a household member. However, all efforts to obtain verification must be fully documented in the case record. Such documentation will also contain a statement of why any collateral contact received could not be used. \par \par If none of the money is owned by the food stamp household but the owner states the household is permitted to use some or all of the money in the account, then count the amount that the household has been given permission to use. In this situation ownership is transferred to the food stamp household. \par \par 4610{\ul Bonds} \par \par The total current surrender value of all bonds held by the household will be considered a countable resource. The cash surrender value of bonds is determined by use of a schedule. Schedules may be obtained from the household or from the bank, savings and loan, or broker from which the bonds were purchased. Information about the redemption value of U. S. Savings Bonds may be obtained from most banks. Information is also available from: \par \par Federal Reserve Bank \par 325 W. Capitol \par Little Rock, AR 72201 \par \par Acceptable forms of verification include: \par \par a.The bonds and verification of redemption value; or \par \par b.Collateral contact with the broker, attorney or bank handling the bonds. The collateral must specify the number of bonds held by the household and the current redemption value. \par \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004610 - 4621 \'00SUBJECT: BONDS/CASH ON HAND/INDIVIDUAL\'00 \par\'00{\ul DATE: 2-1-95 \'00 RETIREMENT ACCOUNTS (IRA's) }\'00 \par \par \par Document: \par \par a.The type of bond; \par \par b.The number of bonds held by the household; \par \par c.The current cash surrender value of each bond; \par \par d.The figures used to determine the total value of the bonds; and \par \par e.The verification obtained. \par \par 4620{\ul Cash on Hand} \par \par The current amount of cash on hand ({\ul less} {\ul any} {\ul current} {\ul income}) will be considered a countable resource. \par \par The household's statement will be accepted as verification of cash on hand. \par \par Document: \par \par a.The total amount of cash on hand available; \par \par b.The amount of cash on hand which is current income; and \par \par c.The figures used to determine cash on hand less current income. \par \par 4621{\ul Section Deleted - See FSC 4450 and FSC 5405} \par \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004630 - 4640 \'00SUBJECT: KEOGH PLANS \'00 \par\'00{\ul DATE: 2-1-95 \'00 }\'00 \par \par 4630{\ul Individual Retirement Accounts (IRA's)} \par \par An IRA is a tax-deferred retirement account. IRAs are authorized for all employed persons and their spouses. IRAs are not true salary reduction plans since they are available to workers without any involvement of the employer and they do not directly reduce the salary received by the worker. \par \par The current value of the IRA less the amount of any penalty for early withdrawal will be considered a countable resource. \par \par NOTE:Interest paid on IRA's will be considered income and handled as specified in FSC 5711. \par \par Acceptable verification includes: \par \par a.A current statement (usually received quarterly); or \par \par b.Collateral contact with the financial institution specifying the current amount in the account, the date and amount of the most recent interest payment, and the penalty for early withdrawal. \par \par Document: \par \par a.The current amount in the IRA account; \par \par b.The penalty for early withdrawal; \par \par c.The figures used to calculate the countable resource amount; and \par \par d.The verification obtained. \par \par 4640{\ul Keogh Plans} \par \par The Keogh Plan is a tax-deferred retirement account. Keogh Plans are not income-reducing retirement accounts. They are limited to self-employed persons. \par \par Keogh Plans which involve only household members are considered a countable resource. Those Keogh Plans which involve both household members and non-household members are excluded as an inaccessible resource. \par \par Consider the current amount of non-excluded Keogh Plans (less any penalty which would be extracted for early withdrawal) as a countable resource. Interest on non-excluded Keogh Plans will be considered income and handled as specified in FSC 5711. \par \par Acceptable verification includes: \par \par a.A current account statement; or \par \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004640 - 4650 \'00SUBJECT: MONEY IN CHECKING AND \'00 \par\'00{\ul DATE: 10-1-87 \'00 SAVINGS ACCOUNTS }\'00 \par \par b.Collateral contact with the financial institution describing the terms of the account, the current amount in the account, the date and amount of the most recent interest payment and the penalty for early withdrawal. \par \par To establish that a Keogh Plan is inaccessible due to a contractual agreement with non-household members, the household may provide: \par \par a.A copy of the contract; or \par \par b.Collateral contact with the attorney or financial institution which established the agreement. The collateral contact must specify the terms of the contract. \par \par Document: \par \par a.How it was determined whether the Keogh Plan is accessible to the household; \par \par b.The penalty for early withdrawal; \par \par c.The figures used to calculate the countable resource amount; and \par \par d.The verification obtained. \par \par 4650{\ul Money in Checking and Savings Accounts} \par \par The current amount in any checking account, savings accountor credit union account. ({\ul less} {\ul any} {\ul current} {\ul income}) will be considered a countable resource. This includes accounts established for minor children (except trust funds as specified in FSC 4510) and special accounts such as Christmas clubs. Also included are accounts belonging to non-household members {\ul when} a household member has access to such accounts. See FSC 4601 for instructions on determining ownership of and access to such accounts. \par \par NOTE:Interest paid on checking and savings accounts will be considered income and handled as specified in FSC 5711. \par \par Acceptable verification includes: \par \par a.Updated passbooks; \par \par b.Current bank statements; or \par \par c.Collateral contact with the bank which specifies the household's current balance {\ul and} recent withdrawals or deposits. The period of time for which withdrawals or deposits must be indicated may be specified by the caseworker. The caseworker will consider the balance declared by the household, the current income, and any large amounts of income recently available to the household. \par \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004650 - 4651 \'00SUBJECT: MUTUAL FUNDS \'00 \par\'00{\ul DATE: 10-01-87 \'00 }\'00 \par \par Document: \par \par a.The current amount in each checking and/or savings account; \par \par b.Any current income included in the accounts; \par \par c.The figures used to calculate the countable resource amount; and \par \par d.The verification obtained. \par \par 4651{\ul Mutual Funds} \par \par The total amount currently invested by a household in a mutual fund will be considered a countable resource unless the mutual fund is a retirement account set up by an employer which is inaccessible to the household. \par \par Mutual funds are accounts set up with money deposited by a group of individuals. Usually, a minimum deposit is required and the depositor is said to "own" so many "shares" of the mutual fund. The money in the fund is used by a manager/broker to make a variety of investments on behalf of the investor. For example, the funds may be placed in CD's or used to purchase stocks or bonds. In return, each investor receives a pro-rata share of any profits from the investment. \par \par NOTE:The income received as profits from the fund will be considered unearned income in the month received or will be prorated over the period of intended use. (If the household is monthly reporting, the income will always be counted in the budget month received.) \par \par Normally, the money invested in a mutual fund is accessible to the household. Although there may be a 6 to 7 day delay in the receipt of the money; usually, there is not a penalty for withdrawal. When a household has funds in a mutual fund set up as a retirement account by a member's employer, the household may not have access to the funds or may only have limited access. Such situations will be evaluated on a case by case basis. \par \par Acceptable verification of the amount invested in a mutual fund includes: \par \par a.A current statement from the fund; or \par \par b.Collateral contact with the financial institution handling the fund; or \par \par c.In the case of mutual funds set up as a retirement fund, a statement from the employer. This statement should also verify the household's accessibility to money invested in the fund. \par \par Document: \par \par a.The name of the financial institution, broker etc. managing the fund; \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004651 - 4660 \'00SUBJECT: SAVINGS CERTIFICATES \'00 \par\'00{\ul DATE: 10-1-87 \'00 }\'00 \par \par b.The amount the household currently has invested in the fund; and \par \par c.If the fund is a retirement fund, the terms under which the household may gain access to the money in the fund. \par \par 4660{\ul Savings Certificates} \par \par The total current amount of money held in savings certificates (e.g. money markets, certificates of deposits) will be considered a countable resource. {\ul Do} {\ul not} {\ul deduct} {\ul any} {\ul penalties} {\ul which} {\ul might} {\ul be} {\ul extracted} {\ul for} {\ul early} {\ul withdrawal}. Include any certificates owned by a non-household member when a household member is a co-owner {\ul and} the certificate is accessible to the household member. {\ul Determine} {\ul if} {\ul the} {\ul certificate} {\ul is} {\ul available} {\ul to} {\ul the} {\ul household} {\ul member} {\ul by} {\ul reviewing} {\ul the} {\ul terms} {\ul of} {\ul the} {\ul contract}. {\ul For} {\ul example}, {\ul if} {\ul the} {\ul certificate} {\ul specifies} {\ul that} {\ul the} {\ul certificate} {\ul would} {\ul be} {\ul payable} {\ul to} {\ul the} {\ul household} {\ul member} {\ul only} {\ul upon} {\ul the} {\ul death} {\ul of} {\ul the} {\ul owner}, {\ul the} {\ul funds} {\ul are} {\ul considered} {\ul inaccessible}. See FSC 4601 for instructions on determining ownership of and access to such accounts. \par \par NOTE:Interest paid on savings certificates will be considered income and handled as specified in FSC 5711. \par \par Acceptable verification includes: \par \par a.Current statements of account; or \par \par b.Collateral contact with the financial institution specifying the current value of the savings certificate and the most recent interest payment. \par \par The certificate itself will be acceptable only if it reflects the current amount in the account. \par \par Verify accessibility to jointly owned certificates when questionable. \par \par Acceptable verification includes: \par \par a.The certificate if it establishes the terms of the co-ownership; or \par \par b.Collateral contact with an attorney or lending institution which establishes the terms of the co-ownership. \par \par Document: \par \par a.The kind of savings certificate; \par \par b.The terms of the certificate (e.g. when it will come to maturity); \par \par c.The owner or owners of the certificate; and \par \par d.The current amount of the certificate. \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004660 - 4670 \'00SUBJECT: STOCKS \'00 \par\'00{\ul DATE: 10-1-86 \'00 }\'00 \par \par When establishing accessibility to jointly owned accounts, document: \par \par a.The terms of the co-ownership; \par \par b.Whether or not the terms of the co-ownership were considered questionable; and \par \par c.If co-ownership was considered questionable, how the terms were verified. \par \par 4670{\ul Stocks} \par \par The current per-share value multiplied by the total number of shares held by the household will be considered a countable resource. To determine the current per-share value of stocks, refer to the stock exchange report in the newspaper. Use the most recent report available. For stocks not listed, contact a stock broker, local financial institution, or the company which issued the stock to determine the per-share value. \par \par Multiply the per-share value times the number of shares held by the household. {\ul Do} {\ul not} deduct anticipated sale costs such as broker's fees. \par \par Acceptable verification of the number of stocks held includes: \par \par a.The stock certificates; or \par \par b.Collateral contact with broker, local financial institution or the company issuing the stock. The contact must verify the name of the stock and the number of shares held by the household. \par \par Acceptable verification of per-share amount includes: \par \par a.The most recent stock exchange report from a daily newspaper; or \par \par b.Contact with a stock broker, financial institution, or the company which issued the stock. \par \par Document: \par \par a.The name of the stock; \par \par b.The number of the stocks held by the household; \par \par c.The per-share value; \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004670 - 4712 \'00SUBJECT: STOCKS/NON-LIQUID RESOURCES\'00 \par\'00{\ul DATE: 6-1-90 \'00 }\'00 \par \par d.The figures used to calculate the total value of the stock; and \par \par e.The verification obtained. \par \par When stock is sold the household is converting a resource from one form to another. The net amount received will be considered a liquid resource. \par \par 4700{\ul Non-Liquid Resources} \par \par Non-liquid resources are {\ul non-excluded}, {\ul accessible} assets such as {\ul land} or vehicles which may be converted to cash. Examples of non-liquid resources are listed below. \par \par 1.Boats/boat motors/boat trailers. \par \par 2.Buildings/houses/mobile homes not used as the household's residence. \par \par 3.Burial lots in excess of one per household member. \par \par 4.Vacation homes/time-share condominiums/RV-park shares. \par \par 5.Vehicles (licensed and unlicensed) including cars, trucks, vans, recreational vehicles, motorcycles, all terrain vehicles, golf carts, go-carts, mopeds and campers). \par \par 6.Any personal property not specifically excluded in FSC 4420. \par \par 7.Land not excluded in FSC 4410. \par \par 4712{\ul Determining the Countable Resource Value of Non-Liquid Resources} \par \par For all non-liquid resources except vehicles, the equity value will be considered a countable resource. (See FSC 4810 for instructions for determining the countable resource value of vehicles.) The equity value is the fair market value of the resource less encumbrances. \par \par Generally, fair market value is the price which a willing seller could obtain for a property from a willing buyer. Fair market value is usually dependent upon several factors including the condition of the property and the rate at which similar property is being sold. \par \par For food stamp purposes, the fair market value of real property located in Arkansas will be the current assessed value times 5. (The current assessed value represents 20% of the fair market value. By multiplying the assessed value X 5, the current fair market value will be obtained.) For example, if the assessed value is $250, the caseworker must multiply $250 X 5 to obtain fair market value. $250 X 5 = $1,250. $1,250 is the fair market value. \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004712 - 4713 \'00SUBJECT: COUNTABLE RESOURCE VALUE/ \'00 \par\'00{\ul DATE: 6-1-90 \'00 VERIFICATION OF NON-LIQUID RESOURCES}\'00 \par \par To establish the fair market value of real property located outside Arkansas or of personal property, the caseworker is not required to use the assessed value. \par \par Encumbrances are defined as the balance of the debt owned on the property excluding interest payments and other fees. \par \par Three examples of the procedures used to determine countable resource value are given below. \par \par Example 1:A household reports on its food stamp application a lot at Fairfield Bay. The lot is being purchased as an investment. The current fair market value of the lot is verified as $5,000. The household owes a balance of $3,980 on this property. The equity value is calculated as follows: \par \par $5,000 Current Fair Market Value \par{\ul -3,980} Encumbrances \par $1,020 Equity Value \par \par Example 2:A household is buying a mobile home. They lived in the home for a while but have now moved into a house they are renting across town. Their son is occupying the mobile home free of charge. The current fair market value of the mobile home is verified as $6,000, and the household still owes $1,000. The equity is calculated as follows: \par \par $6,000 Fair Market Value \par{\ul -1,000} Encumbrance \par $5,000 Equity Value \par \par Example 3:A household owns a boat, motor and trailer. The household states that the boat, motor and trailer are worth approximately $900. They owe nothing on the rig. The equity value is $900. \par \par 4713{\ul Verification of Non-Liquid Resources (Excluding Vehicles)} \par \par Non-liquid resources will be verified when \par \par 1)The household makes application for food stamps for the first time; \par \par 2)The household declares the resource for the first time; or \par \par 3)The information about amount preciously verified becomes incomplete, inaccurate, inconsistent or outdated. See the {\ul Glossary}, definition of "Verification" for additional information. \par \par NOTE:If the declared equity value of the resource makes the household ineligible, no verification will be requested. \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004713 - 4714 \'00SUBJECT: DOCUMENTATION OF NON-LIQUID\'00 \par\'00{\ul DATE: 10-1-87 \'00 RESOURCES }\'00 \par \par Acceptable verification of fair market value of real property located in Arkansas is a statement from the accessor in the county in which the property is located. This includes the household's notice of reappraisal and/or a tax bill if it reflects the assessed value of the property after the reappraisal. \par \par Acceptable verification of fair market value of real property located outside Arkansas is a statement from a source knowledgeable of the fair market value of the property. Examples of such sources include local realtors, local Farmer's Home employees, or local tax assessors. \par \par Acceptable verification of the fair market value of personal property is a statement from a knowledgeable source. For example, verification of the value of a boat and motor could be supplied by a person who owns a store which sells boats and motors. Personal property may also be verified by newspaper ads in which similar property is being offered for sale. If a newspaper is used as verification, a copy of the ad may be placed in the case record. The name of the newspaper and the date the ad ran should be documented in the case record. \par \par Acceptable verification of an encumbrance may include: \par \par a.Payment books; \par \par b.Bank schedules; or \par \par c.A statement from the lender specifying the total principle amount of the indebtedness. \par \par Any verification of an encumbrance must specify the amount of the principle owed. \par \par 4714{\ul Documentation of Non-Liquid Resources} \par \par Document: \par \par a.A complete description of the resource (include the legal description of real property if available); \par \par b.The household's statements regarding the fair market value of the resource and any encumbrances; and \par \par c.Whether the declared value of the resource is questionable. \par \par If the declared value of the resource is questionable, document: \par \par a.Why the value is questionable; and \par \par b.The verification obtained. \par \par Also, document the figures used to determine the equity value of any resource. \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004800 - 4811 \'00SUBJECT: VEHICLES/OWNERSHIP \'00 \par\'00{\ul DATE: 10-1-95 \'00 }\'00 \par \par 4800{\ul Vehicles} \par \par 4810{\ul Summary} \par \par This section defines licensed and unlicensed vehicles and describes the procedures used to determine the resource value for each countable vehicle. This section will not discuss vehicles excluded as a resource. See FSC 4430 for an explanation of vehicles excluded from resource determination. \par \par Each non-excluded vehicle must be evaluated to determine what resource value (if any) will be counted in the food stamp budget. This includes both licensed and unlicensed vehicles. Unlicensed vehicles will be evaluated even if they are not running. "Junked" cars must be evaluated as well. The resource value of all vehicles will always be either: \par \par *1.The fair market value less $4,600; or \par \par 2.The equity value. \par \par *The fair market value less $4,600 will be assigned to {\ul licensed} vehicles when the vehicle is: \par \par 1.Used as the household's family car; \par \par 2.Used to transport household members to employment, to training or education preparatory to employment, or to seek employment in compliance with the WORK Program. \par \par *{\ul The} {\ul greater} {\ul of} the fair market value less $4,600 {\ul or} the equity value will be assigned to {\ul all} {\ul other} {\ul licensed} vehicles. \par \par Equity value (fair market value less encumbrances) will be assigned to all {\ul unlicensed} vehicles. \par \par 4811{\ul Ownership of Vehicles} \par \par The question of ownership of a vehicle arises when the title to a vehicle is held jointly in the name of two people but only one person has possession of the vehicle or when the title is held solely by one person but the vehicle is considered to belong to someone else because that person {\ul is} {\ul paying} {\ul for} {\ul the} {\ul vehicle} {\ul and} {\ul drives} {\ul and} {\ul maintains} {\ul the} {\ul vehicle}. For example, a parent may allow a child to purchase a vehicle in the parent's name if the child cannot get the necessary credit approval. \par \par Under Arkansas law, when property is bought by one person with the money or assets of another, the property actually belongs to the person who furnished the money or assets to purchase the property. Therefore, when the title to an automobile is held by a member of a food stamp household, yet he verifies he has no access to the vehicle and he is not paying for the vehicle, the vehicle should not be counted as a resource to his \par \par *Under the authority of Section 13923 of the Mickey Leland Childhood Hunger Relief Act (Public Law 103-66), the new resource disregard of $4,600 for vehicles must be implemented effective 10-1-95. \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004811 - 4821 \'00SUBJECT: VEHICLES/OWNERSHIP \'00 \par\'00{\ul DATE: 10-1-95 \'00 }\'00 \par \par household. (The vehicle will be considered a resource to household of the person who furnished the money to purchase the vehicle and who drives and maintains the vehicle.) \par \par In these instances, the household will be asked to provide verification of that someone other than a household member is making payments on the vehicle and drives and maintains the vehicle. Verification of non-accessibility must be in the form of canceled checks or money order receipts showing the name of the person who actually makes the car payments and other documents (gas tickets, repair bills, etc.) which show use and maintenance of this vehicle by this person. In the absence of any of these documents, the household may provide collateral statements to provide the vehicle is inaccessible. \par \par NOTE:This policy will not be applied to those situations where one person owns a vehicle but allows another person to drive it. The policy will only apply when the person {\ul who has possession of the vehicle is making payments on the vehicle and is using his own funds to maintain the vehicle}. \par \par 4820{\ul Definition of a Licensed Vehicle} \par \par A licensed vehicle is a vehicle {\ul currently} licensed by a state to operate on public roads and highways. Vehicles which bear a temporary dealer's permit are considered licensed. \par \par 4821{\ul Determining the Countable Resource Value of Licensed Vehicles} \par \par The resource value assigned to all licensed vehicles for purposes of determining food stamp eligibility will be either: \par \par 1.The fair market value less a $4,650 limit; or \par 2.The equity value. \par \par Fair market value less $4,650 limit will be assigned to the following licensed vehicles. \par \par 1.{\ul The} {\ul family} {\ul car}. This is the vehicle used as the household's primary source of transportation. If the household has more than one vehicle, the {\ul household} {\ul designates} {\ul which} {\ul vehicle} {\ul is} {\ul the} {\ul family} {\ul car}. \par \par NOTE:A household may own only one vehicle and be ineligible for food stamps if the fair market value less the $4,650 limit exceeds the resource limits. For example, if a household without an aged member owns one vehicle and that vehicle's fair market value is $7,000, the household is ineligible. ($7,000 - $4,650 = $2,350) \par \par 2.{\ul Cars} {\ul used} {\ul for} {\ul transportation} {\ul to} {\ul work}. This includes {\ul all} vehicles necessary for household members to accept or continue employment or use for transportation to a school or other site for training or education preparatory to employment. (This does not include vehicles used by high school students for transportation to school.) Also included are {\ul all} vehicles used by household members to comply \page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004821 - 4821 \'00SUBJECT: VEHICLES/OWNERSHIP \'00 \par\'00{\ul DATE: 10-1-95 \'00 }\'00 \par \par with a Project SUCCESS requirement. See FSC 3400. Vehicles used for transportation to work do not lose their exempt status during temporary periods of unemployment. \par \par Fair market value is the average trade-in value of the vehicle as listed in the most recent "NADA Book" available in the county office with the following exceptions: \par \par 1.The vehicle is too new or too old to appear in the "NADA Book"; or \par 2.The value is not listed in the "NADA Book" for another reason; or \par 3.The household disputes the "NADA Book" value and presents conclusive proof that the current "NADA Book" value is inaccurate. \par \par NOTE:Do not consider the value of special or optional equipment or low mileage when determining the average trade-in value of a vehicle. \par \par New "NADA Books" are provided to all county offices every six months. When the vehicle is too new to appear in the "NADA Book", the current average trade-in value can be determined by contacting a local car dealer. When establishing the value of new vehicles, keep in mind that most new vehicles decrease substantially in value when purchased since the vehicle is now considered "used". Therefore, information such as contracts for purchase may be inaccurate. \par \par When the vehicle is too old to appear in the "NADA Book", the household's statement of value may be accepted if the statement is not questionable. To determine if the statement is questionable, consider the age and make of the vehicle. For example, luxury cars such as Cadillacs, Mercedes, and Porsches do not lose value as quickly as other cars. A four-wheel drive vehicle will usually retain a high value also. Antique vehicles may have a high resale value if such vehicles have been properly maintained or have been restored. \par \par The household has a right to dispute the average trade-in value of a vehicle as stated in the "NADA Book" if: \par \par 1.The vehicle has been damaged in a wreck or through other means; \par 2.The vehicle is inoperable due to motor failure or other major malfunction; or \par 3.The vehicle is a model which is generally unpopular and/or subject to malfunction making the vehicle difficult to resell. \par \par It is the household's responsibility to provide conclusive proof of the vehicle's current fair market value. The vehicle's current value may be substantiated by statements from dealers or newspaper ads. Statements from reputable repair shops verifying motor failures or other major malfunctions or police reports verifying wrecked vehicles may be accepted as proof of the current condition. Other proof may be accepted if it is conclusive in the caseworker's judgment. \par \par If the documentation submitted by the household is inconclusive or questionable, additional documentation may be requested. Also, the caseworker may re-contact collateral sources such as dealers to determine \page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004821 - 4821 \'00SUBJECT: VEHICLES/OWNERSHIP \'00 \par\'00{\ul DATE: 10-1-95 \'00 }\'00 \par \par how the value was assigned to the vehicle. Before contacting the dealer, the caseworker may wish to consult publications similar to the "NADA Book" or may check newspaper ads to determine the value of similar vehicles. \par \par In such situations the caseworker must always provide documentation as instructed below. \par \par 1.{\ul Why} {\ul the} {\ul documentation} {\ul provided} {\ul is} {\ul considered} {\ul questionable} {\ul or} {\ul inconclusive} - e.g. was the value stated by a dealer substantially less than the NADA book value? Was any reason given by the dealer for this difference in value? Is the reason plausible? \par 2.{\ul What} {\ul the} {\ul household} {\ul was} {\ul instructed} {\ul to} {\ul do} {\ul to} {\ul clear} {\ul up} {\ul the} {\ul questionable} {\ul documentation}. (The household should be issued an DCO-206 which gives this information. A copy of the DCO-206 may serve as documentation.) \par 3.{\ul How} {\ul the} {\ul caseworker} {\ul finally} {\ul arrived} {\ul at} {\ul the} {\ul fair} {\ul market} {\ul value} {\ul of} {\ul the} {\ul vehicle} {\ul which} {\ul is} {\ul the} {\ul subject} {\ul of} {\ul the} {\ul dispute}. Include all contacts made by the caseworker or information obtained by the caseworker as well as any information provided by the household. \par \par NOTE:When a newspaper ad is used to establish the fair market value of a vehicle, either a dated copy of the ad or a dated original must be attached to the case record. \par \par When a family car or a vehicle used for transportation to work has a fair market value of less than $4,650 {\ul no} {\ul resource} {\ul value} will be shown in the food stamp budget. Resource value is determined for each vehicle individually. \par \par Example:A household declares two vehicles, a 1984 Ford with a fair market value of $2,000 (used as the family car) and a 1993 Chevrolet with a fair market value of $5,000 (used for transportation to work). To determine the resource value, the $4,650 limit will be applied to each vehicle. \par \par Ford: $2,000 - $4,650 = 0 Countable Resource Value \par \par Chevrolet: $5,000 - $4,650 = $350 Countable Resource Value \par \par When a licensed vehicle is not used as the family car, for transportation to work, for education preparatory to work, or to participate in Project SUCCESS Program, count {\ul the} {\ul greater} {\ul of} the vehicle's fair market value over $4,650 {\ul or} the equity value. The equity value of a vehicle is the fair market value less encumbrances. \par \par Example:A household has an Escort GT which is not used either as the family car or for work related purposes. The current average trade-in value in the "NADA Book" is $6,050. The household owes $5,000 on this car. The current value is calculated as follows: \par \page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004821 - 4841 \'00SUBJECT: UNLICENSED VEHICLE/ \'00 \par\'00{\ul DATE: 5-1-95 \'00 RECREATIONAL VEHICLES }\'00 \par \par $6,050 - average trade-in value - $6,050 \par{\ul -5,000} - encumbrance {\ul -4,650} - limit \par $1,050 - equity value $1,400 - fair market value \par \par ${\ul 1,400} {\ul is} {\ul the} {\ul greater} {\ul of} {\ul the} {\ul two} {\ul values} and will be added to the household's other countable resources. \par \par 4830{\ul Definition of an Unlicensed Vehicle} \par \par An unlicensed vehicle is one which is {\ul not} currently licensed by a state to operate on public roads and highways. This includes expired licenses. Vehicles which bear a temporary dealer's permit are considered licensed. \par \par 4831{\ul Determining the Countable Resource Value of Unlicensed Vehicles} \par \par The resource value assigned to all unlicensed vehicles for the purpose of determining food stamp eligibility is the equity value. The equity value of a vehicle is the fair market value less encumbrances. The fair market value of unlicensed vehicles is determined in the same manner as the fair market value of licensed vehicles. See FSC 4821 above. \par \par Example:A household owns a 1968 Ford Thunderbird which is currently being restored. It is unlicensed. The household estimates that the current fair market value of the Thunderbird is $1,000. The household owes nothing on the car. $1,000 will be added to the household's other resources. \par \par 4832{\ul "Junked Vehicles"} \par \par Normally, the value of a "junked" vehicle will be the price the household anticipates it could receive if the vehicle were sold for scrap. Antique car and truck bodies may sell for more if they are in a condition to be restored. The household's statement of the value of a "junked" vehicle will be accepted unless questionable. \par \par 4840{\ul Definition of a Recreational Vehicle} \par \par A recreational vehicle is a vehicle used primarily for recreational purposes. Vehicles such as motorcycles, mopeds, campers, motor homes, three and four wheelers and golf carts are usually considered recreational vehicles. \par \par Before a vehicle is considered a recreational vehicle, the actual use of the vehicle must be determined. For example, a motorcycle used by a household member to commute to work would {\ul not} be a recreational vehicle but would be treated as a vehicle used for transportation to work. \par \par 4841{\ul Determining the Countable Resource Value of a Recreational Vehicle} \par \par If a recreational vehicle is licensed, {\ul the} {\ul greater} {\ul of} {\ul the} {\ul fair} {\ul market} {\ul value} {\ul less} {\ul $4,650} {\ul or} {\ul the} {\ul equity} {\ul value} {\ul of} {\ul the} {\ul vehicle} {\ul will} {\ul be} {\ul counted} {\ul as} {\ul a} {\ul resource}. If the recreational vehicle is unlicensed, the equity value of the vehicle will be counted as a resource. Instructions for determining fair market and equity value are contained in FSC 4821. \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004850 - 4850 \'00SUBJECT: CHART - HANDLING VEHICLES \'00 \par\'00{\ul DATE: 10-1-95 \'00 }\'00 \par \par\page VEHICLE DESK GUIDE \par{\b HANDLING VEHICLES} \par{\ul } \par 4850Vehicles To Be Considered Amount To Be Excluded Determination of Amount \par{\ul From Resources Considered Toward Resource Level } \par \par{\ul Licensed/Unlicensed Vehicles which are}: Totally Excluded -0- Resource Value \par - Used primarily for income producing \par purposes (over 50% of vehicle's use). \par \par - Annually producing income Totally Excluded -0- Resource Value \par consistent with fair market value. \par \par - Necessary for long distance travel Totally Excluded -0- Resource Value \par (other than daily commuting) \par essential to employment. \par \par - Used as the household's home. Totally Excluded -0- Resource Value \par \par - Necessary to transport a Totally Excluded -0- Resource Value \par physically disabled household \par member. \par- Necessary to carry primary source Totally Excluded -0- Resource Value \par{\ul of fuel (heating or water home use). } \par{\ul Licensed Vehicles which are}: Up to $4,650 of fair Fair market value of vehicle \par - Household's only licensed vehicle. market value. minus $4,650 limit. If the \par remainder is above -0-, add \par - Any other vehicles used to transport Up to $4,650 of fair remainder to the household's \par household members to and from: market value. other countable resources. \par \par 1) Employment; \par 2) Training or education \par preparatory to employment; or \par 3) To comply with the WORK \par{\ul Program. } \par \par Licensed vehicles not previously Not Excluded {\ul The} {\ul greater} {\ul of} the fair market \par exempted. value less $4,650 {\ul or} the equity \par value will be added to the \par{\ul household's countable resources. } \par \par Unlicensed Vehicles Not Excluded The equity value of each vehicle \par will be added to the household's \par other total countable resources. \par \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004900 - 4930 \'00SUBJECT: JOINTLY OWNED RESOURCES/ \'00 \par\'00DATE: 9-1-88 \'00 RESOURCES OF DISQUALIFIED/ \'00 \par\'00{\ul \'00 INELIGIBLE MEMBERS }\'00 \par \par 4900{\ul Special Resource Situations} \par \par 4910{\ul Jointly Owned Resources} \par \par See FSC 4601 for instructions on handling jointly owned bank accounts. Other resources owned jointly by two or more households are considered totally available to the household unless it can be demonstrated that the resource is inaccessible. A jointly owned resource is considered inaccessible if it cannot be practically subdivided, {\ul and} the household's access to the resource is dependent upon the agreement of the {\ul joint} {\ul owner} who refuses to comply. \par \par If a household only has access to a portion of a resource, only the accessible portion is counted. If a resource is totally inaccessible because the joint owner refuses to cooperate, the entire value of the resource is disregarded. \par \par NOTE:When determining accessibility to jointly owned resources, ineligible aliens and disqualified individuals residing with the household are considered household members. \par \par 4920{\ul Court Litigation/Pending Divorce} \par \par Resources owned jointly by individuals who are awaiting a decision of the court to determine ownership will not be considered when determining the resource value for either individual. \par \par When the property is awarded by the court to one or the other of the individuals, it becomes a resource to the individual who was awarded the property. \par \par 4930{\ul Resources of Disqualified Members or Ineligible Members} \par \par The total value of resources belonging to disqualified or ineligible household members will be considered totally available to the household if: \par \par .The individual is disqualified from the program for intentional program violation per FSC 1623.2; \par \par .The individual is an ineligible alien per FSC 1621 who would otherwise be considered a household member; or \par \par .The individual is disqualified for failure to comply with the SSN requirements or work registration requirements. See FSC 1623.1. \par \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004930 - 4950 \'00SUBJECT: RESOURCES OF SPONSORED ALIENS/\'00 \par\'00{\ul DATE: 10-1-91 \'00 NON-RECURRING LUMP SUM PAYMENTS}\'00 \par \par The same resource exclusions that apply to eligible household members will apply to resources claimed by ineligible aliens or disqualified persons when determining a household's total resources. \par \par Example:Work related equipment essential to the employment of an ineligible alien or disqualified person will be excluded per FSC 4440. \par \par One burial lot per ineligible alien or disqualified person will be excluded per FSC 4460. \par \par 4940{\ul Resources of Sponsored Aliens} \par \par See FSC 1621.6 for the procedures for handling the resources of sponsored aliens when a portion of the sponsor's resources has been deemed to the household. \par \par 4950{\ul Non-recurring Lump Sum Payments} \par \par Non-recurring lump sum payments are considered a resource in the month received unless otherwise excluded. Example of lump sum payments include, but are not limited to the following payments. \par \par 1.Federal and state income tax refunds, rebates, or credits. \par \par 2.Child support when received as the result of the interception of a State or Federal income tax refund. Other child support payments which cover a prior period of time will be handled as explained in FSC 5704. \par \par 3.Refunds of security deposits on rent or utilities. \par \par 4.Lump sum insurance payments {\ul such} {\ul as} {\ul but} {\ul not} {\ul limited} {\ul to} settlements for damages to a household member's property, life insurance payoffs, crop insurance payments and {\ul lump} {\ul sum} Worker's Compensation settlements. \par \par 5.Loans with the exception of deferred payment student loans. See FSC 1622.4 for instructions on handling student loans. \par \par 6.One-time payments for damages received through a court or through an out of court settlement. \par \par 7.Cash gifts, awards, or prizes when received on a one-time basis. See FSC 5709 for instructions on handling recurring payments. \par \par 8.The proceeds (net) from the sale of personal property when payment is received on a one-time basis. See FSC 5710 when payments are received in installments. \par \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004950 - 4951 \'00SUBJECT: LUMP SUM PAYMENTS \'00 \par\'00{\ul DATE: 12-1-93 \'00 }\'00 \par \par 9.Work incentive payments received upon the completion of the program; \par \par 10.Retroactive Social Security, or Railroad Retirement payments or any other retroactive benefit payment. \par \par AFDC and SSI lump sum payments will be excluded as a resource {\ul so} {\ul long} {\ul as} {\ul the} {\ul recipient} {\ul continues} {\ul to} {\ul be} {\ul eligible} {\ul for} {\ul the} {\ul benefit}. See FSC 4451 for instructions. If the recipient is no longer eligible for SSI or AFDC, the lump sum payment will be considered a resource. \par \par 11.Retroactive wages (net) paid on a one-time basis to correct a previous underpayment or to otherwise adjust wages. \par \par 12.Vacation pay (net) when received as a one-time payment after termination or layoff. \par \par 13.Severance pay (net) when received as a one-time payment. See FSC 5716 for instructions on handling severance pay received in installments. \par \par 14.Salary bonuses (net) which cannot be considered to be annual bonuses. See FSC 5502 for additional information. \par \par NOTE: Child Support for a prior period which is paid in a lump sum to catch up on payments is not considered a non-recurring lump sum. \par \par 4951{\ul Handling} \par \par Only the amount of the lump sum payment available to the household will be considered a resource. For applicant households consider the amount of the payment available as of the day of the interview. For active households, consider the amount of the payment available as of the date of change or the end of the applicable ten-day notice period. \par \par To determine this amount, consider only the net amount of the payment. For example, a client may be entitled to a $10,000 settlement from Workman's Compensation but receive a check for $7,000 after legal fees. $7,000 would be considered the amount of the lump sum payment. \par \par After the net amount of the payment has been determined, deduct any expenditures the household claims to have made with funds from the payment. For example, a household receives a $7,000 lump sum payment, and claims expenditures as follows: \par \par 1.$3,000 to a car dealer for a used car. \par \par 2.$500 to a furniture store. \par \par 3.$800 for repairs to the house. \par \par 4.$400 for clothes and shoes for the children. \par \par 5.$500 to a relative to repay a loan.\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004951 - 4952 \'00SUBJECT: LUMP SUM PAYMENTS \'00 \par\'00{\ul DATE: 9-1-88 \'00 }\'00 \par \par \par 6.$400 to a doctor to pay a previous bill incurred for one of the children. \par \par After expenditures the balance of the lump sum payment remaining is $1,400. The household would continue to be eligible if no other resources were available. \par \par When a lump sum payment is reported, the household will be given an opportunity to establish the net amount of the payment and any expenditures. For applicant households, see FSC 8500. For active households, see FSC 11422. \par \par 4952{\ul Verification} \par \par The net amount of the payment may be verified through letters or documents provided by the source of the payment. Collateral contact with the source of the payment may also be used as verification. \par \par Expenditures declared by the household will be verified if questionable. It will be sufficient to verify any declared liquid resources if the expenditures declared by the household are not questionable. \par \par Questionable expenditures may be verified through receipts furnished by the household. If the household claims it has no receipts and cannot obtain them, all expenditures including the ones determined questionable will be listed in a signed statement completed by the household. The household will then be asked to furnish proof of current bank account levels {\ul and} a listing of recent withdrawals. \par \par If the household claims the payment was never deposited in the bank and has been expended to the point that the household is eligible, request the following information: \par \par a.Verification of the lump sum payment; \par \par b.Receipts or other documentation of any questionable expenditures; and \par \par c.The household's written, signed statement of the amount remaining from the payment. \par \par Collateral statements may be requested when the household is not able to furnish any other type of verification of a lump sum payment and/or questionable expenditures. When no verification at all can be obtained by either the household or the county office, the client's statement of the amount remaining will be accepted. This statement will be accepted only when: \par \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004952 - 4960 \'00SUBJECT: EXCLUDED AND COUNTABLE \'00 \par\'00{\ul DATE: 10-1-86 \'00 RESOURCES COMBINED IN A SINGLE ACCOUNT}\'00 \par \par \par 1.Both the household and the county office have been unsuccessful in obtaining documentation of the household's questionable expenditures; and \par \par 2.Proof has been provided that the household has no accounts currently active in local banks and/or savings and loans. This proof must include statements of accounts recently closed and/or transferred. Either the household may furnish this proof, or the county may obtain the household's written consent to contact these banks by letter to request this information. If the household refuses to furnish this proof or refuses to consent to the county contacting these institutions, the application will be denied. (Active cases will be closed.) \par \par 4953{\ul Documentation} \par \par Document the amount and the source of the payment. Specify the gross and net amount if applicable. Document all expenditures claimed by the household. \par \par Document all verification obtained for the amount of the payment and any questionable expenditures claimed by the household. State why the expenditures are considered questionable. When the household is claiming difficulty in establishing the amount of questionable expenditures, document all attempts by the household and the county to obtain verification. Document how the current available amount of the payment was established. \par \par If the household refuses to cooperate in verifying questionable expenditures or the amount of the payment, document the refusal. Include the date of the refusal and the reason for the refusal if one was given. \par \par 4960{\ul Excluded and Countable Resources Combined Into One Account} \par \par Funds designated as excluded resources retain their exclusion when combined with non-excluded funds in a single bank account. The period of exclusion is determined by the reason for the exclusion. \par \par 1.{\ul Resources Excluded by Law} \par \par NOTE:Funds excluded as a resource by law and kept in an account separate from non-excluded funds retain their exclusion indefinitely. (See FSC 4450 for a list of resources excluded by law.) \par \par Excluded funds combined in one account with countable funds retain their exemption for six months from the date they are combined. After expiration of the six month period, all funds in the account are counted as a resource. If withdrawals are made prior to the end of the six-month period of exclusion, the entire account immediately becomes a countable resource. \par \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004960 - 4970 \'00SUBJECT: TRANSFER OF RESOURCES \'00 \par\'00{\ul DATE: 10-1-86 \'00 }\'00 \par \par \par 2.{\ul Resources Excluded as Income} \par \par Resources excluded as income (e.g. the income of students or self-employed individuals) which are combined in an account with non-excluded funds retain their exclusion for the entire period of proration. \par \par Example:A farmer reports a $1,000 checking account at application interview. Between the time of the interview and the date of certification, he sold some soybeans for $5,000. This money was deposited into the checking account increasing the balance to $6,000 which exceeds the allowable resource limit. However, since the money deposited from the sale of the crops is prorated income and excluded as a resource, the household's resources are determined as $1,000. \par \par Combined accounts will be verified when questionable. Acceptable verification is: \par \par a.Bank statements verifying the current amount in the combined account and indicating recent withdrawals and deposits; or \par \par b.Collateral statements verifying the amount of the excluded resource and the date deposited. \par \par Document: \par \par a.Total amount in the account; \par \par b.The amount determined to be an excluded resource; \par \par c.The amount determined to be a non-excluded resource; \par \par d.Whether the excluded resource is excluded by law or prorated income; and \par \par e.If verification was requested, why the account was considered questionable and the verification obtained. \par \par 4970{\ul Transfer of Resources} \par \par{\ul Determining if a Transfer Has Occurred} \par \par At the time of the application interview, households must be asked if {\ul any} household member (or disqualified person whose resources are considered available to the household) has transferred any resources during the 3-month period immediately preceding the date of the application interview. \par \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004970 - 4973 \'00SUBJECT: TRANSFER RESULTING IN \'00 \par\'00{\ul DATE: 10-1-86 \'00 DISQUALIFICATION }\'00 \par \par \par{\ul Households that transfer countable resources knowingly, for the purpose of qualifying or attempting to qualify for food stamp benefits during this period must be disqualified from participating in the Food Stamp Program for up to one year from the date of discovery of the transfer.} The disqualification penalty also applies to households that transfer resources after they are determined eligible for the purpose of remaining eligible. \par \par Example:A household acquires a resource after being certified, and transfers the resource to prevent the household from exceeding the resource limit. \par \par 4972{\ul Transfers Not Resulting in Disqualification} \par \par Eligibility for food stamps is not affected by the transfers listed below. \par \par .Resources which would not otherwise affect eligibility. This would include the transfer of resources that are already excluded or resources that, when added to all other non-exempt resources, would {\ul not} put the household over the resource limit. For example, if a parent who is participating in the Program transfers his home to a child but continues to live in it, no disqualification will be imposed. The home was already excluded as a resource. \par \par .Resources which are sold or traded at or near fair market value. \par \par .Resources which are transferred between members of the same food stamp household (including disqualified persons whose resources are being considered available to the household). \par \par .Resources which are transferred for reasons other than qualifying or attempting to qualify for benefits. \par \par Example:A parent places funds into an inaccessible educational trust fund. \par \par .The removal of an individual's name from a bank account by the major owner of the account. The major owner is the original owner of the funds deposited into the account. \par \par 4973{\ul Transfers Resulting in Disqualification} \par \par Households should be given a reasonable opportunity to explain the circumstances surrounding a transfer of resources. If the household can establish a valid reason for the transfer (other than the intent to qualify), the household will not be disqualified. \par \par\page {\ul } \par\'00FOOD STAMP CERTIFICATION MANUAL \'00SECTION: RESOURCES \'00 \par\'004973 - 4974 \'00SUBJECT: TRANSFER RESULTING IN \'00 \par\'00{\ul DATE: 10-1-86 \'00 DISQUALIFICATION }\'00 \par \par \par If the applicant household has transferred resources knowingly, with the intent to qualify, the application will be denied. The denial notice will state the reason for and the length of the disqualification as well as the household's right to a fair hearing. The disqualification period will begin with the month of application. \par \par If the household is certified at the time the transfer is discovered, a notice of adverse action which explains the reason for and the length of the disqualification must be sent. (This includes MR households.) The disqualification period begins with the first allotment after the expiration of the adverse action period, unless the household requests a fair hearing and continued benefits. \par \par NOTE:A disqualification penalty cannot be imposed more than once for the same transfer. \par \par 4974{\ul Periods of Disqualification} \par \par To determine the length of the disqualification period, add the value of the transferred resource to the total countable resources. From the total amount, subtract the resource limit. The remainder is used to determine the period of disqualification. \par \par The following chart will be used to determine the period of disqualification: \par \par AMOUNT IN EXCESS PERIOD OF \par {\ul OF THE RESOURCE LIMIT} {\ul DISQUALIFICATION} \par \par $ 0 - $ 249.99 1 month \par 250 - 999.99 3 months \par 1,000 - 2,999.99 6 months \par 3,000 - 4,999.99 9 months \par 5,000 - and up 12 months \par \par Example:If a one person household with $1,750 in the bank transferred ownership of the household's primary vehicle worth $5,000, only $250 of the transfer would be considered since the first $4,500 of the car's value was excluded. An additional $250 of the transferred asset was applied toward the $2,000 resource limit. \par \par $5,000 Value of Vehicle \par {\ul -4,500} Exclusion \par $ 500 Total countable vehicle value \par \par $1,750 Bank Account \par {\ul + 500} Total countable vehicle value \par $2,250 Total Resource \par {\ul -2,000} Resource limit \par $ 250 Used to determine disqualification period \par \par The period of disqualification is 3 months. \par}