Inherent in a finding of a medically not severe impairment or combination of impairments
            is the conclusion that the individual's ability to engage in SGA is not seriously
            affected. Before this conclusion can be reached, however, an evaluation of the effects
            of the impairment(s) on the person's ability to do basic work activities must be made.
         
         A determination that an impairment(s) is not severe requires a careful evaluation
            of the medical findings which describe the impairment(s) and an informed judgment
            about its (their) limiting effects on the individual's physical and mental ability(ies)
            to perform basic work activities; thus, an assessment of function is inherent in the
            medical evaluation process itself.
         
         At the second step of sequential evaluation, then, evidence is evaluated in order
            to assess the effects of the impairment(s) on ability to do basic work activities.
            If this assessment shows the individual to have the physical and mental ability(ies)
            necessary to perform such activities, no evaluation of past work (or of age, education,
            and work experience) is needed. Rather, it is reasonable to conclude, based on the
            minimal impact of the impairment(s), that the individual is capable of engaging in
            SGA.
         
         To document such a determination, it is advisable for the adjudicative team to prepare
            for the file (e.g., on a Report of Contact) a statement of findings, reasoning, and
            conclusions about the limiting effects of (or the absence of limitations due to) the
            alleged impairment(s). The rationale of denial in the formal determination as to disability
            must also include a statement regarding the individual's present functional abilities
            which supports the finding of a not severe impairment(s).