TN 30 (10-13)

SI 01140.010 Resource Verification Requirements

A. Policy for verifying resources

Verify the value of liquid and non-liquid resources as of the first moment of any month for which you must determine eligibility unless a tolerance applies or specific instructions indicate that verification is not required.

NOTE: For more information on the significance of liquid and non-liquid resources, see Determining the Liquidity/Non-liquidity of Resources, SI 01110.300.

B. Procedure for developing liquid resources

1. General rules for liquid resources

  • Verify the value of all liquid resources if alleged liquid resources total $400 or more. For more information on the liquid resource tolerance, see SI 01140.010C in this section. For instructions on how to verify financial institution (FI) accounts, see Electronic Financial Institution Verification SI 01140.206. For information on exceptions for initial claims (IC), pre-effectuation review contacts (PERC), and redeterminations (RZ), see SI 01140.010B.2. in this section.

  • Accept an allegation of cash, regardless of the amount, when an individual alleges cash as a liquid resource. Never ask to see or count cash. Verify all other non-cash liquid resources if the alleged liquid resources total $400 or more.

2. Exceptions to the general rules for liquid resources

a. When to accept the claimant’s or recipient’s allegation

Accept the allegation and do not verify the value of liquid resources for a given month if the alleged value of the total countable resources meets or exceeds the applicable resource limit for that month and the individual does not qualify for conditional benefits. For information on conditional benefits, see SI 01150.200.

b. High/low development option for verifying liquid resources

When the tolerance for verifying liquid resources does not apply, you may be able to save time and effort by using the high/low development option to verify the value of liquid resources such as stocks, bonds, mutual funds, certificates of deposit, or checking and savings accounts. For more information on the high/low development option, see SI 01140.022.

c. Allegation conflicts with existing evidence

If an allegation conflicts with existing evidence, you must resolve the discrepancy per GN 00301.040.

d. Treatment of life insurance

The verification tolerance for liquid resources does not apply to life insurances. When determining whether the total alleged value of liquid resources is $400 or less, do not include the cash surrender value (CSV) of life insurance into the calculation. To develop life insurance policies, follow instructions in SI 01130.300C. Also, for more information on how to evaluate life insurance when determining whether the liquid resource tolerance has been exceeded, see SI 01140.010F in this section.

e. Burial funds

Effective April 1, 1988, the verification resource tolerance for liquid resources is applicable to excluded burial funds, see SI 01130.410, if the individual alleges the:

  • total countable resources (liquid and non-liquid) do not equal or exceed the applicable statutory limit before application of the burial funds exclusion;

  • total of alleged burial funds and alleged countable liquid resources does not exceed $400; and

  • burial funds are in a designated bank account.

3. Interfaces

For information on how to develop SSI interfaces, follow the instructions in SI 02310.000.

C. Applying the liquid resource tolerance

The liquid resource tolerance is $400. Determine whether the $400 liquid resource tolerance is met or exceeded prior to applying any resource exclusions.

  • Consider a disabled child’s liquid resources separately from his or her parent(s) liquid resources and verify the value of all liquid resource(s) if the alleged value is $400 or more for the disabled child, or his or her parent(s). For example, during an RZ, the CR learns that a child has $150 in cash savings. His or her mother has a bank account with a balance of $300, and his or her father has a separate bank account with a balance of $200. The CR determines that he or she must request verification of account balances for the recipient and deemors because the parents’ combined liquid resources exceed $400. For additional examples of when to verify financial account balances, see SI 01140.206C.10.

  • Verify account balances and the value of all liquid resources, including excluded financial accounts, if the recipient or his or her deemor(s) alleges ownership of liquid resources with a value of $400 or more and there is at least one month of potential SSI eligibility. For additional information on applying the liquid tolerance in a deeming unit, see the examples in SI 01140.206C.10.

  • Do not use the liquid resource tolerance at the time of the pre-effectuation review contact (PERC) if the allegation at the time of the initial claim (IC) was $400 or more and such resource values were previously verified.

D. Procedures for non-liquid resources

Use the current market value (CMV) of a non-liquid resource for any month you need to determine eligibility (see exceptions in SI 01140.010D.2. in this section).

1. General rules for non-liquid resources

Use these procedures to determine the value of a non-liquid resource only if other specific instructions do not exist in Programs Operations Manual System (POMS).

  1. Develop the CMV of a resource. For more information, see What Values Apply to Resources, SI 01110.400.

  2. Develop the equity value (EV) of a resource whenever the:

    • CMV of all countable resources exceeds the applicable limit;

    • individual alleges a debt against the resource; and

    • alleged equity value could permit eligibility. For more information on how to determine the equity value of a non-liquid resource, see SI 01140.042.

  3. Develop the value of a non-liquid resource when there is evidence of shared ownership; see Sole vs. Shared Ownership SI 01110.510.

2. Exceptions to the general rules for non-liquid resources

Develop the CMV or EV of a resource for a given month except when:

  • specific instructions for developing that resource say not to;

  • the CMV of all countable resources does not exceed the applicable resource limit; or

  • the individual is ineligible because of alleged resources or ineligible for any other reason and does not qualify for conditional benefits per SI 01150.200.

E. Appeals related to a particular resource

If a claimant appeals a denial related to a particular resource, the evidence in file or on the evidence screen, must clearly establish the value of that resource even if the issue under appeal is not the value itself (e.g., when the issue under appeal is ownership).

If an allegation conflicts with existing evidence, resolve the discrepancy. For more information, see What is Evidence GN 00301.010 and Resolving Conflicts in Evidence GN 00301.040.

These requirements ensure that at each level in the appeals process, the evidence screen or file contains complete documentation of the resource in question.

F. Examples of when tolerance does or does not apply

1. Tolerance does apply

A claimant applies for SSI in July 2013 and alleges the following resources:

$200 Savings account designated for burial

$400 Non-home real property

$50 Checking account

$100 Certificate of Deposit

$300 CSV of countable life insurance

$1050 Total

$350 Liquid resources

Excludable burial funds plus countable liquid resources does not exceed $400 (treat the $300 life insurance CSV, as well as the $400 in non-home real property, as a non-liquid resource). Total countable resources do not exceed $2,000 before exclusion of the burial funds. The burial funds are in a designated bank account. The liquid resource development tolerance applies because the total amount of liquid resources (including the burial account) is below $400.00. There is no need to verify the value of liquid resources.

2. Tolerance does not apply

The claimant from example 1 calls the office the following day and changes his or her allegation after checking his or her records. The claimant’s new resource allegations are:

$400 Savings account designated for burial

$400 Non-home real property

$275 Checking account

$200 Certificate of Deposit

$300 CSV of countable life insurance

$1,575 Total

$875 Liquid resources

The liquid resource development tolerance does not apply because the total amount of liquid resources (including the burial account) is $400 or more.

3. Tolerance does not apply

Mr. and Mrs. Smith, a married couple who lives together, are both receiving SSI benefits. During an RZ, they allege the following resources:

Mr. Smith:

$35 Cash

$200 Joint checking account

$500 CSV of countable life insurance

Mrs. Smith:

$20 Cash

$100 Checking account

$250 Savings account

$1105 Total

$605 Liquid resources

The liquid resource development tolerance does not apply because the combined total amount of liquid resources is $400 or more.

G. Guidelines for photocopies

1. U.S. Government securities and obligations

It is legal to photocopy checks issued by the Federal Government, U.S. Savings Bonds, Treasury notes, and other securities and obligations of the U.S. Government only if the photocopies are:

  • in black and white, and

  • of a size, less than three-fourths or more than one and one-half in linear dimension, of each part of the item illustrated.

2. Photocopying is not legal

If equipment limitations or restrictions imposed by State or Federal law do not permit legal photocopying of a document, make a certification (i.e., place or record the data in Shared Processes) from the original document involved.

If the document appears to have been altered in some way, certify it “as is” with a notation as to the apparent alteration. For additional information, see Photocopying Process, GN 00301.280.

H. References


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0501140010
SI 01140.010 - Resource Verification Requirements - 10/24/2013
Batch run: 10/24/2013
Rev:10/24/2013