(1) If, at any time during the continuance of assistance, the recipient becomes possessed of any property or income in excess of the amount stated in the application, it shall be the duty of the recipient immediately to notify the regional director or a designated agent of the receipt or possession of such property or income.
(2) The regional director or a designated agent may, after investigation, either cancel the assistance or alter the amount of the money payment in accordance with the circumstances.
(3) Any assistance paid after the recipient has come into possession of such property or income and in excess of the recipient's need as determined by the department's standards shall be recoverable in a suit by the state as a debt due to the state.