Reconciliation and Recovery

Transcription

1 Volume 2 Reconciliation and Recovery Auditing Policy and Procedures Handbook Developed by: Program Development Division

2 AUDITING POLICY AND PROCEDURES HANDBOOK VOLUME 2 CHAPTER A Child Support Foster Care Payments Table of Contents Child Support Foster Care Payments Introduction... 2-A-1 Terms and Definitions... 2-A-2 Child Support Foster Care Process... 2-A-3 Child Support Foster Care Pass-on... 2-A-4 C/S FC Pass-on Overview... 2-A-5 FC Pass-on Spreadsheet... 2-A-6 Verify FC Pass-on Payments in C-IV... 2-A-7 Processing Pass-on Warrants... 2-A-11 Forwarding Non-Pass-on Warrants... 2-A-12 Child Support Foster Care Excess Introduction... 2-A-13 C/S FC Excess Overview... 2-A-14 FC Pass-on and Excess Spreadsheet... 2-A-15 Verifying FC C/S Excess Payments in C-IV... 2-A-16 Verifying the UAP... 2-A-18 Processing Excess Warrants... 2-A-20 Forwarding Warrants to DCSS... 2-A-21 APPHB #0002 (09/06) TABLE OF CONTENTS PAGE 1 OF 1

3 Child Support - Foster Care Payments Introduction Sometimes Child Support (C/S) money is received for Foster Care (FC) children from the absent parent(s). Depending on the type and amount of payment made, some or all of the money received may be passed on to the foster parent to meet the foster child s needs, refunded to the payor or saved for the foster child until the child leaves the system. This chapter addresses how to determine the correct status of a C/S FC payment received, how to process it and how to distribute correctly. Included in this chapter are Refer to the table below for specific contents: Topic Terms and Definitions Child Support Foster Care Process Child Support Foster Care Pass-on Child Support Foster Care Excess See Page 2-A-2 2-A-3 2-A-4 2-A-13 APPHB #0002 (09/06) CHILD SUPPORT FOSTER CARE PAYMENTS 2-A-1

4 Terms and Definitions Terms and definitions This is a list of Child Support Foster Care terms and definitions: California Department of Child Support Services (CDCSS): The state entity responsible for the administration of Child Support Services. Child Support (C/S): Cash assistance obligated by the absent parent(s) to be paid for the care of a child. Child Support Current: The amount of CS paid to meet current F/C obligations. Child Support Disregard: A portion of the child support, which is a maximum of $50 or less, sent to the custodial parent Disregards are not issued on FC cases. Child Support Foster Care Excess: C/S received that exceeds the total UAP. Child Support Foster Care Unassigned Arrears: C/S received for a month that doesn t exist in C-IV. Child Support Foster Care Assigned Arrears: C/S received for a month that does exist in C-IV. Child Support Foster Care Pass-on: C/S received for FC (Category 42 only) that meets the current obligation and exceeds the current grant amount. Department of Child Support Services (DCSS): The San Bernardino County department responsible for the management child support services. Foster Care (FC): A public assistance program that provides financial assistance for those children who are in need of substitute parenting and have been placed in out-of-home care. State Disbursement Unit (SDU): The CDCSS unit responsible for the collection and disbursement of child support in California. Unreimbursed Assistance Pool (UAP): The total amount of all FC paid for the care of a foster child. APPHB #0002 (09/06) CHILD SUPPORT FOSTER CARE PAYMENTS 2-A-2

5 Child Support Foster Care Process Overview The California Department of Child Support Services (CDCSS) collects Child Support (C/S) from absent parents whose children are in the Foster Care (FC) system. Once the C/S is collected the money is sent to the San Bernardino County for disbursement. Child support process The child support process is described below: Step Action 1 The State Disbursement Unit (SDU) forwards all C/S FC money by warrants to San Bernardino County. The warrants are paid to the order of the Department of Social Services and mailed to the Department of Child Support Services (DCSS). 2 DCSS identifies and disburses the warrants. When warrants are identified C/S excess or C/S pass-on, they are sent to HS Auditing for processing. 3 HS Auditing then determines the correct status of the funds collected and credits and deposits them accordingly. Any current pass-on and excess child support received must be forwarded to the FC provider who had the child in the month that the pass-on or excess child support was received for. APPHB #0002 (09/06) CHILD SUPPORT FOSTER CARE PAYMENTS 2-A-3

6 Child Support Foster Care Pass-on Introduction When C/S FC warrants are determined to be pass-on payments, they are forwarded by DCSS to HS Auditing for processing. The procedures for processing C/S FC pass-on funds are addressed in this section. In this section Included in this section are: Topic C/S FC Pass-on Overview FC Pass-on Spreadsheet Verify C/S FC Pass-on Payments in C-IV Processing Pass-on Warrants Forwarding Non-Pass-on Warrants See Page 2-A-5 2-A-6 2-A-7 2-A-11 2-A-12 APPHB #0002 (09/06) CHILD SUPPORT FOSTER CARE PAYMENTS 2-A-4

7 C/S FC Pass-on Overview Overview In order for warrants to be considered C/S FC pass-on funds, the following must occur: 1. The FC case must be a federal - Cat 42 case. (Cat 40 state-only cases do not allow pass-ons). And, 2. The current child support obligation must be met and must exceed the current grant amount in order for a Pass-on to exist. The difference between the current C/S obligation that has been paid and the current grant amount paid is the amount of the Pass-on. In order to verify that the warrant(s) are actual Pass-on funds, the FC payments must be researched on C-IV. FC warrants FC warrants received from CDCSS are 8 ½ by 11 inch forms with the CDCSS letterhead, addressee information, a printed warrant at the bottom of the form and the following identifiers in the center of the form: FC case number Check date Check amount Payor name Receipt date A memo entry identifying what the payment is for (such as pass-on). C/S pass-on process When FC warrants are received, the Fiscal Assistant (FA) will follow the process described below: Stage Description 1 Log in all warrants on the FC Pass-on Spreadsheet. 2 Sort the spreadsheet by case number. 3 Research each case on C-IV to determine if it is an actual passon. 4 Forward all warrants that are not current pass-ons to DCSS in Loma Linda. They will determine how to disburse the funds. 5 Forward all current pass-on warrants to the Supervising Fiscal Specialist, for processing and to issue a new warrant to the FC provider. APPHB #0002 (09/06) CHILD SUPPORT FOSTER CARE PAYMENTS 2-A-5

8 FC Pass-on Spreadsheet FC pass-on spreadsheet When warrants are received from CDCSS, they are logged in on an Excel spread sheet called the FC Pass-on Spreadsheet (see example below). The log collects the following information: FC case number Warrant issue date Type of warrant (Pass-on, etc.) Warrant # Amount of Warrant Comments (including research notes) It is not unusual to receive several warrants for the same month and for very small or unusual amounts. APPHB #0002 (09/06) CHILD SUPPORT FOSTER CARE PAYMENTS 2-A-6

9 Verify FC Pass-on Payments in C-IV Overview C/S FC payments received must be researched in C-IV to verify that they are actual FC Pass-on payments, what month(s) are affected and the amount(s). Research FC pass-on payments in C-IV The FA can research in C-IV the C/S issued by following the steps below: Step 1 From the C-IV Homepage - Action Click on the Fiscal tab on the Global Navigation bar, then Collections on the Local Navigation bar. 2 The Recovery Account Search page appears. Select Case from the drop-down box and click the Go button. 3 The page refreshes with a text box for Case Number. Enter the Case Number and click the Search button on the right hand side of the page. 4 The Recovery Account Search page appears. 1. Verify the Cause Code is Child Support and the Program Type is Foster Care. 2. Scroll down to the Child Support account and click on the recovery account number hyperlink. Continued on next page APPHB #0002 (09/06) CHILD SUPPORT FOSTER CARE PAYMENTS 2-A-7

10 Verify FC Pass-on Payments in C-IV, Continued Verifying pass-on payments in C-IV (continued) Step Action 5 The Child Support Detail page appears. Click on the Transaction Summary tab on the Task Navigation bar. Continued on next page APPHB #0002 (09/06) CHILD SUPPORT FOSTER CARE PAYMENTS 2-A-8

11 Verify FC Pass-on Payments in C-IV, Continued Verifying pass-on payments in C-IV (continued) Step Action 6 The Transaction Summary page appears. The following are listed on this page: Transaction (Child Support) Amounts and Effective Months Verify that the Effective Month on the warrant (or spreadsheet) is the same as on the Transaction Summary page. If there is no current C/S for the benefit month, follow the steps in the Forwarding Checks to DCSS. Continued on next page APPHB #0002 (09/06) CHILD SUPPORT FOSTER CARE PAYMENTS 2-A-9

12 Verify FC Pass-on Payments in C-IV, Continued Verifying pass-on payments in C-IV (continued) Step Action 7 Check to see if the Transaction amount (the warrant issued for that month or the sum of all warrants for that month) is greater than the current child support. If the sum of all warrants Then for that month Is greater than the current child support A C/S pass-on check can be issued. Is less than the current child support Follow the steps in the Processing C/S Pass-on Warrants. A C/S pass-on check cannot be issued. Follow the steps in the Forwarding Checks to DCSS. Transaction types Several transaction types can appear on the Transaction Summary page. The two that are referenced when researching a case for income received are: C/S Current C/S Disregard Other transactions listed are old converted transactions posted for the months prior to C-IV history. These amounts are posted to be recouped against the UAP. These transaction types are: Transfer Unassigned arrears Assigned arrears Back Out Continued on next page APPHB #0002 (09/06) CHILD SUPPORT FOSTER CARE PAYMENTS 2-A-10

13 Processing Pass-on Warrants Overview When a C/S warrant is determined to be an actual pass-on, the warrant must be deposited into the bank and then the money must be reissued to the payee. Processing C/S pass-on warrants To process the C/S pass-on warrant, follow the steps below: Step Who Action 1 FA Forwards the current pass-on warrant and a copy of the FC Pass-on Spreadsheet with the warrant entry highlighted to the Supervising Fiscal Specialist (SFS) for processing 2 SFS Deposits the warrant into the CS F/C Bank of America account Forwards the FC Pass-on Spreadsheet to the SFS assigned to warrant issuance 3 SFS Issues a new C/S pass-on warrant to the FC provider or FC payee APPHB #0002 (09/06) CHILD SUPPORT FOSTER CARE PAYMENTS 2-A-11

14 Forwarding Non-Pass-on Warrants Overview When C/S Pass-on warrants are determined not to be actual C/S FC passons, the warrant(s) must be forwarded to the Department of Child Support Services (DCSS) in Loma Linda. Forwarding checks to DCSS To forward warrants that are not actual C/S FC pass-on monies to DCSS, follow the steps below: Step Action 1 Complete the TAD 134 Transmittal form, but instead of listing each warrant, write across the page see attached FC Passon Spreadsheet. Request that the white copy of the TAD 134 be returned to Auditing 2 Attach a copy of the FC Pass-on Spreadsheet. 3 Bundle with the warrants. 4 Forward the bundle to DCSS Loma Linda. APPHB #0002 (09/06) CHILD SUPPORT FOSTER CARE PAYMENTS 2-A-12

15 Child Support Foster Care Excess Introduction When C/S FC warrants are determined to be excess payments, they are forwarded by DCSS to HS Auditing for processing. C/S Excess payments are arrears C/S payments made in excess of the Unreimbursed Assistance Pool (UAP). The UAP is the total of all FC funds paid for the care of a FC child. If the absent parent(s) pay more C/S than the total UAP, any funds paid in excess of the UAP will be refunded to the payer (or can be given to the Payee on the FC case). Note: An Excess only exists when the UAP is negative. The procedures for processing C/S FC excess funds are addressed in this section. In this section Included in this section are: Topic C/S FC Excess Overview FC Pass-on and Excess Spreadsheet Verifying C/S FC Excess Payments in C-IV Verifying the UAP Processing Excess Warrants Forwarding Warrants to DCSS See Page 2-A-14 2-A-15 2-A-16 2-A-18 2-A-20 2-A-21 APPHB #0002 (09/06) CHILD SUPPORT FOSTER CARE PAYMENTS 2-A-13

16 C/S FC Excess Overview Overview Although C/S warrants are identified as excess C/S, in most cases they are not really excess C/S. When potential Excess C/S warrants are received, the Fiscal Assistant (FA) will follow the process described in this section to determine the actual warrant status and take appropriate action. C/S excess process The C/S excess process is described below: Stage Description 1 Log in all warrants on the FC Pass-on Spreadsheet. 2 Sort the spreadsheet by case number. 3 Forward all warrants that are not current C/S payments to DCSS in Loma Linda. They will determine how to disburse the funds. 4 Research each case on C-IV to determine if it is an actual C/S pass-on or C/S excess. 5 Forward all potential C/S excess warrants to the Supervising Fiscal Specialist (SFS), for processing and to issue a new warrant to the absent parent or FC Payee. APPHB #0002 (09/06) CHILD SUPPORT FOSTER CARE PAYMENTS 2-A-14

17 FC Pass-on and Excess Spreadsheet FC pass-on and excess spreadsheet When FC warrants are received from CDCSS, they are logged in on an Excel spreadsheet call the FC Pass-on Spreadsheet. The log collects the following information: FC case number Warrant issue date Type of warrant (C/S Excess, Pass-on, etc.) Warrant # Amount of Warrant Comments (including research notes) It is not unusual to receive several warrants for the same month and for very small or unusual amounts. For an example of the spreadsheet, refer to the Child Support Foster Care Pass-on instructions, FC Pass-on Spreadsheet section. APPHB #0002 (09/06) CHILD SUPPORT FOSTER CARE PAYMENTS 2-A-15

18 Verifying FC C/S Excess Payments in C-IV Overview C/S FC payments received must be researched in C-IV to verify that they are actual FC excess payments, what month(s) are effected and the amount(s). Verifying FC C/S payments in C-IV The FA will research C-IV to verify the C/S issued by following the steps below: These instructions are the same as the ones available in the Child Support Foster Care Pass-on instructions which also contain C-IV screen print examples. Step 1 From the C-IV Homepage Action Click on the Fiscal tab on the Global Navigation bar, then Collections on the Local Navigation bar 2 The Recovery Account Search page appears. Select Case from the drop-down box and click the Go button. 3 The page refreshes with a text box for Case Number. Enter the Case Number and click the Search button on the right hand-side of the page. 4 The Recovery Account Search page appears. 1. Verify the Cause Code is Child Support and the Program Type is Foster Care 2. Scroll down to the Child Support account and click on the Recovery Account Number hyperlink. 5 The Child Support Detail page appears. Click on the Transaction Summary tab on the Task Navigation bar. Continued on next page APPHB #0002 (09/06) CHILD SUPPORT FOSTER CARE PAYMENTS 2-A-16

19 Verifying FC C/S Excess Payments in C-IV, Continued Verifying FC C/S payments in C-IV (continued) Step Action 6 The Transaction Summary page appears. The following are listed on this page: Transaction (Child Support) Amounts and Effective Months Verify that the Effective Month on the warrant (or spreadsheet) is the same as on the Transaction Summary page. If There is no current C/S for the benefit month There is current C/S for the benefit month and it is identified as excess Then A C/S excess warrant cannot be issued. Follow the steps in the Forwarding Warrants to DCSS Proceed to the next section below: Verify the UAP APPHB #0002 (09/06) CHILD SUPPORT FOSTER CARE PAYMENTS 2-A-17

20 Verifying the UAP Overview The Unreimbursed Assistance Pool (UAP) is the total amount of all FC paid for the care of a foster child. The UAP must be reviewed to determine the actual excess C/S paid. To do this, the FA must review the Issuance History in C-IV. Verifying the UAP in issuance history To verify the UAP and determine if there is an actual excess, the FA will research the Issuance History. Step Action 1 To check the Issuance History, click the: Case Info tab on the Global Navigation bar. Then, Case Summary tab on the Local Navigation bar. Then, Issuance History tab on the Task Navigation bar. 2 The Issuance History page appears. Click on Process UAP Continued on next page APPHB #0002 (09/06) CHILD SUPPORT FOSTER CARE PAYMENTS 2-A-18

21 Verifying the UAP, Continued Verifying the UAP in issuance history, (continued) Step Action 3 The Un-Reimbursed Assistance Pool Detail page appears. Check the Current UAP. If the Current UAP Is a negative number Then A C/S excess warrant cannot be issued. Follow the steps in the Forwarding Checks to DCSS Proceed to the next section below: Is a positive Verify the UAP in Issuance History A C/S Excess warrant can be issued. Follow the steps in the Processing C/S Pass-on Warrants APPHB #0002 (09/06) CHILD SUPPORT FOSTER CARE PAYMENTS 2-A-19

22 Processing Excess Warrants Overview When a C/S warrant is determined to be an excess warrant, the warrant must be deposited into the bank and then the money must be reissued to the absent parent or FC Payee. Processing C/S FC excess warrants To process the C/S excess warrant, follow the steps below: Step Who Action 1 FA Forwards the current excess warrant and a copy of the FC Pass-on Spreadsheet with the warrant entry highlighted to the Supervising Fiscal Specialist (SFS) for processing 2 SFS Deposits the warrant into the CS F/C Bank of America account Forwards the FC Pass-on Spreadsheet to the SFS assigned to warrant issuance 3 SFS Issues a new C/S excess warrant to the absent parent or FC payee APPHB #0002 (09/06) CHILD SUPPORT FOSTER CARE PAYMENTS 2-A-20

23 Forwarding Warrants to DCSS Overview When C/S excess warrants are determined not to be actual C/S excess, the warrant(s) must be forwarded to the Department of Child Support Services (DCSS) in Loma Linda. Forwarding checks to DCSS To forward warrants that are not actual C/S excess monies to DCSS, follow the steps below: Step Action 1 Complete the TAD 134 Transmittal form, but instead of listing each warrant, write across the page see attached FC Passon Spreadsheet. Request that the white copy of the TAD 134 be returned to Auditing 2 Attach a copy of the FC Pass-on Spreadsheet. 3 Bundle with the warrants. 4 Forward the bundle to DCSS Loma Linda. APPHB #0002 (09/06) CHILD SUPPORT FOSTER CARE PAYMENTS 2-A-21

24 AUDITING POLICY AND PROCEDURES HANDBOOK VOLUME 2 CHAPTER D Tax Intercepts Table of Contents Federal Tax Information (FTI) Security Requirements... 2-D-1 ` APPHB #0015 (10/13) TABLE OF CONTENTS PAGE 1 OF 1

25 Federal Tax Information (FTI) Security Requirements Overview IRS law requires agencies using confidential State and Federal Tax Information (FTI) to protect tax records and prevent unauthorized release of taxpayer confidential information to unauthorized individuals. The following requirements must be adhered to when handling IRS and Franchise Tax Board (FTB) income tax records received through the Welfare Intercept System (WIS): Provide physical security of Federal Tax Information (FTI) records by setting up prescribed security conditions to safeguard the records. Train and provide civil and criminal penalties to employees who handle FTI. Submit annual reports to the California Department of Social Services (CDSS) concerning the security audits and employee trainings. Failure to comply Failure to adhere to IRS Publication 1075 security guidelines can lead to: Termination of access to FTI for the County. Loss of some state incentive payments for tax intercepted overpayments and overissuances to the County. Felony punishment by a fine of up to $5,000, or imprisonment up to five years, or both, including the cost of prosecution for the County and/or employees found guilty. Continued on next page APPHB #0015 (10/13) TAX INTERCEPTS 2-D-1

26 Federal Tax Information (FTI) Security Requirements, Continued FTI records process The IRS and California s FTB share confidential State and FTI with Counties to help identify and collect overpayments and overissuances incurred by cash aid and CalFresh customers. The chart below explains the current process: Stage Description 1 The Program Integrity Division (PID) Quality Review Specialist (QRS): Uses Income Eligibility Verification System (IEVS) Asset Match reports to identify Food Stamp overissuances (OI) and cash overpayments (OP). Sets up collections accounts and notifies customers. 2 The Customer: Fails to make required payments on the OI and/or OP, and The debt becomes in arrears more than 90 days. 3 C-IV forwards the customer s OI/OP debt information to the Welfare Intercept System (WIS) for the tax intercept program. 4 IRS or FTB: Intercepts OI or OP monies from customers income tax refunds. Reports the intercepted taxes to WIS. 5 Welfare Intercept System (WIS) provides a list of the intercepted taxes to Human Services (HS) Auditing s Collections staff, on a weekly basis. 6 HS Auditing Collections staff: Completes a receipt for each of the intercepted tax refund monies received, which automatically, Updates the customers collection accounts in C-IV. Handles customer inquiries and problems. 7 WIS forwards to the County electronic fund deposits for the intercepted monies collected, to Auditor-Controller/Treasurer/Tax Collector (ATC) office who then notifies HS Auditing. 8 HS Auditing Collections staff: Enters correct FAS Codes for each intercepted tax refund on the Auditor s Deposits lists so that ATC can credit the appropriate trust accounts. Forwards the Auditor s Deposits lists to the ATC. 9 HS Auditing Collections staff completes reports and forwards them to the State advising how much OI and OP monies are intercepted each month. 10 CDSS credits the County with incentive payments for the intercepted funds. Continued on next page APPHB #0015 (10/13) TAX INTERCEPTS 2-D-2

27 Federal Tax Information (FTI) Security Requirements, Continued FTI actions The table below explains the actions that are required by Auditing and PID to comply with FTI requirements: FTI Requirement Safeguard Procedures Report Employee Training Contractor / Sub-contractor Training County Certification Letter Audit Inspection of Secure Facilities Annual County Internal Inspection and Safeguard Activity Report Action Auditing Designee: Completes Human Services (HS) Auditing sections. Forwards to PID s QRS unit; attention: Debbie Irawan. PID Designee: Completes their section. Combines all information, and Submits report by deadline each year. Auditing Designee: Provides to all employees: FTI Training using the PowerPoint training DVD furnished by the State, and Copies of Exhibits 5 and 7. Ensures all employees sign the Training Attendance Sheet. Auditing Designee: Provides to the contractors and sub-contractors: A review of the FTI penalties, and Copies of Exhibits 3 and 4. Ensures the contractor and sub-contractors sign the Sub-Contractor Certification Letter. Auditing Designee: Completes the County Certification Letter. Sends with all original signed copies of the Sub- Contractor Certification Letter with the County Certification Letter to the CDSS Fraud Bureau. Maintains records for three years. Auditing Designee completes annual County Internal Inspection. Auditing Designee: Completes Part A of the form, and Forwards to PID s QRS unit; attention: Debbie Irawan. PID Designee: Completes Part B. Combines all information, and Sends to DCSS Fraud Bureau. Note: Annual due dates are provided by the FTB. Physical security of FTI records FTI must be kept in a centralized location under IRS Minimum Protection Standards (IRC 6103) (p) (4) (B) within a two barrier environment at all times. The two barriers may consists of FTI stored in a locked cabinet within a locked room, a locked room within a locked room or a bar lock on a locked cabinet. Continued on next page APPHB #0015 (10/13) TAX INTERCEPTS 2-D-3

28 Federal Tax Information (FTI) Security Requirements, Continued Internal inspection and report Annually HS Auditing is expected to: Perform an internal inspection to ensure that adequate safeguards or security measures have been maintained in its handling of IRS and FTB documents received through Welfare Intercept System (WIS). Complete Part A of the County Internal Inspection Report form, Combine it with PID s Part B, and Submit it to the state by September 1 st of each year. Training Per IRS Publication 1075, Safeguard training must be provided to all staff who handles FTI, annually. This includes all HS Auditing staff members, as well as any contractors/sub-contractors who may handle these documents. Staff to Be Trained Training Training Material HS Auditing Collections staff and other HS Auditing or County employees who have access to the WIS documents IRS Safeguard Training (see PowerPoint presentation) Provide a copy of Exhibits 5 and 7 from IRS Publication 1075 (which explain the civil and criminal penalties for unauthorized access or disclosure of FTI). Have employees sign the Training Attendance Sheet. Trainer must complete the Contractor and sub-contractor who might encounter FTI, such as janitors, repairmen, etc. Inform contractors of the civil and criminal penalties of unauthorized access or disclosure of FTI County Certification Letter. Provide a copy of Exhibits 5 and 7 from IRS Publication 1075 (which contains contract language for services and civil and criminal penalties). Have contractors sign the Sub-Contractor Certification Letter. Training certification It is the trainer s responsibility to ensure all employees certify that they received, read and understood the security requirements and the penalties for mishandling IRS/FTB records. Certification Document Training Attendance Sheet Sub-Contractor Certification Letter County Certification Letter Signed By HS Auditing Employees trained Contractors trained Trainer acknowledging that the employees have received the required annual training. Continued on next page APPHB #0015 (10/13) TAX INTERCEPTS 2-D-4

29 Federal Tax Information (FTI) Security Requirements, Continued Submission and maintenance of certification letters The trainer forwards the certification documents to the PID Designee, who is responsible for document maintenance as described below: Step Action 1 Makes copies of all letters. 2 Files them with the completed Training Attendance Sheet. 3 Sends original County Certification Letter and Sub-contractor Certification Letter(s) to CDSS by September 1 st of each year. 4 Maintains copies of the County Certification Letter and Sub- Contractor Certification Letter(s) in a file for three years for IRS and /or CDSS audit purposes. FTI reports The following reports must be completed individually by both HS Auditing staff and PID QRS staff, and upon receipt, PID will combine the information and forward to CDSS: Certification Document Safeguard Procedures Report Annual County Internal Inspection and Safeguard Activity Report Action HS Auditing Designee will: Complete HS Auditing sections. Forward to PID s QRS unit. PID QRS Designee will: Complete their sections. Submit the completed report by September 1 st of each year. HS Auditing Designee will: Perform the internal inspection. Complete Part A of the report. Forward to PID s QRS unit, attention Debbie Irawan. PID Income Eligibility Verification System (IEVS) Designee will: Complete Part B and combine all information. Submit the completed report by September 1 st of each year. Where to send the reports Once the Safeguard Procedures Report and Annual County Internal Inspection and Safeguard Activity Report are completed, they are mailed to the following address: CDSS Fraud Bureau 744 P Street, MS Attn: IRS Coordinator Sacramento, CA Continued on next page APPHB #0015 (10/13) TAX INTERCEPTS 2-D-5

30 Federal Tax Information (FTI) Security Requirements, Continued Where to find additional information Refer to CDSS All County Information Notices (ACINs) and or IRS Publication 1075 Tax Information Security Guidelines for Federal, State and Local Agencies and Entities for additional information. All publications can be found either online at either: CDSS: or IRS: APPHB #0015 (10/13) TAX INTERCEPTS 2-D-6

31 RESERVED FOR FUTURE USE

32 AUDITING POLICY AND PROCEDURES HANDBOOK VOLUME 2 CHAPTER H Non-Sufficient Funds (NSF) Table of Contents Non-Sufficient Funds (NSF) Introduction...2-H-1 Terms and Definitions...2-H-2 Non-Sufficient Funds (NSF) Check Process...2-H-3 NSF Checks Locating the Original Receipted Account...2-H-5 FARRS Transfer Memo Request...2-H-8 Voiding the NSF Check Manual System (FARRS)...2-H-10 Voiding the NSF Check C-IV...2-H-12 Setting Up the Collection Fee in C-IV...2-H-15 Voiding the Original Payment Receipt... 2-A-18 Notifying the Payor...2-H-19 NSF Check Log...2-H-22 Processing Repayments and Fees...2-H-23 Repayment and Fee Procedures...2-H-24 Receipting NSF Replacements and Fees - FARRS...2-H-25 Receipting NSF Replacements and Fees - C-IV...2-H-30 FAS Codes... 2-H-33 APPHB #0003 (05/07) TABLE OF CONTENTS PAGE 1 OF 1

33 Non-Sufficient Funds (NSF) Introduction Introduction This chapter provides instructions for the recovery of losses due to bad checks. It includes procedures for processing non-sufficient fund (NSF) checks and tracking them manually in the Fees and Reimbursement Receipting System (FARRS) or through the automated C-IV system. Included in this chapter are Refer to the table below for specific contents: Topic Terms and Definitions Non-Sufficient Funds (NSF) Check Process NSF Checks Locating the Original Receipted Account FARRS Transfer Memo Request Voiding the NSF Checks Manual System (FARRS) Voiding the NSF Checks C-IV Setting Up the Collection Fee in C-IV Voiding the Original Payment Receipt Notifying the Payor NSF Check Log Processing Repayments and Fees FAS Codes See Page 2-H-2 2-H-3 2-H-5 2-H-8 2-H-10 2-H-12 2-H-15 2-H-18 2-H-19 2-H-22 2-H-23 2-H-33 APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-1

34 Terms and Definitions Terms and definitions This is a list of Non-Sufficient Funds terms and definitions: Auditor s Deposit Book: Ledger in HS Auditing that tracks all receipts issued as well as all deposits made to the Bank of America accounts. Auditor/Controller-Recorder (ACR): The SB County department responsible for the county s financial accounts. Consortium-IV (C-IV): The Statewide Automated Welfare System (SAWS) that San Bernardino County participates in. Fees and Reimbursement Receipting System (FARRS): Is the system used by Auditing to receipt incoming payments that cannot be receipted to C-IV, such as - cases not set up on C-IV, personal telephone bills, etc. Financial Accounting System (FAS): The accounting system used by S.B. County. Non-Sufficient Funds (NSF): A check rejected by the bank because there is not enough money in the account to cover the check. NSF Check Log: Folder containing a list of all NSF checks and copies of the paperwork. APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-2

35 Non-Sufficient Funds (NSF) Check Process Overview Checks received by HS Auditing are receipted to the payor, credited to the appropriate recovery account, identified by the correct FAS Code and deposited in the corresponding Bank of America account. Occasionally the payor s bank bounces a check for non-sufficient funds (NSF). The Fiscal Assistant (FA), assigned to the Auditor s Deposit Desk, is responsible to taking action on these checks on a daily basis. This section discusses the process to be followed to demand repayment and make corrections to the accounts. NSF process When there are insufficient funds in the payor s checking account to cover a check written to SB County and deposited by HS Auditing, the payor s bank bounces the check back to the Auditor/Controller-Recorder (ACR). The ACR then advises HS Auditing. When an inter-office memo with the original NSF check attached is received from the ACR, the FA must take action on the NSF checks. The NSF process is described below: Step 1 Who FA Action Goes into the manual Fees and Reimbursement Receipting System (FARRS) system and checks to see if the returned check was receipted on FARRS. Note: HS Auditing can only write FARRS receipts. If the check was Then Receipted in FARRS Prepares a transfer memo to the Fiscal Specialist (FS) to request that the money be deleted from the FAS account it was credited to. Not receipted in FARRS The check was receipted in C-IV. See Step 3. 2 FS If in the FARRS system, upon receipt of the transfer memo request, follows the instructions to void the NSF check in FARRS. 3 FA If receipted in C-IV, follows instructions for: Voiding the NSF in C-IV. Setting up the $10 NSF collection fee in C-IV 4 FA Voids the original receipt in the Auditor s Receipt Book. 5 FA Notifies the payor by sending a letter or requesting repayment and advising the customer of the $10 fee. Continued on next page APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-3

36 Non-Sufficient Funds (NSF) Check Process, Continued NSF process (continued) Step Who Action 6 FA In the NSF Check Log: Enters the NSF information on the NSF Tracking log. Files the NSF paperwork. 7 FA When received, processes the repayment and the $10 NSF fees. APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-4

37 NSF Checks Locating the Original Receipted Account Overview To ensure that all payments balance, the original NSF check payment must be transferred out of the account it was credited to and into a receivable account. Also the collection fee must be set up as a receivable. The FA must first determine which system, FARRS or C-IV, the payment was originally receipted in. This section describes the procedures for identifying the account. Identifying the account To identify the account, the FA looks for a case or account number written on the returned check. If there is Action An account number Searches FARRS to locate the payor. If found in FARRS, completes a FARRS Transfer Memo request. If not found in FARRS, searches C-IV for the receipt. Takes action to void the payment. Refer to Voiding the NSF Check instructions on pages 2-H-10 (C-IV) and 2-H-12 (FARRS) A case number Searches C-IV to locate the receipt. Takes action to void the payment. Refer to Voiding the NSF Check instructions on pages 2-H-10 (C-IV) and 2-H-12 (FARRS) No Identifiers Completes a name search in FARRS. If found in FARRS, completes a FARRS Transfer Memo request. If not found in FARRS, searches C-IV for the receipt. Takes action to void the payment. Refer to Voiding the NSF Check instructions on pages 2-H-10 (C-IV) and 2-H-12 (FARRS) Continued on next page APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-5

38 NSF Checks Locating the Original Receipted Account, Continued Locating the payor in FARRS The FA will follow the steps below to locate the payor in FARRS. Specific instructions for accessing FARRS are available in the Appendix. Step Action 1 When FARRS is opened, Click on the Search Receipts icon. The Receipt Search screen opens. 2 Type in the First and Last Name. Click on Search. The Search Results will appear. 3 If the payor has been receipted in the system, the name will appear in the results. If the desired payor and receipt are listed, click on the Receipt Number for the desired payment information. The Receipt Update screen appears. Continued on next page APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-6

39 NSF Checks Locating the Original Receipted Account, Continued Locating the payor in C-IV The FA will follow the steps below to locate the payor in C-IV. Specific instructions for accessing C-IV are available in the Appendix. Step Action Result 1 Click on the Case Info tab on the Global Navigation bar. The Person Search page appears. 2 Enter all known information about the payor: Last name, First name, SSN, and Gender into the text boxes. Click on the Search button. The Person Search Results page appears. 3 Click on the customer s name hyperlink. The Case Summary page for the payor appears. APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-7

40 FARRS Transfer Memo Request Overview If the check was originally receipted in FARRS, to transfer the NSF funds, the FA completes a memo and forwards it to the Fiscal Specialist (FS) responsible for (Financial Accounting System) FAS reconciliations. Instructions for transferring money in FAS are available in - Volume 1, Chapter B: FAS/Claim Reconciliation. This section provides FA procedures for preparing a transfer memo. Preparing a transfer memo To request that the NSF check amount be transferred into another fund account, the FA will: Step Action 1 Complete a memo to transfer the NSF payment. Address the memo to the FS. For the Subject field, type Transfer NSF Funds, The payor s name, and The case number, if there is one. Refer to Request for Transfer of NSF Funds example below. Please Transfer the following: In the From field, type in the appropriate FAS code to transfer the funds from. In the To field, type in the appropriate FAS code to transfer the funds to. Refer to the FAS Codes section in this chapter. 2 Forward the memo to the FS. Continued on next page APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-8

41 FARRS Transfer Memo Request, Continued Transfer of NSF funds request The Request for Transfer of NSF Funds below is an example of how to request that funds to be transferred when a check is returned for NSF. To use, copy the appropriate information on a DPSS 19 form or in an from the example below: Request for Transfer of NSF Funds From: To: Subject: Francisca Linda Transfer NSF Funds Michelle Glenn Please transfer the following: From: VHF DPA DPA 9990 $ AAA DPA AU 9610 $12.00 To: NSF Fees AAA DPA DPA DPSS 19 APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-9

42 Voiding the NSF Check Manual System (FARRS) Overview When a payment was originally receipted in FARRS, the FA sends an requesting that the Fiscal Specialist (FS) void the payment. This section contains procedures for the FS to follow to void an NSF check. Voiding an NSF check in FARRS When the NSF check was receipted in FARRS, the FS will follow the steps below to void the returned check In the FARRS system: Step Action 1 When the Fees and Reimbursement Receipting System is opened, Click on the Search Receipts icon. The Receipt Search screen opens. 2 Enter the following information: First and Last Name, Receipt Number, and Receipt Date. Click on Search. The Search Results will appear. Continued on next page APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-10

43 Voiding the NSF Check Manual System (FARRS), Continued Voiding an NSF check in FARRS (continued) Step Action 3 Double click on the Receipt Number for the desired payment information. Receipt Data field opens and the Requested Receipt appears. 4 To Void the payment: Click on the drop down box on the Payment Type field. Click on Void. Click on the drop down box on VOID reason. Click on Bounced Check. Click on the SAVE icon. Click on Enter. The returned check is voided. APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-11

44 Voiding the NSF Check C-IV Overview When a payment was originally receipted in C-IV, the NSF check must be voided in C-IV. This section contains instructions for the FA to follow to void the NSF check in C-IV. Voiding an NSF check in C-IV To void the returned check in the C-IV system, the FA will follow the steps below: Step Action Result 1 Click on the Fiscal tab on the Global Navigation bar. The Issuance Search page appears. 2 Click on the Collections tab on the Local Navigation bar. The Recovery Account Search page appears. 3 Select Recovery Account or Case Number from the Search By drop down box. Enter the Recovery Account or Case Number. Click on the Search button. The Recovery Account Search page appears. Continued on next page APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-12

45 Voiding the NSF Check C-IV, Continued Voiding an NSF check in C-IV (continued) Step Action Result 4 Select the Recovery Account. The Recovery Account Detail page appears. Apple Pye Apple Pye Apple Pye 5 Click on the Transaction Summary on the Task Navigation bar. The Transaction Summary page appears. Apple Pye Continued on next page APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-13

46 Voiding the NSF Check C-IV, Continued Voiding an NSF check in C-IV (continued) Step Action Result 6 Select the Transaction Number for the bounced check. The Transaction Detail page appears. 7 Click on the Bounce button. The amount of the bad check is added back to remaining balance. The Transaction Detail page appears. 8 Print a copy of the Transaction Detail screen to prove that the action was taken. 9 Click the Close button. Refer to the Setting Up the Collections Fee section of this chapter to bill the customer for the $10 bounced check fee. Transaction is completed. APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-14

47 Setting Up the Collection Fee in C-IV Overview San Bernardino County Ordinance 2831 requires that a $10 (ten-dollar) collection fee be assessed for each bounced check. The FA sends a demand letter advising the customer of the fee with the original repayment request. The customer is required to pay the fee separately from the original amount due. When the original payment has been voided in C-IV, a separate account must be set up to collect the NSF check charge. C-IV fee procedures This section describes the steps the FA will follow to set up a new collection account right after voiding the NSF check in C-IV. Step Action Result 1 From the Recovery Account Search page, click on Create External Recovery Account. The Recovery Account Detail page appears. 2 Select Program Type. Click on the Case Number button. The Select Person screen appears. 3 Enter the Case Number. Click on Search. The Select Person screen appears. Continued on next page APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-15

48 Setting Up the Collection Fee in C-IV, Continued C-IV fee procedures (continued) Step Action Result 4 Click on the name of the person who wrote the check or the person responsible for the case. The Recovery Account Detail Click on Search. page appears. Able, Person Fineman, R.J. Pye, Apple 5 Select the Cause Type from the drop-down box. Select the Reason Type from the Reason drop-down box. Click on the Date of Discovery in the Discovery Date text box. (This is the date that the ACR was notified of the bounced check). Select Pending from the Status drop-down box. Select In-Process from the Status Reason drop-down box. In the ICT box, do not change. Select None from the Investigations drop-down menu. Click on Person under Responsible Party. The Selected Person page appears. Continued on next page APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-16

49 Setting Up the Collection Fee in C-IV, Continued C-IV fee procedures (continued) Step Action Result 6 Enter the case number. The Selected Click on Search. Person page 7 Click on the name of the person who wrote the check or the person responsible for the case. Click on Search. 8 Enter comments, as needed. Click on Save and Continue. 9 Click on the box for Benefit/Service Month Date. Select the correct month. Click on the appropriate Aid Code. Enter the $10 fee for Original Payment. Enter zero for the Correct Payment. In Non-Reportable box, leave as No. Click on the Save and Return. appears. The Recovery Account Detail page appears. The Recovery Account Detail page appears. The Overpayment Detail page appears. 10 Click on Edit. Select Active for the Status. Select Active for the Status Reason. Click on Save. Transaction has been completed. APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-17

50 Voiding the Original Payment Receipt Overview Once the NSF check has been voided in FARRS or C-IV, the original receipt must be voided in the Auditor s Deposit Book. This section contains instructions for the FA to follow to void the original payment receipt. Voiding a payment receipt To void the original payment receipt in the Auditor s Deposit Book, the FA will follow the steps described below: Step Action 1 Find the date the check was deposited into Bank of America from the back of the check. 2 In the Auditor s Deposit Book - Go to the month of deposit and find the correct receipt register with the receipt number on it. Note: The Auditing copy of the receipt will be attached to the Auditor s Deposit for that day if the Auditors Deposit Book is not completed yet. When the Auditors Deposit Book is completed for the month, the receipt will no longer be attached to the Auditors Deposit. The entire month s receipts are interfiled by receipt number and put into a manila envelope and put into the front of the book. 3 Write in red ink in the receipt register - Void, The reason that the check bounced, and The date listed on the inter-office memo from the ACR. 4 Write in red ink on the receipt - Void, The reason that the check bounced, and The date listed on the inter-office memo from ACR. 5 Make one copy of the receipt. Retain the copy with the NSF paperwork. 6 Return the original paperwork to the Auditor s Deposit Book. APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-18

51 Notifying the Payor Overview The person who wrote the NSF check must be contacted and a written demand for repayment of the money must be made with the assessment of a $10 NSF fee. This section explains the procedures that the FA must follow. Acceptable repayment methods Once an NSF check is received from the payor, personal checks can no longer be accepted from that payor for the reimbursement of the NSF check or for any future payments. Acceptable forms of repayment are cash, money order or a cashier s check. The demand letter explains these requirements. Collection fee Pursuant to San Bernardino County Ordinance 2831, a $10 (ten-dollar) collection fee is assessed for each NSF. The $10 NSF fee is explained in the demand letter. Notifying the payor of an NSF check Demands for repayment are requested in two different forms depending on whom the payor is. Normally, the payor of the NSF is sent a NSF letter. But if the payor is an HS employee, then an is sent to the employee and cc d to the employee s supervisor. The FA will follow the steps below to notify the payor of the NSF check: Situation 1 Any payor of NSF check (Except an HS employee) 2 An HS employee who is a payor of NSF check Action 1. Set up the $10 Collection Fee in C-IV. 2. Notify the payor of the NSF check by sending a demand letter. a. Completes Auditing 10: NSF Letter to Payor. b. Mails the demand letter to the payor. c. Retains a copy of the with NSF paperwork. Notify the employee by sending an 1. Sends an to the employee with a cc: to his/her supervisor advising of the NSF check information. Copy and paste the NSF Memo to HS Employee on blank Send copies of the , the bad check and the VOID receipt to the employee s district Receipting OA. 3. Retain a copy of the with NSF paperwork. Continued on next page APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-19

52 Notifying the Payor, Continued NSF letter to payor The tab-thru form - Aud 010: NSF Letter to Payor can be completed and sent to a payor when his/her check has returned due to NSF. It is available in the Auditing Forms Catalog. Continued on next page APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-20

53 Notifying the Payor, Continued NSF Memo to HS Employee The attached suggested memo template: NSF Memo to HS Employee can be sent to an HS employee when his/her check has been returned for NSF. To use, copy the memo, paste it into an , enter appropriate information and make corrections, as needed, and send. To: Employee Name CC: Employee s Supervisor Subject: NSF Returned Check NSF Memo to HS Employee Hello HS Auditing has received a memo from the Auditor/Controller-Recorder s office dated indicating that the payment you made for your (month) telephone bill was returned as non-sufficient funds (NSF). The check #, dated, was in the amount of $. Within 15 days of the date of this you must submit payment to HS Auditing in the amount of $. This will cover the amount of the original bill as well as the $10 NSF fee. You must submit the payment in cash, cashier s check or money order. If payment is made by cashier s check or money order, a separate cashier s check or money order is required for the ten-dollar ($10) returned check fee. If you wish to submit the payment to your district s receipting OA, please inform him/her that you are paying for a bounced check fee and your phone bill. If you wish to send the payment directly to HS Auditing, send to: HS Auditing/Collections 825 Hospitality Lane, 1 st Floor San Bernardino, California Thank you, Your name Your Title HS Auditing Collections Unit Your address Your telephone number APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-21

54 NSF Check Log Overview The NSF Check Log is a folder containing a list of all bounced checks with the corresponding paperwork. A new NSF Check Log is assembled for each quarter of the fiscal year. Once all steps have been taken to process the NSF check, the FA will log in and file the NSF check paperwork into the NSF Check Log. This section provides NSF Log instructions. NSF check log procedures The FA will refer to the steps below for logging in and filing the NSF check paperwork. Step Action 1 On the left side of the NSF Check Log, enter the following information on the tracking form: Date, Responsible party s name, Case # or if the check came from an employee, writes EMP. 2 Assemble the following documents related to the NSF check: Original inter-office memo from the ACR with the original bounced check. Copy of the completed Request to Transfer Funds memo received from the FS. Copy of the demand letter to the payor (or copy of the if an HS employee). Pink copy of memo to the district s Receipting OA (if the payor is an HS employee). 3 On the right side of NSF Check Log, file the NSF paperwork with the most current NSF check received on top. APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-22

55 Processing Repayments and Fees Overview Once the payor submits a repayment for the NSF check and the $10 NSF fee, both payments must be processed. This section provides instructions for the processing of NSF check reimbursements. In this section This section contains: Topic Repayment and Fee Procedures Receipting NSF Repayments & Fees - FARRS Receipting NSF Repayments & Fees C-IV See Page 2-H-24 2-H-25 2-H-30 APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-23

56 Repayment and Fee Procedures Overview When the bounced check reimbursement money plus the $10 NSF fee have been received, they must be receipted. This section provides processing procedures. Processing NSF check repayment and fee The FA will follow the instructions below to process the NSF repayment and NSF fee: Step Action 1 Identify the account to be reimbursed. Locate the payor and NSF check information from the returned demand letter attached to the reimbursement. If no demand letter is attached, follow the normal procedures for doing a name search on FARRS. 2 Receipt both payments received either in FARRS or C-IV - The NSF reimbursement to the account the original payment was receipted to, and The $10.00 NSF fee. 3 Make 2 copies of each receipt. 4 In the NSF Check Log - Enter the receipt numbers for the NSF repayment and $10 NSF fee on the on the log sheet and checks the paid box. File the new receipts with the original NSF paperwork in the NSF Check Log. 5 Mail to the client or employee - The original bounced check, and The receipts for the NSF fee and the NSF check reimbursement. APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-24

57 Receipting NSF Replacements and Fees - FARRS Overview All payments originally receipted into FARRS must be re-receipted in FARRS. The instructions for receipting NSF repayments and NSF fees in FARRS are included below. Receipting payment To manually receipt a payment, the FA will go into the FARRS system and follow the steps described below. Step Action 1 When FARRS is opened, Click on Create a Receipt on the FARRS tool bar: 2 Enter the Payment Amount in the Amount box. Click on the Payment Type from the drop down box. Only Cash or Money Orders can be accepted. Continued on next page APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-25

58 Receipting NSF Replacements and Fees - FARRS, Continued Receipting payment (continued) Step Action 3 Select the appropriate Accounting Code from the drop down box. 4 Select the Service Month from the drop down box. 5 Enter the Year. If the year needs to be changed: Click just before the last two digits, Double click on delete, and Type in the last two numbers of the correct year. Continued on next page APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-26

59 Receipting NSF Replacements and Fees - FARRS, Continued Receipting payment (continued) Step Action 6 To enter the Payor Data Click on Copy Payor. Enter the First and Last Names. Click on Search. A list of names will appear. Click on the correct Name. Click on Use. The information is automatically inserted. 7 Click on the Save Receipt icon. Continued on next page APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-27

60 Receipting NSF Replacements and Fees - FARRS, Continued Receipting payment (continued) Step 8 To print receipt - Click on the Utilities folder. Click on Print Receipts. Action 9 When the Print Receipts box open, Click on Unprinted Receipts. Click on Print. 10 To add the payment to the Fund Account Click on Reports folder. Click on Fund Account Report. 11 In the Fund Account Report box, Enter the date. Click on Print. Continued on next page APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-28

61 Receipting NSF Replacements and Fees - FARRS, Continued Receipting payment (continued) Step 12 Click on the Reports folder. Click on Receipt Recap. Action APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-29

62 Receipting NSF Replacements and Fees - C-IV Overview This section explains how to receipt a NSF repayment and NSF fee in C-IV. The following procedures are included in these instructions: Posting payments to a Recovery Account. Printing the Transaction Detail page. Posting payments to a Recovery Account The FA will take the following actions to post the NSF replacement and the $10 NSF fee to a Recovery Account: Step Action Result 1 Click on Fiscal tab on the Global Navigation bar. The Issuance Search page appears. 2 Click Collections tab on the Local Navigation bar. The Recovery Account Search page appears. 3 On the Recovery Account Search page and select Search Criteria from the Search By drop down box. The Search Results Summary appears. Continued on next page APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-30

63 Receipting NSF Replacements and Fees - C-IV, Continued Posting payments to a Recovery Account (continued) Step Action Result 4 Click the hyperlink for the desired Recovery Account Number. The Recovery Account Detail page appears. 5 Click the Transaction Summary link on the Task Navigation bar. The Transaction Summary page appears. 6 Click the Add Transaction button. The Transaction Detail page appears. Continued on next page APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-31

64 Receipting NSF Replacements and Fees - C-IV, Continued Posting payments to a Recovery Account (continued) Step Action Result 7 On the Transaction Detail page: Select Effective Month (if other than current month), Enter Transaction Amount, 8 If payment is by check or money order enter check or money order number in Source Document Number text box, Select Transaction Type from the Transaction Type drop down box, Select a Transaction Method from the Transaction Method drop down box, Select the Responsible Party from the Responsible Party drop down box, If appropriate, add Comments in the Comments text box. 9 When all information is complete, click the Save button. After clicking the Save button, the page will refresh with a Receipt Number. Printing the Transaction Detail page To print the transaction detail page as a receipt, the FA will: Click the Printer Icon or click File on the Browser Bar, and Select Print from the drop down box. Click the Close button. The Transaction Detail page is printed. APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-32

65 FAS Codes Overview The Financial Accounting System (FAS) assigns specific accounting codes to departments by expense and payment types in order to accurately track expenditures. It is important that expenses and payments are credited to the correct FAS codes. A list of the most common FAS Codes is included in this section. These codes are also in both the C-IV and the FARRS systems for the receipting of payments. To locate additional FAS Codes refer to the Basic FAS Manual at: Continued on next page APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-33

66 FAS Codes, Continued Commonly used FAS codes The most commonly used FAS Codes are listed in the table below. The table identifies the: FAS Code, FAS Code s description, and Which receipting system - FARRS or C-IV, the code is listed in. FAS Code Description System AAA DPA DPA XLX Copies FARRS AAA DPA AU SSI Reimbursement FARRS Payee Fees AAA DPA AU % Fraud Collection Both Fee AAA ADS ADS 9440 Proposition 36 Fund FARRS AAA DPA DCS CAC Medical Exams FARRS VHF DPA DPA 9990 CalWORKs Both Overpayments AAA DPA CNP ESP Ancillary, Refund FARRS Tuition AAA DPA DPA XPB FARRS AAA ATI ATI 9970 Aid to Indigents Both VHJ DPA DPA 9990 Food Stamps Other Both X56, X57, X60 VHK DPA DPA 9990 Food Stamps X38, Both X61 VHL DPA DPA 9990 Food Stamps X55, Both X59 VHM DPA DPA 9990 IHSS Refund FARRS AAA DPA DPA NSF Check Fees Both AAA DPA CNP Phone Calls FARRS AAA DPA DPA Phone Calls FARRS NOV DPA DPA 9990 Dept. of Education FARRS AAA DPA DPA Agency Adoption Fee FARRS AAA DPA DPA Stepparent Adoption FARRS Fees AAA DPA DCS XPX FARRS AAA DPA PERC Class Fee FARRS VHI DPA DPA 9990 Unidentified Money, FARRS Miscellaneous AAA DPA DPA Guardianship Fees FARRS APPHB #0003 (05/07) Non-Sufficent Funds (NSF) 2-H-34

67 AUDITING POLICY AND PROCEDURES HANDBOOK VOLUME 2 CHAPTER L Collections Table of Contents General... 2-L-1 Overpayment Process... 2-L-6 Write-off Policy... 2-L-8 Collections... 2-L-14 APPHB #0012 (03/12) TABLE OF CONTENTS PAGE 1 OF 1

68 General Introduction This section contains general information regarding Foster Care and Kinship Guardianship Assistance Payment (Kin-GAP) overpayments and how they should be treated, along with terms and definitions. Background Senate Bill (SB) 84 required the development of regulations and processes for identifying, tracking and collecting Aid to Families with Dependent Children-Foster Care (AFDC-FC) and Kin-GAP overpayments. Reference The following are references for overpayments: SB 84 All County Letter (ACL) ACL ACL All County Information Notice (ACIN) I Manual of Policies and Procedures (MPP): through Forms The following are forms that are referenced or used by Auditing in this chapter: SOC 841 Notice of Overpayment and Request for Voluntary Repayment AUD 900 Debtor Unable to Pay Request AUD 905 Payment Received Letter AUD 909 Auditing Narrative AUD 915 Appointment Letter FC 920 Auditing Referral FC 935 Statement Letter FC 964 Voluntary Repayment Agreement NA 1261 Overpayment AFDC-Foster Care Benefits Notice Continued on next page APPHB #0012 (03/12) COLLECTIONS 2-L-1

69 General, Continued Overpayment An overpayment is: Any amount of aid paid that a foster care provider received on behalf of a child to which the provider was not entitled, or An expenditure made by a Foster Family Agency (FFA) or group home provider not in conformity with activities that serve or benefit Foster Care children. Note: An overpayment which resulted from the payment of Aid Paid Pending (APP) a State Administrative Appeals Hearing can also be recovered. Providers An overpayment can be recovered from, but not limited to, the following types of providers: Group Homes FFAs Small Family Homes Foster Family Homes (FFHs) Relative Homes Non-relative Extended Family Members (NREFMs) Non-related Legal Guardians Kin-GAP Discovery date The discovery date is the date the overpayment was discovered. This can occur more than a year after the actual overpayment occurred and recovery will be sought. The date of discovery is the controlling factor for collection of an overpayment, not the date of the actual overpayment. Overpayment recovery Overpayment recovery shall not be initiated after one year from the date the overpayment was discovered; however, repayment schedules can last longer than a year from the discovery date. Note: Involuntary repayment schedules can be started after one year from the initial date of discovery when a provider has failed to comply with a voluntary repayment schedule. Overpayment identification An overpayment is not identified until: Two days after the date the overpaid provider s timeframe to request a hearing has elapsed, or The date the overpaid provider exhausts administrative due process. Continued on next page APPHB #0012 (03/12) COLLECTIONS 2-L-2

70 General, Continued Demand and collection of overpayments The County must demand and collect overpayments from any provider (as defined in this chapter) for any period of time in which the foster child was not cared for in that home, except as described in the Exceptions to overpayment collections block in this section. Note: Overpayments will only be collected from the provider who actually received the overpayment. Exceptions to overpayment collections Demand and collection of overpayments shall not be made when: The provider did not have knowledge of, and did not contribute to, the cause of the overpayment. This applies to the following approved providers/placements: FFH Relative home NREFM Non-related Legal Guardian Payment was made to: An eligible provider for a child temporarily absent for a period not to exceed 14 days in a calendar month. Non-profit corporations operating group homes or FFAs that are no longer in business or licensed by the County. The amount of the overpayment is less than $100. See Write-off Policy section in this chapter for more information. One year has elapsed from the date the overpayment was discovered and overpayment recovery had not been initiated. Voluntary repayments In cases where the provider did not have knowledge of, and did not contribute to the cause of, an overpayment, a request for the provider to voluntarily return an overpayment can be made, as long as he/she is informed via the Notice of Overpayment and Request for Voluntary Repayment (SOC 841): Provider has no legal or other obligation to return the overpayment, and Failure to return the overpayment will not result in any adverse action against the provider and any child living in the home. Continued on next page APPHB #0012 (03/12) COLLECTIONS 2-L-3

71 General, Continued Involuntary repayments Overpaid providers who are required to repay an overpayment will be informed, via the Overpayment AFDC-Foster Care Benefits Notice of Action (NOA) NA 1261 of: The amount of the overpayment calculated by month, The date or dates the overpayment was made, The date the overpayment was discovered, The program in which the overpayment was made, The reason or cause for the overpayment, Voluntary repayment options and procedures, including a voluntary grant offset, Involuntary repayment procedures and related consequences if voluntary repayment is not agreed to or entered into, and The provider s right and timeframe to request: An informal hearing, and A State hearing. Voluntary repayment agreement If a provider agrees to voluntarily repay the assessed overpayment, the provider will sign a written Voluntary Repayment Agreement (FC 964) which includes the: Amount of the overpayment, Terms of repayment, Repayment schedule, and Consequences for failure to comply with the terms of the voluntary repayment agreement. Conditions of the voluntary repayment agreement The voluntary repayment agreement will provide: Provider has sufficient funds to provide adequate care and supervision to all children in care after payment. During the period the agreement is in effect, it is the responsibility of the provider to timely inform the county of circumstances under which continued payment under the voluntary repayment agreement may result in insufficient funds to provide adequate care and supervision to all children in care. Provider is waiving rights to appeal the overpayment determination and the amount of the overpayment when agreeing to a voluntary repayment Agreement can be amended only by the consent of both the County and the provider. Continued on next page APPHB #0012 (03/12) COLLECTIONS 2-L-4

72 General, Continued Consequences of not repaying The consequences for not complying with the terms of the voluntary repayment agreement may include, but is not limited to: Restrictions on current and future placements, Involuntary repayment, and Monetary damages that relate to increased administrative costs incurred due to the provider s non-compliance. Documenting an overpayment Every case identified with an overpayment must include a Journal entry with the following information: Amount of overpayment, Actual dates of the days overpaid, Date of discovery of the overpayment, Aid code for which the overpayment was made, and Reasons for the overpayment error. Temporary absence An overpayment does not occur when payment was made to an eligible facility for a child temporarily absent for a period not to exceed 14 days in a calendar month. Write-off policy An overpayment can be written-off in the following situations: Debtor cannot be located, Debtor is unable to pay, or The overpayment amount does not exceed $100. APPHB #0012 (03/12) COLLECTIONS 2-L-5

73 Overpayment Process Introduction This section contains information regarding the process for overpayments, actions needed for certain situations during the overpayment process, and what to do with the Pending Recovery Account Report. Overpayment process When information indicates an overpayment may have occurred, the Eligibility Worker (EW) will follow the steps in the chart below: Step Action 1 Review the case to determine what the correct benefit amount should have been. 2 Calculate the amount of the overpayment. 3 Determine from whom the overpayment will be recovered. 4 Determine how the overpayment will be repaid. If the overpayment will be repaid through An involuntary repayment, A voluntary repayment, Then Send the provider the NA 1261 Overpayment of AFDC-Foster Care Benefits Notice of Action (NOA) with the FC 964 Voluntary Repayment Agreement. Create a Recovery Account in C-IV, and: Leave the Recovery Account in Pending status, and Set a 92-day Task to change status to Active. Send the SOC 841 Notice of Overpayment and Request for Voluntary Repayment and the FC 964. Create a Recovery Account in C-IV, and: Change Recovery Account status to Uncollectible, and Document in the Comments field the reasons the overpayment can only be collected through a voluntary repayment. Note: See the Overpayment situations block in this section for more information on Task setting. 6 Journal actions taken. Note: When overpayment recovery is started within one year of the discovery date, the overpayment will be recovered until fully paid or written off. Continued on next page APPHB #0012 (03/12) COLLECTIONS 2-L-6

74 Overpayment Process, Continued Overpayment situations The table below shows various situations affecting overpayments and the actions the EW must take when they arise. Situation Action Overpayment discovered Set a 92 day Task from the date the overpayment is discovered, and Leave the Recovery Account in Pending status. Provider requests an Clear the 92 day Task, informal hearing Set a 45 day Task to follow up on the hearing decision, Apply Aid Paid Pending (APP) as needed, and Leave the Recovery Account in Pending status. Provider signs a FC 964, Clear any Recovery Account Task, and repayment agreement Change the Recovery Account status from Pending to Active as the provider is waiving his/her right to a hearing. Provider is sent the informal hearing decision Provider withdraws their Clear the 45 day Task and set a 92 day Task to provide time for the provider to request a state hearing, informal hearing request Provider fails to appear for Leave the Recovery Account in Pending status, and the informal hearing Leave APP as is. Provider does not request On the 92 nd day from the date on the NA 1261, a hearing for 90 days from Clear the 92 day Task, and the date of the NA 1261 Change the Recovery Account status from Pending to Active. Provider requests a state Clear the 92 day Task, hearing Set a 60 day Task to follow up on the hearing decision, Apply APP as needed, and Leave the Recovery Account in Pending status. Overpayment is upheld at Clear any Recovery Account Task, the state hearing Apply any AAP as an overpayment, and Change the Recovery Account status from Pending to Active. Overpayment is not upheld Clear any Recovery Account Task, and at the state hearing Void the Recovery Account. Note: All Tasks mentioned in the chart above are calendar days and set in the C-IV system. Hearing dates and decision must be noted in the Comments field of the Recovery Account page in C-IV and all actions Journaled. APPHB #0012 (03/12) COLLECTIONS 2-L-7

75 Write-off Policy Introduction This section contains information regarding situations when an overpayment can be written off, and the documentation needed. Write-off policy An overpayment can be written-off in the following situations: Debtor (provider) cannot be located, Debtor is unable to pay, or The overpayment amount does not exceed $100. Note: The Transitional Assistance Department (TAD) Eligibility Workers (EWs) will be responsible for writing off overpayments that do not exceed $100. Auditing referrals The following overpayment situations will be referred to Auditing by TAD: Debtor cannot be located, or Debtor is unable to pay. Cannot locate debtor EWs will the FC 920, Auditing Referral form, to Auditing advising the debtor cannot be located when the NA 1261 Notice of Action (NOA) was returned: As Undeliverable, As Addressee unknown, or Without any forwarding address. Note: Prior to ing the FC 920 to Auditing, the EW will image the returned NOA and envelope into the C-IV system (preferably the envelope will be imaged while the NOA is folded and in the returned envelope). The FC 920 will be ed to HS Auditing Foster Care Overpayments. Continued on next page APPHB #0012 (03/12) COLLECTIONS 2-L-8

76 Write-off Policy, Continued Cannot locate debtor process The HS Auditing Foster Care Overpayments inbox will be checked daily by a Fiscal Assistant. The Auditing department must follow the process below when TAD advises a debtor cannot be located. Stage Description 1 The EW s the FC 920 to Auditing. 2 The Fiscal Assistant: Checks the HS Auditing Foster Care Overpayments inbox on a daily basis, Searches for the debtor in various websites and/or systems (refer to the Fiscal Assistant research block in this chapter for more information), Documents the search results on a Locate Debtor Log, and Forwards the FC 920 and printed research documentation (documents resulting from the search results) to the Accountant for review within five working days of receipt of the . 3 The Accountant reviews the FC 920 and research documentation provided by the Fiscal Assistant to determine if the debtor has been located, and: If the debtor is... Not located, Located, Then the Accountant will... Write off the Recovery Account in C-IV. Return the FC 920 and back-up documentation to the Fiscal Assistant. Journals actions using the AUD FC Journal template, and Updates the Locate Debtor Log. Note: The Journal template can be found in the HSSNET website, under Online ToolsJournal TemplatesAuditing. 4 The Fiscal Assistant mails a copy of the original NOA that was imaged into C-IV, along with the Repayment Agreement (FC 964) to all the addresses matched to the debtor. If the NOA copy is... Returned, and was addressed incorrectly, Returned, and was addressed correctly, Received by the wrong person, Then the OA will... Correct the address and re-send the NOA. Forward the returned mail to the Accountant for write-off. Continued on next page APPHB #0012 (03/12) COLLECTIONS 2-L-9

77 Write-off Policy, Continued Fiscal Assistant research The Fiscal Assistant will search various websites and/or systems in an attempt to locate a debtor. The search will involve, but is not limited to: C-IV system Resource Databank Community Care Licensing Division County Assessor Mytaxcollector.com Google.com WhitePages.com PeopleSmart.com Yellowpages.com Note: When searching in the Community Care Licensing Division, Fiscal Assistants will click on the Find Licensed Care link and select the facility type from the drop down menu. Debtor cannot pay When a debtor claims he/she cannot pay an overpayment, he/she will be referred to call the Auditing Recovery Unit at (909) Debtor cannot pay process The following process must be used when a debtor contacts the Auditing Recovery Unit claiming he/she cannot repay an overpayment. Stage Description 1 The Recovery Unit: Completes the AUD 900 form (Debtor Unable to Pay Request) with the debtor s information, Advises the debtor he/she will be contacted by an Accountant to discuss his claim, and s the completed form to the HS Auditing Foster Care Overpayment mailbox. 2 The Accountant: Contacts the debtor to set up an appointment. Advises the debtor of the type of documentation that will be needed for the appointment. Completes and mails the AUD 915, Appointment Letter: Advising of the appointment time, and Requesting a current credit report with the credit report resource letter. Meets with the debtor and makes a determination as to whether the debtor can afford to repay the overpayment (see Payment determination block in this chapter for more information). Continued on next page APPHB #0012 (03/12) COLLECTIONS 2-L-10

78 Write-off Policy, Continued Document types The Accountant will review two document types (Monthly Debt and Monthly Income) to determine if the debtor can pay the overpayment. Monthly Debt Mortgage Credit card payments (minimum amounts) Car loans Student loans Alimony payments Child support payments Other payments/loans Monthly Income Earned income Alimony payments Child support payments Unearned income Other income Additional documentation In addition to the monthly income and debt documentation, the debtor will also have to provide: Last year s tax return, Bank statements for the last three months (all accounts), and Current credit report Note: The release will be used to pull current credit reports. Payment determination Once the appointment has been scheduled for the debtor, the Accountant will take the following action: Step Action 1 Meet with the debtor in an interview room. 2 Review the credit report, if applicable. 2 Copy and review the documentation provided by the debtor. 3 Document all the information provided by the debtor in the AUD 909, Auditing Narrative form. 4 Review all the information pertaining to the debtor s claim of not being able to pay. 5 Determine the debtor s ability to pay. 6 Inform the debtor of the outcome within two weeks of the appointment by sending the FC 935 (Statement Letter). Note: Refer to the Accountant determination block in this chapter for more information. Continued on next page APPHB #0013 (09/12) COLLECTIONS 2-L-11

79 Write-off Policy, Continued Accountant determination The Accountant is responsible for determining whether or not a debtor can pay an overpayment. Once the debtor has provided all the information and documentation available, the Accountant will make the determination by following the chart below. Step Action 1 Totals all: Expenses provided by the debtor, including those found in the credit report. Income declared by debtor and discovered by the Accountant. 2 Calculate the debt-to-income ratio, based on the type of facility (Foster Family Home (FFH) vs. Foster Family Agency (FFA)/group home). 3 Determine if the debtor can pay the overpayment. Note: If the debt to income rate is 70%, it will be determined the debtor cannot pay. 4 Have the Supervising Accountant III review the results for approval of the determination. 5 Review the Supervising Accountant III s response to the determination, and: If the debtor... Then... Can pay the overpayment, Go to Step 6. Cannot pay the overpayment, Write-off the overpayment in C-IV, and Go to Step 7. 6 Complete the FC 964, Repayment Agreement, informing the debtor of the minimum amounts of payments which will be accepted. 7 Mail the debtor the FC 935, along with the FC 964 (if appropriate), informing him/her of ability to pay determination. Note: Give the debtor 14 calendar days to return the form. 8 Image all documents into C-IV. 9 Journal outcome in C-IV using the AUD FC Journal template. Note: The Journal template can be found in the HSSNET website, under Online ToolsJournal TemplatesAuditing Overpayment less than $101 All overpayments of $100 or less will be written off by the EW and will not be referred to Auditing. Overpayments which fall below this amount exceed estimated recovery amounts and will not be actively pursued. Continued on next page APPHB #0012 (03/12) COLLECTIONS 2-L-12

80 Write-off Policy, Continued Writing off an overpayment in C-IV Once the County has determined an overpayment can be written off, the Accountant will: Document the write-off of the overpayment (as indicated in the Documenting a write-off block of this section) in the C-IV: Journal, and Recovery Account Comment field. Update the Recovery Account: Status to Terminate, and Status Reason to Write-off. Documenting a write-off Adequate documentation must be maintained in the case file supporting the decision to write-off an overpayment. Adequate documentation must include, but is not limited to: A description of all actions, including the dates of those actions that have been taken to recover the overpayment, and the result from those actions. The costs and benefits of engaging in these further collection actions. The basis for the decision to pursue/not pursue collection of the overpayment. Documenting the amount of the overpayment when it does not exceed $100. APPHB #0012 (03/12) COLLECTIONS 2-L-13

81 Collections Introduction This section contains information regarding the different methods for collecting on overpayments. Collecting overpayments Overpayments will: Only be collected from the provider who actually received the overpayment, and Not be collected from subsequent providers who provide care to the child for whom the overpayment was assessed. Exceptions to overpayment collections Demand and collection of overpayments shall not be made when: The provider did not have knowledge of, and did not contribute to, the cause of the overpayment. This applies to the following approved providers/placements: Foster Family Home (FFH) Relative home Non-relative Extended Family Members (NREFM) Non-related Legal Guardian Payment was made to: An eligible provider for a child temporarily absent for a period not to exceed 14 days in a calendar month. Non-profit corporations operating group homes or FFAs that are no longer in business or licensed by the County. The amount of the overpayment is less than $100. See Write-off policy section for more information. One year has elapsed from the date the overpayment was discovered and overpayment recovery had not been initiated. Repayments A provider can voluntarily agree to repay an assessed overpayment, using the FC 964 Repayment Agreement, in the following order of priority: Voluntary Lump Sum Voluntary Repayment Agreement Voluntary Grant Offset Note: See the Voluntary Repayment Options section in this chapter for more information. Grant offset/ adjustment A grant adjustment or grant offset will not be used to recover the amount of an overpayment if the child for whom the overpayment was assessed is no longer residing in the home of the provider. Note: This applies even if the provider is caring for other Foster Care children. Continued on next page APPHB #0012 (03/12) COLLECTIONS 2-L-14

82 Collections, Continued FC 964 The provider will return the FC 964 Repayment Agreement as follows: If the provider agrees to a Lump sum payment, or Repayment agreement, Grant offset, Then the FC 964 will be returned to the Human Services (HS) Auditing Department. Eligibility Worker (EW) who sent the overpayment notice. Payment without the FC 964 In the event the following payments are received from a debtor with no FC 964, Auditing will do as follows: If the debtor sent a... Then Auditing will... Full payment for the overpayment, Change the Recovery Account from Pending status to Active if not already Active, and Enter the payment amount into the Recovery Account. Partial payment for the overpayment, Note: Once the account is paid in full, C-IV will automatically close the account. Change the Recovery Account from Pending status to Active if not already Active, Enter the payment amount into the Recovery Account, and Mail the Payment Received Letter (AUD 905), along with the FC 964 to the debtor with a 14 calendar day due date. Note: The AUD 905 will give 14 calendar days for the debtor to return the signed FC 964. Collection for group homes and FFAs Group home and FFA overpayments will be collected in the following order of priority: Lump sum 12-month repayment agreement Repayment agreement Lump sum A group home or FFA provider can repay an assessed overpayment by making a lump sum payment to the county on or before the date the provider and county have agreed the repayment would be received. Continued on next page APPHB #0012 (03/12) COLLECTIONS 2-L-15

83 Collections, Continued Repayment agreements Group home and FFA providers can choose to repay an overpayment through a 12-month repayment agreement or a repayment agreement (lasting longer than 12 months). Both repayment agreements will be entered into within 30 days from the: Date an overpayment is sustained, or Postmark date of a letter notifying the provider of a self-reported overpayment that is not reconciled. Note: There is no right to a state hearing regarding overpayments made to Foster Care providers when the provider entered into a repayment agreement. Repayment agreement Group home and FFA providers can repay overpayment amounts through a repayment agreement to Auditing. The agreement will include the following: The number of months of the agreement, the amount of the monthly payment, and the date the payment is due, at a minimum. The overpayment amount will be repaid within nine years from the date the repayment agreement is effective. The minimum monthly amount to be used for a repayment period not to exceed nine years for the overpayment will be three percent of the program s monthly benefit amount. Payments will be: Made payable to the HS Auditing - Collections. Sent by mail to: HS Auditing Collections 825 East Hospitality Lane San Bernardino, CA Note: Providers who want to repay an overpayment are referred to Auditing. Continued on next page APPHB #0012 (03/12) COLLECTIONS 2-L-16

84 Collections, Continued Auditing actions Once a group home or FFA provider contacts Auditing wanting to enter into a repayment agreement, Auditing will take the following steps: Step Action 1 Research the overpayment in question to determine the amount owed. 2 Take the overpayment amount and divide by 12 to determine a one year collection period. 3 Provide the amount to the provider, and: If the provider Agrees with the amount, Does not agree with the amount, Go to Step 4. Then Divide the overpayment amount by 108, Inquire how much the provider is willing to pay monthly, and Use the greater of the following: Amount given by the provider, and Amount divided by Take the necessary information to complete the FC Mail the FC 964 to the provider with a 14 calendar day due date. 6 Journals actions taken into C-IV. APPHB #0012 (03/12) COLLECTIONS 2-L-17

85 "What's New" For your reference, you will find here a list of all published Handbook Letters, IIN's, and 103's. The Handbook Letter Covers, IIN's and 103's are organized by publishing date from the newest to the oldest.

86 Handbook Cover Letters: We are publishing Cover Letters that accompany every HB Letter that has become part of the handbook. They are organized by publishing date from the newest to the oldest.

87 SAN BERNARDINO COUNTY HUMAN SERVICES OCTOBER 2, 2013 AUDITING POLICY AND PROCEDURES HANDBOOK LETTER #0015 VOLUME 2 - CHAPTER D Tax Intercepts Overview The Auditing Policy and Procedures Handbook Volume 2: Chapter D Tax Intercepts has been updated to incorporate Interim Instruction Notice (IIN) # information regarding the Internal Revenue Service (IRS) Federal Tax Information (FTI) security requirements. Filing instructions Add: Table of Contents Pages: 2-D-1 through 2-D-6 Obsolete: IIN # Distribution APPHB DM:SS:kc APPHB #0015 (10/13) CVR LTR PAGE 1 OF 1

88 SAN BERNARDINO COUNTY HUMAN SERVICES SPETEMBER 25, 2012 AUDITING POLICY AND PROCEDURES HANDBOOK LETTER #0013 VOLUME 2 CHAPTER L Collections Overview The Auditing Policy and Procedures Handbook (APPHB) Volume 2, Chapter L Collections has been revised to update the additional documentation needed when an overpayment can be written off. Filing instructions Remove and Replace: Page: 2-L-11 Distribution Auditing DM:SS:lr APPHB #0013 (09/12) CVR LTR PAGE 1 OF 1

89 SAN BERNARDINO COUNTY HUMAN SERVICES MARCH 7, 2012 AUDITING POLICY AND PROCEDURES HANDBOOK LETTER #0012 CHAPTER L Collections Overview This handbook letter adds Chapter L - Collections to Volume 2 of the Auditing Policy and Procedures Handbook (APPHB). The chapter will cover collections for Foster Care overpayments, and includes: General information, Overpayment process, Write-off policy, and Collections. Filing instructions Add: Chapter L Distribution Auditing DM:MM:cds APPHB #0012 (03/12) CVR LTR PAGE 1 OF 1

90 SAN BERNARDINO COUNTY HUMAN SERVICES MAY 7, 2007 AUDITING POLICIES AND PROCEDURES HANDBOOK LETTER #0003 Overview The Auditing Policies and Procedures Handbook (APPHB) has been reformatted. The new handbook is divided into six volumes. The following information is included with this handbook letter: The handbook structure has been revised. A fifth and sixth volume have been added. Chapter titles have been moved and additional chapter titles have been added. One newly published chapter has been added. One previously published chapter has been removed. One previously published chapter has been moved. Chapter added: The following chapter has been added to this handbook - Volume 2, Chapter H - Non-Sufficient Funds (NSF) Chapter removed: Volume 4 Chapter A: Daily Courier This chapter has been removed. The contents will be included in a new chapter, Volume 4 Chapter A: Clerical Support Functions. Chapter moved: Volume 1, Chapter F: SARS Manual This chapter has been moved. It is now Volume 6, Chapter B, Accessing Computer Systems and Programs Section 23. Additional chapters will be published as completed. APPHB #0003 (05/07) CVR LTR PAGE 1 OF 6

91 Auditing Policy and Procedures Handbook (APPHB), continued Filing instructions Remove: Volume 4 Chapter A: Daily Courier Pages 4-A-1 through 4-A-6 Add: Volume 2, Chapter H - Non-Sufficient Funds (NSF) Pages 2-H-1 through 2-H-34 Remove and Replace: Remove Volume 1, Chapter F: SARS Manual Pages 1-F-1 through 1-F-21 Replace with Volume 6, Chapter B: SARS Manual Pages 1-B-23-1 through 1-B Distribution APPHB MC:HU:bw APPHB #0003 (05/07) CVR LTR PAGE 2 OF 6

92 Auditing Policy and Procedures Handbook (APPHB) NEW HANDBOOK STRUCTURE: Handbook structure The APPHB structure is outlined below: Volume 1: Payment Processing and Reconciliation Chapter A: Assistance Claims Chapter B: FAS / Claim Reconciliation Chapter C: EBT Cash Chapter D: EBT Food Stamps Chapter E: Reconcile Warrants, Direct Deposit and Cancels Chapter F: Direct Deposit Chapter G: Vendor / Voucher Payments Chapter H: Stop Payments Chapter I: Control Valuables Chapter J: Resource Databank (RDB) Maintainer Chapter K: Vital Records Request Chapter L: DCS Transportation Charges and FAS Request for Transfer Chapter M: Warrant Issuances / Cancellations Chapter N: 822 Report DPSS Register of County Authorizations Volume 2: Reconciliation and Recovery Chapter A: Child Support - Foster Care Payments Chapter B: DA Child Support Requests Chapter C: Receipting Payments Chapter D: Tax Intercepts Chapter E: Balancing and Banking Chapter F: Voiding a Payment Chapter G: Refunding Chapter H: Non-Sufficient Funds (NFS) Chapter I: Telephone Calls Chapter J: EBT Repayments and Agreements Chapter K: HS Auditing Financial Order Modifications and Adjustments Chapter L: Collections Reports Chapter M: Unit Support Functions Chapter N: Receipt Book Inventory Chapter O: Petty Cash Chapter P: Releasing Liens, Mortgages and Satisfactions of Judgment Continued on next page APPHB #0003 (05/07) CVR LTR PAGE 3 OF 6

93 AUDITING POLICIES AND PROCEDURES HANDBOOK LETTER #0003, continued Handbook structure, continued Volume 3: Reporting and Special Projects Chapter A: Statistical Reports Chapter B: FAS Corrections Volume 4: Special Programs Processing Chapter A: Clerical Support Functions Chapter B: Wraparound Chapter C: DE 542 Chapter D: 1099 Chapter E: Levies Chapter F: SSI Repayments for General Relief (GR) Chapter G: Sub-Payee Chapter H: Substance Abuse and Crime Prevention Act of 2000 (Prop 36) Chapter I: MEDS Chapter J: Building Manager Volume 5: Supplemental Income Advocacy (SIA) Chapter A: Acronyms and Definitions Chapter B: Forms Chapter C: General Information Chapter D: Roles Chapter E: HS Auditing Support Staff Duties Chapter F: SIA Case Manager Duties Chapter G: Disbursements Chapter H: Case Review / Determination Continued on next page APPHB #0003 (05/07) CVR LTR PAGE 4 OF 6

94 AUDITING POLICIES AND PROCEDURES HANDBOOK LETTER #0003, Continued Handbook structure, continued Volume 6: Appendix Chapter A Acronyms Chapter B - Accessing Computer Systems and Programs Section 1 - ABLE2Extract Section 2 - ACR Property Screens Section 3 - ARD s share drive Section 4 - Bank of America Cash Settlement Account Section 5 - CDSS Website Claims and Reports MPP and Fiscal Letters Section 6 - C-IV Section 7 - C-IV Unicenter Section 8 - Control D Section 9 - Document Library Manager Section 10 - DCS Warrant system Section 11 - FARRS Section 12 - FAS Section 13 Gain / Cal-Learn archives Section 14 - GRMS system Section 15 - JNET Section 16 - JPMorgan Section 17 - Legacy Database Section 18 - MEDS Section 19 - Office Depot Section 20 - Oracle Discoverer Section 21 - Prop 36 Database Section 22 - RPAS system Section 23 - SARS Section 24 - Stop Payment Database Section 25 - Treasurer s TZ Database Chapter C - HS Auditing Share Drive Chapter D - SharePoint Chapter E - Liaisons and Contacts List Continued on next page APPHB #0003 (05/07) CVR LTR PAGE 5 OF 6

95 AUDITING POLICIES AND PROCEDURES HANDBOOK LETTER #0003, Continued VOLUME 1 Specific changes The following change has been made to this volume: Volume 1, Chapter F: SARS Manual This chapter has been moved to Volume 6. The page numbers have been changed. VOLUME 2 Specific changes The following change has been made to this volume: Volume 2 Chapter H: Non-Sufficient Funds (NSF) This chapter contains instructions for the recovery of losses due to bad checks. VOLUME 4 Specific changes The following change has been made to this volume: Volume 4 Chapter A: Daily Courier This chapter has been removed. In a future handbook letter, the contents will be included in a new chapter, Volume 4 Chapter A: Clerical Support Functions. VOLUME 6 Specific changes The following chapter has been added with this volume: Volume 6 Chapter B, Section 23: This chapter has been moved from Volume 1. APPHB #0003 (05/07) CVR LTR PAGE 6 OF 6

96 SAN BERNARDINO COUNTY HUMAN SERVICES SEPTEMBER 11, 2006 AUDITING POLICIES AND PROCEDURES HANDBOOK LETTER #0002 Overview The Auditing Policies and Procedures Handbook (APPHB) has been reformatted. The new handbook is divided into four volumes with related chapters and an appendix with acronyms. The following information is included with this handbook letter: The old Chapter A: SARS, has been removed The new handbook structure is presented The following new chapters have been added: Volume 1 Chapter F: SARS Manual Volume 2 Chapter A: Child Support Foster Care Payments Volume 4 Chapter A: Daily Courier Volume 4 Chapter H: Substance Abuse and Crime Prevention Act of 2000 (Prop 36) Additional chapters will be published as completed. Filing instructions Remove and Replace: Old Chapter A: SARS Add: Pages: Volume 1, Chapter F: 1-F-1 through 1-F-21 Volume 2, Chapter A: 2-A-1 through 2-A-21 Volume 4, Chapter A: 4-A-1 through 4-A-6, and Chapter H: 4-H-1 thorough 4-H-34 Distribution APPHB MC:HU: APPHB #0002 (09/06) CVR LTR PAGE 1 OF 4

97 Auditing Policy and Procedures Handbook (APPHB) OLD CHAPTER A SARS Specific changes This chapter has been removed: Chapter A: SARS - State Automated Reconciliation System Information about SARS has been revised and moved to Volume 1, Chapter F. NEW HANDBOOK Handbook structure The APPHB structure is outlined below: Volume 1: Payment Processing and Reconciliation Chapter A: Control Valuables Chapter B: DCS Transportation and FAS Request for Transfer Chapter C: Direct Deposit Chapter D: EBT Chapter E: Reconcile Warrants, Direct Deposit and Cancels Chapter F: SARS Manual Chapter G: Stop Payments Chapter H: Vendor / Voucher Payments Chapter I: Warrant Issuances / Cancellations Volume 2: Reconciliation and Recovery Chapter A: Child Support - Foster Care Payments Chapter B: DA Child Support Requests Chapter C: Receipting and Banking Chapter D: Non-Sufficient Funds (NFS) Chapter E: Paying Fees Chapter F: Receipt Payments Chapter G: Refunding Chapter H: Tax Intercepts Chapter I: Releasing Liens, Mortgages and Satisfactions of Judgment Chapter J: Voiding a Payment Chapter K: Petty Cash Chapter L: HS Auditing Financial Order Modifications and Adjustments Chapter M: EBT Repayments and Agreements Chapter N: Stock Warrants and Envelopes Continued on next page APPHB #0002 (09/06) CVR LTR PAGE 2 OF 4

98 Auditing Policy and Procedures Handbook (APPHB), Continued Handbook structure, continued Volume 3: Reporting and Special Projects Chapter A: Assistance Claims Chapter B: FAS / Claim Reconciliation Chapter C: Statistical Reports Chapter D: 822 Report DPSS Register of County Authorizations Authorization of Changes to Master Payroll Volume 4: Special Programs Processing Chapter A: Daily Courier Chapter B: DCS Wrap Around Chapter C: DE 542 Chapter D: Levies Chapter E: MEDS Chapter F: Social Security Income (SSI) Repayments for General Relief (GR) Chapter G: Sub-Payee Chapter H: Substance Abuse and Crime Prevention Act of 2000 (Prop 36) Chapter I: 1099 Appendix Acronyms VOLUME 1 Specific changes The following chapter has been added to this volume: Chapter F: SARS This chapter contains a SARS overview with instructions for accessing and logging into the SARS system. VOLUME 2 Specific changes The following chapter has been added to this volume: Chapter A: Child Support - Foster Care Payments This chapter contains instructions for the processing of both pass-on and excess Child Support Foster Care warrants. Continued on next page APPHB #0002 (09/06) CVR LTR PAGE 3 OF 4

99 Auditing Policy and Procedures Handbook (APPHB), Continued VOLUME 3 Specific changes No chapters have been added to this volume at this time. VOLUME 4 Specific changes The following chapters have been added to this volume: Chapter A: Daily Courier This chapter contains instructions for the Courier including the daily pick-up and delivery schedules. Chapter H: Substance Abuse and Crime Prevention Act of 2000 (Prop 36) This chapter contains instructions for setting up and tracking Proposition 36 and PC 1210 payments obligated by drug offenders receiving drug treatment in San Bernardino County. APPHB #0002 (09/06) CVR LTR PAGE 4 OF 4

100 IIN's We are publishing all active IIN's. They are organized by publishing date from the newest to the oldest.