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