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STATE OF GEORGIA CHILD SUPPORT ENFORCEMENT ACCOUNTING PROCEDURE PROCEDURE NUMBER: 700 PROCEDURE NAME: REVERSALS OBJECTIVE: To correct payments that distributed incorrectly on a case(s) or account(s). There are no timeframes on requesting reversals. If the information is available, a receipt can be reversed from any time period to correct the problem. Available information is any information that is retrievable from $tars or SUCCESS. REQUIRED CASE CONDITIONS: Determination has been made that receipt(s) applied incorrectly to a case(s) or account(s). Special Circumstances: When employers send payments at different times during the month, do not start reversal process until beginning of the next month or after the next charging date on the current account. You should also complete an arrears and interest calculator, manual pay sheet and/or pull the historical payments to verify the payment is due. Additional payments may come in to satisfy current due and a reversal may not be necessary. ACTION: 700.01 Day One of Reversal Process: When a payment distributed to the wrong case or accounts, the payment must be reversed in order to correct. A reversal must be requested when the Agent of the injured party becomes aware of a problem. An “injured party” is defined as a person who did not receive part or all of a particular child support payment(s) to which they were entitled. The Agent responsible for the case of the injured party will take the lead in resolving the problem within 48 hours for urgent (complaint) request, 72 hours for regular request or 7 to 10 days for special “clean up” projects. All urgent request and clean up project request should be noted on the reversal form and documented via a $TARS case action log on all cases involved. They must keep all other Agent(s) involved informed, in writing, of whatever action(s) they take to resolve the problem. Each action must be documented via a $TARS case action log on all cases involved. If multiple NCP’s are involved, the copy and paste feature available in $TARS will help with additional documentation so each case is documented. Exception to “Injured Party Rule”: FSR misposting. The office that discovers the error will take the lead in the reversal process (see 700.06).

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All reversal requests and screen prints should be reviewed thoroughly by accounting staff before reversing. If reversal form is incomplete, screen prints are missing or the Paraprofessional Accountant (Parapro)/Financial Agent has a question concerning the reversal, DO NOT REVERSE until discussing with the approving authority. Review accounts to ensure correct accounts are open and balances are accurate. According to Federal Guidelines, there should be two employees involved with true account balance changes. One employee should request the change and a supervisor/manager or designee to approve it. If a true account balance change is needed, the requestor should submit an account balance change request form (Form.ABA) to the approver and the approver will forward to appropriate staff to be processed. In some situations before, during or after the reversal process, the Parapro may need to “move” a balance from one account to another account. Moving a balance from one account to another is not considered a true balance change; therefore when instructed the Parapro can make this type of adjustment, refer to Procedure 500 in Statewide Accounting Manual. The reversal request should be processed within 48 hours for urgent (complaint) request, 72 hours for regular request or 7 to 10 days for special “clean up” projects. All urgent request and clean up project request should be noted on the reversal form and documented via a $TARS case action log When to Manually Post: If the payment is being reversed due to case type/subtype error the monies will have to be manually applied to the correct account type. You will need to correct the case type / subtype, set up the correct accounts and move and /or adjust balances. If the payment is being reversed because there was incorrect or no GAP information on one or more of the cases the TANF/GAP screen will need to be updated with the correct Grant and GAP amounts, reverse the receipt and use Manual distribution to the PC or PA account. If the receipt initially applied to the PC account manually post to the PC account. If the receipt initially applied to the PA account manually post to the PA account. $TARS will now retro from the PC account if the case type is AF. Multiple and/or Single Case Reversals On cases where your case type changes in the middle of the month and monies distributed incorrectly prior to the date the system documents the case type change, you can reverse the receipt and manually post to the correct account. EXAMPLE: Payment is received with date of collection as 9/7/01; system interfaced on 9/17/01 and changed the case from AF/AR to NA/FR; when you reverse the receipt and manually post to the correct account, this receipt will distribute as Non TANF monies. The “Specify Pro-ration” function in the reversal process works and should be utilized. If your case type is correct, the system will correctly apply the amount you have specified for each case to the appropriate accounts.

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Use one of the below description codes in the description field when reversing the receipt. Do not enter anything else except the two-letter code in that field. Always document the case action log when OT is used. Description Code: AB CC CE DC DN DO EC EE EP FS IA IN IR IS NC ND OT PP SV TA TG TH TP UA UC UE YJ Accounts Balance Error Change of Custodian or Correct Custodian ID Child Emancipated, Apply to NCP’s Other Case or Refund to NCP Deceased Custodian Deceased NCP NCP Refund Due Other Cases E Card / ACS Reversal – for CSCA Use Only Employer Error Early Payment FSR Error Interstate Check Returned, Bad Address/FIPS Interest Reversal Interstate Refund (from another state) Interface/System Error Non Cooperative Custodian Non IV-D Case Not Set Up When Monies Distributed Other Portal Payment Reversal – for CSCA Use Only Auto Check Cancellation IRS Tax Adjustments TANF/GAP Error Tax Hearing Reversal Refund To Third Party Incorrect/No UPA On System Unlocated Custodian Error (Wrong Account Set Up, Etc.) $ Due YJ (Court Cost) Account

Note: If any part of the receipt did not distribute, as it should have, contact Region Financial Manager for further instructions. If an error occurs and the receipt needs to be reversed again, make a before and after screen-print of the account query screen. The reverse payment function places the funds in unidentified receipts. The system will not allow a portion of the receipt to be reversed. The entire receipt must be reversed. After the receipt is reversed, the receipt must then be posted through collections processing, Identify Unidentified Receipts. When the receipt is reversed, $TARS will: A. Erase the Client ID from the receipt. B. Mark the payment as an unidentified receipt with a reason code to identify it from other unidentified receipts. C. Check the escrow funds and if found, remove them. D. Create a recoupment account if a check was issued. E. Record the receipt number and reason code in the Financial Case Action Log.
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After receipt has been reversed, identify the receipt in a non-money batch. Note: If the NCP received a refund from the original receipt distribution, an NCP recoupment will set up when the receipt is reversed. This in-house recoupment will be satisfied on day one of the Reversal Process. The NCP recoupment account will appear when manual distribution is selected along with the other accounts tied to the NCP ID. There will only be a True NCP recoupment if the receipt initially posted to an incorrect NCP’s case or if the error was a result of a FSR misposting. NCP recoupments will show on the Query Account Screen. The case action log is automatically documented by $tars on cases the receipt distributed to when the receipt is reversed. The reversal code is noted in the case action log at that time. Research documentation should be clear enough so that anyone reading the case action log could determine the reason for the reversal. Additional documentation by the parapro on day one of the reversal process is not required except in instances where the entire receipt amount is in NCP refund (R escrow). 700.02 Day Two of Reversal Process: When day one of the reversal is complete, review the payment summary, and case action log to determine if payment distributed as intended. Before money is dispositioned, check distribution of all cases. A review of account balances MUST be done to ensure the balances are correct. If this step is not done, it could affect pay histories, tax offset and distribution. If any part of the receipt did not distribute, as it should have, contact Region Financial Manager for further instructions. Do not reverse again. DO NOT DISPOSITION FROM ESCROW UNLESS “ALL” CASES ARE CORRECT. Dispositioning from escrow “locks” the receipt and the system will not allow the receipt to be reversed again. Note: If an error occurs and the receipt needs to be reversed again, make a before and after screen-print of the account query screen. If the receipt is dispositioned from escrow and then it’s discovered the CP is due additional funds, the original “locked” receipt can’t be reversed again. Create a YY account using the CP’s ID; complete the payee information; DO NOT ATTACH TO A SUPPORT ORDER; and add the balance due the CP. Reverse the new receipt (the one created when funds were dispositioned from escrow), post the amount due to the recoupment account and post the remaining amount (the additional funds the CP is due) to the YY account. After receipt goes through distribution, release funds from escrow to the CP. NOTE: funds from the YY account will disburse to the CP in the form of a paper check. Be sure to document the case action log to tie the “locked” receipt and the new receipt together since the new receipt will not show on the payment summary with the “locked” receipt. This process will not update P escrow on TANF cases.

Note: Follow region policy and contact your Region Financial Manager before processing an E batch (see 700.05).

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1. No recoupment account involved: Custodial Parent (CP) is due money. Approve the receipt and the system will document the case action log. 2. In-House recoupment account involved: Custodial Parent (CP) has already received a portion of the receipt and the reversal was needed to distribute the remainder to the CP. This is an in-house recoupment. Recoup the portion the CP received (inhouse), approve the remainder of the receipt due the CP and the system will document the case action log. 3. True recoupment account involved: a receipt applied to an incorrect case and the Custodial Parent received money in error. The reversal was needed to distribute the receipt to the correct case(s). Approve the receipt due the CP on the correct case(s); verify the correct recoupment notification letter was mailed and verify the case action log is documented on all cases involved.

4. Query accounts on all cases involved in the reversal for the recoupment balance prior to recouping. Note: If you reverse a receipt that distributed to out-of-state or Foster Care accounts, the receipt will be in escrow under the NCP’s ID. Note: You may NOT have to recoup the entire receipt. Enter the amount of the recoupment not the amount of the receipt and not the amount in escrow. 700.03 TRUE RECOUPMENTS – CP, refer to Procedure 611 – Agents’ Manual/Procedure 1000 – Statewide Accounting Manual. OVERPAYMENT TO CP RM ACCOUNTS If you disposition too much money to a CP RM account or find a CP RM account with a credit (negative) balance: you will need to set up a YY account under the CP’s ID: You do Not Attach the YY account to a Support Order. After receipt goes through distribution, release funds from escrow to the CP. INCORRECT NCP REFUNDS A payment was received by Family Support Registry (FSR) and was processed through $TARS. The NCP receives either all or part of the payment back as a refund. At a later date, the Agent discovers that this payment was sent in by another NCP and misposted. This receipt will need to reversed and reposted back to the correct case. Note: This process has to be approved by the Region Financial Manager, before processing. A reversal request will be written and submitted to the accounting staff to process, refer to Procedure 635 Agents’ Manual. This will cause a true recoupment against the incorrect NCP; refer to Procedure 611 – Agents’ Manual/Procedure 1000 – Statewide Accounting Manual.
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If the recoupment account is a result of a validated FSR misposting, send appropriate recoupment notification letter (Form.FLA). This NCP recoupment account WILL NOT be tied to a separate support order. If the recoupment account is not a result of a validated FSR error, the recoupment account will need to be zeroed; a true recoupment account tied to a separate support order will need to be created against the NCP and send appropriate recoupment notification letter (Form.FRM) THIRD PARTY REFUNDS TO EMPLOYERS Payments submitted by an employer in error must be processed as a Third Party Refund to the employer. This is done by setting up a “YY” account on the NCP’s case. If the payment was submitted on the correct NCP but it was a payment the employer sent to OCSE in error, this procedure is applicable. If the receipt initially distributed to reimbursement and was retained, you will reverse the receipt and repost to the “YY” account. No recoupment account will be created since the receipt was retained. If the receipt initially disbursed funds to the family, this will result in a true recoupment. You will not reverse the receipt but will create a new receipt for the refund through an E batch. The NCP received credit for this payment so the recoupment will be set up against the NCP. A true recoupment account tied to a separate support order will need to be created against the NCP; refer to Procedure 611 – Agents’ Manual/Procedure 1000 – Statewide Accounting Manual. Example: Employer submitted a payment for Alan Jackson. Employer realized Alan Jackson is no longer employed with them. Employer requests the return of the payment. The payment distributed to Alan Jackson’s case and the family received the money. A new receipt for the amount of money the family originally received should be created through an E batch and posted to the YY account to refund to the employer. A RM account will be set up under the NCP’s ID for the amount of money that is being refunded to the employer.

Note: Follow region policy and contact your Region Financial Manager before processing an E batch (see 700.05). OUT OF STATE CASES If an out-of-state jurisdiction receives money they should not have received, the Agent should attempt to recoup such money by contacting the state that received the money in error. The error could be due to misposted collections, incorrect data on the system or other agency error. Upon determination that a recoupment is necessary, the Agent of the injured client will take the lead in resolving the problem. They will keep any other Agent(s) involved informed, in writing, of all action(s) taken. The case action log will be documented on all cases involved. The Agent will determine how the payment distributed on the case. If an incorrect jurisdiction received the money, refer to Procedure 611 – Agents’ Manual/Procedure 1000 – Statewide Accounting Manual. Notify Accounting to place an 18MT 07 700-6 09/2005

day hold and add recoupment instructions in the special instructions field on the NCP’s Financial Information Screen. This will hold all monies paid by the NCP, and by using 18 days, this will distinguish this from other types of holds. The local office will need to monitor daily for any money in escrow. Once money shows in escrow for the case involved, Accounting may disposition the amount necessary to the recoupment account. All other money held should be released to the NCP’s other cases. Example: The FIPS Code on the account was incorrect and monies were sent to Arkansas instead of Ohio. The account information would be corrected; contact made with Arkansas to return the money sent to them in error; the receipt would be reversed and re-posted. Arkansas would be responsible for returning the entire amount we sent them in error. Note: If the money is in Unidentified, Funds in Error, Escrow or Reimbursement, a recoupment is not set up by $TARS. Instead, proceed to retrieve funds from these locations and document the case action log on all cases involved. Note: NEVER close a case, which contain either an unresolved dishonored payment or an uncollected recoupment. Use whatever legal means necessary to recover these monies. $tars will automatically document the case action when money is applied to recoupment accounts, indicating the new receipt number and the balance of the recoupment account. Additional documentation is not required unless required by your Region Financial Manager. Follow-up to ensure a check has cut to the correct CP and recoupment account balance is correct. Complete the bottom portion of the reversal request form and file with reports 700.04 Reversals should NOT be requested in the following situations:  Payment posted by SSN and split to all NCP’s cases. Exception: If monies submitted by the employer include the deductions for the IDO on a Non IV-D case, then that case is entitled to its share of the money. The IDO is submitted to the employer prior to FCSU getting a copy of the order, which means the employer submits the monies before FCSU gets the case registered on the system. If agency error and monies submitted by the employer include the deductions for the IDO on an IV-D case, then that case is entitled to its share of the money. Exception: NCP paying Non IV-D case direct and money intended for IV-D case splits between both cases. Exception: If a payment that distributed by SSN on the system which was deducted for a Spousal Support only case. We will reverse this receipt and apply the amount deducted for the Spousal Support to the Spousal Support only case.  Refund check is generated to correct NCP.

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 Overpayment to family from the NCP. We do not reverse receipts and refund monies to the NCP. If reversals are received that fit the above criteria, do not process before approval from your Region Financial Manager. Note: Do not change the date of collection unless there is documentation from the employer verifying that the monies they submitted were for a different date. Contact Region Financial Manager for assistance.

700.05 Deleting Receipts / E Batches THE REGION FINANCIAL MANAGER MUST APPROVE THE DELETION OF ALL RECEIPTS THAT HAVE GONE THROUGH DISTRIBUTION. THE REGION FINANCIAL MANAGER MUST PROCESS OR APPROVE ALL E BATCHES. NO EXCEPTIONS. FOLLOW REGION POLICY AND CONTACT YOUR REGION FINANCIAL MANAGER BEFORE DELETING A RECEIPT OR PROCESSING AN E BATCH. Print Receipt and the Receipt Distribution Review Payment Summary; determine if receipt generated a check Review Historical Check Inquiry and/or contact OFS when necessary to determine if all checks that distributed from the receipt have cleared the bank If any check is determined to be outstanding, you will NOT proceed any further. Note: No Receipt is to be deleted until all associated checks have cleared the bank or the funds are in Escrow. If monies have been erroneously posted to one NCP’s case and the check has not cleared the bank but the monies are, in fact, due multiple NCP’s cases you should: Follow region policy concerning E batches. The Regional Financial Manager for your region should approve E batches before they are processed in your local office. Once monies that distributed from the original receipt have cleared the bank or been returned to escrow the original receipt will be reversed and deleted using the procedure above and a new receipt entered for the correct amount due that case. 700.06 Processing FSR Errors The following steps are to be followed when staff discovers FSR posting errors. The person/office who discovers the error will: 1. Review the FSR error log to see if the error has been reported. * 2. If the error has not been reported, list the error on the FSR error log completing ALL fields. See Appendix 700 for step-by-step directions on completing the FSR Error Log.
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3. Document the CAL of all cases involved; those it posted to in error and those it should be reposted to. 4. If you determine there are more than 3 cases involved in the error, the payment/check information should be forwarded to Dave Langley via GroupWise email and SMI will QA the entire check. After the check has been reviewed by SMI, OCSE staff at SMI will log the errors in the FSR error log, document the case action log on all cases involved and forward the Request for Adjustment form to CSCA for processing. ** 5. If there are 3 or fewer cases involved enter the data on the Request for Adjustment Form and process the reversal. a. If receipts are attached to an office number other than yours: b. Assign staff to the appropriate office number c. Open a Non Money Batch d. Immediately e-mail the financial contact person in the office that you have opened batch # xxx in order to process error corrections and attach the Request for Adjustment Form, copying your Region Financial Manager and the Financial Manager that will be affected by the correction. e. Reverse receipts (enter your user ID, office # and the date in the note field on the receipt) f. Close and transfer the batch g. Pull the daily journal and attach to the GroupWise email with the info to Office 2. All transactions have to be complete by the 4 p.m. deadline. After distribution, update the Request for Adjustment form with the appropriate Loss Adjustment Amounts. h. Re-assign staff to the appropriate office number 6. Review FSR error log for validation that error is SMI’s or determine that it is not and update with Loss Adjustment Amounts accordingly. 7. Send appropriate recoupment letter 8. E-mail copy of the Request for Adjustment, Daily Journal and Recoupment letter to the appropriate office(s) for their records. 9. CSCA will post Loss Adjustment Funds to the Recoupment Accounts. 10. All steps of the reversal process; release the receipt from escrow or to post to in-house recoupment should be completed by the office that processed the reversal. If releasing the receipt from escrow, approve the receipt and the case action log will be documented by the system. If posting to an in-house recoupment: a. If receipts are attached to an office number other than yours: b. Assign staff to the appropriate office number c. Open a Non Money Batch d. Immediately e-mail the financial contact person in the office that you have opened batch # xxx in order to complete day 2 of the error corrections. Copy your Region Financial Manager and the Financial Manager that will be affected.
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e. Disposition the portion of the receipt due the in-house recoupment. f. Close and transfer the batch g. Pull the daily journal and attach to the GroupWise email with the info to Office 2. All transactions have to be complete by the 4 p.m. deadline. h. Re-assign staff to the appropriate office number * Note: If the error is already listed on the FSR error log, questions concerning the corrections of the error should be sent to the person who logged the error. ** Note: Errors involving more than 3 cases will be processed by CSCA. We will follow Step 4.

Multiple Case Reversal Form Statewide Adjustment Form E-Batch Reversal Form FSR Posting Error Reversal Form Request for Adjustment Form

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