V. Financial procedures
09/18/2019
Revolving
fund (RF) check issuance is limited to providing immediate payment to resolve one-time
emergency in less than one business day, such as those related to immediate
health and safety concerns.
RF
checks may only be issued for program-related payments for Area Agency on Aging
(AAA or DHS consumers or for purchases from the district donated funds account.
·
See
the Business Procedures Receiving and Accessing Donated Funds intranet page for
information on donated funds.
Support
staff is responsible for the security, storage, and accounting of the blank RF
check stock. Issuance of RF checks as documented on a signed and authorized MSC 437, Authorization of Cash Payment, or
other DHS approved payment request form, is also the responsibility of support
staff.
RF check
stock must be secured in a locking safe or bar lock file cabinet, separate from
the check-signing machine, check-signing machine keys, signature plate, and the
MSC 249, Stock Control Log at all times.
The
responsibility for the issuance of a revolving fund (RF) check are as follows:
Case manager or case worker:
·
Determine
eligibility for payment of benefit;
·
Complete
a payment document such as MSC 437, Authorization of Cash Payment;
·
Obtain
approval for payment from a manager or designee with appropriate MSC 286, Delegated Signature Authorization.
Support staff:
·
Security,
storage, and accounting of blank RF check stock, signature plate, and keys;
·
Issuance
of RF checks.
Manager:
·
Designate
separate custodians of the blank check stock, signature plate, insertion key,
and the check-signing machine and activation key;
·
Complete
a DHS 784, APD
Individual User Profile and send the form to the RACF Chief Data Steward to
assign the designated staff person to the appropriate user group;
·
Secure
check stock, signature plate, and keys with limited access.
Limit the
number of employees with access to the bulk and daily stock of RF checks,
signature plate, and keys to the minimum necessary to maintain a separation of
duties.
No
employee should have access to the check stock, signature plate, and insertion
key and activation key.
In small
branches where this separation of duties may not be possible, the local office
must conduct random monthly reviews of the process. A third party will conduct
these reviews.
The form
has two purposes:
·
For
a manager to delegate specific issuing, ordering, or receiving authority to one
or more persons;
·
As
state office verification of authority when a document is issued, ordered, or
received.
o
Only
the most current DHS 285 for each function will be valid at any one
time;
o
If
there is a change in personnel or authorized names, a new DHS 285 must be submitted immediately;
o
Documents
or requests received without appropriate signatures will be returned by DHS.
2. Ordering and
receiving check stock
Each
issuance site should order their own supply of revolving fund (RF) checks. If a
site houses Aging and People with Disability and Self Sufficiency staff, they
may choose to share the check stock. Change the branch number/index code to
identify the branch and case number relationship for the check when issued.
Authorization
for an employee to order or to receive revolving fund (RF) check stock must be
made by a manager through a DHS 285, Authorization
& Signature Card for Negotiable Documents Authority.
·
A
minimum of two (2) employees in each office should be authorized to perform
these separate duties;
·
Authorization
to order and to receive RF check stock cannot be given to the same employee.
A new DHS 285, Authorization
& Signature Card for Negotiable Documents Authority must be completed
when there is a change in personnel authorized to order or to receive RF
checks. Retain a copy of the current DHS 285 in a branch file.
Each
completed DHS 285 supersedes the prior form and renders prior
versions void. Send the original DHS 285 to:
DHS/OHA
Distribution and Storage Service
3421 Del
Webb Avenue NE
Sale, OR 97301
Physical
inventory.
A physical inventory (count) shall be done once a month on a random date and
prior to reordering any additional check stock.
The
physical inventory must be done by someone not authorized to issue revolving
fund checks. If this is impossible due to field office size, the physical count
must be completed by two persons and the MSC 249 initialed or signed by both.
Record
date of the physical inventory, the number of revolving fund checks on hand,
and signature or initials of person(s) responsible for the count on the log.
If there
is a discrepancy, other than an addition/subtraction error, report it
immediately to the appropriate manager who will in turn report the discrepancy
to the appropriate personnel in Central Office
Ordering
RF check stock.
Field offices should order a 3-4 month supply based on historic need. Order a
new supply when the stock on hand is down to a one-month supply.
Revolving
fund (RF) checks are ordered by completing a DHS 289 Request for and
Transmittal of Forms Receipt. Please follow guidelines in procedure DHS-050-003-01 for ordering check stock.
When the
revolving check stock is received in the branch:
·
Review
and compare the check numbers and quantity indicated on the DHS 289 as shipped
to the branch;
·
Count
the number of RF checks and compare the total number of checks to the quantity
indicated as shipped on the DHS 289;
·
Sign
the DHS 289 confirming the RF checks were received;
·
Retain
the original of the DHS 289 in the branch file for no less than six (6) years
as an audit trail of who signed for the checks.
Stock control log
After
confirming there are no discrepancies with the revolving fund (RF) checks
received, the bulk stock must be added to the MSC 249, Stock Control Log.
·
Record
the date the cards are added to the bulk stock and mark the RF checks box;
·
Record
the first check number, the beginning of series, in the From Serial #/Check # column;
·
Record
the last check number, the end of series, in the To Serial#/Check # column;
o
If
more than one sequence of check numbers is received, they must be recorded as
separate line items;
·
Enter
the number of checks received in the Total
column;
·
Record
initials of the employee who confirmed checks were received and added to stock
and the witness in the Initials
column;
·
Add
the number of RF checks received to the number of checks listed in the Running Balance column. Record the new
total;
·
Secure
the revolving fund checks.
o
Note: An inventory must be completed when bulk RF
check stock is received. See Inventory below.
3. Removing and
returning daily stock
Removing
checks.
Each morning, a daily supply of revolving fund (RF) checks may be removed from
the bulk stock as needed based on typical local demand.
When
checks are removed from the bulk stock/safe, the MSC 249, Stock
Control Log must be completed as follows:
·
Record
the date the checks are removed;
·
Record
the serial number of the first check (beginning of series) in the From
Serial #/Check # column;
·
Record
the serial number of the last check (end of series) in the To
Serial#/Check # column;
·
Enter
the total number of checks removed in the Total column;
·
Record
the initials of the staff person removing and the staff person receiving stock
from the safe in the Initials column.
Returning
unused revolving fund (RF) check stock. Stock of RF checks unused at the end of
each day, must be returned to the bulk stock in the locking safe or bar lock
file cabinet and logged back in on the MSC 249, Stock
Control Log.
On the
same line of the MSC 249 completed when the stock was removed that
morning, under the Stock returned to safe columns:
·
Record
the serial number of the first unused check in the From Serial #/Check #
column;
·
Record
the serial number of the last unused check in the To
Serial #/Check # column;
·
Enter
the total number of checks returned to the bulk stock in the Total
column;
·
Record
the initials of the staff person returning and the staff person receiving stock
to the safe in the Initials column;
·
Record
the total number of checks issued that day in the Stock Issued column;
·
Subtract
the number of checks issued from the Running Balance column;
·
Record
the new total.
The
check issuer must positively identify the consumer before issuing a revolving
fund check. Positive identification means the consumer may present a picture ID
or, if this is not available, the issuer must use an alternative means to
assure them of the correct identity of the individual.
·
Option: Preparer's signature line can be utilized
for issuer if additional control is required.
Complete
the following steps to issue a revolving fund (RF) check.
Data
entry.
RF check software must be installed on the computer to issue checks. The
software will appear as an icon on the desktop.
To
access the revolving fund (RF) check program, double click on the RF check
icon. The log-in box will appear. Click ok; no password is needed.
Click on
the arrow at bottom of screen to open a blank screen and complete the following
fields:
·
Phone number:
Area code and phone number;
·
Branch cost center: 4 digits (local branch);
·
Date:
Six (6) digit format of mm/dd/yy;
·
Check number:
Nine (9) digit RF check number from the check stock;
·
Amount: Must include decimal point, such as 999.00;
·
Document type:
Click on the arrow. The most common document is the MSC 437, Authorization
of Cash Payment;
·
Reason code:
Two (2)-digit pay reason code;
·
Payment Type;
·
Social Security Number;
·
Program number:
Two (2) digit program code;
·
Cost center: First two (2) digits of the cost center. For example, 16
for branch 1611;
·
CM case number:
Self-checking digit, if this payment is for a non-SNAP case;
·
Worker ID:
Two (2)-digit load code;
·
First Name: Consumer's first
name and middle initial;
·
Last Name:
Consumer's last name;
·
Address 1:
Consumer's residence address;
·
Address 2:
Consumer's mailing address;
·
City, state, zip;
·
Memo: Reason for check such as medical transportation;
·
Preparer's Name:
Worker’s first and last name.
o
Note: For Dual/Rep Payee or Other Payee, use
Address 1 for the other name. For example, one name payee (such as U-Haul), use
only the Last Name field and use Address 1 to enter For: consumer’s name.
Checks
are issued in a first in-first out (FIFO) sequence. To the extent possible, all
of a previous shipment should be issued before any of the new supply is used.
Preview
report and printing.
Click to preview and check for errors. Click the square in upper right to
enlarge the box to a full screen, and press escape or click the X to exit.
To print
a sample check, click on the box with the printer picture. Place a blank sheet
of paper in the manual feed tray of the printer and click on the printer button.
To
printing the actual check, manually feed the check stock into the printer’s
feed tray.
·
Test
your printer to determine how to place the check stock;
·
If
the check needs to be voided due to an error, type Voided Check in place
of the Payee Name on the computer
screen, then move to next entry screen to start over;
Printed
checks must be imprinted with the name of the Office of Financial Services
(OFS) Controller using the signature plate; see instruction section F, Check signing machine.
5. Canceling and voiding
checks
Canceling
checks.
If the revolving fund (RF) check needs to be canceled:
·
Stamp
CANCEL over the seal, the signature,
and on the check stub;
o
DO
NOT cover the amount, the case number, or any other identifying information;
·
Enter
the canceled RF check information into SPL5.
Send the
canceled check to Salem. Canceled checks are returned to Salem Central Office
using the form MSC 297, Canceled
Check Transmittal form. Complete the MSC 297 as instructed on the form and attach the
canceled check to the form.
Mail the
completed MSC 297 and checks to:
Department of Human
Services
IC/Forgery Services
500 Summer St. NE,
E85
Salem, OR 97301-1082
Return
the canceled RF check only. Do not return the RF check stub. Keep all RF stubs
in branch office for no less than six (6) years.
Voiding
checks
Void RF
checks for either of the following reasons:
·
There
is an error on the payee or the amount line;
·
The
check is ruined or cannot be cashed, AND the check information is not entered
into SPL5.
Use the
following procedure to void the RF check:
·
Write
or stamp VOID on check and on the check stub.
·
Return
the voided check only once a month with the Revolving
Fund Check log;
o
Retain
the check stub in the branch office for six (6) years.