VI. Financial procedures

07/06/2018

D. Revolving fund checks

Revolving fund (RF) check issuance is strictly limited to providing immediate payment for one-time emergency needs which must be resolved 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.

1. Responsibilities

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.

The number of employees with access to the bulk and daily stock of RF checks, signature plate, and keys should be limited to the minimum necessary to maintain a separation of duties.

No one 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. These reviews will be conducted by a third party.

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. Only the most current DHS 285 for each function will be valid at any one time. If there is a change in personnel or authorized names, a new DHS 285 must be submitted immediately. Documents or requests received without the appropriate signature are 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 elect to share the check stock. The branch number/index code would be changed 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;

• 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.

4. Issuing checks

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 an error is made and the check needs to be voided, 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 not able to be cashed, AND the check information has not been 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;

· Retain the check stub in the branch office for six (6) years.