Appendix 1565.6: Outstanding Items Procedures
CPS May 2016
When a check reaches the 90th day without being reconciled (meaning it has not processed through the bank), the accounts payable (AP) accountant voids the check.
Before voiding the check, the AP accountant follows the procedures listed below.
Checks
1. During the bank statement reconciliation process, the AP accountant notes any checks that have not processed and are dated 60 or more days earlier.
2. The AP accountant contacts the foster care provider to see if they are in possession of the check.
• If the provider has the check, the AP accountant informs them the check must be deposited within the next few days (before the 90th day – the AP accountant gives them the exact date of the check) or the check will be voided.
• If the provider has lost the check, or if it has been destroyed or not received, the AP accountant has the provider complete Form 8104 Certification for Children’s Income Account Checks Lost, Destroyed, or Not Received. The provider must sign the form; a faxed signature is acceptable.
3. Upon receipt of Form 8104, the AP accountant contacts the bank and places a stop payment on the check. The AP accountant makes a copy of the voided check or check stub that includes the names of children, dates of service, and amounts.
5. The AP accountant voids the check in IMPACT.
6. Upon the next billing cycle, the AP accountant reissues the check using the information from the voided check.
7. If no contact can be made with provider, the AP accountant voids the check after 90 days. The AP accountant contacts state office with all information for decision on disbursement.
Negative Balances
IMPACT has a feature that prevents a negative balance in the child’s checking account register. However, there are instances when a child’s account might have a negative balance. This may happen when there is a direct deposit reversal, when a non-sufficient fund item is returned, or when the bank assesses fees. If this occurs, the transaction is recorded in the child’s register using one of the following categories:
• Direct Deposit Reversal – Debit only
• NSF Item Returned – Debit only
• Banking Fees – Debit only
• Bank Posting Error – Debit or Credit
• Other – Debit or Credit
The procedures to enter a transaction that result in a negative balance are as follows:
• Select Debit as the transaction type and enter the amount of the debit.
• Click on the Category drop-down box.
• A prompt appears stating Entered Amount cannot be more than the Current Available Balance. Click OK.
• From the Category drop-down box, select the appropriate description. If a category other than the ones listed above is selected, IMPACT will not save the transaction.
• Enter the date. Save.
• Change the status of the transaction to Processed.
Both the Current Balance and the Current Available Balance will reflect the negative entry. When an account has a negative balance, the AP accountant reports the information and the reason for the negative balance to the team lead.
Voided Physical Checks
If a check is marked void for any reason, the CIA accountant staples the check to the back of the check stub and:
• indicates on the face of the stub the date the check was voided;
• includes a reason the check was voided if the check was returned by the payee; and
• records the check number as Void in IMPACT.
If a check is missing, the accounts payable accountant:
• considers checks void after 90 days;
• reissues the check no sooner than 14 calendar days from the date of issue if the check is lost, destroyed, or never received by the payee;
• makes a copy of the signed Form 8104 and staples it to the check stub;
• places a stop-payment on the missing check before reissuing;
• writes the new check number and check date on the voided stub for auditing purposes;
• records the check number as Void in IMPACT; and
• record the check number on the Voided Check Log on the shared drive.
Lump Sum Distribution
When an award letter is received from the SSI coordinator, the AP accountant uses Form 8107 Lump Sum Distribution Checklist to track the proper distribution of funds.
If there are undesignated funds after nine months from date of receipt, the AP accountant creates a check in the amount of excess funds payable to SSA. The check is given to the SSI coordinator for proper handling.
Bank Statement Reconciliation
The AP accountant reconciles the bank statement with the data in IMPACT and gives the Regional CIA Reconciliation Report, the CIA Balance Report and the bank statement to the team lead for approval.