5101:12-80-05.4. Exception item processing and resolution

(A) The purpose of this rule is to identify the responsibilities of the office of child support (OCS) and the child support enforcement agency (CSEA) to process an exception item in order to disburse the payment.

(B) Suspense payment.

(1) A suspense payment is a payment that is deposited and posted by child support payment central (CSPC) but is not applied to a support enforcement tracking system (SETS) case/order number, a recoupment account, or a recollection account. A suspense payment includes, but is not limited to, a payment that does not contain sufficient posting identifiers without conflict, and/or when a balance remains after the obligations have been correctly applied.

(2) The CSEA will research a suspense payment when requested by the state disbursement unit (SDU). The CSEA will reply with posting instructions within two business days of receiving the request from the SDU.

(C) Unidentified payment.

(1) An unidentified payment is a payment that has been deposited and posted by CSPC and forwarded to SETS, but cannot be applied systemically to the correct case/ order combination or recoupment account due to SETS system processing rules (e.g., case closed). An unidentified payment will display on the unidentified payment list in SETS.

(2) The CSEA will review the unidentified payment list in SETS each business day in order to research and resolve an unidentified payment. When the action needed to resolve the unidentified payment is determined, the CSEA will immediately take the necessary action (e.g., reopen case) and release the payment from the unidentified list.

(D) Misapplied payment.

(1) A misapplied payment is a payment or a portion of a payment that has been applied to the wrong case/order combination or recoupment account; or results in a misallocation. A misapplied payment is the result of:

(a) A SDU error, which results from a technical processing error or when the payment information forwarded from CSPC differs from the instructions provided; or

(b) A CSEA case management error, which includes, but is not limited to, a case setup error or delay, a case update error or delay, an incorrect balance caused by a manual balance adjustment, when the CSEA provides incorrect posting instructions, or when the CSEA fails to respond to the SDU in a timely manner.

(c) A misapplied payment does not include a remitter error.

(2) When a misapplied payment occurs due to a CSEA error, within two business days of the CSEA becoming aware of the error, the CSEA will take appropriate actions to resolve the misapplied payment. When necessary, the CSEA will submit through SETS a request to payment analysis and account reconciliation (PAAR) for a financial correction to resolve a misapplied payment.

(3) PAAR will complete a financial correction to resolve a misapplied payment when PAAR determines that a financial correction is necessary, either upon receipt of a financial correction request from the CSEA, or CSPC, or as a result of research conducted by PAAR. When PAAR denies a financial correction request, PAAR will notify the CSEA of the reason for denial.

(E) Incorrect disbursement.

(1) An incorrect disbursement occurs when a misapplied payment is disbursed.

(2) When an incorrect disbursement occurs because of an OCS error, funds will be transferred from a make-whole account to the OCS master concentration account and a payment will be disbursed to the correct payee.

(3) When an incorrect disbursement occurs because of a CSEA error, the CSEA will cover the fiscal impact. Unless alternate arrangements have been made with OCS, OCS will withhold from the monthly summary accounting report (SARP) check an amount equal to the amount of funds that was incorrectly disbursed, and a payment will be disbursed to the correct payee.

(F) Return deposit item.

(1) A return deposit item (RDI) is a payment that has been deposited and is returned unpaid by the remitter's financial institution as a result of situations including, but not limited to, a non-sufficient funds check, a check that lacks endorsement, or a check issued from a closed account.

(2) When CSPC deposits a payment that is subsequently returned unpaid by the remitter's financial institution, CSPC may take action to prevent receiving another RDI from the same remitter. These actions include, but are not limited to, labeling the remitter's account number as a derogatory item, no longer accepting personal or business checks from the remitter, requiring the remitter to make subsequent payments in the form of certified check, money order, or cashiers check, and sending the RDI to the attorney general or a collection agency for recovery.

(3) When the CSEA has knowledge that the remitter has requested or may request a stop payment on a check issued to CSPC, the CSEA will notify CSPC by email to the SDU finance mailbox. If the CSEA fails to notify CSPC of a known stop payment or to comply with payment processsing protocols as indicated on the JFS 07736, "Child Support Enforcement Agency Payment Processing Declaration" (effective or revised effective date as identified in rule 5101:12-80-99 of the Administrative Code), which results in an RDI, the CSEA will cover the fiscal impact of the RDI.

Replaces: 5101:12-80- 05.4

Effective: 2/15/2020
Five Year Review (FYR) Dates: 02/15/2025
Promulgated Under: 119.03
Statutory Authority: 3125.25, 3121.71
Rule Amplifies: 3121.43, 3125.03, 3123.81, 3121.50
Prior Effective Dates: 10/01/1985 (Emer.), 01/01/1986 (Emer.), 04/01/1986, 11/15/1986, 12/01/1987 (Emer.), 02/29/1988, 06/10/1988, 12/20/1988, 09/01/1989 (Emer.), 11/30/1989, 08/01/1990, 01/01/1991, 04/01/1992, 06/01/1993, 12/01/1994, 06/01/1995, 07/01/1996, 01/01/1998, 04/24/2000 (Emer.), 07/10/2000, 10/15/2001, 05/08/2003, 04/03/2005, 01/15/2008, 09/15/2013