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) Unprocessable payment.

(1) An unprocessable payment is a payment that child support payment central (CSPC) is unable to deposit. An unprocessable payment includes, but is not limited to, a check that is not addressed to CSPC, a mutilated check, and a payment made payable to an entity or individual other than CSPC.

(2) CSPC will research an unprocessable payment for up to three business days. When the payment remains unprocessable after three business days, CSPC will mark "void" on the payment and return the payment to the remitter.

(C) Suspense payment.

(1) A suspense payment is a payment that is deposited by CSPC but is not posted. A suspense payment includes, but is not limited to, funds that are to be refunded to the remitter, a payment that does not contain at least two posting identifiers, and/or a balance remains after the obligations have been correctly posted .

(2) CSPC shall or the CSEA may research a suspense payment. When a payment remains in suspense following CSPC research, CSPC will forward the payment to payment analysis and account reconciliation (PAAR) for continued research and resolution.

(a) When the payment is resolved, the payment is posted.

(b) When the payment remains in suspense after four months and is not a return deposit item, PAAR will return the payment to the remitter. When the remitter is unknown, the payment will be held in suspense indefinitely as a permanently unresolved payment.

(D) Unidentified payment.

(1) An unidentified payment is a payment that has been deposited by CSPC and posted but, because of missing or invalid information, cannot be applied to the correct case/order combination or recoupment account. An unidentified payment will display on the unidentified payment list in the support enforcement tracking system (SETS).

(2) The CSEA shall review the unidentified payment list in SETS each business day in order to research and resolve an unidentified payment. Once an unidentified payment is resolved, the CSEA shall apply the payment to the correct case/order combination or recoupment account in SETS.

(E) Misapplied payment.

(1) A misapplied payment is a payment or a portion of a payment that has been deposited by CSPC, posted, and applied to the wrong case/order combination or recoupment account in SETS. A misapplied payment is the result of:

(a) A support disbursement unit (SDU) error, which results from a technical processing error or when the payment posted differs from the instructions provided. .

(b) A CSEA error, which results from a case setup error, a case update delay, an incorrect balance caused by a manual balance adjustment, or when the CSEA provides incorrect posting instructions.

A misapplied payment does not include a remitter error.

(2) The CSEA shall submit through SETS a request to PAAR for a financial correction to resolve a misapplied payment.

(3) PAAR shall 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 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.

(F) Incorrect disbursement.

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

(2) When an incorrect disbursement is identified, funds shall be transferred from a make-whole account to the OCS master concentration account and a payment shall subsequently be disbursed to the correct payee.

If an incorrect disbursement occurs because of a CSEA error the CSEA shall cover the fiscal impact.

(3) When there is an incorrect disbursement due to a CSEA error, the CSEA shall, within one business day of becoming aware of the error, initiate steps to make funds available to reimburse the make-whole account.

(a) The CSEA shall notify PAAR via e-mail that the process to correct the error has been initiated.

(b) Within thirty days of the date funds are transferred from the make-whole account to the OCS master concentration account, the CSEA shall reimburse the make-whole account by an amount equal to the amount of funds transferred from the make-whole account. Should the CSEA fail to reimburse the make-whole account within the thirty days, OCS will withhold from the monthly summary accounting report check an amount equal to the amount of funds transferred from the make-whole account.

(G) Return deposit item.

(1) A return deposit item (RDI) is a payment that has been deposited and is returned unpaid by the payor'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, CPSC 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 shall notify CSPC. If the CSEA fails to notify CSPC of a known stop payment the CSEA shall cover the fiscal impact of the RDI.

Effective: 09/15/2013
R.C. 119.032 review dates: 05/16/2013 and 09/01/2018
Promulgated Under: 119.03
Statutory Authority: 3121.71 , 3125.25
Rule Amplifies: 3121.43 , 3121.50 , 3123.81 , 3125.03
Prior Effective Dates: 10/1/85 (Emer), 1/1/86 (Emer), 4/1/86, 11/15/86, 12/1/87 (Emer), 2/29/88, 6/10/88, 12/20/88, 9/1/89 (Emer), 11/30/89, 8/1/90, 1/1/91, 4/1/92, 6/1/93, 12/1/94, 6/1/95, 7/1/96, 1/1/98, 4/24/00 (Emer), 7/10/00, 10/15/01, 5/8/03, 04/3/05, 01/15/08