This business process flow shows the high level steps utilized to collect on a recovery account after it has been activated.
Recovery accounts can be established by EES Eligibility Staff or PPS Staff. After the recovery account is set up, the agency has many ways to recover overpayments such as payments made by a debtor, a recoupment of active benefits, the use of expunged benefits, etc. A recovery account in ‘Active’, ‘Suspended’, or ‘Pending Fraud Prosecution’ status is routinely picked up by the batches noted in this process until the recovery account is ‘Closed’ or ‘Terminated’.
NOTE: See the EBT Repayment Process for guidance on a Consumer’s request to make a recovery account payment using funds from their EBT card.
Expunged Benefits (EES Only):
Unused benefits are removed or aged-off from the Consumer’s EBT card after a period of time. Unused Food Assistance benefits are removed after 12 months of inactivity. Unused Child Care and/or Cash benefits are removed within 90 days from the date of issuance. The EBT vendor removes the benefits from EBT after the noted period of inactivity and sends a file to KEES via the EBT Aged-Off Benefit Interface. This creates a record on the Aged Off and Expungement Detail page in KEES. When the consumer has a recovery account in a status of ‘Active’ or ‘Pending’ with a status reason of ‘Pending Fraud Prosecution’, the expunged benefits are applied to the recovery account via the Expungement Batch. This batch also sends the V831: Unused EBT Benefits Applied to Claim Form to the consumer to notify them that expunged benefits have been applied to their recovery account balance. The Active recovery accounts are closed via the Recovery Account Close Batch if the balance reaches $0; otherwise it remains in its original status of ‘Active’ or ‘Pending’. This batch does not automatically close recovery accounts in ‘Pending’ status with a status reason of ‘Pending Fraud Prosecution’. These recovery accounts will have to be monitored by CCU and closed manually if needed.
NOTE: See the Recovery Account Refund Process for information on recovery accounts with a negative balance.
Terminated Recovery Accounts:
The Recovery Account Terminate Batch looks at recovery accounts in an ‘Active’ or ‘Suspended’ status. Recovery accounts can be placed in a ‘Suspended’ status by CCU when the Responsible Party of the recovery account files for bankruptcy or when they cannot be located. When the recovery account has not received payment for 10 years or when the balance is less than $1.00, the Recovery Account Terminate Batch updates the recovery account to ‘Terminated’ and adjusts the balance to $0.
Recoupment of Active Benefits for EES Programs:
NOTE: See PPS Overpayments for process guidelines related to PPS Programs.
When the Responsible Party of the recovery account is receiving benefits, benefits can be recouped and applied to the recovery account. See EES Overpayments for process guidelines. After the recovery account is placed in ‘Active’ status and the Repayment Term Detail page is completed, KEES calculates, recoups the benefits, and posts the transaction to the associated recovery account. The recovery account is closed via the Recovery Account Close Batch if the balance reaches $0; otherwise it remains in its original status of ‘Active’.
NOTE: The Billing Statement Batch sends the CCU Bill 101 form to the Responsible Party if they become inactive on a program tied to the recovery account to notify them they still have an active unpaid claim. See the ‘Payments Made by the Consumer’ section below for information on how payments are applied to a recovery account when their benefits are no longer being recouped.
Payments Made by the Consumer/Debtor:
When the Responsible Party of the recovery account is not active on the program tied to the recovery account, or the program is not active, debtors are directed to make payments directly to CCU. The recovery account is closed via the Recovery Account Close Batch if the balance reaches $0; otherwise it remains in its original status of ‘Active’.
First, a recovery account must be set up and a repayment agreement sent.
If payment is received within 30 days, Receivables staff post the transaction to the recovery account. See Posting a Repayment Transaction for detailed steps.
If payment is not received within 30 days, CCU sends a demand letter and the consumer is given an additional 30 days to make a payment.
If a payment is received, Receivables posts the transaction to the recovery account. See Posting a Repayment Transaction for detailed steps.
If payment is not received within the additional 30 days, the recovery account is sent to Debt Set Off (DSO) for collections.
KEES initiates the TOP process when the recovery account is associated to Food Assistance and has been delinquent for 30 days.
KEES initiates the Debt Set Off process for all recovery accounts after the required demand letters have been sent.
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Recovery Accounts can be established by EES Eligibility Staff or PPS Staff.
See the Child Care Provider Overpayment process for guidance on provider overpayments.
See the EES Overpayment process for guidance on overpayments due to fraud.
CU sends the V830: Demand Notice at Closure to the debtor from KEES when there is an unpaid overpayment balance and the program and the program is no longer in Active status.
CCU has access to suspend or terminate recovery accounts in KEES on the Recovery Account Detail page after they have been placed in ‘Active’ status. Updating the status can be used to help manage claims associated to Responsible Parties who have filed for bankruptcy. The recovery account can be ‘Suspended’ when the bankruptcy filing is influx, and it can be ‘Terminated’ or put back in ‘Active’ status when the filing has been finalized or dismissed. See Changing the Status of a Recovery Account for detailed steps.
Repayment Agreement/Demand Letters in KEES include:
NOTE: All PPS Repayment Agreements/Demand Letters are off system
F831: FA Repayment Agreement – Fraud – Participating Household
F832: FA Repay Agreement – Agency – Consumer Error Participating HH
F835: FA Repayment Agreement Reminder
F836: FA Repay Agreement Agency – Client Non-Recipient CCU
A831: TANF Repay Agreement-Fraud Recipient
A832: TANF Repayment Agreement – Agency/Consumer Recipient
A836: Repayment Agreement – Agency/Consumer Non-Recipient CCU
A837: TANF Repayment Agreement: Fraud Non-Recipient CCU
C911: Child Care Benefit Repayment Agreement
C912: Child Care Overpayment Claim Change
C915: Child Care Overpayment Repayment Plan
FIN – 001: Receipt
FIN – 002: Balance Letter
V828: Repayment Agreement Reminder All Programs CCU
V829: Delinquent Repayment Agreement – CCU