CalSAWS Issuance Information and Direct Deposit Process

CalSAWS Issuance Information

Fiscal Month End - First of the Month Issuances

The following is general FME EFT issuance information:

The first of the month benefits for the future month are generated at FME and the Status of the benefits on the Issuance Search page is updated to Issued. Once the status changes to Issued, the EFT benefits cannot be held or cancelled.
EFT issuances have a unique Control Number to easily identify them. All EFT issuance numbers begin with the number 6 and contain eight (8) digits.
Direct Deposit issuance records will generate the same type of issuance reports and claim records as paper warrants and EBT issuances.
All recurring benefits are available at the opening of business on the FIRST of the month.

Reminder: EFT benefits are not staggered.

Note: In months when the first of the month falls on a non-banking day (e.g., Saturday, Sunday or holiday), the funds will be available on the first prior banking day (e.g., if the first falls on a Saturday, the Direct Deposit will be available on the Friday before).

Daily Process - Supplemental Issuances

The process for Daily Run and CME issuances is as follows:

The Daily Process for supplemental issuances creates electronic transmissions identical to the Fiscal Process.
The supplement amount will be deposited in the recipient’s account two business days after the transmission. Example 1 Example 1 A supplemental issuance is generated on a case with Direct Deposit in the CalSAWS run on Monday night. On Tuesday, the cash amount will be transmitted via the disbursing bank, to ACH, then to the individual’s account. It will be available to the recipient on Wednesday.

Initiating Direct Deposit

Procedures

The following procedures must be followed when a Direct Deposit request is initiated for clients. Please refer to the CalWORKs Business Process Handbook topic CalWORKs Vendor Payment and General Assistance Business Process Handbook topic Vendor/Landlord Payments when Direct Deposit request is initiated for a vendor.

The Social Services Benefits Specialist (SSBS):
1. Responds to inquiries for Direct Deposit and explains Direct Deposit requirements.
2. Sends the Direct Deposit Enrollment Form (SCD 1948) to client.
The Mailroom:
1. Receives the SCD 1948.
2. Forwards it to the SSBS listed on the form.
The SSBS:
1. Receives the SCD 1948 requesting Direct Deposit from the mailroom or directly from the client.
2. Upon receipt of the form:
  1. Reviews the form for completeness: bank name, routing number, account number, client’s signature and a “voided” check or bank memo (if applicable). The bank account must belong to the payee.
  2. Compares the account number and balance with personal property reported on the Statement of Facts and/or other documentation.
  3. Places the original SCD 1948 and voided check or bank memo (if applicable) in the designated basket for the Client Service Technician (CST) to batch and send daily to the Benefit Issuance Unit (BIU) at Julian, or emails it to the BIU at warrantcontrol@ssa.sscgov.org.
  4. Sends a copy of the SCD 1948 and a copy of the check or bank memo (if applicable) to Imaging.

Reminder: For checking accounts, a “voided” check or a bank memo with the routing and account number preprintd must be attached, or Section 2 of the SCD 1948 must be completed. For savings accounts, Section 2 must always be completed.

Note: The SSBS must inform the client that the approval process for EFT will take several weeks and in the meantime, they must receive their benefits as either a warrant or through the EBT system. Based on the client’s decision, the SSBS must set up the alternative issuance method for the case.

The BIU:
1. Receives the SCD 1948 from the SSBS or CST.
2. Reviews the form to ensure information needed for data entry is complete.

If the SCD 1948 is...	Then...
Not complete,	Returns the SCD 1948 to the SSBS noting what needs correction.
Complete,	Completes all fields on the Issuance Method Detail page using the information provided on the SCD 1948

Note: When the Issuance Method Detail page is completed for the first time on a case, or when bank information is revised, Direct Deposit is initiated.

Attaches a screen print of the Issuance Method Detail page to the SCD 1948 and files both documents by case number in the designated binder for audit purposes.
Monitors the "Direct Deposit Production Reconciliation Report" for rejected or returned Direct Deposits daily.

The SSBS follows these guidelines:

If the SCD 1948 is...

Then...

Returned for completeness,

Returns the SCD 1948 to the client, or schedules an appointment to have them come in and correct the form.

Note: Once the form is corrected, returns the form to BIU repeating actions listed above.

Approved,

Views the Issuance Method Detail page to check the status of the Direct Deposit.

EFT Status Codes

Once information is entered by the BIU on the Issuance Method Detail page, CalSAWS will automatically update the EFT status. The following are status codes which appear in the Status field on the Issuance Method Detail page:

Status	Definition
Pre-Note Pending	Appears immediately in “real time” after entries on the Issuance Method Detail page are made. This indicates entries have been accepted.
Pre-Note Approved	Appears after the “Pre-Note” process is completed.
Pre-Note Rejected	Appears if the Financial Institution rejects entries. If Pre-Note Rejected appears, the Direct Deposit has failed.
EFT Discontinued	Appears after discontinuance of the case and/or Direct Deposit.

Reminder: Only the BIU has authorization to modify the details on the Issuance Method Detail page.

Pre-Note Process

The Pre-Note process is a fourteen-calendar day process that consists of sending a zero-dollar transaction to the client’s bank to verify the existence of the account. The Pre-Note process is automatically generated by the Direct Deposit data entered on the Issuance Method Detail page. CalSAWS will automatically update the Status field.

Pre-Note Approval

After approximately fourteen calendar days, if the account is valid, EFT is approved and the following CalSAWS automatic action occurs:

"Pre-Note Approved” is displayed in the Status field on the Issuance Method Detail page.
The Notice to Participate - Direct Deposit Start Notice (DDP-001), which advises the client that Direct Deposit has been approved, is automatically generated and mailed.

All cash benefits generated on the case after the steps listed above are completed would be Direct Deposit transactions instead of paper warrants or EBT transmissions. The first Direct Deposit will be the first of the month following the fiscal month end process after the pre-note is approved.

Example 2Example 2 The pre-note status is approved on 04/27/06. The next Fiscal Month End run is scheduled for 05/24/06. The first Direct Deposit will be 06/01/06.

For a supplemental issuance, the Direct Deposit will be the next payment the client receives after the pre-note is approved.

Example 3Example 3 The pre-note is approved on 03/10/06. The SSBS issues a supplemental payment on 03/15/06. The Direct Deposit will be available on 03/17/06, after the nightly batch is ran on 03/15/06 and the transmittal is sent on 03/16/06.

Pre-Note Rejects

A reject is a Pre-Note denial received from the Payee’s Financial Institution. The following CalSAWS automatic actions occur when a Pre-Note rejects:

The "Direct Deposit Production Reconciliation Report" produced in the Direct Deposit daily process shows the pre-note rejects.
The issuance status on the Status field on the Issuance Method Detail page changes to “EFT Discontinued.”

If the reject is not corrected, Direct Deposit is not initiated and payments will be issued via EBT or paper warrants.

Pre-Note Reject Actions

The following action must be taken when a Pre-Note Action rejects:

The BIU receives the "Direct Deposit Production Reconciliation Report" and reviews the entries on the Issuance Method Detail page and follows these guidelines:

If...	Then...
The BIU is unable to make the corrections,	They notify the SSBS and SSBS Supervisor via phone call or e-mail.
The error is something the BIU can correct,	The BIU makes corrections to the Issuance Method Detail page as appropriate. New entries will be included in the CalSAWS daily process which will initiate the same prenote process again.

If the client’s
bank record...

Then...

Matches,

EFT will be approved and all future benefits will be issued as EFT.

Does not match,

The SSBS and the SSBS Supervisor must be advised that the error cannot be resolved.

Note: The error will again appear on the "Direct Deposit Production Reconciliation Report". The reject code received from NACHA for the second attempt will also be displayed in the Status Reason field on the Issuance Method Detail page.

The SSBS:
1. Receives the information from the BIU that the error cannot be resolved.
2. Determines if the information was entered incorrectly on the SCD 1948.

If the information is...	Then...
Incorrect,	Contacts the client and sends another SCD 1948, or has the client come in to complete another form.
Correct,	Informs the client to contact the Bank Institution, as information appears correct but is not being accepted by the bank.

The SSBS Supervisor:
1. Receives the information from the BIU that the error cannot be resolved.
2. Ensures that the rejects are resolved within three working days.

Direct Deposit Approval

The following are automatic actions taken by CalSAWS when Direct Deposit is approved on a case that is:

Active, or
Discontinued.

Direct Deposit Approval on an Active Case

When the Pre-Note process is successful, and the case status is active, CalSAWS takes the following automatic actions:

Generates a DDP-001.
Updates the Issuance Method Detail page to "Pre-Note Approved" after the “Pre-Note” process is completed.
Direct Deposit will begin the first of the month following the fiscal month end process after the pre-note is approved.

Note: All cash assistance payments generated after the Pre-Note status is approved will be Direct Deposit transactions instead of paper warrants or EBT issuances.

Direct Deposit Approval on a Discontinued/Closed Case

If the case status is discontinued or closed at the time of Pre-Note approval, the DDP-001 will not be generated. The BIU will review CalSAWS and notify the SSBS that EFT was not completed. The SSBS must check the Issuance Method Detail page for EFT coding when a discontinued or closed case is restored.

Direct Deposit on a Restored/Rescinded Case

When a case is discontinued, Direct Deposit will not be discontinued. If the case is restored/rescinded at a later date, Direct Deposit will automatically reinitiate without going through the pre-note process.

If ...	And ...	Then ...
The Issuance Method is EFT,	The recipient wants EFT, and The EFT (bank) information is valid (i.e., has not changed),	When the case is approved benefits will be issued as EFT.
The recipient wants EFT,	The bank information has changed,	Inform BIU to change the issuance method to warrant or EBT, as applicable, and follow the instructions for initiating Direct Deposit.
The recipient no longer wants EFT,	The Issuance Method is EFT,	Inform BIU to change the issuance method to EBT or Warrant, as applicable.

Once Direct Deposit converts to a closed status, if the case is later restored/rescinded, Direct Deposit must be reinitiated and go through a pre-note process. Refer to Initiating Direct Deposit and Pre-Note Process.

Note: Direct Deposits cannot be issued as immediate needs. When restoring/rescinding a discontinuance, if the client qualifies for an immediate need, the SSBS must issue a paper warrant. Direct Deposit must then be reinitiated and go through a pre-note process. Refer to Initiating Direct Deposit and Pre-Note Process.

Deleting Direct Deposit

Deleting Direct Deposit means that Direct Deposit will be terminated. Upon verbal or written request to delete Direct Deposit, the SSBS must:

Document the request on the Journal Detail page.
- If a verbal request, give the reason if known.
- If a written request, have it scanned into Imaging under F2 - Case Verif/Child Support
Notify the BIU of the request by sending an email to Warrant Control (warrantcontrol@ssa.sccgov.org).
BIU will change the Issuance Method on the Issuance Method Detail page to Warrant or EBT, as appropriate.

Note: This action must take place prior to Fiscal Cut-Off or the next monthly issuance will be directly deposited into the client’s account.

CalSAWS Issuance Information and Direct Deposit Process