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 Issuance Status of the benefits on the Search for Issuance window is updated to Issued. Once the Issuance status changes to Issued, the EFT benefits CANNOT be held or cancelled.
  • EFT issuances have a unique Issuance Number range to easily identify them. All EFT issuance numbers begin with an alpha letter in the T-Z range, followed by five (5) digits. (, T45683).
  • An CSF 75 notice will be printed for each Direct Deposit serving as a written verification for recipients that a Direct Deposit has been made. These notices are generated by CalSAWS and mailed out automatically.
  • 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. 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. 
  • CSF 75 notices are printed in the Daily process for all Direct Deposits, and are automatically mailed to the recipient.

Initiating Direct Deposit

Procedures

The following procedures must be followed when a Direct Deposit request is initiated:

  1. The EW:
    1. Responds to client inquiries for Direct Deposit and explains Direct Deposit requirements.
    2. Sends “Direct Deposit Enrollment Form” (SCD 1948) to client.
  2. The Mailroom:
    1. Receives the “Direct Deposit Enrollment Form” (SCD 1948).
    2. Forwards SCD 1948 to the EW listed on the form.
  3. The EW:
    1. Receives the SCD 1948 with client’s authorization for Direct Deposit. The form may be received either from the mail room or directly from the client. Upon receipt of the form:
    2. Reviews the form for completeness: bank name, routing number, account number, client’s signature and a “voided” check. The bank account MUST belong to the payee.
    3. Compares the account number and balance with personal property reported on the Statement of Facts and/or other documentation.
    4. Places the original SCD 1948 in the designated basket for the CST to batch and send daily to the BI Unit @ Julian.
    5. Has the yellow copy of the SCD 1948 and a copy of the check, if applicable, scanned into Imaging.
    6. Returns the pink copy to the client if it was sent to us. 

      1. Reminder: For checking accounts, a “voided” check must be attached, or Section 2 of the SCD 1948 must be completed. For savings accounts, Section 2 must ALWAYS be completed. 

      2. Note: The EW MUST inform the client that the approval process for EFT will take several weeks and in the mean time they must receive their benefits as either a warrant or through the EBT system. Based on the client’s decision, the EW MUST set up the alternative issuance method for the case.
  4. The BI Unit @ Julian:
    1. Receives the SCD 1948 from the EW.
    2. Reviews the SCD 1948 to ensure information needed for data entry is complete.

If the SCD 1948 is...

Then...

NOT complete,

Returns the SCD 1948 to the EW, noting what needs correction.

Complete,

Completes all fields on the [Maintain EFT Detail] window using the information provided on the SCD 1948.

Note: When the [Maintain EFT Detail} window 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 Maintain EFT Detail window to the SCD 1948 and files both documents by case number in the designated binder for audit purposes.
  • Monitors the MRC046R “EFT Bank Exceptions” reports for rejected or returned Direct Deposits daily.
  1. The EW 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 him/her come in and correct the form.

Note: Once the form is corrected, returns the form to the Benefit Issuance Unit @ Julian repeating actions listed above.

Approved,

Views Maintain Issuance Detail window to check the status of the Direct Deposit.

EFT Status Codes

Once information is entered by the Benefit Issuance Unit @ Julian on the Maintain EFT Detail window, CalSAWS will automatically update the EFT status. The following are status codes which appear in the EFT Status field of the Maintain EFT Detail window:

Status

Definition

Pre-Note Pending

Appears immediately in “real time” after entries on the [Maintain EFT Detail] screen are made. This indicates entries have been accepted.

Pre-Note Issued

Appears the next day after the “nightly batch process” is run. Indicates the Pre-Note status.

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 Benefit Issuance Unit @ Julian has access to the Maintain EFT Detail window.

Pre-Note Process

The Pre-Note process is a ten 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 Maintain EFT Detail window. CalSAWS will automatically update the EFT Status field.

Pre-Note Approval

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

  • "Pre-Note Approved” is displayed in the EFT Status field on the Maintain EFT Detail screen.
  • The “Approval for Direct Deposit” notice (CSF 71), 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 EW 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 MRC 046R produced in the Direct Deposit daily process shows the pre-note rejects and reason for reject.
  • The issuance status on the EFT Status field on the Maintain EFT Detail window changes to “EFT Discontinued.”
  • The reject code, which is received from NACHA, is also displayed on the Maintain EFT Detail window in the EFT Reason Code and EFT Reason Desc fields.

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:

  1. The BI Unit @ Julian receives the MRC 046R “EFT Bank Exception” Report and reviews the entries on the [Maintain Issuance Detail] window and follows these guidelines:

If...

Then...

The BI Unit @ Julian is unable to make the corrections,

They notify the EW and EW Supervisor, via phone call or e-mail.

The error is something the BI Unit @ Julian can correct,

The BI Unit @ Julian makes corrections to the Maintain Issuance Detail window 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 EW and the EW Supervisor must be advised that the error cannot be resolved. Note: The error will again appear on the MRC046R “EFT Bank Exceptions” Report. The reject code received from NACHA for the second attempt will also be displayed in the EFT Reason Code and EFT Reason Desc fields on the Maintain EFT Detail window.
  1. The EW:
    1. Receives the information from the BI Unit @ Julian 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.

Note: CalSAWS automatically generates a “Denial for Direct Deposit” (CSF 72) which advises the client that Direct Deposit was not initiated and requests they contact their EW if they want to have Direct Deposit. It also notifies them they will continue to receive their benefits in the mail.

  1. The EW Supervisor:
    1. Receives the information from the BI Unit @ Julian 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 CalSAWS “Approval for Direct Deposit” notice (CSF 71).
  • Updates the Maintain EFT Detail window to Pre-Note Approved after the “Pre-Note” process is completed.
  • Sends “Notification of Direct Deposit (CSF 75) to the recipient for each Direct Deposit, verifying that a deposit has been made.
  • 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 “Approval for Direct Deposit” notice (CSF 71) will NOT be generated. The BI Unit @ Julian will check monthly the “EFT Bank File Report (MRC 045R) advising that EFT was not completed and will notify the EW, who in return must check the Maintain Case Issuance Method window 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 Type] 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,

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 Type] is EFT,

Change the [Issuance Type] to EBT or Warrant, as applicable, on the [Maintain Case Issuance Method] window.

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 EW 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 EW 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 BI Unit @ Julian of the request by sending an email to Warrant Control (warrantcontrol@ssa.sccgov.org).
  • Change the [Issuance Type] on the Maintain Case Issuance Method window 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.

Related Topics

EFT - Direct Deposit Overview