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UNDELIVERABLE OR RETURNED COUPONS, AUTHORIZATION
DOCUMENTS AND ACCESS DEVICES
.1 Unusable Coupons
.11 The CWD shall require coupon issuers, bulk storage points and claims collection points to dispose of unusable coupons, received from the manufacturer or received as payment for claims, within 30 days from the close of the month in which they were received. There is no dollar limit on the amount of coupons which may be disposed of by the CWD. Disposal shall be by one of the following two methods:
.111 Sending unusable coupons, along with any documentation the CWD has deemed appropriate, to the CWD for destruction; or
CALIFORNIA-DSS-MANUAL-FS
MANUAL LETTER NO. FS-94-02 Effective 2/1/94
Page 432
FOOD STAMP REGULATIONS
Regulations COUPON ORDERING, STORAGE AND ACCOUNTABILITY 63-706 (Cont.)
63-706 HANDLING AND/OR DESTRUCTION OF UNUSABLE, 63-706
UNDELIVERABLE OR RETURNED COUPONS, AUTHORIZATION
DOCUMENTS AND ACCESS DEVICES (Continued)
.112 Holding the unusable coupons in secure storage pending examination and destruction by the CWD at the coupon issuance, bulk storage or claims collection point.
.12 Prior to the destruction of improperly manufactured coupons, mutilated coupons or coupon books that were received from households for claims, the CWD shall:
.121 Verify that the coupons were improperly manufactured or mutilated. If one or more boxes of coupons were improperly manufactured, the CWD shall contact FNS for instructions prior to disposition of the coupons. If FNS has not responded within 30 days, the CWD shall destroy the coupons and document the manufacturing irregularity and the book numbers. A copy of the CWD's request to FNS for permission to destroy shall be retained.
.122 If it cannot be determined whether the coupons or coupon books were in fact improperly manufactured or the coupon's value cannot be established, the CWD shall write or stamp "cancelled" across the face of the coupon(s) and coupon book(s) and promptly forward a written statement of findings and the cancelled coupon(s) or coupon book(s) to FNS for determination.
.13 The CWD shall destroy the coupons and coupon books by burning, shredding, tearing or cutting so they are not negotiable. Two CWD designated employees shall witness and certify the destruction information as follows:
.131 The destruction of improperly manufactured, mutilated or exchanged coupons shall be reported on the FNS-471 and submitted with the FNS-250 for the appropriate month. For coupons received from recipients, a FNS-135 shall be completed and retained by the CWD as documentation with the FNS-471.
CALIFORNIA-DSS-MANUAL-FS
MANUAL LETTER NO. FS-94-02 Effective 2/1/94
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FOOD STAMP REGULATIONS
63-706 (Cont.) COUPON ORDERING, STORAGE AND ACCOUNTABILITY Regulations
63-706 HANDLING AND/OR DESTRUCTION OF UNUSABLE, 63-706
UNDELIVERABLE OR RETURNED COUPONS, AUTHORIZATION
DOCUMENTS AND ACCESS DEVICES (Continued)
.132 The destruction of coupons received from claims collection points that are the result of the payment of household claims shall be reported on the FNS-471 and submitted with the FNS-209. A FNS-135 shall be completed and retained at the CWD for future audit purposes. A CWD may consolidate its monthly FNS-471 for claims collection destruction reporting by providing one form which reflects the total claims destruction figure for the month. If the CWD chooses to do this they shall also:
(a) Attach a breakdown which reports the required FNS-471 information for each reporting point; and
(b) Retain all individual FNS-471s for future review and audit purposes.
.2 Authorization Documents Mutilated or Otherwise Rejected During Processing
The CWD shall void all authorization documents mutilated or otherwise rejected during the preparation process. The voided authorization documents and access devices shall either be filed for audit purposes or destroyed, provided destruction is witnessed by at least two persons and the CWD maintains a list of all destroyed authorization documents.
.3 Undeliverable or Returned Coupons, Authorization Documents and Access Devices
The CWD shall exercise the following security and controls for authorization documents, access devices and coupons that are undeliverable or returned during the valid issuance period. The FNS-471 and FNS-135 shall be completed by the CWD, as appropriate.
.31 Coupons which are in book form, complete with original and unsigned covers, shall be returned to inventory and noted as such on the issuance log.
CALIFORNIA-DSS-MANUAL-FS
MANUAL LETTER NO. FS-96-05 Effective 12/1/96
Page 434
FOOD STAMP REGULATIONS
Regulations COUPON ORDERING, STORAGE AND ACCOUNTABILITY 63-706 (Cont.)
63-706 HANDLING AND/OR DESTRUCTION OF UNUSABLE, 63-706
UNDELIVERABLE OR RETURNED COUPONS, AUTHORIZATION
DOCUMENTS AND ACCESS DEVICES (Continued)
.32 Returned authorization documents and access devices shall be recorded in the control log noting the serial number, household name and case number.
.321 The documents and access devices shall be kept in secure storage with limited access.
.322 The documents and access devices may be voided as long as households which report nondelivery are provided an immediate replacement.
.4 Exchange of Old Series Food Coupons for New Series Coupons
.41 Old Series Coupons Exchange
Households which have old series (no longer issued) coupons shall be entitled to a dollar for dollar exchange of old series coupons for current series coupons. Households in possession of old series coupons shall submit the coupons and a request for exchange to the CWD.
.42 Methods of Exchange
CWDs may make direct exchanges to claimants or request FNS to make the exchange. CWDs may utilize either of these methods as described below.
.421 Exchange Performed by CWDs.
(a) When a recipient requests an exchange, the CWD shall determine the validity of the claim by considering the previous eligibility status of the claimant, the possibility that excessive amounts (over $100) of food coupons are offered for exchange, and the authenticity of the submitted food coupons.
(b) If satisfied that the request for exchange is valid, the CWD shall complete the FNS-135.
HANDBOOK BEGINS HERE
(1) Care should be exercised to insure that the claimant signs the original and both copies of the FNS-135.
HANDBOOK ENDS HERE
CALIFORNIA-DSS-MANUAL-FS
MANUAL LETTER NO. FS-94-02 Effective 2/1/94
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FOOD STAMP REGULATIONS
63-706 (Cont.) COUPON ORDERING, STORAGE AND ACCOUNTABILITY Regulations
63-706 HANDLING AND/OR DESTRUCTION OF UNUSABLE, 63-706
UNDELIVERABLE OR RETURNED COUPONS, AUTHORIZATION
DOCUMENTS AND ACCESS DEVICES (Continued)
(c) After the transaction is completed, all loose new series food coupons resulting from the exchange and all old series coupons shall be cancelled immediately and destroyed as soon as possible. Destruction shall be accomplished by burning, shredding, tearing or cutting food coupons sufficiently to make them nonnegotiable. At the time of each destruction, the FNS-471 shall be completed.
(d) A consolidated FNS-471 shall be completed and attached to the original and duplicate of the FNS-250 at the end of each monthly reporting period. The consolidated FNS-471 must be signed by the same official who signs the FNS-250. One copy of the consolidated form shall be retained for audit purposes.
(e) The number of new series food coupon books given in exchange or destroyed shall be reported on the FNS-250.
.422 Exchange Performed by FNS
(a) The CWD shall determine the validity of the claim as specified in Section 63-706.421(a).
(b) If satisfied that the request for exchange is valid, the CWD shall complete the FNS-135.
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(1) Care should be exercised to insure that the claimant signs the original and both copies of the FNS-135.
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(c) All old series food coupons submitted for exchange shall be cancelled immediately and destroyed as soon as possible. Destruction shall be accomplished by burning, shredding, tearing or cutting food coupons sufficiently to make them nonnegotiable. At the time of each destruction, the FNS-471 shall be completed.
CALIFORNIA-DSS-MANUAL-FS
MANUAL LETTER NO. FS-94-02 Effective 2/1/94
Page 436
FOOD STAMP REGULATIONS
Regulations COUPON ORDERING, STORAGE AND ACCOUNTABILITY 63-708
63-706 HANDLING AND/OR DESTRUCTION OF UNUSABLE, 63-706
UNDELIVERABLE OR RETURNED COUPONS, AUTHORIZATION
DOCUMENTS AND ACCESS DEVICES (Continued)
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(d) FNS will forward new series food coupons directly to the claimant and advise the requesting office accordingly.
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(e) The CWD shall make direct inquiry to FNS, if after 60 days the claimant reports that the exchange has not been received.
NOTE: Authority cited: Sections 10554 and 18904, Welfare and Institutions Code. Reference: 7 CFR 274.7, FNS waiver exemption letter to Linda S. McMahon, Director, CDSS dated October 23, 1989; Food and Consumer Services, FNS 250 Food Stamp Coupon Accountability Report Clarification, dated December 31, 1991, and Sections 10554 and 18904, Welfare and Institutions Code.