Page 131

131 The Child Care Worker or Fraud Worker shall provide the Child Care Repayment Agreement form (032- 12-0130-00-eng (08/17)) to the recipient and request that they submit the completed form within 30 days. In establishing the repayment schedule for a parent, LDSS cannot require monthly repayment amounts that exceed 5% of the family’s gross monthly income.

Repayment will be in either a lump sum or according to a written repayment schedule between the responsible person and the LDSS. The Child Care Repayment Agreement form must be signed by the responsible person.

The LDSS must determine the correct amount of the payment the provider should have received for those months the provider actually received an overpayment. The overpayment is based on the actual circumstances of the case each month. If, due to a misunderstanding or inadvertent error on the part of the parent, a family failed to report a change in its circumstances within 10 days of the date the change became known to the parent, the first month of an overpayment will be the first month in which the change would have been effective had it been reported in a timely manner.

G. Collection of Improper Payments

A Manual Adjustments Guide is located on FUSION under CCECD, Case Management to guide LDSS through these steps.

Improper payments collected by LDSS must not be sent to the Home Office; instead they must be deposited into local bank accounts according to established local procedures. Home Office staff will make adjusting entries in LASER, based on collection data entered in VaCMS by the LDSS. The adjusting entries made by Home Office staff will reduce local reimbursements in LASER by the amount collected using the appropriate LASER cost codes (88801, 88802, & 88901). This is the mechanism by which the state collects repayments of improper payment received by LDSS.

LDSS staff should not record any information into the new LASER cost codes.

Pre-VaCMS/ECC Improper Payment Collections

LDSS should continue to enter improper payment collection details into LASER. A summary adjustment is entered to the appropriate budget line.

VaCMS/ECC Improper Payment Collections

The payment(s) that caused the overpayment must be identified in VaCMS and a subsequent manual adjustment(s) to that payment(s) must be made before the receivable owed to the Commonwealth can be established. Accounts receivable and collection data must be entered into VaCMS. A series of steps must be followed to set-up the receivable account and to properly record collection activity in VaCMS. To ensure adequate internal controls, one individual (Child Care Worker) identifies the payment, portion of the payment, or payments that caused the overpayment and then makes the manual adjustment(s) to reflect the amount of the overpayment. A second individual, (either a Local Adjustment Approver or Fiscal Manager) reviews the adjustment and then establishes the receivable in VaCMS. The same individual may not create the manual overpayment adjustment and establish the receivable in VaCMS.