SR 04-03 Dated 05/04

STATE OF NEW HAMPSHIRE

INTER-DEPARTMENT COMMUNICATION

SUMMARY

This SR establishes Electronic Funds Transfer (EFT) as the primary method of issuing financial assistance for TANF and the adult categories of financial assistance.

In addition, this SR:

·   releases new Form EFT-V, Electronic Funds Transfer (EFT)-Vendor, and its instructions;

·   releases New HEIGHTS Form AE0006, Vendor EFT Information Request Form;

·   releases New HEIGHTS Client Letter BI0008, EBT Expired Benefits Letter;

·   obsoletes Form EFT-R, Information Required to Process Electronic Funds Transfer (EFT), and its instructions; and

·   obsoletes New HEIGHTS Form AE0023, Information to Process EFT Request.

Old Policy

Electronic Benefits Transfer (EBT) is the primary method of issuing financial assistance for TANF and the adult categories of financial assistance.

Clients have to specifically request EFT for benefits to be directly deposited into their account.

New Policy

EFT is the primary method of issuing financial assistance for TANF and the adult categories of financial assistance. EBT is used to issue cash assistance only when the client:

·   does not have a bank account; or

·   has a bank account, but the account does not accept direct deposit.

POLICY

Electronic Funds Transfer (EFT) is the primary method used to issue TANF cash and financial assistance for the adult programs of assistance.

Benefits are deposited into:

·   the casehead’s primary bank account; and

·   one account only.

If more than one account exists and the client has not specified the account to use for EFT, choose:

1. the account with the casehead’s name listed as the primary holder first; or

2. the checking account, if more than one account lists the casehead’s name as the primary holder, or all accounts are joint accounts.

If the only account accessible to the casehead is a child’s savings account, deposit cash benefits into that account. An account managed by a representative payee for social security benefits or an account used to manage more than one client’s social security benefits, known as a collective account, is chosen when the account:

·   is the only account available; and

·   accepts direct deposit.

PROCESS

When an individual is determined potentially eligible for cash assistance, on the "Assistance Group Benefit Issuance Screen", change the EBT switch to EFT and complete the EFT screen.

Benefits Issued Via EBT

If a checking or savings account is not accessible to the client, issue cash benefits on an EBT account.

For clients who receive cash benefits via EBT, FSS must promote the benefits of EFT in an effort to encourage clients to open a checking or savings account. Points used to promote EFT to clients may include the following:

·   Cash assistance benefits cannot be taken away after 90 days of account inactivity in a bank account.

·   Clients have more choice in how and where to use their cash benefit because they can write checks, use any ATM, etc.

·   Clients have more privacy.

·   Their cash benefit has the potential of earning interest if the benefit is deposited into an interest bearing account.

If a client chooses to open an account for EFT cash benefit issuance, issue cash assistance via EBT until the client:

·   notifies the District Office that he or she has established a bank account; and

·   provides the District Office with pertinent information to establish EFT as the cash issuance method.

Once all banking information is received, change the cash benefits issuance method from EBT to EFT, and alert the client of the change.

Notification of Deactivation and Return of EBT Benefits from Unused EBT Accounts

In August 2003, New HEIGHTS client letter BI0008, EBT Expired Benefits Letter, was implemented to notify clients that benefits would be removed from the EBT account. This letter is generated:

·   60 days after EBT cash account inactivity; and

·   90 after Food Stamp account inactivity.

Client letter BI0008 identifies the dollar amount and type of benefits that will be expiring. In addition, this letter indicates the timeframe in which the client must use those benefits to prevent removal of inactive cash and/or Food Stamp benefits.

SYSTEM PROCEDURES AND IMPLEMENTATION

New HEIGHTS changes regarding defaults and conditionally mandatory screens are expected to be in place by September 1, 2004. Until the defaults are in place, FSS will manually select cash assistance benefits via EFT using the process outlined in this SR.

Assistance Group Benefits Issuance Screen

Beginning September 1, 2004, the system will default to a cash benefit issuance of EFT. FSS may only change the method of benefits issuance if the client:

·   does not have an accessible bank account;

·   has a bank account, but the account cannot receive direct deposits;

·   is a nursing facility client who chooses to receive a personal needs allowance payment by paper check; or

·   has a guardian, conservator, or protective payee and chooses to receive his or her benefit by paper check.

If an issuance method other than EFT is chosen, conditionally mandatory drop down boxes will appear.

If the bank rejects an EFT, issue benefits via EBT and choose the correct reason for EBT Benefits Issuance. For example, if the client has an account that cannot accept direct deposit, choose "Bank Account Will Not Accept Direct Deposit." However, if the bank account is closed , choose "No Bank Account" as the reason.

If EBT is chosen as a method of cash benefits issuance, FSS must choose one of the following reasons:

·   No Bank Account; or

·   Bank Account Will Not Accept Direct Deposit.

If paper check is chosen as a method of cash benefits issuance, FSS must choose one of the following reasons:

·   NF Client; or

·   Guardian/Conservator/Protective Payee.

Replacement of Benefits Due to an EFT Account Error

Per current policy, if a bank rejects an EFT direct deposit, FSS must contact the client to:

·   obtain correct account information; or

·   inform him/her that benefits will be issued via EBT.

If the reason for the rejection cannot be corrected prior to the next regular assistance payment issuance date, FSS must send written notification to the client of the rejected EFT and alternate EBT benefit issuance method.

NOTE: Currently, the Bureau of Data Management (BDM) alerts FSS of the bank rejected EFTs as they appear on the CA-Doc View report NB1700. It is imperative that FSS respond to bank-rejected EFTs in a timely manner so as to not delay issuance of benefits.

POLICY MANUAL REVISIONS

Revised Family Assistance Manual Topics

PART 115   VENDOR PAYEES

PART 615   BENEFITS: DETERMINATION, FREQUENCY, AND ISSUANCE

PART 707   ISSUING FINANCIAL ASSISTANCE BENEFITS

Section 709.01   What Benefits May Be Replaced

Revised Adult Assistance Manual Topics

PART 115   VENDOR PAYEES

Section 617.01   Assistance Payments: Determination, Frequency, and Issuance

PART 705   ISSUING BENEFITS

PART 707   REPLACING FINANCIAL ASSISTANCE BENEFITS

Revised Food Stamp Manual Topics

Section 709.02   Deactivation and Return of EBT Benefits from Unused EBT Accounts

FORMS REVISIONS

New Forms

BI0008, EBT Expired Benefits Letter

New HEIGHTS client letter BI0008, EBT Expired Benefits Letter, is generated 60 days after EBT cash account inactivity and 90 days after Food Stamp account inactivity.

This letter alerts clients of the:

·   date that their benefits will expire; and

·   amount of benefit that will expire.

Client Letter BI0008 is attached to this SR for reference.

AE0006, Vendor EFT Information Request Form

Form AE0006, Information to Process EFT Request, gathers the bank account and IRS information necessary to process vendor payments via EFT.

New HEIGHTS-generated Form AE0023, Information to Process EFT Request, released by SR 98-51/December 1998, and Form AE0027, Alternate W-9 Form, were combined to create Form AE0006, Vendor EFT Information Request Form. A copy of Form AE0006 is attached to this SR for reference.

Form EFT-V, Electronic Funds Transfer (EFT)-Vendor

Form EFT-V, Electronic Funds Transfer (EFT)-Vendor, is a one-page, single-sided paper form used as a back up for New HEIGHTS Form AE0006, Vendor EFT Information Request Form, in the event of a power outage or system failure. Form EFT-V is sent to the vendor with Form AW-9, ALTERNATE W-9 FORM-CIS, released by SR 02-23/June 2002, to collect the bank and IRS information necessary to process an EFT vendor payment.

Use current supplies of Form EFT-R, Information Required to Process Electronic Funds Transfer (EFT)-Recipient, in place of Form EFT-V, Electronic Funds Transfer-Vendor, until stocks are depleted.

Obsoleted Forms

AE0023, Information to Process EFT Request

This SR obsoletes Form AE0023, Information to Process EFT Request, released by SR 98-51/December 1998. Form AE0023 was combined with Form AE0027, Alternate W-9 Form, to create new Form AE0006, Vendor EFT Information Request Form, so is no longer used alone.

Form EFT-R, Information Required to Process Electronic Funds Transfer (EFT)-Recipient

This SR obsoletes Form EFT-R, Information Required to Process Electronic Funds Transfer (EFT)-Recipient, released by SR 98-51/December 1998, and its instructions. Bank account information, including the bank’s trans routing number needed to process an EFT, is entered in New HEIGHTS on the EFT screen, so the collection of information is no longer required via paper format. Additionally, a signature is no longer required from the recipient since EFT is now the primary benefit issuance method.

There is no Certificate of Destruction in this SR due to the alternate use of Form EFT-R described below. Form EFT-R is used in place of Form EFT-V, Electronic Funds Transfer-Vendor, until current stocks are depleted.

IMPLEMENTATION

Effective May 1, 2004, the primary method of issuance for cash assistance benefits will be EFT.

Current recipients receiving cash assistance on an EBT account who have an accessible checking or savings account, will have their method of benefit issuance changed over to EFT at redetermination.

New HEIGHTS systems changes for the EFT automation will be completed by September 1, 2004. District Offices will be notified via a Systems Alert.

In the event of a power outage or system failure, use Form EFT-R, Information Required to Process Electronic Funds Transfer (EFT)-Recipient, as the paper back-up for New HEIGHTS Form AE0006, Vendor EFT Information Request Form, until the stocks are depleted. Prior to mailing out Form EFT-R, cross out "recipient" throughout the form and write in "vendor." Mail out Form EFT-R along with Form W-9.

Once the stock of Form EFT-R is depleted, contact state office for a supply of Form EFT-V, Electronic Funds Transfer (EFT)-Vendor.

CLIENT NOTIFICATION

Clients who are receiving cash assistance and have access to a checking or savings account received a letter in mid-April informing them that their method of benefit issuance for cash assistance will be changed to EFT at their next eligibility review. The client letter is attached for reference.

A public hearing regarding changes outlined in this SR was held on March 12, 2004.

TRAINING

No special training is planned.

FORMS POSTING INSTRUCTIONS

DISPOSITION

This SR may be destroyed or deleted after its contents have been noted and the revised manual topics released by this SR have been posted to the On-line manuals.

DISTRIBUTION

This SR will be distributed according to the electronic distribution list for Division of Family Assistance policy releases. This SR, and revised On-Line Manuals, will be available for agency staff in the On-Line Manual Library, and for public access on the Internet at http://www.dhhs.nh.gov/DHHS/DFA/LIBRARY, effective July 1, 2004.

This SR, and printed pages with posting instructions, will be distributed under separate cover to all hard copy holders of the Adult Assistance, Family Assistance, and Food Stamp manuals.

DFA/DMS:s