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Division of Child Support Services
Employee Reference Guide – Standard Operating Procedure 606
Collection of Outstanding Fees or Recoupments
Objective:
To research and ensure that all outstanding fees and recoupments owed to the state
are collected before a case is closed.
State Authority / Reference:
Georgia Law, None
DCSS Policy Manual – No Policy
DHS Rule 290-7-1-.05 Fees and Collection Procedures
Federal Authority / Reference:
None
157 Reporting: SECTION A: CASE INVENTORY
Applicability:
All Georgia child support offices receiving Title IV-D funds, including all private vendors
contracted with the Department of Human Services to provide child support services.
Action:
606.01
Notices
The local office Agent should mail NCB or NCC once the case becomes active for fee /
recoupment payment only. Mail NCD to the NCP to obtain permission to apply funds in
NCP refund escrow to the fee account balance owed by the CP. Cases must be actively
monitored for collection of fees and closed promptly when fee balances are reduced to
zero.
606.02
Scenarios
This procedure includes ten scenarios that should be used as a guide for processing
outstanding recoupments or fees on cases either before closure or conversion to Non
IV-D. If you have a case that meets the criteria for case closure, Refer to ERG
Procedure 1140.
Important Note: The following scenarios are not intended to be an all-inclusive list. If you
have any questions about these scenarios or any additional situations, please consult with
your Region Financial Manager before proceeding. Refer to ERG Procedure 611 for
guidance on handling recoupments on cases with an active current support and/or arrears
account.
Scenario 1: CP is deceased and money is owed in CP Fee/Recoupment accounts
Steps to Resolve:
1. Mail an Income Withholding for Support FIW, checking the TERMINATION of
IWO block at the top of the form to notify the employer to stop the deductions.
2. Close the support accounts and any CP fee and/or recoupment accounts with a
balance.
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3. Reverse or disposition any NCP refund escrow to apply to all fees owed by the
NCP.
4. Release the balance, if any, to the NCP.
5. Once the NCP pays the fee account balances, close the case as “CP deceased"
code “ICY”.
6. $TARS will automatically decertify the CP's ZY account and zero the balance.
Scenario 2: NCP is deceased and money is owed in NCP fee/recoupment
account(s)
Steps to Resolve:
1. Close the support accounts, but leave any fee accounts active.
2. If there are any funds pending refund to the NCP, reverse or disposition the
receipts to any NCP fee/recoupment account balances.
3. If there are any NCP fee balances remaining, conduct a probate search for NCP
assets and document their attempt(s) in the CAL. Please see INSTRUCTIONS ON
HOW TO PROCESS AND CODE CASES WITH DECEASED CASE MEMBERS.
4. If there are still any NCP fee balances remaining and no estate exist, close the
fee/recoupment accounts.
5. Immediately notify the CP that s/he owes fee account balances with NCC.
6. Once the CP pays the fee account balances, close the case as “NCP deceased" code
“ICB”.
Scenario 3: CP requests closure but is receiving TANF or Medicaid benefits
Steps to Resolve:
1. Advise CP that case cannot be closed while his/her case is active TANF/Medicaid.
2. If CP is no longer receiving active TANF/Medicaid, you must confirm status in
SUCCESS.
3. Go to Scenario 6.
Scenario 4: Last Child Emancipating; CP Fee/Recoupment Balances Due - NCP’s
only case
Steps to Resolve:
1. Agent receives 90, 60 & 30 day emancipation prompts
2. Review the accounts on the 90 day prompt to determine if CP fee/recoupment
balances are due.
3. If the NCP has only one case, put a 99 day hold on the NCP Financial
Information screen prior to last payment being received (30 or 60 days prior to
emancipation). You must determine when to place the hold based on how the
payments come in (weekly, monthly, etc.). Review the Custodian Recoupment
screen. Information on this screen may prevent funds from holding in escrow.
4. Disposition the last payment received to any CP fee/recoupment balances due.
Approve any remaining funds from escrow. Remove the hold on the NCP Financial
Information screen. If additional fees/recoupment balances are owed by the CP,
mail NCC.
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ERG Procedure 606
Important Note: Do not put a 99 day hold on the NCP Financial Information
screen if the NCP has multiple cases.
Scenario 5: CP requests closure and Income Withholding is in place
Steps to Resolve:
1. If CP comes into the office to request closure, s/he must meet with an agent.
2. Advise the CP of ramifications of closure - lack of enforcement, etc.
3. Only make the case Non-IVD if there is a court ordered IDO obtained outside
DCSS in place.
If any outstanding recoupments/fees remain, mail NCC to the CP and/or NCB and
NCD to the NCP for fees owed.
If the party owing the fees will not pay them so you can close the case, discuss
with your supervisor and/or attorney to determine whether contempt or some other
means of enforcement is appropriate.
4. If case is changed to NonIV-D you must:
a. Leave IDO in place per federal and state law.
b. Leave the current support account and corresponding arrears account open.
Scenario 6: Former TANF CP requests closure - Debt is owed to the State from
previously received TANF benefits or outstanding DCSS Fees
Steps to Resolve:
1. Leave case open for the collection of outstanding debt to the state or unpaid NCP
fees. CP may choose to pay the NCP’s fees in order for case to be closed.
2. If the case has an RA account, advise CP that because these arrears are a part of
CP’s UPA, DCSS will continue to collect that portion of CP’s arrears. If pay source
is Federal Tax Offset involuntary payment, the state will retain. Other pay sources
will disburse to the CP. If the CP’s UPA is $0.00, the RA account can be closed
when the CP requests closure.
3. If the CP will not pay the fees/recoupments, discuss with your supervisor and/or
attorney to determine whether contempt or some other means of enforcement is
appropriate.
Scenario 7: CP ZY Account – Involuntary Payments
Steps to Resolve:
CP ZY accounts are created when a total of $500.00 is collected and disbursed each
year on cases that have never been TANF.
1. View Weekly Funds in Escrow Report (FTAX) (SIDF23PR-1) weekly for funds in
CP escrow from involuntary payments.
2. Look at the Query Account screen to see if the current support account has been
closed and if arrears balances have been paid. This will show that case is in
process of closing. Also, see if the CP ZY account has already been set up.
3. If CP ZY account is set up, submit FAH to place additional hold on receipt(s) with
Email to Tax Offset Unit ([email protected]).
Note: You must ask for the additional hold on the 30th or 180th day or the Friday
before if the 30th or 180th day falls on weekend.
4. Set a prompt to remind you of the date to request the additional hold.
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5. If there is no CP ZY account showing on the Query Account screen, you must
determine if the $ in CP escrow from the tax intercept will create a CP ZY account
once the funds have disbursed to the CP.
6. If YES, you must mail a letter to the CP/NCP advising that the case cannot be
closed until the ZY accounts have been paid.
Important Note: Placing an additional hold on Federal involuntary payment
receipts where a CP ZY account has not been set up is not appropriate. The
account will not be created until the funds have disbursed.
Scenario 8: NCP comes in to the office to pay case in full (Arrears Only) or
Involuntary Payment will pay case in Full
Steps to Resolve:
1. Is there an Annual Maintenance Fee that is owed October 1st thru September 30th?
2. If so and it’s within the same Federal Fiscal Year (FFY), collect what is due.
3. Is the amount the NCP is paying greater than $500 in the new Federal Fiscal Year
(FFY) so that a new Annual Maintenance Fee balance or account will be created
once the money disburses?
4. If so, add Annual Maintenance Fee amounts to the total amount due to pay the
case in full.
5. Agent must include all fee balances plus the FSR processing fee on the case in the
total amount due if the NCP wants the case closed completely.
6. Also inform the NCP of any CP’s fees that are due. Provide NCD to NCP.
7. Put a hold on the NCP Financial Information screen so the CP Fee balances can
be dispositioned from CP escrow prior to disbursing money to the CP. Remember
to remove the hold once the CP’s fees are paid.
8. Annual Maintenance Fee balances are created in a weekly process each Friday
after close of business. Fee payments in R or N escrow should not be released
until at least 14 days after the payment disburses to the CP.
9. If the NCP owes FSR processing fees, you may mail an FIW to the employer to
submit the fees owed.
10. If the fees prohibit closing the case, discuss with your supervisor and/or attorney to
determine whether contempt or some other means of enforcement is appropriate.
Scenario 9: Fees/Recoupments owed on a non paying Non IVD Case
Steps to Resolve:
1. If any outstanding recoupments/fees remain, mail NCB to the NCP for fees owed.
The only fee charged on a Non IV-D case is the FSR Fee. Typically these fees are
stated in the IDO which is sent to DCSS for registering and the employer should
include the additional $1.50 or 5%, whichever is less, with all payments.
2. A lump sum FIW can be sent to the employer to collect the debt/fee owed. If the
current employer on STARS is incorrect we must locate the employer. The case is
not being worked in the same manner as a IV-D case. Locating the NCP employer
is for the purpose of collecting an outstanding debt/fee owed to the state.
3. Regardless of inactivity of the IDO the fee is due. A case may only close if no
fees are owed.
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ERG Procedure 606
Scenario 10: One–Time / Lump Sum FIW – NCP’s only case
Steps to Resolve:
1. If the NCP has only one case, an FIW can be used to collect fees and
recoupments owed by Non-custodial Parents. Reference Policy Pointer #1,
Collection of Fee or Recoupment on Fee / Recoupment Only cases. On the FIW
check One–Time Order / Notice for Lump Sum Payments.
2. Enter the total amount of the fee balance to be withheld in the Lump Sum Payment
field on page 3. Note: The employer is required to deduct a Family Support
Registry processing fee of 5% of the total deduction or $1.50, whichever is less,
pursuant to O.C.G.A. §19-6-33.1. If the Lump Sum Payment is $29.99 or less the
FSR fee will be 5% of the amount.
3. Add a comment on page 5 of the FIW under “Additional Information”. The
comment should read To Collect Outstanding Fees Owed to the State.
4. If the Non Custodial Parent has only one case, a 99 day hold should be entered on
the NCP IRN. This will allow for the payments to be reviewed so that lump sum
payments can be manually posted to the appropriate fee accounts. Caution, when
using the 99 day hold, payments should be reviewed daily to assure the family is
receiving support payments..
5. A Withhold and Deliver should not be used to collect fees/recoupments from
NCP’s wages.
Important Note: Do not put a 99 day hold on the NCP Financial Information
screen if the NCP has multiple cases.
606.03
Code
M
N
O
V
Z
Fee/Recoupment Payment Source Codes
Payment Source
RevMod Fee
FSR Processing Fee
Other Fees (Paternity Test fee, NSF Check fees, Court
Costs, Service of Process fees, Open Records fees,
Fees for copies, etc.)
Annual Maintenance Fee
Application Fee
Paid by
Either CP or NCP
NCP
Either CP or NCP
CP and NCP
Either CP or NCP
Note:
Payment Source of "X" along with Payment Type "N" designates a Federal
involuntary payment fee.
Payment Source of "X" along with Payment Type "E" designates a GA Federal
involuntary payment fee.
Payment Source of “Y” along with Payment Type “E” designates a State involuntary
payment fee.
Payment Source of “1” designates a certified Fee collected by the responding state
on an initiating Uifsa case. These fees are posted by FSR.
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ERG Procedure 606
606.04
Fee/Recoupment Accounts
FEE Accounts
Code
Designation
Annual Maintenance Fee
Application Fee
Attorney Costs
Paternity Test Fee
Court Costs
Federal Involuntary Payment Fee
FSR Fee
IRS Full Service Fee
Location Service Fee
Miscellaneous/Rev Mod Fee
Service of Process Cost
State Involuntary Payment Fee
Recoupment Misapplied Payment
Recoupment Bad Check
Recoupment Tax/Amended Return
606.05
ZY
ZZ
YL
ZB
YJ
ZF
ZR
ZI
ZL
ZM
YS
ZS
RM
RB
RT
Form Names
Form Name
FAH
FIW
NCB
NCC
NCD
FAC
FAD
FAR
FBI
FCP
FLA
FNP
FOR
FRM
FRN
FRR
FTA
Form Description
Approve Hold Request
Income Withholding for Support
NCP Outstanding Debt/Fee Letter
CP Outstanding Debt/Fee Letter
NCP Escrow Agreement Letter
CP Recoupment Installment Agreement
Notice of Dishonored Check
NCP Tax Recoupment Letter
Notice of Recoupment Balance Increase
Notice to CP of Reversal of Recoupment
Liability
SMI Recovery Letter 1
Notice to NCP of Recoupment Liability
Interstate Notice of Recoupment Account
Notice of Overpayment
CP Misdirected Payment Notice
Notice of Appointment to Renegotiate
Recoupment
Federal Tax Adjustment
Last Email Release Date: 1/18/2013
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ERG Procedure 606
FAQs Related to Outstanding Fees/Recoupments
Question 1: If a NonTANF customer owes fees and submits a written request to close
the case, can we refuse to honor their request until the debt/fees are paid in full?
Response 1: If a customer submits a written request to close the case, we must close
the NonTanf support accounts, leave the case in active status, and attempt to collect
the outstanding debt/fees. Furthermore, we can refuse to reopen the NonTANF support
accounts until the fees are paid.
***Note: If case status is changed to closed in error and system zeroes ZY account
balances, request must be submitted to Stars HelpDesk for OIT to reinstate the
balances."
Question 2: Can we assess penalties for not paying the debt/fees?
Response 2: No. We can refuse to reopen a NonTANF case until the debt/fees are paid.
Question 3: Should there be a set time limit to collect debt/fees after current/arrears
stop before we file legal action?
Response 3: Legally you can file legal action the day after current/arrears stop. DCSS
may want to set a DCSS policy on the time frame.
Question 4: Can we make a CP pay debt/fee balances prior to filing Contempt on
NCP?
Response 4: No. If the customer is NonTANF, we can sanction them for failure to
cooperate using ERG Procedure 830. If s/he fails to pay the debt/fees we can close the
case and accounts and attempt to collect the outstanding debt/fees. Furthermore, we can
refuse to reopen the NonTANF case until the outstanding debt/fees are paid.
If the customer is active TANF or Medicaid, we can seek termination of the Family TANF
and/or Medicaid benefits using ERG Procedure 800.
Question 5: Can DCSS stop paying for DNA exclusions?
Response 5: This is a DCSS policy that can be changed; however, the attorneys feel
that we should give the first named Alleged Father a break with DCSS paying for
exclusions. However, following DNA exclusions, we believe genetic testing fees should
be paid up front by the CP if she chooses to name someone else. This would require a
change in DCSS Policy. This would not apply to a TANF or Medicaid CP, but we may
want to consider naming more than two excluded AFs as non-cooperation.
Question 6: Can we put a limit on the debt/fee balance that we continue to collect?
Response 6: Generally, legal and court costs outweigh the costs of outstanding
debts/fees. Setting a limit will require a change in DCSS Policy by our Director’s office.
Another option would be to give these hard to collect cases to a private collection
agency since they would not be paid unless they collected a portion of the debt/fee.
Question 7: Can we have language in the Order addressing payment of fees?
Response 7: Language is already in the Orders released in January 2009.
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ERG Procedure 606
Question 8: Can DCSS adjust the recoupment account balance to $0.00 if the files
have been purged / destroyed due to age and therefore there is no evidence remaining
to prove where the recoupments came from?
Response 8: Unless said debt has been forgiven through the judicial process the debt
must remain on the system. Please consult your Region Financial Manager for further
$tars and Pre-$tars financial research assistance in retracing the origin of older
recoupment accounts.
Question 9: Can DCSS collect when NCP is receiving SSI?
Response 9: If the NCP is collecting RSDI, we are able to collect against this. Debts
will need to remain on the system in case NCP wins lottery, starts working again,
receives a lump sum payment, etc.
Question 10: If a NCP/CP has either moved or been deported back to Mexico can we
collect the debt/fee?
Response 10: The NCP/CP may move back to the United States and/or begin working
in the United States. The debt must remain on the system.
Question 11: Can DCSS collect when the bankruptcy court has discharged the
recoupment/fee against the NCP/CP:
Response 11: A Fee and/or Recoupment account can be discharged in a bankruptcy
case belonging to either the NCP or CP in bankruptcy court. If The State of Georgia
Division of Child Support Services was listed as a creditor, please review if the
recoupment/fee was listed specifically in the Proof of Claim. Please have your local
office attorney research. If the recoupment/fee was listed in the bankruptcy claim, work
with your RFM to close out the account.
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ERG Procedure 606
Best Practices to Collect Outstanding Fees/Recoupments Accounts
1. The local office Agent should mail NCB or NCC once the case becomes active for
fee only. Mail NCD to the NCP to obtain permission to any apply funds in NCP
refund escrow to the fee account balance owed by the CP. Cases must be
actively monitored for collection of fees and closed promptly once fee balances
are reduced to zero.
2. If the court dismisses a case or DCSS is unsuccessful in the court action, DCSS is
responsible for all court costs and service of process fees. DCSS cannot shift the
responsibility of paying these fees onto the defendant without a court order.
DCSS can collect from the custodial parent if the CP is responsible for the case
being dismissed, because the CP is responsible for DCSS case closing. See DHS
Rule 290-7-1-.05 Fees and Collection Procedures. However, we must take into
account that DCSS has limited resources to enforce collection of such fees from
CPs under these circumstances. A FIW cannot be sent to the CP’s employer. The
terms of the Genetic Test Stipulation are enforceable even if the case is
dismissed. Collection of the ZB account may be enforced by Lump Sum FIW or
Order to Withhold and Deliver.
3. If no response or payment is received within 31 days of mailing the notice to the
Obligor, the Agent should reassign the case to the appropriate Region Office User
ID. The local office Agent must review each case for data reliability using the SCR
Data Reliability Form WDR prior to reassigning them to the appropriate Region
Office User ID. Refer to the following link for the Data Reliability Form.
4. The Accountant Paraprofessional (Parapro) reviews the case when reassigned to
the Region Office User ID. The Parapro should try to contact the customer by
telephone. If unable to reach the customer by phone, review STARS for a valid
address and/or email address. If an email address is available, email the NCB,
NCC or NCD to the customer to save postage. If there is no email address, mail
the forms. The office fax number should be provided to the customer for returning
the forms. The Contact Center phone number should be provided since the
response will be recorded.
5. If the address is not valid the Parapro should refer to RPI Locate Work Flow for
Quick Locate Resources. If a valid address, email address or phone number is
found then contact or send the forms to customer.
6. A FIW can be used to collect fees and recoupments owed by Non-custodial
Parents. Reference Policy Pointer #1, Collection of Fee or Recoupments on Fee /
Recoupments Only cases. See Scenario 10.
7. The Fee Only/Recoupments Caseload can be managed by downloading and
DocuAnalyzing the NCP Alpha Report (SIDCQM2R) monthly for the appropriate
Region Office User ID. Cases must be actively monitored for collection of fees and
closed promptly when fee balances are reduced to zero. When all fee balances are
zero the case can be reassigned to the local office closed user ID.
8. Contact your Region Financial Manager for further instruction on managing fee
only cases.
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