M E M O R A N D U M

IM-143  10/02/00  DIR DEPOSIT OPTION FOR CC PAYMENT


SUBJECT:
DIRECT DEPOSIT OPTION FOR CHILD CARE PAYMENTS,
DDEP AND DDIQ SCREENS
 
DISCUSSION:
This memorandum builds on E-Mail IM-161, dated November 3, 1999, which introduced changes to the DDEP (Direct Deposit Entry) screen.

ELIGIBILITY FOR DIRECT DEPOSIT

The option of direct deposit for child care payments is available to all:

  • licensed/contracted child care providers,
  • registered child care providers, and
  • parents eligible for reimbursement payments 
with an active bank account.

PAYMENTS

Child care payments generated from child authorizations entered in Legacy (ICAU/ICEA/ICCR) and FAMIS may be deposited directly into the provider's or reimbursed parent's bank account.

FORM REVISION

Agreement for direct deposit form, IM-20, is revised to capture:

  • Provider DVN, and
  • Provider County
Until the revised form, IM-20, is available, continue to use the form with a revision date of February 1997.

Make the following modifications to the current IM-20 to incorporate provider data on the form:

IM-20, Park II modifications:

  • Add the provider's name or facility name in the "Name" field.
  • Add the provider's DVN in the DCN field.
IM-20, Part III modifications:
  • Add provider's name or facility name in the "Customer" field.  Use the provider's name or facility name in which the account is held.
  • Add the provider's DVN in the "Customer DCN" field.
SCREEN REVISION

The DDEP and DDIQ screens are revised.  The "Recipient" and "DCN" fields are removed.  Two new fields:

  • Type of Client, and
  • Client Number
require specific entries in each field.

"Type of Client" requires an entry of one letter code describing the person requesting direct deposit:

D = Recipient
V = Child Care Provider
M = Medicaid Provider

The "Client Number" field requires entry of:

  • The recipient's 8 digit DCN, or
  • The provider's 9 digit DVN.
Sample screen prints of a DDEP entry and DDIQ inquiry are attached to this memorandum.  The attachments are not available on the IMNL version of the memorandum.  Hard copies of the memorandum will follow.

PROCESSING REQUESTS FOR DIRECT DEPOSIT

Providers and parents eligible for reimbursement may request direct deposit of their child care payments by submitting to DFS:

  • A completed "Agreement for Direct Deposit" form, IM-20, and 
  • A voided check showing the account and routing number.
Continue to accept completed applications for direct deposit received by providers in September 1999 from the Children Services Payment Unit in lieu of IM-20 forms.

IMPLEMENTATION OF DIRECT DEPOSIT PAYMENTS

Successful entries of direct deposit requests are validated by the payer's financial institution within ten (10) days of entry.

Providers and reimbursed parents can anticipate that their child care payments be deposited in their bank accounts on the next pay date after bank validation occurs.

Payments for child authorizations entered in Legacy (ICAU/ICEA/ICCR) are processed by CSIPS (Children Services Integrated Payment System).  CSIPS continues to issue child care payments on three scheduled payrolls each month.

Payments for child authorizations entered in FAMIS are processed by FAMIS.  Payments continue to be issued on daily payrolls.

RETURNED OR REFUSED DIRECT DEPOSIT PAYMENTS GENERATED FROM LEGACY AND FAMIS

Direct deposit payments refused or returned by the financial institution are returned to the Division of Budget and Finance (DBF).  Returned payments are recorded in DDIQ.

DDEP information is canceled by DBF upon receipt of a returned or refused direct deposit payment.  These payments are reissued as paper checks until new DDEP data is entered at the county office. 

QUESTIONS ABOUT DIRECT DEPOSIT

Please contact:

  • 1-800-MOFAMIS for questions about child care payments for children authorized in FAMIS, or

    •  
  • the Child Care Policy Unit at 573-751-9488 for questions about child care payments for children authorized in Legacy.
 
NECESSARY ACTION:
  • Review memorandum with appropriate staff.

    •  
  • Begin using revised IM-20 forms upon receipt.

    •  
  • Continue to accept CSIPS generated direct deposit applications in lieu of form IM-20.

    •  
  • Make agreement for direct deposit, IM-20, available to interested providers and reimbursed parents.

    •  
  • Continue to clear questions regarding specific case situations through normal supervisory channels.

    •  
  • Direct questions to 1-800-MOFAMIS or the IM/Child Care Policy Unit at 573-751-9488.
    • DC/DE
    Distribution #6
    Attachments not available online, paper copy only.
    [ Memorandum Table of Contents ]