TN 13 (05-03)

GN 02403.145 Performing the Annual Management Review

A. INTRODUCTION - ANNUAL MANAGEMENT REVIEW

Because the refund and remittance process is a high profile security subject, once each year FO management will review its office's refund and remittance procedures to ensure compliance with POMS instructions.

Compliance with the instructions in this section is evaluated periodically by the Center for Security and Integrity (CSI) Onsite Security Control and Audit Review (OSCAR).

B. PROCESS - ANNUAL MANAGEMENT REVIEW

In performing the review, the manager will ensure that procedures are being followed by:

Checking that entries on all remittance-related forms and listings are properly completed.

Verifying that:

  • Systems input has been made when checks are returned for death, change of address, work, or other reasons;

  • Non-cash refunds received at the reception desk and mailroom are immediately stamped “For Deposit Only, SSA”, or logged by employee receiving the remittance.

  • Medicare premium payments are stamped “For Deposit Only, CMS”, and forwarded to CMS.

  • Remittances, including unendorsed returned benefit checks, are mailed the same day.

  • Remittances are secured after being received in the office.

Ensuring timely follow-ups and consistency between:

  • SSA-1395-BK receipt books,

  • Refund Transmittal Register,

  • Master Control Roster and

  • any remittance logs.

Reviewing:

  • Unverified FO Receipt Alert Listings, ensuring the unverified item(s) are being resolved.

  • FO Daily Receipt Listing, ensuring each was signed by the remittance clerk and the remittance supervisor, and when appropriate, the money order numbers are written under the receipt numbers for each cash remittance listed, and the forms are maintained for one year.

If the SSA-1395-BK and /or SSA-414-U3 procedures were used during the period:

Reviewing:

  • Form SSA-3944 (Master Control Roster), verifying, for example, that serial numbers are properly recorded, names to whom the receipt books are issued are shown, with the issue dates, and that the books are issued in serial number order.

  • SSA-414-U3 (Fee Transmittal Register), ensuring there are no fees waiting acknowledgement from the Office of Finance (OF) for more than 45 days (60 days for OEO), and that no fees were sent to the PSCs, and

  • any Receipt Book Logs.

Comparing the completed SSA-1395-BK receipts with the FO automated receipts.

The FO management will determine the size of the review, and whether more than once a year is necessary, taking into consideration, for example, the experience of office staff, the volume of remittances received, and past problems of which management is aware.

A report on the results of the annual review should be documented and retained in the FO for 3 years. CSI personnel will review the report when they conduct their periodic security reviews. Managers should not destroy the 3 most recent reviews when they move from the office or retire. Leave the reports for the use of the new manager.

The format for the report is shown in the Exhibit.

C. EXHIBIT - MANAGER'S ANNUAL MANAGEMENT REPORT

 

MANAGER'S ANNUAL MANAGEMENT REVIEW

 

PERIOD       THRU      

 

REVIEW SEPARATION OF DUTIES

 

A negative answer to any of the following questions indicates a need for corrective action.

 

 

 YES

 NO

1.

Do you maintain separation of duties with remittance clerks and Third Party Draft Cashier responsibilities?

       

       

 

If NO, have you requested a waiver from CSI?

If YES, to filing a waiver, is a copy of the approved waiver in the office Security Action Plan (SAP)?

       

__

     

__  

2.

Do you ensure that the remittance supervisor does not serve as the remittance clerk?

       

       

 

REVIEW THE PHYSICAL SECURITY OF YOUR RECORDS

 

 

 

 YES

 NO

3.

Are receipt books, Master Control Roster and associated receipt book logs stored in a safe or locked container?
GN 02403.100B.)

       

       

 

REVIEW THE FO DAILY RECEIPT LISTINGS FOR ONE WEEK OF THE YEAR, ANSWER THE FOLLOWING:

 

 

 YES

 NO

4.

Does the remittance supervisor sign each FODRL?
(GN 02403.021)

       

       

REVIEW MAIL HANDLING/RECEPTION DESK PRACTICES

 

 

 YES

 NO

5.

Is mail always opened in the presence of two employees?
(GN 02403.004B.)

If NO, have you requested a waiver from CSI?

If YES, to filing a waiver, is a copy of the approved waiver in the office Security Action Plan (SAP)?

       

___

     

___ 

6.

Does the office maintain a mailroom and reception area log or require that all incoming remittances are immediately stamped to render them nonnegotiable?
(GN 02403.004C.)

       

       

7.

Does management do a daily review of mailroom and reception area logs to ensure logged items have entered the remittance process? (GN 02403.006B., GN 02405.010D., GN 02405.100B.)

       

       

REVIEW THE SECURITY OF REMITTANCES

 

 

 

 YES

 NO

8.

Are refunds and returned checks awaiting disposition maintained in a locked cash box by the remittance clerk?

       

       

9.

Do all remittance clerks have their own cash boxes, with keys kept in a secure area? (NOTE: Keys kept in unlocked desk drawers are not considered secure.)

       

       

10.

Are all remittances, fees, returned benefit checks mailed daily to the appropriate addresses or if unable to be mailed the same day are they secured and mailed the next business day? (GN 02403.006B.)

       

       

11.

Has the FO documented its efforts to resolve unverified remittances by following GN 02403.050C. and GN 02403.050D.?

       

       

12.

Are all personal checks, money orders, or endorsed returned benefit checks stamped “For Deposit Only, SSA?” (GN 02403.006A.)

__ 

__ 

13.

Are all returned unendorsed benefit checks stamped “Not Negotiable?”
(GN 02405.010B.1.)

__ 

__ 

14.

Are all Medicare premium remittances stamped “For Deposit Only, CMS?” (GN 02403.030A.1.)

       

       

15.

Is a cash log entry completed for all cash remittances? (GN 02403.010A. and GN 02403.010B.)

       

       

16.

If cash is not converted to a money order on the day cash is received in the FO, is the FO remittance transmittal or FO daily receipt listing annotated accordingly, and the cash remittance held in a secure location overnight? (GN 02403.009C.)

       

       

REVIEW PHYSICAL SECURITY, DOCUMENTATION AND WORKFLOW

If you have not used or received a receipt book in the last year, skip to Question 28. 

 

Reviewing the Master Control Roster, answer the following:

 

 

 YES

 NO

17.

Does the the packing slip or outside label of the receipt book(s) match the list of receipt books on the Master Control Roster? (GN 02403.090B.2. and GN 02403.095A)

       

       

18.

Are the receipt books returned to the issuer when the users no longer need them?

       

       

19.

Can the SSA-1395 Receipt Book(s) be accounted for? (GN 02403.095F)

If NO, has the Master Control Roster been annotated with the date it was discovered missing and is an explanation of the recovery attached?

       

       

20.

Does the Receipt Book Log show the date of issuance and return for each receipt book in use? (GN 02403.100 and GN 02403.105C.)

       

       

21.

Are the numbers of the receipts used and the date the receipt book was returned to the issuer entered into the receipt book log? (GN 02403.105C.)

       

       

22.

Are the inside covers of receipt books completed, dated, and signed by the issuer?

       

       

23.

Do out-of-office representatives notify management if the remittance clerk or issuer has left for the day, so refunds and receipts can be kept overnight in a secure location? (GN 02403.008B.)

       

       

24.

Are all SSA-1395-BK's present in the completed receipt books? (GN 02403.135)

       

       

25.

Are the original and all three copies of voided receipts accounted for in the receipt books? (GN 02403.135B.1.)

       

       

26.

Do all completed SSA-1395-BK's have cross-referred automated systems receipts attached? Appropriate cross-reference numbers should be on both forms. (GN 02403.130B.)

       

       

27.

Is the receipt book issuer at or above the Operations Supervisor/Management Support Specialist level?

       

       

 

If you have not completed an SSA-414 in the last year, skip to Action Items.

 

 

 YES

 NO

28.

For SSA-414-U3's, are blocks completed for the Social Security Number, Name of Remitter, Amount, Receipt Number, and is the FO return address clearly shown? (GN 02403.013)

       

       

29.

Do all SSA-414-U3's bear the signatures of the remittance clerk and remittance supervisor? (GN 02403.013D.)

       

       

30.

If any unverified SSA-414-U3 is more than 45 days old (for fees sent to OF), or 60 days old for fees sent to OEO, has the remittance supervisor begun the follow-up procedure?

(GN 02403.012B. and GN 02403.012C.)

       

       

31.

Has the FO documented its efforts to resolve unverified fee remittances by contacting OF/OEO? (GN 02403.055C.)

       

       

Action Items:

Evaluation Completed By:

Date:

Retention Period: 3 Years (Do not take the review with you if you leave the field office or retire.)