SSA - POMS: GN 02403.155 - Investigating Lost Remittances - FO Procedure

A. Background

This section explains the procedures to follow if a remittance is lost and therefore not credited to the overpaid record.

If a Field Office (FO) cannot find a remittance by following GN 02403.050D steps 1 through 9 and it has been more than 60 days since the FO received the remittance, the FO should start the below lost in transit procedures to determine if the check was ever negotiated.

These instructions will address the following types of remittances:

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Personal check or money order
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Cash converted to money order or cashier's check
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Endorsed government check
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Cashier's check, bank draft, or bank money order

For instructions to determine acceptable proof, see GN 02403.150B.2.

B. Missing personal check or money order

This subsection explains the procedures for investigating commercial money orders, postal money orders, or personal checks that the FO received and subsequently lost. If the person is overpaid, the loss of a check or money order in this situation does not alter the fact that the person has remitted the money to SSA and has terminated responsibility for repayment of that part of the overpayment. With proper proof of payment, you may credit the individual's overpayment. However, do not credit the trust fund until it has been established that SSA negotiated the check or money order.

1. Obtain a copy of check or money order

Ask the individual to provide a copy of the front and back of the money order or personal check that shows an endorsement. An individual can trace a postal money order by visiting a post office and completing PS Form 6401. If the individual provides a copy, follow the instructions in GN 02403.155B.2 in this section.

If the individual refuses to request and provide a photocopy of the check or money order, the FO should obtain the photocopy. If you obtain the photocopy, follow the instructions in GN 02403.155B.2 in this section.

If you cannot get a copy of the check or money order, follow the instructions in GN 02403.155B.4 in this section.

2. Examine check or money order

Examine the back of the check to determine if SSA negotiated the check or money order. If check or money order is made payable to SSA, it will be stamped ‘FOR DEPOSIT ONLY’ or ‘FOR DEPOSIT ONLY SSA’ on the back. If check is a U.S. Treasury check made payable to an individual beneficiary and endorsed on the back, it will likely be stamped ‘FOR DEPOSIT ONLY SSA.’

a. SSA negotiated check or money order

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If part of the endorsement shows 'FRB-CLEVE,' SSA deposited the check or money order to the Federal Reserve Bank in Cleveland.
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  Fax the photocopy of the front and back of the negotiated check or money order as a 'bank document' into NDRED. For information on sending documents to NDRED and viewing them in CFUI, see GN 00301.310, GN 00301.313, and SM 00801.000.
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  Contact the MATPSC RAU via email address ||PHI ARC PCO RDDB DMS to have them research their records to determine if they processed the remittance.
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  Type 'Proof SSA negotiated check—Research Request' in the subject line of the email. Provide in the body of the email the account number, receipt number, amount of the remittance, and the date the FO entered the remittance into the Debt Management System (DMS). Advise that a copy of the remittance is in CFUI.
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  MATPSC will verify it processed the remittance, negotiated the check, and will credit the record. Follow the instructions in GN 02403.155B.4 in this section and STOP.
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  Note: If no response to initial email, wait at least 30 days before sending a follow-up email to MATPSC
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If the check or money order endorsement shows 'FRB-BALTIMORE,' SSA likely sent the check or money order to SSA's Office of Finance (OF) in Baltimore for processing as a remittance.
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  Follow the instructions in the bullets above to scan the proof into NDRED and send an email to MATPSC.
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  The MATPSC will work with OF to have the funds transferred to the individual's account. Follow the instructions in GN 02403.155B.4 in this section and STOP.

b. SSA did not negotiate the check or money order

If none of the check endorsements above are shown on the back of the check or money order, or if the check or money order was received by another Federal agency (e.g., IRS), we can conclude that SSA did not receive the money.

To request a replacement check or money order for non-negotiated checks technicians are to take the following actions:

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Ask the individual to make a second remittance, explaining that since SSA did not negotiate the money order or check, SSA has not received payment. If the individual objects to making a second remittance because of the cost involved, see GN 02403.160.
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Tell the individual that if SSA negotiates the original money order or check after receipt of the second payment, SSA will return the amount of the original money order or check.

3. Is a second refund submitted?

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If yes, process as a regular remittance and issue a new receipt, see MSOM DMS 003.006. Whenever possible, process through the Social Security Electronic Remittance System (SERS), see GN 02403.161.

If it is reasonable to assume that the original remittance will not be found, use the Manager Clear Unverified FO Receipt (RMUR) screen in DMS to clear the Unverified Alert when the second refund has been posted to ROAR or SSR, see MSOM DMS 004.012. Enter the Receipt Number and in the cleared field enter 'Y.' STOP.

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If no, obtain a statement from the individual giving his or her reasons for declining to make another remittance. Document the FO development efforts, scan into NDRED, and clear the unverified alert following the instructions in GN 02403.155B.4 in this section. For information on sending documents to NDRED and viewing them in CFUI, see GN 00301.310, GN 00301.313, and SM 00801.000.

NOTE: Call the individual at least three times and send one call-in letter. If you are unable to obtain a statement from the individual, document your attempts and scan into NDRED. Include an explanation of the events concerning the lost remittance and your attempts to obtain a statement from the individual.

4. Document the actions and clear the unverified alert

a. Document actions taken

Document the FO investigation using the Remittance ID field on the Correct Field Office Receipt (RCFR) screen in DMS, see MSOM DMS 003.022. Managers should use the Manager Correct/Delete FO Receipt (RMCR) screen to record FO actions to resolve the discrepancy, see MSOM DMS 004.011. For example, if the alerted remittance was processed or posted to ROAR or the SSR, enter the following information:

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Block and item number from the Remittance File Query display,
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The date posted to ROAR from the history field for TC 31, or
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The date posted to the OPDR field with a TR 1 of HU or HUU

If there is no trace of the remittance in ROAR or on the SSR, document that the lost check procedures were implemented or other action taken and date. Use the Remarks Index (RMKI) screen to enter remarks about the action taken. See MSOM DMS 009.002

b. Clear the alert

Mark the receipt as verified by the FO Manager through an input to the Manager Clear Unverified FO Receipt (RMUR) screen in DMS, see MSOM DMS 004.012. Print any queries reviewed as documentation for the investigation. Once the receipt is marked as verified through RMUR, the receipt will no longer appear on the Unverified FO Receipt Alert Listing. STOP.

C. FO converted cash to money order or cashier's check

This subsection explains the procedure when a beneficiary submits a cash remittance, the FO purchases a money order or cashier's check, and then the money order or cashier's check is subsequently lost.

1.

Contact the issuer of the money order or cashier's check to determine the appropriate replacement and tracing method.

NOTE: The FO will be responsible for securing any duplicate money orders or cashier's checks to replace this type of remittance.
2.

Ask the issuer of the money order or cashier's check to cancel the original payment and issue a replacement. Use third party draft procedures to pay for the stop payment fees if required by the issuing institution, see GN 02403.160.
3.

Upon receipt of the replacement instrument, input the remittance into the system as a new receipt. Whenever possible, technicians are to process remittances through SERS, see GN 02403.161.
4.

Annotate the remittance ID field, 'Replacement payment for receipt number ____ ' (show the first receipt number in the blank).
5.

Destroy the beneficiary copy of the receipt.
6.

Forward the new remittance to the MATPSC if it was not processed through SERS.
7.

Document and clear the alert per GN 02403.155B.4 in this section.

D. Missing endorsed government checks

This subsection explains the procedure for investigating endorsed government checks received in the FO and subsequently lost.

NOTE: Checks cancelled through limited payability are unacceptable as remittances, see GN 02403.005. For an explanation of checks voided under limited payability see GN 02405.300.

1.
Verify the check is still outstanding by using Treasury Check Information Systems (TCIS). If the check is not deposited, initiate stop payment procedures per GN 02408.020.
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  For title II, notify the jurisdictional PSC to initiate stop payment
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  For title XVI, the FO will initiate them
2.
Is the check outstanding?
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  If yes,
  
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  Forward any available documentation to the jurisdictional PSC and request them to credit the beneficiary's account after checking the programmatic system to determine that SSA has not already posted a check cancellation credit.
  
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  Annotate the special message field of the MBR or Remarks field of the SSR: 'Beneficiary was given credit for check(s) number XXX-XXXXXXX, dated XX/XX/XX, in the amount(s) of $XXX.XX, returned on XX/XX/XX.'
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  If no, and fraud is indicated, contact the Center for Security and Integrity in MATPSC for further investigation at ||PHI MOS Ctr Automation and Security. Contact the jurisdictional PSC to request credit to the account for the lost remittance.
3.

Document and clear the alert per GN 02403.155B.4 in this section

E. Missing cashier's check, bank draft, or bank money order

This subsection explains the procedure for investigating bank drafts, cashier's checks, or bank money orders received in the FO and subsequently lost. Proceed as follows:

1.
Did SSA negotiate the remittance?
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  If yes, request a copy of the remittance from the beneficiary then notify the MATPSC to credit the beneficiary or recipient's account at ||PHI ARC PCO RDDB DMS. STOP.
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  If no, ask the individual to secure a duplicate remittance.
2.
Is a duplicate provided?
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  If yes, process as a regular remittance and issue a new receipt, see MSOM DMS 003.006. When possible, use SERS to submit the new remittance, see GN 02403.161.
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  If no, follow the instructions in GN 02403.160.
3.

If the original check, draft, or money order is located later, notify the MATPSC at ||PHI ARC PCO RDDB DMS, Attention: Debt Management Section Chief. When notifying the MATPSC, forward the check, draft, or money order.
4.

Document and clear the alert per GN 02403.155B.4 in this section.

F. References

GN 02403.050 Unverified Alert Process - Remittances

GN 02403.150 Policy for Lost Remittances

OS 00501.415 Lost Remittances within the Processing Centers (PC)

Social Security

Program Operations Manual System (POMS)

GN 02403.155 Investigating Lost Remittances - FO Procedure