“In this lesson, we’ll review the process for payment requests and the responsibilities of Guardianship and Fiduciary staff.
1
The process for payment requests begins with the Guardianship staff.
2
When initiating a payment request, the Guardianship worker will:
Ensure that the request is appropriate and addresses an individual’s legitimate need.
Review the individual’s account to assess if funds are available to meet the request.
3
If both criteria are met, the worker will enter a payment request in KYGFIS along with supporting documentation (e.g., a brief description of the request, good faith estimates for purchases, scanned bills, invoice or receipt for reimbursement of purchases, etc.) for supervisor approval.
Let’s look at a screenshot from KYGFIS showing a payment request:
“Per 910 KAR 2:030, Accounting Provisions for Adult Guardianship, personal needs is defined as follows:
(9) “Personal needs” means an individual’s need to purchase varied goods such as:
Clothing;
Personal care items; or
Social support items such as:
A telephone;
Stationery;
Books;
Snacks; or
Occasional outings.”
What are Extra Personal Needs?
The below are examples of extra personal needs requests, which cannot exceed $450 per month.
EXTRA PERSONAL NEEDS are allowed for up to two consecutive months.
SEASONAL NEEDS are allowed once per quarter. Multiple requests can be entered throughout the quarter if the aggregate amount does not exceed the maximum limit of $450.
BIRTHDAY may be requested no more than two months before the birthday month.
CLOTHING/SHOES MUST be used for clothing and shoes ONLY – screenshots are highly recommended as these funds cannot be used for anything other than clothing/shoes. If anything other than clothing/shoes is needed, the request must be changed to extra personal needs or seasonal needs.
NOTE: Receipts are not required for extra personal needs of less than $100. Estimates/invoices are needed for specific purchase requests.
“Next, let’s look at some quick tips to remember when processing payment requests. You may want to download and save this list for future reference.”
Property and vehicles must be added in KYGFIS under the Assets tab in order to pay taxes or associated expenses.
Make sure payments include account numbers and complete addresses.
All required supporting documentation must be attached when a payment request is submitted.
Receipts for extra personal needs and clothing of $100 or more must be submitted within 30 days of receipt of the check.
Ensure the individual has the right to endorse checks when entering a payment request that is payable to the individual.
Fiduciary has 3 days from the date the field supervisor approves the request to process the payment request.
For checks that need to be pulled or have special instructions, please contact check printing staff and the Payment and Reporting (P&R) Section Supervisor. DO NOT ENTER THESE INSTRUCTIONS IN THE NOTE BOX.
Fiduciary requires itemized breakdowns for any previous balances listed on billing statements that are attached to payment requests. For example, past due utility bills that include multiple months.
All reimbursement requests require a receipt showing proof of payment prior to approval.
All medical or pharmacy reimbursements require receipts and information on who is to be reimbursed. Requests are then sent to the medical/pharmacy email box for processing.
Guardianship staff will receive an internal message in KYGFIS for any payment requests that have been pended.
Fiduciary staff must enter a note in the comment box of the payment request stating why it was pended.
Guardianship staff must notify the Fiduciary staff who pended the request once the issue has been resolved.
“Payment requests are submitted by Guardianship field staff to Fiduciary to ensure that expenses and personal needs of individuals under guardianship are paid timely.”
“Hello and welcome to this Fiduciary Training on Payment Requests. In this course, you will be working with Clair to review the payment request process for Fiduciary staff working with individuals under guardianship. During the course, you will:
Course Objectives:
Examine what payment requests are.
Review the payment request process.
Identify the different types of personal needs.
Discover the types of items that are appropriate for payment requests.”
“Hi, I’m Clair. I work for the Fiduciary Branch and am responsible for processing payment requests for individuals under guardianship. Payment requests are necessary to ensure that the personal financial needs of an individual under guardianship are met. Throughout this course, I will guide you through the payment request process and the requirements for certain types of payments.”
“We’ve covered a lot of important information so far. It’s time to take a quick knowledge check to review what you’ve learned. You must score a minimum of 80% to pass the quiz and continue in the course. You may retake the quiz as many times as needed.”
“You have completed Deposits, Payments, and Transfers. This course is part of a series of training required for Fiduciary staff. Once you mark this lesson complete, you will have access to your certificate of completion and will be granted access to the next course.”
Division of Administration and Financial Management Overview (Complete!)
Fiduciary Duties Defined by Law and Standard Operating Procedures Part 1 (Complete!)
Fiduciary Duties Defined by Law and Standard Operating Procedures Part 2 (Complete!)
Deposits, Payments, and Transfers (Complete!)
Financial Accounting Management
Budget Approvals and Set-Up
Payment Requests
Establishing Payments to Facilities and Service Providers
“All Fiduciary staff who are responsible for performing any of the processes outlined in this section will receive additional on-the-job training from their supervisor or their designee.“
“Now that we’ve reviewed the processes for deposits, payments, and transfers, it’s time to take the final quiz. You must score a minimum of 80% to successfully pass the quiz. You may take the quiz as many times as needed.”
“The Fiduciary Branch prints checks daily to ensure that the needs of individuals under guardianship are met.”
Step 1:
Payment requests are batched for daily check printing on designated dates.
Step 2:
Each batch is carefully reviewed by a designated staff member prior to printing.
Step 3:
The printed checks are mailed or stored in a central, secure location for the appropriate internal staff pickup.
Step 4:
For security purposes, a list of printed checks for any given day is sent to the financial institution for positive pay. This process prevents unauthorized checks from clearing the bank account.
“Per KRS 387.760, Guardianship is allowed to take a 6% monthly compensation fee to support operational expenses. On the 2nd Tuesday of each month, Fiduciary debits a monthly compensation fee from all eligible individuals under guardianship once payments have posted in the database. In this lesson, we’ll examine the requirements for Guardianship compensation, and how compensation is collected.”
“The Fiduciary Branch reconciles bank statements to the KYGFIS database daily to ensure the funds of individuals under guardianship are properly accounted for.”
Designated Fiduciary staff are responsible for reviewing daily transactions, data system deposits, and payments to ensure they match.
All identified discrepancies in deposits or payments are promptly researched for resolution within 3 business days.
If a discrepancy cannot be resolved within 3 business days, the bank will be contacted for assistance.
“Checks that are returned to Fiduciary are reviewed to determine appropriate action needed and to ensure prompt payment or refund to individuals under guardianship. Let’s review the process for handling returned checks.”
Within 3 days of receipt of a returned check, designated Fiduciary staff will identify the reason the check was returned.
Typically, checks are returned due to a lack of identifying information, incorrect address, or wrong check amount.
If a check is returned it is manually corrected, when possible, then mailed.
If the check amount is incorrect, the check is voided and another check is processed. Otherwise, funds are returned to an individual’s account.
An event must be entered in KYGFIS when a check is voided, providing the reason for the void and any actions taken.
“Benefits and Fiduciary staff are responsible for handling and processing income for individuals under guardianship in a safe and secure manner. This includes obtaining income and assets, depositing funds, and timely distribution of payments to meet individual needs.”
Select the image to enlarge.
When checks are received by the Benefits Branch, they are logged onto a Daily Check Log. This log is a spreadsheet located on the department’s Public Drive.
Once checks are logged by Benefits staff, Fiduciary staff receive the checks, initial the check log, and review and verify all checks are received and recorded accurately.
All checks must be entered/deposited by Fiduciary staff in KYGFIS within 3 business days of receipt.
All checks are entered as a deposit transaction with the information from the check.
Checks and supporting documentation are scanned and attached to the deposit transaction in KYGFIS.
Physical checks are endorsed and scanned to the bank for deposit.
Checks received that do not get logged in the system are secured daily in the Fiduciary Branch locked safe.
Automated Clearing House and State Supplementation Direct Deposit
“State Supplementation deposits are also processed via ACH. Let’s take a moment to review how the process works.”
ACH Process:
Step 1:
Fiduciary receives a file from the Kentucky Department for Medicaid Services that contains a breakdown that includes names of individuals under guardianship and the amount to be deposited for the month.
Step 2:
Fiduciary must research all state supplemental deposits received after the 1st of the month through a CHFS accounting database.
Step 3:
A monthly report can be pulled from KYGFIS to verify all state supplemental deposits.
Step 4:
ACH deposits received in error are logged via journal entry and returned to sender.
“CHFS utilizes an Automated Clearing House (ACH) to conduct electronic fund transfers on behalf of individuals under guardianship.
ACH Process:
The process starts with an electronic financial deposit file, sent from an external agency’s bank to the Fiduciary bank account for processing.
Examples of external agencies are the Social Security Administration, Veterans Affairs, pension companies, etc.
Next, the Fiduciary Branch imports the file into KYGFIS for deposit processing.
Once the file is imported, the system verifies the deposit information matches up with transactions within each individual account.
In cases where the system is unable to verify a match, Fiduciary staff will conduct research based on the information given in the file to identify potential errors. E.g., claim number, social security number, individual’s name, etc.
If an individual earns wages and the financial file does not match the system, Fiduciary staff will check identifying information and make needed corrections for a match. “
“Hello, and welcome to this Fiduciary Branch Pre-Service Training. In this course, we’ll review deposits, payments, and transfers handled by the Fiduciary Branch for individuals under guardianship. Today you’ll be working with Chris to better understand how these financial responsibilities are processed and managed.”
“Hello, I’m Chris. As part of the Fiduciary Branch staff, it is my responsibility to help manage payments, deposits, and transfers for individuals under guardianship. I’ll be working with you to help you better understand how these processes work and any requirements that must be met.”
In this course, we will:
Course Objectives:
Define how the Fiduciary Branch utilizes Automated Clearing House (ACH) to conduct electronic fund transfers.
Describe how checks are processed.
Explain the protocol for handling returned checks.
Identify how and when the Fiduciary Branch reconciles bank statements.
Describe Guardianship compensation and how it is collected.
