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Refunding debt repayments 107-05140030

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For staff undertaking debt recovery.

This document outlines information about refunding debt repayments to customers.

DMIS

This page contains process details for Debt Management Information System (DMIS).

On this page:

Manually refunding debt payments

Reverse in DMIS

Stop a customer payment

Action Digitally Enabled Processing (DEP) DOCs

Manually refunding debt payments


Table 1

Expand table

Step

Action

1

View the Debt Transfer Details (OPRTD)

Go to the Debt List (OPDL) screen:

  • 'S'elect the debt that has a repayment for refund
  • in the Nxt field, key OPRTD > [Enter] to view the Debt Transfer Details (OPRTD) screen for that debt

For:

  • over recovered Farm Household Allowance (FHA) debts, go to Step 2
  • all other debts, go to Step 3

2

FHA over recovered debts

Use the Financial Customer Care (FCC) group of guided procedures in Customer First to action refunds of FHA debts.

If the over recovered payment:

  • does not display in the Open Item List FCC guided procedure:
    • escalate to ICT via Digital Assistant Roxy in Process Direct
    • FHA debts must not be refunded via an SF030
  • displays:
    • select Outgoing Payment Request
    • compare the Outgoing Payment Request number with the information in the Payment List FCC guided procedure

FHA refund amounts need to be under the daily system arrears limit of $6,999.99, or they will not issue.

To refund over recovered amounts over the arrears system limit, review the debt repayments received.

Where:

  • the debt repayments were received via multiple instalments, and each instalment was less than the daily limit, staff can refund the over recovered amounts across consecutive days:
    • on the first day, refund the total over recovered amount, less the daily arrears system limit of $6,999.99, and
    • on the next day, refund the remaining amount
  • one or more of the debt repayments was greater than the daily arrears system limit of $6,999.99, staff need to:
    • escalate to ICT via Digital Assistant Roxy in Process Direct to split the amount exceeding the daily arrears system limit of $6,999.99, and
    • once split, staff can refund the total repayment amount in instalments less than the daily arrears system limit of $6,999.99, over separate consecutive days

Select the Text Box and the FHA payment that needs to be refunded:

  • in the Text field, key ‘Refund of Over recovered Pymt’ > Save to process the refund
  • select the tick icon once and copy the Outgoing Payment Request number displayed.
  • in Customer First:
    • check the refund shows as an outgoing payment in the Payment List FCC guided procedure
    • annotate the over recovered DORMFU activity with ‘Do not action – processed on FCC on [insert date]’, and
    • hold for 2 business days

When the DORMFU activity becomes due, record a DOC and include these details:

  • FHA Debt Id
  • FHA Debt $ amount
  • Over recovered $ amount
  • Process refund via SAP
  • Refund $ amount
  • BSB number
  • Account number
  • Outgoing Payment Request number

Procedure ends here.

3

Update the OPRTD screen to identify refund details

The OPRTD screen will display options to transfer or refund a repayment:

  • view the Debt ID to ensure it is the correct debt
  • in the or refund field, key Y > [Enter]

In these fields:

  • Refund method, key one of the following to identify refund method:
    • OVO to refund a debt repayment via direct credit
    • RRF to refund a recovery fee via direct credit
    • ROI to refund an interest charge via direct credit, or
    • RFM to manually refund (SF030) via direct credit or cheque
  • Transfer source type, key one of the following to identify the repayment source:
    • WHH to refund a withholdings repayment
    • TGN to refund a tax garnishee repayment
    • ESS to refund a repayment receipted via ESSentials (excluding tax garnishee), or
    • ALL to refund any repayment source (from WHH, TGN and ESS)
  • Amount, key the refund amount
  • Transfer reason, key the reason for the refund

System arrears limits apply for payments and reissues. There are maximum dollar limits which can be delivered for each payment type.

Payments issued that exceed the relevant maximum dollar limit are rejected by the system, and require reissuing via instalments.

To confirm the OPRTD entries, press:

  • [Enter] to confirm method, source, amount and reason, and
  • [Enter] again to go to the Receipt Selection List (OPRSL) screen

Only Centrelink International Services (CIS) staff are to request overseas bank details for a Centrelink beneficiary and prepare the SF030. See Issuing a one-off payment to a Centrelink beneficiary outside Australia, and Investigating a refund of debt repayments.

4

View and update the OPRSL

The OPRSL screen will display the repayments (on that debt) in descending order from the latest receipt date. The selection of repayment sources is automatic based on the source type selected in Step 3. It is possible to change automatically selected sources.

On the OPRSL screen, view the auto-selected repayment source receipts.

Do the repayment source receipts need to be changed?

  • Yes, change the selections:
    • deselect the repayment source receipts
    • a message will appear advising 'selected receipts total less than amount requested'
    • select other repayment source receipts until the total meets the amount entered on the OPRTD screen > [Enter]
    • in the Confirm field, key Y > [Enter] to confirm and return to the OPRTD screen. Go to Step 5
  • No:
    • in the Confirm field, key Y > [Enter] to confirm and return to the OPRTD screen. Go to Step 5

5

Confirm the refund

On the OPRTD screen, in the Confirm refund details field, key Y > [Enter] to confirm and go to the OPRH screen.

6

View the Repayment History (OPRH) screen

Once confirmed, the refund amount will display on the OPRH screen with the source Blk rfnd.

Check the repayments to ensure the correct amount is adjusted.

Is the adjustment for the correct amount?

  • Yes, and the refund will be actioned via:
  • No, reverse the refund and reissue the correct refund amount. Note: reversing the refund is not possible after it has been finalised on the PYAJ screen, see Table 3 > Step 1

7

Check and update the system

Before going to the PYAJ screen, check the payment system. The system for the refund must match the benefit of the adjusted debt on OPDL. For example, use the FAO system for a FAO FTB NLD refund debt. The Resources page contains a list of payment systems and their linked benefit types.

Check and update the system:

  • in the Sys field, key the relevant system. If required, key the relevant code in the Nxt field > [Enter]
  • in the Nxt field, key PYAJ > [Enter]

8

Refund via the PYAJ screen

On the PYAJ:

  • warning screen, in the Do you want to continue? field, key Y > [Enter] to go to the PYAJ screen
  • screen, in these fields:
    • Reason code, key OVO, RRF or ROI
    • Debt ID, key the relevant debt ID
    • Source, key INT
    • DOR, key T > [Enter] to access the Reason field
    • Reason for payment, key the debt ID, refund amount and brief reason > [Enter] to go to the Payment Adjustment Confirm (PYAJC) screen

Note: multiple payments can be refunded in one action.

On the PYAJC screen, in the Submit field, key Y > [Enter] to finalise.

9

Review the Payment Summary (PS) and Document List (DL) screens

The refund has now been finalised.

Note: if the Debt Staff member’s activity goes to QOL, the refund will not reflect on the PS screen until passed. In these scenarios, the QOL checker must check the PS screen for the reissued payment after the QOL has been completed.

If the refund is not showing on PS screen:

  • select the PYAJ activity from the AL screen (if it has gone back to Started) and finalise, or
  • if there is no activity on the AL screen, recode the PYAJ for the refund:

Review PS and DL to confirm it is correct:

  • check the PS screen to confirm the payment is scheduled and it is going to the correct bank account
  • if required, correct the bank account on PAS which will then update the PS screen
  • check that the PYAJ coding left a DOC on the DL screen
  • annotate the DOC with extra detail, including if a Statement of Debt is issued

Is the payment on the PS and DL screens correct?

  • Yes, go to Step 13
  • No, get help from Local Peer Support (LPS) if the refund did not pay or is incorrect

10

Prepare the SF030

Do not include multiple requests in the same form.

To prepare a refund request using an SF030:

  • complete the SF030 Notice to prepare a Refund Account online, see FAQs when preparing the Refund request form in Payment delivery overview. Include the:
    • amount
    • method (select direct credit or cheque)
    • key the GL Code of the benefit type of the raised debt, see the Resources page in Reissue a payment returned from a financial institution (includes deceased customers)
    • key the cost centre code, 1000298
    • customer name. If deceased, address to 'the Estate of [customer's name]'
    • customer address (cheques will be sent to this address)
    • debt ID, if issued to a third party (for example, Workers Compensation)
    • income support payment (benefit type related to the over recovered debt). Note: refunds less than $10 are automatically transferred to the Trust Fund. If required, use the Trust Fund - Other Trust Monies (TFOTM) option
    • Customer Reference Number
    • bank/financial institution (if direct credit)
    • account number (if direct credit)
    • BSB number (if direct credit), and
    • reason for refund
  • electronically sign or print the form and sign before completing the remaining sections. Include:
    • name of Debt Staff member
    • signature, and
    • date signed
  • spending delegate (APS5 or above) to complete these fields in the SF030:
    • insert signature and date
    • position/title
    • financial delegation/APS level
    • name of spending delegate

Scan the signed form and save as a PDF.

11

Document and upload the SF030

Document the record using the SF030 Fast Note and include the content below in these fields:

  • Ext Detail:
    • SF030 RFM Refund - Direct Credit, or
    • SF030 RFM Refund - Cheque
  • Content:
    • the amount and processing date of the refund
    • refund method
    • customer bank account or address details
    • whether a Statement of Debt will be sent
    • details of any contact with the customer

Upload the prepared PDF SF030 to the customer’s record:

  • categorise the image as UNS005 - Financial, and
  • close the work item

See Attaching electronic documents to a Centrelink customer’s record.

12

Email the SF030

Email Financial Shared Services and cc the spending delegate all of the following:

  • the prepared PDF SF030
  • a screenshot of the Repayment History (OPRH) screen of the customer’s record. Make sure it shows the third party CRN
  • Payment Summary (PS) screen of the third party record, and
  • if the third party’s payment destination has changed, a screenshot of the Payment Destination Summary (PAS) screen

The Accounts Payable Team will process the refund.

13

Send a Statement of Debt

Has the customer requested a Statement of Debt to confirm their debt balance is $0?


Reverse in DMIS


Table 2

Expand table

Step

Action

1

Confirm action

A reversal is possible for some actions completed on the DMIS OPRTD screen.

A refund is not reversible when paid on the DMIS PYAJ screen. The same applies when paid using the Process Direct Customer Refund action.

To:

  • reverse an action completed on the DMIS OPRTD screen, go to Step 2
  • stop a refund paid via the DMIS PYAJ screen or Process Direct Customer Refund action, see Table 3 > Step 1

2

Select the amount for reversal

A reversal is possible for some actions completed on the DMIS OPRTD screen.

Access the customer's record in DMIS:

  • view the Debt List (OPDL) screen
  • 'S'elect the debt that has a repayment for reversal > [Enter] to go to the OPRH screen

On the OPRH screen, select the negative value amount for reversal (the source code will be Blk Rfnd) > [Enter] to view the OPRTD screen.

3

Review the source receipts

On the OPRTD screen:

  • in the Review Selected Receipts field, key Y > [Enter] to view the OPRSL screen
  • review the selected source receipts
  • press [Shift] and [F3] to view the OPRTD screen

4

Confirm reversal

On the OPRTD screen:

  • in the Confirm Reversal field, key Y > [Enter] to view the OPRH screen
  • check the message 'Reversal successfully complete' displays
  • ensure the reversal amount has changed to $0.00

If the reversal is not correct, do not continue to make further adjustments and reversals. Seek assistance before continuing.

Procedure ends here.


Stop a customer payment


Table 3

Expand table

Step

Action

1

Consult with Local Peer Support (LPS)

Consult with Local Peer Support (LPS) to ensure a Stop Payment is appropriate.

Generally, a payment cannot be stopped if it is after the payment delivery strip time.

Requests to stop payments:

  • must be made before close of business on the same day the arrears were generated if the amount is below the system arrears limit
  • can be made later, generally the next day, if the arrears amount is over the system arrears limit. Check the Payment Summary (PS) screen for the status of payments to the customer

2

Stop Payment DOC

Create a Stop Payment Fast Note to explain why the customer is not entitled to the refund. For audit purposes the Centrelink Payments Support Team (CPST) requires this DOC.

The Stop Payment DOC must include:

  • payment type/component
  • amount to be removed/stopped
  • period of the payment to be removed/stopped
  • reason the stop payment is required. Note: recording 'customer not entitled' as the stop payment reason is not sufficient. The DOC must specify why the customer is not entitled, and
  • relevant Operational Blueprint procedure which supports the decision not to pay any unpaid arrears payment (if applicable)

3

Submit the request

Access mySupport and search for Stop Customer Payment:

  • select the Stop Customer Payment form
  • complete and submit the form:
    • follow the instructions in the form
    • provide detail of the payment to be stopped
    • if required, include a request to amend the Process Direct Repayments screen or the DMIS OPRH screen (to reflect that the refund was not paid)
    • if required, include screen shots of the customer's record
  • annotate the Stop Payment DOC with the mySupport SD number

4

Monitor the outcome

CPST will receive the request and attempt to stop the payment. An outcome of the request will be emailed to the Debt Staff member who submitted the form.

Was the Stop Customer Payment request successful?

  • Yes, go to Step 5
  • No, consult with Local Peer Support (LPS) to discuss the how to correct the record

5

Review the customer's record

CPST will amend the PS screen if a payment is stopped.

If requested in the form, check the Process Direct Repayments screen or the DMIS OPRH screen to ensure it reflects that the refund was not paid.

All funds must be accounted for. If OPRH indicates the over recovered amount was refunded but it was not, further action is required.

Consult with Local Peer Support (LPS) if further adjustments to the Process Direct Repayments screen or the DMIS OPRH screen are required as:

  • there may be alternate options to reflect the actions correctly
  • the circumstances and required action will depend on why the refund was stopped
  • for example, an over recovered amount is incorrectly refunded and the Debt Staff member intends to reissue the refund correctly:
    • CPST will stop the refund
    • Local Peer Support (LPS) with the required access will add the over recovered repayment(s) to the same debt via the Add Repayment (OPAR) screen
    • this action on OPAR will return the debt balance back to over recovered
    • the Debt Staff member will then repeat the refund process, coding the OPRTD and PYAJ screens again
  • alternatively, an over recovered amount is incorrectly refunded and the Debt Staff member intends to transfer the amount to another debt:
    • CPST will stop the refund
    • Local Peer Support (LPS) with the required access will add the over recovered repayment(s) directly to the other debt via the Add Repayment (OPAR) screen
    • the over recovered repayment(s) could also be added to the same debt to allow the Debt Staff member to start again, coding the transfer on the OPRTD screen

Procedure ends when all funds are accounted for.


Action Digitally Enabled Processing (DEP) DOCs


Table 4

Expand table

Step

Action

1

Check if refund is required

To action an Investigate Multiple Refunds DOC on the customer’s record, go to Step 5.

To confirm the refund has not already been processed by Digital Enabled Processing (DEP), check:

  • DEP DOC will be allocated via Workload Management (WLM), this will have the relevant Debt ID and Amount
  • Repayment History (OPRH) screen, If DEP has coded the OPRTD this will display refund as a negative amount and the source as Blk Refund - OVO
  • Document Listing (DL) screen for any DOCs, indicating the PYAJ has been completed
  • Payment Summary (PS) screen, the refund will show as Reissue or Arr+rei, if paid with an arrears payment
  • Payment Details (PD) screen, will show Type: Over recovered payment and Reissue under Adv/OTP/Rei/PQN
  • if more than one refund has been made on the same day, the PS/PD screen will show a combined amount
  • the amount by adding all the amounts from the PYAJ DOCs for that day

Is the process incomplete and a refund is required?

2

Coding the PYAJ screen

Staff must ensure they are in the correct system. For example, a Family Assistance debt will be in system FAO.

Before coding the PYAJ screen, staff must refer to Table 3 > Step 3 in Investigating a refund of debt repayments. This will assist in determining if the over recovered amount should be:

  • held
  • transferred to another debt, or
  • refunded

Note: if there is a potential FTB debt, staff must place the DEP DOC on hold. Do not reverse the OPRTD to generate a new work item to hold.

If the refund can be reissued, go to the PYAJ screen in the relevant system. This will show the Payment Adjustment Warnings (PAWS) screen, in the Do you want to continue? field, key Y > [Enter].

On the PYAJ screen, in these fields:

  • Reason Code, key OVO (Over Recovered Repayments)
  • Debt ID, key the relevant Debt ID for the refund > [Enter]. Once the Debt ID is added, the period dates, component and amount details will populate
  • Reason for payment, key ‘Over-recovered funds from Debt ID [number] reissued to customer’

Confirm the details of the payment are correct. In the Submit? (Y/N/Q) field, key Y > [Enter].

3

Confirm the over recovered debt repayment has been refunded

Go to the PS and PD screens and confirm the over recovered debt repayment has been refunded and displays as reissued.

Seek help from Local Peer Support (LPS) or a Quality Development Officer (QDO) if unable to complete the activity.

Staff must not complete the DOC before funds are sent to the customer.

4

Voluntary Arrangement in place

Go to the Payment Arrangement List (OPAL) screen. Is there still a current voluntary arrangement in place?

  • Yes. Use the Debt Recovery script to cease the repayment arrangement. If script is unavailable, manually end the arrangement:
    • on the OPAL screen, 'S'elect the VOL arrangement > [Enter]
    • on the Direct Deduction (OPVD) screen, in the Cease Date field, key T (today)
    • the direct debit arrangement will show on the OPAL screen as VOL CAN
    • procedure ends here
  • No, procedure ends here

5

Investigate multiple refunds

The Digital Worker:

  • may identify multiple refunds paid on a debt. This may indicate the customer is making repayments towards their debt after it has been fully repaid
  • will add a DOC to the record with instructions for staff on the action required

Seek help from Local Peer Support (LPS) or a Quality Development Officer (QDO) if unable to complete the activity.

Is there an Investigate Multiple Refunds DOC on the customer’s record?

  • Yes, investigate the customer’s debt to check if they have been making multiple repayments. If the customer has:
    • been making repayments, attempt to contact them to advise their debts are fully repaid and there is no need for further payment
    • not been making repayments, complete the DOC. Procedure ends here
  • No, complete the DOC. Procedure ends here