Refunding debt repayments 107-05140030

To view a customer's repayments, access the customer's record:

• select Debts > Launch Debt Management > view the Debt List screen
• select Repayments > review the Repayments screen for:
• repayment sources
• allocated amounts
• over recovered amounts
• refunded amounts
• reversed amounts

If the refund or refund request is for:

• an over recovered amount, go to Step 2
• a specific repayment, select Repayment Details (on that repayment line), go to Step 3
• FTB instalment arrears, reconciliation or lump sum amounts via the debt offsetting process, approval must be obtained from the National Families and Child Care Level 2 Policy Helpdesk. If the approval:
• is recorded on the customer record, go to Step 3
• not recorded on the customer record, see Step 7 in Table 2 of Offsetting of FTB reconciliation top-ups, supplements and lump sum claim amounts

To action the refund using the Customer Refund action on the Repayments screen:

• select Action > Customer Refund to display the Customer Refund screen

When actioning the refund for FHA debts:

• update the customer’s FHA bank account details if the most recent payment was made outside of 12 weeks. See Changing payment destination
• refund the FHA payment in Customer First

Go to Step 4.

To action the refund using the Refund action on the Repayment Details screen:

• select Action > Refund to display the Refund Repayment screen

In the Refund Method field, select from the following refund methods:

• EFT Electronic Fund Transfer:
• select full refund or partial refund
• review and confirm, or key the amount to refund
• select the Bank Account Details (confirmed in Table 3)
• RFM Refund Manual:
• select full refund or partial refund
• review and confirm, or key, the amount to refund
• use Browse to locate and upload the prepared PDF SF030
• key the Document Name and Description fields

Document the record using the Summary and Content fields:

• Summary field. Select either:
• EFT Refund - Direct Credit
• RFM Refund - Direct Credit, or
• RFM Refund - Cheque
• Content field. Key:
• 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

To complete the refund, 'S'elect Submit > 'S'elect Yes from the confirmation box.

If paying via:

• EFT, refunds will display on the Repayments screen and will appear in the next payment run cycle (generally the following business day). Go to Step 8
• RFM, refunds will display on the Repayments screen when processed by the Accounts Payable Team. Go to Step 7

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

• the prepared PDF SF030 form
• 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
• 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.

Is a Statement of Debt required to advise the customer that their debt balance is $0?

• Yes, issue a Statement of Debt. Procedure ends here
• No, procedure ends here

Is the auto refund status 'pending'?

• Yes, go to Step 2
• No, the refund cannot be cancelled. Procedure ends here

Select Repayment Detail to cancel the action.

Record details of cancellation of refund on a DOC.

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

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 arrears system limit of $6999.99, 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 $6999.99, 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 $6999.99, staff need to:
• escalate to ICT via Digital Assistant Roxy in Process Direct to split the amount exceeding the daily arrears system limit of $6999.99, and
• once split, staff can refund the total repayment amount in instalments less than the daily arrears system limit of $6999.99, 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 the following 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.

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

On the OPRTD:

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

In the:

• Refund method field, 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
• RFM to manually refund (SF030) via direct credit or cheque
• Transfer source type field: key 1 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)
• ALL to refund any repayment source (from WHH, TGN and ESS)
• Amount field, key the refund amount
• Transfer reason field, 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.

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 OPRTD > [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

On the OPRTD screen:

• in the Confirm refund details, field, key Y > [Enter] to confirm and go to the 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:
• the PYAJ screen, go to Step 7
• SF030, go to Step 10
• 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

Before navigating 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]

On the PYAJ warning screen:

• in the Do you want to continue? field, key Y > [Enter] to go to the PYAJ screen

On the PYAJ screen, in the following fields:

• Reason code, key OVO, RRF or ROI
• Debt ID field, key the relevant debt ID
• Source field, key INT
• DOR field, key T > [Enter] to access the Reason field
• Reason for payment field, key the debt ID, refund amount and brief reason. For non-current customers whose bank details have changed ensure to include the customer's new bank account details > [Enter] to go to the Payment Adjustment Confirm (PYAJC) screen

Note: multiple payments can be refunded in 1 action.

On the PYAJC screen:

• Submit field, key Y > [Enter] to finalise

The refund has now been finalised.

Note: if the Debt Staff member’s activity goes to QOL, the refund will not reflect on PS until passed.

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:
• whether a Statement of Debt will be issued
• details of any contact with the customer

Is the payment on PS and DL correct?

• Yes, go to Step 12
• No, get help from Local Peer Support (LPS) if the refund did not pay or is incorrect

Document the record using the SF030 Fast Note and include the content below in the following 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 using Document Tools in Customer First.

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.

Is a Statement of Debt required to advise the customer that their debt balance is $0?

• Yes, issue a Statement of Debt. Procedure ends here
• No, procedure ends here

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 (PD) Customer Refund action.

What action is required?

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

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

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

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.

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 following 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

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
• relevant Operational Blueprint file which supports the decision not to pay any unpaid arrears payment (if applicable)

Access mySupport. The Resources page has a link:

In the search bar, key 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 DMIS OPRH screen or the PD Repayments 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

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

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

If requested in the form, check the DMIS OPRH screen or the PD Repayments 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 DMIS OPRH screen or the PD Repayments 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 OPRTD and PYAJ 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.