Assistance for Isolated Children (AIC) debts 010-25102747

Review the record, then select from the following options:

• To action a debt activity, go to Step 2
• An applicant has advised AIC funds have been paid to an incorrect Third Party Organisation (TPO), see Table 2 > Step 2
• A Third Party Organisation (TPO) overpayments or contact from a TPO about overpaid AIC entitlements, see Table 2
• For debt adjustments, see Changing account details on debts raised in the Debt Management and Information System (DMIS)
• To organise a debt repayment, see Negotiation of debt repayments with customers
• To pause a debt, see Table 2 in Recovery of debts pending a reassessment, explanation or review of decision
• To code a debt write-off, see Temporary write off of Centrelink debts

Is the AIC debt $50 or more?

• Yes, go to Step 3
• No:
• finalise the activity, a less than $50 (LTF) waiver will apply automatically
• procedure ends here

Review relevant information to get a clear understanding of why the decision was made. Refer to:

• Investigating the source and cause of the debt
• Calculating Centrelink entitlements and gathering information when investigating debts

If required, after investigating the original decision:

• process any reassessment required because of new information or errors in the original decision
• if arrears generate for a period within the debt period, adjust the arrears to ensure correct entitlement for the relevant period. For an example of an arrears adjustment, see Restoration of Assistance for Isolated Children (AIC)
• give feedback to the decision maker using the Staff Feedback Tool, as appropriate

Note: for help with debt raising, contact Local Peer Support (LPS).

Is the debt legally recoverable?

• Yes, go to Step 4
• No, see Finalised 'no debt' (FND) or 'zeroing' debts that are not legally recoverable. Procedure ends here

Consider whether the debt is subject to waiver action.

Can the debt be waived?

• Yes, see Waiving Centrelink debts. Procedure ends here
• No, the debt cannot be waived. If the associated debt(s) being raised with the customer:
• is a single debt, go to Step 7
• are multiple debts, go to Step 5

The script will detect if there is more than one undetermined debt.

Consider combining the debts if they have the same reason, and:

• the periods overlap, or
• the periods are consecutive, that is, one after the other

Note: for examples of correct amalgamation of debts, see Actioning an undetermined debt on the Debt Management and Information System (DMIS).

Will the multiple debts be amalgamated?

• Yes, go to Step 6
• No, go to Step 8

To assist in calculating the total debt amount, see Using ADEX to explain a system generated debt.

• If multiple debt periods are found, add all relevant debt totals together to calculate the total debt amount
• After the debt total has been calculated, any remaining undetermined debts will need to be finalised 'no debt'
• Follow the steps in Table 2 in Finalised 'no debt' (FND) or 'zeroing' debts that are not legally recoverable

Note: calculate the total amount for each benefit type and component (Second Home Allowance (SHA), Basic Boarding Allowance (BBA), Distance Education Allowance (DED) etc.) to code the Component Amount (OPCA) screen.

For examples of debt amalgamation, see Actioning an undetermined debt on the Debt Management and Information System (DMIS).

When only one debt shell remains, go to Step 7.

Check the debt to see if any arrears have occurred within the undetermined debt activity. This can be determined by checking the ADEX associated for the debt(s).

Note: if a debt is raised using the MultiCal debt calculator, this information will be displayed under the Debt Report sheet.

An activity may generate a result that includes an undetermined debt and arrears. The arrears may be within and/or outside the debt period.

Arrears that fall within the debt period form part of the debt calculation, and may be used to offset the debt amount.

Arrears occurring outside of the debt period can be used to offset the debt amount, if they are legally payable.

Have arrears been generated within the debt period?

• Yes, go to Step 8
• No, go to Step 9

Determine if arrears can be used to offset the debt. If arrears were:

• inside the debt period displayed on the ADEX, the arrears can be used to offset the debt amount, or
• generated and suppressed within the debt period only and may be used to offset the debt amount, relating to the payee

For debt recalculation examples, see Using ADEX to explain a system generated debt.

Is the final debt amount less than $50?

• Yes, it is not cost effective to pursue recovery, waive the debt using reason code, less than $50 (LTF), see Small debt waivers. Procedure ends here
• No, raise the calculated debt amount, go to Step 9

Check the Activity List (AL) screen for a DMN/NDB activity.

In some cases, the debt activity may be on the student's record, such as when a 'request for refund' has failed to return the payment.

Is the debt shell on the student's record?

• Yes, go to Step 10
• No, go to Step 11

Before raising the debt on the applicant's record, finalise 'no debt' (FND) the undetermined debt on the student's record.

After the undetermined debt has been removed from the student's record, generate a new debt shell on the applicant's record. See:

• Using Debt Scripts in Customer Record, or
• Create a new debt record manually on the Debt Management and Information System (DMIS)

When the debt shell has been created on the applicant's record, go to Step 13.

Contact the applicant to tell them of the debt to be raised, see Debt raising support for customers.

Use the Debt Action script in Customer Record to raise the debt.

Note: if necessary, adjust the text of the Account Payable letter to suit the student's circumstances, see Table 1 on the Resources page in Sending Account Payable letters.

Is the guided procedure/script working?

• Yes, follow the prompts. When completed, go to Step 15
• No, go to Step 12

To manually raise the debt, select the DMN/NDB activity from the Activity List (AL) screen. The Modify/Assess Debt (OPMA) screen will display several populated default fields:

• Debt Id:
• Debt Status:
• Authority: can be updated
• Source of Debt:
• Estimated Amount $: can be updated
• Project code:

Code these fields:

• Reason: key the reason for the debt, see the Resources page for a list of debt reason codes
• Section of Act: key '39' (for Section 39 of the Student Assistance Act 1973)
• Date of Event: key the date the change occurred
• Start Date: key the first date the payee was overpaid
• End Date: key the last date the payee was overpaid
• Calculated Amount $: key the total calculated debt amount
• press [Enter] (3 times)

Go to Step 13.

The system will go to the Account Payable (OPAOD) screen:

• for OPAOD coding, see Table 2 in Sending Account Payable letters
• Contact Name: key 'AIC'
• Contact Telephone: key '132 318'
• in the Nxt field, key 'OPCA'
• press [Enter]

Go to Step 14.

This screen automatically populates for system-based calculations. If the system amount matches the calculated amount, no further action is needed.

Code the component amounts if the calculated amount is different to the system estimate or when manually adding a debt. The component amounts must equal the debt total.

For an example of how to adjust the components so they equal the debt amount, see Step 4 in Using ADEX to explain a system generated debt.

• When all fields are correct, press [Enter]
• The system will go to the Assessment Finalisation (OPAF) screen

To Finalise:

• in the Finished?: field, key 'Y'
• press [Enter] (twice)

Go to Step 15.

Record all details of any related activities or other adjustments taken into account in calculating the debt in a DOC.

There is no need to place copies of the calculations on file. However, if using documents as evidence to support the debt, the documents must be uploaded on the record. See Attaching electronic documents to a Centrelink customer's record.

If the debt was actioned manually, record details of the debt decision on a Fast Note - select Auto text, for:

• Raised debts, use Debts > Debt Raising > AIC Debt Raised
• FND, use Debts > Updates > AIC Finalised No Debt
• Adjustments, use Debts > Updates > AIC Debt Adjustment

Procedure ends here.

Applicants are responsible for repaying any AIC overpayments. In certain circumstances, AIC payments may be recovered from a TPO due to either:

• an administration error
• a change in circumstances advised by the applicant within 14 days, and the funds still issued incorrectly, or
• the TPO contacts and wishes to repay AIC funds they incorrectly received

Does the recovery of AIC funds from a TPO meet one of the above criteria?

• Yes, go to Step 4
• No, no updates are required. Procedure ends here

An applicant may contact and advise funds have been paid to a TPO because of:

an administrative error, or

• a change in circumstances advised by the applicant within 14 days, and the funds still issued incorrectly

Note: when AIC funds have been paid to an incorrect TPO because the applicant has not advised of a change in circumstance within 14 days, the applicant remains responsible for the overpayment.

The applicant may choose to discuss the recovery of funds with the TPO in these circumstances.

Was the debt generated due to a change in circumstances that was not advised within 14 days?

• Yes, raise the debt against the applicant, see Table 1
• No, and the Service Officer is:
• trained in actioning AIC debts, go to Step 3
• not trained in actioning AIC debts, go to Step 5

Debt trained Service Officers must:

• confirm the funds have been incorrectly paid to the TPO:
• select the payment on the Payment Summary (PS) screen
• select Continue
• the Third Party Payment Details (PDD) screen will display the payment destination
• manually raise a debt on the TPO's record for the amount they were incorrectly paid, see Create a new debt record manually on the Debt Management and Information System (DMIS)

Note: funds do not need to be returned by the TPO before reissuing payment(s) to the correct payee.

Is a payment required to be paid to the correct TPO?

• Yes, go to Step 7
• No, go to Step 8

If a TPO contacts and wishes to repay AIC funds they incorrectly received, AIC Processing staff can issue a debt recovery notice.

Are the AIC received funds $50 or more?

• Yes, for Service Officers:
• trained in actioning debts, go to Step 6
• not trained in actioning AIC debts, go to Step 5
• No, go to Step 9

Telephony Service Officers must send an AIC Debt Action Fast Note to the AIC Smart Centre.

For AIC payments incorrectly:

• sent - send the Fast Note on the student's record
• received - send the Fast Note on the organisation's record

Select Auto text, use Debts > Debt Action Referral > AIC Debt Action.

Include all required details which may include:

• the name of the person who contacted and their contact number
• the student's name and Date of Birth (DOB) or CRN (if known) to whom the funds relate to
• the payment type
• the amount
• the date(s) the payment covered
• the date the funds were paid/received
• who received the funds
• the correct payee name and payment destination
• the reason for raising the debt (that is, administration error/TPO wishes to pay)
• the exact amount the TPO wishes to repay (as this may differ from the total overpayment)

Tell the applicant/TPO that these details will be allocated to a Service Officer for action.

Procedure ends here.

Debt trained Service Officers must:

• Manually raise a debt on the TPO's record for the amount they were incorrectly paid or wish to repay, see Create a new debt record manually on the Debt Management and Information System (DMIS)
• Confirm that the future Payment Instructions (PIPI) on the students record are correct, and update if required. See Payee for Assistance for Isolated Children (AIC)
• Record the details on both the TPO and AIC student's record, include the Debt ID

Is a payment required to be paid to the correct TPO?

• Yes, go to Step 7
• No, go to Step 8

To issue the AIC entitlement to the correct TPO payee, the following workaround is required:

• Go to the Benefit Action (BA) screen and update the following fields:
• Svc Rsn: key 'EIC'
• Action: key 'CAN' (Cancel)
• Reason: key 'OTH' (Other)
• Effect Date: key first date of the incorrect payment
• Notes: record any relevant comments
• Source and Receipt Date:
• Go to the Assessment Results (AR) screen and finalise the activity
• Go to the Benefit Action (BA) screen and update the following fields:
• Svc Rsn: key 'EIC'
• Action: key 'RES' (Restore)
• Effect Date: leave blank
• Note: the Effect Date should default to the date of cancellation
• Notes: record any relevant comments
• Source and Receipt Date:
• Confirm that the future Payment Instructions (PIPI) screen has the correct payee, and update if required. See Payee for Assistance for Isolated Children (AIC)
• Go to the Assessment Results (AR) screen and confirm payments are being directed to the correct payee
• When confirmed, finalise the activity
• Record details and all actions taken on a DOC

Go to Step 8.

Updates may be required if there is an undetermined or determined debt shell on the applicant's record for the same period manually raised against the TPO.

Note: if there are over-recovered funds, DMIS will generate an activity for the repaid amount. These activities are automatically mapped to Payment Assurance Operations (PAO).

If the corresponding TPO and applicant's debt are:

• the same value, finalise 'no debt' the applicant's debt using the reason 'Third Party Debt' (TPD), for:
• an undetermined debt, see Finalised 'no debt' (FND) or 'zeroing' debts that are not legally recoverable
• a determined debt, see Table 1 > Step 3 in Changing account details on debts raised in the Debt Management and Information System (DMIS)
• a different value, reduce the applicant's debt by the amount of the raised TPO debt, for:
• an undetermined debt shell on the applicant's record, to raise the correct amount, see Table 1
• a determined debt on the applicant's record that needs to be changed, see Table 1 > Step 3 in Changing account details on debts raised in the Debt Management and Information System (DMIS)

When an organisation debt amount is under $50, the funds cannot legally be recovered.

• Issue a Q999 overpayment waiver to the Organisation, see Creating a Q999 or Q888 letter
• Record all details on a DOC using a Fast Note, see Minimum DOC standards for debt waivers

Procedure ends here.