BUSINESS OFFICE                                                                                                 44-02-013

DELINQUENT ACCOUNTS

POLICY STATEMENT.

The Division of Veterans Healthcare Services (DVHS) requires each of the New Jersey Veterans Memorial Homes (VMH) to develop and implement policies and procedures for the collection of delinquent accounts (debt) owed to the VMH

PURPOSE.

This policy sets forth the basic responsibilities, principles, and general instructions for the New Jersey Veterans Memorial Homes to adequately manage the collection of unpaid and overdue accounts.

REFERENCE.

New Jersey Department of Treasury, Circular Letter 06-03-OMB, effective 07-11-05; attached here as 44-02-13A.

DEFINITION.

Representative Payee – is a person or organization appointed by Social Security to receive benefits on behalf of someone who cannot manage his/her money because of
their youth or their mental or physical impairment. The main responsibilities of a representative payee are to use the benefits to pay for the current and future needs of the beneficiary, properly save any unspent funds, and report any changes that may affect the beneficiary’s entitlement to benefits. The representative payee also is required to file an annual report with the Social Security Administration that details how the benefits were used.

PROCEDURE.

  1. The Business Office’s computerized internal database system will contain all pertinent demographic data on each resident, and will utilize the resident’s medical record number for the Business Office to utilize for billing purposes.
  1. Each Business Office shall ensure that their computerized internal database system is designed and utilized to track and report on delinquent accounts.
  1. Payment arrangements by the resident or resident’s responsible party may be made with the approval of the Business Manager/designee.
  1. An initial billing invoice shall be sent out to every resident for their monthly care and maintenance fee. When an account becomes delinquent, the following actions will be taken by the stated Department, as per Circular Letter 06-03-OMB:

  1. Business Office:

    1. If the responsible party and/or the resident refuse to pay the delinquent account, the VMH’s Business Manager/designee may notify the Social Security Administration (SSA), the U.S. Department of Veterans Administration (VA), or other outside governmental or private agencies and apply to have the VMH become the Representative Payee for the resident.

    2. Each VMH shall maintain a written record or “log” of all contact attempts made regarding the collection of delinquent accounts. This “Resident Account Communication Log” is attached here as 44-02-013C.  This documentation shall include, but not be limited to:

      1. The manner or method of the contact (e.g. telephone call, letter, face-to-face meeting at the VMH, etc.);

      2. The date and time of this contact;

      3. Who was contacted (e.g. the resident, the spouse, a family member [specify the name and relationship of the family member], the Power of Attorney, the Guardian, etc.).

      4. What was discussed during the contact (e.g. the fact that an overdue balance exists and a repayment plan was proposed, etc.)

      5. What the person contacted stated (e.g. the person agreed to pay the delinquent amount, the person disputed the delinquent amount, etc.)

      6. What, if anything, was agreed to during this contact, and what the next step(s) would be to collect this delinquent account?

      7. The written documentation of collection attempts for delinquent accounts must be maintained, and will be turned over to the New Jersey Department of Treasury should further collection proceedings become necessary.

    3. When an account remains delinquent beyond 30 days of the due date, the Business Manager/designee will send the first dunning letter via regular and/or certified mail to the resident and/or the responsible party requesting payment in full.

    4. If the account remains delinquent beyond 45 days, a telephone call will be placed to the resident and/or the responsible party requesting payment in full or requesting a meeting to establish a payment schedule.

    5. When an account remains delinquent beyond 60 days, a second dunning letter will be sent via regular and/or certified mail to the responsible party and/or the resident requesting payment in full, or requesting a meeting to establish a payment schedule.

    6. If the account remains delinquent beyond 75 days, a second telephone call will be made to the responsible party and/or the resident by the Business Manager/designee requesting payment in full, or requesting a meeting to establish a payment schedule. The Business Manager/ designee shall state that possible discharge procedures will begin if payment in full is not made, or if the party fails to establish a payment schedule.

    7. If the account continues to remain delinquent for 90 days, a final certified letter will be sent to the responsible party and/or the resident requesting payment in full, and telling them that the process to discharge the resident may begin as per N.J.A.C. 5A:5-6.1 (3). Additionally, this letter shall state that this delinquent account is being transferred to the New Jersey Department of Treasury, Division of Revenue for further collection proceedings.

    8. After the 91st day, the Business Office staff shall call the Division of Revenue at (609) 777-1020 to arrange for the account transfer.

    9. The Business Office staff shall then gather together all documentation of the efforts made to collect the delinquent account (including all correspondence received), write a cover letter outlining the steps that have been taken to collect this debt, and send all this information to the New Jersey Department of the Treasury, Division of Revenue.

    10. The Business Office staff shall ensure that any information that will facilitate collection operations is included with the above documentation, as well as all account records which shall be transferred in a generic electronic format such as a text file or a file produced by a commonly used spreadsheet program.

    11. Once the account records are transferred to the Division of Revenue, they shall become the legal custodian thereof and the Division shall be responsible for conducting all collection operations on the account using all available methods. The Division shall also be responsible for the maintenance and disposition of all transferred account records as required by State law, and for safeguarding the records through enforcement of standardized anti-browsing and confidentiality controls.

    12. Any debt collected by the Division of Revenue on behalf of the VMH shall be credited to the account of the VMH that transferred the debt to the Division.

    13. The Division of Revenue may classify an account as “uncollectible” if all appropriate collection options have been exercised and the debt remains unpaid.

  2. Social Service:

    1. When a resident or their responsible party have consistently refused to pay the resident’s delinquent care and maintenance fee, the Social Services Department shall be responsible for discharge planning for that resident.

  3. Department of Treasury:

    1. All documentation of the efforts made to collect on non-tax debt accounts, including all correspondence received, must be retained until the account is either paid off or is approved for “write-off”. An account shall be deemed uncollectible and eligible for write-off only if the Division of Revenue deems the account uncollectible.

    2. One criterion for write-off is that the debt is owed by a debtor that is deceased, and there are no assets in his/her estate from which to collect the sum owed. A copy of the death certificate is required in this instance.

    3. When after a period of one (1) calendar year, the Division of Revenue has pursued a diligent but unproductive collection effort, the VMH Business Manager/designee will notify the Division of Revenue that the account is uncollectible. Subsequently, the VMH will then submit the uncollected account for write-off.

    4. Permission for write-off accounts must be formally requested through the submission of form AR900A for agency internal records only, or Form AR900 for State accounting records, whichever is appropriate. These forms are attached here as 44-02-013B.

    5. The VMH must submit the request for permission to write-off the account, along with a cover letter and a letter from the Division of Revenue deeming the account uncollectible to:

      1. Department of the Treasury
        Division of Administration
        Office of Fiscal Resources
        Special Administrative Services Unit
        P.O. Box 211
        Trenton, New Jersey 08625-0211

    6. The Special Administrative Services Unit has been delegated the authority to review and evaluate each write-off request, whether it concerns agency internal records only or the State’s central accounting system. This review shall permit the on-site inspection of VMH records. This review shall also permit assessments of the VMHs internal systems for debt collection and the VMHs written collection procedures and guidelines.

    7. The Special Administrative Services Unit’s recommendations will be recorded in the space provided on the AR900A or AR900 form.

    8. The form, together with documentation of the VMHs collection effort and results thereof, shall be transmitted to:

      1. Department of the Treasury
        Director, Office of Management and Budget
        P.O. Box 221
        Trenton, New Jersey 08625-0221

    9. The Director, Office of Management and Budget, in accordance with the duties and authorities as outlined in N.J.S.A. 52:24-4 and 52:27B-33 et. seq. shall review the recommendations of the Office of Fiscal Resources, Special Administrative Services Unit and make a formal determination as to the disposition of the account.

    10. All requests for write-off, after review and determination by the Director, will be forwarded to the Accounting Bureau, Office of Management and Budget and will serve as the basis for recording the appropriate entries on State and VMH records.

    11. If the delinquent account is solely on the VMHs internal records, the copy of the approved request will serve as official authorization to remove the account from the VMHs books.

    12. The completed request form will be returned to the Office of Fiscal Resources, Special Administrative Services Unit for notification to the VMH of the final determination of the uncollected accounts.

  4. Confidentiality of Records:

    1. All financial records and information are to remain confidential and not disclosed to unauthorized personnel.

Revised:   June 2011

« Business Office Table of Contents