3.0.230  Lockbox Processing Procedures

Manual Transmittal

October 31, 2014

Purpose

(1) This transmits revised IRM 3.0.230, General - Lockbox Processing Procedures.

Material Changes

(1) IRM 3.0.230.2.1 - Add Affordable Care Act (ACA) Computer Paragraphs Notices

(2) IRM 3.0.230.11.1(6) - Removed obsolete Accounting Package instructions

(3) IRM 3.0.230.11.2 - Removed obsolete Accounting Operation instructions

(4) IRM 3.0.230.12.2.1 - Revised Submission Processing Center (SPC) Receipt and Control / Cashiers Receiving Area Lockbox Document Transmittal (LDT) instructions

(5) IRM 3.0.230.12.5 - Removed obsolete Accounting Package for Redesigned Revenue Accounting Control System (RRACS) Unit instructions

(6) IRM 3.0.230.12.14 - Removed obsolete Blocks out of Balance Report

(7) IRM 3.0.230.14 - Update Terminology

(8) IRM 3.0.230 -1 Update Individual Master File (IMF) Submission Processing Campus/Lockbox State Realignment

(9) IRM 3.0.230 - 5 Update Acronyms

(10) Editorial changes have been made throughout this IRM

Effect on Other Documents

IRM 3.0.230 dated November 18, 2013 (effective January 1, 2014) is superseded.

Audience

All Submission Processing Campuses (SPC), Lockbox Policy and Oversight Analysts, Fiscal Service, Government Accountability Office (GAO), and Treasury Inspector General for Tax Administration (TIGTA)

Effective Date

(01-01-2015)

Paul J. Mamo
Director, Submission Processing
Wage and Investment Division

3.0.230.1  (01-01-2014)
Introduction

  1. This IRM gives the procedures for a uniform method of documenting, reviewing, classifying, and reporting procedural changes under the jurisdiction of the Accounting and Tax Payment Branch.

  2. It provides the monitoring and evaluation methods used by all management levels in the IRS in conjunction with Fiscal Service to oversee and evaluate the Lockbox Sites.

  3. It describes how management in the Submission Processing Campuses (SPC) should handle a Lockbox processing / procedural change after being approved by Accounting and Tax Payment Branch, Headquarters.

3.0.230.2  (01-01-2009)
Purpose

  1. This IRM provides Processing Internal Controls directives and general procedures for tax payments / returns received at the Submission Processing Campus (SPC) from the Lockbox Sites.

  2. The Fiscal Service, a bureau of the United States Department of Treasury, acquires Lockbox collection services for the IRS. The IRS Lockbox network consists of commercial Lockbox Sites designated by Fiscal Service to process federal tax payments.

  3. Lockbox Sites, regardless of their Business Master File (BMF) or Individual Master File (IMF) designation, are expected to process all payments (BMF and IMF) considered processable.

3.0.230.2.1  (01-01-2015)
Lockbox Site Processable IRS Forms

  1. All Lockbox Sites will process payments received with designated IRS forms. Specific procedures and policies are provided to the Lockbox Sites via the Lockbox Processing Guidelines (LPG). Lockbox Sites must provide the necessary services (personnel, facilities, equipment, and materials) to process the payments received with these forms and follow the instructions for returns to be forwarded to the SPC they service. The processable IRS forms are as follows:

    • Form 433–D, Direct Debit Installment Agreement

    • Form 940, Employer's Annual Federal Unemployment Tax Return / Payment Voucher, also Form 940, when the Amended box has been checked.

    • Form 940PR, Employer's Annual Federal Unemployment Tax Return, Puerto Rico*

    • Form 941, Employer's Quarterly Federal Tax Return / Payment Voucher

    • Form 941PR, Employer's Quarterly Federal Tax Return, Puerto Rico*

    • Form 941SS, Employer's Quarterly Federal Tax Return, American Samoa, Guam, the Commonwealth of the Northern Marianas Islands, and the U.S. Virgin Islands*

    • Form 943, Employer's Annual Tax Return for Agricultural Employees / Payment Voucher

    • Form 943PR, Employer's Annual Tax Return for Agricultural Employees, Puerto Rico*

    • Form 944, Employer's Annual Tax Return / Payment Voucher

    • Form 945, Annual Return of Withheld Federal Income Tax / Payment Voucher

    • Form 941X, Adjusted Employer's Quarterly Federal Tax Return or claim for refund

    • Form 943X, Adjusted Employer's Annual Tax Return for Agricultural Employees or claim for refund

    • Form 944X, Adjusted Employer's Annual Tax Return or claim for refund

    • Form 945X, Adjusted Annual Return of Withheld Federal Income Tax or claim for refund

    • Form 1040, Form 1040A, and Form 1040EZ, U.S. Individual Income Tax Return / Payment Voucher

    • Form 1040ES, Estimated Tax Payment Voucher

    • Form 1040NR, U.S. Nonresident Alien Income Tax Return**

    • Form 1040PR, U.S. Self-employment Tax Return for Puerto Rico**

    • Form 1040SS, U.S. Self-employment Tax Return for the Virgin Islands / American Samoa, Puerto Rico / Guam / Commonwealth of the Northern Marianas Islands**

    • Form 1040X, Amended U.S. Individual Income Tax Return

    • Form 1041ES, Estimated Tax Payment Voucher***

    • Form 14039 Identity Theft Affidavit

    • Form 2290, Heavy Highway Vehicle Use Tax Return / Payment Voucher***

    • Form 4868, Application for Automatic Extension of Time to file U.S. Individual Income Tax Return / Payment Voucher

    • Form 8453, U.S. Individual Income Tax Declaration for Electronic Filing

    • Form 8879, IRS e-file Signature Authorization

    • Form 8892, Payment of Gift / GST Tax and / or Application for Extension of Time to File Form 709

    • Form 9465, Installment Agreement Request

    • CP 14H, CP 501H, CP 503H, and CP 523H, Affordable Care Act (ACA) Notices

    • CP 14, CP 501, CP 503, and CP 504, Balance Due Notices

    • CP 521, CP 621, CP 523, and CP 623, Installment Agreement Notices

    • Letter 2850, Installment Confirmation Letter (ICS)

    • Letter 3856 and Letter 3856A, Manually Monitored Installment Agreement (MMIA) Letter / Payment Voucher**


    *Ogden SPC only
    **Austin SPC only
    ***Cincinnati SPC only

3.0.230.3  (01-01-2011)
Scope

  1. The provisions prescribed are limited to Processing Internal Controls directives and procedures in this IRM, the Lockbox Processing Guidelines (LPG) and the Lockbox Security Guidelines (LSG). All SPC functional areas will use this IRM to process and handle work performed by each Lockbox Site. The LPG will be used for all Lockbox payment processing systems and the LSG will be used for all Security Requirements by each Lockbox Site.

  2. The following IRMs and Documents are resources for Lockbox Field Coordinators (LFC):

    • LPG - Lockbox Processing Guidelines

    • LSG - Lockbox Security Guidelines

    • IRM 10.2.11 - Basic Security Concepts

    • IRM 3.24.133 - Residual Remittance Processing System

    • IRM 3.0.167 - Losses and Shortages

    • IRM 3.8.44 - Campus Deposit Activity

    • IRM 3.8.45- Manual Deposit Process

    • IRM 3.10.72- Receiving, Extracting, and Sorting

    • IRM 3.10.73 - Batching and Numbering

    • IRM 25.8.1 - OFP Codes Overview

    • IRM 21.5 - Account Resolution

3.0.230.4  (01-01-2011)
General Instructions

  1. The IRS, Fiscal Service and Lockbox Sites have established a contract to deposit Federal tax payments expeditiously by:

    1. Processing the vouchers and payments and crediting the amount to the United States Treasury's deposit account.

    2. Electronically providing data associated with these payments to the IRS for posting to the taxpayers' accounts.

    3. Forwarding unprocessable items to the IRS SPC.

    4. Sending the "Daily Mail-Out Package" to the SPC. The Lockbox Document Transmittal (LDT) will list the contents of each day's work being shipped to each assigned SPC.

  2. Taxpayers are instructed to send their IMF or BMF tax payments for various forms to post office boxes related to a Lockbox Site.

  3. States are being realigned based on the SPC Consolidation plans. The approved realignment for the 2015 filing season is shown on Exhibit 3.0.230–1.

  4. Changes and recommendations to be incorporated into the January revision of this IRM must be received at Headquarters no later than the preceding June 30 for consideration.

3.0.230.4.1  (01-01-2012)
Lockbox Financial Agencies

  1. Commercial banks are chosen through a process initiated by the IRS and directed by Fiscal Service to serve as Lockbox Financial Agencies for the IRS.

  2. Lockbox Policy and Oversight Section (LPO) provides the procedures and policies to be followed in conjunction with Fiscal Service.

  3. Lockbox Sites are required to follow the instructions for processing payments and all other instructions included in the LPG.

  4. Lockbox Sites are required to follow the instructions for Physical, Personnel, Courier and Information Technology security and all other instructions included in the LSG.

  5. Lockbox Sites are required to follow the software program specifications within the Lockbox Functional Specification Package (FSP).

3.0.230.4.2  (01-01-2014)
Security Standards for Data Protection (Physical / Unauthorized Disclosure)

  1. The Lockbox Site will provide adequate security, equipment, and facilities to safeguard all remittances received, processed, stored, transmitted, and shipped to the SPC as follows:

    1. All Lockbox Security Requirements related to the physical premises, personnel, courier, vendor, and information technology will be followed as specified in the LSG.

    2. An IRS Official Disclosure Statement and a Fiscal Service Non-Disclosure Agreement Sensitive but Unclassified (SBU) information form must be signed for all lockbox positions, to ensure protection of sensitive tax data (SBU) and to prevent disclosure of taxpayer personally identifiable Information (PII) to unauthorized individuals or entities, even if such disclosure is unintentional. Courier employees must sign an Official Courier's Additional Non-Disclosure Statement (IRS).

    3. All new Lockbox Employees must complete a Privacy Awareness Orientation and all Lockbox Employees must attend Annual Privacy Awareness Refresher training. Documentation of completion and attendance of Privacy Awareness initial and refresher training will be maintained in Lockbox Employee Personnel files.

    4. Deposits, consisting of paper remittances, must be packaged in one of the following manners:
      1. Cardboard boxes with heat strapping which can be sealed with an identification number / tag.
      2. Secure in locked metal or plastic boxes with an identification number / tag.

    5. The Lockbox Site is liable for any Financial Agent (FA) settled loss or shortage of funds received and not properly credited to the IRS. (This applies only if the loss or shortage occurs while the remittance is in the Lockbox Site's possession and when they are bank of first deposit.)

    6. All Lockbox Sites are subject to reviews, including unannounced, to ensure all procedures outlined in the LPG and LSG are followed.

  2. Prompt reporting of incidents involving unauthorized disclosure of SBU or PII data, whether willful/intentional or inadvertent/unintentional, and missing taxpayer remittance or sensitive data is critical. The Lockbox sites will follow all Incident Reporting procedures and provide full cooperation with TIGTA, IRS, and Fiscal Service in the investigation and resolution of all incidents. The Lockbox Field Coordinator will ensure the Lockbox Site has followed all reporting procedures.

    1. Inadvertent (unintentional) unauthorized disclosures: report within one hour of discovery to Computer Security Incident Response Center (CSIRC) / Situation Awareness Management Center (SAMC), Fiscal Service Program Office, Lockbox Program Office, Director and Deputy Director of Submission Processing, and Lockbox Field Coordinator.

    2. Willful (intentional) unauthorized disclosures and Unauthorized Access (UNAX) : upon discovery, report immediately to TIGTA, Lockbox Program Office, Fiscal Service Program Office, Director and Deputy Director of Submission Processing and Lockbox Field Coordinator.

    3. Missing remittances: upon discovery, report immediately to TIGTA, Lockbox Program Office, Fiscal Service Program Office, Director and Deputy Director of Submission Processing and Lockbox Field Coordinator. The LFC will notify the campus Remittance Security Coordinator.

3.0.230.5  (01-01-2014)
Accounting and Tax Payment Branch, Lockbox Policy and Oversight (LPO) Section - Responsibilities

  1. Wage and Investment (W&I): Accounting and Tax Payment Branch (ATP): Lockbox Policy and Oversight Section (LPO) has the primary responsibility for management and oversight of the lockbox network and the development of system, security, internal control, processing and reporting requirements. It has responsibility for ensuring the processing, deposit, and security requirements stated in the LPG and LSG are followed by the Lockbox network. Following are specific roles and responsibilities:

    A. Financial Agent Selection Process

    1. Supports Fiscal Service by providing information to be included that reflects the policy requirements of the Internal Revenue Service

    2. Participates in all planning sessions with Fiscal Service

    3. Assists in preparing a time line of activities that will meet the schedule of all parties involved

    4. Provides concurrence with all documents prior to the release to Network Banks

    5. Provides concurrence on any and all changes to the Financial Agent Agreement (FAA) after issuance to Network Banks

    B. Lockbox Processing Guidelines (LPG) and Lockbox Security Guidelines (LSG)

    1. Updates these documents in accordance with tax legislation

    2. Tracks and addresses all suggestions and comments reported during previous filing season

    3. Conducts discussion sessions with Fiscal Service and IRS Subject Matter Experts as needed or requested

    4. Provides drafts of the LPG and the LSG with a "Nature of Changes" page to LPO and Fiscal Service analysts for review and comment

    5. Provides copies of final documents to all users in time for changes to be implemented including Fiscal Service and Lockbox Network Banks

    6. Communicates changes and updates to all users in a timely manner

    7. Provides a process to collect feedback on all requirements

    8. Tracks, coordinates and ensures accurate and timely responses to waiver requests associated with the LPG and LSG

    9. Provides technical assistance to the Lockbox Sites, campus employees, management and other parties utilizing the LPG

    10. Issues Alerts and Lockbox Electronic Bulletins (LEBs) to update documents as necessary throughout the year

    C. Functional Specification Package (FSP) and Lockbox Electronic Network (LEN)

    1. Coordinates with IRS Information Technology (IT) to develop the lockbox FSP (software requirements)

    2. Coordinates with each Lockbox Site to ensure adequate understanding of the software requirements

    3. Coordinates with IT to ensure consistency between Lockbox software specifications and IRS internal software specifications

    4. Coordinates with IRS Enterprise Systems Testing and the Lockbox Sites to ensure adequate and timely testing and certification of Lockbox Sites software

    5. Ensures Lockbox Sites timely receive the FSP and new programs are implemented within required timeframes

    6. Coordinates with IRS IT and Lockbox Sites to resolve Lockbox software production problems

    7. Coordinates with IT on end-of-year (EOY) procedures and sends out a LEB with detailed instructions for each day, including the date the new code will be implemented

    8. Coordinates with Lockbox Sites and IT to ensure electronic network transmissions of taxpayer data from the Lockbox Sites to the Enterprise Computing Center-Martinsburg (ECC-MTB) are accurate and timely

    9. Provides annual certification for each Lockbox Site's software

    10. Monitors transmission of Remittance Processing System (RPS), Remittance Transaction Research (RTR) and RRACS files from the Lockbox Sites to the Enterprise Computing Center - Martinsburg (ECC-MTB) drop box

    11. Coordinates with IT when RPS and / or RTR files error out in Electronic File Transfer Utility (EFTU)

    12. Coordinates with Enterprise Computing Center - Martinsburg (ECC-MTB) and Memphis (ECC-MEM) when RPS or RRACS files are not received or bad files are received requiring re-transmission

    13. Issues information alerts for ECC scheduling when Lockbox sites are working and transmitting RPS files on non-business days (weekends or holidays)

    14. Coordinates with Lockbox Sites in the event RPS, RTR, or Redesign Revenue Accounting Control System (RRACS) files require re-transmission

    15. Coordinates with ECC-MEM and the Lockbox Sites on the submission of RTR media in the event that the RTR files are unable to be transmitted electronically for an extended length of time

    D. Filing Season Readiness (FSR) Preparation and Coordination

    1. Coordinates with Media/Pubs and Publishing Division to test pre-printed vouchers and provides ready for use authorization

    2. Provides voucher specifications to software developers, ensure adequate testing of vouchers and participates in the annual software developer conference

    3. Manages Post Office Boxes for each Lockbox Site with Fiscal Service

    4. Coordinates with Fiscal Service and the lockbox processing Lockbox Sites to ensure the Lockbox Network Post Office Box addresses by form type are correct

    5. Ensures addresses to be posted on the Internet are correct

    6. Coordinates with IRS IT and Forms and Publications to ensure correct lockbox addresses are incorporated in the mail-out tax packages and documents

    7. Coordinates with IRS IT to ensure timely and adequate Systems Acceptability Testing (SAT) and timely software certification of the Lockbox Sites

    8. Determines workload distribution for each Lockbox Site based on each Lockbox Sites capacity and performances in concert with Fiscal Service and the IRS Submission Processing: Coordination and Project Management Branch; Project Management Section

    9. Coordinates in concert with Fiscal Service to validate all Lockbox Sites are certified for operations and have met all security requirements

    E. Review of Lockbox Site - FSR

    1. Calculates the Program Completion Date (PCD) for each IMF Lockbox Site based on expected volume of work and provides PCD information to each Lockbox Site

    2. Provides Lockbox PCD information for each IMF Lockbox Site to the Program Management/Process Assurance Branch of Submission Processing Headquarters

    3. Conducts filing season readiness meetings with Lockbox Sites and SPCs

    4. Updates the Lockbox Readiness Review Plan to reflect needed changes on an annual basis

    5. Distributes the Readiness Review Plan to each Lockbox Site with established timeframes for completion

    6. Conducts an analysis of the Readiness Plans to ensure processing requirements are addressed

    7. Coordinates with each Lockbox Site any required changes, concerns, or issues for resolution prior to the start of the new calendar year

    8. Conducts pre-peak and post-peak meetings with each Lockbox Site and the respective SPC

    F. Performance Measure Reviews

    1. Performs on-site Procedural and Processing Internal Control (PIC) Reviews using the Data Collection Instrument (DCI) at the Lockbox Sites during peak processing periods

    2. Coordinates with Fiscal Service, and IRS Partners (Statistics of Income (SOI), IT, and Agency Wide Shared Services (AWSS) to develop and perform Performance Measure Reviews for IT, Courier, Personnel and Physical Security

    3. Updates all DCIs to accurately reflect new requirements and / or changes in the LPG and LSG

    4. Develops new DCIs for on-site reviews and SPC reviews as new work is brought into the Lockbox program

    5. Compiles and analyzes data from on-site and the SPC DCI reviews to monitor the quality of Lockbox processing

    6. Prepares and submits the Lockbox SPC DCI to the IRS, SOI by the 15th of every month

    7. Prepares and submits the Procedural and PIC DCIs to SOI by the 15th of the month following all peak and non-peak visits to Lockbox Sites

    G. Reporting

    1. Updates the Daily Deposit Production / Office of the Assistant Secretary (OFAS) report as new work is brought into the Lockbox program

    2. Monitors, on a daily basis, productivity and inventories using the Daily Deposit Production / OFAS Report submitted by each Lockbox Site and the Lockbox Daily Deposit Cycle Report

    3. Coordinates resolution of issues identified with the Lockbox Site and Fiscal Service

    4. Prepares a weekly production report during Business Master File (BMF) (January) and Individual Master File (IMF) (April) peak periods

    5. Prepares, monitors, and updates the Financial Facts (Fin-Facts) report

    6. Prepares, monitors, and updates on a daily basis the Minimum Daily Processing Capacity (MDPC) and PCD report during the IMF and BMF peak processing periods

    7. Monitors all critical and external non-critical incident reports

    8. Monitors and manages all security issues to ensure adequate and timely resolution

    9. In concert with Fiscal Service, IRS, AWSS and IT prepares and monitors security review reports for Lockbox Site response to findings or issues

    10. Manages all Security Plan of Action and Milestones (POAM) issues / findings and ensures appropriate reporting of the status of each issue

    H. Oversight

    1. Develops specific oversight guidelines, quality improvements and control programs in conjunction with Fiscal Service

    2. Reviews compliance with LSG requirements

    3. Monitors the quality of each Lockbox Sites' performance and reviews compliance with LPG requirements

    4. Analyzes all program review reports on all oversight visits and shares results with Fiscal Service

    5. Coordinates with Fiscal Service to conduct an analysis of peak performance that includes data collected by IRS analysts and Fiscal Service

    6. Coordinates with Fiscal Service to conduct post peak meetings with each Lockbox Site to review their performance quarterly

    7. Supports the SOI analysts with the anomaly detection process

    8. Makes recommendations on ways to improve Lockbox oversight and discusses issues of concern with Fiscal Service

    9. Responds to inquiries from internal and external stakeholders as needed

    10. Works with TIGTA, the SPC Remittances Security Coordinator (RSC), and Fiscal Service to ensure taxpayer's accounts receive timely reimbursement of any lockbox theft or loss

    I. Lockbox Continuity of Operations

    1. Works in concert with Fiscal Service to develop and implement a Continuity of Operations plan (COOP)

    2. Works with Fiscal Service, Lockbox Sites, and SPC to coordinate testing of COOP

    3. Provides field support to the contingency Lockbox Site when a COOP is implemented

    4. Provides 24/7 primary contacts to the Computer Security Incident Response Center / Situation Awareness and Management Center (CSIRC / SAMC) process

    5. Updates CSIRC / SAMC when contacts change. See Security MOU for details on the CSIRC / SAMC process

3.0.230.6  (01-01-2012)
Mandatory Lockbox Review Trips

  1. Following is a chart designating Mandatory Review trips by LFC Analysts. It lists the peak dates and type of payment with form number to be processed by the Lockbox Sites.

    MANDATORY TRIPS - IMF COORDINATORS
    APRIL PEAK April 15 - 1040, 1040ES, 4868 processing
    UNANNOUNCED Review - dates to be determined by LFC and LPO.
    MANDATORY TRIPS - BMF COORDINATORS
    JANUARY PEAK January 31 - 94X processing
    UNANNOUNCED Review - dates to be determined by LFC and LPO.

3.0.230.6.1  (01-01-2009)
Declaring IMF Program Completion Date (PCD), BMF Peak Completion (PC) and Peak Sweep

  1. IMF Lockbox Sites receive a PCD from IRS in which to complete receipts received during IMF April peak.

  2. BMF Lockbox Sites are required to be on a 24-hour deposit schedule (January peak only) before Peak Completion (PC) is declared.

  3. IRS in conjunction with Fiscal Service (if available) must complete a sweep of the facility before PCD / PC is declared. Refer to LPG for specifics.

  4. The LFC will declare when PCD/PC has been met after the sweep. If no LFC is present, an on-site IRS representative will declare when PCD / PC has been met.

3.0.230.7  (01-01-2014)
Bogus or Questionable Remittances

  1. Lockbox Sites may receive bogus remittances that resemble checks and money orders. They follow the procedures outlined in the LPG.

  2. Lockbox Sites will place bogus remittance in envelope and annotate "Potential Bogus Remittance" and place envelope in the Unprocessable with Remittance package to be sent to the SPC.

3.0.230.8  (01-01-2009)
Areas of Impact

  1. Submission Processing functional areas impacted by Lockbox Sites are Receipt and Control, Error Resolution, Unpostables, Accounting, Submission Processing Improvement Team and Notice Review; Information Technology (IT), Accounts Management, and Field Compliance may also be impacted by Lockbox processing.

3.0.230.8.1  (01-01-2012)
Accounts Management Operations

  1. Customer service representatives must alert management of unusual taxpayer complaints regarding Lockbox processing.

  2. Report any potential theft/embezzlement to the TIGTA Office of Investigations and the Remittance Security Coordinator (RSC) found on the Submission Processing Website under Campus Security.

  3. Follow all procedures outlined in IRM 21.5.7.4.6.8, Altered and/or Stolen Taxpayer Payments.

3.0.230.8.1.1  (01-01-2009)
Encoding Errors

  1. Accounting Operations corrects Lockbox encoding errors and reports the errors each month to the LFC. Refer to IRM 3.17.10, Dishonored Check File (DCF) and Unidentified Remittance File (URF).

  2. The LFC provides Statistics of Income (SOI) a consolidated monthly report of Lockbox encoding errors and Lockbox reviews performed by the SPC.

3.0.230.8.1.2  (01-01-2011)
Payment Tracers

  1. A payment tracer case is generated when a taxpayer inquires about a payment which has not been credited to his account. The taxpayer usually has received an erroneous notice.

  2. Accounts Management and Field Compliance are responsible for the preliminary processing of payment tracer requests. Instructions for processing these requests are contained in IRM 21.5.7, Payment Tracers.

  3. If preliminary research does not result in locating the payment, the case will be forwarded to the Hard Core Payment Tracer Unit.

  4. Depositaries are given 21 calendar days to respond to SPC inquiries concerning deposit issues. If a timely response is not received, notify the LFC.

3.0.230.8.1.3  (01-01-2009)
Balancing and Control Function

  1. The Balancing Unit will receive a copy of the journal package prepared by the Revenue Accounting Control System (RACS) Unit.

  2. The deposit amount from the Lockbox Deposit Ticket is added to the deposit amount from the regular RPS Deposit Recap RPS 03-42.

    • This amount should agree with the totals on Service Center Control File (SCCF) 11-43, RPS IMF Control Date Recap / Master Control Records

  3. Contact the LFC if there is a discrepancy between the totals attributable to Lockbox.

3.0.230.8.2  (01-01-2009)
Correspondence (General)

  1. Written correspondence received at the Lockbox from taxpayers, or representatives is forwarded daily to Receipt and Control. Receipt and Control follows their IRM 3.10.72, Receiving, Extracting, and Sorting, to deliver this work to be processed through the normal pipeline. Refer to IRM 21.3.3, Incoming and Outgoing Correspondence/Letters, for additional information.

3.0.230.8.3  (01-01-2011)
Remittance Transaction Research (RTR) System

  1. The RTR system is a researchable database containing remittance processing data and images from Lockbox Sites, Integrated Submission Remittance Processing (ISRP), and Remittance Strategy for Paper Check Conversion (RS-PCC). All Operations in Submission Processing and Accounts Management should refer to IRM 3.5.10, Remittance Transaction Research (RTR) System, for specific instructions on using this system.

3.0.230.8.4  (01-01-2013)
Error Resolution System (ERS)

  1. Images of processed documents will be available for research on the RTR system. Documents are identifiable as scannable and non-scannable by the file location codes.

  2. Transactions that fail the generalized mainframe (GMF) math error, consistency and validity checks are generated for correction to ERS.

  3. Instructions for resolving these errors are contained in IRM 3.12.10, Revenue Receipts.

  4. Notify the LFC if there is a significant increase in ERS volume relating to Lockbox processing.

  5. Remittances that are received at the lockbox site and do not contain all processing information (Taxpayer Identification Number (TIN), Name Control, Tax Year or Tax Type (MFT) are forced to Error Resolution for correction and research. Instructions for handling and processing of these documents are contained in Error Resolution IRM 3.12.10, Revenue Receipts.

3.0.230.8.5  (01-01-2009)
Unpostables

  1. Lockbox transactions are processed and matched against IMF and BMF data on the Master File.

  2. Transactions that fail to match master file validity and consistency checks will generate a list to the Unpostable Unit for corrective action.

  3. Instructions to correct unpostable conditions are in IRM 3.12.179, IMF Unpostable Resolution, IRM 3.12.279, BMF/CAWR/PMF Unpostable Resolution, IRM 3.13.122, Individual Master File (IMF) Entity Control Unpostables, and IRM 3.13.222, BMF Entity Control Unpostable Correction Procedures.

  4. Unusually large volumes of errors in certain unpostable category codes may indicate a need for additional training and / or revisions to LPG and / or IRMs. The Unpostable Unit must notify the LFC when volumes are above average.

3.0.230.8.6  (01-01-2014)
Notice Review

  1. The Notice Review process ensures the information received from taxpayers is complete and correct, and no taxpayers receive an erroneous refund.

  2. The Notice Review function will receive IMF, BMF, and Integrated Data Retrieval System (IDRS) Computer Paragraph (CP) Notices. These notices may be selected for review by Notice Review Processing System or IDRS Review Notice Register.

  3. Notices are generated to taxpayers when adjustments have been made to their account(s).

  4. Instructions for researching Lockbox payments is included in IRM 3.14.1, IMF Notice Review and IRM 3.14.2, Business Master File (BMF) Notice Review.

  5. Unusually large volumes of errors resulting in notices may indicate a need for additional training and / or revisions to Lockbox Processing Guidelines. Notify the LFC when the volumes are above average.

  6. The file location code in the DLN of the audit trail will be the indicator of Lockbox processing. See Exhibit 3.0.230-3.

3.0.230.8.7  (01-01-2010)
Information Technology (IT)

  1. This section contains instruction for Lockbox Electronic Network (LEN) RPS File Transmission.

3.0.230.8.7.1  (01-01-2011)
Lockbox Electronic Network (LEN) RPS File Transmission

  1. Lockbox RPS0103, RPS0505, RPS0523, and RPS9701 files will be transmitted daily via the LEN.

  2. These files will be received at a ECC-MTB drop box where they will be picked up at the top of every hour and sent to either ECC-MTB (Austin and Ogden) or ECC-MEM (Cincinnati, Fresno, Kansas City).

  3. Each center may establish print requirements for any of the RPS files.

  4. In the event the LEN will be unavailable for an extended period of time and the Lockbox Site cannot transmit its RPS files electronically, the LEN coordinator will open a KISAM ticket and coordinate any necessary re-transmissions.

3.0.230.8.8  (01-01-2010)
Quality Review / Improvement Team

  1. The Improvement Team assists the LFC in ensuring the Quality Standards listed in the LPG are maintained. The assistance is to be provided through in-house program, process, Lockbox Service Center, and Deposit Error Rate (DER) reviews. When errors are identified the Improvement Team will take the necessary corrective actions to the taxpayers accounts.

  2. Instructions on the use of DCI and the Review Process are included in IRM 3.0.230.12, Submission Processing Campus Quality Review of Lockbox. Contact the LFC if you have any questions regarding the reviews and use of DCIs.

  3. The Improvement Team ensures the work being processed by the Lockbox Sites is within IRS standards. The reviewers will examine critical processing elements which could cause a work stoppage, and make recommendations for improvement if processing guidelines are not accurate. Refer to IRM 3.0.230.12, Lockbox Processing Procedures, Quality Review of Lockbox and IRM 3.0.275, Business Results Measures for Submission Processing Functions.

3.0.230.9  (01-01-2010)
Reporting Requirements

  1. Lockbox Sites are required to report total dollars and items deposited via the Daily Deposit Production / OFAS Report to Headquarters.

    Note:

    The word daily means any day Lockbox Sites are working including Saturday, Sunday and holidays.

  2. Deposits made on Monday, Tuesday, Wednesday and Thursday must be reported to Headquarters by the following day.

    Example:

    Tuesday's deposit will be reported Wednesday morning; Wednesday's deposit reported Thursday morning, etc.

    Note:

    Remittances for Friday, Saturday, Sunday and holidays must be deposited the next business day.

3.0.230.9.1  (01-01-2009)
Daily Deposit Cycle Report

  1. IRS management uses the Daily Deposit Cycle Report (DDCR) to monitor the deposit activities and cash management practices.

  2. The DDCR is also used to monitor the Lockbox deposits made on a daily basis to ensure Lockbox policies and processing guidelines are being followed.

3.0.230.10  (01-01-2009)
Embezzlement / Theft

  1. The Submission Processing Directors will NOT be held accountable for any theft / loss that occurs at the Lockbox Site. (Credit can not be issued from Accounts 7610, 7620, or 7650.) The LPG states that the Lockbox is liable for funds received and not properly credited to the IRS.

  2. When an IRS employee or manager identifies or suspects a revenue receipt shortage, they should immediately contact TIGTA and follow the instructions in IRM 3.0.167, Losses and Shortages.

  3. The Lockbox Site is required to ensure adequate controls exist to minimize or prevent instances of theft or loss due to embezzlement or employee negligence.

  4. The Lockbox Site will immediately notify, TIGTA, Fiscal Service Program Office, IRS Lockbox Program Office, CSIRC, the Director and Deputy Director, Submission Processing, LFC, and the local Remittance Security Coordinator within one hour of the discovery of a missing remittance or taxpayer PII.

  5. Lockbox Site management will obtain a statement from the employee who discovers the theft / loss. The report will contain the following:

    1. Date the loss / shortage occurred or discovered.

    2. The amount of the loss / shortage.

    3. The type of tax or fund in which loss / shortage occurred.

    4. The circumstances involved with the loss / shortage.

    5. The involved employee's signature, position, title, and the date the statement is prepared.

3.0.230.10.1  (01-01-2013)
Remittance Security Coordinator (RSC)

  1. Each SPC has selected a member of the Planning and Analysis Staff as the RSC.

  2. If the LFC is notified that a Lockbox theft has occurred, then the coordinator must notify the RSC. The RSC is the individual responsible for centralized control, coordination and protection of taxpayers for potential embezzlement / theft cases. Refer to IRM 3.0.167, Losses and Shortages.

  3. The RSC will coordinate the theft / shortages with TIGTA, Submission Processing Director, Headquarters Losses and Shortages Analyst, Receipt Loss Coordinator, LFC, and Hard-core Payment Tracer Unit.

    Note:

    Report any potential embezzlement / theft(s) to the Treasury Inspector General for Tax Administration (TIGTA) Office of Investigations at 1–800–366–4484 (TIGTA Hotline Information) and the local Remittance Security Coordinator listed on the Submission Processing Website under Campus Security http://win.web.irs.gov/SP/Security_Info_&_Internal_Control/Remittance_Security_Coordinators.htm.

  4. SPC and Field Offices are to report any potential embezzlements / thefts immediately to the RSC so the RSC can ensure taxpayers are protected from adverse action while the case is investigated.

  5. Advise the respective SPC LFC when the potential loss may involve a Lockbox Site.

3.0.230.10.2  (01-01-2011)
Lockbox Tax Remittance Losses

  1. Any remittance stolen, altered or embezzled during the Lockbox tax payment process may occur under the following conditions:

    • Endorsed and made payable to someone other than the IRS

    • Embezzlement, misappropriation or other criminal acts

    • Lockbox employee negligence

    • Deposit discrepancies (encoding errors)

    • Deposit loss in transit

    • Theft (remittance stolen to obtain taxpayer identity and / or cash)

  2. LFCs will receive available information and documentation regarding the theft / shortage of tax collection from TIGTA and / or the RSC.

  3. The LFC will then report the theft / shortages of any tax collection received at the Lockbox System for IRS if reimbursement from the Lockbox Site is being requested. Use the Lockbox Remittance Theft Report. See Exhibit 3.0.230-4.

  4. Fax a copy of this report and required documentation (copy of altered check and information verifying perpetrator was connected to the Lockbox Site, if known) to the LPO Analyst.

  5. Coordinate resolution of the Lockbox cases with LPO analyst on a case-by-case basis.

  6. When notified, the LPO analyst is required to:

    1. Notify Fiscal Service.

    2. Verify TIGTA has been informed.

    3. Prepare a request-for-reimbursement letter to include taxpayer's name, TIN, dollar amount, taxpayer's SPC location, telephone number, a copy of the front and back of the check and a copy of the TIGTA preliminary report to Fiscal Service within 30 days.

    4. Set up a control file and prepare a quarterly theft report for submission to Fiscal Service.

  7. If, after one year no evidence is discovered which implicates an employee of the Lockbox Site in the theft, embezzlement, or subsequent negotiation, the LFC will:

    1. Request a manual refund for the Lockbox Site on Form 3753, Manual Refund Posting Voucher.

    2. Send Form 3753 to Accounting Operations for approval and processing. See IRM 21.4.4, Manual Refunds (this is the primary IRM for manual refunds initiators) and IRM 3.17.79, Accounting Refund Transactions (this is the primary IRM for Submission Processing), for additional information on the issuance of the manual refund.

  8. If the Lockbox Site has been reimbursed as described above, and it is subsequently determined that the Lockbox Site was responsible for the misappropriation:

    1. Lockbox Policy & Oversight Staff will notify Fiscal Service to request repayment from the Lockbox.

    2. Repayment will be made to the General Fund, General Miscellaneous Receipts, Account 2320 with a SF–215 (Deposit Credit Voucher) annotated "FOR DEPOSIT TO GENERAL MISCELLANEOUS RECEIPTS, ACCOUNT 20-3220 LOCKBOX REIMBURSEMENT" in the Agency Use comments section.

3.0.230.10.3  (01-01-2010)
Lockbox Reimbursement Policy

  1. IRS will initiate a reimbursement process when there is a significant impact to taxpayers or the government resulting from:

    • Internal control deficiency

    • Processing error(s)

  2. The SPC will notify the LFC of the incident.

  3. The LFC will notify LPO Section and provide information of its potential impact.

  4. The LPO will approve recovery / rework program code 85380 for SPC use.

  5. The LFC will monitor the use of program code 85380.

  6. The LFC will advise the Lockbox Site of the situation and request an Incident Report be prepared to document the situation. In addition, the Lockbox Site will research the cause of the problem and develop a method to avoid the situation in the future.

  7. The LFC will submit a quarterly report to the LPO section outlining program code 85380 volume and hours.

  8. LPO and Fiscal Service will determine disposition of reimbursement. If the recommendation is reimbursement, Fiscal Service will initiate recovery of funds from the Lockbox Site.

3.0.230.11  (01-01-2013)
Lockbox Daily Mail-Out Package

  1. The Lockbox Site will forward daily, via courier, all work processed during the current day's activity. Lockbox Document Transmittal (LDT) will list the contents of the mail-out package, and will be addressed to specific functional areas. The document contents will include:

    1. All unprocessed with remittance and non-remittance work. (Remittances must be packaged separately.)

    2. All returns sorted and volume processed by sort type

    3. LFC Package (if shown on Lockbox Document Transmittal (LDT)

    4. Address change cards or Forms 8822 (Postal Service Change of Address) and photocopies of CP 521 and CP 523 vouchers with address changes

    5. Incompletes Envelope (route to Error Resolution) following local procedures for your SPC

    6. Form 14039, Identity Theft Affidavit (if shown on LDT)

  2. After one year, destroy Lockbox Document Transmittal (LDT) and Form 3220, Mass Media Storage Transmittal.

3.0.230.11.1  (01-01-2015)
Receipt and Control Operations

  1. Receipt and Control Operations is the central point for receipt of the mail-out package from the Lockbox. An employee from Receipt and Control or other designated personnel is responsible for ensuring the mail is received and all Lockbox work is distributed to the SPC functional areas.

  2. Mail received will be opened daily. A100 percent review of the mail-out package is performed daily upon receipt by an employee in Shipping and Receiving or Receipt and Control Operations.

  3. The mail-out package must be received no later than 12:00 p.m. daily in shipping containers. Contact the LFC if any items are missing from the containers or if the shipment is received after 12:00 p.m.

  4. The LPG specifies packaging / distribution / reporting instructions. Contact the LFC for specific instructions if necessary.

  5. Maintain the daily LDT in a file for the LFCs to review.

3.0.230.11.1.1  (01-01-2010)
Unidentified Large Checks

  1. Submission Processing Campus (SPC) will provide additional research on unprocessable checks of $5,000 or greater for the Lockbox Sites.

    Exception:

    IMF Sites large dollar amount will be $1,000 or greater for the months of:
    • February
    • March
    • May
    • July
    • August
    • October
    • November
    • December

    Note:

    The Lockbox Site and / or Submission Processing Campus must comply with the $1,000 tolerance whenever possible. However, if staffing and / or volumes impede the process, the Lockbox Site and / or Submission Processing Campus can revert back to the $5,000 tolerance when necessary. The Lockbox Site and / or Submission Processing Campus must notify their LFC when a change occurs.

    Exception:

    BMF Sites large dollar amount will be $1,000 or greater for the months of:
    • January 1 - January 14
    • February 15 - April 14
    • May 6 - June 14
    • June 24 - July 24
    • August 6 - August 31
    • September 24 - October 24
    • November 6 - December 31

    Note:

    The Lockbox Site and / or Submission Processing Campus must comply with the $1,000 tolerance whenever possible. However, if staffing and or volumes impede the process, the Lockbox Site and / or Submission Processing Campus can revert back to the $5,000 tolerance when necessary. The Lockbox Site and / or Submission Processing Campus must notify their LFC when a change occurs.

    1. Lockbox Sites will fax their requests for research to the contacts agreed upon by the SPC and LFC.

    2. Within four hours of receipt of the request, the SPC will research IDRS for the missing information and provide a response to the Lockbox Site.

    3. If the missing information cannot be supplied to the Site, the Lockbox Site will forward the remittance to the SPC along with the fax as instructed in the LPG.

3.0.230.11.2  (01-01-2013)
Lockbox Field Coordinator's Package

  1. The LFC package shall contain the following:

    • Daily Deposit Production / OFAS report*

    • Monthly review reports

    • Lockbox Daily Deposit Cycle Report*

    * If requested by the LFC.

  2. The Lockbox Daily Deposit Cycle Report is available on the Control D Website after the reports have been run daily by the computing centers.

3.0.230.12  (01-01-2001)
Submission Processing Campus Quality Review of Lockbox

  1. Reviews were established to ensure IRS Lockbox Sites' work meets the standards in the LPG. Each review examines a critical element that could cause a work stoppage if processing is not accurate. It is imperative the reviews are completed daily. They will be used to assess the overall performance of each Lockbox Site.

    Note:

    SPCs with multiple Lockbox Sites are required to perform daily reviews of work received from each Lockbox Site.

  2. Each review is associated with a Data Collection Instrument (DCI) created in Microsoft Excel. Collective data from all reviews will be combined with the Processing Internal Controls (PIC) and procedural DCIs to produce a monthly report. General and specific guidelines for the review process and use of DCIs can be found in the sections below.

3.0.230.12.1  (01-01-2010)
General Guidelines

  1. The DCIs reflect the work to be sampled, sample size, error descriptions, and other review information. Read both the instruction and the DCI carefully before beginning.

  2. Document all pertinent comments relating to charged errors in the "Other" columns. Write them in the comments area on the DCI or on the main comment sheet.

    Note:

    Ensure corrective action is taken on the taxpayer's account when an error is identified during the Service Center Review.

  3. Forward completed DCIs to the LFC no later than the third working day of the following month. The LFC will maintain these reports for the length of the contract. The contract period is for five years with up to two one year extensions.

3.0.230.12.2  (01-01-2015)
Mail-out Package Review

  1. A 100 percent review of the mail-out package must be performed daily upon receipt of the package by an employee in Shipping and Receiving or Receipt and Control. The mail-out package must contain the following items:

    • All unprocessed work is sorted into two categories: Unprocessables with remittances and Unprocessables with no remittances

    • DER Package

    • All returns sorted and the number of volume processed by sort type

    • LFC package (if shown on LDT)

    • Form 4868 Review Package ( if shown on LDT)

    • Form 14039, Identity Theft Affidavit (if shown on LDT)

    • All address change cards, Forms 8822 (Postal Service Change of Address), photocopies of CP 521 and CP 523 vouchers with address changes

    • Incomplete Envelope

      Note:

      The Lockbox site should not be penalized if acts of nature delay delivery of the package. If this happens, mark the package as timely received. Notate in the comments column "An act of nature delayed delivery" .

    • In the column entitled "Package contents" answer "complete" if all of the required items were included in the package, answer "incomplete" if any of the required items were missing

    • In the column entitled "Received timely" , answer "Yes" if the mail-out package was received on time and answer "No" if it was not

    • In the column entitled "Lockbox Document Transmittal correct " , answer "Yes" if the LDT was correct and answer "No" if it was not

  2. Forward the DCI to the LFC no later than third working day of the following month.

3.0.230.12.2.1  (01-01-2015)
SPC Receipt and Control / Cashiers Receiving Area LDT Instructions

  1. Verify LDT Date. The LDT should list the contents of the lockbox mail out package(s). Instructions for acknowledgement of the LDT are contained in the IRM 3.10.72.2.4.7, Lockbox Mail and IRM 3.10.73.3.1, Lockbox Receipts.

  2. PACKAGES – Verify receipt of the following:

    1. Lockbox Field Coordinator (LFC) package, if listed verify the package or number of packages listed is received.

    2. Form 14039, Identity Theft Affidavit, if listed verify that the Form 14039 package is received.

    3. DER Review package, if listed verify that the DER package is received.

    4. 4868 Review Package, if listed verify that the 4868 Review package is received.

    5. Incompletes Envelope, if listed verify that the Incomplete Envelope is received and route to Error Resolution following local procedures.

  3. WITH REMIT UNPROCESSABLE - These items will be boxed separately and received in tamper proof bags. Verify receipt of the following in the secure/restricted area. Ensure that all items are performed:

    1. Bag is sealed and not opened, sliced, torn or any other manipulation that would question the integrity of the bag(s).

    2. Alpha/numeric digits printed on the bag(s) matches the alpha/numeric digits annotated in" Remarks" box of the LDT. CAUTION: The alpha/numeric MUST match and cannot be transposed.

    3. Initial in the "Received Column" on Page 1 of the LDT beside the category of "Tamper Proof Bag".

      Note:

      It is not necessary to manually count the enclosed checks contained in each labeled bundle. However, contact your Lockbox Field Coordinator (LFC) immediately if the bag is not sealed, alpha/numeric entries don’t match, or there appears to be an obvious error in the volume of checks (e.g., header/cover sheets states the volume to be 20 checks and there are 5).

  4. Verify that the number of boxes received agrees with the Total BOX Count on Page 1, initial if correct or notate discrepancy and CONTACT the Lockbox Field Coordinator IMMEDIATELY!

  5. Initial the Acknowledgement page in the appropriate fields, whether all is correct, or you had to notify the LFC of any discrepancy.

  6. Sign and Date at the bottom of the page. If multiple areas are responsible for verifying the package contents, both signatures must be at the bottom of the LDT.

  7. Fax a copy of the signed Acknowledgement (Page 1) back to the bank daily, no later than (NTL) 2:00 p.m. local campus time. Refer to IRM 11.3.1.11, Facsimile Transmission of Tax Information, for additional information.

    Note:

    If multiple areas receive and verify the work (e.g., Extraction, Batching, and Cashiers), establish a system to ensure all Acknowledgement pages are faxed to the bank daily.

  8. If any discrepancies are found on the Lockbox Document Transmittal notify your Lockbox Field Coordinator IMMEDIATELY via telephone and e-mail. Notate any LDT discrepancy errors on the RCO Mail Out Package DCI and provide details in the DCI comment field. Banks are measured and scored based on Mail Out Package accuracy.

  9. SPC receiving area(s) is to keep copies of all Lockbox Document Transmittals for a 1 year period. These documents are to be maintained in chronological order and available for review upon request. See IRM 3.8.44.3.3, Lockbox Mail.

3.0.230.12.3  (01-01-2010)
Monthly Reports Review

  1. Each month the Lockbox Site is required to send the monthly reports to the LFC by the 5th business day of the following month. The reports are as follows:

    • Form 9535, Record of Lockbox Discovered Remittance and Correspondence- Cash Log

    • Form 9535, Record of Lockbox Discovered Remittance and Correspondence - Candling Log

    • Managerial Reviews: Candling, Shreds, and Desk Checks/Work Areas

    Note:

    Some Lockbox Sites combine the reports listed above, i.e., the Candling and Candling Review Log may be combined on one report.

  2. The LFC will record the receipt of these reports, as well as the timeliness of each. The LFC will review the logs for completeness, i.e., do the log entries indicate all reviews were performed and recorded per the LPG requirements? Yes or No If "NO" is answered, please provide specific details in the "comments" section outlining any errors.

    Note:

    In peak months, LFC should review these items using the PIC as instructed. The Service Center review will be altered to only review what was not reviewed on the PIC review. This alternative way to review will ensure that the items are not double reviewed and that errors will not be counted twice. For IMF sites, if you have already reviewed all of the April logs, leave this DCI blank.

3.0.230.12.4  (01-01-2011)
Daily Deposit Reports Review

  1. Lockbox Sites are required to validate and reconcile reports which show the volume of items processed and dollars deposited daily to IRS, Fiscal Service, and OFAS.

  2. The reports are as follows:

    • RTR Report(s)

    • OCR Lockbox Daily Deposit Cycle Report

    • Daily Deposit Production / OFAS Report

  3. A 100 percent review of the RTR report data, OCR Lockbox Daily Deposit Cycle Report, Daily Deposit Production / OFAS report to ensure all reports balance to each other, reporting the same volume and amount deposited. Additionally, RTR and the OCR Lockbox Daily Deposit Cycle Report volumes and amounts should balance for each received date reflected on the report. The review will be performed by the LFC.

  4. Each column requires a "Yes" or "No" will be recorded in the appropriate column when a report does not balance with the other reports. There should be an entry for each day files are made and reports prepared. In the event more than one report does not balance, research will need to be performed to determine which report(s) are correct.

  5. The Daily Deposit Production / OFAS Report will be received daily via e-mail from the bank. RTR data can be accessed in the RTR system reports function. The OCR Daily Cycle Reports can be found on the RPS9720 run and can be accessed on Control-D.

3.0.230.12.5  (01-01-2012)
Processed Twice and Unprocessable Remittance Adjustments Review

  1. A 100 percent review of all processed twice and unprocessable remittance debit adjustments received from the Federal Reserve Bank-Cleveland (FRB-C).

  2. In the appropriate columns, record the voucher number, voucher date, amount and voucher typed of each voucher received. Only one error can be assessed per voucher.

  3. Forward the DCI to the LFC no later than the third working day of the following month.

  4. An E-mail from FRB-C stating the duplicate or unprocessable item was removed from the deposit, these items will not have an adjustment voucher, but will be recorded on the DCI review.

3.0.230.12.6  (01-01-2011)
Debit / Credit Voucher Review (DCVR)

  1. A 100 percent review of all debit and credit received from the Lockbox Site, other than encoding error and dishonored checks, which must be done daily by an employee in the hard-core payment tracer / dishonored checks unit of Accounting.

  2. In the appropriate columns, record the voucher number, voucher date, amount, and voucher type of each voucher received.

  3. Place the number of items in error in the appropriate error code column(s). Only one error per voucher will be recorded unless selecting the "Multiple Adjustments on one Voucher" error code. If error type is "Other" , provide an explanation in the comments column.

    Note:

    DCVR errors over a year old should NOT be captured on the DCI.

3.0.230.12.7  (01-01-2011)
Encoding Errors Report

  1. An encoding report will be compiled each month in the Accounting Operation in order to keep a record of all errors and their associated causes. For each encoding error, several items will be recorded each month, including the following:

    • Date the error was discovered

    • Date the error occurred

    • Whether the error was a debit or a credit

    • Dollar amounts associated with each error

    Note:

    Differing Amounts - No error will be charged if the Lockbox Sites process the payment per the LPG requirements listed below:

    • If the numeric amount on check differs from the amount on the source document, use the handwritten legal line amount

    • If either the numeric amount on the check or the amount on the source document is illegible, use the handwritten legal line amount

    • If the handwritten legal line amount and numeric amounts are illegible, send to the SPC as an unprocessable

    • If no amount is written on the check, send to the SPC as an unprocessable

      Note:

      Encoding errors over a year old should NOT be captured on the DCI.

  2. Forward the DCI to the LFC no later than the third working day of the following month.

3.0.230.12.8  (01-01-2011)
Electronic Files Transmission

  1. A 100 percent review of the files electronically received by the computing centers on a daily basis will be performed by the LEN coordinator.

  2. Record the number of files in error or missing on the DCI. Keep track of the specific errors. Record the number of files missing and the number deemed unusable for any other reasons by the Enterprise Computing Center. Use the comments column to explain any errors.

    Note:

    Expect 7 files each day. The RPS files are RPS0103, RPS0505, RPS0523, and RPS9701. The RTR files are LB0516 (data file) and LB0515 (image files) and LBX0501 (RRACS) file.

  3. Normally seven files will be received. If six files are received, the "expected number of files" is seven and the "number of files in error" is one. The following day, the "expected number of files" will be eight (the seven expected daily plus the one missing from the day before).


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