[Print This Page] VR Manual > Chapter 12

Chapter XII - C

Office Procedures - Customer Service Authorizations Obligations and Bills

All goods and services provided for VR customers must be authorized, and a copy of the authorization must be kept in the customer's case folder. Once an individual has been determined eligible for VR services, all goods and services provided must be documented on the IPE and authorized in a timely manner. 

Any vendor providing goods and services authorized by VR must agree not to make any charge to or accept any payment from the individual with disabilities or his or her family for the service unless the amount of the charge or payment is previously known and, where applicable approved by VR.

  1. AUTHORIZATION(S) AND OBLIGATIONS
    1. Authorization(s)
      The obligation/deobligation system encompasses VR federally-funded case services. All authorizations must be written and sent to the provider of the services. When a counselor makes an oral authorization in an emergency situation, there must be prompt documentation and the authorization must be confirmed in writing and forwarded to the provider of the services. Authorizations cannot be back dated to justify payment of a bill. Please adhere to the following:
      1. When a verbal authorization is provided to a vendor in advance of a service, the authorization must be written and added to the regional office files within five work days and forwarded to headquarters for obligation within ten work days. The authorization must clearly state that verbal approval for the service was given on a specific date. Any authorizations received in headquarters which do not conform to this policy will be returned to the regional offices.
      2. The authorization must be dated the day it was actually written by the counselor. On the IPE amendment under the date status caseload column must be dated as of the day the authorization was written. In the service dates column, the date the actual service occurred, or anticipated to occur, would be entered.
      3. All authorizations must be dated at or after the eligibility determination, except for diagnostic services for the purpose of determining eligibility.
      4. The only authorizations honored for payment will be those authorized in advance of the service(s) to be provided.
    2. Use of Vendors
      The use of vendors operating in the Commonwealth of Virginia is preferred, and the following guidelines apply:
      1. Licensing or Certification
        Vendors used in the provision of services must be licensed or certified by the State of Virginia (or other licensing or certifying agencies) when such licensing or certification is required in order to provide a specific service.
        This applies to prescriptions, such as eye glasses and hearing aids, physicians, technological aids and devices, psychologist, and any other vendor where a license or certification is required to provide services within the Commonwealth of Virginia.
      2. Other Vendors
        The counselor will arrange for vendors who can provide certain other services, such as on-the-job training programs, room and board accommodations, etc. When arranging for these, the federal tax I.D. number will be secured. When the vendor does not have a federal tax I.D. number, the counselor will secure the vendor's Social Security number. This information is needed so authorizations can be issued.
      3. Out-of-State Vendors
        Out-of-state vendors are subject to the preceding regulations.
        Training outside the Commonwealth should not be considered if there is a comparable training program within the state.
  2. OBLIGATIONS
    1. The Obligation Process:
      1. The VR counselor authorizes a service, determines the obligation code, and gives the designated regional office clerical staff member the BFM (Bureau of Fiscal Management) copy and the customer case file copy of the authorization.
      2. The designated regional office clerical staff member assigns a number to each authorization using a stamping machine. (The BFM copy and the customer case file copy of an authorization are stamped with the same number.) The designated regional office clerical staff member then completes the top section of the ABH form (Word) and batches the authorizations. The VR authorizations are numbered and batched separately, each having a separate ABH form.
      3. The authorizations in each regional office will be stamped/numbered consecutively on a federal FY basis beginning every October 1. The VR authorization is to be batched separately.
      4. The designated regional office clerical staff member will send the VR authorization batches to BFM on a daily or weekly basis. Two copies of each ABH form (Word) go to BFM. The customer case file copy of the batched authorizations and the ABH form are kept attached together as a packet until BFM verifies receipt and accuracy of the batch by returning one copy of the ABH form (Word) with the "Fiscal Management Use Only" portion of the form completed.
      5. The regional office, upon receipt from BFM of the completed ABH form (Word), will break the batch packet and will file the customer case file copy in a centralized regional office file until the bill is received from the vendor.
      6. When a bill generated from the authorization is submitted to BFM for payment, the regional office will write in the authorization number on the invoice adjacent to the cost code section. The customer case file copy of the authorization is then moved from the centralized regional office file into the customer case file.
    2. How to Obligate in Special Situations
      Following is information on: 1) the purchase order as an obligation document; and 2) obligation of customer case service funds using "special" contracts.
      1. Purchase orders under $5,000 can be used as an obligating document for customer services when ordering equipment not on state contract and when a vendor requires a P.O. number. Process the P.O. as usual. Note, in rare cases where the purchase is for $10,000 or more, orders must be signed by the agency's purchasing officer. Computer-related purchases over $5,000 need to be put on a requisition and sent through DIT.
        1. Type in bottom half of description section of P.O. the customer name and I.D. number, the cost code, fiscal year, office location, and counselor code (if not already there).
        2. Make two photocopies of the signed copy of the P.O. from the payment package. Assign one authorization number to these photocopies with the appropriate obligation code; send one copy in the VR authorization batch to BFM, retain the other photocopy at the regional office.
        3. To process the bill using the P.O. payment package, write the authorization number using a number sign (#) after the counselor code and submit to BFM. Complete the bill paying process described on page 12-D.5 (B).

The completed bottom half of the description section of the P.O. would appear like this:
Mary See More
000-00-0000
c/c 302/89 Hdqters HVI #000999 obl. 449

      1. When VR has "special"contracts, the following procedure is done to obligate case-service funds. Special contracts must comply with all state and federal rules. Refer to Number 1 for completion of P.O.
    1. Other Special Considerations in Obligating
      1. All VR services for a customer must be entered on the IPE. The obligation process sometimes requires separate obligation codes. For example, transportation and interpreter services may appear on the same authorization but must have separate obligation codes and separate authorization numbers.
      2. A plan of services (IPE) may be written at any time but authorizations are only issued and funds obligated when the service is needed. For example, a plan may be written for a full college year, but authorizations are only issued on a semester basis. Also, remember that funds are obligated for a specific fiscal year.
      3. The authorization number and the counselor code must appear on all vouchers/bills submitted to fiscal management for payment.
      4. Authorizations for transportation must be specific. For example, one round trip bus ticket @ $24.50; or private vehicle mileage, 40 miles round trip @ 24 cents per mile = $9.60
      5. Authorizations for maintenance services requires a separate authorization number. Maintenance includes room, board, and personal incidentals, and obligation codes are 425-428.
      6. Ordinarily, the customer and the vendorcannot be the same person. Any exceptions must be approved by the deputy commissioner for services delivery and the fiscal director. Exceptions include, but may not be limited to, transportation where bus tickets are involved, incidentals, and maintenance.
      7. For Reader Service, send an authorization to cover the quarter or semester to the customer, with a copy to BFM. When the vendor is unknown to Reader Service, write in the vendor column on the authorization: "Reading Services," hours and amount to be authorized, and send to BFM.
      8. Do not obligate more money and submit bills for payment for any service that was not previously authorized. For example, authorization was for six counseling sessions @ $30 per hour, and vendor submits a bill for eight sessions @ $30 without prior approval. We do not pay for the additional two sessions. Medical emergencies are the exception but only after the IPE is developed.
      9. If the vendor name on the authorization and the bill are different (customer authorized to see Dr. Jones for an examination but saw Dr. Smith instead), send a corrected copy of the authorization to headquarters along with the bill for payment.
    2. Multiple Cost Codes in Obligating
      When an authorization is written to a single vendor but the services authorized require more than one cost code, the number of authorization numbers on the form should coincide with the number of cost codes. For instance, if the authorization is written for interpreter services - $150 and transportation - $45, two authorization numbers should be stamped on the authorization form. The Bureau of Fiscal Management will key the first authorization number for the interpreter services and the second number for the transportation. When the accounting voucher is submitted, both authorization numbers must be included on the voucher.
    3. Multiple Vendors in Obligating
      Authorization for surgery normally require two or more different vendors, e.g., hospital, physician, anesthesia, etc. Authorizations requiring multiple vendors must show the same number of authorization numbers as there are vendors. Therefore, if three vendors are authorized, three authorization numbers must appear on the authorization form. The first number will be keyed to coincide with the first vendor listed, the second number will coincide with the second vendor, etc. Accounting vouchers must show the proper authorization number which coincides with the vendor.
    1. How to Reobligate in Order to Pay a Late Bill Which Is Legitimate or to Pay a Bill Which Comes in During the Prescribed Time Frame But Is for a Higher Amount Than Originally Authorized
      1. There may be occasional instances when the VR counselor wants to reobligate case services funds and pay a bill when the original authorization is past 90 or 180 days old. An example of such an instance might be a lengthy insurance settlement process regarding medical services. Case services funds to pay late bills simply because the vendor does not get around to submitting the bill on time will not be reobligated.
      2. Funds may not be reobligated or paid after the last date bills can be paid for the grant period.
      3. Occasions may arise when the VR counselor may, with good reason, wish to pay more for customer goods or services than was originally authorized. In such instances, the VR counselor will write a new authorization (with a new authorization number) for the additional amount only. List both authorization numbers (the old and the new) on the bill when submitting it to BFM for payment.
    2. How to Handle Transferred Cases
      When a case is transferred from one DBVI regional office to another, and bills generated for authorizations written before the transfer came in are received for payment, write the name of the "old" DBVI regional office in front of the authorization number on the bill or invoice. (Example: A case is transferred from Bristol regional office to Norfolk regional office. Shortly thereafter, a bill arrives from a vendor for a service authorized while the case was a Bristol Regional Office case. Whoever submits the bill/invoice to BFM for payment is to write "Bristol regional office" in front of the authorization number on the bill/invoice.)
    3. Unexpended Obligations Greater Than 90 Days Old/180 Days Old
      The VR-7 & 11 reports will allow the VR Counselor to reobligate unexpended balances by following the instructions below:
      1. Circle "yes" if the obligation is to be deleted.
      2. Circle "no" if the entire obligation should remain on file.
      3. Circle "no" if the counselor wants to delete part of the obligation; strike through the net obligation with red pen, enter the new amount in red above the old net obligation.
      4. Do not do anything with dates.
    4. Authorization Batch Header Form (Word) (DBVI-01- )
      The Authorization Batch Header (ABH) Form is to be used by regional offices and by BFM to ensure that copies of all case service authorizations are sent to and are received by BFM. Instructions on how to complete the ABH are on the form.
  1. VENDOR BILLS(S)
    Payment for a service requires a bill from the vendor. Vendor bills are to be processed at the regional office and sent no later than five workdays to fiscal management at headquarters. If a counselor is to be away from his/her office for three or more workdays, another counselor, or the immediate supervisor, is to be designated to process the bills received. It is conceivable to receive a bill for a service before the obligation authorization for that service is sent to BFM. When this occurs, submit the obligation authorization at the same time the vendor bill is submitted to BFM for payment.
    Bills for room and board costs, transportation costs, cost of lunches, and incidental allowances submitted by a private vendor, or the individual, must be signed by the individual.
    Vendor bills received by DBVI which were not authorized in advance (verbally or in writing) will not be honored under any circumstance. The bill will be returned to the vendor by the regional office with a letter of explanation citing this policy.

F.      Check the Following:

      1. The service was authorized and, where appropriate, documented on the IPE.
      2. The service was delivered to the customer.
      3. The amount claimed is consistent with the service delivered and the amount authorized.
      4. All required medical, training, or other reports have been submitted.

G.    Document the Bill as Follows:

      1. Stamp date on front of the bill when it is received at the regional office.
      2. Record customer's name, case number and case load code on the original bill.
      3. Circle the dollar amount to be paid and initial on original bill.
      4. Write the date approved for payment directly beneath your initials.
      5. Identify cost code and federal fiscal year and authorization number.
      6. Attach bill to appropriate accounting document.
      7. Retain a copy of the bill at the regional office. The original bill goes to BFM.

H.    Accounting Documents (Accounting Voucher, Petty Cash Reimbursement Voucher, and Inter-Agency Transfer Invoice)
The instructions and procedures for completing these documents were issued by fiscal management during a CARS II training meeting. Please refer to those instructions for further information.

I.       Special Documentation

      1. Bills held in the regional office for more than six working days must be stamped with the "Invoice Delayed For" stamp. Give the "Disputed Invoice Date Resolved" date and reason(s) for delay. Where available, supporting documentation (correspondence) explaining the circumstances of the delay should accompany the bill.
        Outpatient and inpatient hospitalization and major treatment require insurance payment verification(s) from the hospital, physician, clinic, and/or the customer/patient before a medical bill can be processed.
      2. The following VR services require certain reports before bills are processed:
        1. Services Reports
        2. Surgery Discharge Summary
        3. OJT Training Report(s)
        4. VRC Training Report(s)
        5. VIB Training Report(s)
        6. Vending Stand Training Report(s)
        7. Vocational Training Training Report(s)
        8. Physical Restoration Cases Medicare Verification and Other Medical Insurance
        9. General Medical Medical Report
        10. Eye Examination Eye Report
        11. Low Vision Vision Report
        12. Specialty Examinations Specialty Reports

This is not an all inclusive list.