[Code of Federal Regulations]

[Title 42, Volume 4]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 42CFR457.216]



[Page 387-388]

 

                         TITLE 42--PUBLIC HEALTH

 

  CHAPTER IV--CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF 

                  HEALTH AND HUMAN SERVICES (CONTINUED)

 

PART 457_ALLOTMENTS AND GRANTS TO STATES--Table of Contents

 

  Subpart B_General Administration_Reviews and Audits; Withholding for 

  Failure to Comply; Deferral and Disallowance of Claims; Reduction of 

                        Federal Medical Payments

 

Sec.  457.216  Treatment of uncashed or canceled (voided) SCHIP checks.



    (a) Purpose. This section provides rules to ensure that States 

refund the Federal portion of uncashed or canceled (voided) checks under 

title XXI.

    (b) Definitions. As used in this section--

    Canceled (voided) check means an SCHIP check issued by a State or 

fiscal agent that prior to its being cashed is canceled (voided) by the 

State or fiscal agent, thus preventing disbursement of funds.

    Fiscal agent means an entity that processes or pays vendor claims 

for the SCHIP agency.



[[Page 388]]



    Uncashed check means an SCHIP check issued by a State or fiscal 

agent that has not been cashed by the payee.

    Warrant means an order by which the SCHIP agency or local agency 

without the authority to issue checks recognizes a claim. Presentation 

of a warrant by the payee to a State officer with authority to issue 

checks will result in release of funds due.

    (c) Refund of Federal financial participation (FFP) for uncashed 

checks--(1) General provisions. If a check remains uncashed beyond a 

period of 180 days from the date it was issued; that is, the date of the 

check, it is no longer regarded as an allowable program expenditure. If 

the State has claimed and received FFP for the amount of the uncashed 

check, it must refund the amount of FFP received.

    (2) Report of refund. At the end of each calendar quarter, the State 

agency must identify those checks that remain uncashed beyond a period 

of 180 days after issuance. The SCHIP agency must refund all FFP that it 

received for uncashed checks by adjusting the Quarterly Statement of 

Expenditures for that quarter. If an uncashed check is cashed after the 

refund is made, the State may file a claim. The claim will be considered 

to be an adjustment to the costs for the quarter in which the check was 

originally claimed. This claim will be paid if otherwise allowed by the 

Act and the regulations issued in accordance with the Act.

    (3) If the State does not refund the appropriate amount as specified 

in paragraph (c)(2) of this section, the amount will be disallowed.

    (d) Refund of FFP for canceled (voided) checks--(1) General 

provisions. If the State has claimed and received FFP for the amount of 

a canceled (voided) check, it must refund the amount of FFP received.

    (2) Report of refund. At the end of each calendar quarter, the SCHIP 

agency must identify those checks that were canceled (voided). The State 

must refund all FFP that it received for canceled (voided) checks by 

adjusting the Quarterly Statement of Expenditures for that quarter.

    (3) If the State does not refund the appropriate amount as specified 

in paragraph (d)(2) of this section, the amount will be disallowed.