Functional Requirements: SCDMV Financial Management

Appendix #:

Subject:

Functional Requirements: SCDMV Financial Management

Appendix 11 - Financial Management Revision 1 Page 1 of 26

Overview Financial Accounting Tracking Point of Sale (POS) Subsystem Point of Sale Operations Revenue Management Refund Processing Accounts Receivable Accounts Payable Dishonored Payment

Drawdown Account

See Appendix 15 for a complete list of all abbreviations and acronyms.

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Overview The System shall provide financial management capabilities necessary to track revenue that is collected for all the transactions performed by the various SCDMV business areas and branch offices. A key function of financial management requires revenue management of all customer transactions performed by the SCDMV staff and business partners which includes the following key processes and areas of functionality. These include:

1. Financial Accounting Tracking – All transactions processed in the System shall be accounted for and appropriately tracked.

2. Point of Sale (POS) subsystem – The primary function of the POS subsystem is to provide a cashiering function for all business areas. POS is a tightly integrated component of the System.

3. Point of Sale Operations – The POS shall record transaction, deposit, and financial information and provide the tracking and cashiering functions, as well as support the flow of financial information to be sent to the State’s accounting system, South Carolina Enterprise Information System (SCEIS).

4. Revenue Management – Once the revenue has been deposited into the State’s bank account, SCDMV is responsible for reconciling financial data between the State’s records, the bank records, the business areas’ records, and the POS records. The SCDMV must collect revenue on behalf of other agencies or entities and will need to distribute revenue as well as reconcile the revenue distributed.

5. Accounts Receivable – Accounts receivable is required to collect various receivables such as dishonored payment, reversals, not enough payment collected in the original transaction, late payments, fines, and penalties assessed to the customers, and other items.

6. Accounts Payable – Accounts payable is required to track the refunds and other payment obligations to be made to the customer.

7. Refunds Processing – Refund processing is required to track the payments refunded and related transactions that are affected by the refunds.

8. Dishonored Payments – A capability to track and manage the dishonored payments is required when such information is received on checks and credit card payments.

9. Drawdown Accounts – Customers need to have the capability to maintain a drawdown account, which can be used to pay for their transactions.

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Financial Accounting Tracking All transactions processed in the system shall be accounted for and accurately tracked and reconciled.

A customer may perform one or more transactions on a single visit to the SCDMV. The customer may pay for these transactions using one payment or split payments such as a bank check plus a credit card equaling the total for the transactions. The system shall track the payments which were used for the transactions.

Additionally, the total fee for each transaction is determined by a combination of fee types. Each transaction has one or more fee codes (GL codes) associated with it along with the composition for that fee code. Each fee code has one or more distribution codes associated with it. Additional fee calculation details are defined in Appendix 06 - Functional Requirements Standard Transaction Model.

Payments collected for one or more transactions are allocated to the fee codes and distribution codes.

The system shall have the capability to create one or more deposits per office, per day.

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Point of Sale (POS) Subsystem The system shall support the POS subsystem to perform transactions and accept payment for these transactions. The POS subsystem shall support all transaction types and present a list of items consisting of business area transactions (products and services) for which payment can be made or require no fee. The POS subsystem display will indicate a fee for each individual item, a breakdown of any item fees derived from multiple components, and a total for all items selected for the payment.

The POS subsystem shall have the ability to select or deselect items, or components of items for which individual payment can be made and calculate the payment total dynamically. The POS subsystem shall have the ability to accept payment without issuing another product or service, accept various payment methods, and record the type of payment for all items paid. Breakdown of the fees or no fee transactions that make up an item will be processed and assigned a SCEIS account via a revenue distribution code to be applied in SCEIS.

All payments shall be processed through the POS subsystem. The POS subsystem shall be a tightly integrated component of the system and its transactions and interactions.

The POS subsystem shall collect payments for the transactions and link all the payments to the transactions and customer. A virtual POS terminal shall be associated to the Web-Based Transaction Center (WBTC). The system shall support the configurability of POS using a secure POS Administrator profile for specific needs of a user or a transaction type. The payment methods for a customer will be drawn from the customer’s 360-degree profile.

For Automated Closeout Schedule – Virtual POS for Web to closeout at a specific time of a day. The system shall provide a schedule for processing (e.g., processing batch transactions, processing voids and cancellations, processing Web POS closeouts).

Shopping Cart – In the Standard Transaction Model (Appendix 06) the POS subsystem is also referred to as the “Shopping Cart” which is used to pay for transactions at the end of both an online session and an in-person session. All POS device card readers will be provided by Tyler Technologies and integrated with First Data Merchant Serv ices through an existing contract.

3.1. Payment Methods

The customer must have an option to pay for a transaction using one or more payment methods listed below or any other payment method that may be available in the future.

Some types of payments supported may depend on the customer’s profile, the channel used to perform a transaction, the location of the transaction or the type of transaction.

The system shall support these payment methods:

1. Cash

2. Paper Check

3. Guaranteed Checks (e.g., Cashier’s Check, Money Orders, Certified Check)

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4. Debit Card

5. Credit Card (Visa, MasterCard, American Express, Discover)

6. Payment Voucher

7. Draw-down Account

8. eCheck and Electronic Fund Transfer (EFT) processed through the DMV's designated Qualified Public Depository as approved by the State Treasurer.

9. Automated Clearing House (ACH) processed through the DMV's designated Qualified Public Depository as approved by the State Treasurer.

10. Near Field Communication (NFC) Payment.

3.2. Managing Access and User Accounts

3.2.1. User Roles

The system shall provide the capability to define user roles and user access for the POS subsystem. The SCDMV staff shall be assigned one or many financial user roles, depending on their positions and responsibilities, the transactions they can perform, the payment methods they can accept, and other roles to be defined by the SCDMV during the Requirements and Design phase. The system shall support many POS user roles, such as, but not limited to:

1. SCDMV Employee – SCDMV staff who processes payments in POS.

2. Supervisor / Office Manager – SCDMV staff with access to certain POS reports, authority to perform overrides and other higher security processes.

3. Accounting – Accounting personnel with security to access all financial reports, perform backend reconciliations and adjustments.

4. Auditing – Auditing staff with inquiry only security to various levels of POS and POS reporting.

5. POS Administrator – Staff with security to setup the POS profiles.

3.2.2. User Accounts and Access

The system shall manage the user accounts and access to the POS subsystem for all SCDMV staff who will perform financial transactions based on the system RBAC (Role Based Access Control). The actual user accounts and access required will be discussed with the contractor, when onboard.

3.3. Employee Sessions

3.3.1. Money Assignment and Tracking

To enable staff to process customer transactions and associated payment, the SCDMV employee is assigned a change fund, if applicable. The system shall keep track of the SCDMV employee's change fund, each of the SCDMV employee's sessions, and all transactions belonging to that session. Once an SCDMV employee’s session is closed

Appendix 11 - Financial Management Revision 1 Page 6 of 26 out a new session begins with the first transaction after closeout. The POS subsystem shall:

1. Link each SCDMV employee's change fund to them, which shall be configurable so that it can be changed by the POS Administrator when necessary.

2. Automatically deduct the SCDMV employee's change fund at closeout and for purposes of calculating over and short situations.

3. Allow for automatic closeouts and supervisor reporting for SCDMV employees that do not take in any cash or checks and only take card payments.

4. Allow the supervisor to perform a cash count without closing out to settle customer discrepancies or audit inquiries.

5. Create a unique identifier for tracking each transaction or series of transactions to a payment or update to the system.

6. Allow a SCDMV employee to move between different workstations within the same branch office location.

7. Keep track of which transactions were completed at which workstations.

3.3.2. Staff Assignment and Tracking

The POS assignment shall include:

Assignment of Staff to Cash Drawer – Each SCDMV staff who collects payment from the customer (directly or indirectly) shall be assigned to a cash drawer. Indirect payment collection may include payment received at a mailroom or payment received for bulk processing from dealer, service provider or record requestor.

Dynamic Assignment of Staff to Physical POS Station – Most of the staff at SCDMV branch office locations and some central office users may be dynamically assigned to a physical POS station when the staff logs in to a workstation and updates cash drawer information. The staff may be rotating from one counter location to another; hence the physical POS station shall be assigned dynamically.

3.4. Potential Workstation Hardware

Each SCDMV employee working at a workstation needs some hardware devices to complete their tasks to serve the customer. Some hardware devices are connected to their workstations, and some are standalone devices. The system shall support the following types of devices with the workstations, but not limited to:

1. Cash Drawer – where the employee may put their money collected from the customer.

2. Credit Card Reader – for accepting credit and debit card transactions.

3. Bar Code Reader – to read a bar code on correspondence, product, or document.

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4. Fingerprint Reader – to allow authorized SCDMV employees to perform fee overrides, and the acknowledgement of change fund and reconciliation of cash drawer funds.

5. Contactless FOB/Card Reader – to allow authorized SCDMV employees to perform fee overrides, and the acknowledgement of change fund and reconciliation of cash drawer funds.

6. Signature Capture Device – to capture signature of the customer for Credit Card transactions and other transactions, which need customer’s signature.

7. Printer – local or network printer to print documents, receipts or other necessary items for the customer.

8. Photo Capture Device – to capture photo of the customer for DL and ID transactions and other transactions in future.

9. Document Scanner – to scan transaction related documents, if required.

10. Vision Testing Equipment – to conduct the vision test for the customer.

The SCDMV has or will procure all the above items. The Contractor will need to work with the SCDMV to refine and configure the workstation setup per the needs of the office location and employee who is using it.

3.5. Types of Transactions

The POS subsystem shall be configured to address the SCDMV transactions as applicable. The types of transactions available will be directed by the business areas processing the transaction. The system shall have a profile for each business area whether internal SCDMV business units or third parties that can access the POS subsystem on behalf of the SCDMV.

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Point of Sale Operations

4.1. Overview

The POS operations shall include:

1. Collecting payment for the transactions performed for the customer.

2. Close out of the POS cashier session to count and record monies collected.

3. Depositing collected funds into the State’s bank account.

4.1.1. Payment Collection Locations

The payments are collected from the customer for the transactions throughout the day at these locations:

1. SCDMV Branch Office

2. Self-Contained Hazard Area Response Kit (SHARKS) and Community Response Emergency Services Vehicle (CARES)

3. Web-Based Transaction Center (WBTC)

4. Self Service Terminal

5. SCDMV Business Partners using the SCDMV system (e.g., County office, EVR vendor)

6. SCDMV Central Office Operations

7. Automated (Digital) Mailroom processing unit at central office

8. Phone payment.

4.1.2. Endorsement of Checks

The system shall support the validation of checks and other documents as well as bank-related endorsements such as For Deposit Only and office number.

4.2. Process Descriptions

The POS operations will include the following processes.

4.2.1. Open Cash Drawer

In this process, a cash drawer is opened for a day.

The cash drawer is assigned to a specific office location where it is being used, the workstation location, and the user who will be performing their work using this cash drawer.

The cash drawer is also assigned some predefined change fund (which may vary from one office location to another).

The types of payments the cash drawer can accept and list of transactions that can be performed on the linked workstation may depend on the office location, and the user’s privilege level.

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4.2.2. Close Cash Drawer

In this process, closing of a cash drawer is processed.

As part of closing of a cash drawer, first the cash drawer reconciliation is processed. The cash drawer reconciliation will include reconciliation of money collected.

If there is satisfactory reconciliation, the cash drawer is closed. The status of the cash drawer is changed to closed.

4.2.3. Manage Change Fund Electronically

The system shall provide a capability for electronic management of change fund on a multi-level basis, to include employee, office unit and combination thereof. Each unit is assigned a predefined change fund dollar amount. The system shall provide electronic acknowledgement of the change fund amount received and returned by each SCDMV employee.

The system shall provide a daily, real-time running total of the change fund amount to include the amount issued to SCDMV employees and the amount leftover, as well as the SCDMV employee that assigned the change fund.

When the overall change fund amount per unit changes, it will trigger a workflow to the appropriate SCDMV employees and allow for the attachment of comments and documents.

4.2.4. Collect Payment for Transaction

In this process, the payment is collected for a transaction performed at associated workstation. The payment collected will record the payment location (cash drawer, workstation, and office location), the user who collected payment, the transaction information, customer, and other products and entities which are affected, such as vehicle, placard, credential etc.

The payment collection will include the method by which the payment was collected, and information collected for each payment may include:

1. Cash – Denominations for bills and coins tendered by customer and returned to customer.

2. Check – Payee information (name, identification, address, and contact), payment amount, check number. If the payee is not the SCDMV customer, then the system will prompt the user to create a customer record for the payee customer. This will include the customer demographic information and record the information about the payment made by payee which will include transaction, products and services which were paid by the payee.

3. Credit /Debit Card – Authorization number, amount type of credit/debit card and payee information.

4. Money Order, Cashier’s Check and Other Payment Form – Same as check.

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The payment may also be split into multiple payment methods. Multiple transactions can be processed by one payment.

4.2.5. Balance Cash Drawer

In this process, balancing a cash drawer is processed. The cash drawer balancing will include all the cash, checks, money orders, and cashier’s checks which were collected by the employee who is assigned to the cash drawer.

There will be a second level of counting for all the funds collected by another SCDMV employee to ensure that the money collected matches the collection shown in the cash drawer. The system shall have the capability to track the SCDMV employee that performed the second level of counting. The system shall also provide a dashboard showing all cash drawers in the unit, to allow for quick and easy reconciliation.

The system will display a receipt of the collections for the cash drawer from the time it was opened until it is closed. The system will allow for recall of all receipts.

The change fund amount for each cash drawer shall be made visible at the cash drawer, but the cash drawer total will not include the change fund amount.

4.2.6. Process Cash Drawer Adjustments

In this process, adjustments to the cash drawer are processed.

The adjustments will include money adjustments, such as, identification and recording of overage and shortages. Comments and documents may be added to adjustments. If there are numerous adjustments, or adjustment over a specified dollar amount, a workflow will automatically trigger a system notification to the authorized SCDMV employees.

The system shall allow for automatic calculation of cash drawer adjustments after the SCDMV employee enters the dollar amount.

The cash drawer adjustments functionality will need to be performed by SCDMV employee and verified/confirmed by employees’ supervisor or manager (or users with certain roles) per the rules defined in the system.

Some adjustments may need the involvement of the financial division and alert may be generated to the appropriate SCDMV employees.

The system shall allow authorized SCDMV employees to adjust cash drawers for SCDMV staff in their unit. The system shall track the SCDMV employee that made the adjustment, as well as the SCDMV employee the cash drawer belongs to.

4.2.7. Process Office Consolidation and Generate Deposit

In this process, consolidation of all the money collected in the office is processed.

Here the collections from all closed cash drawers are counted and matched by an authorized staff to ensure that every cash drawer’s collection matches the transaction performed in the cash drawer.

This will also include all adjustments made to the cash drawer collections.

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Once the office level consolidation is complete an office level deposit is created for money collected.

The deposit will include one deposit report with a separate total for all cash collected, all checks collected, and all other payment types collected. The deposit report will also include a grand total of some combined payment types, and some additional information that will be specified in business rules.

4.2.8. Update Payment Information on Transaction

In this process, the user will be able to correct or update the payment information on a transaction or the payment that is linked to a customer.

The payment information may be corrected or updated.

The updated or corrected payment information may result in a new receipt or notification to be generated and sent to the customer.

4.2.9. Send Electronic Deposit to Bank

In this process, the system will have the capability to send the image deposit file for all checks to the bank directly. The image deposit file sent electronically should include the images of the individual checks that are part of the deposit.

4.3. System Features

1. The system shall provide the capability to inherit all the payment types for a cash drawer from the payment types defined for a branch location or just a subset of payment types.

2. The system shall provide the capability to generate a deposit report to include only one or multiple payment methods as defined in the profile for the branch office location.

3. The system shall have the ability to re-open a closed cash drawer to make adjustment, if discrepancies are found.

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Revenue Management

5.1. Overview

After funds are deposited into the state’s bank, the system and SCDMV employees will execute the following backend processes:

1. Reconciliation of Deposits and Data – Deposits and associated data uploaded into SCEIS will be reconciled with deposits received at the bank to ensure accuracy and completeness.

2. Fee Tracking and Allocation – Each customer fee consists of multiple fee codes, which must be tracked and allocated to the relevant accounts.

3. Allocation for Other Agencies and Jurisdictions – Portions of the collected fees designated for other agencies and jurisdictions will be allocated in accordance with state statute.

4. Fee Disbursement – Allocation data for fee disbursement will be transmitted to SCEIS to facilitate the actual transfer of funds.

5.2. Reconciliation – Process Descriptions

The system shall support the following processes for reconciling payments collected at the SCDMV.

5.2.1. Perform Reconciliation – Check and Cash

Reconciliation of checks and cash begins when validated deposit information is received by SCDMV Finance Division from the authorized SCDMV depositing banks. The SCDMV Finance Division processes the reconciled deposit into the State’s Accounting System for approval by the State Treasurer’s Office. Once the Treasurer’s Office approves, the corresponding check or cash payment is marked as reconciled. If a check is reported as dishonored, it is processed using the ‘Process Dishonored Payment – Check’ workflow as described in Section 9.

5.2.2. Perform Reconciliation – Credit, Debit Card, and ACH

Reconciliation of credit and debit card transactions begin when deposit information is received by SCDMV Finance Division from the state’s bank and the state’s payment processing vendor. The payment processing vendor settles payments to the State’s bank. The State’s bank creates a statement on the bank server that the State’s Accounting System then retrieves, loads, and processes. Once the SCDMV Finance Division confirms deposit information, the corresponding credit or debit card payment is marked as reconciled. If a credit or debit card payment is reported as dishonored, it is the responsibility of the payment processing vendor.

5.2.3. Perform Reconciliation – Online Payment

This process is same as ‘Perform Reconciliation – Credit, Debit Card, and ACH., Appendix 11 - Financial Management Revision 1 Page 13 of 26

5.2.4. Perform Reconciliation – Self Service Terminal Payment Reconciliation of Self-Service Terminal payment transactions begin when deposit information is received by SCDMV Finance Division from the state’s bank and the state’s Self-Service Terminal vendor. The payment processing vendor settles payments to the State’s bank. The State’s bank creates a statement on the bank server that the State’s Accounting System then retrieves, loads, and processes.

Once the SCDMV Finance Division confirms deposit information, the corresponding Self- Service Terminal payment is marked as reconciled. If payment is reported as dishonored, it is the responsibility of the self -service terminal vendor.

5.2.5. Perform Reconciliation – County Remittance

Reconciliation of county remittance transactions is performed when SCDMV Finance Division receives transactional documentation from counties. The validated deposit information is received by SCDMV Finance Division from the authorized SCDMV depositing banks. The SCDMV Finance Division processes the reconciled deposit into the State’s Accounting System for approval by The State Treasurer’s Office. Once The Treasurer’s Office approves, the corresponding check or cash payment is marked as reconciled. Any dishonored payment for a transaction performed at the county office is the responsibility of the county office.

5.2.6. Perform Reconciliation – Vendor and Service Provider ELT/EVR This process is same as ‘Perform Reconciliation – Credit, Debit Card, and ACH’. If a check is reported as dishonored, it is processed using the ‘Process Dishonored Payment

– Check’ workflow as described in Section 9.

5.2.7. Perform Reconciliation – IRP Netting Data

In this process, the reconciliation of IRP netting data is performed. The system shall have the capability to interface to the IRP Data Repository. The system shall compare the netting data from the IRP Data Repository to the deposit amount received in an unautomated manner. If there are discrepancies in the balance, an exception report shall be generated and routed via a system workflow to allow Motor Carrier to research any differences. Only after the amounts balance, the system shall mark the payment as reconciled.

5.2.8. Perform Reconciliation – IRP, IFTA and UCR Wire

Reconciliation of IRP, IFTA and UCR wire transactions begin when deposit information is received by SCDMV Finance Division from the state’s bank. The SCDMV Finance Division processes the reconciled deposit into the State’s Accounting System for approval by the State Treasurer’s Office. Once the Treasurer’s Office approves, the corresponding wire payment is marked as reconciled.

5.2.9. Perform Reconciliation – Refund

Reconciliation of refunds is performed when approved refund information is received by the SCDMV Finance Division. SCDMV Finance Division initiates interface into the State’s Accounting System for approval by SCDMV Accounts Payable and the SC Comptroller

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General’s office. Upon approval of a refund payment request, the State Treasurer’s Office processes refund payments and transactions associated with refund checks are marked as reconciled. If a refund is not processed for a specific transaction, the transaction is flagged for manual review by a SCDMV employee and added to their work queue for further investigation.

5.2.10. Perform Reconciliation – IRP, IFTA and UCR Refunds

Reconciliation of refunds is performed when approved refund information is received by the SCDMV Finance Division. SCDMV Finance Division processes refund document in the State’s Accounting System for approval by SCDMV Accounts Payable and The SC Comptroller General’s office. Upon approval of a refund payment request, the State Treasurer’s Office processes the refund payment, and the transaction associated with refund payment is marked as reconciled. If a refund is not processed for a specific transaction, the transaction is flagged for manual review by a SCDMV employee and added to their work queue for further investigation.

5.3. Chart of Accounts, Fee Collection, and Distribution

The system shall provide the capability to maintain a chart of accounts, enabling the SCDMV to accurately manage collections and distributions. The system shall support the creation and maintenance of all fee codes and distribution codes; track funds collected by fee codes and allocate them to appropriate distribution codes for disbursement to recipients. The following processes shall be supported:

5.3.1. Maintain Chart of Accounts

The system shall allow authorized SCDMV employees to manage entries in the chart of accounts without requiring programming changes. This includes:

1. Creating and maintaining fee codes and their compositions.

2. Creating and maintaining distribution codes.

3. Defining and maintaining mappings between SCDMV fee codes, distribution codes and state accounting system codes.

4. Defining initiation and expiration dates for all fee and distribution codes.

5.3.2. Calculate Funds per Fee Codes

When a transaction is performed, and a payment option is selected, the system shall:

1. Identify appropriate fee codes based on the transaction line item and selected options.

2. Calculate the total fund amount to be collected.

3. Display the calculated amount on the customer’s payment transaction.

5.3.3. Allocate Funds per Distribution Codes

Upon successful collection of payment, the system shall:

1. Allocate the collected funds to the appropriate distribution codes.

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2. Maintain a cumulative tally of funds collected for each distribution code.

3. Record adjustment entries in the distribution code collections tally for dishonored payments.

4. Reset the tally when remittance is made from the distribution code (GL code), which may occur periodically.

The system shall also maintain the distribution schedule for each distribution code and indicate whether the distribution should occur through the State’s accounting system or directly from the SCDMV Finance Division.

5.3.4. Process Disbursement of Funds through State’s Accounting System The system shall handle disbursement of funds collected in the State’s bank per the distribution codes requiring distribution through the State’s accounting system. Key capabilities include:

1. Sending the collected funds in the State’s bank and associated information to the State’s accounting system.

2. Maintaining the fee distribution schedule for each distribution code in both the SCDMV system and the State’s accounting system.

3. Generating financial reports of the fund disbursement made by the system, such as daily, weekly, monthly and other periods as seem appropriate by SCDMV.

5.3.5. Process Disbursement of Funds Internally

For distribution codes requiring internal automated disbursement, the system shall:

1. Enable the SCDMV Finance Division to process payments internally.

2. Maintain the fee distribution schedule for each distribution code within the SCDMV system.

3. The system shall send associated information to the State’s accounting system.

5.4. Adjustments to Collections and Distributions

Adjustments to fees collected and distributed may be necessary due to refunds, dishonored payments, or corrections to transactions. The system shall track all adjustments by transaction, employee, and timestamp to ensure transparency and accountability.

5.4.1. Make Adjustment to a Transaction

The system shall allow SCDMV employees to adjust transactions, with changes reflected in real-time upon saving.

If the adjustment affects products issued to the customer (e.g., registration plates or documentation), updated product information will be sent to the product production vendor. If the adjustment impacts financial data, the fee collections and corresponding distribution entries will be updated accordingly.

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The system shall record the following information for each adjustment: the employee who initiated the change, the employee who approved the change, the date and timestamp of the change, the workstation and cash drawer location, and the reason for the adjustment.

5.5. System Features

1. The system shall support defining and calculating fees composed of multiple component fees or "sub-fees" organized into a fee structure associated with specific transactions and related parameters.

2. The system shall allow authorized SCDMV employees to add or update fees at the sub-fee level.

3. Changes to a sub-fee shall automatically update all fee structures referencing that sub-fee.

4. The system shall provide search capabilities for authorized SCDMV employees to locate all fee structures containing a specific sub-fee and allow editing either globally or individually.

5. The system shall allow authorized SCDMV employees to search for and edit a single fee structure.

6. The system shall log all additions, updates, and deletions of fee codes. These logs shall be accessible to authorized SCDMV employees.

7. The system shall provide automated reconciliations.

8. The system shall track reconciliations by payment method and maintain logs viewable by authorized SCDMV employees.

9. The system shall track all disbursements by distribution code, payment method, and other defined parameters, with logs accessible to authorized SCDMV employees.

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Refund Processing

6.1. Overview

Customers may return products to the SCDMV or overpay for transactions, which may result in a partial or full refund of the money paid. Refunds may or may not be processed using the same payment method as the original transaction. Each refund transaction must be linked to a corresponding completed (realized) paid transaction.

Some refunds may be processed automatically based on business rules, such as for a returned registration plate eligible for a refund.

Customers can request a refund through the following channels:

1. Online via the Web-Based Portal (WBP)

2. In person at an SCDMV branch office counter

3. By mail

6.2. Process Descriptions

6.2.1. Initiate Refund Request

In this process, a refund request is created for the money to be refunded to the customer.

1. Refund requests may be manually initiated when a customer requests a refund for returned services or overpayments.

2. Refund requests may also be system-generated if the system detects an overpayment, such as when the amount exceeds a business rule threshold (e.g., overpayments greater than $5.00).

3. The system will capture details of the payment and transaction associated with the refund, the reason for the refund, the recipient, and the mode of refund payment.

All refund requests are routed through the system workflow for approval by an authorized SCDMV employee. If no action is taken by the approver within a configurable number of days, the system may generate an alert for the approver and their supervisor.

6.2.2. Approve Refund Request

In this process, an authorized SCDMV employee or supervisor receives the refund request for approval in their queue.

1. Refund requests are routed to the appropriate business area manager for approval.

2. Employees or supervisors may approve refunds up to their authorization limit. If the refund amount exceeds their limit, the system automatically routes the request to a higher-level manager with the required approval authority.

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3. If the refund request is denied, the system routes the request back to the employee for modifications and resubmission. If the request is denied again, a denial letter is sent to the customer, including the reason for denial.

4. If the refund is approved, the request is forwarded to the SCDMV Finance Division for processing.

6.2.3. Send Refund Request to State Accounting System

Once the SCDMV Finance Division receives an approved refund request, the mode of refund processing is determined.

1. Some credit card and debit card refunds may be processed directly to the customer’s account if the capability exists, and the situation warrants it.

2. Refund requests are sent to the State’s accounting system for issuance.

The system generates and sends a letter confirming the refund issuance to the customer via their preferred contact method.

6.3. System Features

1. The system shall automatically generate a refund request if the customer is owed over a specified amount and meets the criteria for automated refund processing.

2. The system shall automatically route refund requests to the appropriate approving authority based on predefined approval levels.

3. The system shall track the time duration a refund request remains in the approver’s queue and generate management reports on processing times.

4. If the refund amount exceeds the approver’s threshold limit, the system shall automatically escalate the refund request to the next level of authority.

5. The system shall support multiple levels of refund approving authorities for each business area, with defined approval thresholds.

6. The system shall prevent the same SCDMV employee from both processing and approving a refund request.

7. The system shall maintain and utilize a structured refund approval hierarchy based on refund amounts to route requests appropriately.

8. Customers shall have the ability to log into their account via the Web-Based Portal (WBP) to view related transactions and statuses. The portal shall also provide supporting functions, including status tracking, document management, electronic verification completion, payment history, messaging SCDMV, and other account maintenance features.

9. A unified refund process shall apply to all SCDMV transactions.

10. Refunds shall always be tied to the associated transactions and shall not exceed the amount paid. If a refund request exceeds the transaction amount, the system shall route it to SCDMV management for review.

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11. Refunds cannot be issued unless the associated transaction is reconciled, meaning the payment is completed and realized in the bank.

12. Refund amounts below a certain threshold shall appear as a credit on the customer’s account.

13. Refunds shall use the same payment method as the original transaction payment.

14. Refunds shall not be granted if the customer has an outstanding balance, such as unpaid fees.

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Accounts Receivable

7.1. Overview

An accounts receivable system is required to manage various receivables, including dishonored checks, failed or reversed credit card payments, uncollected fees from original transactions, late titling fines for dealers, SCDMV personnel issues, and other miscellaneous items. The system shall track all accounts receivable and support the following processes.

7.2. Process Descriptions

7.2.1. Process Accounts Receivable – Customer

This process handles receivables from customers. If a customer owes payment for products or services, the system shall create an accounts receivable entry. A notification will be sent to the customer via their preferred contact method. Accounts receivable for customers may be created in the following scenarios:

1. A dishonored payment requiring the customer to remit payment to the SCDMV within a specified timeframe.

2. Assessment of penalties for reasons such as non-compliance or late payment of fees.

3. A payment plan on the customer’s account requiring periodic remittance of a specified amount.

The system shall track when the accounts receivable is created, due, and paid. It will also monitor if customer-held products or services, such as registrations, are affected after a specific number of days (e.g., suspension or revocation). The system shall allow additional accounts receivable scenarios to be added as required by the agency.

7.2.2. Process Accounts Receivable – Business Customer

This process handles receivables from the business customers. If a business customer requests a service (e.g., bulk data requests) requiring payment, the system shall create an accounts receivable entry and notify the business customer.

The system shall track when the accounts receivable is created and paid. If payment is not received within a specified period (e.g., 180 days, or a business customer-specific duration), the accounts receivable entry and any pending service requests will be marked inactive. The business customers must then submit new requests for services.

Alerts shall be added to the business customer’s account, accessible through their SCDMV system login credentials.

7.2.3. Process Accounts Receivable – Service Provider

This process handles receivables from service providers, including county offices and EVR and ELT vendors. If a service provider is required to remit payments to the SCDMV periodically, the system shall create an accounts receivable entry and notify the service provider.

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The system shall track when the accounts receivable is created and paid. If payment is not received within the specified timeframe, penalties may be assessed. Alerts shall be added to the service provider’s account, accessible through their SCDMV system login credentials.

7.2.4. Process Accounts Receivable Payment

This process manages payments received for accounts receivable entries. Upon payment receipt, the system shall:

1. Automatically identify the accounts receivable entry and associated transaction.

2. Verify that the payment matches the receivable amount, transaction details, and customer/vendor/service provider details.

3. Mark the accounts receivable entry as "Paid" or "Complete" if the payment matches.

If the payment details do not match an accounts receivable entry, the system shall capture this information and assign the unmatched entry to an authorized SCDMV finance employee for review and resolution.

7.3. System Features

1. The system shall create an accounts receivable entry on the customer's account for all transactions where money is due, including dishonored payments, fines, or penalties. Accounts receivable entries must be settled before pending or future transactions can be completed. This includes all outstanding fees, such as interest, penalties, and court fees.

2. The system shall display all accounts receivable entries associated with a customer on the customer’s 360-degree view for authorized SCDMV employees.

3. The system shall generate aging reports for accounts receivable entries categorized by type.

4. Aging reports may be generated for accounts receivable entries associated with customers, business customers, or service providers.

5. If the number of accounts receivable entries exceeds a specified threshold, the system shall generate an alert for authorized SCDMV employee.

6. An alert may be generated if a customer has more than one accounts receivable entry (configurable within the system).

7. An alert may be generated if a business customer or service provider has more than five accounts receivable entries (configurable within the system).

8. The system shall have the capability to generate a monthly billing statement for each customer.

9. The system shall provide a capability to sign-up for auto-pay option for account receivable entry, if the customer has chosen a payment plan option, with an option to receive monthly billing.

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Accounts Payable

8.1. Overview

The system shall track and manage all accounts payable to vendors, service providers, and customers.

8.2. Process Descriptions

8.2.1. Process Accounts Payable

The system shall process accounts payable for invoices submitted by customers, vendors, or service providers for services provided or purchase orders issued by the

SCDMV.

1. The system shall match the invoice amount with the purchase order and the cost of services or products provided, ensuring the invoice amount aligns with the purchase order.

2. For partial fulfillment of a purchase order, the invoice shall reflect only the completed portion of the order.

3. For payments processed in the State’s accounting system:

a. The system shall send the payment information to the state accounting system.

b. The invoice will be marked as paid upon receipt of a notification from the State’s accounting system indicating the payment check has been sent.

8.3. System Features

1. The system shall maintain a complete history of all accounts payable, including the details of when payments were processed for each payable or invoice.

2. The system shall provide the capability to reconcile all payables upon processing payments from the SCDMV's account.

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Dishonored Payment

9.1. Overview

When a payment made by a customer is returned by the bank as dishonored, such transactions must be tracked and managed in the system. Dishonored payments can occur for payments made via check or credit card. The system shall have the capability to track, manage, and process all dishonored payments.

9.2. Process Descriptions

9.2.1. Process Dishonored Payment

This process handles dishonored payments on checks.

1. Notification Handling – The State’s bank sends dishonored payment notifications to the State Treasurer’s Office, which forwards the information to the SCDMV Finance Division.

2. Transaction Marking – The finance division researches and marks the associated transaction as unpaid. Supporting documents are identified and linked to the transaction.

3. Service Stop / Suspension – Services and products linked to the unpaid transaction are marked as unpaid, and a timer is set to suspend these items after a specified number of days and this period shall be configurable.

4. Penalty Assessment – A dishonored payment penalty is added to the customer’s account.

5. Customer Notification – Notifications are sent to both the payee and the customer who received the services, informing them of the unpaid status, the dishonored payment penalty, and the requirement to make payment within a specified timeframe. The same mode of payment will not be accepted for repayment.

6. Account Flagging – Both the payee’s and recipient’s accounts are flagged for the dishonored payment.

9.2.2. Update Status on Customer’s Products and Services

This process updates the status of the customer’s products and services based on payment status.

1. Payment Received – If the customer makes the payment, their products and services are marked as paid. The suspension may be removed once the payment is received.

2. Payment Not Received – If the customer fails to make the payment within the notification period, the timer triggers the suspension of their products and services.

The funds allocated to various GL codes are marked as returned (not available for disbursement). A notification is sent to the customer informing them of the suspension of their products and services.

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9.3. System Features

1. The system shall track dishonored payments for each customer, including both the payor and the recipient of products or services.

2. Based on the "Dishonored Payment" flag, the SCDMV may restrict the customer to make payments using guaranteed funds only, such as cash, money orders, credit cards, cashier’s checks, or other payment methods configured by the SCDMV.

3. Repeat dishonored payments from the customer shall result in payment restrictions on their record for a configurable period.

4. Repeat dishonored payments from the customer shall result in guaranteed funds-only status on their record for a configurable period.

5. The system shall monitor all dishonored payments and set an indicator on the customer’s account if they are identified as a repeat defaulter.

6. The criteria for defining a repeat defaulter and the restriction period for not accepting certain payment types shall be configurable within the system.

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Drawdown Account

10.1. Overview

Certain customers regularly interact with the SCDMV and perform multiple transactions simultaneously. These customers require the ability to view and manage their draw-down account balances. This functionality may also be extended to bulk record requestors who periodically request multiple customer records, including driving and vehicle records, from the SCDMV.

10.2. Process Descriptions

10.2.1. Create Drawdown Accounts

The system shall allow the SCDMV employee to set up a draw-down account to facilitate payments for transactions with the SCDMV.

1. The draw-down account shall be linked to the customer’s account. The financial institution associated with the account shall be verified, enabling fund transfers from the draw-down account to the SCDMV’s account.

2. The authorized user who is permitted to operate the account shall be identified and recorded during the setup process.

10.2.2. Maintain Drawdown Accounts

Authorized users or officers shall be able to maintain their draw-down accounts, including:

1. Adding authorized users.

2. Adding funds to the account.

3. Initiating fund transfers to the SCDMV for processed transactions.

4. If account details such as bank information or authorized user details need to be updated, the customer, with assistance from the SCDMV employee, shall be able to modify the account information.

10.3. System Features

1. Draw-down account balances shall be linked to the customer’s account and financial profile.

2. Customers shall be able to access their draw-down account balances via an online portal.

3. Customers shall be able to add funds to their draw-down accounts, either independently or with assistance from the SCDMV employee.

4. Customers shall be able to send payments to the SCDMV to fund their draw-down accounts.

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5. Both the customers and the SCDMV employees shall be able to link specific transaction types to draw-down accounts so that payments for those transactions are automatically withdrawn from the draw-down account.

6. Draw-down payments shall be recorded in SCEIS if required.

7. Each customer may have only one active draw-down account with the SCDMV at any given time.