Exhibit_3.pdf

Attachment 2 Exhibit 3

PAYEE FILE MAINTENANCE

Payee File Maintenance and Customer Service

Single Family Acquired Assets Branch

1/1/2015

EXHIBIT 3

TABLE OF CONTENTS

Payee File Maintenance ……………………………………………………….…….…... 1

Customer Service Help Desk ………………………………………………………….… 7

Operating And Internal Control Procedures And Quality Control Plan (QCP) ………...… 8

Internal Audit ……………………………………………………………………………... 9

Timeliness Requirement …………………………………………………………………. 10

Deliverables ……………………………………………………………………………... 11

Map: Home Ownership Center (HOC) areas ……………………………………………. 12

Form: SAMS-1110 ..…………………………………………………………………….. 13

Form: SAMS-1111 .……………………………………………………………………... 15

Form: SAMS-1204 .……………………………………………………………………... 17

Form: SF-3881…………………………………………………………………………... 18

Payee File Maintenance Page 1 User Guide, v.1

PAYEE FILE MAINTENANCE

1. Mail Receipts

1. Mail shall be collected daily: sent through U.S. Postal Service and private courier. An address for private courier deliveries shall be provided.

2. Open and sort mail daily.

3. Date and time stamp all HUD forms/correspondence. A resubmitted package requires a new time and date stamp and a new deadline begins.

4. Separate the forms in each category into subtypes as described below:

5. Payee File Maintenance Forms:

• SAMS-1110, Taxing Authority Profile

• SAMS-1111, Payee Name and Address

• SAMS-1204, Authorized Signature for Vendor File Maintenance

• SF-3881, ACH Vendor/Misc. Payment Enrollment Form

2. Document Receipt and Distribution

Complete, within 2 business days (48 hours) of receipt, the processing of any correctly completed payee forms. Single Family Acquired Asset Management Systems (SAMS) provides a report of all vendors using a Tax Identification Number (TIN), [e.g., an Employer Identification Number (EIN) or Social Security Number (SSN)}, once the TIN has been recorded. The system also provides reports and screens so that information on vendors can be researched. Form processing includes:

a.) Confirming completeness and the presence of the required original signature of an authorized HUD representative.

b.) Checking system reports to ensure the data entry will not result in a duplicate entry in the system.

c.) Accurate data entry to the system and data correction in the event of error.

Note: Only forms with original signatures shall be processed. Copies, including facsimiles, of forms referenced herein are not acceptable for processing under any circumstances and shall be rejected.

Payee File Maintenance Page 2 User Guide, v.1

Payee File Maintenance (Continued)

3. Document Review and Data Entry a.) Review and enter information regarding the establishment of or changes to payee and taxing authority profiles.

b.) Do not process forms until and unless identified errors and /or omissions are remedied.

c.) Reject and return, within 2 business days (48 hours) of receipt, any incomplete, erroneous (to include duplicate), and/or unsigned SAMS payee forms, for correction via U.S. mail to the HOC Director or Designee in the submitting office. Annotate discrepancies, omissions or duplicates on a separate error explanation form. The error forms shall be attached to the original incoming form and should be returned to the submitting HOC as specified above. Review the entire form before attaching an error form to a rejected package to avoid multiple subsequent rejections of the same form.

HOC staff is responsible for correcting all errors and returning the forms for reprocessing.

d.) Upon completion of a day’s data entry, sort all forms by type, e.g., Forms SAMS- 1110, SAMS-1111, SF-3881, (not intermingled), and by HOC and securely file on-site. Files shall be kept on site for a minimum of one year, and then the files shall be transferred to the Federal Records Center.

e.) Do not release, verbally or in writing, any information regarding system data to any individual or entity without prior permission from the GTM(s) or designee.

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Payee File Maintenance (Continued)

4. Payee File Maintenance Payee Profiles a.) Maintain a copy of the executed Form SAMS-1204, Authorized Signature for Payee File Maintenance, with signatures from each HOC and Headquarters and use these forms to validate the authorized signature on each payee maintenance form. HUD shall provide copies of all forms SAMS-1204.

b.) Do not establish a payee or perform payee file maintenance of any sort unless the following conditions have been met:

1.) Received a properly completed and executed copy of the latest approved edition of one of the following Payee File Maintenance forms

• Form SAMS-1110, Taxing Authority Profile

• Form SAMS-1111, Payee Name and Address Note: Form SAMS-1110 or –1111 may be accompanied by Form SF-3881.

2.) The original Approver’s signature appearing on the SAMS form matches the signature of one of the authorized individuals included on the Form SAMS-1204.

c.) Perform a two-part process when establishing a payee in SAMS.

1.) Part I

a. Key the following information to SAMS to initiate payee:

• Form SAMS-1110: Blocks 2 and 3; add IRS Error code “8” and continue with section 2.) Part II.

• Form SAMS-1111: Blocks 2a. and 2b. or 3a. and 3b.

b. Complete a TIN match in the IRS e-services database daily for all SAMS- 1111 new and resubmitted payees entered into SAMS by performing the following steps:

1. Create a text file of SAMS-1111 new and resubmitted payees. Data shall be in the prescribed format as stated in the latest version of IRS Publication 2108A, On-line TIN Matching Program.

2. Send text file to IRS via on-line transmission through the IRS website.

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Payee File Maintenance (Continued)

c. Receive the match results via IRS mailbox, download, and key IRS error codes to SAMS. The IRS error codes are as follows:

• “0” – indicates the name/TIN combination matches IRS records.

• “2” – indicates TIN entered is not currently issued.

• “3” – indicates the name/TIN combination do not match IRS records.

• “4” – indicates an invalid TIN Matching request.

• “6” --**exception granted by HUD staff despite code cited by IRS.

• “8” – **payee type TA (Taxing Authority) or GT (Government). These payees are not matched with IRS as Form 1099-MISC’s are not issued to these payee types.

• “9” – **payee name and EIN/SSN is incorrect and will no longer be used.

Note: ** These codes are not IRS error codes, but are being added in case of exceptions.

2.) Part II

a. After IRS error codes have been entered into SAMS, proceed with the completion of the payee profile process.

b. For all payees with an error code of “0”, continue to process the payee package to establish a Name/Address Identifier (NAID) and EFT profile if applicable. Key the following to SAMS:

• Form SAMS-1110: Blocks 4, 6, 8-13, 15-28

• Form SAMS-1111: Blocks 2c, 5-14, 25-26

• Form SF-3881: Blocks (1.) NAID, (2.) Nine-digit Routing Transit Number, (3.) Depositor Account Number, (4.) Status Code

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Payee File Maintenance (Continued)

c. For payees with an error code of “2-4”;

• Ensure all data sent to IRS is accurate. If data-entry errors are found, correct and resubmit to IRS via Interactive TIN matching process. Key in new error code and continue with 3.) a., above.

• If found that EIN/SSN was originally keyed incorrectly to SAMS, code this entry as IRS error code “9” and re-key to SAMS as new payee with correct data.

• If no errors are found, follow processing procedures as indicated in paragraph III. A. 2.

d. If unable to determine why a payee is receiving an error code other than “0”, HUD then may make an exception for the payee to be entered into SAMS.

Code “6” is entered as the payee’s error code and processing is continued to establish a NAID.

Note: Code “6” exception is only valid for 120 days after NAID activation.

This is to give the payee sufficient time to remedy the problem with IRS.

After 120 days, the NAID may be deactivated by HUD staff.

d.) Key the following information to SAMS when modifying an established payee:

• Form SAMS-1110: Block 7 and any changes

• Form SAMS-1111: Block 4 and any changes

• Form SF-3881: Blocks 1-4 e.) Key the following information to SAMS when adding an additional NAID to an existing payee.

• Form SAMS-1110: Blocks 2, 4, 15-19, and 20-28

• Form SAMS-1111: Blocks 2a or 3a, 2c, 5-6, 9-16, and 25-26 f.) Key the following information to SAMS when adding (linking) additional HOC areas to new or existing NAIDS.

• HOC Area g.) Key the following information to SAMS when enrolling an established payee for

EFT:

• Form SF-3881

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Payee File Maintenance (Continued)

5. IRS Bulk TIN Matching

On a monthly basis, a text file from the GTM or designee shall be received via email containing all SAMS-1111 payees entered into SAMS for that month. The following shall be performed:

a) Send text file to IRS via on-line transmission through the IRS website.

b) Receive the match results via IRS mailbox and download.

c) Review results.

d) Ensure all SAMS data sent to IRS is accurate. If data-entry errors are found, correct and resubmit to IRS via Interactive TIN matching process.

Note: The Contractor shall make available a minimum of two staff members to become Delegated Users of the e-Services Program established by the IRS at https://la1.www4.irs.gov/e-services/Registration/index.htm. These employees shall have a thorough understanding of IRS Publication 2108A, On-line TIN Matching Program which can be found at http://www.irs.gov/pub/irs-pdf/p2108a.pdf. Particular attention should be made to Sections 9-11 of this publication.

http://www.irs.gov/pub/irs-pdf/p2108a.pdf

Payee File Maintenance Page 7 User Guide, v.1

CUSTOMER SERVICE HELP DESK

1. The primary focus of this operation is to provide technical assistance to all customers on all tasks required within this user guide. At least one customer service representative (CSR) shall be provided. The CSR shall be available between 9:00a.m. and 5:00p.m.

EST. At a minimum, the CSR shall be knowledgeable, courteous, thorough and prompt.

This function is considered to be extremely important, and it is imperative that highly qualified staff perform these duties.

2. Technical assistance shall be provided directly to customers to resolve errors or omissions on SAMS forms and to return a completed error form to any HOC submitting an erroneous (including duplicate), incomplete, or unsigned SAMS form for processing.

Inquiries may relate to, but are not limited to, NAID issues or other tasks required under this contract. The CSR shall communicate via telephone, linkage to the Department’s e-mail package, and/or fax to maintain a trail as appropriate. Requests for assistance in preparation of payee file maintenance forms shall be referred to the GTM(s) or designee unless otherwise directed by the GTR. Assistance to the GTR and the GTM(s) shall be provided in resolving problems, which hinder the processing of all tasks described herein, and shall refer patterns of errors to the GTR or GTM(s) for resolution.

3. Respond to customer inquiries within 2 business days. If Customer Service receives no response to its request to a HOC for additional information within 3 business days, the entire related NAID form shall be “rejected” and returned in its entirety with the appropriate explanation and error notification to the originating office. Inquiries shall be logged into a customer service journal indicating date/time of both initial contact and subsequent resolution and containing sufficient information to be used in determining if patterns of errors exist in issues referred to or resolved by Customer Service staff.

4. The Contractor shall provide a preliminary format for the journal and revise it as necessary following consultation with the GTM(s).

Payee File Maintenance Page 8 User Guide, v.1

OPERATING AND INTERNAL CONTROL PROCEDURES AND

QUALITY CONTROL PLAN (QCP)

Within 30 days of the effective date of the task, specific written operating and internal control procedures and a QCP relating to the processing of payee file maintenance and all other activities established and required by this order shall be provided to the GTR. The GTR shall, at his/her discretion, provide additional instructions and guidance in this area. Update procedures as necessary and provide a copy of all updates to the GTR.

Payee File Maintenance Page 9 User Guide, v.1

INTERNAL AUDIT

1. On an annual basis, the Contractor shall conduct its own internal control review of all payee file maintenance related tasks performed under this contract. A written report detailing the results of the review shall be submitted to the GTM.

2. The objectives of the independent report are to assist the program managers in determining whether the auditee (Contractor) has complied with the following:

a.) Payee File Maintenance

1.) Ensure all forms have required original signatures.

2.) Ensure that no data is established in the system on any basis other than the receipt of a properly completed and executed SAMS form from a HUD Office.

3.) Ensure that the internal controls specified in the contractor’s operational procedures are in place and that staff is in full compliance with those procedures.

Payee File Maintenance Page 10 User Guide, v.1

TIMELINESS REQUIREMENT

1. Within 2 business days (48 hours) of receipt, begin the processing of each form received by entering it into the database and performing the review of required elements.

2. The GTM(s) shall conduct periodic on-site or remote reviews to determine compliance with this requirement. The Contractor agrees to permit announced and unannounced on-site monitoring reviews at the request of the GTM(s). The Contractor shall provide access to the originals or copies, as appropriate to the type of review, of all materials required by the GTM(s) to complete the review.

3. Payee File Maintenance

a) Ensure compliance with data entry time limit requirements by entering to the respective screen the date on which the form was approved by the appropriate Field Office representative, i.e. Approver/Security Administrator.

b) The system shall automatically record the date on which the Contractor entered the information and factor in a 4-day mail time allowance. The overall timeliness of data entry will be evaluated by comparing the average elapse time between date signed and date entered with trend data for each office. Abnormally high elapse time averages will be verified by comparing computer reports to source documents.

4. Internal Audit

All Internal Control Reviews conducted by the Contractor shall be completed within two weeks of initiation. The written report shall be provided to the GTR within two weeks of completion of the review.

5. Technical Assistance (TA)

All TA shall be completed within three business days upon assignment of the work.

6. Other Tasks

All other tasks shall be completed within five business days upon assignment of the work or as otherwise instructed by the GTM(s).

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DELIVERABLES

Monthly Performance Reports

The Contractor shall prepare and provide the GTM(s) or designee with the following status reports on a monthly basis. The GTM(s) or designee shall receive such reports no later than the fifth business day after the last day of the reporting month.

Workload Reports

Payee File Maintenance: Provide reports showing totals and subtotals for each type of payee file maintenance form (such as Forms SAMS-1110, SAMS-1111, SF-3881, etc.)

received, processed, not processed (with an explanation why they were not processed), rejected/returned, by HOC Area.

Problem Reports

Problems, which hinder any tasks required by this contract, shall be communicated to the GTM(s) or designee as they occur or when possible, are anticipated.

Customer Service

A monthly customer service report summarizing the journal according to HOC shall be provided to the GTM(s). The monthly report shall include number of inquiries, type, HOC Area, and number of issues addressed, length of time for resolution.

Internal Control Requirements

All review or audit reports will be in written form and provided to the GTR via email.

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