4.14 - Payment Methods

Monthly assistance cheques are usually issued on the first day of each month. If the entire cheque is not issued on the first of the month, the remainder may be scheduled to be released at other times during the month. The final date on which changes to monthly assistance cheques can be made is referred to as cutoff, a date indicated on the Cutoff Schedule.

The reporting period for clients reporting their income monthly (i.e.: wages, Employment Insurance, training allowance) is from the 22nd of one month to the 21st of the next month. If stubs are not received by the 21st of the month, the case will be suppressed until either they have been received or other action is taken.

Other payments such as Special Benefits which have been approved for the case may also be added to the monthly assistance amount and included in that cheque or may be issued separately. Those issued separately are released the day after the Release Date or the day after the benefit is approved, whichever is later.

Monthly assistance cheques which are issued for a period of less than one month or issued after cutoff, are released the day after being processed.

Assistance cheques may be payable to the client, to a trustee, to a vendor on a client's behalf, or to a combination of these.

If there are multiple payments with the same Release Date to be made to a vendor, only one cheque will be issued - the cheque stub will detail the payment(s).

Direct Bank Deposit (DBD) is a service that allows monthly social assistance benefits to be deposited directly to a client's account. Direct Bank Deposit will save time for the client and the case manager.

Some of the advantages of this service are as follows:

• Reduces the risk of lost or stolen cheques
• In the event of a postal strike the client will receive their benefit on time
• It is convenient and confidential
• A Notice of Direct Deposit will be issued in the mail each month which will detail the amount of the cheque
• Daily cheques are deposited within two days of the benefit being requested
• The monthly basic assistance benefits are deposited on the 1st of each month. If the 1st falls on a weekend or holiday, then the deposit will be made on the last working day of the previous month.

DBD is available only for monthly social assistance benefits that are created the night of cheque cutoff. Any other benefits released during the month will be issued by cheque.

It is the case manager's decision as to whether or not a client is offered the DBD service. There is an element of risk in offering DBD because it is somewhat easier for a client to continue to receive benefits when they may no longer be eligible as opposed to when a paper cheque is the form of payment. To minimize this risk, the case manager shall consider the client's case history, length of time on assistance, living accommodations and prospects for employment and if awaiting income before offering DBD. Future benefits must be suppressed or redirected if the Notice of Direct Deposit is returned undelivered. DBD may be imposed on a client who has a history of lost/stolen cheques.

There are case types where Direct Bank Deposit is not suitable:

• Wage Earners
• Mixed Cases
• Transient
• Clients who have an overdraft on their bank account
• Clients who have a garnishee order
• Clients awaiting EI

The determination of payment method rests with the Minister, per Section 11 of the Regulation under the Family Income Security Act.

DBD may be used for any financial institution provided the account is in New Brunswick and is open. The department will accept direct deposit forms from other financial institutions (i.e., banks and credit unions) provided they contain the same information as the department's direct deposit form.

Billings are used to pay daycare centres for daycare services which have been approved. They are received in the regional offices, approved, and submitted to Financial Services for payment.

A Petty Cash fund is maintained at each SD office. A custodian is appointed who administers this fund according to procedures outlined in Financial Services Policy 404. This method of payment is used only when it is not practical to pay small expenditures by cheque or voucher; or when emergency cash is required for assistance for clients - especially where such assistance cannot be approved to a vendor and paid later (i.e.: transients).

A voucher should only be required in emergencies when a client cannot wait for a cheque and/or a vendor will not agree to bill the department. A voucher is the authorization for payment which clients may give to vendors to purchase specific goods. Vendors submit the voucher and an itemized invoice for payment - if approved, a cheque is issued through NB Case.