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Equipment Issuance and Recoupment

Status: Archived

Approved Date: April 03, 2019

Checklists

VR Specialist

  1. Specialist will ensure the Acceptance Agreement form is signed by the client, for each item being provided to the client, and placed in the case file.  A copy can be provided to the client upon request.
  2. During the annual review, and at the time of case closure, the VR Specialist will ensure the item(s) are still being used for the agreed upon employment goal.  At a successful closure, if the item is still being used, this will be recorded in the closure screen, which will close out the loan agreement, if the item is valued at less than $5000.  If at any point, the item(s) are no longer being utilized, Specialist will arrange for the return of the item(s).   An attempt to recoup will always be made for any case that is being closed unsuccessful.  
  3. Document in QE2 whenever items are going to be returned.  There is a drop down box on the Equipment Issuance screen where the Specialist can select if the client is bringing the item to the office, or the Specialist is having ATP arrange to pick up the item from the client's home.  Ensure the date of return is also entered, when that occurs.
  4. If ATP is handling the return, the Specialist will need to email Brooke Harrie with details including the client's name, contact information, the item(s) being returned, and a copy of the acceptance agreement form.  
  5. Items with a value of $5,000 or more will be tracked, even after closure, with an annual depreciation scale of 20%.  An item will show up on the Specialist's To Do list annually, requesting they contact the client in order to assure continued use of the item as intended per IPE or recoupment efforts will be enacted per the steps above.  There is a tab in the Equipment Issuances screen for Over $5000 Item Follow Up; this is what you click in order to complete the task note for follow up after the case is closed.  This will ensure the item is removed from your To Do list.

Process

  1. After determining client need for an item(s), VR Specialist will refer to ATP or AgrAbility if appropriate.  
  2. If ATP/AgrAbility referral is made, review the report with the client, and determine which items will be needed and where funding will come from for each item (client contribution, VR, comparable benefits, etc.)
  3. An authorization for the item(s) VR is providing will be completed.  Upon writing the authorization, if the item is one that could be recouped, an acceptance agreement will be generated by QE2 and printed out with the authorization.  If ATP/AgrAbility is supplying the item, the Acceptance Agreement form will be attached to the Authorization and provided to ATP/AgrAbility, and they will have the client sign it and will then return it to VR.  At this point, the specialist can place it into the case file. 
  4. During the course of the case, if the client is no longer utilizing the item, the Specialist will request the client returns the loaned items.  During the annual review, the Specialist is required to check in with the client to ensure they are still using the item for the agreed upon purpose. 
  5. At case closure, if the client is no longer using the equipment, the Specialist will request the client returns the loaned items.
  6. There are four options in the Equipment Issuance Screen for recouping:
    • Client will return item(s) to the office within two weeks
    • ATP will pick up item(s) from client’s home (Email Brooke Harrie with the client's contact info, location, and item(s) loaned if they request this option.  She will then make arrangements for the local ATP office to pick up the equipment.)
    • The client refuses to return the item/no longer has it/cannot be reached
    • Not Applicable
  7. Select the appropriate option.  Upon receiving the item(s) from the client (or receiving notification from ATP they were received), enter the date returned into the box next to the recoup option.  This will finalize the recoupment and close it out.  'Not Applicable' should only ever be selected if the item is not one that is eligible to be recouped.  Please see the Additional Issues section for more details.  If one of the first two options is being utilized, the case can be closed once the recoupment option is selected; however, it will remain on the counselor's To Do list until the date is entered the item was received.
  8. If a case is being closed successful, and the client is still using the item(s) for the agreed upon job goal, there will be a box in the successful closure screen to notate this, and this will close out the loan acceptance agreement for the item. 

***It is a viable option to speak to a client about selling an item and providing Nebraska VR with a check for the amount it was sold (minus any agreed upon expenses).  This is most likely to be utilized for larger items, farming equipment, or items that are less likely to be reused.  Expenses could include transportation costs, auction fees, etc.  

 

Items over $5000 

  1. If they are still using the equipment and are successfully closed, and the item(s) is over $5,000.00, follow up will continue on an annual basis to inquire if the client is still using the item until the depreciated value falls below $5000.  The item will appear on the To Do list for the Specialist each year, requiring contact with the client to ensure the item is still being used.  Once contact is made, documentation of the contact in the Equipment Issuance Screen will remove the item from the To Do list.  
  2. If the client is not using the item, arrangements will be made, per the checklists above, to have the item(s) returned.  
  3. QE2 will track the depreciation value automatically, and it will be displayed in the Equipment Issuance Screen.  

 

Co-Funded Items

1.  If an item is funded by both VR and the client, and the client is no longer using it and it needs to be returned, we will ask the client to sell it through agreed upon venues, and each party will receive the percentage of the sale they put in to the purchase.  For example, if an item is $2000, and we paid for $1000 of its cost, we would receive 50% of the sale.  So if it sells for $1000, we would receive $500 from the sale.  If there are any costs to selling it (such as transportation costs), those will be deducted prior to dispersing the profit from the sale.  Whenever possible, it is better to avoid co-funding.  If there are multiple items being purchased, try to divide up who is buying what and incorporate that into client contribution. 

2.  In regards to items over $5000 and the depreciation scale---we will only track depreciation based upon our contribution.  So, if an item costs $20,000, and we paid $10,000 we would track depreciation until OUR portion of the value of the item drops below $5000, not the entire cost of the item.  So, in this example, once the total depreciated value drops below $10,000, that would put our portion below $5000, and we would no longer continue to track this item.

 

Additional issues

  • If an item is recouped, and is going to be re-assigned to another client, an authorization does not need to be completed (unless there are installation costs, etc).  Any items that are recouped are being managed by ATP, and therefore, if an item is being re-assigned, they will independently handle any potential recoupment process.  
  • Office Directors should periodically check the Equipment Issuances agency-wide overview screen.  The purpose of this is to review whether there are any closed cases with $5,000+ equipment issuances, and to ensure each of those cases is assigned to a specialist.  If a specialist leaves the agency, or moves into a different role, the OD will need to either assign that case to a different specialist, or handle the annual check in with the client themselves.  The link to the overview screen is  https://qe2.nebraska.gov/quest/case_management/equipment_issuances.  
  • Occasionally, an acceptance agreement form may be generated for an item we would not actually recoup.  In these situations, if you feel the item is not recoupable, please contact the Program Director for Business Services for confirmation.  Once the confirmation has been received, you can go into the Equipment Issuance Screen, click on the Recoupment Options, and select Not Applicable.  This will close out the process with no further action required.
  • If an authorization is completed, and then later is unencumbered, and we will no longer be providing the item to the client, please complete a Help Desk ticket to have the item deleted from the Equipment Issuance Screen.  
  • Office Directors can run a report to see how many items are being closed out as 'Client refused to Return', as well as those items that are closed out as 'Not Applicable'

Policy

Any eligible item provided to a client, over the amount of $500, must be tracked, and recouped if no longer being utilized for the purpose intended.  Eligible items are those that could easily be utilized by another client; in other words, they haven't been personalized to that individual.

Equipment $500-$5,000

Items will be monitored on an annual basis while the case is open, and recouped at any time during the course of the case if they are no longer being utilized by the client for the agreed upon purpose.  At case closure, the item should be recouped if:

  • The case is being closed unsuccessful
  • The client is no longer using the item for their agreed upon employment goal

 

Purchases for clients need to adhere to the following process:

  • Acceptance Agreement completed with client (Form generated with authorization)
  • Items meant for one purpose (such as tools, etc) are considered one item under the purchasing cost
  • Request should be made for the return of the item if no longer being utilized by the client

Equipment Over $5,000

  • Items will follow the same process as those $500-$5,000 while the case is open.
  • Items will have their depreciation value tracked, by QE2, in order to determine if the item/funds will be recouped.  The depreciation scale used will be a flat 20% reduction of value annually. 
  • Nebraska VR retains a vested interest in purchased item, tools, etc. with a value of $5,000.00 and above and is held responsible to repossess the item(s) if no longer being used, until the depreciated value is below $5,000.00.

Examples of Items that Could be recouped (This is NOT an exhaustive list)

  • Laptops
  • Scooters
  • Tools
  • Bicycles
  • Trade Tools
  • Agrability Equipment
  • Self Employment Equipment
  • Certain Vehicle Modifications, such as Lifts, that would be easily removed and transferred

Exclusions

The following items are excluded from attempts to return:

  • Home modifications
  • Certain Vehicle Modifications, such as driving systems, that are integrated into the vehicle.
  • Stand alone Software
  • Prosthetics
  • Wheelchairs/Powerchairs
  • Hearing Aids & Technology
  • Glasses
  • Other items that are determined to be individualized to that particular consumer, which could not be utilized by another person

Background & Training Information

 


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