Code of Massachusetts Regulations
103 CMR - DEPARTMENT OF CORRECTION
Title 103 CMR 405.00 - Fund Accounts
Section 405.10 - Interest Income Earned From Inmate Funds on Deposit

(1) Cash shall not be accepted by the Department except in cases when it is in possession of an I/I or C/C upon admission into the custody of the Department. If cash arrives in the mail, the corrections employee who receives the cash shall document the cash received by properly preparing a pre-numbered DOC receipt form. The cash and prepared receipt shall be placed in an envelope and forwarded to the Superintendent for safekeeping and handled in accordance with 103 CMR 403.16(b)(1), (2), and (4). If the Department determines that the cash was sent in error, the Department may return the funds to the sender or place the funds in the I/I or C/C's Savings Account.

(2) The Department may, in its discretion, implement an Automated Deposit System (ADS), through use of an outside vendor, for receipt and processing of I/I and C/C funds. The methods and means by which funds may be accepted for deposit is determined by the Department. The Department may utilize an ADS in addition to, any other deposit and processing method. If the Department implements an ADS, all funds shall be submitted through the ADS, whenever possible.

(3) Funds processed through an ADS shall be deposited by the vendor directly into a DOC FAS deposit only account as designated by the Department. The vendor shall also provide the Department with the necessary data file, including relevant transaction codes, so that the funds deposited are posted to the correct FAS accounts.

(4) The Department shall create written guidelines to ensure that funds submitted for deposit are not derived from or used for illicit or suspicious activity, or any acts taken in contravention of any DOC regulation or policy. If the Department determines that the funds cannot satisfy the established guidelines, the funds shall be handled in accordance with 103 CMR 403, Inmate Property.

(5) If the Department maintains any boxes for deposits of checks and/or money orders at correctional facilities, the Institutional Treasurer or Designee shall empty the box each business day.

(6) Fiscal Staff shall ensure all cash properly received through the admissions process is properly receipted and accounted for.

(7) Fiscal Staff shall ensure that all checks and money orders received at a correctional facility are forwarded to the Department's ADS vendor for processing in accordance with 103 CMR 405.10(1). If the Department does not have an ADS vendor, the Department shall process such checks and money orders in accordance with 103 CMR 405.10 (4). After the funds are accepted for deposit at the institution or central location, Fiscal Staff shall ensure they are properly recorded and posted to the FAS.

(8) Fiscal Staff shall generate fund receipt slips via the FAS and deliver same to designated staff for distribution to I/Is or C/Cs.

(9) The availability of funds received by the Department will be restricted by means of an account freeze until said funds are properly returned and verified. If the Department learns at any time that funds are not returned or verified, the Department shall remove such funds from the account to which they were posted on the FAS.

(10) All I/I and C/C receipts from the U.S. Treasury, or any other item that requires endorsement, must be properly endorsed.

(11) No institution shall accept/deposit any dual payee check in which an I/I or C/C is a copayee.

(12) The Superintendent may, in their discretion, reject any receipt of funds on the behalf of any I/I or C/C, whether received via an ADS or drop-off, that exceeds a reasonable amount or is not in the best interest of the institution to maintain.

(13) Superintendents shall ensure that cash receiving activities shall be centralized in as few hands as possible.

(14) Persons receiving cash shall not have the ability to enter FAS transactions or change financial account data in FAS.

(15) Incoming mail shall be opened by a person without the ability to enter FAS transactions or change FAS financial data.

(16) All receipts must be deposited intact.

(17) Cashing of checks from daily receipts is prohibited.

(18) Specific persons shall be responsible for cash receipts from the time cash is received until it is deposited.