Control Budget Journals Deny Not Working

PeopleSoft Financials 9.2.36

I need some guidance on setup for the KKJournalApproval process. We implemented 6 years ago and it works well except for denials and alternate approvers. If a budget journal is denied for any reason, it's a hard stop where the journal must be re-entered if it just needed a correction. Also, the status doesn't change to Denied - it stays as Pending. If an approver is out of the office and assigns an alternate approver, the budget journal doesn't automatically re-route to the alternate. This feature works with our other approval workflows. Our setup is approval by Line, not Header.