Recoupment of the Federal Share of Collections Made on Behalf of Children in Foster Care
Foster Care, Recoupment of
Child Support Enforcement Program
Action Transmittal U.S. Department of
Health and Human Services
Administration for Children & Families
Office of Program Support
Office of Child Support Enforcement
Washington, D.C. 20447
Transmittal No. OCSE-AT-97-01 Date: January 6, 1997
TO: STATE AGENCIES ADMINISTERING THE FOLLOWING PROGRAMS UNDER THE SOCIAL SECURITY ACT: THE CHILD SUPPORT ENFORCEMENT PROGRAM UNDER TITLE IV-D; THE FOSTER CARE MAINTENANCE ASSISTANCE PROGRAM UNDER TITLE IV-E; THE AID TO FAMILIES WITH DEPENDENT CHILDREN PROGRAM UNDER FORMER TITLE IV-A; THE TEMPORARY ASSISTANCE TO NEEDY FAMILIES PROGRAM UNDER TITLE IV-A, AS AMENDED; AND OTHER INTERESTED INDIVIDUALS AND ORGANIZATIONS.
SUBJECT: The Calculation and Recoupment of the Federal Share of Child Support Collections Made on Behalf of Children in Foster Care Facilities Under The Provisions of Public Law 104-193, the "Personal Responsibility and Work Opportunity Reconciliation Act of 1996" (PRWORA)
BACKGROUND: Under former Section 457 of the Social Security Act (Act), as in effect prior to the enactment of PRWORA, the Federal government received an "appropriate reimbursement" of its share of any child support collections made under the Child Support Enforcement (CSE) Program on behalf of needy children eligible to receive assistance payments under the former Aid to Families with Dependent Children Program and who were placed in foster care facilities operated pursuant to a Title IV-E State Plan. The Act provided that the Federal share of these collections would equal "the extent of its participation" in the assistance payments which, under Section 1118 of the Act, is calculated using the Federal medical assistance percentage (FMAP) rate.
Under PRWORA, amended Sections 457(a)(1), (a)(2) and (c)(2) of the Act continue the requirement that a State must "pay to the Federal Government the Federal share of" child support collections made on behalf of children receiving assistanceand mandate the use of the current FMAP rate for this purpose.
POLICY:Prior to the enactment of PRWORA, States had the option of calculating the Federal share of collections using either the FMAP rate for the fiscal year in which the collection was made or the FMAP rate for the fiscal year the collection was due, whichever was most beneficial. Under PRWORA, this option is eliminated and the use of the FMAP in effect during the fiscal year in which the collection is made is mandatory.
EFFECTIVE DATE: For any State that implemented a Temporary Assistance for Needy Families (TANF) Program prior to October 1, 1996, the mandatory use of the current FMAP rate is effective for all collections made on or after the date of program implementation. For all other States, the mandatory use of the current FMAP rate is effective for all collections made on or after October 1, 1996.
ACTION REQUIRED: All States will continue to report child support collections using Form OCSE-34, "Child Support Enforcement Program, Quarterly Report of Collections." Child support collections received on behalf of children in Title IV-E foster care facilities will continue to be reported in column (c), with the Federal share reported on Line 18 of that quarterly report.
Likewise, child support collections and the Federal share of those collections will continue to be reported on Parts I and II, respectively, of Form IV-E-12 and will continue to reduce the Federal share of expenditures under Title IV-E.
RELATED REFERENCE: See Action Transmittal OCSE-AT-96-06, dated November 4, 1996.
INQUIRIES: Direct all inquiries to the ACF Regional Administrator.
David Gray Ross Norman L. Thompson
Deputy Director Director
Office of Child Support Office of Program Support