dcl9340.htm

Cost Recovery for FPLS

DC-93-40

August 24, 1993

TO ALL STATE IV-D DIRECTORS

RE: Cost Recovery for FPLS

Dear Colleague:

This letter is to notify you of the Office of Child Support Enforcement's (OCSE) continuing efforts to simplify the cost recovery procedures for States submitting non-AFDC, locate only, rand parental kidnapping and child custody cases to the Federal Parent Locator Services (FPLS) for processing. Unlike pervious instructions, we will refund States' unspent advance payment balances for FY 93 instead of carrying over these balances into the next fiscal year (as we stated in AT-92-04). This is to accommodate several States' requests that we refund their money.

Background

oOn August 12, 1992, OCSE issued AT 92-04 notifying States of the billing procedures for submitting cases to the FPLS.

0On January 26, 1993, OCSE issued AT-93-01, which amended AT-92-04, notifying States of the revised cost/recovery procedures. Under the revised procedures, specific instructions were given relative to States' FPLS charges being offset against their Federal payments. We also indicated that the unused portion of the advance payments. We also indicated that the unused portion of the advance payments for FY 93 would be carried over to the next fiscal year.

UPDATED REPORTING PROCEDURES

States who have spent more than their advance payment balance during, or prior to, the third quarter should have reported the additional charges on line 11 of the Financial State Report (Form OCSE-131). These charges are an offset against the State's Federal quarterly payment.

Beginning with the fourth quarter reporting (July 1-September 30, 1993) and for FY 94 and beyond, all States will report actual charges for cases submitted to the FPLS on the OCSE Form OCSE-131. OCSE will continue to provide each State with a quarterly invoice (see OCSE-AT-93-01).

Under these updated procedures, you will no longer need to:

oestimate the number of cases your State expects to submit to the FPLS

opay estimated charges in advance

opay charges to the FPLS for any under-estimating of the number of cases sent to FPLS

REFUNDS

oStates with an advance payment balance at the end of the third quarter (June 30, 1993) will receive a refund. The amount of the refund will be the balance of the advance payment at the end of the third quarter which is reflected on the enclosed OCSE Quarterly Invoice for the period of April 1 through June 30, 1993. A refund check will be sent to you under separate cover.

oThe fourth quarter invoice from OCSE will include any adjustments necessary to bring line 11 reporting on Form OCSE-131 for prior quarters into agreement with FPLS transactions for the year.

FEE FOR FY 1994

We expect to receive a higher volume of cases for FY 1994 which will allow us to lower the charges for FPLS cases. The new fee for FY 94 for processing non-AFDC, locate only and parental kidnapping and child custody cases in $.50 per case. The effective date of this new charge is October 1, 1993.

We appreciate your assistance as we strive to reduce some of the administrative and financial burdens for the States in addition to further enhancing the grants reporting process. If you need additional assistance or clarification, please contact

Ms. Joyce Hampton of my staff on (202) 401-9267.

Sincerely,

Robert C. Harris

Deputy Director

Office of Child Support Enforcement

Enclosure