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Final Rule: AFDC, Grants to States, Reporting the Federal Share of Child Support Collections

AT-86-10

Published: April 29, 1986
Information About:
State/Local Child Support Agencies, Other Public Partners, TANF (IV-A)
Topics:
Federal Reporting, Funding, Cost Recovery, Federal Financial Participation (FFP)
Types:
Policy, Action Transmittals (AT), Regulations

ACTION TRANSMITTAL

OCSE-AT-86-10

April 29, 1986

TO: STATE AGENCIES ADMINISTERING CHILD SUPPORT ENFORCEMENT PLANS UNDER TITLE IV-D OF THE SOCIAL SECURITY ACT AND OTHER INTERESTED INDIVIDUALS

SUBJECT: Aid To Families with Dependent Children; Grants to States for Public Assistance Programs; Reporting the Federal Share of Child Support Collections by States

ATTACHMENT:Attached is a final regulation issued by the Social Security Administration that implements section 407(c) of P. L. 96 265, the Social Security Disability Amendments of 1980. This regulation requires States to report on their quarterly statement of expenditures the appropriate Federal share of child support collections made by the State. If States do not fully or properly report the Federal share of child support collections made on their quarterly statement of expenditures, the Federal government will adjust its share accordingly.

REGULATION

REFERENCE: 45 CFR 201.5

EFFECTIVE

DATE: April 21, 1986; compliance retroactive to the statutory implementation date of January 1, 1981.

SUPERSEDED

MATERIAL: OCSE-AT-85-14, dated September 23, 1985.

INQUIRIES TO: OCSE Regional Representatives

___________________________________

Deputy Director

Office of Child Support Enforcement

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Social Security Administration

45 CFR Part 201

Aid to Families With Dependent Children; Grants to States for Public Assistance Programs; Reporting the Federal Share of Child Support Collections by States

AGENCY: Social Security Administration, HHS.

ACTION: Final rule

SUMMARY: This final regulation, which implements section 407(c) of Pub. L. 96-265, the Social Security Disability Amendments of 1980, requires the Department of Health and Human Services to reduce the quarterly grant award made to a State under title IV-A by the appropriate Federal share of child support collections made by a State. This final rule is a technical charge to clarify that the amount of the quarterly grant award made to a State will be reduced by the Federal share of child support collections made, like any other pro rata share of recovered funds to which the Federal government is entitled.

EFFECTIVE DATE: April 21,1986; Compliance retroactive to the statutory implementation date of January 1,1981.

FOR FURTHER INFORMATION CONTACT: Ms. Barbara Mr. Levering, Director, Office of Intergovernmental Communications, Office of Family Assistance, Social Security Administration, 2100 Second Street, SW., Washington, DC, 20201, telephone (202) 245-2637.

SUPPLEMENTARY INFORMATION: On August 21, 1985, a notice of proposed rulemaking was published in the Federal Register (50 FR 33784-33786).

Section 403(b)(2)(B) of the Social Security Act requires the Department to reduce the amount of the quarterly grant award made to a State under title IV-A by a sum equivalent to the pro rata share to which the Federal government is equitably entitled from the net amount recovered during any prior quarter by a State or political subdivision within a State. In 1980, Congress clarified the Department's authority to reduce quarterly grant awards by child support collections when it passed Pub. L. 96-265. (Section 407 (c) of Pub. L. 265) amended the Social Security Act (the Act) by adding a new section 403(B)(2)(C) to title IV-A that specifically provided that the quarterly grant awards made to a State under the AFDC program are to be reduced by whatever amount is necessary to assure that the appropriate Federal share of child support collections made by a State are returned to the Federal government.

This rule implements section 407(c) by amending 45 CFR 201.5(a)(3) to provide that States must report on their quarterlystatement of expenditures the appropriate Federal share of child support collections that they make.

If States do not fully or properly report the Federal share of child support collections made on their quarterly statement of expenditures, the Federal government will adjust the Federal share reported accordingly. The adjustment will be made pursuant to 45 CFR 201.5 (c). We saw no need to amend 45 CFR 201.5(c) since that section already requires quarterly grant awards to be reduced "because over-or under-estimate for the prior quarter and for other adjustments". We would consider any recovery of child support payments to be an "other adjustment".

Response to Public Comments on Notice of Proposed Rulemaking

A 60-day comment period was provided in the August 21, 1985, notice of proposed rulemaking. We received one letter from one State agency indicating awareness of the published proposal with no further comment.

Regulatory Procedures

Executive Order 12291

This regulation does not meet the criteria specified in Executive Order 12291 for a major regulation and no regulatory impact analysis is required.

Paperwork Reduction Act

Pursuant to the Paperwork Reduction Act of 1980 (Pub. L. 96-511) the Quarterly Statement of Expenditures (SSA-41) in its present format-which is used by States to report their expenditures and the Federal share of all collections has been approved by the Office of Management and Budget under existing OMB No. 90-0294. There is no further or new collection of information request being imposed on State agencies by this technical regulatory change.

Regulatory Flexibility Act

We certify that this regulation will not, if promulgated, have a significant economic impact on a substantial number of small entities because it affects only the transfer of funds between the Federal government and the States. Therefore, a regulatory flexibility analysis as provided in Pub. L. 96-354, the Regulatory Flexibility Act, is not required.

(Catalog of Federal Domestic Assistance Program No. 13.808-Public Assistance- Maintenance Assistance (State Aid).)

List of Subjects in 45 CFR Part 201

Aid to families with dependent children, Family assistance office, Grant programs-Social programs, Guam, Public assistanceprograms, Puerto Rico, Virgin Islands.

Dated: February 20, 1986.

Martha A. McSteen,

Acting Commissioner of Social Security.

Approved: March 18, 1986.

Otis R. Bowen,

Secretary of Health and Human Services

PART 201-[AMENDED]

45 CFR Part 201 is amended as set forth below.

1. The authority citation for Part 45 CFR Part 201 is revised to read as follows:

Authority: Secs. 403 and 1102 of the Social Security Act, as amended; 49 Stat. 628, as amended; 49 Stat. 647, as amended; 42 U.S.C. 603, and 1302, and 1302.

2. Section 201.5 is amended by revising the introductory text and paragraph (a)(3) to read as follows;

õ 201.5 Grants.

To States with approved plans, grants are made each quarter for expenditures under the plan for assistance, services, training and administration. The determination as to the amount of a grant to be made to a State is based upon documents submitted by the State agency containing information required under the Act and such other pertinent facts, including for title IV-A the appropriate Federal share of child support collections made by the State, as may be found necessary. Progressive reductions in Federal Medicaid payments to the States under sections 1903(g) and (t) of the Act for fiscal years 1982-1984 are described in 45 CFR Part 433, Subpart E.

(a) Form and manner of submittal. (1)

* * *

* * * * *

(3) The State agency must also submit a quarterly statement of expenditures for each of the public assistance programs under the Act. This is an accounting statement of the disposition of the Federal funds granted for past periods and provides the basis for making the adjustments necessary when the State's estimate for any prior quarter was greater or less than the amount the State actually expended in that quarter. The statement of expenditures also shows the share of the Federal Government in any recoupment, from whatever source, including for title IV-A the appropriate Federal share of child support collections madeby the State, of expenditures claimed in a prior period, and also in expenditures not properly subject to Federal financial participation which are acknowledged by the State agency or have been revealed in the course of an audit.

[FR Doc. 86-8488 Filed 4-18-86; 8:45 am]

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