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Approval of Program Financial Report Form ACF-396

AT-97-14

Published: September 29, 1997
Information About:
State/Local Child Support Agencies
Topics:
Federal Reporting, OCSE-396A Financial Report
Types:
Policy, Action Transmittals (AT)

ACTION TRANSMITTAL


OCSE-97-14
September 29,1997

TO: STATE AGENCIES ADMINISTERING A CHILD SUPPORT ENFORCEMENT PROGRAM UNDER TITLE IV-D OF THE SOCIAL SECURITY ACT, AND OTHER INTERESTED ORGANIZATIONS, AGENCIES, AND INDIVIDUALS.

SUBJECT:Approval of Form ACF-396, "Child Support Enforcement Program Financial Report."

REFERENCES:Sections 454(10), 455(b), 455(d) and 458(e) of the Social Security Act.

EFFECTIVE DATE:Beginning with the report for the Quarter ending September 30, 1997, to be submitted no later than October 30, 1997.

PURPOSE:This Action Transmittal informs States of the temporary approval by the Office of Management and Budget (OMB) of Form ACF-396. This reporting form replaces Form OCSE-131.

BACKGROUND:Since the implementation of the program in 1975, States have been required to submit quarterly reports detailing the costs incurred in the administration and operation of the Child Support Enforcement Program under Title IV-D of the Social Security Act. The enactment of Public Law 104-193, the "Personal Responsibility and Work Opportunity Act of 1996" (PRWORA) implemented changes in the availability of Federal funding and in the information required to compute quarterly State grant awards. (See "Form Revisions," below.)

OMB was requested to approve this reporting form for a 180-day period to permit OCSE to collect the information necessary to continue to produce accurate Title IV-D grant awards with minimal disruption in program operation.

OCSE continues to review the newly-enacted statutory changes and expects to request long-term OMB approval of a quarterly expenditure report, a quarterly collection report and an annual statistical report before this 180-day approval period expires. (OCSE anticipates few additional revisions to the form included with this Action Transmittal.)

FORM REVISIONS:Following is a summary of the revisions included in Form ACF-396:

Part 1: Quarterly Report of Expenditures and Estimates.

1. Columns have been included for reporting the Federal share of current quarter and prior quarter expenditures on a line-by-line basis.

2. Line 7 added ("Other Approved ADP Expenditures at 80% FFP") in recognition of the new category of Federal funding available under PRWORA.

3. Line 11 added ("Net Federal Share of Child Support Collections"). This information was previously reported as an adjustment on Form ACF-231, the quarterly expenditure report for the Aid To Families With Dependent Children (AFDC) Program under Title IV-A. With the repeal of that program under PRWORA, this information will now be collected as an adjustment on this report.

4. Lines 13, 14 and 15 added ("Fees for the Use of the Child Support Enforcement Network [CSENet]," "Fees for Pre-Offset Notice Services," and "Fees for Other Services," respectively.) These fees were previously reported as an aggregate amount on a single line and individually identified through the use of a footnote.

Part 2: Prior Quarter Expenditure Adjustments.

5. A new funding category has been added in recognition of the availability of FFP at the 80% rate.

Part 3: Semiannual Budget Projections.

6. Changes were made to this Part to accommodate the changes to Part 1.

ATTACHMENTS:
1. Copy of Form ACF-396; (Not included in this Internet version)
2. Instructions for the completion of Form ACF-396.

SUPERSEDED MATERIAL:
With the implementation of Form ACF-396, Form OCSE-131 should no longer be used for quarterly expenditure reporting.

ACTION REQUIRED:
States are requested to photocopy sufficient copies of the attachments to this Action Transmittal to meet their needs.

SUBMISSION:
Form ACF-396 Part 1 and Part 2 are to be submitted by States within thirty days of the end of each fiscal quarter beginning with the report for the quarter ending September 30, 1997. Part 3 is to be submitted semi-annually, by April 30 and October 30.

- A copy with an "original signature" should be submitted to:

Administration for Children and Families
Office of Program Support
Office of Management Services
Division of Formula, Entitlement and Block Grants
370 L'Enfant Promenade, S.W.
Mail Stop: OPS/OMS/DFEBG
Washington, D.C. 20447
 

- An additional photocopy should be submitted to the ACF Regional Administrator.

___________________
David Gray Ross
Deputy Director
Office of Child Support Enforcement

__________________
Norman L. Thompson
Director
Office of Program Support

INSTRUCTIONS FOR COMPLETION OF FORM OCSE-396
 

All States are required to complete and submit this report in accordance with these instructions on behalf of the State agency administering the Child Support Enforcement Program under title IV-D of the Social Security Act.

Due Dates: Parts 1 and 2 must be submitted quarterly by January 30, April 30, July 30 and October 30. Part 3 must be submitted semiannually by April 30 and October 30.

Distribution: The original copy (with original signatures) must be sent to: Administration for Children and Families, Office of Program Support, Division of Formula, Entitlement and Block Grants, 370 L'Enfant Promenade, S.W., Washington, DC 20447. An additional copy must be sent to the ACF Regional Administrator.

FORM OCSE-396, PART 1
QUARTERLY REPORT OF EXPENDITURES AND ESTIMATES

General Instructions.
- Round all entries to the nearest dollar. Omit cents.
- Enter the State name
- Check box to indicate whether this is a new report or a revision of a report previously submitted for the same period.

- Enter the ending dates of the current quarter (the quarter just ended for which this constitutes the report of actual expenditures) and the next quarter (the upcoming quarter for which expenditure estimates are being reported).

DEFINITIONS:

Expenditures: The amounts reported by the State or local government as expenditures or reductions to expenditures, such as interest, fees or other income, must be actual, verifiable transactions, e.g. payments to vendors or service providers, interest credited to an account, etc., that occur during the quarter for which it is being reported, or indirect costs allocable to the quarter being reported in accordance with an approved cost allocation plan. To be allowable, all expenditures must be in accordance with the approved title IV-D State Plan and all applicable statutes, regulations and policies.

"Current Quarter Claims:" Those expenditures that occurred in or are allocable to the quarter being reported. Expenditures made in the current quarter are reported, even if applicable to a previous quarter. (See Federal Regulations at 45 CFR 95.4 and 95.13(b) and (d).)

"Prior Quarter Adjustments:" Those expenditures that occurred in or are allocable to a previous quarter but which were either not reported, or were incorrectly over- or under-reported on the report submitted for that quarter. Expenditures made in the current quarter are reported, even if applicable to a previous quarter. This is a "net" amount, combining individual increasing and decreasing adjustments. Any adjustment reported in this column must be detailed and separated into the increasing and decreasing components by completing Part 2 of this report.

"Next Quarter Estimates:" The anticipated costs for the quarter indicated. This estimate should include any costs incurred during a prior quarter for which payments or refunds are expected to be made during the next quarter. The estimate of the Federal share constitutes the State's request for Federal funds in that amount for the Child Support Enforcement Program. Any reference to "estimates" or "estimated expenditures" included in the instructions below are applicable to amounts in this column only.

"Total:" The combined amount of expenditures, including both State and Federal shares.

"Federal Share:" The Federal portion of total expenditures, calculated using the Federal financial participation (FFP) rate applicable to type of expenditure on each line. The Federal share of an increasing or decreasing prior quarter adjustment must be calculated using the FFP rate applicable in the quarter in which the expenditure was made.

INDIVIDUAL LINE INSTRUCTIONS:

Line 1. Total Costs Claimed (Eligible for FFP). All expenditures eligible for Federal funding.

Line 2. Fees and Costs Recovered in Excess of Fees. Income resulting from the operation of theprogram used to offset the cost of providing IV-D services. Include: (a) all mandatory or optional fees imposed by the State on recipients of child support enforcement services under the State's IV-D plan: (b) the cost to the State of mandatory fees where the State has opted to absorb these costs rather than charge these fees to the recipients: (c) amounts offset from collections or received directly from either the family or the non-custodial parent; and (d) fees for genetic testing collected in accordance with Section 454(6)(D) of the Social Security Act.

Line 3. Interest Earned and Other Program Income Received. Income to the State, including (a) any interest or investment income earned from child support collections, fees or other program-related amounts deposited in interest-bearing accounts or other investment-type activities; and (b) the amount of undistributable child support collections (as reported on the Quarterly Report of Collections) and any other income resulting from the operation of the program and not reported on line 2.

Line 4. Net Costs Claimed (Eligible for FFP). The net amount of expenditures (or estimated expenditures) that qualify for Federal funding, as reduced by the income reported on Lines 2 and 3. (Equal to: Line 1 minus the sum of Lines 2 and 3 or the sum of lines 5 through 10.)

Line 5. Approved ADP Operational Hardware Expenditures at the 90% FFP rate. Expenditures under the terms of an approved advance planning document (APD) for the acquisition of computer equipment used in the operation of an automated Child Support Enforcement System (CSES). (No amounts should be reported on this line for any quarter beginning on or after October 1, 1997.)

Line 6. Approved ADP Planning and Development Expenditures at the 90% FFP rate). Expenditures (or estimated expenditures) under the terms of an approved APD for the planning, development and implementation of an automated CSES under Section 455(a)(1)(B) of the Social Security Act. (No amounts should be reported on this line for any quarter beginning on or after October 1, 1997.)

Line 7. Other Approved ADP Expenditures at the 80% FFP rate. Expenditures (or estimated expenditures) under the terms of an approved APD for an automated CSES under Section ______of the Social Security Act.

Line 8. Other ADP Expenditures at the 66% FFP rate. Expenditures (or estimated expenditures) for the planning, development and implementation and operation of an automated CSES other than those amounts reported above.

Line 9. Laboratory Paternity Determination Expenditures at the 90% FFP rate. Expenditures (or estimated expenditures) for laboratory costs associated with the process of determining paternity, reduced by the fees included in line 2 collected for genetic testing. (The completion of this line is optional.) In accordance with Section 458(c) of the Social Security Act, if the State chooses to report these costs, this amount will be used to reduce the State's reported net expenditures prior to the calculation of the State's "cost effectiveness" ratios and the annual incentive payments.)

Line 10. All Other Administrative Expenditures at the 66% FFP rate. All remaining expenditures (or estimated expenditures) not reported above for the administration and operation of the Child Support Enforcement Program.

Line 11. Net Federal Share of Collections. The amount to be returned (or estimated to bereturned) to the Federal government as reimbursement of its share of past assistance payments. (From Form OCSE-34.)

Line 12. Fees for the Use of the Federal Parent Locator Service (FPLS). Fees charged to the State by the Federal government under Section 453(e)(2) of the Social Security Act as reimbursement of costs incurred through the State's use of the FPLS.

Line 13. Fees for the Use of the Child Support Enforcement Network. Fees charged to the State for the use of CSNET.

Line 14.Fees for Printing/Processing Pre-Offset Notices for the Federal Tax Refund Offset Program. Charges to the State for the printing and processing of OCSE issued pre-offset notices for the Federal tax refund offset program.

Line 15. Fees for Other Child Support Services.

Line 16. Net Federal Share of Expenditures. The net amount of Federal expenditures (or estimated Federal expenditures) being claimed by the State, as reduced by the Federal share of collections and fees reported above.

Line 17. State Share of Expenditures. The amount reported as "next quarter estimates" constitutes the State's portion of expenditures to be incurred for the operation and administration of the Child Support Enforcement Program during that quarter. By its inclusion on this report, the State is assuring that these funds are, or will be, available to meet the non-Federal share of expenditures as prescribed by law.

Signatures. This report must be signed and dated at the end of Part 1 by a single State official with the authority for supervising the financial administration of the child support enforcement program. Space is provided for the signature, title and agency name for the Director of the IV-D agency and an additional State official. Any individual(s) signing this report are certifying to the correctness and accuracy of the information here and on accompanying documents and that any amount shown as the State share of expenditures is or will be available to meet the non-Federal share of expenditures for the quarter indicated as prescribed by law.

Revisions. If, after this part of the report has been submitted, the State needs to change or correct the information reported, a revised report may be submitted at any time. This report should not be filed after the information included on a previously filed report for the same quarter has been utilized in the calculation of a quarterly grant award. In those instances, revisions to the estimates for the "next quarter" will be accepted only in extraordinary circumstances. Revisions to the expenditures or adjustments for the "current" or "prior" quarters should be reported, instead, as "prior quarter adjustments" on the report for the following quarter. Note: An exception to this requirement will be made where a delay in the reporting of a "prior quarter adjustment" will cause the claim to be filed beyond the two-year filing deadline under Section 1132 of the Social Security Act.)

Form ACF-396 referred to above is not included in this Internet version of AT-9714.

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