< Back to Search

Change in Rates for Federal Financial Participation (FFP)

AT-86-09

Published: March 31, 1986
Information About:
State/Local Child Support Agencies
Topics:
Funding, Federal Financial Participation (FFP)
Types:
Policy, Action Transmittals (AT)

ACTION TRANSMITTAL

OCSE-AT-86-09

March 31, 1986

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

SUBJECT:Change in Rates for Federal Financial Participation (FFP)

BACKGROUND:As a result of the provisions of P.L. 99-177, the Balanced Budget and Emergency Deficit Control Act of 1985 (the Gramm-Rudman-Hollings Act), the Federal matching rates for the Child Support Enforcement program have been lowered for FY 1986. The "regular" rate applicable to most administrative costs has decreased from 70 percent to 66.65 percent; the "enhanced" rate applicable to ADP expenditures for which an advanced planning document has been submitted by the State and approved by OCSE has decreased from 90 percent to 85.69 percent.

The new rates are applicable to all expenditures incurred in FY 1986. Increasing and decreasing adjustments to expenditures incurred prior to FY 1986 will be funded at the rate in effect during the quarter in which the expenditure was initially incurred.

ACTION

REQUIRED:To accommodate the changes in the FFP rates, the following specific revisions are being made to the financial reporting forms. OCSE will not distribute new reporting forms incorporating these changes until the current supply has been depleted:

Form OCSE-41:

Lines 5 and 6 (front and back): Delete wording, "at the 90% FFP rate" and replace with "at the enhanced FFP rate"

Lines 7, 8 and 9 (front and back): Delete wording, "at the applicable FFP rate" and replacewith "at the regular FFP rate".

Line 10 (back only): The calculation of the total Federal share of expenditures should be changed to read: [(Enhanced FFP Rate) x (Lines 5 + 6)] + [(Regular FFP Rate) x (Lines 7 + 8 + 9)].

FFP chart (front): Change to read as follows:

For ExpendituresRegular Enhanced

Incurred: FFP Rate: FFP Rate

July 1, 1975 - Sept. 30, 1981 75.00 pct. NA

Oct. 1, 1981 - Sept. 30, 1982 75.00 pct. 90.00 pct.

Oct. 1, 1982 - Sept. 30, 1985 70.00 pct. 90.00 pct.

Oct. 1, 1985 - Sept. 30, 1986 66.65 pct.85.69 pct.

Form OCSE-41-SUP:

Both Columns D: Delete "90% FFP Rate", replace with "the Enhanced FFP Rate"

Both Columns E: Delete "70% FFP Rate", replace with "the Regular FFP Rate"

Both Columns F: Delete titles; these columns will no longer be used.

Form OCSE-65:

Line 1: Should read, "Administrative and Other Expenditures at the 66.65% Federal Funding Rate:"

Line 2: Should read, "Approved ADP Expenditures at the 85.69% Federal Funding Rate:"

Instructions: Replace all references to a "70%' or "75% funding rate with a "66.65% funding rate". Replace all references to a "90% rate" to an "85.69% rate". Adjust all references to Federal/State funding proportions accordingly.

Form OCSE-34:

No changes required.

EFFECTIVE

DATE: These revisions are effective immediately.

INQUIRIES TO: OCSE Regional Representatives

Director

Office of Child Support Enforcement

*See the OCSE Training Center for the Attachment