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Changes in Financial Reporting Requirements - Tax Equity and Fiscal Responsibility Act

AT-82-09

Published: September 9, 1982
Information About:
State/Local Child Support Agencies
Topics:
Federal Reporting, OCSE-34A Quarterly Report of Collections, Funding, Incentive
Types:
Policy, Action Transmittals (AT)

Changes in financial reporting requirements resulting from the enactment of Tax Equity and Fiscal Responsibility Act of 1982.

REPORTING REQUIREMENT

ACTION TRANSMITTAL

OCSE-AT-82-09

September 9, 1982

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

SUBJECT: Changes in financial reporting requirements resulting from the enactment of Tax Equity and Fiscal Responsibility Act of 1982.

ATTACHMENTS: Attached are facsimile copies of the OCSE financial reporting forms, OCSE-25, OCSE-65 and OCSE-41.

PURPOSE: Section 174 of the Tax Equity and Fiscal Responsibility Act of 1982 enacted September 3, 1982 includes provisions to reduce the rate of Federal financial participation in the IV-D program from 75 to 70 percent and the rate at which incentive payments are calculated from 15 to 12 percent.

This Action Transmittal contains the changes to the financial reporting forms that are required to accommodate these provisions for fiscal year 1983. Additional changes that will be required for fiscal year 1984 will be discussed in a future Action Transmittal.

SUPERSEDED MATERIAL: The following changes are to be made to the OCSE financial reporting forms:

1) Form OCSE-25, "Quarterly Budget Estimates"

Front: No changes required

Back (Instructions):

-Following instruction for Item 5 add, (At a 15% rate through September 30, 1983; 12% thereafter.)

-Instruction for Item 7, change "75% and 90 percent" to "70 and 90 percent"

2)Form OCSE-65, "Quarterly Application for Grant Award

-Item 1 change "75%" to "70%"

-Instruction for Item 1, on lines 2 and 7 change "75%" to "70%"

-Instruction for Item 1, on line 9 change "75%/25% proportion" to "70%/30% proportion".

3) Form OCSE-41, "Financial Status Report"

Front: Items 17 and 18, change "75%" to "70%*"

Back: Instructions for Items 17, 18 and 20, change all mention of "75%" to "70%*".

Include additional footnote to "Footnote" paragraph as follows: "*75% if expenditure incurred prior to October 1, 1982."

4) Form OCSE-34, "Quarterly Report of Collections"

No changes required.

EFFECTIVE DATE: Federal financial participation is changed to the 70 percent rate for eligible expenditures incurred on or after October 1, 1982.

Incentive payments are to be calculated at the 12 percent rate for all eligible collections made on or after October 1, 1983.

ACTION REQUIRED: Form OCSE-25: The Federal share of expenditures should be calculated at the 70 percent rate for all projections made for FY 1983 and beyond.

Incentive payments should be calculated at the 12 percent rate for all projections made for FY 1984 and beyond.

Form OCSE-65: The "State and Local Funds Available" should be certified by the State administrator for an amount equal to 30 percent of the total expenditures estimated in Item 1 for all quarters beginning on or after October 1, 1982.

Form OCSE-41: Current quarter expenditures reported in Items 17 or 18, column (a) should be calculated at the 70 percent rate beginning with the report submitted for the quarter ending December 31, 1982.

Increases or decreases in claims of prior quarter expenditures reported in Items 17 or 18, columns (b) or (c) should continue to be calculated at the 75 percent rate for the report submitted for the quarter ending December 31, 1982.

Beginning with the report submitted for the quarter ending March 31, 1983, increases or decreases in claims of prior quarter expenditures reported in Items 17 or 18, columns (b) or (c) should be calculated at the 75 percent rate for expenditures incurred prior to October 1, 1982 and at the 70 percent rate for expenditures incurred on or after October 1, 1982.

Expenditures are considered to be incurred on the date payment is made to the service provider by either the State or local IV-D agency or a public agency operating pursuant to a cooperative agreement with the State agency. (See 45 CFR 304.25(a)).

Under claiming time limits imposed by regulations at 45 CFR 95.7, States may continue to calculate adjustments in columns (b) or (c) at the 75 percent rate to increase or decrease claims of expenditures incurred prior to October 1, 1982 for a period of two years from the last day of the quarter in which the expenditure was incurred.

For example, increasing or decreasing adjustments for expenditures incurred during the quarter ending September 30, 1982 will continue to be calculated at the 75 percent rate and must be claimed by the State no later than September 30, 1984.

INQUIRIES TO: OCSE Regional Representatives

____________________________ Deputy Director

Office of Child Support Enforcement

Contact the National Training Center for the forms.