Calculating the Cost-Effectiveness Ratio and Incentive Collection Base for Incentive Purposes

DCL-09-07

DATE: March 16, 2009

TO: ALL STATE IV-D DIRECTORS

RE: Revised Lines and Columns Used to Calculate the Cost-Effectiveness Ratio and Incentive Collection Base for Incentive Purposes

Dear Colleague:

OCSE AT-07-08 makes several changes to the OCSE-34A, Child Support Enforcement Program Collection Report, and the OCSE-396A, Child Support Enforcement Program Expenditure Report. These changes affect the lines and columns used in the calculation of the Cost-Effectiveness Ratio Incentive Measure and the Incentive Collection Base.

The revised formula for calculating a State's Cost-Effectiveness Ratio is:

[OCSE-34A, Line 4b + Line 4c + Line 8 + Line 11 of column G]
divided by
[OCSE-396A, Line 7 column (A) + (C) less Line 1c column (A) + (C)]

The revised formula for calculating a State's Incentive Collection Base is:

OCSE-34A: 2 times (Line 4b + Line 8 of columns A+B+C+D+E)
+ (Line 4b + Line 8 of column F)
+ (Line 4c + Line 11 of column G)

These changes became effective at the beginning of fiscal year 2008. If you have any questions regarding the calculations, please contact Xiandong Meng at (202) 401-5271, e-mail:xiandong.meng@acf.hhs.gov.

Sincerely,

Donna J. Bonar
Acting Commissioner
Office of Child Support Enforcement