Specific Lines and Columns Used to Calculate the Incentive Collection Base

DEAR COLLEAGUE LETTER

DCL-05-07

DATE: January 25, 2005

TO: ALL STATE IV-D DIRECTORS

RE: Specific Lines and Columns Used to Calculate the Incentive Collection Base

Dear Colleague:

Due to the implementation of the revised version of form OCSE-34A, quarterly reporting of collections, the columns used in the calculation of the incentive collection base have changed.

The revised formula for calculating a state incentive collection base is as follows:

2 times ((line 5, columns A+B+C+D+E) + (line 8, columns A+B+C+D+E)) + line 5, column F + line 8, column F + line 13, column G.

Columns A and B are for current assistance, columns C and D are for former assistance, column E is for Medicaid never assistance, column F is for other never assistance, and column G is for the row total. Lines 5 (collections forwarded to other states), 8 (total collections distributed), and 13 (fees retained by other states) have not changed with the issuance of the new OCSE-34A form.

EFFECTIVE DATE: The use of the revised incentive collection base formula begins with fiscal year 2004.

Section 305.31 (f) in Title 45 of the Code of Federal Regulation details the previous formula to calculate a state’s collection base.

Sincerely,

David H. Siegel
Acting Commissioner
Office of Child Support Enforcement