Implementation of Revised Financial Reporting Forms: Form OCSE-396A and Form OCSE-34A

ACTION TRANSMITTAL

AT-03-04

DATE: September 26, 2003

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

SUBJECT: Implementation of Revised Financial Reporting Forms: Form OCSE-396A and Form OCSE-34A.

BACKGROUND: OCSE requires each State to submit quarterly reports of expenditures, quarterly reports of collections and semiannual budget projections.

The information requirements for these documents change periodically as Federal statute and regulations are amended. In addition, the Office of Management and Budget (OMB) requires that these forms be reviewed at least once every three years to assure that the information being requested is in accordance with current requirements. As part of this review process, OCSE solicits and reviews comments, ideas and suggestions for improvements submitted by Federal and State IV-D staffs and from any other individuals or groups with an interest in this program.

The revised versions of these forms were developed through this process and, following its review, OMB has now approved these forms.

PURPOSE: With this Action Transmittal, OCSE will implement the revised versions (designated as the 10/1/03 versions) of the following financial reporting forms:

Form OCSE-396A: "Child Support Enforcement Program Financial Report"

Form OCSE-34A: "Child Support Enforcement Program Quarterly Report of Collections"

These forms replace the 10/1/99 versions of the same forms

REVISIONS: The following revisions are included in the 10/1/03 version of these forms:

Form OCSE-396A, Part 1.

1. Lines 2a and 2b, Col. C opened. These lines had previously been "shaded" and unavailable for data entry. These lines are now available for States to report prior quarter program income.
2. Line 6 deleted. Formerly, this line was designated for ADP costs eligible for FFP at the "enhanced" 80% rate. The statute authorizing enhanced FFP for ADP costs expired September 30, 2001 and the two-year period for submitting prior quarter claims for these costs expires September 30, 2003. Therefore, this line is no longer applicable and was eliminated.
3. Lines 4, 5 and 6 redefined. Lines 4, 5 and 6 remain the lines for reporting ADP costs. Formerly, Lines 4 and 5 were used, respectively, for reporting developmental ADP costs that required an approved Advanced Planning Document and for reporting operational ADP costs that did not require an Advanced Planning DocumentWith the continuation of the certification process for Statewide Child Support Enforcement systems, the division of cost in this manner was no longer necessary. Lines 4 and 5 are now, respectively, used for reporting developmental and operational ADP costs that require an approved Advanced Planning Document; Line 6 is now used for reporting all other ADP costs that do not require an Advanced Planning Document.
4. Instructions clarified The instructions were revised to accommodate the revisions described above and to expand and clarify definitions and individual line item instructions, where needed.

Form OCSE-396A, Part 2.

1. Funding category codes and line number references revised. The 3-letter funding category codes and accompanying line number references were revised for lines 4, 5 and 6 to accommodate the changes discussed above.

Form OCSE-396A, Part 3.

1. Line numbers revised. Lines are now consecutively numbered, 1 through 18, eliminating sub-categories, e.g., 1a, 1b, etc.
2. Data entries revised. The data entries were revised to reflect changing budget requirements and changes incorporated into Part 1 and into Form OCSE-34A:

Data entries eliminated (former line number):

• "Net Federal Share of Collections" (Line 8);
• Net Federal Share of Expenditures" (Line 9);
• "Current and Former Assistance Collections To Other States" (Line15);
• "Never Assistance Collections to Other States" (Line 16);
• "Net Federal Share of Collections" (Line 17).

Data entries added (new line number):

• "Federal Share of Expenditures Claimed" (Line 9);
• "Total Collections Distributed as Assistance Reimbursement" (Line 10);
• "Former IV-A Assistance Collections Distributed" (Line 13);
• "Former IV-E Assistance Collections Distributed" (Line 14);
• "Medicaid Never Assistance Collections Distributed" (Line 15);
• "Other Never Assistance Collections Distributed" (Line 16);
• "Federal Share of Collections" (Line 18).

3. Equivalent line references clarified and revised.

Form OCSE-34A.

1. Line 2e redefined. The title of Line 2e was revised to clarify that collections received through income withholding from both IV-D and Non-IV-D cases are to be included on this line.

2. Expanded column headings. Additional columns were added to permit more accurate reporting of collections based on case status.

• Former Column C, "Former Assistance," was divided into Columns C and D, "Former IV-A Assistance" and "Former IV-E Assistance," respectively. This will permit more accurate reporting of collections attributable to former IV-E cases and more accurate calculation of the Federal share of collections applicable to that program.
• Former Column D, "Never Assistance," was divided into Columns E and F, "Medicaid Never Assistance" and "Other Never Assistance," respectively. This will permit Medicaid only collections to be properly reported as Never Assistance cases.

3. Lines 9c and 9d added. These lines were added to allow each State to better define the nature of the undistributed collection balance reported on Line 9b.

4. Line 10 divided. Former Line 10, "Federal Share of Collections" was divided into Lines 10a and 10b, "Federal Share of IV-E Collections" and "Federal Share of IV-A Collections." respectively.

5. Lines 12a redefined. Former Line 12a, "Net Federal Share of IV-A Collections" has been retitled as "Quarterly Grant Adjustment" (new Line 12). This was done in recognition of the fact that funding for annual incentive payments is no longer dependent on the amount of the Federal Share of IV-A Collections.

6. Line 12b eliminated. The information formerly reported on this line is no longer required.

7. Instructions clarified. The instructions were revised to accommodate the revisions described above and to expand and clarify definitions and individual line item instructions, where needed.

SUBMITTAL SCHEDULE:

Form OCSE-34A, Form OCSE-396A, Part 1: Due: Quarterly, within 30 days of the end of each quarter.

Form OCSE-396A, Part 2: Due: Quarterly, within 30 days of the end of each quarter (submit as needed in support of "prior quarter" entries on Part 1.)

Form OCSE-396A, Part 3: Due: Semiannually, within 30 days of the end of quarters 2 and 4.

EFFECTIVE DATE: The use of the revised versions of Forms OCSE-34A and OCSE-396A is required beginning with fiscal year 2004, i.e., for all collections received and expenditures made on or after October 1, 2003.

The first submission of the revised versions of Forms OCSE-34A and OCSE-396A (Part 1 or 2), to report collections and expenditures for the first quarter of fiscal year 2004, is due by January 30, 2004.

The first submission of revised version of Form OCSE-396A (Part 3), to provide budget information for fiscal years 2004, 2005 and 2006, is due by April 30, 2004.

SUPERSEDED MATERIAL: With the implementation of the versions of these forms, States should not use the previous, 10/1/99 versions of these forms to report data for FY 2004 and thereafter. Accordingly, Action Transmittal OCSE-AT-00-02, dated January 12, 2000, which implemented the earlier versions, is superseded by this Action Transmittal.

States should continue to use the earlier, 10/01/99, versions of these forms to report data for the 4^th quarter, FY 2003 (due no later than 10/30/03), or for any revised FY 2003 reports (due no later than 12/30/03).

RELATED MATERIAL: Action Transmittal OCSE-AT-01-09, dated June 22, 2001, pertains to reporting on Form OCSE-157, the "Child Support Enforcement Annual Data Report," which is used in conjunction with the financial reporting forms:

ATTACHMENTS: Form OCSE-396A, Parts 1, 2 and 3 with accompanying instructions. Form OCSE-34A with accompanying instructions

INQUIRIES:Inquiries should be made to the appropriate ACF Regional Administrator.

Sherri Z. Heller, Ed,d
Commissioner
Office of Child Support Enforcement