Audit Resolution Process for OCSE Audits

ACTION TRANSMITTAL

OCSE-AT-91-06

August 6, 1991

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

SUBJECT:Audit Resolution Process for OCSE Audits

CONTENT:In response to concerns raised by the Department of Health and Human Service (HHS) Council on Management Oversight for the Federal Manager's Financial Integrity Act, and the requirements of OMB Circular A-50, non-penalty recommendations contained in audit reports issued by the Office of Child Support Enforcement (OCSE) are being incorporated into the audit resolution process in an effort to monitor all audit follow up activities within the Administration for Children and Families. These non-penalty recommendations will address improving financial or program management in the Child Support Enforcement program, as well as financial disallowances or questioned costs.

The OCSE Regional Representative and the State must agree on resolution of non-penalty recommendations within six months from the date the recommendations are assigned to the Regional Representative for resolution. The Regional Representative will write the State regarding the non-penalty recommendations and request a response within 30 days of receipt of the assignment for resolution. The Regional Representative will review the State's response, including any material submitted, and issue a decision letter to the State. In the decision letter, the Regional Representative will confirm agreements made with the State on the scheduling of an action plan for implementing the decisions of the Regional Representative on the non-monetary recommendations, and establish reasonable deadlines for implementation.

When a disallowance is made, the decision letter will describe the basis for the disallowance and the State's appeal rights regarding the disallowed amount.

Recommendations contained in penalty notices issued by the Director, OCSE will not be monitored under this process. These penalty recommendationswill be monitored through the penalty corrective action plan which must be approved by the Director, OCSE. The Administration for Children and Families Regional Offices are responsible for ensuring that the approved penalty corrective action plan is being implemented. The OCSE Audit Division conducts follow-up reviews to determine whether the State has achieved substantial compliance with the recommendations in the penalty notice.

EFFECTIVE DATE:April 26, 1991

INQUIRIES:OCSE Regional Representatives

______________________________

Allie Page Matthews

Deputy Director

Office of Child Support Enforcement