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New Financial Requirements Imposed by Public Laws 96-265 and 96-272


Published: December 15, 1980

New Financial Requirements Imposed by P.L. 96-265 and 96-272



December 15, 1980



DISCUSSION:Regulations incorporating the provisions of Public Laws 96-265 and 96-272 are currently being written. Since the writing and formal issuance of regulations can be a lengthy process, the following guidelines are to be used, as appropriate, when submitting claims for Federal Financial Participation.

Section 407(b) of P.L. 96-265 prohibits the issuance of any OCSE grant award which provides an advance of funds (based on a State's estimate contained in Form SRS-OFM-65) to any State that has not submitted full and complete reports of child support collected and distributed and expenditures for each quarter other than the last two quarters. The provisions of Section 407 are effective with respect to grant awards issued for the quarter beginning January 1, 1981. Thus, no advance funding will be provided for the quarter beginning January 1, 1981 unless the State has submitted a Form SRS-OA-41 (including the OCSE-OA-41.17) and OCSE-4134 for the quarter ended June 30, 1980 and all prior quarters. The regulations implementing this provision are under development. The regulations will include a standard to be used in determining if the reports submitted by the States are full and complete. Until these regulations are published in final form, determinations of whether a State will receive advance funding will be based on whether the forms noted above have been submitted. The extent to which these forms contain full and complete information will not be considered.

Section 407(c) of P.L. 96-265 also requires title IV-A grant awards to be reduced by the Federal share of collections which have been received by the State and have not yet been distributed by the State. The regulation for this provision will be written and disseminated by the Office of FamilyAssistance (OFA). It is not yet clear how the regulations will implement this provision. It is not intended, however, to penalize any State which reports collections in accordance with the normal distribution procedures contained at 45 CFR 302.32 and 302.51. This provision is effective as of January 1, 1981. Section 306 of P.L. 96-272 established time limitations for claiming reimbursements as set forth below. Claims submitted in accordance with these deadlines will be eligible for Federal reimbursement subject to the availability of funds to meet these expenditures. For example, funds currently available to pay Child Support Enforcement Grants to States under the Continuing Resolution for FY 1981, P.L. 96-369, can only be used to pay for expenditures incurred by the State prior to October 1, 1978 if claims for these expenditures were submitted within two years after the fiscal year in which the expenditure occurred. Time limits established by P.L. 96-272 are as follows:

1.Expenditures incurred prior to October 1,1979 must be claimed prior to January 1, 1981.

2.Expenditures incurred on or after October 1, 1979 must be claimed within two years of the first day of the quarter immediately following the quarter in which the expenditure was incurred.

Under certain circumstances, an extension of the time limitations noted above may be granted. However, until the final regulations are published by the Department of Health and Human Services, and the circumstances under which exceptions may be granted are clearly defined, States should assure that all expenditures are claimed within the time frames stated above in order to have them considered for reimbursement. This provision became effective upon enactment (June 17, 1980).

ACTION: States should:

a.insure that full and complete financial reports (Forms SRS-OA-41, OCSE-OA-41.17 and OCSE-4134) are submitted in a timely fashion.

b.Review collection and distribution procedures to insure that they comply with 45 CFR 302.51.

c.Insure that claims are submitted within two years of the first day of the calendar quarter after the date expenditures are incurred except for those incurred before October 1,1979 which must be claimed by January 1, 1981.

EFFECTIVE 1. The foregoing provisions of P.L. 96-265 are DATE: effective with respect to grant awards issued for the quarter beginning January 1, 1981.

2.The foregoing provisions of P.L. 96-272 were effective upon enactment (June 17, 1980).

INQUIRIES TO: OCSE Regional Representatives

Deputy Director

Office of Child Support Enforcement

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