Final Rule: Revocation of the Deadline for Submission of Claims for FFP

ACTION TRANSMITTAL

OCSE-AT-77-06

DATE: June 1, 1977

TO: State agencies administering child support enforcement plans under title IV-D of the Social Security Act and other interested individuals

SUBJECT: Revocation of the Deadline for Submission of Claims for Federal Financial Participation

ATTACHMENT: Amendment to 45 CFR Chapter III that revokes subsection (C) of section 304.25 .

REGULATION REFERENCE: 45 CFR 304.25

EFFECTIVE: August 1, 1975

INQUIRIES TO: OCSE Regional Representatives

Deputy Director

Office of Child Support Enforcement

CHAPTER III-OFFICE OF Child SUPPORT ENFORCEMENT (CHILD SUPPORT ENFORCEMENT PROGRAM).

DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE

PART 304-FEDERAL FINANCIAL PARTICIPATION

Deadline for Submission of Claims for Federal Financial Participation

AGENCY: Office of Child Support Enforcement (OCSE), HEW.

ACTION: Final regulation.

SUMMARY: The amendment revokes the requirement for the Child Support Enforcement Program that a State must submit all claims for Federal Financial Participation for a fiscal year by the due date of the expenditure report for the second quarter following the close of the fiscal year. The States have had difficulty in meeting this deadline for claims under this new program. The effect of this amendment is to permit States to submit claims for Federal funds at any time after the close of a fiscal year.

EFFECTIVE DATE: August 1, 1975.

FOR FURTHER INFORMATION CONTACT:

John M. Sacchetti, Area code 202 472-4510.

SUPPLEMENTAL INFORMATION: The Department has determined that this regulation should be revoked for the reasons set forth below:

1. Since the IV-D program is a new program, States have had some difficulty developing adequate fiscal reporting procedures that enable them to accumulate all IV-D program costs and submit these amounts as claims for Federal financial participation; within the time period required by this regulation. Revocation of this regulation will provide the States the time needed to develop and submit all allowable claims for costs incurred as part of the IV-D program.

2. The change in the Federal fiscal year which was made in calendar year 1976 caused confusion as to the precise meaning of this section. In some instances, January 30, 1977 was viewed to be the deadline: in others, April 30, 1977 was assumed to be the final date for submission of claims. Revocation of this regulation will eliminate this confusion.

3. Congress, in Pub. L. 94-88, specified a grant issuance process not included in the original legislation, which would take into consideration adjustments made to expenditures for any prior quarter without placing any time limit on the submission of these adjustments. This addition to the statute raises some questions concerning the legality of this regulation as currently in effect. Revocation of this regulation will eliminate any possible conflict with the statute.

In order to avoid any confusion concerning the impact of the revocation of this regulation, it is effective as of August 1,1975, the original effective date of the regulation.

The Department finds that there is good cause to dispense with proposed rulemaking because States will be unable to receive Federal financial participation in additional claims for costs incurred for fiscal year 1976 until such time as 45 CFR 304.25(c) is revoked. A substantial delay in processing these claims could impede State program operations and development in the effected States.

45 CFR 304.25(c) is revoked. Section 304.25 reads as follows:

§ 304.25 Treatment of expenditures; due date.

(a) Treatment of expenditures. Expenditures are considered to be made on the date on which the cash disbursements occur or the date to which allocated in accordance with Part 74 of this title. In the case of local administration, the date of disbursements by the local agency governs. In the case of purchase of services from another public agency the date of disbursements by such other public agency governs. Different rules may be applied with respect to a state, either generally or for particular classes of expenditures only upon justification by the State to the Office of Child Support Enforcement and approval by the Office. (b) Due date for expenditure statements. The due date for the submission of the quarterly statement of expenditures under § 301.15 of this chapter is 30 days after the end of the quarter.

(c) (Revoked)

(Sec. 1102, 49 Stat. 647 (42 U.S.C, 1302).)

(Catalog of Federal Domestic Assistance Program No. 13.679. Child Support Enforcement Program.)

Note-The Department has determined that this document does not require preparation of an Inflationary Impact Statement under Executive Order 11821 and OMB Circular A-107.

Dated: March 29, 1977

J.B. Cardwell,

Director, Office of Child Support Enforcement

Approved: May 11, 1977.

Joseph A. Califano, Jr.,

Secretary