DCL-05-07, 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.

If you have any questions regarding the calculation, please contact Kenneth Dittmar on 202-401-5099, e-mail: kdittmar@acf.hhs.gov.

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

RELATED MATERIAL: Action Transmittal OCSE-AT-03-04, dated September 26, 2003, Implementation of Revised Financial Reporting Forms: Form OCSE-396A and Form OCSE-34A.

Action Transmittal OCSE-AT-01-01, dated January 3, 2001, “Final Rule on Incentives, Penalties and Audit”.

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