DCL-00-34, Data Reliability Audit Requirements

DCL-00-34 MAR 10, 2000

TO: ALL IV-D DIRECTORS

RE: Data Reliability Audit Requirements

Dear Colleague:

I want to alert you to an issue of significant importance that warrants your immediate attention--the effective date of the new incentives formula established by the Child Support Performance and Incentives Act of 1998.

Beginning with FY 2000, one-third of your State's incentives payments will be based on your performance with respect to the five performance indicators specified in section 458A of the Social Security Act (Act). States will receive incentives based on the results of their performance measured against statutorily established standards for each of the following performance indicators: (1) Paternity Establishment; (2) Cases with Support Orders; (3) Collections on Current Support; (4) Cases Paying on Arrearages; and (5) Cost Effectiveness. State performance is computed using data reported by your State.

Under section 458A of the Act, States will only receive incentives based on performance if their data are determined to be complete and reliable. The Division of Audit is required to conduct audits to evaluate the completeness, reliability and accuracy of the performance indicator data reported by the States. Beginning October 1, 1999, Federal auditors began performing Data Reliability Audits (DRA). However, to date, several States have not submitted the OCSE-157 report or have submitted an incomplete or estimated report. These data are critical to begin such an audit. If these states do not provide the necessary data or if the data provided are incomplete or consist of estimates, a determination will be made that a State's data are incomplete and/or unreliable.

To fully assess the reliability of the data, OCSE auditors test data that will be used to compute the performance indicators and determine whether these data reconcile to documented information in the State’s system. Testing includes analyzing the audit trail for each performance indicator line item to determine whether these data correspond to events that actually occurred. Consequently, the audit trail for each element used to compute the performance indicators is essential. Data for the Federal Fiscal Year ending September 30, 1999, are the first set of data critical to determining data completeness, reliability and accuracy. (See DCL-99-108.)

OCSE and Federal auditors have been in contact with States several times over the past year, but to date we do not have the data necessary to begin the DRA from several States. Should we not be able to determine the completeness, reliability, and accuracy of necessary data from your State to set FY 2000 incentives, you risk the loss of one-third of your State's incentives for FY 2000. In order to allow time to complete the data reliability audit, necessary information must be available before May 15, 2000, or we cannot guarantee a determination of data reliability with respect to your State.

Again, submittal of critical base line data on the form OCSE-157 for FY 1999, along with the audit trail that supports the performance indicator lines on the OCSE-157, is an essential first step to ensuring receipt of one-third of your State’s FY 2000 incentives. Please contact your local Regional Office or the Division of Policy and Planning for assistance with definitional or policy issues. Direct any question regarding the audit "specifications" or the audit trail to the local Area Audit Office. Any of these offices are ready to provide information and assistance.

Sincerely,

/s/

David Gray Ross
Commissioner
Office of Child Support Enforcement

cc: Umbrella Agency Heads:
State Human Resources Directors
State Attorney Generals
State Revenue Commissioners