Summary

Although states have spent more than $2 billion in federal funds since 1980 to develop automated systems to help collect child support payments from noncustodial parents, most states will miss the October 1997 deadline to have such systems up and running. GAO found that federal oversight of state efforts to develop collection systems has not been effective or timely. Although it is too early to judge the impact of fully developed automated systems on child support enforcement, these systems appear to have played a major role in locating more noncustodial parents and increasing collections. The increase in total dollars collected has been significant. States, however, have underestimated the magnitude, complexity, and costs of these projects. The federal Office of Child Support Enforcement's (OCSE) oversight of state child support systems has been narrowly focused and, as a result, not effective or timely in assessing the states' systems approaches and progress. As requirements of the newly enacted welfare reform legislation come into play, it will be increasingly important that child support enforcement systems work as envisioned and that OCSE monitor progress on a broader scale.

GAO noted that: (1) it is too early to judge the potential of fully developed automated systems, yet bringing the benefits of automation to bear on child support enforcement appears to have played a major role in locating more noncustodial parents and increasing collections; (2) according to HHS, in fiscal year (FY) 1995, almost $11 billion was collected, 80 percent higher than the amount collected in 1990; (3) while automated state child support systems are being developed, many may not be certified by the October 1, 1997, deadline; (4) furthermore, states have underestimated the magnitude, complexity, and costs of their systems projects; (5) systems development costs for FY 1995 alone were just under $600 million, and over $2.6 billion has been spent since 1980 for county and statewide systems development; (6) GAO's 1992 report discussed significant problems in federal oversight and monitoring of state activity, and made three recommendations; (7) however, only one has been completely implemented; (8) the Office of Child Support Enforcement (OCSE) now works with its audit division to identify and resolve systems problems; (9) GAO's recommendations to suspend federal funding when major problems exist and to require states to initiate corrective actions when problems are first identified were only partially addressed; (10) OCSE's oversight of state child support systems has been narrowly focused and, as a result, not effective or timely in assessing the states' systems approaches and progress; (11) OCSE believes it lacks the technical expertise and resources to be involved at critical points in the systems development process; (12) OCSE's role has been primarily limited to document review and after-the-fact certification when the states request an inspection of completed systems; (13) therefore, OCSE has allowed some funds to be spent without ensuring that states were progressing toward effective or efficient systems; (14) while OCSE has shared some lessons learned, its oversight has operated on a state-by-state basis; (15) lacking this nationwide perspective has hindered the agency's ability to provide proactive leadership to the states; (16) as added systems functional requirements of the newly enacted welfare reform legislation come into play, it will be increasingly important that child support enforcement systems work as envisioned and that OCSE monitor progress on a broader scale; and (17) many recipients may find that they no longer qualify for welfare benefits, with child support being their only remaining income.