DCL-03-35, Fiscal Year 2004 Fees for the Federal Offset Program

DEAR COLLEAGUE LETTER

DCL-03-35

DATE: October 1, 2003

TO: ALL STATE IV-D DIRECTORS

RE: Fiscal Year 2004 Fees for the Federal Offset Program

Dear Colleague:

The Federal Office of Child Support Enforcement (OCSE) is pleased to report the following fee-related information for the Federal Offset Program. Through our partnership with the Department of Treasury’s Financial Management Service (FMS), it has been determined that the current Tax Offset fee of $11.65 per offset will remain the same for the upcoming fiscal year. In addition, the Administrative Offset fee will be reduced from $13.20 per offset to $12.20 per offset. FMS has been able to improve operational efficiency, and is passing their savings on in the form of static or decreasing fees. These Federal Offset fees will take effect the first day of Federal Fiscal Year 2004 (FY2004), the period covering October 1, 2003, to September 30, 2004.

For those states that select OCSE to issue their Pre-Offset Notices (PON), the fee for this service will also remain the same at $ 0.50 per notice for FY2004. This fee covers the cost of the envelopes as well as the printing, stuffing, and mailing of the notices. There is, however, one stipulation. If certain proposed legislative initiatives currently being considered by Congress are approved, language will most likely need to be added to the PON to allow for due process. This may result in the current single-page notice becoming two pages in length, and will probably increase the fee to $ 0.51 per notice. We will keep you informed regarding progress on the proposed legislation, and any required changes to the PON.

If you have any questions regarding Federal Offset fees, please contact Roy Nix at 202-401-5685 or rnix@acf.hhs.gov.

Thank you for your continued efforts on behalf of our nation’s children.

Sincerely,

Sherri Z. Heller, Ed.D.

Commissioner

Office of Child Support Enforcement

cc: Regional Program Managers

ACF Regional Administrators