(A) The child support enforcement agency (CSEA) is responsible for providing the nonfederal share of allowable administrative expenditures incurred in the administration of the Title IV-D program. This rule describes the distribution and allowable use of CSEA performance incentives received by a CSEA, including the timeframes and process by which a CSEA may use those incentives as the nonfederal share. Other funds that may be used as the nonfederal share include public funds, other than those derived from private sources, incentives earned on medical support payments, and funds from additional sources described in rule 5101:12-1-50 of the Administrative Code.
(B) Federal child support incentive distribution.
(1) The initial amount of federal incentives the United States department of health and human services (HHS) distributes to the state is an estimated amount. The actual amount earned by the state is unknown until the end of the federal fiscal year (FFY) and completion of calculations for the state reliability audit. The final reconciled amount includes necessary adjustments resulting from previous incentive overpayments or underpayments to the Ohio department of job and family services (ODJFS) from the federal government pursuant to the processes described at 45 C.F.R. part 305.
(2) Incentive payments distributed by ODJFS to the CSEA are based on estimates of the amount of incentives Ohio will receive from HHS during the FFY .
(a) ODJFS will retain funds from the federal incentives in accordance with rule 5101:12-1-54 of the Administrative Code.
(b) Incentive payments are distributed to the CSEA in accordance with rule 5101:12-1-54.1 of the Administrative Code.
(3) The exact amount of incentives is determined during an annual incentive reconciliation at the end of the FFY and ODJFS makes necessary adjustments to the incentive allocation.
(4) At the close of the FFY, a comparison is made between the estimated federal incentives and the actual federal incentives earned by the state.
(a) If the estimated amount exceeds the actual amount earned by the state and a deficiency exists, ODJFS will adjust the CSEA allocation in the succeeding months.
(b) If the actual amount earned exceeds the estimated amount and a surplus exists, ODJFS will make a one-time payment to the CSEA through the administrative advance process.
(C) Federal child support incentive use.
(1) In accordance with section 5101.23 of the Revised Code and 45 C.F.R. 305.35, the CSEA shall spend funds only for allowable Title IV-D expenditures. A request to spend incentives on activities not eligible for funding under the Title IV-D program may be submitted to ODJFS. ODJFS will review the request and may submit the proposal, as appropriate, to HHS for approval.
(2) The American Recovery and Reinvestment Act of 2009 (ARRA) temporarily reversed a provision in the Deficit Reduction Act of 2005 (DRA) that ended the practice of providing federal matching funds for the state expenditure of child support incentive payments. Incentives used for Title IV-D expenditures from October 1, 2008, through September 30, 2010, were eligible for use as the nonfederal share.
(3) Effective in FFY 2011, federal child support incentives cannot be used to earn additional federal funds and cannot be used as the nonfederal share.
(4) Title IV-D expenditures paid with incentives are reported on the JFS 02750 "Child Support Administrative Fund Monthly Financial Statement" pursuant to rule 5101:9-7-29 of the Administrative Code using coding established by ODJFS for that purpose.
R.C. 119.032 review dates: 10/01/2014
Promulgated Under: 119.03
Statutory Authority: 3125.25
Rule Amplifies: 3125.03, 3125.11, 3125.191, 3125.21, 3125.25
Prior Effective Dates: 3/19/07, 3/1/08, 10/26/09, 3/28/10