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45 C.F.R. §§ 305.60–305.66

7 sections in range

§305.60. Types and scope of Federal audits.

45 C.F.R. § 305.60

(a)
OCSE will conduct audits, at least once every three years (or more frequently if the State fails to meet performance standards and reliability of data requirements) to assess the completeness, authenticity, reliability, accuracy and security of data and the systems used to process the data in calculating performance indicators under this part;
(b)
Also, OCSE will conduct audits to determine the adequacy of financial management of the State IV-D program, including assessments of:
(1)
Whether funds to carry out the State program are being appropriately expended, and are properly and fully accounted for; and
(2)
Whether collections and disbursements of support payments are carried out correctly and are fully accounted for; and
(c)
OCSE will conduct audits for such other purposes as the Secretary may find necessary.
(1)
These audits include audits to determine if the State is substantially complying with one or more of the requirements of the IV-D program (with the exception of the requirements of section 454(24) of the Act relating to statewide-automated systems and section 454(27)(A) and (B)(i) relating to the State Disbursement Unit) as defined in § 305.63 of this part. Other audits will be conducted at the discretion of OCSE.
(2)
Audits to determine substantial compliance will be initiated based on substantiated evidence of a failure by the State to meet IV-D program requirements. Evidence, which could warrant an audit to determine substantial compliance, includes:
(i)
The results of two or more State self-reviews conducted under section 454(15)(A) of the Act which— Show evidence of sustained poor performance; or indicate that the State has not corrected deficiencies identified in previous self-assessments, or that those deficiencies are determined to seriously impact the performance of the State's program; or
(ii)
Evidence of a State program's systemic failure to provide adequate services under the program through a pattern of non-compliance over time.
(d)
OCSE will conduct audits of the State's IV-D program through inspection, inquiries, observation, and confirmation and in accordance with standards promulgated by the Comptroller General of the United States in “Government Auditing Standards.”
Notes, amendments, and revision history

Authority

Authority: 42 U.S.C. 609(a)(8), 652(a)(4) and (g), 658a, and 1302.

Source

Source: 65 FR 82208, Dec. 27, 2000, unless otherwise noted.

§305.61. Penalty for failure to meet IV-D requirements.

45 C.F.R. § 305.61

(a)
A State will be subject to a financial penalty and the amounts otherwise payable to the State under title IV-A of the Act will be reduced in accordance with § 305.66:
(1)
If on the basis of:
(i)
Data submitted by the State or the results of an audit conducted under § 305.60 of this part, the State's program failed to achieve the paternity establishment percentages, as defined in section 452(g)(2) of the Act and § 305.40 of this part, or to meet the support order establishment and current collections performance measures as set forth in § 305.40 of this part; or
(ii)
The results of an audit under § 305.60 of this part, the State did not submit complete and reliable data, as defined in § 305.1 of the part; or
(iii)
The results of an audit under § 305.60 of this part, the State failed to substantially comply with one or more of the requirements of the IV-D program, as defined in § 305.63; and
(2)
With respect to the immediately succeeding fiscal year, the State failed to take sufficient corrective action to achieve the appropriate performance levels or compliance or the data submitted by the State are still incomplete and unreliable.
(b)
The reductions under paragraph (c) of this section will be made for quarters following the end of the corrective action year and will continue until the end of the first quarter throughout which the State, as appropriate:
(1)
Has achieved the paternity establishment percentages, the order establishment or the current collections performance measures set forth in § 305.40 of this part;
(2)
Is in substantial compliance with IV-D requirements as defined in § 305.63 of this part; or
(3)
Has submitted data that are determined to be complete and reliable.
(c)
The payments for a fiscal year under title IV-A of the Act will be reduced by the following percentages:
(1)
One to two percent for the first finding under paragraph (a) of this section;
(2)
Two to three percent for the second consecutive finding; and
(3)
Not less than three percent and not more than 5 percent for the third or a subsequent consecutive finding.
(d)
The reduction will be made in accordance with the provisions of 45 CFR 262.1(b)-(e) and 262.7.
(e)
COVID-19 paternity establishment percentage penalty relief. Due to the adverse impact of the COVID-19 pandemic on State IV-D operations, the criteria by which States are subject to financial penalties for the paternity establishment percentage under paragraph (a) of this section are modified for fiscal years 2020, 2021, and 2022, in accordance with section 452(g)(A) of the Act, as follows:
(1)
The acceptable level of paternity establishment percentage performance under § 305.40(a)(1) is modified for fiscal years 2020, 2021, and 2022 from 90 percent to 50 percent, and
(2)
The adverse findings of data reliability audits of a State's paternity establishment data under § 305.60 will not result in a financial penalty for fiscal years 2020, 2021, and 2022.
(f)
During, and subsequent to, natural disasters and other calamities (e.g., state chief executive officer-declared states of emergency, pandemics, events designated by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170), and declared public health emergencies under section 319 of the Public Health Service Act, 42 U.S.C. 247d), the Secretary may temporarily modify the performance measure requirements for a state to meet the paternity establishment percentage standard of 90 percent under section 452(g) of the Act (42 U.S.C. 652(g)) and 45 CFR 305.40(a)(1), the support order establishment standard of 40 percent under 45 CFR 305.40(a)(2), and the current collections standard of 35 percent under 45 CFR 305.40(a)(3), to lower levels to avoid imposing financial performance penalties on states, and may set aside adverse data reliability audit findings under section 452(g) of the Act (42 U.S.C. 652(g)) and 45 CFR 305.61(a)(1)(ii) during the same time period. For Federal fiscal years subsequent to September 30, 2022, the performance requirements for paternity establishment under section 452(g) of the Act (42 U.S.C. 652(g)) and 45 CFR 305.40(a)(1), for support order establishment under 45 CFR 305.40(a)(2), and for current collections under 45 CFR 305.40(a)(3)—may be modified by the Secretary to a lower level under the conditions described in this section.
(1)
If a state experiences a natural disaster or other calamity (e.g., state chief Executive officer-declared states of emergency, pandemics, events designated by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170), and declared public health emergencies under section 319 of the Public Health Service Act, 42 U.S.C. 247d), the state's chief executive officer (or his or her designee) may submit to the Secretary a request to modify one or more of the performance requirements specified under section 452(g) of the Act (42 U.S.C. 652(g)) and 45 CFR 305.40(a)(1), under 45 CFR 305.40(a)(2), or under 45 CFR 305.40(a)(3).
(2)
The state may also ask the Secretary to set aside adverse data reliability audit findings under section 452(g) of the Act (42 U.S.C. 652(g)) and 45 CFR 305.61(a)(1)(ii) for the same time period as the time period for which a modification of performance requirements is sought.
(3)
The request for a modification to the performance requirements must be submitted in accordance with the procedures specified in paragraphs (f)(4), (5) and (6) of this section. Any request other than one submitted with the initial application must be submitted as soon as the adverse effect of the natural disaster or other calamity giving rise to the request is known to the state.
(4)
A request for a modification of one or more of the performance requirements must include the following:
(i)
A narrative statement describing the circumstances and justification for the request to modify the state's performance requirement;
(ii)
Information substantiating the impact of the natural disaster or other calamity on the state's ability to comply with the standards, including a description of the specific conditions caused by the natural disaster or other calamity that have, or may have, a significant impact on the state's ability to comply, and preliminary data provided by the state, as required under 45 CFR 305.32(f), showing reduced performance;
(iii)
Information on the expected duration of the conditions that make compliance impracticable; and
(iv)
Any other documentation or other information that the Secretary may require to make this determination.
(5)
The state must demonstrate to the satisfaction of the Secretary that the natural disaster or other calamity has directly resulted in a reduction in performance or is expected to result in a reduction in performance, based on data provided by the state. In its request for a temporary modification to one or more performance requirements, the state must be able to demonstrate that it:
(i)
Has not, or may not meet one or more existing performance requirements, such that a performance penalty would apply;
(ii)
Has submitted preliminary data supporting this statement; and
(iii)
Has provided all required information requested by the Secretary.
(6)
The Secretary shall provide written communication of the decision to modify or decline to modify the performance standards, and the period for which any modified standards shall apply, within 30-calendar days after receipt of appropriate written communication from the chief executive officer.
(i)
If approved, a temporary modification in a performance requirement will expire on the last day of the Federal fiscal year for which it was approved.
(ii)
Adverse findings of data reliability audits of the state's performance data under 45 CFR 305.60 as reported during the period in which the performance requirement modification is approved will not result in a financial penalty pursuant to the state's request as specified in paragraph (f)(2) of this section.
(iii)
Unless the state receives a written approval of its performance requirement modification request, the performance requirements under section 452(g) of the Act (42 U.S.C. 652(g)) and 45 CFR 305.40(a)(1), under 45 CFR 305.40(a)(2), and under 45 CFR 305.40(a)(3) remain in effect.
(iv)
If the request for a performance requirement modification is denied, the denial is not subject to administrative appeal.
Notes, amendments, and revision history

Amendments

[65 FR 82208, Dec. 27, 2000, as amended at 87 FR 32094, May 27, 2022; 89 FR 15479, Mar. 4, 2024]

Authority

Authority: 42 U.S.C. 609(a)(8), 652(a)(4) and (g), 658a, and 1302.

Source

Source: 65 FR 82208, Dec. 27, 2000, unless otherwise noted.

Amendments

[65 FR 82208, Dec. 27, 2000, as amended at 87 FR 32094, May 27, 2022; 89 FR 15479, Mar. 4, 2024]

§305.62. Disregard of a failure which is of a technical nature.

45 C.F.R. § 305.62

A State subject to a penalty under § 305.61(a)(1)(ii) or (iii) of this part may be determined, as appropriate, to have submitted adequate data or to have achieved substantial compliance with one or more IV-D requirements, as defined in § 305.63 of this part, if the Secretary determines that the incompleteness or unreliability of the data, or the noncompliance with one or more of the IV-D requirements, is of a technical nature which does not adversely affect the performance of the State's IV-D program or does not adversely affect the determination of the level of the State's paternity establishment or other performance measures percentages.
Notes, amendments, and revision history

Authority

Authority: 42 U.S.C. 609(a)(8), 652(a)(4) and (g), 658a, and 1302.

Source

Source: 65 FR 82208, Dec. 27, 2000, unless otherwise noted.

§305.63. Standards for determining substantial compliance with IV-D requirements.

45 C.F.R. § 305.63

For the purposes of a determination under § 305.61(a)(1)(iii) of this part, in order to be found to be in substantial compliance with one or more of the IV-D requirements as a result of an audit conducted under § 305.60 of this part, a State must meet the standards set forth below for each specific IV-D State plan requirement or requirements being audited and contained in parts 302 and 303 of this chapter, measured as follows:
(a)
The State must meet the requirements under the following areas:
(1)
Statewide operations, § 302.10 of this chapter;
(2)
Reports and maintenance of records, § 302.15(a) of this chapter;
(3)
Separation of cash handling and accounting functions, § 302.20 of this chapter; and
(4)
Notice of collection of assigned support, § 302.54 of this chapter.
(b)
The State must provide services required under the following areas in at least 90 percent of the cases reviewed:
(1)
Establishment of cases, § 303.2(a) of this chapter; and
(2)
Case closure criteria, § 303.11 of this chapter.
(c)
The State must provide services required under the following areas in at least 75 percent of the cases reviewed:
(1)
Collection and distribution of support payments, including— collection and distribution of support payments by the IV-D agency under § 302.32(b) of this chapter; distribution of support collections under § 302.51 of this chapter; and distribution of support collected in title IV-E foster care maintenance cases under § 302.52 of this chapter;
(2)
Establishment of paternity and support orders, including— Establishment of a case under § 303.2(b) of this chapter; services to individuals not receiving TANF or title IV-E foster care assistance, under § 302.33(a)(1) through (4) of this chapter; provision of services in intergovernmental IV-D cases under § 303.7(a), (b), (c), (d)(1) through (5) and (7) through (10), and (e) of this chapter; location of non-custodial parents under § 303.3 of this chapter; establishment of paternity under § 303.5(a) and (f) of this chapter; guidelines for setting child support awards under § 302.56 of this chapter; and establishment of support obligations under § 303.4(d), (e) and (f) of this chapter;
(3)
Enforcement of support obligations, including, in all appropriate cases— establishment of a case under § 303.2(b) of this chapter; services to individuals not receiving TANF or title IV-E foster care assistance, under § 302.33(a)(1) through (4) of this chapter; provision of services in intergovernmental IV-D cases under § 303.7(a), (b), (c), (d)(1) through (5) and (7) through (10), and (e) of this chapter; location of non-custodial parents under § 303.3 of this chapter; enforcement of support obligations under § 303.6 of this chapter and State laws enacted under section 466 of the Act, including submitting once a year all appropriate cases in accordance with § 303.6(c)(3) of this chapter to State and Federal income tax refund offset; and wage withholding under § 303.100 of this chapter. In cases in which wage withholding cannot be implemented or is not available and the non-custodial parent has been located, States must use or attempt to use at least one enforcement technique available under State law in addition to Federal and State tax refund offset, in accordance with State laws and procedures and applicable State guidelines developed under § 302.70(b) of this chapter;
(4)
Review and adjustment of child support orders, including— Establishment of a case under § 303.2(b) of this chapter; services to individuals not receiving TANF or title IV-E foster care assistance, under § 302.33(a)(1) through (4) of this chapter; provision of services in intergovernmental IV-D cases under § 303.7(a), (b), (c), (d)(1) through (5) and (7) through (10), and (e) of this chapter; location of non-custodial parents under § 303.3 of this chapter; guidelines for setting child support awards under § 302.56 of this chapter; and review and adjustment of support obligations under § 303.8 of this chapter; and
(5)
Medical support, including— establishment of a case under § 303.2(b) of this chapter; services to individuals not receiving TANF or title IV-E foster care assistance, under § 302.33(a)(1) through (4) of this chapter; provision of services in intergovernmental IV-D cases under § 303.7(a), (b), (c), (d)(1) through (5) and (7) through (10), and (e) of this chapter; location of non-custodial parents under § 303.3 of this chapter; securing medical support information under § 303.30 of this chapter; and securing and enforcing medical support obligations under §§ 303.31 and 302.32 of this chapter; and
(6)
Disbursement of support payments in accordance with the timeframes in section 454B of the Act and § 302.32 of this chapter.
(d)
With respect to the 75 percent standard in paragraph (c) of this section—
(1)
Notwithstanding timeframes for establishment of cases in § 303.2(b) of this chapter; provision of services in interstate IV-D cases under § 303.7(a)(4) through (8), (b), (c), (d)(2) through (5) and (7) and (10) of this chapter; location and support order establishment under § 303.3(b)(3) and (5), and § 303.4(d) of this chapter, if a support order needs to be established in a case and an order is established during the audit period in accordance with the State's guidelines for setting child support awards, the State will be considered to have taken appropriate action in that case for audit purposes.
(2)
Notwithstanding timeframes for establishment of cases in § 303.2(b) of this chapter; provision of services in interstate IV-D cases under § 303.7(a)(4) through (8), (b), (c), (d)(2) through (5) and (7) and (10) of this chapter; and location and review and adjustment of support orders contained in § 303.3(b)(3) and (5), and § 303.8 of this chapter, if a particular case has been reviewed and meets the conditions for adjustment under State laws and procedures and § 303.8 of this chapter, and the order is adjusted, or a determination is made, as a result of a review, during the audit period, that an adjustment is not needed, in accordance with the State's guidelines for setting child support awards, the State will be considered to have taken appropriate action in that case for audit purposes.
(3)
Notwithstanding timeframes for establishment of cases in § 303.2(b) of this chapter; provision of services in interstate IV-D cases under § 303.7(a)(4) through (8), (b), (c), (d)(2) through (5) and (7) and (10) of this chapter; and location and wage withholding in § 303.3(b) (3) and (5), and § 303.100 of this chapter, if wage withholding is appropriate in a particular case and wage withholding is implemented and wages are withheld during the audit period, the State will be considered to have taken appropriate action in that case for audit purposes.
(4)
Notwithstanding timeframes for establishment of cases in § 303.2(b) of this chapter; provision of services in interstate IV-D cases under § 303.7(a)(4) through (8), (b), (c), (d)(2) through (5) and (7) and (10) of this chapter; and location and enforcement of support obligations in § 303.3(b) (3) and (5), and § 303.6 of this chapter, if wage withholding is not appropriate in a particular case, and the State uses at least one enforcement technique available under State law, in addition to Federal and State income tax refund offset, which results in a collection received during the audit period, the State will be considered to have taken appropriate action in the case for audit purposes.
(e)
The State must meet the requirements for expedited processes under § 303.101(b)(2)(i) and (iii), and (e) of this chapter.
Notes, amendments, and revision history

Amendments

[65 FR 82208, Dec. 27, 2000, as amended at 73 FR 42442, July 21, 2008; 75 FR 38644, July 2, 2010; 81 FR 93568, Dec. 20, 2016]

Authority

Authority: 42 U.S.C. 609(a)(8), 652(a)(4) and (g), 658a, and 1302.

Source

Source: 65 FR 82208, Dec. 27, 2000, unless otherwise noted.

Amendments

[65 FR 82208, Dec. 27, 2000, as amended at 73 FR 42442, July 21, 2008; 75 FR 38644, July 2, 2010; 81 FR 93568, Dec. 20, 2016]

§305.64. Audit procedures and State comments.

45 C.F.R. § 305.64

(a)
Prior to the start of the actual audit, Federal auditors will hold an audit entrance conference with the IV-D agency. At that conference, the auditors will explain how the audit will be performed and make any necessary arrangements.
(b)
At the conclusion of audit fieldwork, Federal auditors will afford the State IV-D agency an opportunity for an audit exit conference at which time preliminary audit findings will be discussed and the IV-D agency may present any additional matter it believes should be considered in the audit findings.
(c)
After the exit conference, Federal auditors will prepare and send to the IV-D agency a copy of their interim report on the results of the audit. Within a specified timeframe from the date the report was sent, the IV-D agency may submit comments, which are reflected in a record, on any part of the report which the IV-D agency believes is in error. The auditors will note such comments and incorporate any response into the final audit report.
Notes, amendments, and revision history

Amendments

[65 FR 82208, Dec. 27, 2000, as amended at 81 FR 93568, Dec. 20, 2016]

Authority

Authority: 42 U.S.C. 609(a)(8), 652(a)(4) and (g), 658a, and 1302.

Source

Source: 65 FR 82208, Dec. 27, 2000, unless otherwise noted.

Amendments

[65 FR 82208, Dec. 27, 2000, as amended at 81 FR 93568, Dec. 20, 2016]

§305.65. State cooperation in audit.

45 C.F.R. § 305.65

(a)
Each State shall make available to the Federal auditors such records or other supporting documentation (electronic and manual) as the audit staff may request, including records to support the data as submitted on the Federal statistical and financial reports that will be used to calculate the State's performance. The State shall also make available personnel associated with the State's IV-D program to provide information that the audit staff may find necessary in order to conduct or complete the audit.
(b)
States must provide evidence to Office that their data are complete and reliable as defined in § 305.1 of this part.
(c)
Failure to comply with the requirements of this section with respect to audits conducted to determine compliance with IV-D requirements under § 305.60 of this part, may necessitate a finding that the State has failed to comply with the particular criteria being audited.
Notes, amendments, and revision history

Amendments

[65 FR 82208, Dec. 27, 2000, as amended at 85 FR 35208, June 9, 2020]

Authority

Authority: 42 U.S.C. 609(a)(8), 652(a)(4) and (g), 658a, and 1302.

Source

Source: 65 FR 82208, Dec. 27, 2000, unless otherwise noted.

Amendments

[65 FR 82208, Dec. 27, 2000, as amended at 85 FR 35208, June 9, 2020]

§305.66. Notice, corrective action year, and imposition of penalty.

45 C.F.R. § 305.66

(a)
If a State is found by the Secretary to be subject to a penalty as described in § 305.61, the OCSE will notify the State, in a record, of such finding.
(b)
The notice will—
(1)
Explain the deficiency or deficiencies which result in the State being subject to a penalty, indicate the amount of the potential penalty, and give reasons for the finding; and
(2)
Specify that the penalty will be assessed in accordance with the provisions of 45 CFR 262.1(b) through (e) and 262.7 if the State is found to have failed to correct the deficiency or deficiencies cited in the notice during the automatic corrective action year (i.e., the succeeding fiscal year following the year with respect to which the deficiency occurred.)
(c)
The penalty under § 305.61 of this part will be assessed if the Secretary determines that the State has not corrected the deficiency or deficiencies cited in the notice by the end of the corrective action year.
(d)
Only one corrective action period is provided to a State with respect to a given deficiency where consecutive findings of noncompliance are made with respect to that deficiency. In the case of a State against which the penalty is assessed and which failed to correct the deficiency or deficiencies cited in the notice by the end of the corrective action year, the penalty will be effective for any quarter after the end of the corrective action year and ends for the first full quarter throughout which the State IV-D program is determined to have corrected the deficiency or deficiencies cited in the notice.
(e)
A consecutive finding occurs only when the State does not meet the same criterion or criteria cited in the notice in paragraph (a) of this section.
Notes, amendments, and revision history

Amendments

[65 FR 82208, Dec. 27, 2000, as amended at 81 FR 93568, Dec. 20, 2016]

Authority

Authority: 42 U.S.C. 609(a)(8), 652(a)(4) and (g), 658a, and 1302.

Source

Source: 65 FR 82208, Dec. 27, 2000, unless otherwise noted.

Amendments

[65 FR 82208, Dec. 27, 2000, as amended at 81 FR 93568, Dec. 20, 2016]