Child Support Finance 101
2007 Annual Child Support Training
Conference and Expo
Child Support Finance 101
Today’s Presentation
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An overview of LCSA key fiscal management activities
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CS921 (104)
EDP Funding (104)
Prior Approval Requirements (104)
CS356 (104)
CCSAS Costs
Depreciation
Disposition of Assets
COWCAP
POC/MOU
Audits (107)
Child Support Finance 101
Moderator & Presenters
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Connie Brunn, Director
San Bernardino County Department of Child Support Services
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Justina Gould, Manager
DCSS Budget and County Allocations
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Robert Bash, Director
Fresno County Department of Child Support Services
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John Steele, Administrative Manager
Riverside County Department of Child Support Services
Child Support Finance 101
Budget Allocation Requests
CS 921
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Detailed administrative budget
information used to display:
FTEs
 Average salaries
 Expenditures
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Annual LCSA letter requesting data
 Data collected via web form
 Data used for various reports
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Child Support Finance 101
Local Perspective CS 921
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Administrative Budget Information:
Few people in LCSAs see this form
 FTEs are exactly that
 Explanations are necessary
 Classifications can vary county to county
 Section K is very important
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Child Support Finance 101
EDP Recurring &
Non-Recurring Funding
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Annual LCSA letter requesting budget data
Submit via EDP web form
M&O funding
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Current need
Historical trend
Non-recurring funding
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New non-recurring projects
LCSAs submit requests in January
Child Support Finance 101
Local Perspective –
EDP
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Things to watch
Local definitions of EDP versus State
definitions
 Local charges usually more detailed
 Timing issues
 Staffing and overhead
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Child Support Finance 101
Prior Approval Requirements
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Administrative and EDP
Policy in CSS Letters 04-20 and 05-05
 All automation products and services
planned for purchase using EDP or
Administrative non-EDP funds
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• Including personal computers, servers,
printers, integrated voice response units,
imaging systems, new and existing software,
and web contracting services
Child Support Finance 101
Administrative and EDP
Claim Processes (CS 356)
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Federal requirement to:
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Report expenditures
Expenditure data used
Reconcile funds advanced to LCSAs
 To determine future funding
 For various internal reports
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Child Support Finance 101
Administrative and EDP
Claim Processes (CS 356)
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Laws and Rules
OMB Circular A-133
 OMB Circular A-87
 CFR Part 45, Section 92.25(b)
 Family Code 17714(b)
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Child Support Finance 101
Administrative and
EDP Claim Processes
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Submit quarterly claim 15 days after the end of
the quarter
Time certify vs. Time study
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Time certify
• When staff are working 100% on one activity or
function
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Time study
• When staff are spending time on two or more
activities or functions
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In the mid-month of quarters one and four
(August and February)
Child Support Finance 101
Local Perspective –
Claims
Quarterly process
 Track expenses ongoing
 Categorize EDP expenses by claim
numbers
 Remember cash basis accounting
 Less detail than CS 921
 Different detail than CS 921
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Child Support Finance 101
Local Perspective Claims
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Supplemental Claims
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Abatements
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Reconciliation to final allocation
Child Support Finance 101
CCSAS Costs
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Conversion funding available
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Limited funding, not sufficient to cover all costs
for:
• staff overtime
• temporary help
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Time certify or Time study
• Keep documentation for four years and four months
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Travel costs can be reimbursed separately
CCSAS equipment tracking policy under
development
Child Support Finance 101
Local Perspective
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Track the asset
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Take care to ensure that books are kept
separate
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Non-CCSAS EDP assets
Child Support Finance 101
Depreciation
Title 45 CFR, Section 95.705(a)
 AT 94-5
 LCSA Letter 05-24
 CSS Letter 04-20
 Approved to purchase
 Recover costs over five years
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Child Support Finance 101
Depreciation
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Non-EDP Equipment
Purchase price over $25,000
 Depreciate/claim over five years
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• Equipment cost $60,000 ($60,000/5)
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Year 1 claim $12,000
Year 2 claim $12,000
Year 3 claim $12,000
Year 4 claim $12,000
Year 5 claim $12,000
Child Support Finance 101
Depreciation
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EDP Equipment
Purchase price over $5,000
 Depreciate/claim over five years
 Including EDP equipment purchased
with Admin (Non-EDP) funds
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• Example: Training room PCs
Child Support Finance 101
Local Perspective –
Depreciation
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Understand the asset
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County “float”
Child Support Finance 101
Disposition of Assets
For Policy:
CSS Letter 04-20 and LCSA Letter 05-19
 Determine fair market value
 Notify DCSS of disposal
 Retain supporting documentation for four
years and four months
 Consider recycling
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Child Support Finance 101
Disposition of Assets
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Under $5,000
LCSAs may transfer, sell, dispose using
county rules
 Proceeds must be abated as program
income on administrative expense
claim
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Child Support Finance 101
Disposition of Assets
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Over $5,000
Transfer equipment
 Sell equipment
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• Proceeds must be abated
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Dispose of equipment using county rules
Child Support Finance 101
Local Perspective
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Recovered money can be reduced by costs
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Environmental fees
Child Support Finance 101
Overhead/Indirect Costs
(aka A-87 or Countywide Cost Allocation Plan)
Claim State Controller’s Office approved
amount only
 Should claim ¼ of the annual cost on
quarterly expense claim
 Can split overhead costs with EDP
 An exception to cash basis claiming rule
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Child Support Finance 101
Local Perspective
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LCSA review supporting documentation
and validate charges
Child Support Finance 101
POC/MOU
Requirements
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Title 45 CFR 303.107 for fiscal portion
Agreements should include:
 Budget estimates
 Covered expenditures
 Methods of determining costs
 Procedures for billing IV-D agency
Child Support Finance 101
Local Perspective
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Go through your county review process
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Monitor for renewal
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County Counsel
Timeframes can be different
When costs change – amend
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Must go through your county process
Child Support Finance 101
Audits
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Authority
OMB A-87 and A-133
 CFR 302.10 and 302.14
 CSS Letter 04-20
 LCSA Letter 05-09
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• History and process in this letter
Child Support Finance 101
Audits
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Keep supporting documentation for at least
four years and four months
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Two (of six) most common audit findings
 Accrual vs. cash basis accounting
 Income or program income not abated
on Administrative Expense Claim
Child Support Finance 101
Local Perspective
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Get used to audits
Retain backup for required timeframe
 Keep findings
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Scope of work
Child Support Finance 101
Wrap Up
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Questions?
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Justina Gould
(916) 464-5015
 Your County Allocations Analyst
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Child Support Finance 101
THANK YOU
Child Support Finance 101