Child Support Finance 101
2008 Annual Child Support
Training Conference and Expo
Child Support Finance 101
Presenters
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Justina Gould, Manager
DCSS LCSA Budget Section
John Steele, Administrative Manager
Riverside County Department of Child
Support Services
Child Support Finance 101
Today’s Presentation
 An Overview of LCSA Key Fiscal Management Activities
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Organizational changes at DCSS, Administrative Services
CS921
EDP Funding
Prior Approval Requirements
AA190
CS356
Additional FFP requests
CCSAS Costs
Depreciation
Disposition of Assets
Countywide Cost Allocation Plan (COWCAP)
POC/MOU
Audits
Child Support Finance 101
Organizational changes
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Renamed the branch and unit
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Budget and Contract Services Branch
LCSA Budget Section
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LCSA Budget Analysts
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Anne Allen, Trudy Lehane, Richard Gaughen
Child Support Finance 101
Budget Allocation
Requests CS 921
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Detailed administrative budget
information used to display:
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FTEs
Average salaries
Expenditures
Annual LCSA letter requesting data
Data collected via web form
Data used for various reports
Child Support Finance 101
Local Perspective
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Administrative Budget Information:
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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
Child Support Finance 101
EDP Recurring &
Non-Recurring Funding
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Annual LCSA letter requesting budget
data
Submit via EDP web form on the LCSA
Secure website
M&O funding (recurring)
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Current budget allocated by line item
Prior year base
Non-recurring funding
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New non-recurring projects
Child Support Finance 101
Local Perspective
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Things to watch
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Local definitions of EDP versus
State definitions
Local charges usually more detailed
Timing issues
Staffing and overhead
Child Support Finance 101
Prior Approval Requirements
 Administrative
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and EDP
Policy in CSS Letters 04-20 and 05-05
Contracts and Purchase orders over $100k
require Federal approval, 90 days for approval
All automation products and services planned
for purchase using EDP or Administrative nonEDP funds
 Including personal computers, servers,
printers, integrated voice response units,
imaging systems, new and existing
software, and web contracting service
Child Support Finance 101
AA190 Statement of
Remittance
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Used to report monthly advance and
quarterly adjustments
Monthly basis LCSAs are advanced
1/12 of their allocation
Quarterly true-up/reconciliation with
adjustments on following month’s
advance
Child Support Finance 101
AA190 Statement of
Remittance
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AA190 has 3 sections:
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Section 1: Regular Monthly Advance
Section 2: Offsetting expenditures and
advances (Current Claim)
Section 3: Supplemental claims and
other (in-house claims etc.)
The total remittance on the AA190
is the amount of a warrant issued
by State Controller’s Office.
Child Support Finance 101
Administrative and EDP
Claim Processes (CS 356)
Federal requirement to:
 Report expenditures
Expenditure data used
 Reconcile funds advanced to LCSAs
 To determine future funding
 For various internal reports
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)
Child Support Finance 101
Administrative and
EDP Claim Processes
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Submit quarterly claim 15 days after the end of the
quarter
 Supplemental claims are for expenses inadvertently
omitted
Time certify vs. Time study
 Time certify
 When staff are working 100% on one activity or
function
 Time study
 When staff are spending time on two or more
activities or functions
 In the mid-month of quarters one and four (August
and February)
Cash basis claiming
Child Support Finance 101
Local Perspective
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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
Child Support Finance 101
Local Perspective
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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
Time certify or Time study
 Keep documentation for four years and four
months
Travel costs can be reimbursed separately,
not subject to Admin or EDP Allocations
CCSAS equipment tracking policy LCSA Letter
07-22, September 20, 2007
Child Support Finance 101
Local Perspective
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Track the asset
Take care to ensure that books
are kept separate
Non-CCSAS EDP assets
Child Support Finance 101
Depreciation
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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
Child Support Finance 101
Depreciation
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Non-EDP Equipment
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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
Year
Year
Year
Year
1
2
3
4
5
claim
claim
claim
claim
claim
$12,000
$12,000
$12,000
$12,000
$12,000
Child Support Finance 101
Depreciation
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EDP Equipment
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Purchase price over $5,000
Depreciate/claim over five years
Including EDP equipment
purchased with Admin (Non-EDP)
funds
Child Support Finance 101
Local Perspective
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Understand the asset
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County “float”
Child Support Finance 101
Disposition of Assets
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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
Go green! Consider recycling
Child Support Finance 101
Disposition of Assets
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Under $5,000
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LCSAs may transfer, sell, dispose
using county rules
Proceeds must be abated as
program income on administrative
expense claim
Child Support Finance 101
Disposition of Assets
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Over $5,000
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Transfer equipment
Sell equipment
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Proceeds must be abated
Dispose of equipment using county
rules
Child Support Finance 101
Local Perspective
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Recovered money can be reduced
by costs
Environmental fees
Child Support Finance 101
Overhead/Indirect Costs
(aka A-87 or Countywide Cost Allocation Plan)
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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
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:
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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
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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
Currently DCSS contract with
Dept. of Finance to perform the
fiscal audits
Child Support Finance 101
Audits
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Keep supporting documentation for at
least four years and four months
Audit cycle
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Entrance conference; site visit; exit conference;
draft report; LCSA response; Final report;
demand letter; follow up
Two most common audit findings
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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
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Retain backup for required
timeframe
Keep findings
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Scope of work
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Child Support Finance 101
Wrap Up
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Questions?
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Justina Gould
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(916) 464-5015
Your LCSA Budget Section Analyst
Child Support Finance 101
THANK YOU
Child Support Finance 101