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Interstate Financial “Topics of Interest”. Colorado Family Support Conference- June 2013 Christine Sorenson. Is it acceptable to enforce state debt when another state is enforcing current support?. Why? Doesn’t follow federal distribution rules Two states enforcing Recommendation

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Interstate financial topics of interest

Interstate Financial “Topics of Interest”

Colorado Family Support Conference- June 2013

Christine Sorenson


Federal distribution rules state arrears only a f

Is it acceptable to enforce state debt when another state is enforcing current support?

  • Why?

    • Doesn’t follow federal distribution rules

    • Two states enforcing

  • Recommendation

    • Initiate reciprocal to the state enforcing current OR

    • Ask OS to initiate to CO

Federal Distribution Rules State Arrears Only (A/F)

No


Registration of another state s order

  • Registration adjudicates arrears by operation of enforcing current support? law

  • Ensure arrears amounts are correct & all documents received have same arrears balance

  • If registering for state arrears only, ensure that period of computation only covers TANF time frame

Registration of Another State’s Order


Responding cases coding class status

Ensure that the class and status are coded correctly. enforcing current support?

  • Reporting

  • Unfunded Disbursements

  • Some states cannot separate different classes of money (Initiating)

Responding CasesCoding Class/Status?


Responding cases ledger balances and mso posting

Responding CasesLedger Balances and MSO Posting


Costs due colorado on responding reciprocal ledgers

Costs enforcing current support? must be initiated in a Non-Judgment or Judgment obligation with the appropriate obligation type code.

Non-Judgment – KT

Judgment - JT

So…what happens if we don’t use the

correct codes?

Costs Due Coloradoon Responding Reciprocal Ledgers


Interest on responding cases another state s order

Interest on Responding Cases Another State’s Order


Interest on responding cases another state s order1

CO another state’s ordercannot track interest separately

Recommendations

  • Review interest/balance statement

  • May be the total interest due (CO may have previously adjusted for a portion of this amount)

  • To ensure correct adjustment, contact the initiating state

    • Interest accrued since last CO interest adjustment

    • Any direct payments received by initiating state

  • Use the appropriate interest adjustment reason codes

    • IN – adjustment to current delinquency balance

    • JI – adjustment to judgment balance

Interest on Responding Cases Another State’s Order


Interest on responding cases colorado order

Colorado is “keeper of record” another state’s order

  • Discretion of the county office

  • If enforcing interest - follow Volume 6

Colorado

Interest on Responding Cases – Colorado Order -


Interest on initiating cases another state s order

Other jurisdiction is “keeper of record” another state’s order

Adjust to their balance (which may include interest)

Other

State

Interest on Initiating Cases Another State’s Order


Interest on initiating cases colorado order

Colorado is another state’s order

“keeper of record”

  • Discretion of the county office

  • If enforcing interest - follow Volume 6

Colorado

Interest on Initiating Cases - Colorado Order -


Responding reciprocal os order whose balance is correct

Use code “UR” (Reciprocal Caused) to adjust the ledger to match other jurisdiction.

Responding Reciprocal – OS OrderWhose balance is correct???


Payment disbursement on responding reciprocal ledger
Payment Disbursement to match other jurisdiction.on Responding Reciprocal Ledger

Not necessarily!

All payments are disbursed to the initiating state, right?


Payment disbursement on responding reciprocal ledger1

What if the payments are being sent directly to the to match other jurisdiction.obligee or to the wrong state?

  • Research to determine why

    • Is MSO posted correctly?

    • Are the arrears coded correctly?

      • Obligation type S for other state

      • Owned by the correct HH#?

        (Responding reciprocal cases have a suffix of 45-56.)

Payment Disbursement on Responding Reciprocal Ledger


Payment disbursement closed responding reciprocal case
Payment Disbursement to match other jurisdiction.Closed Responding Reciprocal Case

The responding case is closed but the payments are still being disbursed to the initiating state.

Why don’t they disburse to the CP or to the correct state?


Payment disbursement closed responding reciprocal case1

Payment DisbursementClosed Responding Reciprocal Case


Changing responding states mid month

DO NOT to match other jurisdiction.change states mid-month!!!

  • Pertains to MSO only

    • Can balance adjust obligations mid-month

  • Set batch allocation to “N” (No)

  • Set calendar review

Changing Responding States Mid-Month


Manual ledgers

  • SAM orders – specific dollar amount medical to match other jurisdiction.

  • Requires manual ledger (for entire ledger)

    What if?

    The order states “specific amount medical” and child care are part of child support?

    • No manual ledger

    • Part of MSO

Manual Ledgers


Foster care case vs fee case

FC Fee = ends when placement ends to match other jurisdiction.

CS Order = ongoing obligation until emancipation

ISSUE: if money due CP and FC…

  • CO handles as one case

  • Other states handle as two separate cases

    CO receives two responding reciprocals……

  • Contact the initiating state to see which case number they want to use - cannot include both (usually done at the Central Registry)

Foster Care CaseVS Fee Case


Tx redirect

Criteria: to match other jurisdiction.

  • CO order

  • No active reciprocal to CO

  • Employer located

TX Actions:

  • TX system automatically sends IWO

  • TX sends CO a Transmittal #1 and copy of IWO asking CO to redirect payments

TEXAS

TX Redirect


Tx redirect potential payment issues co redirecting only

  • CO order to match other jurisdiction.

  • Closed IV-D case (not transitioned to NIVD)

  • Neither party residing in CO

  • TX issues IWO to employer to pay CO FSR

  • Employer pays CO FSR

    • Employer has not received redirect letter from CO

  • Payment in IDSUSP – WHAT SHOULD I DO?

    • Review chron

    • Call the employer

    • Contact INASST

TX RedirectPotential Payment IssuesCO Redirecting Only


Tx redirect potential payment issues co enforcing for tx

  • CO Order to match other jurisdiction.

  • Closed IV-D case (not transitioned to NIVD)

  • Obligor residing in CO

  • TX issues IWO to employer to pay CO FSR

  • Employer pays CO FSR

  • Payment in IDSUSP – WHAT SHOULD I DO?

    • Check for interstate referral (RRL)

    • Review chron

    • Call the employer

    • Contact INASST

TX RedirectPotential Payment IssuesCO Enforcing for TX


Option s redirect

No party residing to match other jurisdiction.in order-issuing state

  • UIFSA 2001 (14-5-319)

  • Requires order-issuing state to redirect to obligee’s state

  • Takes the order-issuing state “out of the middle”

  • Allows a state to enforce directly

    NOTE: If the obligor resides in the order-issuing state, initiate a reciprocal action, do not use the Option “S” Redirect.

Option “S” Redirect


Initiated reciprocal overcollect prepay return to sender

  • Received more than balance due on ledger? to match other jurisdiction.

    • Determine why – is our ledger correct?

    • Whose order is it?

    • Contact responding state

  • Overcollect $ always goes back to OS

    • Request to FA Customer Service

      • FA Transaction #

      • $ amount to be returned to OS

        (may not be entire payment)

Initiated ReciprocalOvercollect? Prepay? Return to sender?


Initiated reciprocal overcollect prepay return to sender1

Receiving money on a to match other jurisdiction.closed case?

Determine why

Money always goes back to OS

  • Request to FA Customer Service

    • FA Transaction #

    • $ amount to be returned to OS

      (may not be entire payment)

Initiated ReciprocalOvercollect? Prepay? Return to sender?


International cases

Differences to match other jurisdiction.in currency create special financial considerations.

U.S. order; foreign country enforcing:

  • Order entry same as for an in-state case

  • Payments received from Foreign Reciprocating Country (FRC)

  • Currency converted to U.S. dollars upon receipt by the FSR

  • Ledgers of the two countries will not match exactly

    • Send an updated arrears calculation to the other country periodically (every six months)

International Cases


Foreign country order; foreign country enforcing: to match other jurisdiction.

  • Order issued in currency of issuing country

  • Convert order into U.S. currency

    • Use date of registration

    • Suggested websites for converting currency:

      • http://www.oanda.com/convert/classic

      • http://www.xe.com/ucc/

  • Enter order into ACSES in U.S. dollars

  • Request FRC send an updated arrears calc periodically

  • Adjust ledger to FRC balance


  • U.S. order; Colorado enforcing: to match other jurisdiction.

    • FSR will send payments to FRC in U.S. dollars

    • FRC converts payments to its currency

    • Ledgers of the two countries will not match exactly

      • Send an updated arrears calculation to the other country periodically (every six months)

      • FRC should adjust their ledger to our balance


    Foreign country order; to match other jurisdiction.Colorado enforcing:

    • Order issued in currency of foreign country

    • Convert order into U.S. Currency

      • Use date of registration

      • Suggested websites for converting currency:

        • http://www.oanda.com/convert/classic

        • http://www.xe.com/ucc/

  • Enter order into ACSES in U.S. dollars

  • Request the FRC send an updated arrears calc periodically

  • Adjust ledger to FRC balance


  • Critical points when registering foreign orders

    Critical Points When Registering Foreign Orders


    Other state fees some states charge a fee to the cp some to the ncp

    Fees charged to: to match other jurisdiction.

    • CP - will display on LSTTRANS as a BS and on PAYREC as an “other state fee”

    • NCP - will be added to the MSO due

    Other State FeesSome states charge a fee to the CP, some to the NCP.


    Transitioning other states orders to non iv d

    Don’t Do It!! to match other jurisdiction.

    Transitioning Other States’ Orders to Non-IV-D


    Thanks for your attention and participation

    Thanks for your attention and participation! to match other jurisdiction.


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