+--------------------+-------------------------------------------------+
| **30 MINUTES**     | **MODULE 1: THE BIG PICTURE**                   |
|                    |                                                 |
| **Display Learning | The learning objective for this module is to    |
| Objectives**       | help participants understand the changing world |
|                    | of child support enforcement with an emphasis   |
|                    | on the expanded Federal Parent Locator Service  |
|                    | (FPLS). Participants will learn how the         |
|                    | entities within the FPLS provide locate         |
|                    | information to the States and facilitate case   |
|                    | processing.                                     |
|                    |                                                 |
|                    | This module presents an overview of State and   |
|                    | Federal roles in communicating and exchanging   |
|                    | data. It presents an overview of databases such |
|                    | as the State Directories of New Hires (SDNHs),  |
|                    | the National Directory of New Hires (NDNH), the |
|                    | State Case Registries (SCRs), and the Federal   |
|                    | Case Registry (FCR). The module also briefly    |
|                    | discusses methods of transmission such as the   |
|                    | Child Support Enforcement Network (CSENet),     |
|                    | CONNECT:Direct, and Electronic Funds            |
|                    | Transfer/Electronic Data Interchange (EFT/EDI). |
|                    | Finally, the module presents an overview of     |
|                    | State Disbursement Units (SDUs), financial      |
|                    | institution data matching, and high-volume      |
|                    | automated administrative enforcement in         |
|                    | interstate cases (AEI).                         |
|                    |                                                 |
|                    | # TRAINING MATERIAL                             |
|                    |                                                 |
|                    | > PowerPoint slide presentation                 |
|                    | >                                               |
|                    | > Overhead projector                            |
|                    | >                                               |
|                    | > Flip chart with easel and markers             |
|                    | >                                               |
|                    | > Presentation on VHS tape                      |
+--------------------+-------------------------------------------------+
| **Begin \"Big      | **I. The Big Picture -- State/Federal**         |
| Picture\" video or |                                                 |
| display Learning   | > Child support has changed a lot in the past   |
| Objectives**       | > few years. Welfare reform legislation is      |
|                    | > revolutionizing the way we do business.       |
| Point out to       | > Understanding the changes can seem            |
| participants that  | > overwhelming, and for this reason we have     |
| a copy of this and | > developed this course.                        |
| all of the other   | >                                               |
| slides we will     | > Over the next two days we want to understand  |
| present appear in  | > the changing world of child support today. We |
| Appendix D at the  | > will look at State and Federal roles in       |
| end of this        | > communicating and exchanging data. We will    |
| training manual.   | > especially focus on the expanded Federal      |
|                    | > Parent Locator Service or FPLS and try to     |
|                    | > explain how the entities within the FPLS      |
|                    | > provide locate information to the States and  |
|                    | > facilitate case processing.                   |
|                    | >                                               |
|                    | > We will look at databases like the State and  |
|                    | > National Directories of New Hires and the     |
|                    | > State and Federal Case Registries. We will    |
|                    | > talk about methods of transmission like       |
|                    | > CSENet, CONNECT:Direct, and EFT/EDI. And      |
|                    | > we\'ll touch on State Disbursement Units and  |
|                    | > financial institution data matching, and      |
|                    | > high-volume automated administrative          |
|                    | > enforcement in interstate cases.              |
|                    | >                                               |
|                    | > This course will show you how these parts fit |
|                    | > together and how the changes brought about by |
|                    | > welfare reform will affect the information    |
|                    | > you have access to, how you send and receive  |
|                    | > that information, and how you process cases.  |
|                    | > We\'ll try to inform you but not confuse you, |
|                    | > and sometimes we might even succeed in        |
|                    | > entertaining you.                             |
|                    | >                                               |
|                    | > We want to see the big picture of State and   |
|                    | > Federal child support entities interacting to |
|                    | > help workers locate information and improve   |
|                    | > case processing.                              |
|                    | >                                               |
|                    | > How well do you remember your high school     |
|                    | > geometry?                                     |
|                    | >                                               |
|                    | > The two dark blue pentagons are States. As    |
|                    | > you can see, a lot of child support           |
|                    | > activities are going on in each State. The    |
|                    | > purple trapezoid represents the FPLS on the   |
|                    | > Federal level. A lot of activity is going on  |
|                    | > there too.                                    |
|                    |                                                 |
|                    | We are going to talk about the kinds of         |
|                    | information housed in or provided by each of    |
|                    | these entities, which you see here as colorful  |
|                    | shapes. We will also talk in some detail about  |
|                    | some of the methods used to transmit data from  |
|                    | one entity to another.                          |
|                    |                                                 |
|                    | Although this view may look overwhelming, it is |
|                    | relatively easy to understand if we break it    |
|                    | down into smaller parts.                        |
+--------------------+-------------------------------------------------+
| Display The Big    | **II. The Big Picture -- State Level**          |
| Picture -- State   |                                                 |
| Level              | > Now let\'s look at the structure in a single  |
|                    | > State.                                        |
| Emphasize that you |                                                 |
| will talk about    | As you all know, each State is required to have |
| each of these in   | an **automated statewide system**, represented  |
| detail later in    | by the purple triangle labeled **SWS**.         |
| the training.      | Statewide systems are also referred to as child |
|                    | support enforcement or CSE systems.             |
| Mention that some  |                                                 |
| alternative        | And included in the automated statewide system  |
| systems are also   | is the **State Case Registry or SCR**,          |
| allowed.           | represented by that little red triangle. Each   |
|                    | SCR contains information on IV-D child support  |
| Explain            | cases and non-IV-D support orders as of October |
| CONNECT:Direct     | 1, 1998.                                        |
| (C:D). C:D is      |                                                 |
| software that      | As you can see by the arrows going back and     |
| transmits data     | forth, the statewide automated system is        |
| directly from its  | exchanging information with the **State         |
| source to the      | Directory of New Hires or SDNH**. The SDNH is   |
| Social Security    | represented here by a yellow rectangle.         |
| Administration     | **Employers** (See the yellow hexagons with the |
| (SSA) where the    | Empl on them?) send information about their     |
| NDNH and FCR are   | newly hired employees to their SDNH, which      |
| housed, removing   | might be housed in their State's IV-D agency or |
| any points of      | in the State Employment Security Agency,        |
| vulnerability      | abbreviated as SESA. Once the SDNH receives new |
| during             | hire data from employers, it shares that        |
| transmission. The  | information with the statewide system to help   |
| Federal Office of  | locate child support case participants.         |
| Child Support      |                                                 |
| Enforcement (OCSE) | What else do we see? We see a white rectangle,  |
| uses SSA\'s secure | the **State Disbursement Units** or **SDUs.**   |
| networks to        | Welfare reform requires each State to operate   |
| transmit data.     | an SDU to handle the collection and             |
|                    | disbursement of payments from IV-D support      |
| Mention that       | orders as well as non-IV-D support orders       |
| although many      | containing income withholding provisions issued |
| States have        | after January 1, 1994. Here we can see the SDU  |
| already            | exchanging information with the statewide       |
| implemented        | automated system.                               |
| centralized        |                                                 |
| collection---it    | **Employers** (remember the yellow hexagon?)    |
| has been in some   | are interacting with the SDUs by sending        |
| States for quite   | payments and payment information by mail or by  |
| awhile---other     | **EFT/EDI. EFT/EDI** stands for **Electronic    |
| States are just    | Funds Transfer/Electronic Data Interchange**.   |
| now instituting    | Electronic Funds Transfer is the money part.    |
| this requirement   | Electronic Data Interchange is the remittance   |
| of PRWORA. Some    | information part. Using EFT/EDI means fewer     |
| States are also    | mistakes, and it saves time and money for both  |
| seeking waivers to | the employer and the financial institution. It  |
| avoid this         | is truly a win-win situation that you will want |
| requirement.       | to encourage in your State.                     |
|                    |                                                 |
| If your State has  | **Financial Institution Data Matching (FIDM)**  |
| not yet            | is another new requirement in welfare reform.   |
| implemented        | Look above the blue State for the large yellow  |
| centralized        | hexagon labeled **FI**. Financial institutions  |
| collections,       | exchange information with statewide systems for |
| discuss the        | financial institution data matching in order to |
| magnitude of       | locate the assets of noncustodial parents (or   |
| change that this   | NCPs). When there is a financial locate hit,    |
| will mean for your | the State sends a levy or lien to the financial |
| State.             | institution, and the financial institution      |
|                    | surrenders the assets of the delinquent NCP.    |
+--------------------+-------------------------------------------------+
| **Display The Big  | **III. The Big Picture -- Interstate**          |
| Picture --         |                                                 |
| Interstate**       | Now that we have looked at one State in some    |
|                    | detail, let\'s change the view a little and     |
| #                  | look at two States interacting with each other  |
|                    | for interstate case processing. As you know     |
| Mention that while | only too well, interstate cases are among your  |
| States have been   | most difficult cases to process.                |
| required to have   |                                                 |
| CSENet capability  | Here we see two States that are mirror images   |
| for a while, we    | of each other. Each State has all the entities  |
| know that some     | that we looked at earlier in our discussion of  |
| States are not yet | State structure.                                |
| using it widely.   |                                                 |
|                    | > The important thing to see here is how these  |
|                    | > two States will exchange information with     |
|                    | > each other.                                   |
|                    | >                                               |
|                    | > First of all, the two States are using        |
|                    | > **CSENet,** a communication tool, to send     |
|                    | > case information to each other. The blue      |
|                    | > circle between the two Blue State pentagons   |
|                    | > represents the CSENet host, directing traffic |
|                    | > between States. CSENet will be the interstate |
|                    | > communication tool that expedites             |
|                    | > State-to-State communication. Using CSENet    |
|                    | > will become particularly important as more    |
|                    | > interstate locate information is sent to the  |
|                    | > States from the FPLS.                         |
|                    |                                                 |
|                    | You can also see three initials, **AEI**,       |
|                    | connecting the two States. **AEI** stands for   |
|                    | high volume, automated                          |
|                    | **[A]{.underline}**dministrative                |
|                    | **[E]{.underline}**nforcement in                |
|                    | **[I]{.underline}**nterstate cases. **AEI** is  |
|                    | a welfare reform requirement that allows State  |
|                    | A to send case information to State B so that   |
|                    | State B can look for financial assets in its    |
|                    | own State. State B does not need to open a case |
|                    | in order to seize these assets on behalf of     |
|                    | State A.                                        |
|                    |                                                 |
|                    | We can also see that the State to our left is   |
|                    | sending a direct income withholding order to an |
|                    | employer in the State to our right. Another     |
|                    | provision of welfare reform allows our State on |
|                    | the left to send an income withholding order    |
|                    | directly to an employer in our State to the     |
|                    | right without having to notify that State.      |
|                    |                                                 |
|                    | And as you can see, that same employer (see the |
|                    | yellow hexagon?) is sending cash and case       |
|                    | information to the State on the left. The cash  |
|                    | and information could be sent by mail, but      |
|                    | we\'re being high tech here, so we have the     |
|                    | employer sending it by **EFT/EDI.**             |
+--------------------+-------------------------------------------------+
| **Display The Big  | **IV. The Big Picture -- FPLS**                 |
| Picture -- FPLS**  |                                                 |
|                    | > Next let\'s look at what is happening to the  |
|                    | > world of child support enforcement at the     |
|                    | > national level with programs administered by  |
|                    | > the Federal Office of Child Support           |
|                    | > Enforcement (OCSE). We want to give you an    |
|                    | > idea of how everything works together.        |
|                    |                                                 |
|                    | The large, aqua-colored circle represents the   |
|                    | **National Directory of New Hires** or          |
|                    | **NDNH**, which was implemented on October 1,   |
|                    | 1997. The NDNH is a database containing new     |
|                    | hire, quarterly wage, and unemployment          |
|                    | insurance data. The curving black arrow above   |
|                    | the FPLS represents new hire data coming in     |
|                    | from each State Directory of New Hires. Look    |
|                    | for the yellow SESA circle to the left of the   |
|                    | FPLS. The SESAs are sending quarterly wage and  |
|                    | unemployment insurance data. The NDNH also      |
|                    | contains new hire and quarterly wage data       |
|                    | coming from Federal agencies (another yellow    |
|                    | circle to the left of the FPLS).                |
|                    |                                                 |
|                    | CONNECT:Direct transmits new hire information   |
|                    | from each SDNH to the NDNH. Now you\'re         |
|                    | probably asking yourselves, \"Just what is      |
|                    | CONNECT:Direct?\" CONNECT:Direct or C:D is data |
|                    | transmission software that has the ability to   |
|                    | move large volumes of data between computer     |
|                    | systems quickly. It also provides protection    |
|                    | against unauthorized system access.             |
|                    |                                                 |
|                    | So that\'s the NDNH, a database and a major     |
|                    | component of the FPLS. But what else is in the  |
|                    | FPLS?                                           |
|                    |                                                 |
|                    | There is the **Federal Case Registry** or       |
|                    | **FCR**, represented by the large pink circle   |
|                    | in the center of the purple FPLS trapezoid. The |
|                    | FCR is a database that as of October 1, 1998,   |
|                    | will hold extracts of case/order data from the  |
|                    | State Case Registries. You can see from the     |
|                    | arrow at the top of the screen that case        |
|                    | registry data for the FCR is coming from the    |
|                    | States by means of C:D. The FCR is designed to  |
|                    | be a pointer system, pointing States in the     |
|                    | direction of other States that have an interest |
|                    | in the same case participants. Information      |
|                    | available from the FCR includes a               |
|                    | participant\'s name, Social Security Number,    |
|                    | date of birth, sex, State, case number, and     |
|                    | whether there\'s a support order in the case.   |
|                    | The FCR will not house all the case and order   |
|                    | information necessary for enforcement. States   |
|                    | will still have to communicate with each other. |
|                    | And this will have to happen often and in as    |
|                    | automated a way as possible, via CSENet.        |
|                    |                                                 |
|                    | The NDNH and the FCR are the two components of  |
|                    | the FPLS that exchange information in proactive |
|                    | matching. Proactive matching means comparing    |
|                    | the data of the NDNH to the data of the FCR     |
|                    | every day to find interstate hits. It also      |
|                    | means searching within the FCR itself every day |
|                    | to find matching participants. And, of course,  |
|                    | new data constantly pours into the FPLS.        |
|                    |                                                 |
|                    | Proactive matching means a lot of data will be  |
|                    | sent to the States. Being able to receive and   |
|                    | use this data will go a long way toward making  |
|                    | your State system effective. We hope to         |
|                    | convince you that proactive matching is your    |
|                    | new best friend.                                |
|                    |                                                 |
|                    | Now look for the dark blue circle called        |
|                    | **External Locate Sources**. Even with the      |
|                    | expanded FPLS, there will still be people who   |
|                    | are not listed in its databases. You will still |
|                    | be able to ask the FPLS to search certain       |
|                    | external locate sources such as the Social      |
|                    | Security Administration, the Internal Revenue   |
|                    | Service, the Department of Defense, Project     |
|                    | 1099, the Federal Bureau of Investigation, and  |
|                    | the Department of Veterans Affairs.             |
|                    |                                                 |
|                    | Notice the **Tax Refund and Administrative      |
|                    | Offsets/Passport Denial** diamond off to the    |
|                    | right of the purple FPLS. The offset programs   |
|                    | are enforcement tools used to collect past due  |
|                    | child support from delinquent NCPs**. Passport  |
|                    | denial** is an enforcement tool administered    |
|                    | with the offset program. Here is how the        |
|                    | passport denial remedy works: When a State      |
|                    | submits a case for the Federal Offset Program,  |
|                    | unless it is "flagged" to be excluded, the case |
|                    | is also submitted for the passport denial       |
|                    | remedy if there are arrears exceeding \$5,000.  |
|                    |                                                 |
|                    | We also see cases being matched against         |
|                    | **multistate financial institutions** (look for |
|                    | a yellow rectangle to the right of the purple   |
|                    | FPLS). OCSE is working with States and          |
|                    | multistate financial institutions to conduct    |
|                    | centralized data matches. Here is how it will   |
|                    | work: When there is a financial locate hit, the |
|                    | multistate financial institution notifies OCSE, |
|                    | which in turn notifies the State. The State     |
|                    | then sends a levy or lien to the financial      |
|                    | institution, and the financial institution      |
|                    | surrenders the assets of the delinquent NCP.    |
+--------------------+-------------------------------------------------+
| **Display The Big  | # V. The Big Picture -- State/Federal Revisited |
| Picture --         |                                                 |
| State/Federal**    | > Now let us go back and look at that first     |
|                    | > State/Federal level view again. We hope it    |
|                    | > doesn't look quite as overwhelming as it did  |
|                    | > at the beginning.                             |
|                    | >                                               |
|                    | > We see two States that can share information  |
|                    | > internally and also with OCSE. This is a key  |
|                    | > point.                                        |
|                    | >                                               |
|                    | > Another key point is proactive matching.      |
|                    | > Proactive matching is represented here by C:D |
|                    | > with arrows connecting NDNH and the FCR with  |
|                    | > each State. Proactive matching will yield a   |
|                    | > large volume of data that will be sent to the |
|                    | > States. We discussed proactive matching       |
|                    | > earlier, but now let\'s look at a case study  |
|                    | > to see an example of proactive matching       |
|                    | > working to facilitate case processing.        |
+--------------------+-------------------------------------------------+
| Display Reggie and | **VI. Case Study**                              |
| Veronica Case      |                                                 |
| after introduction | As every good trainer knows, case studies are   |
|                    | very helpful in illustrating material and       |
| We will follow     | making it concrete.                             |
| Reggie, Veronica,  |                                                 |
| and Betty          | In this case study, Reggie and Veronica were    |
| throughout our     | childhood sweethearts. They met in high school  |
| training as an     | and had been together and in love for years.    |
| example of         | After marrying and settling down in Virginia    |
| interstate         | not far from where they grew up, they had a     |
| enforcement cases. | baby girl and named her Betty, in honor of      |
|                    | Veronica's best friend.                         |
| Encourage          |                                                 |
| participants to    | Unfortunately, their childhood romance could    |
| discuss how they   | not be sustained, and as time passed, they      |
| would handle the   | found that they were growing apart. Veronica,   |
| scenarios listed   | always rather a spoiled rich kid, wasn't        |
| at the right.      | comfortable in the role of "responsible adult." |
|                    | Reggie began to tire of Veronica's endless      |
|                    | shopping trips to the mall. Tensions mounted    |
|                    | and Reggie finally left Veronica and            |
|                    | disappeared. She was distraught. She had no     |
|                    | idea how or where to find him.                  |
|                    |                                                 |
|                    | Veronica contacted the IV-D agency in Virginia. |
|                    | She has a support order, effective November     |
|                    | 1990, which says that Reggie should pay her     |
|                    | \$500 each month to support Betty. However,     |
|                    | Veronica hasn't heard from Reggie since he left |
|                    | and he hasn't paid anything for quite a while.  |
|                    | At this point, he is \$10,000 in arrears on     |
|                    | this order.                                     |
|                    |                                                 |
|                    | Veronica again contacted the IV-D agency in     |
|                    | Virginia in order to get help finding Reggie    |
|                    | and enforcing the order. To date, the Virginia  |
|                    | agency has been unable to locate Reggie using   |
|                    | their in-state database matches.                |
|                    |                                                 |
|                    | Now let\'s assume Reggie has moved to Maryland  |
|                    | and is working at Phillip\'s Crab House.        |
|                    | Knowing what you do about the SDNHs and the new |
|                    | FPLS, how will this new system help Veronica?   |
|                    |                                                 |
|                    | Also, in the meantime, Veronica has met         |
|                    | Jughead, while on vacation in Florida. They     |
|                    | have a short romance and nine months later      |
|                    | Jughead Jr. is born. Veronica applies for CSE   |
|                    | services in Virginia for paternity and support. |
|                    | Jughead has a current child support case in     |
|                    | Florida with his ex-wife and child. Knowing     |
|                    | what you know about the new FPLS, how will this |
|                    | help Veronica establish paternity and child     |
|                    | support for Jughead Jr.?                        |
|                    |                                                 |
|                    | The answer(s) will become obvious over the next |
|                    | two days.                                       |
+--------------------+-------------------------------------------------+