# Multistate financial Institution Data Match

For the purpose of securing information leading to the enforcement of
child support orders, the Personal Responsibility and Work Opportunity
Reconciliation Act (PRWORA) of 1996 (Section 466(a)(17)) as added by
section 372 of Public Law 104-193, mandates States to establish
procedures under which the State Child Support Enforcement Agency (CSEA)
will enter into agreements with financial institutions that do business
in the State. The State CSEA must develop and operate, in coordination
with financial institutions doing business in that State, a data match
system. Financial institutions, as defined by Section 469A(d)(1) of the
Social Security Act, are "a depository institution, as defined in
Section 3(c) of the Federal Deposit Insurance Act (12 U.S.C.
1813(c));\...an institution-affiliated party, as defined in Section (u)
of such Act (12 U.S.C. 1813(u));\...any federal credit union or State
credit union, as defined in Section 101 of the Federal Credit Union Act
(12 U.S.C. 1752), including an institution-affiliated party of such
credit union, as defined in Section 206(r) of such Act (12 U.S.C.
1786(r));\...and any benefit association, insurance company, safe
deposit company, money-market mutual fund, or similar entity authorized
to do business in the State."

The data match process requires each financial institution to provide to
the State CSEA, on a quarterly basis, the name, address, social security
number or other identifying information for each non-custodial parent,
who maintains an account at the financial institution and owes past-due
support. The State CSEA may provide the names and social security
numbers, or other taxpayer identification numbers, to the financial
institution or the State CSEA may accept a file of all accounts held by
the financial institution for match by the State. Following the match,
the financial institutions are required to encumber or surrender the
assets of the delinquent obligor held by the institution in response to
a notice of lien or levy. These procedures must allow automated data
exchanges to the maximum extent feasible.

Public Law 105-200 added provisions to Title IV-D of the Social Security
Act expanding the Federal Parent Locator Service (FPLS) to include the
responsibility of assisting States in conducting data matches with
Multistate Financial Institutions (MSFI). The goals of the Multistate
Financial Institution Data Match (MSFIDM) are to:

-   reduce the burden and associated costs imposed on MSFIs and States
    to perform matching,

-   maintain the integrity and security of the financial and child
    support data, and

-   provide for the quick disbursement of matched data to the
    appropriate States.

In order implement the provisions of the law, OCSE issued a Tax Offset
Certification Addendum to the IV-D Directors of each State. The Addendum
from the State permits OCSE to act on behalf of the State in the
exchange of data with the MSFI using the case information from the
Federal Offset File.

Beginning in March 1999, MSFIs received an Election Form Package. The
package defined the methods of data transmission available between the
MSFI and OCSE for participation in the MSFIDM. It includes an Election
Form that the MSFI could return to indicate their decision to
participate \[or not\] in the MSFIDM. The MSFIs electing to participate
in the match, indicate on the Election Form the data transmission method
selected, the reporting periods, and if appropriate, their designated
service providers. The reporting period on the election form allows the
MSFI to designate the week within the calendar quarter it chooses to
receive the MSFIDM quarterly file. Allowing the MSFI to elect different
reporting periods will control the flow of returned data to the States.

MSFIs electing not to participate in the OCSE process in favor of
participating with the individual States must identify the States in
which they are currently operating. OCSE notifies the States when an
MSFI operating within their State elects not participate in the MSFIDM.

# 10.1 Interface with the Multistate Financial Institution

States and Territories send OCSE information for the Federal Offset
File. The information is used to intercept the Federal tax refunds and
other Federal payments to delinquent obligors, to initiate U.S. Passport
Denial and/or, beginning in July 1999, to match account data with MSFIs.
The Federal Offset System allows the State to designate individuals on
the file to be excluded from one or more of these uses. The Federal
Offset File is the State's interface to the MSFIDM process.

On a weekly basis the MSFIDM process accesses the Federal Offset File.
The process selects eligible records, those without the Offset Exclusion
Indicator Type of 'FIN' (Exclude for Financial Institution Data Match).
The MSFIDM process attempts to verify the SSN and Name combination from
the Federal Offset File using SSA's Enumeration Verification System. If
the SSN and Name combination for the selected records verifies, an
inquiry record is sent to the MSFI. If the SSN and Name combination do
not verify, no inquiry record is sent to the MSFI. If multiple records
are on the Federal Offset file for the same verified SSN, only one
inquiry record is sent to the MSFI.

The MSFIDM process sends the inquiries to the MSFI in the format defined
in the Financial Data Match Specification Handbook approved by the
Office of Budget and Management on March 5, 1999 using Method Two --
Matched Accounts Method. Each participating MSFI or their designated
service provider receives an inquiry file quarterly based on their
selected reporting week. The inquiry file sent represents the most
current Federal Offset File information. The MSFI conducts an internal
match against their open accounts and transmits a file to OCSE to report
information on all accounts that are maintained by individuals on the
inquiry file. Section 466(a)(17)(D)(ii) of the Social Security Act
defines an 'account' as "a demand deposit account, checking or
negotiable withdrawal order account, savings account, time deposit
account, or money-market mutual fund account."

The MSFI has up to forty-five days to match the inquiry and return
information to the FPLS on the accounts matching the inquiry file. The
MSFI must return the response in the format required by the Data Match
Specifications Handbook for the Method Two Matched Accounts Method. The
MSFI provides key information about the matched accounts and where the
request for lien/levy should be sent.

The MSFIDM Help Desk will track the inquiry files sent to and the
response files received from the MSFI to ensure compliance with the
forty-five day turn around time. Follow-up is initiated if the MSFI
fails to respond within the specified time period.

OCSE will not reimburse MSFIs for the cost of processing the MSFIDM
inquiries. If a State law allows, the State CSEA may pay reasonable fees
to financial institutions for conducting the data match. These fees must
not exceed the actual costs incurred by the financial institution. If a
MSFI chooses to recover the cost of processing the MSFIDM inquiries, it
must bill the individual States. Following the processing of the MSFI
quarterly response file, the MSFIDM process provides the MSFI with a
statistical report of the number of matches made per State and the
billing address of the States where fees are allowed. The MSFIDM process
provides the States with periodic reports on the number of matches made
by MSFI.

## MSFI Response Processing

The MSFIDM response process is executed daily, Monday through Friday. It
will edit the responses received from the MSFI. Response files failing
critical edits are rejected and the MSFI is requested to submit a
corrected file. The accepted MSFI response records are matched to the
current Federal Offset File to determine the States interested in the
account information returned by the MSFI. If a case has been deleted or
the Offset Exclusion Indicator Type of 'FIN' has been added since the
inquiry file was sent to the MSFI, the MSFI response record will not be
sent to the State. The FCR is accessed for each response record returned
to check for the presence of a Family Violence Indicator. If the Family
Violence Indicator is associated with the SSN, the MSFI response record
will not be sent to the State(s). Once the Family Violence Indicator
check is complete, the process matches the SSN on the MSFI matched
account to the eligible records (undeleted records with a verified SSN
and Name combination with a verified SSN and Name combination and
without a Financial Institution data match exclusion indicator) on the
Federal Offset File. An FCR MSFIDM Response Record is created for each
eligible record matched on the Federal Offset File. For example if the
State has three eligible records on the Federal Offset File for the same
SSN a response record is created for each record. Also, if the MSFI has
multiple accounts for the same SSN, response records are returned for
each account matched to an eligible record on the Federal Offset File.
The MSFIDM process combines the financial institution data and the
account information into one FCR MSFIDM Response Record for each account
matched. Appendix H, "FCR Output Transaction Layouts," includes a
description of the FCR MSFIDM Response Record. Appendix E, "Data
Dictionary," provides additional details on the data elements included
in the record.

## Returning MSFIDM Reponses to the States

The FCR MSFIDM Response Records created from the MSFI responses are
sorted by State. The FCR MSFIDM Response Records are sent to the State
within two working days of the acceptance of the MSFI response file. The
record is returned to the State in the FCR Locate Response Batch.
Appendix H, "FCR Output Transaction Layouts," includes a description of
the FCR Locate Response Batch. The FCR Locate Response Batch is included
in the file transmitted daily to the States via Connect:Direct.