![](media/image1.png){width="1.5472222222222223in"
height="1.7541666666666667in"}***INSTRUCTIONS FOR COMPLETION OF FORM
OCSE-396A***

**CHILD SUPPORT ENFORCEMENT PROGRAM EXPENDITURE REPORT**

> **Paperwork Act Notice.** This information collection is mandatory.
> The information collected on this form is required under Title IV-D
> (Section 455) of the Social Security Act (42 USC 655). The Office of
> Child Support Enforcement uses this information to calculate and issue
> quarterly Federal grant awards and annual incentive payments to the
> State agencies administering the Child Support Enforcement Program.
> This is considered public information and is published in an annual
> report of statistical and financial data available to the public.
> States are not required to use this form if it does not include a
> currently valid OMB Control Number.
>
> **Reporting Burden Notice.** The reporting burden imposed by the
> collection of information required by this report is estimated to be 8
> hours per response. This includes time for reviewing instructions,
> searching data sources, gathering and maintaining the data needed and
> completing and reviewing the information reported.

All States are required to complete and submit this report in accordance
with these instructions on behalf of the State agency administering the
Child Support Enforcement Program under title IV-D of the Social
Security Act.

**[Due Dates]{.underline}:** Form OCSE-396A must be submitted quarterly
within 30 days of the end of each fiscal quarter, i.e., no later than
January 30, April 30, July 30 and October 30, respectively.

**[Revisions]{.underline}**: If the State needs to change or correct its
submission of Form OCSE-396A after the original copy is submitted by the
due date indicated above, a revised report may be submitted. However, a
revised report will not be accepted after the expenditures reported in
the original submission have been used in the calculation of a quarterly
grant award^1^ - usually within 90 days after the end of the "current
quarter." Any additional claims or other adjustments that must be
reported after that time must be included as a "prior quarter
adjustment" on a subsequent expenditure report, within the limits of any
time constraints imposed by law or regulation. Revisions to the "next
quarter" estimates will be accepted only in extraordinary circumstances.
^1^(***Note***: An exception to this restriction will be made where a
delay in the reporting of an increasing adjustment will cause the claim
to be filed beyond the two-year filing deadline under Section 1132 of
the Social Security Act.)

**[Distribution]{.underline}:** *[If the State elects to submit a paper
copy]{.underline}*, a copy with original signatures must be sent to:

Administration for Children and Families

Office of Grants Management

Division of Mandatory Grants

Att'n: Child Support Enforcement

370 L'Enfant Promenade, SW - 6^th^ Floor East

Washington, DC 20447

An additional copy must be sent to the ACF Regional Grants Officer.

**[General Instructions]{.underline}:**

-   Round all entries to the nearest dollar; omit cents.

-   Enter the State name.

-   Enter the ending date of the current quarter and the ending date of
    the next quarter.

-   Check box to indicate whether this is a new report or a revision of
    a report previously submitted for the same period.

**PART 1: QUARTERLY REPORT OF EXPENDITURES and ESTIMATES**

**[Column Instructions:]{.underline}**

-   ***Expenditures (Cols. A, B, C & D)*.** Under the requirements of 45
    CFR 304.25(a), expenditures are actual payments made to vendors,
    service providers and contractors or for administrative, personnel,
    or other cost items. Include also indirect costs allocable to the
    quarter being reported in accordance with an approved cost
    allocation plan. To be allowable, all expenditures must be in
    accordance with the approved title IV-D State Plan and all
    applicable statutes, regulations and policies. For this reporting
    form the terms \"expenditure\" and \"cost\" are used
    interchangeably.

> Expenditure estimates are not acceptable in these columns.
> \"Advances\" of funds to another State agency, a local agency or a
> private entity are not considered expenditures for these purposes. The
> amounts reported in these columns must be actual, verifiable
> transactions supported by readily available accounting records and
> source documentation or an approved cost allocation plan, as
> applicable.
>
> Expenditures are considered made on the date the payment occurs,
> regardless of the date of receipt of the good or performance of the
> service. For State-administered programs, the date of this transaction
> by the State agency governs; for locally administered programs, the
> date of this transaction by the county, city or other local agency
> governs. Indirect costs are allocable in accordance with the cost
> allocation plan, and are considered to be "expended" in the quarter to
> which they are allocated.

-   ***Current Quarter Claims (Cols. A and B)***. Expenditures made in
    or allocable to the \"Current Quarter\" being reported.

-   ***Prior Quarter Adjustments (Col. C and D)***. Expenditures made in
    or allocable to a previous quarter but which were either unreported
    or incorrectly reported on an earlier report. This is a \"net\"
    amount, combining individual increasing and decreasing adjustments.
    *(Any adjustment reported in this column must be detailed and
    itemized into the separate increasing and decreasing components by
    completing Part 2 of this report.)*

-   ***Estimates (Col. E)***. In accordance with the provisions of
    Section 455(b)(1) of the Social Security Act, this is the amount of
    expenditures that the State anticipates will be made in the upcoming
    fiscal quarter (the \"Next Quarter\"). This estimate should be based
    on historical trends, including seasonal, economic or other
    variations, and should include any costs applicable to a prior
    quarter for which payments are expected to be made in the next
    quarter.

> For this Column, the amounts entered, where applicable, on Lines 1a
> through 7 should be the total amount of anticipated costs for each
> cost category, i.e., the sum of the Federal and State shares. The
> amount entered on Line 9 should be the anticipated Federal Share of
> Collections. The estimated \"Net Federal Share of Expenditures\"
> should be entered on Line 14 (Federal share only), and constitutes the
> State\'s request for Federal funds in that amount for the upcoming
> quarter. The estimated \"State Share of Expenditures\" entered on Line
> 15 (State share only) is the amount that the State is guaranteeing
> that it has or will have available to meet its share of program
> expenditures.

-   ***Total (Cols. A and C)***. All expenditures made for each cost
    item, including both Federal and State components.

-   ***Federal Share (Cols. B and D)***. The Federal portion of
    expenditures reported on Lines 1b through 7 (Columns A or C),
    calculated by using the 66 percent Federal financial participation
    (FFP) rate. (Prior quarter adjustments included in Column D on Line
    1b for laboratory costs for any quarter ending on or before
    September 30, 2006 remain eligible for Federal funding at the 90
    percent rate and should be calculated accordingly.)

**[Line-by-Line Instructions]{.underline}**

**SECTION A. EXPENDITURES**

**Line 1a. IV-D Administrative Expenditures Made Using Funds Received as
Incentive Payments.** Administrative expenditures made using annual
incentive payment funds. Each State is required to spend the funds it
received as incentive payments to carry out title IV-D program
activities. These expenditures are not eligible for Federal funding;
Columns B and D on this line should remain blank (equivalent of a 0
percent FFP rate).

-   *Expenditures made using these funds are exempt from the two-year
    claiming deadline under Section 1132 of the Social Security Act.
    Incentive payments remain available until completely expended.*

-   *\[This is a direct entry in Columns A and C. No entry in Columns
    B, D. No estimate entry required for Column E\]*

**Line 1b. IV-D Administrative Expenditures.** Expenditures for the
routine administration and operation costs of the Child Support
Enforcement Program.

> Include:

-   Expenditures made for fees charged for use of the Child Support
    Network (CSNet) and Pre-Offset services;

-   Prior quarter expenditures made for laboratory costs. (Prior quarter
    adjustments for expenditures for laboratory costs made on or before
    September 30, 2006, and reported in columns C and D of this line
    remain eligible for Federal funding at the 90 percent rate.
    Calculate the Federal share accordingly.)

-   FMS service fees retained by the IRS for Federal tax refund offset
    collections.

> Do Not Include:

-   Expenditures made using funds received as the State's annual
    incentive payments. These expenditures must be reported on Line 1a;

-   Expenditures for Non IV-D administrative costs reported on Line 1c;

-   Expenditures for the planning, design, development, implementation,
    enhancement or operation of a Statewide Child Support Enforcement
    System (CSES) reported on Line 4, 5 or 6.

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-   *[See \"Special Reporting Instruction for Lines 9 Through 13,"
    below]{.underline}.*

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-   *\[This is a direct entry in Columns A and C. Calculate Columns B
    and D as 66% of the total.\]*

**Line 1c. Non-IV-D Administrative Expenditures.** Expenditures for
administrative costs associated with limited activity, required by law,
in certain Non-IV-D cases.

Include only those amounts that can be identified as incurred directly
as a result of:

-   the submission to, and maintenance in, the State Case Registry of
    data with respect to each child support order established or
    modified in the State on or after October 1, 1998, in a Non-IV-D
    case;

-   the receipt in the State Disbursement Unit of Non-IV-D collections
    through income withholding for child support orders, initially
    issued in the State on or after January 1, 1994 (as included on Line
    2e of Form OCSE-34A) and the disbursement of these collections by
    the State Disbursement Unit; and

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-   the required reporting of financial and statistical information
    related to Non-IV-D cases to OCSE on this and other required Federal
    financial or statistical reports.

> Do not include expenditures for any other Non-IV-D case activity, such
> as enforcement or maintenance of case records.

-   **Note:** Non-IV-D cases are those for which there is no assignment
    of support rights to the State or where the State has not received
    an application for Title IV-D services.

-   *\[This is a direct entry in Columns A and C. Calculate Columns B
    and D as 66% of the total.\]*

> **Line 2a. Fees and Costs Recovered in Excess of Fees.** The total
> amount of income received by the State, used to offset administrative
> costs. Include:

-   Mandatory or optional fees collected from recipients of child
    support enforcement services;

-   Mandatory fees that the State has opted to absorb rather than
    collect from recipients;

-   Amounts offset from collections or received directly from either the
    custodial or non-custodial parent; and

-   Any collection fee the State has opted to charge for collection
    services for IV-D or non-IV-D cases that is not inconsistent with
    Federal law.

-   Fees for laboratory paternity testing.

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-   *\[This is a direct entry in Columns A and C. Calculate Columns B
    and D as 66% of the total. No estimate entry required for Column
    E.\]*

**Line 2b. Interest Earned and Other Program Income Received.** Other
income used to offset administrative costs.

> [Include]{.underline}:

-   Interest or investment income earned when child support collections,
    fees or other program income funds are deposited in interest-bearing
    accounts or used in other investment-type activities;

-   Undistributable child support collections reported as "abandoned
    property" on Line 9a of Form OCSE-34A, the \"Quarterly Report of
    Collections;\"

-   As a decreasing prior quarter adjustment, any former undistributed
    collection previously deemed "undistributable" and escheated by the
    State as "abandoned property" which can now be either distributed to
    the custodial parent or returned to the non custodial parent. This
    amount must also be reported on Line 3 of Form OCSE-34A.

-   Interest assessed in accordance with State law on delinquent support
    payments made by non-custodial parents when this interest is
    retained by the State and is not considered additional support owed
    by the non-custodial parent or forwarded to the custodial parent;

-   Any other income resulting from the operation of the program and not
    reported on Line 2a.

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-   *\[This is a direct entry in Columns A and C. Calculate Columns B
    and D as 66% of the total. No estimate entry required for Column
    E.\]*

**Line 3. Net Administrative Costs.** The net amount of Federal funding
being claimed for program administrative costs.

-   *\[Calculate as Lines 1a + 1b + 1c Less Lines 2a +2b.\]*

**Line 4. Automated Data Processing (ADP) Expenditures for System
Development Under the Terms of an Approved Advanced Planning Document
(APD).** Expenditures made in accordance with the terms of an approved
APD for the planning, design, development, implementation or enhancement
of an automated Statewide Child Support Enforcement System (CSES). No
expenditures may be claimed on this line unless approved under the APD
process found at 45 CFR Part 95 Subpart F.

[Do not include]{.underline}:

-   Operation and maintenance costs reported on Line 5;

-   ADP costs associated with the development, purchase or operation of
    non-CSES systems used in day-to-day office procedures, such as
    personnel, payroll, travel, etc. These are routine administrative
    costs reported on lines 1a, 1b or 1c, as appropriate.

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-   *\[This is a direct entry in Columns A, C and E. Calculate Columns B
    and D as 66% of the totals in Columns A and C.\]*

**Line 5. Automated Data Processing (ADP) Expenditures for System
Operation and Maintenance Under the Terms of an Approved Advanced
Planning Document (APD).** Expenditures made in accordance with the
terms of an approved APD for the operation or maintenance of an
automated Statewide Child Support Enforcement System (CSES). No
expenditures may be claimed on this line unless approved under the APD
process found at 45 CFR Part 95 Subpart F.

Do not include:

-   Planning, design, development, implementation or enhancement costs
    reported on Line 4;

-   ADP costs associated with the development, purchase or operation of
    non-CSES systems used in day-to-day office procedures, such as
    personnel, payroll, travel, etc. These are routine administrative
    costs reported on lines 1a, 1b or 1c, as appropriate.

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-   *\[This is a direct entry in Columns A, C and E. Calculate Columns B
    and D as 66% of the totals in Columns A and C.\]*

**Line 6. Automated Data Processing (ADP) Expenditures That Do Not
Require an Advanced Planning Document.** Expenditures made for the
planning, design, development, implementation, enhancement, operation or
maintenance of an automated Statewide Child Support Enforcement System
(CSES), for which an approved APD is no longer required. The approved
APD has been closed out by OCSE in accordance with Federal requirements.

Do not include**:**

-   ADP costs associated with operating non-CSES systems used in
    day-to-day office procedures, such as personnel, payroll, travel,
    etc. These are routine administrative costs reported on lines 1a, 1b
    or 1c, as appropriate.)

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-   *\[This is a direct entry in Columns A, C and E. Calculate Columns B
    and D as 66% of the totals in Columns A and C.\]*

**Line 7. Total Expenditures Claimed.** This is the total amount of
expenditures being reported and the portion being claimed for Federal
funding.

-   *\[Calculated as Sum of Lines 3 through 6.\]*

**SECTION B. INCENTIVE PAYMENTS / FEDERAL SHARE / FEES FOR SERVICE**

**Line 8. Estimated Incentive Payments.** Enter an amount equal to
approximately one-quarter of the State's estimate of its annual
incentive payment. *\[This is a direct entry in Column E.\]*

***[SPECIAL REPORTING INSTRUCTION for LINES 9 THROUGH 13]{.underline}***

> *Any amounts entered on Lines 9 through 13 will reduce the reported
> Net Federal Share of Expenditures and will also reduce a subsequent
> grant awarded to the State.*
>
> *Invoices are sent each quarter to the State Title IV-D agency for
> fees charged for services provided by the Office of Child Support
> Enforcement. The amount of each of those fees is reported on Lines 10,
> 11 and 12 of Column B, as applicable. By doing so, the State is
> reimbursing OCSE for the cost of the services provided; the fees will
> be subtracted from the Federal share of expenditures.*
>
> *Amounts offset by the IRS from Federal tax refunds of the
> non-custodial parent are forwarded to the State through the accounting
> services of HHS's Public Health Service (PHS) and are subsequently
> distributed by the State to the custodial parent. On occasion, the IRS
> determines that a portion of the amount offset must be returned to the
> non-custodial parent, and the IRS recoups this amount from the PHS.
> The State must then repay this amount to the PHS and may attempt to
> recoup the overpayment from either parent, in accordance with
> applicable State law and procedures and Federal policy. The amount
> being repaid by the State to the PHS is reported as an "Other Fee or
> Adjustment" on Line 13 of Column B. This line may also be used to
> report any other fee-for-service or other payment to the Federal
> government as may be needed.*
>
> *Fees paid by a State for its use of the Child Support Enforcement
> Network (CSENet) or for Pre-Offset Notice services, respectively, and
> reported on Lines 11 and 12, are considered to be routine title IV-D
> administrative expenditures and should also be included on Line 1b of
> this report as an \"Administrative Costs: IV-D." Fees paid by a State
> for its use of the Federal Parent Locator Service (FPLS) and
> repayments made by the State to PHS (see above), and reported on Lines
> 10 and 13, are not considered administrative expenditures and must not
> be included on any other line of this report. (If the State elected to
> make these repayments by check, no repayment amount is included on
> Line 13. See instructions for Line 13, below.) (FPLS fees are paid
> solely with State funds and are not eligible for Federal funding
> (Section 453(e)(2) of the Social Security Act).*

**Line 9. Federal Share of Title IV-A Collections.** The portion of
child support collections used to reimburse the Federal government for
its share of past assistance payments under title IV-A of the Social
Security Act.

-   *This is a direct entry in Column B, carried forward from Form
    OCSE-34A, Line 10b, Col. G\]*

**Line 10. Fees for the Use of the Federal Parent Locator Service
(FPLS).** The quarterly fee charged to the State by OCSE for its use of
the FPLS. (Report the [total]{.underline} amount of this fee in Column
B. See Special Instruction above.)

-   *\[This is a direct entry in Column B, carried from a quarterly
    invoice sent by OCSE.\]*

**Line 11. Fees for the Use of the Child Support Enforcement Network
(CSENet).** The quarterly fee charged to the State by OCSE for its use
of CSENet. (Report the [total]{.underline} amount of this fee in Column
B. See Special Instruction above.)

-   *\[This is a direct entry in Column B, carried from a quarterly
    invoice sent by OCSE.\]*

**Line 12. Fees for Printing/Processing Pre-Offset Notices for the
Federal Tax Refund Offset Program.** The annual fee charged to the State
by OCSE for the printing and processing of OCSE-issued pre-offset
notices for the Federal tax refund offset program. (Report the
[total]{.underline} amount of this fee in Column B. See Special
Instruction above.)

-   *\[This is a direct entry in Column B, carried from a quarterly
    invoice sent by OCSE.\]*

**Line 13. Other Fees or Adjustments.** Enter on this line any other
fees that may be imposed to reduce the Federal share. Also enter the
amount of a repayment to the Public Health Service for IRS tax offset
collections forwarded to the State and later returned to the IRS. (If
the State elected to make these repayments by check, no repayment amount
should be included on this line.) This line may be completed as needed.
Any entry on this line should be accompanied by an attachment providing
a thorough explanation. (***Note***: If any entry on this line is for
the repayment of collections received from the offset of Federal income
tax refunds, such repayment [mus]{.underline}t also be included as a
reduction to the amount reported on Line 2a of Form OCSE-34A.)

-   *\[This is a direct entry in Column B, carried from a quarterly
    invoice sent by OCSE.\]*

**Line 14. Net Federal Share of Expenditures.** The net amount of
Federal funding being claimed by the State, as reduced by the Federal
share of collections, fees and repayments.

-   *\[Cols. B and D: Calculated as Line 7 Minus Sum of Lines 9 through
    13.\]*

-   *\[Col. E: Calculated as (Line 7 x 66%) Minus Line 9\]*

**Line 15. State Share of Expenditures.** The State share of
expenditures to operate and administer the child support enforcement
program under title IV-D.

-   *\[Cols. B and D: Calculated as Line 7 (Cols. A and C) Minus Line 14
    (Cols. B and D)\]*

-   *\[Col. E: Calculated as Line 7 Minus Line 14\]*

**[Signatures]{.underline}**: This report must be signed and dated at
the end of Part 1 by the State Title IV-D Director, or other State
official responsible for the financial administration of the child
support enforcement program. Although under Federal requirements only a
single signature is necessary, space is also provided for a second
signature as may be required by State law, regulation or policy. Any
individual(s) signing this report are certifying to the correctness and
accuracy of the information here and on accompanying documents and that
any amount shown as the State share of expenditures on Line 15 is or
will be available to meet the non-Federal share of expenditures for the
quarter indicated as prescribed by law.

**PART 2: ITEMIZED PRIOR QUARTER EXPENDITURE ADJUSTMENTS**

This part must be submitted as a supplemental supporting document
whenever a \"Prior Quarter Adjustment\" (Columns B and C) is reported in
Part 1 of this form. A net adjustment reported in Part 1 may be
comprised of one or more individual increasing or decreasing components.
Each of those components is to be itemized and shown separately on Part
2. (This requirement remains in effect even when combined increasing and
decreasing adjustments produce a net result of zero dollars for the
prior quarter adjustments reported in Part 1.)

**[General Instructions]{.underline}:**

-   Enter the State name.

-   Enter the ending date of the current quarter from Part 1.

-   Check the box to indicate whether this is a new report or a revision
    to a report previously submitted.

**[Definitions]{.underline}**:

**Increasing Adjustments (Section A):** Each increasing component of the
net adjustments included in Part 1. (***Note***: In accordance with
Section 1132 of the Social Security Act and 45 CFR 95, Subpart A, claims
for increasing adjustments are unallowable unless submitted within two
years of the original expenditure date, or otherwise meet one of the
"exception" criteria found in the statute and regulations.)

**Decreasing Adjustments (Section B):** Each decreasing component of the
net adjustments included in Part 1. The decreasing adjustments should be
entered as positive numbers on this form.

**Total Adjustment (Column A):** The combined Federal/State total of
each adjustment.

**Federal share of adjustment (Column B):** Determine the Federal share
of each adjustment by multiplying the Total Adjustment in Column A by
the FFP rate applicable to the funding category of this particular
adjustment during the quarter in which it was made.

**Funding Category (Column C):** Indicate the funding category of the
component(s) on each line as described at the bottom of the form.

**Applicable to Fiscal Quarter Ended (Column D):** Indicate the ending
date (Month and Year) applicable to the adjustment being reported.

**Federal Audit Number (if applicable) / Other comments, explanations
(Column E):** If the adjustment was the result of recommendations
contained in an audit report, indicate the assigned Federal audit
control number. Use this space for any other comments relevant to the
adjustment, including an explanation for any increasing adjustment
submitted beyond the two year claiming deadline.

**Total Increasing Adjustments (Section A) / Total Decreasing
Adjustments (Section B):** The last line in each section should be the
total of the entries for that section. If additional space is needed,
use additional copies of this form.

**Net Adjustments.** For both Columns A and B, subtract the Total
Decreasing Adjustments in Section B from the Total Increasing
Adjustments in Section A. The amounts entered in Columns A and B on this
line must be identical to the amounts entered in Columns C and D on Line
7 of Part 1 of this form.

**Individual Line Entries.** Each adjustment must be itemized into its
applicable increasing and decreasing components and reported separately
in the proper section of this part. Where a single adjustment
encompasses several fiscal quarters, the portion applicable to each
quarter must be itemized and reported on a separate line. If additional
space is needed, use as many additional pages as necessary to properly
report these items, annotating each sheet as appropriate (sheet 2 of 3,
etc).

**Submittal and Revisions.** Part 2 of Form OCSE-396A is an attachment
to Part 1 and, when needed to report prior quarter adjustments, should
be submitted whenever an initial or revised Part 1 is submitted. A
revision to this Part is subject to the same restrictions, procedures
and requirements as stated for Part 1.