+--------------------+-------------------------------------------------+
| **6 HOURS**        | **MODULE 3: DISTRIBUTION**                      |
|                    |                                                 |
|                    | The learning objective for this module is:      |
|                    | given a participative lecture, and completion   |
|                    | of numerous examples, participants will explain |
|                    | how to distribute child support collections     |
|                    | accurately, according to the new distribution   |
|                    | requirements.                                   |
|                    |                                                 |
|                    | **TRAINING MATERIAL**                           |
|                    |                                                 |
|                    | > Handout/Transparencies 3-1 thru 3-80          |
+--------------------+-------------------------------------------------+
| **1. Display       | **1. Distribution Principles \--Distribution    |
| Distribution       | Under PRWORA**                                  |
| Principles Module  |                                                 |
| Ha                 |                                                 |
| ndout/Transparency |                                                 |
| (H/T) 3-1**        |                                                 |
+--------------------+-------------------------------------------------+
| **2. Display       | **2. Distribution Under PRWORA**                |
| Distribution Under |                                                 |
| PRWORA**           | Under pre-PRWORA Federal distribution law, we   |
|                    | were only concerned with two types of cases:    |
| **H/T 3-2**        | assistance cases and non-assistance cases. We   |
|                    | only dealt with these two case types because    |
|                    | whenever a family went onto assistance, the     |
|                    | family assigned its right to all support        |
|                    | accruing up until the family left assistance.   |
|                    | Also, each time the family went back onto       |
|                    | assistance, everything was assigned.            |
|                    |                                                 |
|                    | > **A. The new Federal distribution law makes a |
|                    | > distinction between distribution in           |
|                    | > [three]{.underline} types of cases:**         |
|                    | >                                               |
|                    | > **1. Never Assistance Cases;**                |
|                    | >                                               |
|                    | > **2. Current Assistance Cases; and**          |
|                    | >                                               |
|                    | > **3. Former Assistance Cases.**               |
|                    |                                                 |
|                    | Now that you have some familiarity with the     |
|                    | changes in the assignment of support rights,    |
|                    | you should see the importance of making the     |
|                    | distinction between these three case types.     |
+--------------------+-------------------------------------------------+
| **3. Display       | **3. Distribution Under PRWORA (Date Assignment |
| Distribution Under | was Executed and Date of Distribution)**        |
| PRWORA (Date       |                                                 |
| Assignment was     | > A. Before determining how a child support     |
| Executed and Date  | > payment should be distributed, you must not   |
| of Distribution)   | > only know the current case type of the case   |
| H/T 3-3**          | > to which you will be applying the payment,    |
|                    | > but you must also know:                       |
|                    | >                                               |
|                    | > **1. the dates any assignments were executed; |
|                    | > AND**                                         |
|                    | >                                               |
|                    | > **2. the rules to apply depending on the date |
|                    | > in which you are going to distribute the      |
|                    | > payment to the case.**                        |
|                    |                                                 |
|                    | This information is important, due to the way   |
|                    | in which assignments will change as the new     |
|                    | Federal requirements are phased-in.             |
|                    |                                                 |
|                    | During this module you will learn about how     |
|                    | child support payments will be applied during   |
|                    | different time periods\-- depending on case     |
|                    | type and depending on the different assignments |
|                    | which exist on the case.                        |
+--------------------+-------------------------------------------------+
| **4. Display       | **4. Distribution in Never Assistance Cases**   |
| Distribution in    |                                                 |
| Never Assistance   | The same rule applies across all time periods:  |
| Cases H/T 3-4**    | **in never assistance cases, all collections    |
|                    | are disbursed to the family.**                  |
|                    |                                                 |
|                    | This is the same rule as we have applied in the |
|                    | past to what we called non-assistance cases.    |
|                    | Nothing has changed with respect to             |
|                    | distribution in these types of cases.           |
+--------------------+-------------------------------------------------+
| **5. Display       | **5. Distribution in Current Assistance Cases** |
| Distribution in    |                                                 |
| Current Cases**    | > **A. Effective October 1, 1996 (the date the  |
|                    | > new Federal distribution statute went into    |
| **H/T 3-5**        | > effect), child support must be distributed in |
|                    | > the following order in all current assistance |
|                    | > cases:**                                      |
|                    | >                                               |
|                    | > **1. first pay to the Federal Government its  |
|                    | > share (determined by the Federal medical      |
|                    | > assistance percentage) of the entire          |
|                    | > collection (not to exceed URA);**             |
|                    | >                                               |
|                    | > **2. second, retain, or pay to the family,    |
|                    | > the State share of the collection; and**      |
|                    | >                                               |
|                    | > **3. third, pay collections exceeding the     |
|                    | > total cumulative amount of unreimbursed       |
|                    | > assistance to the family.**                   |
|                    |                                                 |
|                    | These rules apply to all current assistance     |
|                    | cases October 1, 1996 and later.                |
|                    |                                                 |
|                    | The key change in the way support is            |
|                    | distributed in current assistance cases is the  |
|                    | requirement to pay the Federal share off the    |
|                    | top of the total collection. The Federal        |
|                    | Government must get their share before the      |
|                    | State does what it chooses with the State share |
|                    | of the collection.                              |
|                    |                                                 |
|                    | Let's discuss the new features in current       |
|                    | assistance cases that have resulted from this   |
|                    | change in Federal distribution law.             |
+--------------------+-------------------------------------------------+
| **6. Display New   | **6. New Features in Current Assistance Cases** |
| Features in        |                                                 |
| Current Assistance | First, prior Federal law required the States to |
| Cases**            | pay both the \$50 passthrough and excess over   |
|                    | grant payments, sometimes called (b)(3)         |
| **H/T 3-6**        | payments, to families while the family received |
|                    | assistance. The Federal Government shared in    |
|                    | the cost of such payments.                      |
|                    |                                                 |
|                    | > **A. Now, there are no Federal mandates       |
|                    | > requiring:**                                  |
|                    | >                                               |
|                    | > **1. \$50 pass-through payment; and**         |
|                    | >                                               |
|                    | > **2. payment of excess current support over   |
|                    | > grant amount (former 45 CFR 302.51(b)(3))**   |
|                    |                                                 |
|                    | Under the new law, the Federal Government       |
|                    | ceased to participate in these payments         |
|                    | effective October 1, 1996. Any such payments    |
|                    | made by the States must now come entirely out   |
|                    | of the State share of collections.              |
|                    |                                                 |
|                    | Some States have already stopped the payment of |
|                    | one or both of these payments. Decisions to     |
|                    | continue or discontinue these payments in your  |
|                    | State are policy decisions you must make. We    |
|                    | will cover policy decisions in more detail      |
|                    | later.                                          |
+--------------------+-------------------------------------------------+
| **7. Display       | **7. Distribution in Former Assistance Cases**  |
| Distribution in    |                                                 |
| Former Assistance  | > **A. Distribution in Former Assistance Cases  |
| Cases H/T 3-7**    | > is time-Sensitive for Plan A:**               |
|                    | >                                               |
|                    | > **1. October 1, 1997 - September 30, 2000;    |
|                    | > and**                                         |
|                    | >                                               |
|                    | > **2. October 1, 2000 and later**              |
|                    | >                                               |
|                    | > **B. New distribution in Former Assistance    |
|                    | > cases under Plan B begins October 1, 1998.**  |
|                    |                                                 |
|                    | Because of the changes to the assignment of     |
|                    | rights, distribution under Plan A is            |
|                    | time-sensitive: how you apply payments in       |
|                    | former assistance cases will depend on whether  |
|                    | you are distributing money prior to, or after,  |
|                    | October 1, 2000.                                |
|                    |                                                 |
|                    | **In Plan B States, all of the distribution     |
|                    | changes will take place at one time: October 1, |
|                    | 1998 and later.**                               |
|                    |                                                 |
|                    | **In this module, we will cover changes to      |
|                    | distribution under "Plan A". Distribution in    |
|                    | former assistance cases under "Plan B" will     |
|                    | work the same way as post-September 2000        |
|                    | distribution under Plan A.**                    |
+--------------------+-------------------------------------------------+
| **8. Display       | **8. XLV. Distribution of Collections 10/1/97   |
| Distribution of    | through 9/30/2000 (Plan A)**                    |
| Collections        |                                                 |
| 10/1/97 through    | > **A. In a former assistance case during this  |
| 9/30/2000**        | > time period, child support collections must   |
|                    | > be applied to:**                              |
| **H/T 3-8**        | >                                               |
|                    | > **1. current support;**                       |
|                    | >                                               |
|                    | > **2. never-assigned arrears; and**            |
|                    | >                                               |
|                    | > **3. any remaining arrearages (temporarily    |
|                    | > assigned, permanently assigned, unassigned)   |
|                    | > in any order the State chooses.**             |
|                    |                                                 |
|                    | In some States, post-assistance                 |
|                    | (Never-Assigned) arrears were not paid first    |
|                    | once the family terminated from assistance.     |
|                    | Prior to PRWORA, the Federal law allowed States |
|                    | to determine in which order to pay all arrears  |
|                    | after assistance terminated.                    |
|                    |                                                 |
|                    | Under the new Federal law, arrears which accrue |
|                    | after the assistance period must be paid to the |
|                    | family before collections may be applied to any |
|                    | other arrearage. This requirement took effect   |
|                    | on October 1, 1997 (except for those States who |
|                    | are electing Plan B, in which case it takes     |
|                    | effect October 1, 1998).                        |
+--------------------+-------------------------------------------------+
| **9. Display H/T   | **9. Example 2(a): Distribution in Former       |
| 3-9 Example 2(a):  | Assistance Cases 10/1/97 through 9/30/2000**    |
| Distribution in    |                                                 |
| Former Assistance  | In this example, the case is a former           |
| Cases 10-1/97      | assistance case. The monthly obligation is      |
| through            | \$100 per month. In the first month, no payment |
| 9/30/2000.**       | was received. The arrears at the end of the     |
|                    | month are \$500 Never-Assigned arrears, \$200   |
| **(First Month)**  | Permanently assigned arrears, and \$700         |
|                    | Temporarily assigned arrears. The unreimbursed  |
| **Trainer could go | assistance is \$1300.                           |
| through slides     |                                                 |
| with participants, | You'll see in your notebooks that we have       |
| first providing a  | provided you with a duplicate of this slide. As |
| layout of how the  | we progress through the example, you may want   |
| table is           | to write-in what we do during the subsequent    |
| constructed:       | months in the blanks provided.                  |
| identify how the   |                                                 |
| columns are        | > **QUESTION:** In the second month, a \$500    |
| labeled and the    | > payment was received. Since it is after       |
| distinction in the | > 10/1/1997 and before 10/1/2000, **How would   |
| table between      | > the payment be distributed?**                 |
| distribution of    |                                                 |
| the payment, and   |                                                 |
| cumulative         |                                                 |
| balances at the    |                                                 |
| end of the month.  |                                                 |
| Explain that, for  |                                                 |
| each example, we   |                                                 |
| will determine the |                                                 |
| application of a   |                                                 |
| payment during     |                                                 |
| several months,    |                                                 |
| taking into        |                                                 |
| consideration:     |                                                 |
| case type, payment |                                                 |
| type, and the time |                                                 |
| period in which we |                                                 |
| are doing the      |                                                 |
| distribution.      |                                                 |
| [Text to set up    |                                                 |
| the next slide is  |                                                 |
| provided at the    |                                                 |
| bottom of the      |                                                 |
| preceding          |                                                 |
| sli                |                                                 |
| de.]{.underline}** |                                                 |
+--------------------+-------------------------------------------------+
| **10. Display      | **10. Example 2(a): Distribution in Former      |
| H/T3-10 Example    | Assistance Cases 10/1/97 through 9/30/2000**    |
| 2(a) Second        |                                                 |
| Month**            | > **ANSWER: First we would apply \$100 to       |
|                    | > current support. Then we would apply the      |
| **Modify these     | > remaining \$400 to Never-Assigned arrears.**  |
| rules based on     |                                                 |
| options chosen     | Let's review the distribution ordering rules    |
| within the State.  | you will apply in former assistance cases       |
| Both the excel     | during this time period: first apply support to |
| slide and the text | current, second to Never-Assigned arrears,      |
| accompanying the   | third (in this State option) to permanently     |
| slide may need to  | assigned arrears, and fourth to temporarily     |
| be modified. Write | assigned arrears.                               |
| ordering rules on  |                                                 |
| a flipchart, or on | Arrears at the end of the month are: \$100      |
| an overhead        | Never-Assigned arrears, \$200 Permanently       |
| projector          | assigned arrears, and \$700 Temporarily         |
| transparency.**    | assigned arrears. The unreimbursed assistance   |
|                    | remains \$1300 since we did not apply any of    |
| **Trainer** could  | the payment to assigned arrears..               |
| go through columns |                                                 |
| with participants, | > **QUESTION:** In the third month, a \$500     |
| pointing to each   | > payment was received **How would the payment  |
| column as you go.  | > be distributed?**                             |
+--------------------+-------------------------------------------------+
| **11. Display H/T  | **11. Example 2(a): Distribution in Former      |
| 3-11 Example 2(a)  | Assistance Cases 10/1/97 through 9/30/2000**    |
| Third Month**      |                                                 |
|                    | > **ANSWER: First we would apply \$100 to       |
| Now let's discuss  | > current support. Then we would apply \$100 to |
| distribution in    | > pay off the remaining Never-Assigned arrears. |
| former assistance  | > Then we would apply \$200 to the Permanently  |
| cases after        | > Assigned arrears (paying them off), then the  |
| September 30,      | > remaining \$100 to temporarily assigned       |
| 2000.              | > arrears (in this State option).**             |
|                    |                                                 |
|                    | The arrears at the end of the month are: \$0    |
|                    | Never-Assigned arrears, \$0 Permanently         |
|                    | assigned arrears, and \$600 Temporarily         |
|                    | assigned arrears. The unreimbursed assistance   |
|                    | is now \$1000 since we applied \$300 of the     |
|                    | payment to assigned arrears.                    |
|                    |                                                 |
|                    | Are there any questions about how payments are  |
|                    | applied to former assistance cases during this  |
|                    | time period? We'll go through additional        |
|                    | examples of this type of distribution, later in |
|                    | the module.                                     |
+--------------------+-------------------------------------------------+
| **12. Display      | **12. Distribution of Collections 10/1/2000 and |
| Distribution of    | Later**                                         |
| Collections        |                                                 |
| 10/1/2000 and      | > **A. In former assistance cases after         |
| Later H/T 3-12**   | > September 30, 2000, child support must be     |
|                    | > paid in the following order:**                |
|                    | >                                               |
|                    | > **1 to current support;**                     |
|                    | >                                               |
|                    | > **2 to never-assigned arrears;**              |
|                    | >                                               |
|                    | > **3 to unassigned pre-assistance arrears      |
|                    | > and/or to conditionally assigned arrears in   |
|                    | > any order the State chooses;**                |
|                    | >                                               |
|                    | > **4 to permanently assigned arrears; and,**   |
|                    | >                                               |
|                    | > **5 to unassigned during assistance           |
|                    | > arrears.**                                    |
|                    |                                                 |
|                    | Because we are talking about non-IRS            |
|                    | collections, the only assigned support which    |
|                    | may be retained by the State is that which is   |
|                    | applied to permanently assigned arrears.        |
+--------------------+-------------------------------------------------+
| **13. Display H/T  | **13. Example 2(b): Distribution in Former      |
| 3-13 Example 2(b)  | Assistance Cases Post 9/30/2000**               |
| Distribution in    |                                                 |
| Former Assistance  | Again, in this example, the case is a former    |
| Cases Post         | assistance case. The monthly obligation is      |
| 9/30/2000 First    | \$100 per month.                                |
| Month**            |                                                 |
|                    | In the first month, no payment was received.    |
| **Trainer** can go | The arrears at the end of the month are \$500   |
| through columns    | Never-Assigned arrears, \$200 Permanently       |
| with participants  | assigned arrears, and \$700 Conditionally       |
| using the laser    | assigned arrears. The unreimbursed assistance   |
| pointer.           | is \$1300.                                      |
|                    |                                                 |
|                    | As you can see, we no longer have temporarily   |
|                    | assigned arrears. That is because (**quiz the   |
|                    | participants**)? Answer: the family is no       |
|                    | longer receiving assistance AND the date is     |
|                    | later than September 30, 2000..                 |
|                    |                                                 |
|                    | > **QUESTION:** In the second month, a \$500    |
|                    | > payment was received and it is after          |
|                    | > 10/1/2000, **How would the payment be         |
|                    | > distributed?**                                |
+--------------------+-------------------------------------------------+
| **14. Display H/T  | **14. Example 2(b): Distribution in Former      |
| 3-14 Example 2(b)  | Assistance Cases Post 9/30/2000**               |
| Second Month**     |                                                 |
|                    | > **ANSWER: First we would apply \$100 to       |
| **Trainer** can go | > current support. Then we would apply the      |
| through columns    | > remaining \$400 to Never-Assigned arrears. As |
| with participants. | > you can see, the results are the same as in   |
|                    | > the prior example because we haven't          |
|                    | > exhausted Never-Assigned arrears yet.**       |
|                    |                                                 |
|                    | Again, let's review the distribution ordering   |
|                    | rules you will apply in former assistance cases |
|                    | after September 30, 2000: first to current,     |
|                    | second to Never-Assigned arrears, third to      |
|                    | conditionally assigned and/or unassigned        |
|                    | pre-assistance arrears, and fourth to           |
|                    | permanently assigned arrears, and finally, to   |
|                    | unassigned during assistance arrears.           |
|                    |                                                 |
|                    | In this example, the arrears at the end of the  |
|                    | month are: \$100 Never-Assigned arrears, \$200  |
|                    | Permanently assigned arrears, and \$700         |
|                    | Conditionally assigned arrears. The             |
|                    | unreimbursed assistance remains \$1300 since we |
|                    | did not apply any of the payment to Permanently |
|                    | assigned arrears.                               |
|                    |                                                 |
|                    | > **QUESTION:** In the third month, a \$500     |
|                    | > payment was received **Now how would the      |
|                    | > payment be distributed?**                     |
+--------------------+-------------------------------------------------+
| **15. Display H/T  | **15. Example 2(b): Distribution in Former      |
| 3-15 Example 2(b)  | Assistance Cases Post 9/30/2000**               |
| Third Month**      |                                                 |
|                    | > **ANSWER: First we would apply \$100 to       |
| Are there any      | > current support. Then we would apply \$100 to |
| questions about    | > pay off the remaining Never-Assigned arrears. |
| how non-IRS child  | > Then we would apply the remaining \$300 to    |
| support payments   | > [conditionally]{.underline} assigned arrears. |
| are applied in     | > The entire payment would be disbursed to the  |
| former assistance  | > family this time.**                           |
| cases after        |                                                 |
| September 30,      | The arrears at the end of the month are: \$0    |
| 2000?              | Never-Assigned arrears, \$200 Permanently       |
|                    | assigned arrears, and \$400 Conditionally       |
|                    | assigned arrears. The unreimbursed assistance   |
|                    | is still \$1300 because we didn't apply any of  |
|                    | the payment to permanently assigned arrears.    |
+--------------------+-------------------------------------------------+
| **16. Display      | **16. Distribution of IRS Tax Offset            |
| Distribution of    | Collections 10/1/2000 and Later**               |
| IRS Tax Offset     |                                                 |
| Collections        | Effective 10/1/2000, all IRS intercept payments |
| 10/1/2000 and      | must be first applied to any **assigned         |
| Later**            | arrears** in former assistance cases.           |
|                    |                                                 |
| **H/T 3-16**       | > A. Assigned arrears effective October 1, 2000 |
|                    | > are both permanently assigned arrears and     |
|                    | > conditionally assigned arrears (and temporary |
|                    | > assigned arrears in current assistance        |
|                    | > cases). IRS tax offset collections may be     |
|                    | > applied, in any order the State chooses, to   |
|                    | > any of these arrearages, and must be retained |
|                    | > by the State up to the amount of unreimbursed |
|                    | > assistance with reimbursement to the Federal  |
|                    | > Government, based on FMAP.                    |
|                    | >                                               |
|                    | > B. IRS tax offset collections which exceed    |
|                    | > the amount of unreimbursed assistance or the  |
|                    | > amount of the assigned arrears (whichever is  |
|                    | > less), must be disbursed to the family.       |
|                    |                                                 |
|                    | **IRS tax offset collections can never be       |
|                    | applied to current support obligations.**       |
|                    |                                                 |
|                    | **NOTE:** Under PRWORA, monies collected by     |
|                    | State tax offset or other State offsets must be |
|                    | applied under the NON-IRS distribution rules.   |
|                    | The only collections which can be applied to    |
|                    | arrears first (when current support is owed on  |
|                    | a case) ARE IRS Federal tax offset collections. |
+--------------------+-------------------------------------------------+
| **17. Display H/T  | **17. Example 2(c): Distribution of IRS Tax     |
| 3-17 Example 2(c): | Offset Collections in Former Assistance Cases   |
| Distribution of    | Post 9/30/2000**                                |
| IRS Tax Offset     |                                                 |
| Collections in     | Let's take a look at a third version of our     |
| Former Assistance  | example, this time applying an IRS tax offset   |
| Cases Post         | collections after September 30, 2000.           |
| 9/30/2000 (First   |                                                 |
| Month)**           | Again, in this example, the case is a former    |
|                    | assistance case. Support accrues under the      |
|                    | support order at \$100 per month.               |
|                    |                                                 |
|                    | In the first month, no payment was received.    |
|                    | The arrears are the same at the end of the      |
|                    | month as in the last example: \$500             |
|                    | Never-Assigned arrears, \$200 Permanently       |
|                    | assigned arrears, and \$700 Conditionally       |
|                    | assigned arrears. The unreimbursed assistance   |
|                    | is \$1300.                                      |
+--------------------+-------------------------------------------------+
| **18. Display H/T  | **18. Example 2(c): Distribution of IRS Tax     |
| 3-18 Example 2(c)  | Offset Collections in Former Assistance Cases   |
| Second Month**     | Post 9/30/2000**                                |
|                    |                                                 |
| **Trainer** can go | In the second month, a Non-IRS \$500 payment    |
| through the        | was received. The payment is applied the same   |
| columns with the   | as in the last example: First we would apply    |
| participants,      | \$100 to current support. Then we would apply   |
| using the laser    | the remaining \$400 to Never-Assigned arrears.  |
| pointer.           |                                                 |
|                    | Again, the arrears at the end of the month are: |
|                    | \$100 Never-Assigned arrears, \$200 Permanently |
|                    | assigned arrears, and \$700 Conditionally       |
|                    | assigned arrears. The unreimbursed assistance   |
|                    | remains \$1300..                                |
|                    |                                                 |
|                    | > **QUESTION:** In the third month, a \$500     |
|                    | > payment was received. This time the payment   |
|                    | > is an IRS intercept collection, **Now how     |
|                    | > would the payment be distributed?**           |
+--------------------+-------------------------------------------------+
| **19. Display H/T  | **19. Example 2(c): Distribution of IRS Tax     |
| 3-19 Example 2(c)  | Offset Collection in Former Assistance Cases    |
| Third Month**      | Post 9/30/2000**                                |
|                    |                                                 |
| .                  | > **ANSWER: In this example, (in this state     |
|                    | > option) we would apply the first \$200 of the |
| Are there any      | > IRS payment to permanently assigned arrears   |
| questions at this  | > (paying them in full) then the remaining      |
| time? **(break     | > \$300 to Conditionally assigned arrears (in   |
| here)**            | > this State option). The State would retain    |
|                    | > the full \$500 since URA is equal to or       |
|                    | > greater than \$500.**                         |
|                    |                                                 |
|                    | Let's review the order of distribution of IRS   |
|                    | intercepts after October 1, 2000. In former     |
|                    | assistance cases IRS payments must first be     |
|                    | applied to Assigned Arrears (Permanent and      |
|                    | Conditional\--State option as to which is       |
|                    | first) and then to Never-Assigned and           |
|                    | Unassigned arrears.                             |
|                    |                                                 |
|                    | The arrears at the end of the month would be:   |
|                    | \$200 Never-Assigned arrears (remember that an  |
|                    | additional \$100 accrued here since we did not  |
|                    | receive any payments during the month which     |
|                    | could be applied to current support), \$0       |
|                    | Permanently assigned arrears, and \$400         |
|                    | Conditionally assigned arrears. The             |
|                    | unreimbursed assistance would be reduced to     |
|                    | \$800 since the State retained the entire \$500 |
|                    | payment. That concludes the material we will    |
|                    | cover on the changes to distribution. We will   |
|                    | follow this segment with additional examples of |
|                    | how distribution will work under PRWORA         |
+--------------------+-------------------------------------------------+
| **20. Display      | **20. Distribution Drills - Applying the        |
| Distribution       | Principles**                                    |
| Drills H/T 3-20**  |                                                 |
+--------------------+-------------------------------------------------+
| **21. Display H/T  | **21. Distribution While a Family Moves On and  |
| 3-21 Distribution  | Off Assistance\--Rule 1**                       |
| While a Family     |                                                 |
| Moves On and Off   | Before we begin applying the new distribution   |
| Assistance\--Rule  | principles in a variety of case scenarios,      |
| 1**                | let's review some standard rules that we should |
|                    | apply whenever it is necessary to determine the |
|                    | distribution of a particular payment.           |
|                    |                                                 |
|                    | Before you can properly apply monies to a case, |
|                    | you must apply the following Four rules.        |
|                    |                                                 |
|                    | **First, determine if the case is never         |
|                    | assistance, current assistance, or former       |
|                    | assistance.** This is important because, as we  |
|                    | learned in the prior module, different ordering |
|                    | rules apply based on the status of the case at  |
|                    | the time of payment application.                |
|                    |                                                 |
|                    | Let's review:                                   |
|                    |                                                 |
|                    | In never-assistance cases?                      |
|                    |                                                 |
|                    | **All collections are disbursed to the          |
|                    | family.**                                       |
|                    |                                                 |
|                    | In current assistance cases?                    |
|                    |                                                 |
|                    | **Federal Government receives its share of the  |
|                    | entire collection, the State retains or         |
|                    | disburses to the family the State share of the  |
|                    | collection, excess over unreimbursed assistance |
|                    | goes to the family.**                           |
|                    |                                                 |
|                    | In former assistance cases?                     |
|                    |                                                 |
|                    | **[10/1/97 - 9/30/2000]{.underline}: current,   |
|                    | never-assigned, (THEN unassigned, permanently   |
|                    | assigned, and/or temporarily assigned IN ANY    |
|                    | ORDER);**                                       |
|                    |                                                 |
|                    | **[Post-9/30/2000]{.underline}: current,        |
|                    | never-assigned, unassigned, conditionally       |
|                    | assigned, permanently assigned.**               |
+--------------------+-------------------------------------------------+
| **22. Display H/T  | **22. Distribution While a Family Moves On and  |
| 3-22 Distribution  | Off Assistance\--Rule 2**                       |
| While a Family     |                                                 |
| Moves On and Off   | The **second** piece of information you need to |
| Assistance\--Rule  | know when determining the distribution of a     |
| 2**                | payment, is the **payment type** of the payment |
|                    | in question.                                    |
|                    |                                                 |
|                    | Is the payment you are distributing an IRS tax  |
|                    | offset collection or a non-IRS tax offset       |
|                    | payment?                                        |
|                    |                                                 |
|                    | Remember that different rules apply to the      |
|                    | application of IRS tax offset collections. IRS  |
|                    | tax offset collections are still applied to     |
|                    | assigned arrears first, as they were            |
|                    | pre-PRWORA, however now there are more          |
|                    | varieties of assigned arrears to which the      |
|                    | payment may be applied.                         |
|                    |                                                 |
|                    | Let's review how IRS tax offset collections     |
|                    | will be applied:                                |
|                    |                                                 |
|                    | October 1, 1997 - September 30, 2000? **Apply   |
|                    | to permanently assigned arrears, temporarily    |
|                    | assigned arrears, never assigned and unassigned |
|                    | arrears. Never to current support.**            |
|                    |                                                 |
|                    | October 1, 2000 and later? **Apply to           |
|                    | permanently assigned arrears,                   |
|                    | temporarily/conditionally assigned arrears,     |
|                    | never assigned/unassigned arrears. Never to     |
|                    | current support**                               |
+--------------------+-------------------------------------------------+
| **23. Display H/T  | **23. Distribution While a Family Moves On and  |
| 3-23 Distribution  | Off Assistance\--Rule 3**                       |
| While a Family     |                                                 |
| Moves On and Off   | The **third** piece of information you need to  |
| Assistance\--Rule  | know when determining the distribution of a     |
| 3**                | payment, is **today's date** or the date in     |
|                    | which you will apply the payment.               |
|                    |                                                 |
|                    | The date, and whether you are a Plan A or Plan  |
|                    | B State, will determine how you will apply the  |
|                    | payment. Different distribution ordering rules  |
|                    | will apply based on this information.           |
|                    |                                                 |
|                    | Let's review: If you are a Plan A State, you    |
|                    | must apply the appropriate ordering rules       |
|                    | depending on the date of payment application:   |
|                    | Pre-October 1997, October 1997 - September      |
|                    | 2000, or October 2000 and later.                |
|                    |                                                 |
|                    | **If you are a Plan B State, you must apply     |
|                    | Pre-October 1998 rules or Post September 1998   |
|                    | rules.**                                        |
+--------------------+-------------------------------------------------+
| **24. Display H/T  | **24. Distribution While a Family Moves On and  |
| 3-24 Distribution  | Off Assistance\--Rule 4**                       |
| While a Family     |                                                 |
| Moves On and Off   | The **fourth** piece of information you need to |
| Assistance\--Rule  | know when determining the distribution of a     |
| 4**                | payment, is **the total cumulative unreimbursed |
|                    | assistance balance** at the time of payment     |
| **Allow time to    | application.                                    |
| set up overhead    |                                                 |
| projector, if      | Due to the limitation on assignments, this is   |
| necessary. See     | important to know so that the State may         |
| Trainer's note on  | determine whether or not it may retain all or   |
| next slide.**      | part of the collection. If the collection       |
|                    | exceeds the unreimbursed assistance balance,    |
|                    | then all or part of the collection must be      |
|                    | disbursed to the family.                        |
|                    |                                                 |
|                    | **Transition:** The case scenarios which will   |
|                    | follow are what we call our "reality cases."    |
|                    | Most of the cases we deal with on a daily       |
|                    | basis, as you know, contain a combination of    |
|                    | assistance periods and non-assistance periods.  |
|                    | The case scenarios we will cover today will     |
|                    | encompass all case types, time periods and      |
|                    | payment types.                                  |
+--------------------+-------------------------------------------------+
| **25. Display H/T  | **25. Example 3: Distribution while Family      |
| 3-25 Example 3     | Moves On and Off of Assistance 10/1/97 -        |
| Distribution while | 9/30/2000**                                     |
| Family Moves On    |                                                 |
| and Off of         | In this first "Reality" example, we will look   |
| Assistance         | at distribution in a case while a family moves  |
| 10/1/97 -          | on and off assistance before October 1, 2000.   |
| 9/30/2000**        | In this case, support will accrue at \$100 per  |
|                    | month. Also, whenever a family is on            |
| **(First Month)**  | assistance, the assistance grant will be \$500  |
|                    | per month.                                      |
| **NOTE: It is most |                                                 |
| effective to do    | In the first month of this example, the case is |
| these examples by  | a "Never Assistance Case." No payment is made.  |
| way of overhead    | At the end of the month the only arrears on the |
| H/Ts, slowly       | case are Never-Assigned arrears of \$500..      |
| filling in each    |                                                 |
| entry as the       | > **QUESTION:** In September 1997, the case is  |
| participants work  | > still a Never Assistance case and a payment   |
| through the        | > of \$200 is received, **How would this        |
| example with you.  | > payment be applied?**                         |
| It is recommended  |                                                 |
| that the           |                                                 |
| instructor create  |                                                 |
| an overhead        |                                                 |
| transparency and   |                                                 |
| work through       |                                                 |
| examples 3 through |                                                 |
| 8 using the        |                                                 |
| transparency and   |                                                 |
| an overhead        |                                                 |
| projector. As an   |                                                 |
| alternative, the   |                                                 |
| instructor may     |                                                 |
| work through the   |                                                 |
| slides with the    |                                                 |
| powerpoint         |                                                 |
| presentation in    |                                                 |
| the same fashion   |                                                 |
| as case scenario   |                                                 |
| #2 under the       |                                                 |
| Distribution       |                                                 |
| Principles**       |                                                 |
+--------------------+-------------------------------------------------+
| **26. Display H/T  | **26. Example 3: Distribution while Family      |
| 3-26 Example 3**   | Moves On and Off of Assistance 10/1/97 -        |
|                    | 9/30/2000**                                     |
| **Second Month**   |                                                 |
|                    | > **ANSWER: First, \$100 would be applied to    |
|                    | > current support, and then the remaining \$100 |
|                    | > would be applied to Never-Assigned arrears.** |
|                    |                                                 |
|                    | At the end of the month, the Never-Assigned     |
|                    | arrears would be reduced by \$100, leaving a    |
|                    | balance of \$400 on the case..                  |
|                    |                                                 |
|                    | **QUESTION:** In October 1997, the case is in   |
|                    | "Never Assistance" status, and no payment is    |
|                    | received, **What would happen to the arrears?** |
+--------------------+-------------------------------------------------+
| **27. Display H/T  | **27. Example 3: Distribution while Family      |
| 3-27 Example 3**   | Moves On and Off of Assistance 10/1/97 -        |
|                    | 9/30/2000**                                     |
| **Third Month**    |                                                 |
|                    | > **ANSWER: The Never-Assigned arrears would    |
|                    | > increase by \$100, leaving a balance of \$500 |
|                    | > in Never-Assigned arrears.**                  |
|                    | >                                               |
|                    | > **QUESTION:** In November 1997, the family    |
|                    | > begins receiving public assistance, and the   |
|                    | > case type changes to a current assistance     |
|                    | > case. No payment is received, **What would    |
|                    | > happen to the arrears?**                      |
+--------------------+-------------------------------------------------+
| **28. Display H/T  | **28. Example 3: Distribution while Family      |
| 3-28 Example 3**   | Moves On and Off of Assistance 10/1/97 -        |
|                    | 9/30/2000**                                     |
| **Fourth Month**   |                                                 |
|                    | > **ANSWER: The Never-Assigned arrears of \$500 |
|                    | > become temporarily assigned. Why do they      |
|                    | > become temporarily assigned? [Because the     |
|                    | > family executed an assignment after September |
|                    | > 30, 1997]{.underline}.**                      |
|                    |                                                 |
|                    | Since no payment is received during the month,  |
|                    | at the end of the month there are \$100 in      |
|                    | permanently assigned arrears (during assistance |
|                    | arrears accrual for the month), and \$500 in    |
|                    | temporarily assigned arrears.                   |
|                    |                                                 |
|                    | The URA balance is \$500 since the family has   |
|                    | received one month of assistance..              |
|                    |                                                 |
|                    | > **QUESTION:** In December 1997, the case is   |
|                    | > still a current assistance case. No payment   |
|                    | > is received, **What would the arrears be at   |
|                    | > the end of the month?**                       |
+--------------------+-------------------------------------------------+
| **29. Display H/T  | **29. Example 3: Distribution while Family      |
| 3-29 Example 3**   | Moves On and Off of Assistance 10/1/97 -        |
|                    | 9/30/2000**                                     |
| **Fifth Month**    |                                                 |
|                    | > **ANSWER: \$200 permanently assigned arrears  |
| **Trainer** could  | > and \$500 temporarily assigned arrears.**     |
| review             |                                                 |
| distribution       | The URA would increase by \$500, leaving a      |
| ordering rules for | balance of \$1000.                              |
| current assistance |                                                 |
| cases, if          | > **QUESTION:** In January 1998, the case is a  |
| necessary          | > current assistance case and a \$200 payment   |
|                    | > is received, **How would this payment be      |
|                    | > applied?**                                    |
+--------------------+-------------------------------------------------+
| **30. Display H/T  | **30. Example 3: Distribution while Family      |
| 3-30 Example 3**   | Moves On and Off of Assistance 10/1/97 -        |
|                    | 9/30/2000**                                     |
| **Sixth Month**    |                                                 |
|                    | > **ANSWER: First, we would apply \$100 to      |
|                    | > current support, and then the remaining \$100 |
|                    | > would be applied to permanently assigned      |
|                    | > arrears.**                                    |
|                    |                                                 |
|                    | At the end of the month (in this State option)  |
|                    | we would have \$100 in permanently assigned     |
|                    | arrears, \$500 in temporarily assigned arrears, |
|                    | and the URA would increase to \$1300 (\$1000 +  |
|                    | \$500 - \$200 = \$1300).                        |
|                    |                                                 |
|                    | > **QUESTION:** In February 1998, the case is   |
|                    | > still a current assistance case and a \$300   |
|                    | > payment is received, **How would this payment |
|                    | > be applied?**                                 |
+--------------------+-------------------------------------------------+
| **31. Display H/T  | **31. Example 3: Distribution while Family      |
| 3-31 Example 3**   | Moves On and Off of Assistance 10/1/97 -        |
|                    | 9/30/2000**                                     |
| **Seventh Month**  |                                                 |
|                    | > **ANSWER: First, we would apply \$100 to      |
| **Trainer** could  | > current support, then \$100 would be applied  |
| review             | > to permanently assigned arrears, and then the |
| distribution       | > remaining \$100 would be applied to           |
| ordering rules in  | > temporarily assigned arrears.**               |
| former assistance  |                                                 |
| cases (October 1,  | At the end of the month we would have \$0 in    |
| 1997 - September   | permanently assigned arrears, \$400 in          |
| 30, 2000), if      | temporarily assigned arrears, and the URA would |
| necessary.         | increase to \$1500 (\$1300 + \$500 - \$300 =    |
|                    | \$1500).                                        |
|                    |                                                 |
|                    | > **QUESTION:** In March 1998, the family       |
|                    | > leaves assistance. The case is now a former   |
|                    | > assistance case. A \$300 payment is received, |
|                    | > **How would it be applied?**                  |
+--------------------+-------------------------------------------------+
| **32. Display H/T  | **32. Example 3: Distribution while Family      |
| 3-32 Example 3**   | Moves On and Off of Assistance 10/1/97 -        |
|                    | 9/30/2000**                                     |
| **Eighth Month**   |                                                 |
|                    | > **ANSWER: First \$100 would go to the family  |
|                    | > as current support. Then, since there are no  |
|                    | > Never-Assigned arrears yet, the remaining     |
|                    | > \$200 is applied to temporarily assigned      |
|                    | > arrears.**                                    |
|                    |                                                 |
|                    | QUESTION: What would the arrears be at the end  |
|                    | of the month?                                   |
|                    |                                                 |
|                    | ANSWER: \$0 permanently assigned arrears, \$200 |
|                    | temporarily assigned arrears and URA would be   |
|                    | reduced to \$1300.                              |
|                    |                                                 |
|                    | > **QUESTION:** It is now April 1998. The case  |
|                    | > is a former assistance case. No payment is    |
|                    | > received, **What would the arrears be at the  |
|                    | > end of the month?**                           |
+--------------------+-------------------------------------------------+
| **33. Display H/T  | **33. Example 3: Distribution while Family      |
| 3-33 Example 3**   | Moves On and Off of Assistance 10/1/97 -        |
|                    | 9/30/2000**                                     |
| **Ninth Month**    |                                                 |
|                    | > **ANSWER: \$100 Never-Assigned arrears, \$200 |
|                    | > temporarily assigned arrears. URA would       |
|                    | > remain at \$1300.**                           |
|                    | >                                               |
|                    | > **QUESTION:** It is now May 1998. The case is |
|                    | > still a former assistance case. A payment of  |
|                    | > \$300 is received, **How would it be          |
|                    | > applied?**                                    |
+--------------------+-------------------------------------------------+
| **34. Display H/T  | **34. Example 3: Distribution while Family      |
| 3-34 Example 3**   | Moves On and Off of Assistance 10/1/97 -        |
|                    | 9/30/2000**                                     |
| **Tenth Month**    |                                                 |
|                    | > **ANSWER: \$100 to current, \$100 to pay off  |
|                    | > the existing Never-Assigned arrears, and then |
|                    | > the remaining \$100 to temporarily assigned   |
|                    | > arrears.**                                    |
|                    |                                                 |
|                    | QUESTION: What are the arrears balances at the  |
|                    | end of the month?                               |
|                    |                                                 |
|                    | ANSWER: \$0 Never-Assigned, \$100 temporarily   |
|                    | assigned, and URA would be reduced to \$1200.   |
|                    |                                                 |
|                    | **Transition:** Now we're going to look at the  |
|                    | same example, but this time we will be in the   |
|                    | year 2000.                                      |
+--------------------+-------------------------------------------------+
| **35. Display H/T  | **35. Example 4: Distribution while Family      |
| 3-35 Example 4     | Moves On and Off of Assistance Post 9/30/2000   |
| Distribution while | (or 10/1/98 for Plan B States)**                |
| Family Moves On    |                                                 |
| and Off of         | In this slide, it is August 2000. The family    |
| Assistance Post    | has never received assistance. No payment is    |
| 9/30/2000 First    | received during the month and arrears at the    |
| Month**            | end of the month are a total of \$500 in        |
|                    | Never-Assigned arrears. **The court order       |
|                    | amount is \$100.00**.                           |
|                    |                                                 |
|                    | > **QUESTION:** In September 2000, the case is  |
|                    | > still a Never Assistance case and a payment   |
|                    | > of \$200 is received, **How would this        |
|                    | > payment be applied?**                         |
+--------------------+-------------------------------------------------+
| **36. Display H/T  | **36. Example 4: Distribution while Family      |
| 3-36 Example 4**   | Moves On and Off of Assistance Post 9/30/2000   |
|                    | (or 10/1/98 for Plan B States)**                |
| **Second Month**   |                                                 |
|                    | > **ANSWER: The payment is applied the same as  |
|                    | > in the last example: \$100 first to current,  |
|                    | > the remaining \$100 to Never-Assigned         |
|                    | > arrears. At the end of the month,             |
|                    | > Never-Assigned arrears are \$400.**           |
|                    | >                                               |
|                    | > **QUESTION:** It is now October 2000. No      |
|                    | > payment is received, **What would happen to   |
|                    | > the arrears on this case?**                   |
+--------------------+-------------------------------------------------+
| **37. Display H/T  | **37. Example 4: Distribution while Family      |
| 3-37 Example 4**   | Moves On and Off of Assistance Post 9/30/2000   |
|                    | (or 10/1/98 for Plan B States)**                |
| **Third Month**    |                                                 |
|                    | > **ANSWER: The Never-Assigned arrears increase |
|                    | > by \$100 leaving a balance of \$500 at the    |
|                    | > end of the month.**                           |
|                    | >                                               |
|                    | > **QUESTION** It is November 2000, and the     |
|                    | > family begins receiving assistance. No        |
|                    | > payment is received, **What would the arrears |
|                    | > be at the end of the month?**                 |
+--------------------+-------------------------------------------------+
| **38. Display H/T  | **38. Example 4: Distribution while Family      |
| 3-38 Example 4**   | Moves On and Off of Assistance Post 9/30/2000   |
|                    | (or 10/1/98 for Plan B States)**                |
| **Fourth Month**   |                                                 |
|                    | **ANSWER: \$100 permanently assigned arrears    |
|                    | and \$500 temporarily assigned arrears. URA is  |
|                    | \$500.**                                        |
|                    |                                                 |
|                    | > **QUESTION:** It is December 2000. The family |
|                    | > is still receiving assistance and no payment  |
|                    | > is received, **What are the arrears at        |
|                    | > month's end?**                                |
+--------------------+-------------------------------------------------+
| **39. Display H/T  | **39. Example 4: Distribution while Family      |
| 3-39 Example 4**   | Moves On and Off of Assistance Post 9/30/2000   |
|                    | (or 10/1/98 for Plan B States)**                |
| **Fifth Month**    |                                                 |
|                    | **ANSWER: \$200 permanently assigned arrears    |
| **Trainer** could  | and \$500 temporarily assigned arrears. URA is  |
| review             | now \$1000.**                                   |
| distribution       |                                                 |
| ordering rules in  | > **QUESTION:** Now it is January 2001. A       |
| current assistance | > payment of \$200 is received, **How would the |
| cases (they are    | > payment be applied in this current assistance |
| the same as in     | > case?**                                       |
| pre-October 2000   |                                                 |
| cases).            |                                                 |
+--------------------+-------------------------------------------------+
| **40. Display H/T  | **40. Example 4: Distribution while Family      |
| 3-40 Example 4**   | Moves On and Off of Assistance Post 9/30/2000   |
|                    | (or 10/1/98 for Plan B States)**                |
| **Sixth Month**    |                                                 |
|                    | > **ANSWER: First \$100 would be applied to     |
|                    | > current support. Second, in this case we      |
|                    | > would apply the remaining \$100 to            |
|                    | > permanently assigned arrears.**               |
|                    |                                                 |
|                    | The arrears at month's end would be (in this    |
|                    | State option): \$100 permanently assigned       |
|                    | arrears, \$500 temporarily assigned arrears.    |
|                    | URA would increase to \$1300 (\$1000 + \$500 -  |
|                    | \$200 = \$1300)..                               |
|                    |                                                 |
|                    | > **QUESTION:** It is now February 2001. The    |
|                    | > family is still receiving assistance. This    |
|                    | > month, a \$300 payment is received, **How     |
|                    | > would the payment be applied to the case?**   |
+--------------------+-------------------------------------------------+
| **41. Display H/T  | **41. Example 4: Distribution while Family      |
| 3-41 Example 4**   | Moves On and Off of Assistance Post 9/30/2000   |
|                    | (or 10/1/98 for Plan B States)**                |
| **Seventh Month**  |                                                 |
|                    | > **ANSWER: \$100 to current, \$100 to pay off  |
| **Trainer** could  | > the permanently assigned arrears, \$100       |
| review             | > towards temporarily assigned arrears.**       |
| distribution       |                                                 |
| ordering rules in  | Arrears at the end of the month are: \$0        |
| former assistance  | permanently assigned arrears, \$400 temporarily |
| cases,             | assigned arrears. URA increases to \$1500       |
| post-September     | (\$1300 + \$500 - \$300 = \$1500).              |
| 2000.              |                                                 |
|                    | > **QUESTION:** It is March 2001 and the family |
|                    | > goes off assistance. A \$300 payment is       |
|                    | > received, **How would it be distributed?**    |
+--------------------+-------------------------------------------------+
| **42. Display H/T  | **42. Example 4: Distribution while Family      |
| 3-42 Example 4**   | Moves On and Off of Assistance Post 9/30/2000   |
|                    | (or 10/1/98 for Plan B States)**                |
| **Eighth Month**   |                                                 |
|                    | > **ANSWER: First, when the family leaves       |
|                    | > assistance, the \$400 in temporarily assigned |
|                    | > arrears reverts back to the family as         |
|                    | > conditionally assigned arrears.**             |
|                    |                                                 |
|                    | Thus, the first \$100 would be applied to       |
|                    | current support, and the remaining \$200 is     |
|                    | applied to conditionally assigned arrears and   |
|                    | is disbursed to the family.                     |
|                    |                                                 |
|                    | Arrears at the end of the month are:            |
|                    | conditionally assigned arrears \$200,           |
|                    | permanently assigned arrears and temporarily    |
|                    | assigned arrears = \$0. URA remains at \$1500.  |
|                    |                                                 |
|                    | > **QUESTION:** It is now April 2001 and the    |
|                    | > family is still off assistance. No payment is |
|                    | > made, **How do the arrears accrue for the     |
|                    | > month?**                                      |
+--------------------+-------------------------------------------------+
| **43. Display H/T  | **43. Example 4: Distribution while Family      |
| 3-43 Example 4**   | Moves On and Off of Assistance Post 9/30/2000   |
|                    | (or 10/1/98 for Plan B States)**                |
| **Ninth Month**    |                                                 |
|                    | > **ANSWER: \$100 Never-Assigned arrears; \$200 |
|                    | > conditionally assigned arrears. URA is still  |
|                    | > \$1500.**                                     |
|                    | >                                               |
|                    | > **QUESTION:** It is now May 2001. A payment   |
|                    | > of \$300 is received, **How would it be       |
|                    | > applied in this former assistance case?**     |
+--------------------+-------------------------------------------------+
| **44. Display H/T  | **44. Example 4: Distribution while Family      |
| 3-44 Example 4**   | Moves On and Off of Assistance Post - 9/30/2000 |
|                    | (or 10/1/98 for Plan B States)**                |
| **Tenth Month**    |                                                 |
|                    | > **ANSWER: \$100 to current, \$100 to          |
| Transition: Now    | > Never-Assigned arrears, \$100 to              |
| let's look at the  | > conditionally assigned arrears.**             |
| very same example, |                                                 |
| this time applying | Arrears at month's end are: \$0 never-assigned  |
| payments to        | arrears; \$100 conditionally assigned arrears.  |
| temporarily        | URA remains \$1500.                             |
| assigned arrears   |                                                 |
| first.             | Are there any questions about how support was   |
|                    | applied in this case scenario?                  |
+--------------------+-------------------------------------------------+
| **45. Display H/T  | **45, Example 5: Distribution while Family      |
| 3-45 Example 5     | Moves On and Off of Assistance Post 9/30/2000 - |
| Distribution while | Payments Applied to Temporary Assigned Arrears  |
| Family Moves On    | First**                                         |
| and Off of         |                                                 |
| Assistance Post    | The first five months would again be the same   |
| 9/30/2000 -        | as the last example. Let's go through these     |
| Payments Applied   | slides very quickly.                            |
| to Temporary       |                                                 |
| Assigned Arrears   | In this slide, it is August 2000. The family    |
| First**            | has never received assistance. No payment is    |
|                    | received during the month and arrears at the    |
| **First Month**    | end of the month are a total of \$500 in        |
|                    | Never-Assigned arrears.                         |
|                    |                                                 |
|                    | > **QUESTION:** In September 2000, the case is  |
|                    | > still a Never Assistance case and a payment   |
|                    | > of \$200 is received, **How would this        |
|                    | > payment be applied?**                         |
+--------------------+-------------------------------------------------+
| **46. Display H/T  | **46. Example 5: Distribution while Family      |
| 33-46 Example 5**  | Moves On and Off of Assistance Post 9/30/2000 - |
|                    | Payments Applied to Temporary Assigned Arrears  |
| **Second Month**   | First**                                         |
|                    |                                                 |
|                    | > **ANSWER: The payment is applied the same as  |
|                    | > in the last example: \$100 first to current,  |
|                    | > the remaining \$100 to Never-Assigned         |
|                    | > arrears. At the end of the month,             |
|                    | > Never-Assigned arrears are \$400**.           |
|                    |                                                 |
|                    | **QUESTION:** It is now October 2000. No        |
|                    | payment is received, **What would happen to the |
|                    | arrears on this case?**                         |
+--------------------+-------------------------------------------------+
| **47. Display H/T  | **47. Example 5: Distribution while Family      |
| 3-47 Example 5**   | Moves On and Off of Assistance Post 9/30/2000 - |
|                    | Payments Applied to Temporary Assigned Arrears  |
| **Third Month**    | First**                                         |
|                    |                                                 |
|                    | > **ANSWER: The Never-Assigned arrears increase |
|                    | > by \$100 leaving a balance of \$500 at the    |
|                    | > end of the month.**                           |
|                    | >                                               |
|                    | > **QUESTION:** It is November 2000, and the    |
|                    | > family begins receiving assistance. No        |
|                    | > payment is received, **What would the arrears |
|                    | > be at the end of the month?**                 |
+--------------------+-------------------------------------------------+
| **48. Display H/T  | **48. Example 5: Distribution while Family      |
| 3-48 Example 5**   | Moves On and Off of Assistance Post 9/30/2000 - |
|                    | Payments Applied to Temporary Assigned Arrears  |
| **Fourth Month**   | First**                                         |
|                    |                                                 |
|                    | > **ANSWER: \$100 permanently assigned arrears  |
|                    | > and \$500 temporarily assigned arrears. URA   |
|                    | > is \$500.**                                   |
|                    | >                                               |
|                    | > **QUESTION:** It is December 2000. The family |
|                    | > is still receiving assistance and no payment  |
|                    | > is received, **What are the arrears at        |
|                    | > month's end?**                                |
+--------------------+-------------------------------------------------+
| **49. Display H/T  | **49. Example 5: Distribution while Family      |
| 3-49 Example 5**   | Moves On and Off of Assistance Post 9/30/2000 - |
|                    | Payments Applied to Temporary Assigned Arrears  |
| **Fifth Month**    | First**                                         |
|                    |                                                 |
|                    | > **ANSWER: \$200 permanently assigned arrears  |
|                    | > and \$500 temporarily assigned arrears. URA   |
|                    | > is now \$1000.**                              |
|                    | >                                               |
|                    | > **QUESTION:** Here's where we see a           |
|                    | > difference. It is now January 2001 and a      |
|                    | > \$200 payment is received, **How would it be  |
|                    | > distributed?**                                |
+--------------------+-------------------------------------------------+
| **50. Display H/T  | **50. Example 5: Distribution while Family      |
| 3-50 Example 5**   | Moves On and Off of Assistance Post 9/30/2000 - |
|                    | Payments Applied to Temporary Assigned Arrears  |
| **Sixth Month**    | First**                                         |
|                    |                                                 |
|                    | > **ANSWER: \$100 to current, \$100 to          |
|                    | > [temporarily]{.underline} assigned arrears.   |
|                    | > (in this State option)**                      |
|                    |                                                 |
|                    | Balances at the end of the month: \$200         |
|                    | permanently assigned arrears, \$400 temporarily |
|                    | assigned arrears; URA \$1300.                   |
|                    |                                                 |
|                    | > **QUESTION:** it's Now February 2001. A \$300 |
|                    | > payment is received, **How would it be        |
|                    | > applied?**                                    |
+--------------------+-------------------------------------------------+
| **51. Display H/T  | **51. Example 5: Distribution while Family      |
| 3-51 Example 5**   | Moves On and Off of Assistance Post 9/30/2000 - |
|                    | Payments Applied to Temporary Assigned Arrears  |
| **Seventh Month**  | First**                                         |
|                    |                                                 |
|                    | > **ANSWER: \$100 to current support to the     |
|                    | > family, \$200 to temporarily assigned         |
|                    | > arrears.**                                    |
|                    |                                                 |
|                    | Balances at end of month: \$200 permanently     |
|                    | assigned arrears, \$200 temporarily assigned    |
|                    | arrears; URA is \$1500.                         |
|                    |                                                 |
|                    | > **QUESTION:** It's March 2001 and the family  |
|                    | > leaves assistance. A \$300 payment is         |
|                    | > received, **How would the payment be          |
|                    | > applied?**                                    |
+--------------------+-------------------------------------------------+
| **52. Display H/T  | **52. Example 5: Distribution while Family      |
| 3-52 Example 5**   | Moves On and Off of Assistance Post 9/30/2000 - |
|                    | Payments Applied to Temporary Assigned Arrears  |
| **Eighth Month**   | First**                                         |
|                    |                                                 |
|                    | > **ANSWER: \$100 to current support to the     |
|                    | > family, \$200 to conditionally assigned       |
|                    | > arrears.**                                    |
|                    |                                                 |
|                    | Balances at end of month: \$0 conditionally     |
|                    | assigned arrears, \$200 permanently assigned    |
|                    | arrears; URA \$1500.                            |
|                    |                                                 |
|                    | > **QUESTION:** It's April 2001. No payment is  |
|                    | > received, **What would happen to the arrears  |
|                    | > on this case?**                               |
+--------------------+-------------------------------------------------+
| **53. Display H/T  | **53. Example 5: Distribution while Family      |
| 3-53 Example 5**   | Moves On and Off of Assistance Post 9/30/2000 - |
|                    | Payments Applied to Temporary Assigned Arrears  |
| **Ninth Month**    | First**                                         |
|                    |                                                 |
|                    | > **ANSWER: Balances at end of month \-- \$100  |
|                    | > never-assigned arrears, \$200 permanently     |
|                    | > assigned arrears; URA \$1500.**               |
|                    | >                                               |
|                    | > **QUESTION:** I t is May 2001. A payment of   |
|                    | > \$300 is received, **How would it be          |
|                    | > applied?**                                    |
+--------------------+-------------------------------------------------+
| **54. Display H/T  | **54. Example 5: Distribution of IRS Intercept  |
| 3-54 Example 5**   | Payment 10/2/97 - 9/30/2000 Payments Applied to |
|                    | Temporary Assigned Arrears First**              |
| **Tenth Month**    |                                                 |
|                    | > **ANSWER: \$100 to current support to the     |
|                    | > family, \$100 to never-assigned arrears,      |
|                    | > \$100 permanently assigned arrears.**         |
|                    |                                                 |
|                    | Balances at end of month: \$0 never-assigned    |
|                    | arrears, \$100 permanently assigned arrears;    |
|                    | URA is reduced to \$1400.                       |
|                    |                                                 |
|                    | Now we're going to look at the same example,    |
|                    | this time applying an IRS tax offset collection |
|                    | during both time periods. This time I will      |
|                    | advance through everything except the last      |
|                    | month of the example, since the distribution is |
|                    | a repeat of what we went through earlier.       |
+--------------------+-------------------------------------------------+
| **55. Display H/T  | **55. Example 6. Distribution of IRS Intercept  |
| 3-55 Example 6     | Payment 10/1/97-9/30/2000**                     |
| Distribution of    |                                                 |
| IRS Intercept      | In the first month of this example, the case is |
| Payment            | a "Never Assistance Case." No payment is made.  |
| 1                  | At the end of the month the only arrears on the |
| 0/1/97-9/30/2000** | case are Never-Assigned arrears of \$500.       |
|                    |                                                 |
| **First Month**    | > **QUESTION:** In September 1997, the case is  |
|                    | > still a Never Assistance case and a payment   |
|                    | > of \$200 is received, **How would this        |
|                    | > payment be applied?**                         |
+--------------------+-------------------------------------------------+
| **56. Display H/T  | **56. Example 6. Distribution of IRS Intercept  |
| 3-56 Example 6**   | Payment 10/1/97-9/30/2000**                     |
|                    |                                                 |
| **Second Month**   | > **ANSWER: First, \$100 would be applied to    |
|                    | > current support, and then the remaining \$100 |
|                    | > would be applied to Never-Assigned arrears.** |
|                    |                                                 |
|                    | At the end of the month, the Never-Assigned     |
|                    | arrears would be reduced by \$100, leaving a    |
|                    | balance of \$400 on the case.                   |
|                    |                                                 |
|                    | > **QUESTION** In October 1997, the case is in  |
|                    | > "Never Assistance" status, and no payment is  |
|                    | > received, **What would happen to the          |
|                    | > arrears?**                                    |
+--------------------+-------------------------------------------------+
| **57. Display H/T  | **57. Example 6. Distribution of IRS Intercept  |
| 3-57 Example 6**   | Payment 10/1/97-9/30/2000**                     |
|                    |                                                 |
| **Third Month**    | > **ANSWER: The Never-Assigned arrears would    |
|                    | > increase by \$100, leaving a balance of \$500 |
|                    | > in Never-Assigned arrears.**                  |
|                    | >                                               |
|                    | > **QUESTION:** In November 1997, the family    |
|                    | > begins receiving public assistance, and the   |
|                    | > case type changes to a current assistance     |
|                    | > case. No payment is received, **What would    |
|                    | > happen to the arrears?**                      |
+--------------------+-------------------------------------------------+
| **58. Display H/T  | **58. Example 6. Distribution of IRS Intercept  |
| 3-58 Example 6**   | Payment 10/1/97-9/30/2000**                     |
|                    |                                                 |
| **Fourth Month**   | > **Answer: The Never-Assigned arrears of \$500 |
|                    | > become temporarily assigned.**                |
|                    |                                                 |
|                    | Question: Why do they become temporarily        |
|                    | assigned?                                       |
|                    |                                                 |
|                    | [Answer: Because the family executed an         |
|                    | assignment after September 30,                  |
|                    | 1997]{.underline}.                              |
|                    |                                                 |
|                    | Since no payment is received during the month,  |
|                    | at the end of the month there are \$100 in      |
|                    | permanently assigned arrears (during assistance |
|                    | arrears accrual for the month), and \$500 in    |
|                    | temporarily assigned arrears.                   |
|                    |                                                 |
|                    | The URA balance is \$500 since the family has   |
|                    | received one month of assistance.               |
|                    |                                                 |
|                    | > **QUESTION:** In December 1997, the case is   |
|                    | > still a current assistance case. No payment   |
|                    | > is received, **What would the arrears be at   |
|                    | > the end of the month?**                       |
+--------------------+-------------------------------------------------+
| **59. Display H/T  | **59. Example 6. Distribution of IRS Intercept  |
| 3-59 Example 6**   | Payment 10/1/97-9/30/2000**                     |
|                    |                                                 |
| **Fifth Month**    | > **ANSWER: \$200 permanently assigned arrears  |
|                    | > and \$500 temporarily assigned arrears.**     |
|                    |                                                 |
|                    | The URA would increase by \$500, leaving a      |
|                    | balance of \$1000.                              |
|                    |                                                 |
|                    | > **QUESTION:** In January 1998, the case is a  |
|                    | > current assistance case and a \$200 payment   |
|                    | > is received, **How would this payment be      |
|                    | > applied?**                                    |
+--------------------+-------------------------------------------------+
| **60. Display H/T  | **60. Example 6. Distribution of IRS Intercept  |
| 3-60 Example 6**   | Payment 10/1/97-9/30/2000**                     |
|                    |                                                 |
| **Sixth Month**    | > **Answer: First, we would apply \$100 to      |
|                    | > current support, and then the remaining \$100 |
|                    | > would be applied to permanently assigned      |
|                    | > arrears.**                                    |
|                    |                                                 |
|                    | At the end of the month we would have \$100 in  |
|                    | permanently assigned arrears, \$500 in          |
|                    | temporarily assigned arrears, and the URA would |
|                    | increase to \$1300 (\$1000 + \$500 - \$200 =    |
|                    | \$1300).                                        |
|                    |                                                 |
|                    | > **QUESTION:** In February 1998, the case is   |
|                    | > still a current assistance case and a \$300   |
|                    | > payment is received, **How would this payment |
|                    | > be applied?**                                 |
+--------------------+-------------------------------------------------+
| **61. Display H/T  | **61. Example 6. Distribution of IRS Intercept  |
| 3-62 Example 6**   | Payment 10/1/97-9/30/2000**                     |
|                    |                                                 |
| **Seventh Month**  | > **Answer: First, we would apply \$100 to      |
|                    | > current support, then \$100 would be applied  |
|                    | > to permanently assigned arrears, and then the |
|                    | > remaining \$100 would be applied to           |
|                    | > temporarily assigned arrears.**               |
|                    |                                                 |
|                    | At the end of the month we would have \$0 in    |
|                    | permanently assigned arrears, \$400 in          |
|                    | temporarily assigned arrears, and the URA would |
|                    | increase to \$1500 (\$1300 + \$500 - \$300 =    |
|                    | \$1500).                                        |
|                    |                                                 |
|                    | > **QUESTION:** In March 1998, the family       |
|                    | > leaves assistance. The case is now a former   |
|                    | > assistance case. No payment is received,      |
|                    | > **What would the arrears balances be at the   |
|                    | > end of the month?**                           |
+--------------------+-------------------------------------------------+
| **62. Display H/T  | **62. Example 6. Distribution of IRS Intercept  |
| 3-62 Example 6**   | Payment 10/1/97-9/30/2000**                     |
|                    |                                                 |
| **Eighth Month**   | > **ANSWER: \$100 Never-Assigned Arrears; \$400 |
|                    | > Temporarily Assigned Arrears; URA balance is  |
|                    | > \$1500.**                                     |
|                    | >                                               |
|                    | > **QUESTION:** Now it is April 1998. A \$300   |
|                    | > IRS tax offset collection is received, **How  |
|                    | > would it be applied?**                        |
+--------------------+-------------------------------------------------+
| **63. Display H/T  | **63. Example 6. Distribution of IRS Intercept  |
| 3-63 Example 6**   | Payment 10/1/97-9/30/2000**                     |
|                    |                                                 |
| **Ninth Month**    | > **ANSWER: The entire \$300 would be applied   |
|                    | > to temporarily assigned arrears.**            |
|                    |                                                 |
|                    | Balances at end of month: \$200 never-assigned  |
|                    | (no application of payment to current support), |
|                    | \$100 temporarily assigned; URA 1200.           |
|                    |                                                 |
|                    | Now let's look at the same example beginning in |
|                    | the year 2000, again applying an IRS payment.   |
+--------------------+-------------------------------------------------+
| **64. Display H/T  | **64. Example 7. Distribution of IRS Intercept  |
| 3-64 Example 7     | Payment Post 9/30/2000**                        |
| Distribution of    |                                                 |
| IRS Intercept      | In this slide, it is August 2000. The family    |
| Payment Post       | has never received assistance. No payment is    |
| 9/30/2000 First    | received during the month and arrears at the    |
| Month**            | end of the month are a total of \$500 in        |
|                    | Never-Assigned arrears.                         |
|                    |                                                 |
|                    | > **QUESTION:** In September 2000, the case is  |
|                    | > still a Never Assistance case and a payment   |
|                    | > of \$200 is received, **How would this        |
|                    | > payment be applied?**                         |
+--------------------+-------------------------------------------------+
| **65. Display H/T  | **65. Example 7. Distribution of IRS Intercept  |
| 3-65 Example 7**   | Payment Post 9/30/2000**                        |
|                    |                                                 |
| **Second Month**   | > **ANSWER: The payment is applied the same as  |
|                    | > in the last example: \$100 first to current,  |
|                    | > the remaining \$100 to Never-Assigned         |
|                    | > arrears. At the end of the month,             |
|                    | > Never-Assigned arrears are \$400.**           |
|                    | >                                               |
|                    | > **QUESTION:** It is now October 2000. No      |
|                    | > payment is received, **What would happen to   |
|                    | > the arrears on this case?**                   |
+--------------------+-------------------------------------------------+
| **66. Display H/T  | **66. Example 7. Distribution of IRS Intercept  |
| 3-66 Example 7**   | Payment Post 9/30/2000**                        |
|                    |                                                 |
| **Third Month**    | > **ANSWER: The Never-Assigned arrears increase |
|                    | > by \$100 leaving a balance of \$500 at the    |
|                    | > end of the month.**                           |
|                    | >                                               |
|                    | > **QUESTION:** It is November 2000, and the    |
|                    | > family begins receiving assistance. No        |
|                    | > payment is received, **What would the arrears |
|                    | > be at the end of the month?**                 |
+--------------------+-------------------------------------------------+
| **67. Display H/T  | **67. Example 7. Distribution of IRS Intercept  |
| 3-67 Example 7**   | Payment Post 9/30/2000**                        |
|                    |                                                 |
| **Fourth Month**   | > **ANSWER: \$100 permanently assigned arrears  |
|                    | > and \$500 temporarily assigned arrears. URA   |
|                    | > is \$500.**                                   |
|                    | >                                               |
|                    | > **QUESTION:** It is December 2000. The family |
|                    | > is still receiving assistance and no payment  |
|                    | > is received, **What are the arrears at        |
|                    | > month's end?**                                |
+--------------------+-------------------------------------------------+
| **68. Display H/T  | **68. Example 7. Distribution of IRS Intercept  |
| 3-68 Example 7**   | Payment Post 9/30/2000**                        |
|                    |                                                 |
| **Fifth Month**    | > **ANSWER: \$200 permanently assigned arrears  |
|                    | > and \$500 temporarily assigned arrears. URA   |
|                    | > is now \$1000.**                              |
|                    | >                                               |
|                    | > **QUESTION:** Now it is January 2001. A       |
|                    | > payment of \$200 is received, **How would the |
|                    | > payment be applied in this current assistance |
|                    | > case?**                                       |
+--------------------+-------------------------------------------------+
| **69. Display H/T  | **69. Example 7. Distribution of IRS Intercept  |
| 3-69 Example 7**   | Payment Post 9/30/2000**                        |
|                    |                                                 |
| **Sixth Month**    | > **ANSWER: First \$100 would be applied to     |
|                    | > current support. Second, in this case we      |
|                    | > would apply the remaining \$100 to            |
|                    | > permanently assigned arrears.**               |
|                    |                                                 |
|                    | The arrears at month's end would be: \$100      |
|                    | permanently assigned arrears, \$500 temporarily |
|                    | assigned arrears. URA would increase to \$1300  |
|                    | (\$1000 + \$500 - \$200 = \$1300).              |
|                    |                                                 |
|                    | > **QUESTION:** It is now February 2001. The    |
|                    | > family is still receiving assistance. This    |
|                    | > month, a \$300 payment is received, **How     |
|                    | > would the payment be applied?**               |
+--------------------+-------------------------------------------------+
| **70. Display H/T  | **70. Example 7. Distribution of IRS Intercept  |
| 3-70 Example 7**   | Payment Post 9/30/2000**                        |
|                    |                                                 |
| **Seventh Month**  | > **ANSWER: \$100 to current, \$100 to pay off  |
|                    | > the permanently assigned arrears, \$100       |
|                    | > towards temporarily assigned arrears.**       |
|                    |                                                 |
|                    | Arrears at the end of the month are: \$0        |
|                    | permanently assigned arrears, \$400 temporarily |
|                    | assigned arrears. URA increases to \$1500       |
|                    | (\$1300 + \$500 - \$300 = \$1500).              |
|                    |                                                 |
|                    | > **QUESTION:** It is March 2001 and the family |
|                    | > goes off assistance. No payment is received,  |
|                    | > **What are the arrears balances at the end of |
|                    | > the month?**                                  |
+--------------------+-------------------------------------------------+
| **71. Display H/T  | **71. Example 7. Distribution of IRS Intercept  |
| 3-71 Example 7**   | Payment Post 9/30/2000**                        |
|                    |                                                 |
| **Eighth Month**   | > **ANSWER: Never-assigned arrears \$100;       |
|                    | > conditionally assigned arrears \$400,         |
|                    | > permanently assigned arrears and temporarily  |
|                    | > assigned arrears = \$0. URA remains at        |
|                    | > \$1500.**                                     |
|                    | >                                               |
|                    | > **QUESTION:** Now it is April 2001. A \$300   |
|                    | > IRS tax offset collection is received, **How  |
|                    | > would it be applied?**                        |
+--------------------+-------------------------------------------------+
| **72. Display H/T  | **72. Example 7. Distribution of IRS Intercept  |
| 3-72 Example 7**   | Payment Post 9/30/2000**                        |
|                    |                                                 |
| **Ninth Month**    | > **ANSWER: The entire \$300 would be applied   |
|                    | > to conditionally assigned arrears and is      |
|                    | > retained by the** State **to reimburse public |
|                    | > assistance expenditures.**                    |
|                    |                                                 |
|                    | Balances at end of month: \$200 never-assigned  |
|                    | (no application of payment to current support), |
|                    | \$100 Conditionally assigned; URA 1200.         |
+--------------------+-------------------------------------------------+
| **73. Display H/T  | **73. Example 8. Distribution when Collections  |
| 3-73 Example 8     | Exceed URA While Family Receives Assistance     |
| Distribution when  | 10/1/97 - 9/30/2000**                           |
| Collections Exceed |                                                 |
| URA While Family   | In this example, assume that the monthly        |
| Receives           | support obligation is \$400 per month. Also     |
| Assistance         | assume that when the family receives            |
| 10/1/97 -          | assistance, the grant will be \$300 per month.  |
| 9/30/2000 (First   | It is December 1997. The case is a              |
| Month)**           | never-assistance case. No payment is made       |
|                    | during December. The accrued arrears are \$500  |
| **Trainer** could  | never-assigned arrears. There are no other      |
| go through each    | arrears.                                        |
| column with the    |                                                 |
| participants and   | You'll see in this example that we've added     |
| have them fill in  | some additional columns to provide space to     |
| the blanks in      | record the Federal vs. State share AND          |
| their participant  | distribution vs. disbursements. The reason is   |
| manuals.           | that we will examine what will happen when      |
|                    | collections exceed URA during assistance        |
|                    | periods. So for this example, assume that the   |
|                    | Federal/State share is 50%/50%.                 |
|                    |                                                 |
|                    | > **QUESTION:** Now, assume next month, the     |
|                    | > family begins receiving public assistance,    |
|                    | > and no payment is made, **What would the      |
|                    | > arrears be at the end of January 1998?**      |
+--------------------+-------------------------------------------------+
| **74. Display H/T  | **74. Example 8. Distribution when Collections  |
| 3-74 Example 8**   | Exceed URA While Family Receives Assistance     |
|                    | 10/1/97 - 9/30/2000**                           |
| **Second Month**   |                                                 |
|                    | > **ANSWER: At the end of January 1998, the     |
| **Trainer** could  | > following arrears have accrued \-- \$500 in   |
| go through columns | > temporarily assigned arrears (converted from  |
| together with      | > never-assigned arrears before the family      |
| participants.      | > began receiving assistance), \$400            |
|                    | > permanently assigned arrears (accrued during  |
|                    | > the first month of the assistance period),    |
|                    | > and \$300 URA.**                              |
|                    | >                                               |
|                    | > **QUESTION: Now what would happen in February |
|                    | > 1998 if the family continued to receive       |
|                    | > assistance and a \$200 payment was made?**    |
+--------------------+-------------------------------------------------+
| **75. Display H/T  | **75. Example 8. Distribution when Collections  |
| 3-75 Example 8**   | Exceed URA While Family Receives Assistance     |
|                    | 10/1/97 - 9/30/2000**                           |
| **Third Month**    |                                                 |
|                    | > **Answer: The \$200 payment would be applied  |
| **Trainer** could  | > as follows \-- \$200 towards current support  |
| go through columns | > (\$100 disbursed to feds, \$100 disbursed     |
| together with      | > to** State**); arrears at the end of the      |
| participants.      | > month are \$600 permanently assigned arrears  |
|                    | > (\$400 from last month plus \$200 remaining   |
|                    | > from this month), and \$500 temporarily       |
|                    | > assigned arrears. URA is 400 (300 + 300 = 600 |
|                    | > less 200 paid = 400).**                       |
|                    | >                                               |
|                    | > **QUESTION:** Assume in the next month that   |
|                    | > the family continues to receive assistance    |
|                    | > and a \$700 payment is made, **How would the  |
|                    | > payment be distributed and what would the     |
|                    | > arrears be at the end of March 1998?**        |
+--------------------+-------------------------------------------------+
| **76. Display H/T  | **76. Example 8. Distribution when Collections  |
| 3-76 Example 8**   | Exceed URA While Family Receives Assistance     |
|                    | 10/1/97 - 9/30/2000**                           |
| **Fourth Month**   |                                                 |
|                    | > **ANSWER: The first \$400 of the payment      |
| **Trainer** could  | > would go towards current support (\$200       |
| go through columns | > disbursed to feds; \$200 disbursed to State); |
| with participants  | > the remaining \$300 would be applied to       |
|                    | > permanently assigned arrears (\$150 to feds;  |
|                    | > \$150 to State). Arrears at the end of the    |
|                    | > month are: \$300 permanently assigned arrears |
|                    | > (600 less 300 = 300), and \$500 temporarily   |
|                    | > assigned arrears. URA is \$0 (400 URA from    |
|                    | > last month plus 300 grant from this month =   |
|                    | > 700, less 700 payment = \$0).**               |
|                    | >                                               |
|                    | > **QUESTION:** Now assume in April that the    |
|                    | > family continues to receive assistance. A     |
|                    | > \$500 payment is made, **How would the        |
|                    | > payment be distributed, and what would the    |
|                    | > arrears be at the end of April?** .           |
+--------------------+-------------------------------------------------+
| **77. Display H/T  | **77. Example 8. Distribution when Collections  |
| 3-77 Example 8**   | Exceed URA While Family Receives Assistance     |
|                    | 10/1/97 - 9/30/2000**                           |
| **Fifth Month**    |                                                 |
|                    | > **ANSWER: The first \$400 is applied to       |
| **Trainer** could  | > current support (this is where disbursement   |
| discuss unassigned | > changes: since only \$300 was expended in     |
| pre and during     | > public assistance this month, and URA prior   |
| assistance periods | > to this month was \$0, the State/Federal      |
|                    | > Governments can only retain up to \$300;      |
| **Trainer** could  | > there fore disbursement is \$150 to feds,     |
| go through columns | > \$150 to** State**, and \$100 to family); the |
| with participants. | > remaining \$100 is distributed to permanently |
|                    | > assigned arrears, but is disbursed to the     |
|                    | > family because URA = \$0. At month's end, the |
|                    | > arrears are: \$200 permanently assigned       |
|                    | > arrears and \$500 temporarily assigned        |
|                    | > arrears. URA = \$0. NOTE: The remaining \$100 |
|                    | > becomes unassigned.**                         |
|                    | >                                               |
|                    | > **QUESTION:** Assume now that in May, the     |
|                    | > family leaves assistance, **First would any   |
|                    | > of the arrears shift once the family leaves   |
|                    | > assistance?**                                 |
|                    | >                                               |
|                    | > **ANSWER: YES!**                              |
|                    | >                                               |
|                    | > **All arrears would become the family's       |
|                    | > unassigned arrears because URA = \$0 and the  |
|                    | > family has left assistance. Since the         |
|                    | > assignment statute limits assignments to the  |
|                    | > amount of URA, all assigned arrears must be   |
|                    | > unassigned when the family leaves             |
|                    | > assistance.**                                 |
|                    | >                                               |
|                    | > **QUESTION:** Now assume in May, that a \$500 |
|                    | > payment is received, **Since the case is now  |
|                    | > a [former assistance case]{.underline}, how   |
|                    | > would the payment be distributed and what     |
|                    | > would be the arrears at the end of May?**     |
+--------------------+-------------------------------------------------+
| **78. Display H/T  | **78. Example 8. Distribution when Collections  |
| 3-78 Example 8**   | Exceed URA While Family Receives Assistance     |
|                    | 10/1/97 - 9/30/2000**                           |
| **Sixth Month**    |                                                 |
|                    | > **ANSWER: The first \$400 would be applied to |
| **Trainer** could  | > current support and would be disbursed to the |
| go through columns | > family. The remaining \$100 would be applied  |
| with participants. | > to unassigned arrears and would also be       |
|                    | > disbursed to the family. The arrears at       |
|                    | > month's end would be: \$600 (300 permanently  |
|                    | > assigned arrears and 400 temporarily assigned |
|                    | > arrears became 700 in unassigned arrears,     |
|                    | > less 100 payment = 600). URA is \$0.**        |
|                    | >                                               |
|                    | > **QUESTION:** Assume that in the next month,  |
|                    | > no payment is received. The case is still a   |
|                    | > former assistance case, **What would be the   |
|                    | > arrears balances at month's end?**            |
+--------------------+-------------------------------------------------+
| **79. Display H/T  | **79. Example 8. Distribution when Collections  |
| 3-79 Example 8**   | Exceed URA While Family Receives Assistance     |
|                    | 10/1/97 - 9/30/2000**                           |
| **Seventh Month**  |                                                 |
|                    | > **ANSWER: \$600 Unassigned arrears and \$400  |
| **Trainer** could  | > Never-Assigned arrears. URA = 0.**            |
| work through       | >                                               |
| columns with       | > **QUESTION:** Now assume that, in the final   |
| participants.      | > month, the family goes back on assistance. No |
|                    | > payment is received, **How would the arrears  |
|                    | > change and what would accrue as of the end of |
|                    | > July 1998?**                                  |
+--------------------+-------------------------------------------------+
| **80. Display H/T  | **80. Example 8. Distribution when Collections  |
| 3-80 Example 8**   | Exceed URA While Family Receives Assistance     |
|                    | 10/1/97 - 9/30/2000**                           |
| **Eighth Month**   |                                                 |
|                    | **ANSWER: First, when the family went back on   |
|                    | assistance, all unassigned arrears and all      |
|                    | never-assigned arrears became temporarily       |
|                    | assigned to the State. Therefore, the balances  |
|                    | at month's end would be: \$400 permanently      |
|                    | assigned arrears (for support which accrued and |
|                    | was unpaid during July 1998), and \$1000        |
|                    | temporarily assigned arrears (600 + 400 =       |
|                    | 1,000); URA = \$300.**                          |
+--------------------+-------------------------------------------------+