2. Child Support Claiming Process Brett Sakamoto, Administrative Services Officer, Kern County

3. Overview ■Topics Covered ✷ CS356 Administrative Claim Overview ✷ Time Certifications/Time Studies ✷ Abatements ✷ Reconciliation Process – Kern County

4. Administrative and EDP Claim Process ■Administrative Expenditure Claim (CS356) is due 15 days after the end of the quarter ■CS356 is submitted on the State Secure Website – DCSS Data Retrieval/AEC (CS356) ■CS356 requires approval of IV-D Director and County Officer/overseer of County Financials (Auditor/Controller) after Author/preparer enters and submits claim

5. Time Certification/Time Study ■All LCSA employees are required to either time certify or time study to satisfy federal reporting requirements ■Other Child Support activities must be separately identified due to variances in funding or monitoring of costs - examples are EDP, Collections and Distribution, Early Intervention, and E-Oscar activities

6. Time Certification ■Time Certification – for staff that work on one Child Support activity or function ■Time Certification - completed twice during year, recommended during middle month of first and third quarters (August and February)

7. Time Study ■Time Study – for staff that spends time on two or more Child Support activities or functions ■Time Study completed quarterly in the mid-month of each quarter

8. Time Certification/Time Study ■Forms are available on CA Child Support Central ■Require signature of both employee and their supervisor ■Different forms for Administrative and EDP personnel ■LCSAs with staff that work non-IV-D (Child Support) activities need to track actual time worked and exclude expenditures from administrative claim

9. Time Certification/Time Study ■Electronic Timekeeping Systems ✷ If the LCSA has an electronic timekeeping system that tracks daily hours and shows the employee name or unique identifier, date created, and verifiable supervisor approval method, then no time certification or study would be needed ✷ Without all of these components of the system, a time certification or study would still need to be used

10. Abatements ■Interest and Miscellaneous Program revenue entered in Section VII of the CS356 ■Abatements reduce your net expenditures, so in reality, your County can spend more

11. Reporting/Reconciliation Process ■Kern County Process ✷ Data extracted from County General Ledger and entered in two Excel worksheets ✷ First worksheet contains all data for quarter containing multiple tabs (expenditures by type by month, miscellaneous revenue, salaries/benefits by pay period for EDP, Early Intervention, and SDU Personnel) ✷ Excel worksheet summarizes for entry into CS 356 on State Secure Website

12. Reporting/Reconciliation Process ■Second worksheet reconciles quarter as a whole to CS356

13. Reporting/Reconciliation Process ■Also maintain an Excel worksheet that summarizes Admin and EDP expenditures claimed by quarter to ensure allocations are not exceeded

14. Quarter/Year End Process ■Kern County Process: ✷ Modified Cash basis of accounting ✷ Payroll salaries and benefits are accrued each month ✷ At fiscal year-end, payroll and services/supplies are accrued ✷ Fiscal year is cut off in last week of June, system not available, final reports complete by July 5th

15. Questions and Answers

16. Child Support Claiming Process Barbara Rankin, Chief Financial Officer, Los Angeles County

17. OVERVIEW ■TOPICS COVERED ✷ 13 TH Period Accrual Methodology – LA County ✷ EDP Categories ✷ Depreciation

18. 13 th PERIOD ACCRUAL METHOD ■Claim (Cash Basis): ✷ Expense at time of payment ■County (Modified Accrual): ✷ Expense ✷ Revenue ✷ 13 TH period methodology (some counties)

19. 13 th PERIOD ACCRUAL METHOD 13th Period Accounting Items that are RECEIVED in June but PAID for in July County posts in 13 th Period (old year) but claims in 1 st quarter claim (new year)

20. 13 th PERIOD ACCRUAL METHOD A 13 TH Period Means That: ■1 ST Quarter Claim will include costs that are 13 TH period (prior year) on county books - AND - ■4 TH Quarter Claim (April - June) will NOT include costs that are 13 th period in county books

21. 13 th PERIOD ACCRUAL METHOD ■Compare: Claim total to County total ■Common Variances: 1. 13 th period of last year 2. 13 th period of current year 3. Unallowable costs 4. Program Income (abatements) 5. A-87

22. EDP CATEGORIES ■EDP (Electronic Data Processing) ✷ M&O ✷ M&O Misc. ✷ 2 CRF, Part 200 (formerly A-87) ✷ Non-Recurring

23. DEPRECIATION ■Title 45 CFR, Section 95.705(a) ■AT 94-5 ■LCSA Letter 05-24 ■CSS Letter 04-20 ■Approved to purchase ■Recover costs over five years

24. DEPRECIATION ■Action Transmittal No. AT-94-5 “Individual items of ADP equipment with a useful life of more than one year and costing $5,000 or less need not be depreciated but may be claimed in the calendar quarter in which they are purchased.”

25. DEPRECIATION ■Non-EDP Equipment ✷ Purchase price over $25,000 ✷ Depreciate/claim over five years Equipment cost $60,000 ($60,000/5) –Year 1 claim $12,000 –Year 2 claim $12,000 –Year 3 claim $12,000 –Year 4 claim $12,000 –Year 5 claim $12,000

26. DEPRECIATION ■EDP Equipment ✷ Purchase price over $5,000 ✷ Depreciate/claim over five years ✷ Including EDP equipment purchased with Admin (Non-EDP) funds Example: Servers

27. RESOURCES AND CONTACTS State Secure Website: https://counties.dcss.ca.gov/main/default.aspx

28. Questions and Answers

29. Child Support Claiming Process Jennifer Younger, Staff Services Manager III, DCSS Donna Kruger, Staff Services Manager I, DCSS

30. Cash Basis Claiming ■Federal rules require cash basis claiming – 45 CFR 304.25 ■No accrual accounting ■Expenses claimed in the quarter they were incurred ■Exceptions ✷ Depreciation Five-year depreciation rule (claim 1/5 each year over five years) ✷ Countywide cost allocation plan (A-87) indirect costs Should be claimed as the annual amount divided quarterly

31. Prior Approval for Purchases ■Prior Approval ✷ Prior Approval form must be submitted before items are purchased. ✷ Form is located on CA Child Support Central, LCSA Fiscal Admin. page ✷ Administrative Expenditures $5,000 or above ✷ EDP Expenditures $500 or above All Software requires prior approval

32. Abatement ■Myth ✷ Abating interest reduces my allocation ✷ I do not have to report interest earned ■Abatements reduce your net expenditures leaving you with more of your allocation

33. Abatement Example ■FY Allocation $12,000,000 ■Advances (each mo. for 3 mos.) $1,000,000 ■Quarterly expenses $3,500,000 ■Quarterly interest earned $500,000 ✷ Enter 1 st quarter expenses of $3.5M ✷ Abate interest of $500,000 ✷ LCSA is reimbursed $3M ✷ $500,000 interest cash in the bank ■At year end ✷ Allocation is $12M ✷ Cash reimbursement of expenses are $12M ✷ Actual expenses $14M ✷ Cash interest earned $2M

34. CA Child Support Central ■https://central2.dcss.ca.gov/Pages/Default.aspxLCS A Fiscal Administration (quick link) ■Quick Links ✷ CSS Letters ✷ LCSA Letters ✷ CSDA website ✷ 2 CFR, Part 200 (formerly known as A-87) ✷ LCSA Secure website ✷ MPP (Manual of Policies and Procedures) ✷ Plan of Cooperation 2014-2015

35. CA Child Support Central ■Documents ✷ LCSA Fiscal Letters ✷ Forms ✷ Presentations ✷ Fiscal Officers Forum ✷ FAQs ✷ Collections Reports ✷ Handbooks

36. CA Child Support Central ■Lists ✷ Fiscal Officer Contacts ✷ LCSA Budget Analyst Contacts ■“Actions” button (blue bar) ✷ Choose “Alert Me” to receive email notifications when items are changed on the page.

37. CA Child Support Central

39. Questions and Answers

40. Brett Sakamoto bsakamot@co.kern.ca.us 661-868-8483 Barbara Rankin brankin@cssd.lacounty.gov 323-889-3460 Jennifer Younger Jennifer.younger@dcss.ca.gov (916) 464-5177 Donna Kruger Donna.kruger@dcss.ca.gov (916) 464-5015