Child Support Enforcement: More Focus on Labor Costs and Administrative Cost Audits Could Help Reduce Federal Expenditures
Highlights
Congress established federal standards for the child support enforcement program (CSE) in 1975. State agencies administer the program and the Office of Child Support Enforcement (OCSE) in the Department of Health and Human Services (HHS) oversees it. The CSE program provides several services, including collecting child support payments from noncustodial parents--those who are not the primary caregivers--and distributing these payments to families. Generally, the federal government reimburses state agencies 66 percent of their costs for administering the CSE program. GAO determined (1) how total net federal expenditures for administrative costs changed from fiscal year 2000 to fiscal year 2004; (2) the categories of costs that contributed most to administrative costs in recent years; and (3) steps state agencies have taken to manage costs, and steps OCSE has taken to help state agencies and ensure federal funds have been used appropriately. GAO analyzed program data, surveyed all 54 state agencies and visited 6, interviewed program officials, and reviewed laws, policies, and reports.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Health and Human Services | To help manage the administrative costs for the child support enforcement program and ensure federal funds are being appropriately spent, the Secretary of Health and Human Services should direct the Commissioner of OCSE to conduct a study of and develop guidelines for the number of full-time-equivalent employees. |
Closed – Not Implemented
In commenting on this report in June 2006, HHS stated that OCSE will consider doing a study of the number of full-time equivalent employees. In October 2007, the agency said that there has been no change. HHS did not comment on this recommendation in FY08. In FY09, HHS commented that OCSE was unable to identify a reasonable method for performing a study and or developing guidelines for the number of full time equivalent employees. Moreover, since the release of the report, funding cuts and state budget deficits have resulted in widespread furloughs, hiring freezes, and lay-offs in state and county child support programs. In FY10, HHS reported that no action is likely to be taken.
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| Department of Health and Human Services | To help manage the administrative costs for the child support enforcement program and ensure federal funds are being appropriately spent, the Secretary of Health and Human Services should direct the Commissioner of OCSE to direct resources gained from conducting fewer data reliability audits for the incentive payments to completing more administrative cost audits. |
Closed – Not Implemented
In commenting on our report, HHS/OCSE did not address this recommendation. In October 2007, the agency reported that OCSE, Office of Audits, plans to use any resources available after completing the legislatively mandated data reliability audits to conduct limited cost audits. HHS did not comment on this recommendation in FY08. As of FY10, HHS reported that no action is likely to be taken.
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| Department of Health and Human Services | To help manage the administrative costs for the child support enforcement program and ensure federal funds are being appropriately spent, the Secretary of Health and Human Services should direct the Commissioner of OCSE to develop an audit plan that considers total expenditures as one of the factors used to select state agencies for administrative cost audits. |
Closed – Not Implemented
In commenting on the report in June 2006, HHS/OCSE did not address this recommendation in any way. In October 2007, the agency reported that total expenditures are always considered as a factor in determining where to conduct limited cost auditing. HHS did not comment on this recommendation in FY08. In FY09, HHS maintained that total expenditures are always considered in determining where to conduct a limited cost audit. As of FY10, no additional action was taken by the agency on this recommendation.
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