Review of Undistributable Child Support Collections in Georgia From October 1, 1998, Through December 31, 2005

From 1998 to 2001, the State agency appropriately recognized and reported program income for undistributable child support collections.  However, for 2002 through 2005, the State agency did not report program income totaling $360,286 ($237,789 Federal share) for undistributable collections that it had recognized as abandoned.  State agency officials said that they did not report the undistributable collections as program income because their accounting personnel were not aware of the Federal reporting requirements.

Except as discussed in the 'Other Matter' section of our report, the State agency appropriately reported program income for interest earned on its child support collections.

We recommend that the State agency (1) ensure that the $360,286 ($237,789 Federal share) in undistributable child support collections previously reported on Federal Form OCSE-34A, 'Child Support Enforcement Program Quarterly Report of Collections,' is reported as program income on the next quarterly Federal Form OCSE-396A, 'Child Support Enforcement Program Financial Report,' and (2) provide guidance and training to its accounting personnel on how to accurately report undistributable child support collections recognized as abandoned on Form OCSE-34A as program income on Form OCSE-396A to offset program expenditures.  The State agency concurred with our recommendations.