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

From October 1, 1998, through December 31, 2005, the State agency reported no program income from undistributable child support collections.  As of December 31, 2005, the State agency had not reported program income totaling $3,276,134 ($2,162,248 Federal share) in undistributable collections.  The State agency properly reported program income for interest earned on undistributed collections.

We recommended that the State agency (1) transfer $2,842,600 ($1,876,116 Federal share) in undistributable child support collections to the Abandoned Property Unit and report it as program income, (2) report as program income $433,534 ($286,132 Federal share) in undistributable collections that had already been transferred to the Abandoned Property Unit, (3) modify its computer program to accurately recognize as abandoned and report undistributable collections as program income, and (4) provide training to ensure that State officials follow policies and procedures for identifying abandoned property and reporting it as program income.  The State agency agreed with all of our recommendations.