Review of Undistributable Child Support Collections in Ohio From October 1, 1998, Through September 30, 2004

EXECUTIVE SUMMARY:

Our objectives were to determine whether the State agency appropriately reported program income for undistributable child support collections and interest earned on program funds.  The State agency did not report program income totaling $2,870,137 ($1,894,291 Federal share) for undistributable child support collections and did not recognize program income of $500,352 ($330,233 Federal share) for unclaimed and undistributable collections that should have been considered abandoned. 

We recommended that the State agency: (1) adjust program income for undistributable collections of $2,870,137 ($1,894,291 Federal share); (2) work with State officials and county agencies to transfer $500,352 ($330,233 Federal share) of unclaimed collections to trust fund accounts and recognize undistributable collections as program income after 5 years; and (3) work with State officials and county agencies to implement policies and procedures and provide program oversight to ensure that future undistributable collections, after being unclaimed for 5 years, are recognized as program income on the quarterly Federal financial report.  The State agency agreed with the audit findings.