Review of Undistributable Child Support Collections in Tennessee From October 1, 1998, Through December 31, 2007

We found that from October 1998 through December 2007, Tennessee did not recognize and report as program income $8.7 million ($5.8 million Federal share) in undistributable child support collections that met the State's definition of abandoned property. In addition, the State reported incorrect amounts for undistributed collections. Within the Administration for Children and Families, the Office of Child Support Enforcement (OCSE) oversees the Child Support Enforcement program. OCSE requires States to offset program costs by recognizing and reporting income from undistributable child support collections. Undistributable collections result when States receive child support payments but cannot identify or locate the custodial parents or return the funds to the noncustodial parents.

We recommended that the State report as program income undistributable child support collections totaling $8.7 million ($5.8 million Federal share), ensure future compliance with State laws regarding abandoned property, and correct reporting errors on the next quarterly Federal filing. The State said that it would implement our recommendations.