Tracking# 2012-00450
FA/P 7/13/12, eff. 9/15/12

I:/11090203.rtf
(I:/11090203.doc)

(9 CCR 2504-1)

[Instructions: insert before line 2285745.] 
Revisions to Sections 6.260.22-6.260.23 and 6.800 through 6.809.6 were final adoption following publication at the 7/13/2012 State Board meeting, with an effective date of 9/15/2012 (Rule-making# 11-9-2-3). Statement of Basis and Purpose and specific statutory authority for these revisions were incorporated by reference into the rule. These materials are available for review by the public during normal working hours at the Colorado Department of Human Services, Office of Enterprise Partnerships, Division of Boards and Commissions, State Board Administration.

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[Instructions: replace lines 2286005 through 2286033.] 
6.260.22  Opening a Case [Rev. eff. 9/15/12]
Within twenty (20) calendar days of receipt of an application or referral of a case, the Child Support Enforcement (CSE) Unit must: 
A.  Open a case by initiating a case record on the State approved automated child support system by following established procedures.
B.  For Title IV-A inter-county transfer cases, the new county must initiate the case on the automated child support system within five (5) working days of referral from IV-A in the new county.
C.  Determine necessary action needed.
D.  Solicit necessary information from the custodial party or other sources.
E.  Initiate verification of information.
F.  If location information is inadequate, refer the case for further location. 
G.  Initiate an automated ledger if an order for support exists, including posting Monthly Support Obligation to the correct class and initiating any arrears balances, if such information is known. If order information is unknown when the case is initiated, the ledger must be initiated within twenty (20) days of when the order information becomes available to the Child Support Enforcement Unit. 
6.260.23  Maintenance of Records [Rev. eff. 9/15/12]
A.  For all cases, the Child Support Enforcement Unit shall maintain a case record for each noncustodial parent or alleged father which contains all information collected pertaining to the case. Such information shall include, but is not limited to the following: 
1.  A chronological listing of information maintained on the State approved automated child support system. Such information shall include: 
a.  Any contacts with the recipient of IV-A, or a Low-Income Child Care Assistance recipient, or foster care placing parent who is required to cooperate with the Child Support Enforcement Unit, the date and reason, and the results of such contact;
b.  Any contacts with the non-PA or Low-Income Child Care Assistance custodial party for Child Support Enforcement services, the date and reason, and the results of such contact;
c.  Any contacts with the noncustodial parent, the date and reason therefore, and the results of such contact;
d.  Any contact with any other agency involved in the case.
e.  Actions taken to establish or modify a support obligation, establish child support debt, establish parentage, or enforce a support obligation, the dates and results;
f.  Identification of the reason for and date of case closure; and
g.  Any other significant actions taken regarding the case as deemed necessary for caseload documentation and management.
2.  The referral document received from the IV-A or foster care units, or the Application for Child Support Enforcement Services form;
3.  The written request from the recipient/applicant or the initiating jurisdiction in a responding intergovernmental case to terminate Child Support Enforcement services;
4.  Information Concerning Noncustodial Parent form, as prescribed by the State Department or similar county created form;
5.  A record of efforts to utilize local locate resources and the dates and results of these efforts;
6.  A copy of the court or administrative order;
7.  A copy of communications to and from the IV-A or the foster care program;
8.  A copy of communications to and from the State Department;
9.  A copy of communications to and from other Child Support Enforcement Units or agencies;
10.  A record of case categories and priorities assigned and reassigned to the case, the date of such determination, and identification of the individual who made the determination;
11.  A copy of notices to the noncustodial parent and decisions concerning contested arrears.
12.  An accurate and updated automated system ledger, including posting the court ordered Monthly Support Obligation and an accurate arrears balance. 
B.  Child Support Enforcement staff shall change case categories as prescribed by the state immediately on the automated child support system when the case is ready for the next activity in order to provide documentation that the time frames have been met. 

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[Instructions: replace lines 1783572 through 1783905.] 
6.800  COLLECTION
6.801  PROCESSING COLLECTIONS [Rev. eff. 9/15/12] 
6.801.1  Family Support Registry [Rev. eff. 9/15/12] 
A.  All support collections shall be receipted timely by the Family Support Registry and the county department of social services as prescribed by the state. 
B.  All child support collections receipted in the Family Support Registry or the county department of social services shall be processed on the automated child support system. 
6.801.2  Colorado Date of Receipt [Rev. eff. 9/15/12] 
Collections shall be entered on the automated child support system screens using the Colorado Date of Receipt. 
6.801.3  County Processes [Rev. eff. 9/15/12] 
The county department shall assure that procedures for processing the flow of support payments be established and maintained, including the following functions: 
A.  Establish, maintain, and employ procedures which assure that persons responsible for handling cash receipts of support payments are not responsible for accounting functions of processing and monitoring such payments;
B.  Ensure that only collections received by the Child Support Enforcement Unit or the Family Support Registry are recorded as IV-D payments on the Automated Child Support Enforcement System (ACSES) ledger or the Automated Child Support Enforcement System 360 series of screens and reported to the state office as child support enforcement collections;
C.  Establish, maintain, and employ procedures which assure that all support payments received are accounted for in the financial records; and,
D.  Establish, maintain, and employ procedures which provide for the allocation, distribution, and disbursement of child and spousal support payments and/or specific medical dollar order amounts. 
6.801.4  Information on Automated Systems [Rev. eff. 9/15/12] 
Amounts allocated, distributed, and disbursed according to the information available on the automated child support system, the Colorado Benefits Management System, and Trails regarding the public assistance or placement status of a child(ren) during an eligible month shall remain as such even if the eligibility or placement status of the child changes in the current or a later month. 
6.802  ALLOCATION [Rev. eff. 9/15/12] 
A.  The court-ordered Monthly Support Obligation (MSO) shall be posted each month on all IV-D ledgers where a current obligation is due for the current accounting month. The monthly support obligation shall be retroactively posted for each month that it was due for which the CSE Unit was responsible for enforcing the MSO that month, but it was previously not posted. 
B.  If there is a Monthly Medical Obligation (MMO) due, the entire monthly support obligation, monthly medical obligation, and arrears balances shall be posted on a manual ledger for all IV-D cases where a current medical obligation is due for the current accounting month. 
C.  Allocations shall be made at a child level. 
D.  All collections shall be allocated within two (2) business days after being receipted in the Family Support Registry or the Child Support Enforcement Unit. 
E.  All manual overrides of allocation on the automated child support system shall be documented in the automated child support system case chronology.
F.  Allocation to multiple arrears obligations on the same ledger shall prorate to class of balances as listed below under Section 6.802.2, “Collections on Cases with Support Orders”. 
G.  Allocation to multiple arrears obligations on the same ledger shall satisfy the most recent obligation first based on the beginning accrual date of the obligation. 
6.802.1  Voluntary Collections on Cases With No Support Orders [Rev. eff. 9/15/12] 
If collections are received on a case that has no support order established yet, the county will first initiate a voluntary ledger. The collections shall then be allocated to the ledger in the following order: 
A.  The collection will first satisfy any noncustodial parent erroneous disbursement ledger balance. 
B.  If there is any remaining amount, the user shall first post the Monthly Support Obligation to zero and then shall allocate the payment to the Monthly Support Obligation. 
6.802.2  Collections on Cases With Support Orders [Rev. eff. 9./15/12] 
All collections, except those from a federal income tax intercept or designated as a judgment payment, shall be allocated to the ledger as follows: 
A.  First, to the Monthly Support Obligation (MSO) where the Monthly Support Obligation has been posted for the current accounting month, prorated among each class of Monthly Support Obligation posted on the ledger. 
B.  Second, to a Monthly Medical Obligation (MMO) when there is a specific dollar amount ordered. 
C.  Third, to non-assigned arrears balances. Arrears payments are allocated in the following order to the various types of balances due.  Within those types of balances due, an arrears payment will allocate to: 1) non-IV-A, either never assistance or post assistance, ordered specific dollar amounts for medical, non-IV-E foster care, or non-IV-D, and 2) IV-A unassigned pre-assistance, and shall be prorated across ledger balances. 
1.  In-state current delinquency. 
2.  In-state non-judgment obligations.
3.  In-state judgment obligations.
4.  Out-of-state current delinquency.
5.  Out-of-state non-judgment obligations.
6.  Out-of-state judgment obligations.
D.  Fourth, to obligor erroneous disbursement ledger balances. 
E.  Fifth, to costs due, in the following order: 
1.  Judgment costs due the county. 
2.  In-state costs due the Child Support Enforcement Unit that incurred the cost. 
3.  Out-of-state costs due another state. 
4.  Costs due to the custodial party.
F.  Sixth, to Title IV-A or Title IV-E assigned arrears balances. Arrears payments are allocated in the following order to the various types of balances due, and shall be prorated across ledger balances: 
1.  In-state current delinquency.
2.  In-state non-judgment obligations. 
3.  In-state judgment obligations.
4.  Out-of-state current delinquency. 
5.  Out-of-state non-judgment obligations. 
6.  Out-of-state judgment obligations.
If there is a balance for IV-A assigned pre-assistance arrears for an accounting period prior to October 1, 2009, these arrears will be paid before permanently assigned arrears.
G.  Seventh, to prepay if an ongoing monthly support obligation exists. Counties must research the ledger to ensure that the payments should be considered prepay payments. 
H.  Eighth, to obligor over collect, if no obligation or arrears balance exists on the ledger. Counties must research the ledger to ensure that the payments should be considered over collect payments prior to disbursing to the obligor.
6.802.3  IRS Collections [Rev. eff. 9/15/12] 
Collections made via an IRS refund shall be allocated to the ledger as follows:
A.  First, to any pre-assistance arrears owed to the state. 
B.  Second, to title IV-A, Title IV-E, or medical assigned arrears balances. Arrears payments are allocated in the following order to the various types of balances due and shall be prorated across ledger balances: 
1.  In-state current delinquency. 
2.  In-state non-judgment obligations. 
3.  In-state judgment obligations.
4.  Out-of-state current delinquency. 
5.  Out-of-state non-judgment obligations. 
6.  Out-of-state judgment obligations.
C.  Third, to non-assigned arrears balances, including non-IV-A post, non-IV-A never, or non-IV-E. Arrears payments are allocated in the following order to the various types of balances due and shall be prorated across ledger balances: 
1.  In-state current delinquency.
2.  In-state non-judgment obligations.
3.  In-state judgment obligations.
4.  Out-of-state current delinquency.
5.  Out-of-state non-judgment obligations.
6.  Out-of-state judgment obligations.
D.  Fourth, to obligor over collect, and shall be refunded to the noncustodial parent.  If the intercepted collection was based on a joint tax return, the over collect refund will be issued in both joint filers' names.
6.802.4  Judgment Collections [Rev. eff. 9/15/12] 
Collections made specifically for a judgment arrears balance shall be allocated to the ledger as follows: 
A.  First, to the Monthly Support Obligation (MSO) where the Monthly Support Obligation has been posted for the current accounting month, prorated among each class of Monthly Support Obligation posted on the ledger. 
B.  Second, to a Monthly Medical Obligation (MMO) when there is a specified dollar amount ordered.
C.  Third, to non-assigned judgment balances, pro‑rated across ledger balances. 
D.  Fourth, to judgment costs due the department. 
E.  Fifth, to Title IV-A, Title IV-E, or medical assigned judgment balances, prorated across balances. Any assigned pre-assistance balance for an accounting period prior to October 1, 2009, shall be paid before a permanently assigned balance. 
F.  Sixth, to noncustodial parent over collect, if no obligation or arrears balance exists on the ledger. Counties must research the ledger to ensure that the payments should be considered over collect payments prior to disbursing to the obligor. 
6.803  DISTRIBUTION OF SUPPORT COLLECTIONS 
6.803.1  Distribution from a Title IV-A Allocation [Rev. eff. 9/15/12] 
Distribution of collections from a Title IV-A allocation shall be as follows: 
A.  Amounts applied to the monthly support obligation (MSO): 
1.  Shall apply towards any obligee unfunded disbursement balance. 
2.  Shall be used to reimburse the total unreimbused pubic assistance (UPA) provide to the family. 
3. Shall be sent to the family as excess over unreimbursed public assistance if there is no unreimbused public assistance (UPA) balance. 
B.  Amounts applied to a IV-A arrears balance shall first apply towards any obligee unfunded disbursement balance, and are then used to reimburse unreimbused public assistance and/or unreimbursed specific medical dollar order amounts. 
1.  Unreimbursed public assistance will be satisfied first in the enforcing county for all periods of public assistance, then Last in First Out (LIFO) for all other counties for all periods of public assistance for each county until all IV-A assigned arrears are collected. Payments to other counties will be made by means of an inter-county transfer of funds as prescribed by the state.
2.  In the event no other county has such monetary interest in the case, excess over unreimbursed public assistance will be paid to the obligee. 
6.803.2  Distribution From a Title IV-E Allocation [Rev. eff. 9/15/12] 
Distribution of collections from a Title IV-E allocation shall be as follows: 
A.  Amounts applied to the monthly support obligation (MSO): 
1.  Shall be used to reimburse the foster care maintenance payment for the month in which the maintenance payment was made.
2.  Shall be forwarded to the county business office to be applied according to the state’s reporting and accounting procedures, if the amounts applied to the monthly support obligation exceed the foster care maintenance payment.
3.  Amounts of the foster care maintenance payment that exceed the monthly support collection are added to the balance of unreimbursed maintenance payments (UMP).
B.  Amounts applied to Title IV-E assigned arrears balances: 
1.  Shall be used to reimburse unreimbursed maintenance payments.
2.  Shall be used to reimburse unreimbursed public assistance, if any exists on the case and there is no unreimbursed maintenance payments balance. Any remaining collections are paid to other counties that have a monetary interest in the case. 
Unreimbursed public assistance and/or unreimbursed maintenance payments will be satisfied first in the enforcing county for all periods of public assistance, then Last in First Out (LIFO) for all other counties for all periods of public assistance for each county until all IV-A or IV-E assigned arrears are collected. Payments to other counties will be made by means of an inter-county transfer of funds as prescribed by the state.
3.  In the event no other county has such monetary interest in the case: 
a.  Any remaining collections are forwarded to the county business office if the child is actively in placement at the time the payment was allocated; or, 
b.  Forwarded to the obligee if the child is not actively in placement at the time the payment was allocated. 
6.803.3  Distribution From a Non-IV-A Allocation [Rev. eff. 9/15/12] 
Distribution of collections from a non-IV-A allocation shall be as follows: 
A.  Amounts applied to the monthly support obligation (MSO) or any arrears balance: 
1.  Shall first apply towards any unfunded disbursement balance according to the agreement with the obligee.
2.  Shall then be applied to any non-PA service fee still owed by the obligee, whether or not such fee has already been reported to the federal government. 
3.  Shall be paid to the family.
4.  Amounts that represent payment on the required support obligation for future months shall be applied to those future months and shall be paid to the family.
B.  Non‑IV-A applicants shall be charged a twenty-five dollar ($25) certification fee only if an actual federal tax intercept occurs. The certification fee shall be deducted yearly from the first Federal Income Tax refund intercept that occurs, regardless of the number of obligors. If the total yearly amount of all tax refunds for a case is less than twenty-five dollars ($25), that amount will satisfy the certification fee. 
6.803.4  Distribution From a Non-IV-E Allocation [Rev. eff. 9/15/12] 
Distribution of collections from a non-IV-E allocation shall be as follows: 
All payments allocated to the current monthly amount due or to any arrears balances shall be forwarded to the county business office.
6.804  DISBURSEMENT OF SUPPORT COLLECTIONS [Rev. eff. 9/15/12] 
Any disbursement to a family shall be made to the resident parent, legal guardian, or caretaker relative having custody of or responsibility for the child(ren).
6.804.1  Disbursement From a Title IV-A Allocation [Rev. eff. 9/15/12] 
Disbursement of collections from a title IV-A allocation shall be as follows:
A.  Disbursements to excess over UPA shall be paid to the family within two (2) business days of the end of the month in which the collection was received if sufficient information identifying the payee is provided. 
B.  If the collection was received from a federal income tax return, the excess over unreimbursed public assistance payment must be sent to the family within thirty (30) calendar days of the Colorado initial date of receipt unless based on a joint tax return (see Section 6.804.6).
6.804.2  Disbursement From a Title IV-E Allocation [Rev. eff. 9/15/12] 
Disbursement of collections from a Title IV-E allocation shall be as follows: 
A.  Disbursements to the IV-E agency shall be forwarded to the business office within fifteen (15) business days of the end of the month in which the collection was received. 
B.  Disbursements to excess over UMP which are due to the obligee and not child welfare shall be paid to the obligee within two (2) business days of the end of the month in which the collection was received if sufficient information identifying the payee is provided. 
C.  If the collection was received from a federal income tax return, the collection must be forwarded to the IV-E agency or to the family as appropriate, within thirty (30) calendar days of the Colorado initial date of receipt unless based on a joint tax return (see Section 6.804.6). 
6.804.3  Disbursement from a Non-IV-A Allocation [Rev. eff. 9/15/12] 
Disbursement of collections from a non-IV-A allocation shall be as follows: 
A.  If any moneys are owed for the non-PA service fee, those moneys will be held from any disbursement being sent to the obligee, whether from the current monthly support obligation or from an arrears or judgment disbursement. 
B.  All disbursements for the monthly support amount and arrears amounts shall be paid to the family within two (2) business days from the Colorado initial date of receipt if sufficient information identifying the payee is provided unless the collection was received from a federal IRS tax return (see Section 6.804.6). 
6.804.4  Disbursement From a Non-IV-E Allocation [Rev. eff. 9/15/12] 
Disbursement of collections from a non-IV-E application shall be as follows: 
A.  Disbursements to child welfare shall be paid within fifteen (15) business days of the end of the month in which the collection was received. 
B.  If the collection was received from a federal income tax return, the collection must be forwarded to child welfare within thirty (30) calendar days of the Colorado initial date of receipt unless based on a joint tax return (see Section 6.804.6).
6.804.5  Disbursement in Intergovernmental Cases [Rev. eff. 9/15/12] 
Disbursement of collections on intergovernmental cases shall be as follows: 
A.  In responding intergovernmental cases, for which collections are made on behalf of another child support enforcement agency, the payment must be forwarded to the location specified by the initiating child support enforcement agency. Collections must be forwarded to the initiating child support enforcement agency within two (2) business days of the Colorado date of receipt if sufficient information identifying the payee is provided and within thirty (30) calendar days of the date the payment is received from tax offset collections. 
B.  In transmitting collections, the responding child support enforcement agency must provide the initiating child support enforcement agency with sufficient information to identify the case, the initial date of receipt, and the responding agency’s FIPS code.
6.804.6  Disbursements From Federal Income Tax Return Allocations [Rev. eff. 9/15/12] 
Disbursements of collections from federal income tax return allocations must be sent to the family within thirty (30) calendar days of the Colorado initial date of receipt, except if a disbursement is from a joint federal income tax refund, the county Child Support Enforcement Unit may delay disbursement to the family until: 
A.  The Child Support Enforcement Unit is notified that the unobligated spouse’s proper share of the refund has been paid; or,
B.  For a period not to exceed six months from notification of offset, whichever date is earlier.
C.  A disbursement to obligor over-collect must be sent within a reasonable time period.
6.804.7  Erroneous Intercept Collection [Rev. eff. 9/15/12] 
When an intercept collection is identified as an erroneous certification intercept collection such as the amount was not owed at the time of certification or the wrong person was intercepted, the Child Support Enforcement Unit shall refund the collection within two (2) working days from the time the erroneously intercepted person provides notice of intercept. This payment shall be disbursed even if the erroneous intercept collection has not been received by the county Child Support Enforcement Unit. 
6.804.8  Erroneous Collection From an Enforcement Remedy [Rev. eff. 9/15/12] 
When a collection from any enforcement remedy is identified as an erroneous withholding, the Child Support Enforcement Unit shall refund the withheld monies within two (2) working days from the date the obligor provides notice of erroneous withholding. This payment shall be disbursed to the obligor even if the erroneous withholding was not retained by the Child Support Enforcement Unit. 
6.805  ADMINISTRATIVE REVIEW OF CONTESTED ARREARS 
6.805.1  County Level Review [Rev. eff. 9/15/12] 
A.  The county department shall establish procedures for reviewing arrearage amounts that are to be reported to a consumer credit reporting agency or have been certified for the administrative offset program, administrative lien and levy, tax offset, lottery intercept, workers’ compensation attachment, state vendor offset program, gambling intercept, or license suspension. 
B.  Upon written request for an administrative review, within the time frame specified on the advance notice for reporting arrears to a consumer credit reporting agency, the pre‑offset notice for tax purposes, the notice of intercept of lottery winnings, the Administrative Lien and Attachment for workers’ compensation benefits, the notice for license suspension, the notice for administrative lien and levy, the notice for state vendor offset program, the notice of intercept of gambling winnings, or the notice for federal administrative offset program, the county Child Support Enforcement Unit shall: 
1.  Schedule and advise the obligor, and the obligee in a non‑public assistance case, of the date, time and place of the review and initiate administrative review information on the administrative review tracking system screen in the automated child support system. 
2.  Request from the obligor copies of any modifications of the support order. 
3.  Request from the obligor records of payments made by the obligor. 
4.  Advise the obligor this review is a review of the records only and not a judicial determination.
5.  Request proof from the obligor if he/she has contested being the obligor.
6.  Advise the obligor that a decision will be rendered within thirty (30) days of the request for a review.
C.  The county department shall notify the obligor that an administrative review will only be held if the request for an administrative review concerns an issue of mistaken identity of the obligor or the amount of arrearages specified on the advance notice for reporting to a consumer credit reporting agency, the pre-offset notice for tax offset, the notice for lottery intercept, administrative lien and attachment for workers’ compensation benefits, the notice of license suspension, the notice for federal administrative offset program, the notice for state vendor offset program, the notice of intercept of gambling winnings, or the notice for administrative lien and levy. 
D.  On the date established, the county department shall review the child support case record and the documents submitted by the obligor and determine the arrears. 
E.  Within ten (10) calendar days of the decision rendered, the county department shall update the automated child support system, take any additional action appropriate to reflect the decision, notify the obligor, and the obligee in a non-public assistance case, of the decision rendered. The written decision shall include the timeframes reviewed, balance due for that timeframe, court orders reviewed including the child support terms of those orders, payment records reviewed, and amounts credited based on those records. 
F.  The county department shall notify the obligor of his/her right to request a further review by the State Department. The obligor must be advised that the request must be made in writing and be received by the state office within thirty (30) calendar days of the mailing of the county decision to the obligor. 
6.805.2  State Level Review [Rev. eff. 9/15/12] 
Upon written request from the obligor to the State Department for review of arrearage amounts, that are to be reported to a consumer credit reporting agency, or have been certified for tax offset, for lottery intercept, for workers’ compensation benefits attachment, license suspension, federal administrative offset program, state vendor offset program, gambling intercept, and administrative lien and levy, the State Department shall 
A.  Determine if a county level administrative review occurred. 
1.  If not and the obligor is within the time frame specified on the notice, forward the request to the appropriate county and ensure that the county conducts an administrative review within thirty (30) calendar days of receiving the request from the State Department. 
2.  If not and the obligor is outside of the time frame specified on the notice, the obligor has lost the right to contest the arrears through the administrative review process. 
3.  If yes, set a date, time, and place for the review, which shall be within thirty (30) calendar days from the date the written request for review was received by the State Department.
B.  Provide a written notice to the obligor, and the obligee in a non-public assistance case, of the date, time, and place of the review. This notice shall contain a statement which advises the parties: 
1.  The only issues to be reviewed are a mistake in the identity of the obligor or a disagreement of the amount of arrears. 
2.  The review is a review of the records only and not a judicial determination. 
3.  The obligor must provide all records of his or her support payments. 
4.  That a decision will be rendered within thirty (30) days of the review. 
C.  Request that the county provide: 
1.  The records that established the arrearages; and, 
2.  A copy of its decision if not previously provided by the noncustodial parent.
D.  On the date established for the review, the State Department shall review the records and determine the arrears.  If more time is required to review the records or render a decision, the State Department may extend the time for rendering a decision by an additional thirty (30) days. 
E.  Within ten (10) calendar days of the decision rendered, the State Department shall notify, in writing, the obligor, the obligee in a non-public assistance case, and the county Child Support Enforcement Unit of the decision rendered. Any party shall have the right to appeal the decision. The written decision shall include the timeframes reviewed, balance due for those timeframes, court orders reviewed including the child support terms of those orders, payment records reviewed, and amount credited based on those records. 
F.  Update the Automated Child Support Enforcement system to reflect the administrative review. 
G.  A decision will be rendered within thirty (30) calendar days of the receipt of the written request for review unless the parties fail to provide the required information. 
6.805.21  Reflect Decision Rendered [Rev. eff. 9/15/12] 
The county department, upon receiving the decisions rendered by the State Department after a state level review, shall, within ten (10) calendar days, adjust the Automated Child Support Enforcement System records to reflect the decision rendered and take any additional action appropriate. 
6.805.3  Intergovernmental Review [Rev. eff. 9/15/12] 
Procedure for Reviewing arrearage amounts that have been certified and submitted for a federal income tax refund offset on an intergovernmental case.
A.  Within ten (10) calendar days of the receipt of a written request for an administrative review where Colorado is the submitting state and the requester has requested that the order-issuing state conduct the review or Colorado, as the submitting state, cannot resolve the matter, the county CSE Unit shall notify the order-issuing state and send all necessary information which was considered in the decision of an arrearage amount. Colorado, as the submitting state, shall be bound by the decision of the order-issuing state. 
B.  Within ten (10) calendar days of the receipt of a written request for an administrative review where Colorado is the order-issuing state and the requester has requested that the order-issuing state conduct the review or the submitting state cannot resolve the matter, the county Child Support Enforcement Unit shall: 
1.  Schedule and advise the obligor, and the obligee in a non‑public assistance case, and the other state, of the date, time, and place of the administrative review. 
2.  Advise the obligor, and the obligee in a non‑public assistance case and the other state that a decision will be rendered within forty‑five (45) calendar days of the receipt of the submitting state's request and information. 
3.  On the date established, the order-issuing state shall review the child support case record, and the documents submitted by the requester and forwarded by the submitting state, and determine the arrears.
4.  Within ten (10) calendar days of the decision rendered, the order-issuing state shall notify in writing, the obligor, the obligee, and the submitting state of the decision rendered.  The written decision shall include the timeframes reviewed, balance due for those timeframes, court orders reviewed including the child support terms of those orders, payment records reviewed, and amounts credited based on those records. 
5.  The county department shall notify the obligor of his/her right to request a further review by the State Department. The obligor must be advised that the request must be made in writing and be received by the state office within thirty (30) calendar days of the mailing of the county decision to the obligor. 
6.  The county department, upon receiving the decisions rendered by the other state shall, within ten (10) calendar days, adjust the Automated Child Support Enforcement System records to reflect the decision rendered and take any additional appropriate action. 
6.805.4  Administrative Review of Contested Distribution of Amounts Collected 
6.805.41  County Responsibility [Rev. eff. 9/15/12] 
A.  Following verbal or written contact from an obligee regarding questions or disagreement about distribution of amounts collected, the CSE unit shall review the distribution and respond verbally or in writing. The obligee must be advised that if there is still disagreement, he/she must submit a written request for an administrative review by the Child Support Enforcement Unit. 
B.  Within ten (10) calendar days of the receipt of a written request for an administrative review, the Child Support Enforcement unit shall: 
1.  Schedule and advise the obligee of the date, time and place of the review; 
2.  Request from the obligee copies of any modification of the support order that have not been previously provided to the Child Support Enforcement Unit; 
3.  Request from the obligee records of any payments made directly to the family from the obligor; 
4.  Advise the obligee that a written decision will be rendered within thirty (30) days of the date of the review; 
5.  Request from the obligee any other information to support his/her contention that the collections were distributed in error. 
C.  If the request for an administrative review concerns an issue other than the distribution of current support and/or arrearage payments, the Child Support Enforcement unit shall notify the obligee that a review will not be held. 
D.  On the date established for the administrative review, the Child Support Enforcement unit shall review the child support case record and any information submitted by the obligee and determine if the distribution of the amounts collected was correct. 
E.  The Child Support Enforcement unit shall promptly notify the obligee in writing of the decision rendered and will provide a copy of the decision to the State Department within five (5) days of the date the decision is rendered. 
F.  The Child Support Enforcement Unit shall notify the obligee in writing of his/her right to request a further review by the State Department. The obligee will be advised that the written request must be received by the state office within thirty (30) calendar days of the mailing of the county decision to the obligee. 
G.  The Child Support Enforcement Unit, upon receiving the decision rendered by the State Department after a state level review shall, within ten (10) calendar days, adjust the automated child support enforcement system records to reflect the decision rendered and take any additional action as appropriate.
6.805.42  State Responsibilities [Rev. eff. 9/15/12] 
Upon written request for further administrative review, the State Department shall:  
A.  Provide notice to the obligee, which shall contain: 
1.  A statement that the only issue to be reviewed is the distribution of current support and/or arrearage payments collected; 
2.  A statement that the review is a review of the records only and not a judicial determination and that the review will be limited to the documentation in the CSE file and any written material the obligee wishes to present. 
B.  Request from the CSE Unit or obtain from the automated child support system, the records used for the distribution;
C.  Request from the CSE Unit a copy of its decision;
D.  Request from the county records of support payment paid directly to the family which were provided by the obligee during the administrative review; 
E.  Advise the obligee that a written decision will be made within thirty calendar days of the receipt of the request;
F.  Advise the obligee of his/her right to appeal the state determination to State District Court on Judicial Review within thirty calendar days of the mailing of the decision.  
6.805.43  Notify of Decision Rendered [Rev. eff. 9/15/12] 
The State Department shall, within thirty days of the date of the state level review, promptly notify in writing the obligee and the county CSE Unit of the decision rendered.
6.805.5  Appeal of Joint Account Collection From FIDM [Rev. eff. 9/15/12] 
When a FIDM notice of lien and levy is made on a joint or shared ownership account, as defined at Section 15-15-201(5), C.R.S., the non-debtor account holder may appeal the seizure of his or her share of the funds (see Section 6.906.5), first through the Colorado Department of Human Services, Division of Child Support Enforcement, and then, if still disputed, judicially. If the appeal is approved, the Colorado Department of Human Services, Division of Child Support Enforcement, shall release all or part of the lien and levy within two (2) working days from the date the appeal decision is made by the Colorado Department of Human Services, Division of Child Support Enforcement, or within two working days of the receipt of the judicial order approving the appeal. In the event that the financial institution has already remitted payment to the Family Support Registry at the time of the appeal ruling, the payment shall be refunded to the non-debtor account holder pursuant to the appeal ruling. 
6.806  INTEREST [Rev. eff. 9/15/12] 
Collection of interest is optional for county Child Support Enforcement Units. If a county chooses to collect interest, the following rules shall apply. 
A.  Interest on support collections that are deposited in a financial institution in interest bearing accounts shall be used to reduce administrative costs as prescribed by the State Department.
B.  Interest collected through support arrears/debt shall be considered a support collection and shall be used to reduce the UPA/UMP balances or, for non‑IV-A cases, paid to the family.
1.  In order to collect interest on a Colorado order, the interest rate will be calculated as prescribed by the State Department on the balance past due at the current interest rate in effect as set forth in Sections 5-12-101 and 14‑14‑106, C.R.S.
2.  Interest on arrears balances will be calculated for a specific amount of arrearages/debt covering a specific period of time. The amount of interest will be listed separately from the amount listed for child support arrears/debt and shall be added to the IV-D ledger on the automated child support enforcement system using the appropriate interest adjustment reason codes. The two figures will be added together to show the total amount of judgment or non‑judgment balances.
3.  A county may charge interest on a Colorado child support order according to statute. If a county intends to calculate interest, it must: 
a.  Send a written notice to the obligor or his/her attorney of record, if one exists, that interest will be assessed on the order. 
b.  Only assess interest beginning with the date of the notice referenced in paragraph a, of this section. 
c.  Complete an updated interest calculation every six (6) months for all cases where notice, in paragraph a of this section, was provided and shall provide written notification of the amount of interest assessed to the obligor or his/her attorney of record, if one exists. 
4.  The county Child Support Enforcement Unit may waive the collection of interest if it wishes to use interest as a negotiating tool to reach a payment settlement on both public assistance and non‑public assistance cases. 
5.  Counties must collect interest on responding interjurisdictional cases if they are enforcing another agency’s order and the initiating jurisdiction requests collection of interest.
6.807  DISBURSEMENTS ON HOLD [Rev. eff. 9/15/12] 
A.  If a disbursement returns as undeliverable mail, if there is no existing address on the automated child support system, or if a disbursement has been reported as lost or stolen, the user shall put all disbursements for that ledger on hold until the issue is resolved.
B.  Child Support Enforcement Units shall ensure that procedures are established in the county to work the scheduled disbursements daily. 
C.  The county Child Support Enforcement Unit shall utilize all appropriate local, state, and federal sources to determine the location of the payee.  
D.  If the obligee cannot be located within ninety (90) calendar days of the original warrant issue date, the Child Support Enforcement worker shall allocate the payment(s) first to any obligor erroneous disbursement balance and second to any assigned arrears balance. 
E.  If there are no obligor erroneous disbursement or assigned arrears balances, the Child Support Enforcement worker shall allocate the payment to obligor over collect and disburse to the obligor. 
F.  If the obligor cannot be located within one hundred eighty (180) calendar days of the original warrant issue date, the Child Support Enforcement worker shall, by the one hundred eighty-first (181st) calendar day, mark the collection to transfer to the abandoned collections account on the disbursement record on the automated child support enforcement system. 
The automated child support enforcement system will automatically reimburse any obligee unfunded disbursement balance on the ledger before the payment is transferred to the abandoned collections account.
G.  If the payee requests payment of the disbursement once it has been transferred to the abandoned collections account, the transfer will be reversed through a problem log to the state office, and the disbursement will be scheduled. 
6.808  UNFUNDED DISBURSEMENTS [Rev. eff. 9/15/12] 
A.  The county Child Support Enforcement Unit shall make every reasonable effort to recover unfunded disbursements. 
B.  If the payment was allocated to the wrong account, the county Child Support Enforcement Unit shall allocate and disburse the payment to the correct account within five (5) working days of discovering the error, even if the county has not received a recovery from the payee who received the original disbursement. 
6.808.1  Notification [Rev. eff. 9/15/12] 
A.  The county Child Support Enforcement Unit must ensure that the obligee or the initiating jurisdiction has received notification of the unfunded disbursement prior to automatic recovery of the unfunded disbursement amount. This notification may occur through the application for Colorado Works, Child Support Enforcement services, or through the automated child support system noticing process. 
B.  The county Child Support Enforcement Unit must have an agreement with the obligee in order to recover the unfunded disbursement. If the obligee does not agree to the unfunded disbursement recovery, county Child Support Enforcement Units may pursue recovery through civil means or may write off the unfunded disbursement amount. 
C.  The notice of the unfunded disbursement amount will inform the obligee or the initiating jurisdiction of her/his responsibility to repay the balance and will state that failure to respond to the notice constitutes an agreement of her/his part. 
6.808.2  Recovery [Rev. eff. 9/15/12] 
A.  The primary contact county shall be responsible for any negotiations with the obligee and for ensuring that the statewide unfunded disbursement balance is paid. The automated child support enforcement system will determine the primary county. 
B.  Any county CSE Unit can accept a cash payment from the obligee to recover the unfunded disbursement amount.
C.  The automated process will recover one hundred percent (100%) of any Title IV-A distribution. County CSE staff can negotiate a percent or amount of recovery with the obligee on a non-IV-A distribution but the automated child support system will automatically recover at least ten percent (10%) of the payment or ten dollars ($10), whichever is greater.
6.808.3  Balance Statement [Rev. eff. 9/15/12] 
The county Child Support Enforcement Unit must send an unfunded disbursement balance statement to the obligee if one is requested. Balance statements requested on intergovernmental cases will be sent to the other agency. 
6.808.4  Balance Write-Off [Rev. eff. 9/15/12] 
The Automated Child Support Enforcement System will automatically write off unfunded disbursement balances for obligees who have no open cases anywhere in Colorado and with no financial history activity throughout the State for seven years.
6.809  CHILD SUPPORT INCENTIVE PAYMENTS [Rev. eff. 9/15/12] 
Child support incentives distributed to counties shall be the total amount of the federal incentives paid to the state plus no less than one-half of the state share of retained collections. Child support incentives shall be paid to counties quarterly. The federal and state share incentives shall be calculated separately but using the same formula.
6.809.1  Incentive Formula [Rev. eff. 9/15/12] 
The following formula to calculate incentives is used at the federal level to calculate incentives to distribute to states and shall be used in Colorado to calculate incentives to distribute to counties. 

A.	Two (2) X (collections for current and former IV-A and IV-E cases) + collections for non-PA and non-IV-E cases
	=	“Collections Base”	
B.	Total “collections base” X the weight 
for each performance measure
	=	County “collections base amount” for each performance measure	
C.	Convert each actual performance ratio using the conversion table
	=	“Performance incentive factor” for each performance measure	
E.	Each county’s “unadjusted incentive amount” ÷ state total of “unadjusted incentive amounts”
	=	Each county’s percent of the state “unadjusted incentive amount”	
F.	Each county’s percent of the “unadjusted incentive amount” X the statewide incentive to be distributed for each performance measure	=	“County incentive” for each performance measure	

G.	Sum of the “county incentive” for each performance measure	=	Total “county quarterly federal incentive payment” or “county quarterly state share incentive payment”
	
H.	Sum of county quarterly federal and state share incentives	=	Total “county quarterly incentive payment”	

6.809.2  Performance Measures [Rev. eff. 9/15/12] 
All incentives will be distributed to counties based on five (5) performance measures. Each performance measure will be calculated at the end of the quarter for each county.
A.  Paternity establishment percentage (PEP) is: 
The total number of children born out of wedlock in the IV-D caseload with paternity established as of the end of the present month divided by the total number of children born out of wedlock in the IV-D caseload as of the end of the corresponding month of the previous year.
B.  The percent of caseload with support orders is: 
The total number of cases with an order for support as of the end of the present month divided by the total number of cases in the caseload as of the end of the present month. 
C.  The percent of current support paid is: 
The total dollar amount of child support payments made to current monthly support obligations from the beginning of the year to the present time divided by the total dollar amount of current monthly support obligations due from the beginning of the year to the present time.
D.  The percent of arrears cases with a payment is: 
The total number of cases with a payment made to an arrears obligation or current delinquency balance during the previous 12 months divided by the total number of cases with an arrears obligation or current delinquency owed as of the end of the present month.
E.  The cost effectiveness ratio is: 
The total county combined collections divided by the total county administrative costs. 
The paternity establishment percentage, the percent of caseload with orders, and the percent of current support paid shall have a weight of one hundred percent (100%). The percent of arrears cases with a payment and the cost effectiveness ratio shall have a weight of seventy-five percent (75%).
6.809.3  “Statewide Incentive Amount” for Each Performance Measure [Rev. eff.9/15/12] 
The total amount of incentives to be distributed shall be the quarterly estimated incentive amount received from the federal government plus the state share incentive.
6.809.4  Conversion Tables [Rev. eff. 9/15/12] 
Each performance measure has a bottom threshold; no incentives will be paid for performance ratios below the bottom threshold. The bottom threshold is fifty percent (50%) for the paternity establishment percentage and the percent of caseload with orders. The bottom threshold of the table is forty percent (40%) for the percent of current support paid and the percent of arrears cases with a payment. 
Each performance ratio, except for the cost effectiveness ratio, converts, by means of the following table, to a performance incentive factor.

If the performance ratio is at least	But is less than	The performance incentive factor equals:	If the performance ratio is at least	But is less than	The performance incentive factor equals:	
80%		100%	59%	60%	69%	
79%	80%	98%	58%	59%	68%	
78%	79%	96%	57%	58%	67%	
77%	78%	94%	56%	57%	66%	
76%	77%	92%	55%	56%	65%	
75%	76%	90%	54%	55%	64%	
74%	75%	88%	53%	54%	63%	
73%	74%	86%	52%	53%	62%	
72%	73%	84%	51%	52%	61%	
71%	72%	82%	50%	51%	60%	
70%	71%	80%	49%	50%	59%	
69%	70%	79%	48%	49%	58%	
68%	69%	78%	47%	48%	57%	
67%	68%	77%	46%	47%	56%	
66%	67%	76%	45%	46%	55%	
65%	66%	75%	44%	45%	54%	
64%	65%	74%	43%	44%	53%	
63%	64%	73%	42%	43%	52%	
62%	63%	72%	41%	42%	51%	
61%	62%	71%	40%	41%	50%	
60%	61%	70%				

The cost effectiveness ratio converts, by means of the following table, to a performance incentive factor. No incentives will be paid for a cost effectiveness ratio under two dollars ($2.00). 

If the CER is at least	But is less than	The performance incentive factor equals:	
$5.00	--	100%	
$4.50	$4.99	90%	
$4.00	$4.49	80%	
$3.50	$3.99	70%	
$3.00	$3.49	60%	
$2.50	$2.99	50%	
$2.00	$2.49	40%	

6.809.5  Adjustment [Rev. eff. 9/15/12] 
An annual adjustment will be done at the end of the federal fiscal year, replacing the estimated state incentive with the actual statewide incentive payment received from the federal office of Child Support Enforcement. The adjustment is done in the quarter following the date the state office receives the adjustment letter from the federal office. The adjusted amounts are incorporated into the current quarter’s incentive payments. If there are counties that have a negative incentive amount in the adjusted quarter, they will be billed for this amount by the state Division of Accounting. 
6.809.6  Reinvestment [Rev. eff. 9/15/12] 
A.   Federal regulations require that all federal incentives received be reinvested into the child support program to ensure continued improvement, adequate resources, and maintenance of a high performance level for the child support enforcement program. 
B.  When a county’s federal incentives for a calendar year exceed the county thirty-four percent (34%) share of county administrative expenditures, the county shall demonstrate to the state Child Support Enforcement Unit how the excess federal incentives are reinvested in the child support program. Counties shall report this information to the state Child Support Enforcement Unit within two calendar years of receipt of the federal incentives, or if counties are unable or unwilling to reinvest the federal incentives in the child support program, they shall return that amount to the state office. 
C.  Counties must gain state approval of any plan to reinvest federal incentives that exceed their thirty-four percent (34%) share of county administrative expenditures by presenting to the state Child Support Enforcement Unit a written proposal of their plan.  The reinvestment can be made directly into the Child Support Enforcement program or can be made to a program not approved for IV-D federal participation of expenditures, as long as the county can demonstrate to the state office how the proposed program will benefit the Child Support Enforcement program. The cost effectiveness ratio converts, by means of the following table, to a performance incentive factor.  No incentives will be paid for a cost effectiveness ratio under two dollars ($2.00). 

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