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" |
Incentives distributed to counties will be based on five (5) performance measures. Each performance measure will be calculated at the end of the quarter for each county.
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.
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.
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.
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.
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%).
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, excluding amounts described in section 6.809.B.
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% |
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, excluding amounts described in section 6.809.B. 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.
9 CCR 2504-1-6.809