9 Colo. Code Regs. § 2504-1-6.809

Current through Register Vol. 47, No. 24, December 25, 2024
Section 9 CCR 2504-1-6.809 - CHILD SUPPORT INCENTIVE PAYMENTS
A. Child support incentives distributed to counties shall be the total amount of the federal incentives paid to the state, excluding amounts described in paragraph B of this section, plus no less than 50% of the state share of retained collections. However, beginning 01/01/2020 if the Federal Medical Assistance Percentages (FMAP) rate is greater than 50%; then the share of retained collections distributed to the counties will default to the share percentage remaining after the federal government is reimbursed based on the current FMAP rate. Reimbursement pursuant to the FMAP rate might result in counties receiving less than 50% of the retained collections. The share of retained collections paid to the counties shall never exceed 50%. In the event that the share of retained collections to be distributed to the counties is less than 50%, the state division of child support services must issue notice to the counties within 91 days of the determination that the share of retained collections is less than 50%. Child support incentives shall be paid to counties quarterly. The federal and state share incentives shall be calculated separately but using the same formula.
B. Beginning in federal fiscal year 2024, a percentage of the federal incentives received by the state may be retained for the purposes of information technology enhancements to the ACSES, if approved by majority vote by the Policy Advisory Committee.
1. Beginning in federal fiscal year 2024, the State Division of Child Support Services shall annually submit a proposal to the Policy Advisory Committee containing:
a. The dollar amount of federal incentives available to be retained, pursuant to section 26-13-112.5, C.R.S.;
b. The recommendation of the IV-D Task Force regarding technology enhancements to be funded with federal incentives; and
c. A cost estimate of each recommended enhancement.
6.809.1Incentive 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"

6.809.2Performance Measures

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.

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

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.

6.809.4Conversion 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%

6.809.5Adjustment

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.

6.809.6Reinvestment [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 services 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 Services Unit how the excess federal incentives are reinvested in the child support program. Counties shall report this information to the state Child Support Services 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 Services Unit a written proposal of their plan. The reinvestment can be made directly into the Child Support Services 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 Services 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).

9 CCR 2504-1-6.809

39 CR 23, December 10, 2016, effective 1/1/2017
40 CR 21, November 10, 2017, effective 12/1/2017
42 CR 11, June 10, 2019, effective 6/30/2019
43 CR 17, September 10, 2020, effective 9/30/2020
43 CR 21, November 10, 2020, effective 12/1/2020
44 CR 23, December 10, 2021, effective 1/1/2022
45 CR 01, January 10, 2022, effective 3/1/2022
46 CR 11, June 10, 2023, effective 7/1/2023
46 CR 17, September 10, 2023, effective 10/1/2023