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CFR Part 305 |
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Home > Federal Information > Code of Federal Regulations > Part 305 [ Part 301 ][ Part 302 ][ Part 303 ][ Part 304 ][ Part 307 ] [Code of Federal Regulations] PART 305 AUDIT AND PENALTY Sec. 305.0 Scope. This part implements the requirements in sections 452(a)(4) and 403(h) of the Act for an audit, at least once every three years, of the effectiveness of State Child Support Enforcement programs under title IV-D and for a possible reduction in Federal reimbursement for a State's title IV-A program pursuant to sections 403(h) and 404(d) of the Act. Sections 305.10 through 305.13 describe the audit. Section 305.20 sets forth audit criteria and subcriteria the Office will use to determine program effectiveness and defines an effective program for purposes of an audit. Section 305.98 sets forth the performance indicators the Office will use to determine State IV-D program effectiveness. Section 305.99 provides for the issuance of a notice and corrective action period if a State is found by the Secretary not to have an effective IV- D program. Section 305.100 provides for the imposition of a penalty if a State is found by the Secretary not to have had an effective program and to have failed to take corrective action and achieve substantial compliance within the period prescribed by the Secretary. [59 FR 66251, Dec. 23, 1994] Sec. 305.1 Definitions. The definitions found in Sec. 301.1 of this chapter are also applicable to this part. [59 FR 66251, Dec. 23, 1994] Sec. 305.10 Timing and scope of audit. (a) The Office will conduct an audit in accordance with sections 452(a)(4) and 403(h) of the Act, at least once every three years, to evaluate the effectiveness of each State's program in carrying out the purposes of title IV-D of the Act and to determine that the program meets the title IV-D requirements. The audit of each State's program will be a comprehensive review using the criteria prescribed in Secs. 305.20 and 305.98 of this part. (b) The Office will conduct an annual comprehensive audit in the case of a State that is being penalized. For a State operating under a corrective action plan, the review at the end of the corrective action period will cover only the criteria specified in the notice of non- compliance as prescribed in Sec. 305.99 of this part. (c) During the course of the audit, the Office will: (1) Make a critical investigation of the State's IV-D program through inspection, inquiries, observation, and confirmation; and (2) Use the audit standards promulgated by the Comptroller General of the United States in ``Government Auditing Standards.'' [50 FR 40140, Oct. 1, 1985; 50 FR 49392, Dec. 2, 1985, as amended at 59 FR 66252, Dec. 23, 1994] Sec. 305.11 Audit period. The audit will cover a period comprised of any 12 consecutive months. When the State is operating under a corrective action plan, the review will cover the first three-month period after the corrective action period. When the State fails to meet audit criteria related to the performance indicator under Sec. 305.98 of this part, the review will cover the first full four quarters following the end of the corrective action period. The audit may, at State request, be conducted prior to the end of the one-year period prescribed under Sec. 305.10(b) of this part when the State is being penalized under Sec. 305.100 of this part. [55 FR 8467, Mar. 8, 1990] Sec. 305.12 State comments. (a) Prior to the start of the actual audit, the Office will hold an audit entrance conference with the IV-D agency. At that conference, the Office will explain how the audit will be performed and make any necessary arrangements. (b) Prior to concluding the audit fieldwork, the Office will afford the State IV-D agency an opportunity for an audit exit conference at which time preliminary audit findings will be discussed and the IV-D agency may present any additional matter it believes should be considered in the audit findings. (c) At the conclusion of the audit fieldwork, the Office will prepare and send to the IV-D agency a copy of its interim report on the results of the audit. Within 45 days from the date the report was sent by certified mail, the IV-D agency may submit written comments on any part of the report which the IV-D agency believes to be in error. The Office will incorporate such comments, if any, into the final audit report. [41 FR 55348, Dec. 20, 1976, as amended at 59 FR 66252, Dec. 23, 1994] Sec. 305.13 State cooperation in annual audit. (a) Each State shall make available to the Office such records or other supporting documentation as the Office's audit staff may request. The State shall also make available personnel associated with the State's IV-D program to provide answers which the audit staff may find necessary in order to conduct or complete the audit. (b) Failure to comply with the requirements of this section may necessitate a finding that the State has failed to comply with the particular criteria being audited. Sec. 305.98 Performance indicators and audit criteria. (a) Beginning with the fiscal year 1986 audit period, the Office will use the following performance indicators in determining whether each State has an effective IV-D program. (1) AFDC IV-D collections divided by total IV-D expenditures (less laboratory cost incurred in determining paternity at State option); (2) Non-AFDC IV-D collections divided by total IV-D expenditures (less laboratory costs incurred in determining paternity at State option); and (3) AFDC IV-D collections divided by IV-A assistance payments (Less payments to unemployed parents). (b) Beginning with the fiscal year 1988 audit period, the Office will use the performance indicators prescribed in paragraph (a) of this section and the following performance indicators in determining whether each State has an effective IV-D program. (1) AFDC IV-D collections on support due (for a fiscal year) divided by total AFDC support due (for the same fiscal year); (2) Non-AFDC IV-D collections on support due (for a fiscal year) divided by total non-AFDC support due (for the same fiscal year); (3) AFDC IV-D collections on support due (for prior periods) divided by total AFDC support due (for the same periods); and (4) Non-AFDC IV-D collection on support due (for prior periods) divided by total non-AFDC support due (for the same periods). (c) The Office shall use the following procedures and audit criteria to measure State performance. (1) The ratio for each of the performance indicators in paragraph (a) of this section will be evaluated on the basis of the scores in the tables in paragraphs (c)(1)(i) through (iii) of this section. The tables show the scores the States will receive for different levels of performance. (i) Dollar of AFDC IV-D collections per dollar of total IV-D expenditures (less laboratory costs incurred in determining paternity at State option). ------------------------------------------------------------------------ Level of performance Score ------------------------------------------------------------------------ $.00......................................................... 0 $.01-$.09.................................................... 2 $.10-$.19.................................................... 4 $.20-$.29.................................................... 6 $.30-$.39.................................................... 8 $.40-$.49.................................................... 10 $.50-$.59.................................................... 12 $.60-$.69.................................................... 14 $.70-$.79.................................................... 16 $.80-$.89.................................................... 18 $.90-$.99.................................................... 20 $1.00-$1.19.................................................. 22 $1.20-$1.39.................................................. 24 $1.40 or more................................................ 25 ------------------------------------------------------------------------ (ii) Dollar of non-AFDC IV-D collections per dollar of total IV-D expenditures (less laboratory costs incurred in determining paternity at State option). ------------------------------------------------------------------------ Level of performance Score ------------------------------------------------------------------------ $.00......................................................... 0 $.01-$.09.................................................... 4 $.10-$.19.................................................... 8 $.20-$.29.................................................... 12 $.30-$.39.................................................... 16 $.40-$.49.................................................... 20 $.50-$.59.................................................... 24 $.60-$.69.................................................... 28 $.70-$.79.................................................... 32 $.80-$.89.................................................... 36 $.90-$.99.................................................... 40 $1.00-$1.19.................................................. 44 $1.20-$1.39.................................................. 48 $1.40 or more................................................ 50 ------------------------------------------------------------------------ (iii) AFDC IV-D collections divided by IV-A assistance payments (less payments to unemployed parents). ------------------------------------------------------------------------ Level of performance (in percent) Score ------------------------------------------------------------------------ 0 to 1.9 percent............................................. 0 2 to 3.9 percent............................................. 5 4 to 4.9 percent............................................. 10 5 to 5.9 percent............................................. 15 6 to 6.9 percent............................................. 20 7 or more.................................................... 25 ------------------------------------------------------------------------ (2) To be found to meet the audit criteria, a State's total score must equal or exceed 70. Examples. A State achieves levels of performance of $1.22, $1.35 and 6.5 percent on the performance indicators in paragraph (a) of this section. The State would receive individual scores of 24, 48 and 20 on these performance indicators. The State would be found to meet the audit criteria because the total score is 92. A State achieves levels of performance of $.65, $.65 and 2.5 percent on the performance indicators in paragraph (a) of this section. The State would receive individual scores of 14, 28 and 5 on these performance indicators. The State would be found not to meet the audit criteria because the total score is 47. A State achieves levels of performance of $.92, $.96 and 4.2 percent on the performance indicators in paragraph (a) of this section. The State would receive individual scores of 20, 40 and 10 on these performance indicators. The State would be found to meet the audit criteria because the total score is 70. (d) The scoring system provided in paragraph (c) of this section will be described and updated whenever OCSE determines that it is necessary and appropriate by the Office in regulations. [50 FR 40144, Oct. 1, 1985; 50 FR 49392, Dec. 2, 1985; 59 FR 66253, Dec. 23, 1994] Sec. 305.99 Notice and corrective action period. (a) If a State is found by the Secretary on the basis of the results of the audit described in this part not to comply substantially with the requirements of title IV-D of the Act, as implemented by chapter III of this title, the Office will notify the State in writing of such finding. (b) The notice will: (1) Cite the State for noncompliance, list the unmet audit criteria, apply a penalty and give reasons for the Secretary's finding; (2) Identify any audit criteria listed in Sec. 305.20(a)(3) of this part that the State met only marginally [that is, in 75 to 80 percent of cases reviewed for criteria in Sec. 305.20(a)(3)]; (3) Specify that the penalty may be suspended if the State meets the conditions specified in paragraph (c) of this section; and (4) Specify the conditions that result in terminating the suspension of the penalty as specified in paragraph (d) of this section. (c) The penalty will be suspended for a period not to exceed one year from the date of the notice if the following conditions are met: (1) Within 60 days of the date of the notice, the State submits a corrective action plan to the appropriate Regional Office which contains a corrective action period not to exceed one year from the date of the notice and which contains steps necessary to achieve substantial compliance with the requirements of title IV-D of the Act; (2) The corrective action plan and any amendment are: (i) Approved by the Secretary within 30 days of receipt of the corrective action plan; or (ii) Approved automatically because the Secretary took no action within the period specified in paragraph (c)(2)(i) of this section; and (3) The Secretary finds that the corrective action plan (or any amendment to it approved by the Secretary) is being fully implemented by the State and that the State is progressing to achieve substantial compliance with the unmet criteria cited in the notice. (d) The suspension of the penalty will continue until such time as the Secretary determines that: (1) The State has achieved substantial compliance with the unmet criteria cited in the notice and maintained substantial compliance with any marginally-met criteria cited in the notice; (2) During the corrective action period, the State is not implementing its corrective action plan; or (3) The State has implemented its corrective action plan but has failed to achieve substantial compliance with the unmet criteria cited in the notice and maintain substantial compliance with any marginally- met criteria cited in the notice. For State plan-related criteria, this determination will be made as of the first full three-month period after the corrective action period. For performance indicator-related criteria, this determination will be made as of the first full four quarters following the end of the corrective action period. (e) A corrective action plan disapproved under paragraph (c) of this section is not subject to appeal. (f) Only one corrective action period is provided to a State in relation to a given criterion when consecutive findings of noncompliance are made on that criterion. (Approved by the Office of Management and Budget under control number 0960-0385) [50 FR 40145, Oct. 1, 1985; 50 FR 49392, Dec. 2, 1985, as amended at 51 FR 37732, Oct. 24, 1986; 55 FR 8468, Mar. 8, 1990; 59 FR 66253, Dec. 23, 1994] Sec. 305.100 Penalty for failure to have an effective support enforcement program. (a) If the Secretary finds, on the basis of the results of the audit described in this part, that a State's program does not substantially meet the requirements in title IV-D of the Act, as implemented by chapter III of this title, and the State does not achieve substantial compliance with those requirements identified in the notice within the corrective action period approved by the Secretary under Sec. 305.99(c) of this part and maintain compliance in areas cited in the notice as marginally acceptable under Sec. 305.99(b)(2) of this part, total payments to the State under title IV-A of the Act will be reduced for the period prescribed in paragraph (c) or (d) of this section by: (1) Not less than one nor more than two percent of such payments for a period beginning in accordance with paragraph (c) or (d) of this section not to exceed the one-year period following the end of the suspension period; (2) Not less than two nor more than three percent of such payments if the finding is the second consecutive finding made as a result of an audit for a period beginning as of the second one-year period following the suspension period not to exceed one year; or (3) Not less than three nor more than five percent of such payments if the finding is the third or subsequent consecutive finding as a result of an audit for a period beginning as of the third one-year period following the suspension period. (b) In the case of a State that has achieved substantial compliance with the unmet criteria identified in the notice and maintained substantial compliance with any marginally-met criteria identified in the notice within the corrective action period approved by the Secretary under Sec. 305.99 of this part, the penalty will not be applied. (c) In the case of a State whose penalty suspension ends because the State is not implementing its corrective action plan, the penalty will be applied as if the suspension had not occurred. (d) In the case of a State whose penalty suspension ends because the State is implementing its corrective action plan but has failed to achieve substantial compliance with the unmet criteria identified in the notice or maintain substantial compliance with any marginally-met criteria identified in the notice within the corrective action period approved by the Secretary under Sec. 305.99 of this part, the penalty will be effective for any quarter that ends after the expiration of the suspension period until the first quarter throughout which the State IV- D program is in substantial compliance with the requirements of title IV-D of the Act. (e) A consecutive finding under paragraph (a)(2) or (3) of this section occurs only when the State does not achieve substantial compliance with the same criterion or criteria. (f) Any reduction required to be made under this section shall be made pursuant to Sec. 205.146(d) of this title. (g) The reconsideration of penalty imposition provided for by Sec. 205.146(e) of this title shall be applicable to any reduction made pursuant to this section. [50 FR 40145, Oct. 1, 1985; 50 FR 49392, Dec. 2, 1985; 55 FR 8468, Mar. 8, 1990] PART 306 [RESERVED] Federal web site where this Code can be found [ Part 301 ][ Part 302 ][ Part 303 ][ Part 304 ][ Part 305 ][ Part 307 ] [ Part 301 ][ Part 302 ][ Part 303 ][ Part 304 ][ Part 305 ][ Part 307 ] [Code of Federal Regulations] PART 305 AUDIT AND PENALTY Sec. 305.0 Scope. This part implements the requirements in sections 452(a)(4) and 403(h) of the Act for an audit, at least once every three years, of the effectiveness of State Child Support Enforcement programs under title IV-D and for a possible reduction in Federal reimbursement for a State's title IV-A program pursuant to sections 403(h) and 404(d) of the Act. Sections 305.10 through 305.13 describe the audit. Section 305.20 sets forth audit criteria and subcriteria the Office will use to determine program effectiveness and defines an effective program for purposes of an audit. Section 305.98 sets forth the performance indicators the Office will use to determine State IV-D program effectiveness. Section 305.99 provides for the issuance of a notice and corrective action period if a State is found by the Secretary not to have an effective IV- D program. Section 305.100 provides for the imposition of a penalty if a State is found by the Secretary not to have had an effective program and to have failed to take corrective action and achieve substantial compliance within the period prescribed by the Secretary. [59 FR 66251, Dec. 23, 1994] Sec. 305.1 Definitions. The definitions found in Sec. 301.1 of this chapter are also applicable to this part. [59 FR 66251, Dec. 23, 1994] Sec. 305.10 Timing and scope of audit. (a) The Office will conduct an audit in accordance with sections 452(a)(4) and 403(h) of the Act, at least once every three years, to evaluate the effectiveness of each State's program in carrying out the purposes of title IV-D of the Act and to determine that the program meets the title IV-D requirements. The audit of each State's program will be a comprehensive review using the criteria prescribed in Secs. 305.20 and 305.98 of this part. (b) The Office will conduct an annual comprehensive audit in the case of a State that is being penalized. For a State operating under a corrective action plan, the review at the end of the corrective action period will cover only the criteria specified in the notice of non- compliance as prescribed in Sec. 305.99 of this part. (c) During the course of the audit, the Office will: (1) Make a critical investigation of the State's IV-D program through inspection, inquiries, observation, and confirmation; and (2) Use the audit standards promulgated by the Comptroller General of the United States in ``Government Auditing Standards.'' [50 FR 40140, Oct. 1, 1985; 50 FR 49392, Dec. 2, 1985, as amended at 59 FR 66252, Dec. 23, 1994] Sec. 305.11 Audit period. The audit will cover a period comprised of any 12 consecutive months. When the State is operating under a corrective action plan, the review will cover the first three-month period after the corrective action period. When the State fails to meet audit criteria related to the performance indicator under Sec. 305.98 of this part, the review will cover the first full four quarters following the end of the corrective action period. The audit may, at State request, be conducted prior to the end of the one-year period prescribed under Sec. 305.10(b) of this part when the State is being penalized under Sec. 305.100 of this part. [55 FR 8467, Mar. 8, 1990] Sec. 305.12 State comments. (a) Prior to the start of the actual audit, the Office will hold an audit entrance conference with the IV-D agency. At that conference, the Office will explain how the audit will be performed and make any necessary arrangements. (b) Prior to concluding the audit fieldwork, the Office will afford the State IV-D agency an opportunity for an audit exit conference at which time preliminary audit findings will be discussed and the IV-D agency may present any additional matter it believes should be considered in the audit findings. (c) At the conclusion of the audit fieldwork, the Office will prepare and send to the IV-D agency a copy of its interim report on the results of the audit. Within 45 days from the date the report was sent by certified mail, the IV-D agency may submit written comments on any part of the report which the IV-D agency believes to be in error. The Office will incorporate such comments, if any, into the final audit report. [41 FR 55348, Dec. 20, 1976, as amended at 59 FR 66252, Dec. 23, 1994] Sec. 305.13 State cooperation in annual audit. (a) Each State shall make available to the Office such records or other supporting documentation as the Office's audit staff may request. The State shall also make available personnel associated with the State's IV-D program to provide answers which the audit staff may find necessary in order to conduct or complete the audit. (b) Failure to comply with the requirements of this section may necessitate a finding that the State has failed to comply with the particular criteria being audited. Sec. 305.98 Performance indicators and audit criteria. (a) Beginning with the fiscal year 1986 audit period, the Office will use the following performance indicators in determining whether each State has an effective IV-D program. (1) AFDC IV-D collections divided by total IV-D expenditures (less laboratory cost incurred in determining paternity at State option); (2) Non-AFDC IV-D collections divided by total IV-D expenditures (less laboratory costs incurred in determining paternity at State option); and (3) AFDC IV-D collections divided by IV-A assistance payments (Less payments to unemployed parents). (b) Beginning with the fiscal year 1988 audit period, the Office will use the performance indicators prescribed in paragraph (a) of this section and the following performance indicators in determining whether each State has an effective IV-D program. (1) AFDC IV-D collections on support due (for a fiscal year) divided by total AFDC support due (for the same fiscal year); (2) Non-AFDC IV-D collections on support due (for a fiscal year) divided by total non-AFDC support due (for the same fiscal year); (3) AFDC IV-D collections on support due (for prior periods) divided by total AFDC support due (for the same periods); and (4) Non-AFDC IV-D collection on support due (for prior periods) divided by total non-AFDC support due (for the same periods). (c) The Office shall use the following procedures and audit criteria to measure State performance. (1) The ratio for each of the performance indicators in paragraph (a) of this section will be evaluated on the basis of the scores in the tables in paragraphs (c)(1)(i) through (iii) of this section. The tables show the scores the States will receive for different levels of performance. (i) Dollar of AFDC IV-D collections per dollar of total IV-D expenditures (less laboratory costs incurred in determining paternity at State option). ------------------------------------------------------------------------ Level of performance Score ------------------------------------------------------------------------ $.00......................................................... 0 $.01-$.09.................................................... 2 $.10-$.19.................................................... 4 $.20-$.29.................................................... 6 $.30-$.39.................................................... 8 $.40-$.49.................................................... 10 $.50-$.59.................................................... 12 $.60-$.69.................................................... 14 $.70-$.79.................................................... 16 $.80-$.89.................................................... 18 $.90-$.99.................................................... 20 $1.00-$1.19.................................................. 22 $1.20-$1.39.................................................. 24 $1.40 or more................................................ 25 ------------------------------------------------------------------------ (ii) Dollar of non-AFDC IV-D collections per dollar of total IV-D expenditures (less laboratory costs incurred in determining paternity at State option). ------------------------------------------------------------------------ Level of performance Score ------------------------------------------------------------------------ $.00......................................................... 0 $.01-$.09.................................................... 4 $.10-$.19.................................................... 8 $.20-$.29.................................................... 12 $.30-$.39.................................................... 16 $.40-$.49.................................................... 20 $.50-$.59.................................................... 24 $.60-$.69.................................................... 28 $.70-$.79.................................................... 32 $.80-$.89.................................................... 36 $.90-$.99.................................................... 40 $1.00-$1.19.................................................. 44 $1.20-$1.39.................................................. 48 $1.40 or more................................................ 50 ------------------------------------------------------------------------ (iii) AFDC IV-D collections divided by IV-A assistance payments (less payments to unemployed parents). ------------------------------------------------------------------------ Level of performance (in percent) Score ------------------------------------------------------------------------ 0 to 1.9 percent............................................. 0 2 to 3.9 percent............................................. 5 4 to 4.9 percent............................................. 10 5 to 5.9 percent............................................. 15 6 to 6.9 percent............................................. 20 7 or more.................................................... 25 ------------------------------------------------------------------------ (2) To be found to meet the audit criteria, a State's total score must equal or exceed 70. Examples. A State achieves levels of performance of $1.22, $1.35 and 6.5 percent on the performance indicators in paragraph (a) of this section. The State would receive individual scores of 24, 48 and 20 on these performance indicators. The State would be found to meet the audit criteria because the total score is 92. A State achieves levels of performance of $.65, $.65 and 2.5 percent on the performance indicators in paragraph (a) of this section. The State would receive individual scores of 14, 28 and 5 on these performance indicators. The State would be found not to meet the audit criteria because the total score is 47. A State achieves levels of performance of $.92, $.96 and 4.2 percent on the performance indicators in paragraph (a) of this section. The State would receive individual scores of 20, 40 and 10 on these performance indicators. The State would be found to meet the audit criteria because the total score is 70. (d) The scoring system provided in paragraph (c) of this section will be described and updated whenever OCSE determines that it is necessary and appropriate by the Office in regulations. [50 FR 40144, Oct. 1, 1985; 50 FR 49392, Dec. 2, 1985; 59 FR 66253, Dec. 23, 1994] Sec. 305.99 Notice and corrective action period. (a) If a State is found by the Secretary on the basis of the results of the audit described in this part not to comply substantially with the requirements of title IV-D of the Act, as implemented by chapter III of this title, the Office will notify the State in writing of such finding. (b) The notice will: (1) Cite the State for noncompliance, list the unmet audit criteria, apply a penalty and give reasons for the Secretary's finding; (2) Identify any audit criteria listed in Sec. 305.20(a)(3) of this part that the State met only marginally [that is, in 75 to 80 percent of cases reviewed for criteria in Sec. 305.20(a)(3)]; (3) Specify that the penalty may be suspended if the State meets the conditions specified in paragraph (c) of this section; and (4) Specify the conditions that result in terminating the suspension of the penalty as specified in paragraph (d) of this section. (c) The penalty will be suspended for a period not to exceed one year from the date of the notice if the following conditions are met: (1) Within 60 days of the date of the notice, the State submits a corrective action plan to the appropriate Regional Office which contains a corrective action period not to exceed one year from the date of the notice and which contains steps necessary to achieve substantial compliance with the requirements of title IV-D of the Act; (2) The corrective action plan and any amendment are: (i) Approved by the Secretary within 30 days of receipt of the corrective action plan; or (ii) Approved automatically because the Secretary took no action within the period specified in paragraph (c)(2)(i) of this section; and (3) The Secretary finds that the corrective action plan (or any amendment to it approved by the Secretary) is being fully implemented by the State and that the State is progressing to achieve substantial compliance with the unmet criteria cited in the notice. (d) The suspension of the penalty will continue until such time as the Secretary determines that: (1) The State has achieved substantial compliance with the unmet criteria cited in the notice and maintained substantial compliance with any marginally-met criteria cited in the notice; (2) During the corrective action period, the State is not implementing its corrective action plan; or (3) The State has implemented its corrective action plan but has failed to achieve substantial compliance with the unmet criteria cited in the notice and maintain substantial compliance with any marginally- met criteria cited in the notice. For State plan-related criteria, this determination will be made as of the first full three-month period after the corrective action period. For performance indicator-related criteria, this determination will be made as of the first full four quarters following the end of the corrective action period. (e) A corrective action plan disapproved under paragraph (c) of this section is not subject to appeal. (f) Only one corrective action period is provided to a State in relation to a given criterion when consecutive findings of noncompliance are made on that criterion. (Approved by the Office of Management and Budget under control number 0960-0385) [50 FR 40145, Oct. 1, 1985; 50 FR 49392, Dec. 2, 1985, as amended at 51 FR 37732, Oct. 24, 1986; 55 FR 8468, Mar. 8, 1990; 59 FR 66253, Dec. 23, 1994] Sec. 305.100 Penalty for failure to have an effective support enforcement program. (a) If the Secretary finds, on the basis of the results of the audit described in this part, that a State's program does not substantially meet the requirements in title IV-D of the Act, as implemented by chapter III of this title, and the State does not achieve substantial compliance with those requirements identified in the notice within the corrective action period approved by the Secretary under Sec. 305.99(c) of this part and maintain compliance in areas cited in the notice as marginally acceptable under Sec. 305.99(b)(2) of this part, total payments to the State under title IV-A of the Act will be reduced for the period prescribed in paragraph (c) or (d) of this section by: (1) Not less than one nor more than two percent of such payments for a period beginning in accordance with paragraph (c) or (d) of this section not to exceed the one-year period following the end of the suspension period; (2) Not less than two nor more than three percent of such payments if the finding is the second consecutive finding made as a result of an audit for a period beginning as of the second one-year period following the suspension period not to exceed one year; or (3) Not less than three nor more than five percent of such payments if the finding is the third or subsequent consecutive finding as a result of an audit for a period beginning as of the third one-year period following the suspension period. (b) In the case of a State that has achieved substantial compliance with the unmet criteria identified in the notice and maintained substantial compliance with any marginally-met criteria identified in the notice within the corrective action period approved by the Secretary under Sec. 305.99 of this part, the penalty will not be applied. (c) In the case of a State whose penalty suspension ends because the State is not implementing its corrective action plan, the penalty will be applied as if the suspension had not occurred. (d) In the case of a State whose penalty suspension ends because the State is implementing its corrective action plan but has failed to achieve substantial compliance with the unmet criteria identified in the notice or maintain substantial compliance with any marginally-met criteria identified in the notice within the corrective action period approved by the Secretary under Sec. 305.99 of this part, the penalty will be effective for any quarter that ends after the expiration of the suspension period until the first quarter throughout which the State IV- D program is in substantial compliance with the requirements of title IV-D of the Act. (e) A consecutive finding under paragraph (a)(2) or (3) of this section occurs only when the State does not achieve substantial compliance with the same criterion or criteria. (f) Any reduction required to be made under this section shall be made pursuant to Sec. 205.146(d) of this title. (g) The reconsideration of penalty imposition provided for by Sec. 205.146(e) of this title shall be applicable to any reduction made pursuant to this section. [50 FR 40145, Oct. 1, 1985; 50 FR 49392, Dec. 2, 1985; 55 FR 8468, Mar. 8, 1990] PART 306 [RESERVED] Federal web site where this Code can be found [ Part 301 ][ Part 302 ][ Part 303 ][ Part 304 ][ Part 307 ] |
