PAYMENT PROCESSING

06/94 Revised 02/25/19 Training Completed 04/17/17 Last Reviewed 08/04/25

45 CFR 302.32, 302.51, and 303.52; R527-332

Introduction

Prior to October 1, 2009, when an applicant/custodial parent (CP) applied for IV-A cash assistance, s/he assigned all past-due, current, and future child support and spousal support to the state as reimbursement for the cash assistance issued. Effective October 1, 2009, the applicant/CP assigns only the current child support and spousal support due for the time-period s/he receives IV-A cash assistance. For more information on assignment of support rights, refer to CS 505P Assignment of Support Rights. The Office of Recovery Services/Child Support Services (ORS/CSS) collects this reimbursement by retaining collections received on support that is assigned up to the life-to-date unreimbursed assistance (URA) amount.

URA is the balance of the life-to-date IV-A cash assistance issued to the CP for which the state has not yet been reimbursed through collections of assigned support. The URA is calculated on ORSIS. When the URA is:

1. Negative – CSS has not collected enough support to reimburse the State for the assistance issued to the CP.

2. Positive – CSS has collected more in assigned support than has been issued to the CP in cash assistance.

EXAMPLE 1: The CP has two cases. Each case has one child. The CP received IV-A cash assistance for the two children (two different noncustodial parents (NCP)). Between the two cases, the two NCPs have paid a total of $2,500.00 child support. This money has been applied to the AFDC and TEMP debts, which has been retained by the state. The CP received a total of $3,500.00 in cash assistance. The URA amount is -$1,000.00. This means that if CSS collects and retains an additional $1,000.00, the state will be reimbursed for the assistance issued to the family.

$2,500.00 Collections retained on AFDC and TEMP debts.

-3,500.00 Subtract the life-to-date assistance issued to the CP.

- 0.00 Subtract $50.00 disregards issued to the CP.

- 1,000.00 Equals URA balance.

EXAMPLE 2: The CP has two cases. Each case has one child. The CP received IV-A cash assistance for the two children (two different NCP. Between the two cases, the two NCPs have paid a total of $4,000.00 child support. This money has been applied to the AFDC and TEMP debts, which has been retained by the state. The CP received a total of $3,000.00 in assistance. The state has collected and retained more than the amount of cash assistance issued to the CP life-to-date and must pay the excess support of $1,000.00 to the CP.

$4,000.00 Collections retained on AFDC and TEMP debts.

-3,000.00 Subtract the life-to date assistance issued to the CP.

- 0.00 Subtract $50.00 disregards issued to the CP.

+ 1,000.00 Equals URA balance.

URA Excess

Federal regulations found at 45 CFR 302.32 (b)(2)(i) require that collections received by the IV-D agency that are in excess of the unreimbursed assistance amount must be paid to the family within two business days of the end of the month in which the support was received by the State Disbursement Unit (ORS accounting).

“Except as specified under paragraph (b)(2)(iv) of this section, if the SDU sends payment to the family (other than payments sent to the family from the State share of assigned support collections), the SDU must send these payments within 2 business days of the end of the month in which the payment was received by the SDU. Any payment passed through to the family from the State share of assigned support collections must be sent to the family within 2 business days of the date of receipt by the SDU.” (Emphasis added.)

Refunding URA Excess When the CP is Deceased

If the URA excess is positive, but the CP is deceased, the excess URA funds must still be refunded. Attempt to refund the URA excess to the individuals or agency in the order listed below:

1. To the CP’s estate;

2. To the NCP on the case; or,

3. To the Unclaimed Property Division of the Utah State Treasurer.

Primary Individual (PI) Exceptions

Federal regulations do not allow you to pro-rate a benefit amount between the number of children within the family. However, when you have more than one family on the same grant, you can pro-rate between the multiple families. In very rare situations, the cash assistance benefits are issued to a “PI” that is not the CP on the case. If the criteria listed below are met, you may pro-rate the benefit amount based on the number of people included in the grant.

NOTE: You must manually adjust the benefit amount each month the exception exists. You must also write a detailed narrative to explain the action you have taken.

1. Two separate families are receiving one grant.

EXAMPLE: The CP’s boyfriend receives a grant of $600.00 for six people, including the boyfriend, his two children, your CP, and her two children. Pro-rate the amount of the cash assistance grant by the number of people on the grant. This process must occur manually each month.

2. Unemancipated minor is receiving grant with her parent as the PI.

EXAMPLE: A CP receives a grant of $500.00 for five people, including the CP, two children, her unemancipated minor, and the unemancipated minor’s child. The unemancipated minor is a child on the case against her father and is also a CP on a case against her baby’s father. Pro-rate the grant and include $400.00 in the CP’s URA amount and $100.00 in the unemancipated minor’s URA amount to represent the portion of the grant for the unemancipated minor’s child.

3. Emancipated child is receiving grant with her parent as the PI.

EXAMPLE: A CP is receiving a grant for $600.00 for six people including the CP, her three minor children, her emancipated child, and her emancipated child’s baby (CP’s grandchild). The emancipated child is a CP on a case against her baby’s father. Pro-rate the grant and include $400.00 in the CP’s URA balance and $200.00 in the emancipated child’s URA balance to represent the emancipated child’s and her baby’s portions of the grant.