Incentives and Performance Measures – Where is the ZIP Line?

Daisie Blue Our Journey starts here Angela Ingram- Jones Ralph Leggett Tammy Pearson

Federal Child Support Performance-Based Incentives and Penalties Angela Ingram-Jones Lead Program Management Analyst Office of Child Support Enforcement

Background—Child Support Performance Incentive Act (CSPIA) – Established under regulatory authority to reward States for performance (CSPIA, 1998) – Incentive payments are linked to performance in five areas: Establishment of Paternities Establishment of Support Orders Collection of Current Support Collection of Arrears (weighted at 75%) Cost Effectiveness (weighted at 75%) COLLECTION BASE FORMULA 2 times (Current Assistance + Former Assistance + Medicaid Assistance) + Never Assistance Collections + Fees Retained by Other States

Background—Child Support Performance Incentive Act (CSPIA) – States are paid from a capped incentive pool. The pool has increased from $422 million in FY 2000 to $504 in FY 2010 – Penalties are associated with failure to meet or improve three of the measures: PEP Establishment of Support Orders Collection of Current Support

CSPIA Accomplishments Improved overall record of performance Improved data reliability Increased collections Altered the way we do business—ability to tie individual work to an outcome Increased program reputation

Performance Trends

Incentive System Performance Over Time

IV-D PEP Note: Preliminary 2011 Data—subject to change

Current Support Collections Note: Preliminary 2011 Data—subject to change

Cases with Support Orders Note: Preliminary 2011 Data—subject to change

Collections on Arrears Note: Preliminary 2011 Data—subject to change

Cost Effectiveness Trends Note: Preliminary 2011 Data—subject to change

Best Practices for Performance Improvement – Involve staff at all levels – Caseload Management / Case Stratification (using data to select the right tools for the right case at the right time) – Review and modification and setting appropriate orders – Early intervention to prevent arrears

CONTACT INFORMATION Angela Ingram-Jones Lead Program Management Analyst Office of Child Support Enforcement

State Child Support Performance-Based Incentives Ralph Leggett Administrative Officer NC Child Support Services

Components of Federal Reporting Types of Data 34A396AOCSE 157 IVD Collections (Estimated and Actual) Quarterly Expenditures (Estimated and Actual) Quarterly % Paternity EstablishmentAnnually % Cases Under OrderAnnually % Current CollectionsAnnually % Cases Paying ArrearsAnnually

Types of Data XPTRData Warehouse IVD CollectionsXPTR Reports Expenditures Calculation of State and County Expenditure Rpts for FFY % Paternity EstablishmentOCSE 157 FFY % Cases Under OrderOCSE 157 FFY % Current CollectionsOCSE 157 FFY % Cases Paying ArrearsOCSE 157 FFY Sources for Reporting

OCSE-157 Lines Reviewed Line 1: Cases Open Line 2: Cases Open Under Order Line 5: Children Born Out of Wedlock Line 6: Children BOW- Paternity Est. Line 24: Current Support Due Line 25: Current Support Distributed Line 28: Cases with Arrears Due Line 29: Cases with Arrears Payment

HOLD ON! Somethin’ ain’t workin’? And how does this affect us?

Settlement Awards Audit Federal Fiscal Year Oct-Sept Estimated and Actual Incentive Cycle Performance

Calculation of Incentives Measure Performance Level Applicable PercentWeightCollection Base Paternity Establishment93%100%1.00$50,000,000 Order Establishment74%88%1.00$44,000,000 Current Collections59%69%1.00$34,500,000 Arrearage Collections60%70%0.75$26,250,000 Cost-Effectiveness$4.4080%0.75$30,000,000 State A ’ s Maximum Incentive Base Amount $184,750,000 Example State A

If the Paternity Establishment or Support Order Performance Level Is: At Least: But Less Than: The Applicable Percentage Is:At Least: But Less Than: The Applicable Percentage Is: 80%100%64%65%74% 79%80%98%63%64%73% 78%79%96%62%63%72% 77%78%94%61%62%71% 76%77%92%60%61%70% 75%76%90%59%60%69% 74%75%88%58%59%68% 73%74%86%57%58%67% 72%73%84%56%57%66% 71%72%82%55%56%65% 70%71%80%54%55%64% 69%70%79%53%54%63% 68%69%78%52%53%62% 67%68%77%51%52%61% 66%67%76%50%51%60% 65%66%75%0%50%0%

Settlement of Incentives A type of reconciliation StateShare of Incentive Payment PoolAmount advanced Settlement Over / Under Payment A$267,199,216$200,000,000$67,199,216 B$121,487,059$130,000,000-$8,512,941 C$50,000,000 $0 After the end of each fiscal year and completion of all data audits: OCSE calculates each State's annual incentive payment, using the actual collection and expenditure data and the performance data submitted by all States by October 30th (or revised by December 31st) A positive or negative grant will then be awarded to the State to reconcile an actual annual incentive payment that has been calculated to be greater or lesser, respectively.

% Paternity Established Line 5a OCSE 157 Children in IV ‑ D Cases Open at the End of the Prior Federal Fiscal Year Who Were Born Out-of-Wedlock Line 6 OCSE 157 Children BOW in IV ‑ D Cases Open During or at the End of the Fiscal Year With Paternity Established or Acknowledged

FFY 2010 Incentive Pool FFY 2010 INCENTIVE PAYMENT POOL$504,000,000 ACTUAL NC INCENTIVE$11,190,270 NC POTENTIAL INCENTIVE$14,754,724 NC INCENTIVE LOST$3,564,453

What Does That Have to Do With ME

$100

Number of children in your caseload = % error = 48 X $ = $480.00

And that does not include PENALTIES

What’s This Nest Egg Worth? More $$ to reinvest in Child Support Program Bragging Rights for Sure Excellent Customer Service

Center of the Child Support Universe STATE FEDERAL COUNTY CASEWORKERS

Types of Data XPTRData Warehouse IVD CollectionsXPTR Reports Expenditures Calculation of State and County Expenditure Rpts for FFY % Paternity EstablishmentOCSE 157 FFY % Cases Under OrderOCSE 157 FFY % Current CollectionsOCSE 157 FFY % Cases Paying ArrearsOCSE 157 FFY From where do these receive their data?

DATA WAREHOUSE Caseworker and case files Caseworker and case files Caseworker and case files XPTRACTS

IF YOU ARE GOING TO REPORT IT YOU MUST BE ABLE TO SUPPORT IT Case file and Supporting Documentation ACTS

Incentive $$ Are Paid When Awarded annually No Guarantees Data Reliability Audit (DRA) to validate Failing Lines reduce $$ Consecutive failures = TANF penalty Payment Schedule Under Review

Ralph Leggett, Administrative Officer NC Child Support Services CONTACT INFORMATION

Local/County Child Support Performance-Based Incentives Tammy Pearson Project Manager Union County Child Support

Improving Incentives PATERNITY ESTABLISHMENT COLLECTIONS/ARREARS Current Support, Arrears and Total Collections Do you feel like you need help with these areas? What can you do to make it to the end?

Tracking Your Performance Measures... Do you know where you are going on the Zip-line? Where do you think you will end up? 1.Improving in performance measures = more INCENTIVE MONEY 2.Knowing your numbers shows you what your office is doing RIGHT and what you need to do BETTER PATERNITY ESTABLISHMENT ORDER ESTABLISHMENT CURRENT SUPPORT COLLECTIONS CASES PAYING ON ARREARS

1 st Stop - PATERNITY What can you do that will help ensure you make that 1 st Stop? Paternity Establishment The percentage/ratio of children BOW with paternity established for the current year compared to children BOW for the previous year REPORTS: THE KEY TO SUCCESS * BOW Indicator Report * CHILDREN In Case Load Report TRACK YOUR RESULTS MONTHLY! Your paper file should include documentation as to how paternity was established: divorce orders, Affidavits of Parentage, court orders, etc. Every file should have the child/ren Birth Certificate!

2 ND STOP– HOPE IT HOLDS UP FOR ESTABLISHMENT MOVING THOSE CASES ALONG THE LINE. The percentage of open cases with support orders established HOW IS YOUR OFFICE SET UP FOR ESTABLISHMENT? WORK HIGH PRIORITY WORKLIST ITEMS TO INCREASE THE % OF CASES UNDER ORDER (CACM, CAPD, CASS, CHEM, CRAF, CTRN, ECS1, ECS2, ECS3, EEMP, EFTP, EIST, ELAP, EMPL, FLOW, FWDP, LEMP, LNHE, LPVR, MAIL, PANT, PLOD, RWR) REPORTS: THE KEY TO SUCCESS ⊡ CASE LOAD LISTING REPORT ⊡ No Support Order Report UNION COUNTY REVIEWS ALL CASES WITHOUT AN ORDER MONTHLY! Don’t get stuck on the line… you need to keep moving so you can get to the end!

Don’t Zip past your other stops– WE NEED TO “COLLECTION” OUR THOUGHTS ON CURRENT support AND SEE WHAT PEOPLE DID IN THE PAST – “ARREARS” Are you tired of all these stops? Are you ready to get some money? How is your office structured for Enforcement/Intergovernmental? Increasing Current Support, Arrears = Increasing total Collections! Current Support Collections The percentage of cases paying the full current support amount each month Cases Paying on Arrears The percentage of cases with a payment made on arrears REPORTS: THE KEY TO SUCCESS * Case load listing report * Cases Not Paying Full Support * Cases w/ No Payment on Arrears Know how to harness yourself on that Zip-line – Be secure in knowing you will make it to the end of that line.

Don’t get stuck! FOCUS ON HOW YOUR OFFICE OPERATES AND HOW YOU THINK! EARLY INTERVENTION PROGRAM IDENTIFY BARRIERS DETERMINE WHAT WE CAN DO TO HELP DIRECT PARENTS TO AVAILABLE RESOURCES JOB LINK CONNECTION COMMUNITY COLLEGE CONNECTION SMART START UTILIZE YOUR COUNTY’S RESOURCES

It takes everyone working together to get you to the end of that Zip-line!... because you can’t get to where you’re going without knowing where you are!

Tammy Pearson, Project Manager Union County Child Support Young Williams PC ext. 224 CONTACT INFORMATION