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Child Support Enforcement System

Current Status:

In November 2010, DSS reached an agreement with HP to pay for penalties going forward through Federal FY 2011-12. This action enabled DSS to carry forward a portion of the $18.5 million appropriated in FY 2010-11 to pay for system development costs.

After careful deliberation and assessment of the status of the Project and its history, the Executive Committee that governs the Project, consisting of the DSS State Director, the Chief Justice, the Governor’s Office, and representatives from the Budget and Control Board and the Clerks of Court, authorized the filing of a Contract Controversy against HP before the State’s Information Technology Management Office, as authorized by SC Code Section 11-35-4230, on September 2, 2011, alleging material breach.

On March 7, 2012, the State and HP settled the contract controversy. HP agreed to pay federal penalties through Federal FY 2012-13. The development of the Child Support Enforcement System is projected to be completed in FY 2012-13. The system should be in use in all 46 counties and in all DSS regions in FY 2013-14. This settlement extends the contract schedule from 68 months to 73 months. Under the new schedule, the final penalties incurred would be for Federal FY 2012-13. The contract amendment memorializing the settlement must be approved by the Federal Office of Child Support Enforcement.

What are the Federal requirements for the system?

In order to be certified, a State’s automated Child Support Enforcement System (CSES) must be comprehensive, operate statewide, and meet the standards of efficiency and effectiveness and the operational requirements established by the US Department of Health and Human Services, Administration for Children and Families.

Why is the system so complex?

• CSES is required to work with 39 automated systems utilizing multiple interfaces between state, federal agencies and other entities external and internal to DSS.

• Twenty-four of the 42 interfaces are required to achieve federal certification. These include interfaces with TANF (welfare) payments and foster care payments in order to achieve federal certification.

• CSES and Family Court Case Management System (FCCMS) will be used by over 800 DSS Child Support employees and county Family Court
employees. These 800 users will be trained on the use of CSES and FCCMS under the contract with HP.

• CSES and FCCMS will be rolled out into over 50 separate physical locations. A communication network will have to be in place to connect all of these locations and to provide effective data transmittal.

• CSES must meet 331 specific requirements established by the federal government in order to achieve federal certification.

Why is SC subject to Federal penalties and when did they start?

Because of the State’s failure to have a certified statewide system operational by October 1, 1997, South Carolina became subject to federal
penalties.

What is the maximum penalty that could be assessed?

The maximum penalty is the disapproval of the State’s Child Support Enforcement (Title IV-D) State Plan. This would result in the withdrawal of all federal funding for the State’s Child Support Enforcement program of approximately $22.8 million and over 200,000 child support cases annually.

The second level of penalty would be the disapproval of federal funding for the Temporary Assistance for Needy Families (TANF) program, potentially $99 million annually.

What is the Alternative Penalty?

Congress made a less severe alternative penalty available to states that lacked a statewide system if the state was willing to work under federal oversight and under a corrective compliance plan designed to implement a system within a reasonable time.

In January 2001, South Carolina elected to be subject to the alterative penalty and OCSE approved the corrective compliance plan.

The alternative penalties will be assessed until lifted by the federal authorities. When the State submits a letter to OCSE representing that the system is certifiable and requesting official federal certification of CSES, federal system penalties will be placed in abeyance while OCSE certifies CSES. Ninety percent of any system penalties actually paid for the federal fiscal year in which the letter was submitted is rebated by OCSE back to the agency once the CSES is certified.

What are the consequences of not completing the system?

If SC did not complete the automated system, nor proceed in good faith to complete the system, the State would be subject to the maximum penalties as determined by the US Department of Health and Human Services, Administration for Children and Families, described above, withdrawal of child support funding and TANF funding.

What oversight has been established for this project?

The project is monitored on a monthly basis by the Project Executive Committee whose members are: the Office of the Governor; the Chief Justice of the SC Supreme Court; the Director of DSS; representatives of the Clerks of Court; and the Budget and Control Board.

Federally required monitors review progress and the effectiveness of project processes on a daily basis.