Compendium of Budget Information for the 2009 General Session

Health & Human Services
Appropriations Subcommittee

Group: Health & Human Services - Department of Human Services

Line Item: Office of Recovery Services

Function

The Office of Recovery Services (ORS) is responsible for collecting funds owed to the state in the Human Services and Medical Assistance areas. ORS is also charged with collecting child support payments from non-custodial parents on behalf of custodial parents. If the custodial parent is receiving public assistance, the child support payments are used to reimburse the state and federal governments for assistance given to the custodial parent. If the state has custody of the child, the non-custodial parents are still required to pay child support to the state. Federal law also requires the office to provide child support collection services to families not receiving public assistance. The Department of Health also contracts with ORS to provide insurance identification and third party collection services for medical assistance programs such as Medicaid.

Statutory Authority

Utah Code Title 62A, Chapter 11 describes the programs and administration of the Office of Recovery Services:

Part 1: Creation and duties of the Office of Recovery Services

Part 3: Child Support Services Act

Parts 4 and 5: Requirements for income withholding

Part 6: Administrative License Suspension Child Support Enforcement Act

Part 7: Alternative payment through electronic funds transfer

Utah Code Title 78B:

Chapter 12: Utah Child Support Act

Chapter 15: Utah Uniform Parentage Act

Other Code Sections:

26-19: Medical Benefits Recovery Act

62A-1-117: Assignment of support - children in state custody

78A-6-1106: Child support obligation when custody of a minor is vested in an individual or institution

Funding Detail

The federal Deficit Reduction Act impacted ORS by disallowing the use of federal incentive funds as state match. The 2007 Legislature provided $2,427,400 in General Funds to meet the state match requirements.

Sources of Finance	2005 Actual	2006 Actual	2007 Actual	2008 Actual	2009 Approp
General Fund	$10,617,000	$11,756,300	$12,409,600	$15,506,500	$15,773,100
General Fund, One-time	$72,300	$0	$41,300	($501,300)	$0
Federal Funds	$29,073,700	$29,624,100	$31,204,300	$29,819,100	$32,936,200
Dedicated Credits Revenue	$2,396,800	$2,254,100	$2,401,100	$3,458,900	$3,220,000
Transfers - H - Medical Assistance	$1,990,000	$2,034,600	$2,131,600	$2,262,800	$2,224,600
Transfers - Other Agencies	$67,900	$63,000	$193,500	$136,200	$216,500
Beginning Nonlapsing	$45,500	$45,500	$37,400	$8,200	$0
Closing Nonlapsing	($45,500)	($37,400)	($8,200)	$0	$0
Lapsing Balance	($2,600)	($1,800)	($800)	($1,700)	$0
Total	$44,215,100	$45,738,400	$48,409,800	$50,688,700	$54,370,400

Programs:	2005 Actual	2006 Actual	2007 Actual	2008 Actual	2009 Approp
Administration	$1,350,600	$1,235,400	$1,546,500	$1,599,400	$1,550,500
Financial Services	$5,293,900	$5,424,000	$5,578,300	$5,674,800	$5,949,100
Electronic Technology	$7,530,600	$7,732,600	$8,439,800	$9,465,300	$7,598,800
Child Support Services	$22,622,800	$23,434,400	$24,399,100	$25,162,300	$29,837,100
Children in Care Collections	$1,954,300	$1,997,700	$2,024,900	$2,033,000	$2,272,200
Attorney General Contract	$3,279,000	$3,689,000	$4,081,800	$4,270,800	$4,528,600
Medical Collections	$2,183,900	$2,225,300	$2,339,400	$2,483,100	$2,634,100
Total	$44,215,100	$45,738,400	$48,409,800	$50,688,700	$54,370,400

Categories of Expenditure	2005 Actual	2006 Actual	2007 Actual	2008 Actual	2009 Approp
Personal Services	$29,598,900	$30,174,200	$31,309,100	$32,637,000	$35,772,500
In-State Travel	$28,400	$37,400	$58,600	$33,400	$31,900
Out of State Travel	$4,900	$21,600	$18,000	$43,200	$3,000
Current Expense	$8,790,500	$9,275,100	$9,772,800	$10,021,300	$10,132,600
DP Current Expense	$5,792,400	$6,144,100	$7,251,300	$7,953,800	$7,087,100
DP Capital Outlay	$0	$86,000	$0	$0	$2,196,300
Other Charges/Pass Thru	$0	$0	$0	$0	($853,000)
Total	$44,215,100	$45,738,400	$48,409,800	$50,688,700	$54,370,400

Other Indicators	2005 Actual	2006 Actual	2007 Actual	2008 Actual	2009 Approp
Budgeted FTE	549.1	537.5	520.6	513.7	544.6
Vehicles	9	8	7	8	7

Subcommittee Table of Contents

Program: Administration

Function

The Administration Bureau is responsible for managerial oversight and leadership of the Office of Recovery Services and its programs. This bureau includes the ORS director and the director's staff, clerical support, personnel management, central training, management auditing, contract management, planning and resource development, public information, and constituent affairs.

Funding Detail

Sources of Finance	2005 Actual	2006 Actual	2007 Actual	2008 Actual	2009 Approp
General Fund	$240,800	$264,100	$279,100	$289,500	$191,000
General Fund, One-time	$1,700	$0	($700)	$0	$0
Federal Funds	$900,900	$895,500	$1,131,900	$1,165,200	$1,188,800
Transfers - H - Medical Assistance	$207,200	$75,800	$86,700	$98,800	$103,300
Transfers - Other Agencies	$0	$0	$49,500	$45,900	$67,400
Total	$1,350,600	$1,235,400	$1,546,500	$1,599,400	$1,550,500

Categories of Expenditure	2005 Actual	2006 Actual	2007 Actual	2008 Actual	2009 Approp
Personal Services	$1,230,500	$1,111,700	$1,059,300	$1,117,000	$1,188,500
In-State Travel	$2,600	$4,000	$3,700	$1,300	$3,400
Out of State Travel	$500	$2,600	$2,200	$1,300	$0
Current Expense	$117,000	$117,100	$481,300	$479,800	$358,600
Total	$1,350,600	$1,235,400	$1,546,500	$1,599,400	$1,550,500

Other Indicators	2005 Actual	2006 Actual	2007 Actual	2008 Actual	2009 Approp
Budgeted FTE	18.3	16.6	13.8	13.8	14.5

Subcommittee Table of Contents

Program: Financial Services

Function

Financial Services has responsibility for budgetary and financial matters for ORS, including check processing and other financial transactions, federal reporting requirements, budget development, purchasing, agency services, facility management, and accounting. The largest section of the staff is responsible for researching, posting, distributing, and disbursing funds collected by ORS. Last year, the accounting unit processed more than $211.4 million in collections and issued over 900,000 support payments. About one-third of the payments are made through direct deposit to the custodial parents.

Funding Detail

Sources of Finance	2005 Actual	2006 Actual	2007 Actual	2008 Actual	2009 Approp
General Fund	$1,122,900	$1,142,000	$1,170,000	$1,274,800	$1,285,300
General Fund, One-time	$3,300	$0	$68,100	$0	$0
Federal Funds	$3,929,900	$4,036,500	$4,079,700	$4,146,000	$4,360,400
Transfers - H - Medical Assistance	$237,800	$245,500	$260,500	$254,000	$303,400
Total	$5,293,900	$5,424,000	$5,578,300	$5,674,800	$5,949,100

Categories of Expenditure	2005 Actual	2006 Actual	2007 Actual	2008 Actual	2009 Approp
Personal Services	$1,450,900	$1,490,700	$1,595,800	$1,690,300	$1,928,600
In-State Travel	$900	$2,000	$300	$1,500	$300
Current Expense	$3,842,000	$3,931,300	$3,982,200	$3,983,000	$4,040,900
DP Current Expense	$100	$0	$0	$0	$0
Other Charges/Pass Thru	$0	$0	$0	$0	($20,700)
Total	$5,293,900	$5,424,000	$5,578,300	$5,674,800	$5,949,100

Other Indicators	2005 Actual	2006 Actual	2007 Actual	2008 Actual	2009 Approp
Budgeted FTE	32.0	31.9	31.4	31.0	33.8
Vehicles	9	8	7	8	7

Subcommittee Table of Contents

Program: Electronic Technology

Function

This bureau is responsible for the operation and maintenance of the Office of Recovery Services Information System (ORSIS), a client server subsystem, and Local Area Network (LAN) support. It is responsible for coordinating efforts with the state Department of Technology Services. Electronic Services is also responsible for the telecommunications needs of ORS. This includes operation of the ORS Automated Information System which provides an automated method for both custodial and non-custodial parents to check on the status of payments. In FY 2008, it handled over 1.6 million telephone calls.

Funding Detail

Sources of Finance	2005 Actual	2006 Actual	2007 Actual	2008 Actual	2009 Approp
General Fund	$1,280,900	$1,278,500	$1,298,400	$3,212,300	$1,100,600
General Fund, One-time	$2,000	$0	($800)	$0	$0
Federal Funds	$6,020,800	$6,082,400	$6,727,100	$5,798,400	$6,158,300
Dedicated Credits Revenue	($100)	($700)	$0	$0	$0
Transfers - H - Medical Assistance	$229,600	$366,100	$386,700	$446,400	$339,900
Beginning Nonlapsing	$45,500	$45,500	$37,400	$8,200	$0
Closing Nonlapsing	($45,500)	($37,400)	($8,200)	$0	$0
Lapsing Balance	($2,600)	($1,800)	($800)	$0	$0
Total	$7,530,600	$7,732,600	$8,439,800	$9,465,300	$7,598,800

Categories of Expenditure	2005 Actual	2006 Actual	2007 Actual	2008 Actual	2009 Approp
Personal Services	$1,566,000	$1,533,200	$1,136,600	$1,346,600	$1,255,700
In-State Travel	$200	$700	$0	$1,300	$800
Out of State Travel	$0	$5,300	$1,500	$700	$0
Current Expense	$206,600	$219,000	$216,500	$221,300	$118,900
DP Current Expense	$5,757,800	$5,888,400	$7,085,200	$7,895,400	$7,054,100
DP Capital Outlay	$0	$86,000	$0	$0	$30,900
Other Charges/Pass Thru	$0	$0	$0	$0	($861,600)
Total	$7,530,600	$7,732,600	$8,439,800	$9,465,300	$7,598,800

Other Indicators	2005 Actual	2006 Actual	2007 Actual	2008 Actual	2009 Approp
Budgeted FTE	22.8	21.5	14.6	16.5	14.9

Subcommittee Table of Contents

Program: Child Support Services

Function

Child Support Services is the largest activity in the Office of Recovery Services. It is responsible for the management of the federal Title IV-D (Social Security Act) Child Support Enforcement program for the state. This program is required by federal law in order for the state to receive the federal Temporary Assistance for Needy Families (TANF) block grant. The primary purpose of the program is to increase family income through collection of child support. Combined with other income, child support collections assist families to become self-sufficient or help prevent the need for public assistance.

Funding Detail

The Legislature provided additional General Fund for FY 2008 to replace the ability of ORS to use federal incentive funds as state match.

Sources of Finance	2005 Actual	2006 Actual	2007 Actual	2008 Actual	2009 Approp
General Fund	$5,548,300	$6,453,900	$6,903,300	$7,803,700	$9,922,100
General Fund, One-time	$49,100	$0	($17,400)	($606,800)	$0
Federal Funds	$14,560,600	$14,662,700	$14,973,600	$14,417,900	$16,545,900
Dedicated Credits Revenue	$2,396,900	$2,254,800	$2,401,100	$3,458,900	$3,220,000
Transfers - Other Agencies	$67,900	$63,000	$138,500	$90,300	$149,100
Lapsing Balance	$0	$0	$0	($1,700)	$0
Total	$22,622,800	$23,434,400	$24,399,100	$25,162,300	$29,837,100

Categories of Expenditure	2005 Actual	2006 Actual	2007 Actual	2008 Actual	2009 Approp
Personal Services	$21,259,000	$21,857,400	$23,196,100	$24,005,800	$26,536,500
In-State Travel	$15,800	$18,900	$29,100	$11,500	$15,500
Out of State Travel	$1,200	$6,300	$6,400	$24,200	$3,000
Current Expense	$1,346,600	$1,327,900	$1,040,300	$1,118,700	$1,114,600
DP Current Expense	$200	$223,900	$127,200	$2,100	$2,100
DP Capital Outlay	$0	$0	$0	$0	$2,165,400
Total	$22,622,800	$23,434,400	$24,399,100	$25,162,300	$29,837,100

Other Indicators	2005 Actual	2006 Actual	2007 Actual	2008 Actual	2009 Approp
Budgeted FTE	397.0	389.7	385.6	378.7	404.4

Subcommittee Table of Contents

Program: Children in Care Collections

Function

This bureau is responsible for collection of child support in behalf of children who are in state custody or 24-hour care. Federal law requires collection of child/medical support for children receiving federal Title XIX (Medicaid) and/or Title IV-E (Foster Care) funds. State law (62A-1-117, 78A-6-1106) also mandates this collection program. This bureau is also responsible for third party insurance collections for the Utah State Hospital and Supplemental Security Income (SSI) interim assistance for the Department of Workforce Services. It also provides child support services for families not receiving public assistance in the form of central accounting for income withholding authorized by the courts.

Funding Detail

Sources of Finance	2005 Actual	2006 Actual	2007 Actual	2008 Actual	2009 Approp
General Fund	$508,200	$538,700	$581,100	$612,500	$634,700
General Fund, One-time	$5,000	$0	($1,800)	$0	$0
Federal Funds	$1,376,100	$1,392,400	$1,384,300	$1,350,000	$1,562,400
Transfers - H - Medical Assistance	$65,000	$66,600	$61,300	$70,500	$75,100
Total	$1,954,300	$1,997,700	$2,024,900	$2,033,000	$2,272,200

Categories of Expenditure	2005 Actual	2006 Actual	2007 Actual	2008 Actual	2009 Approp
Personal Services	$1,927,200	$1,971,100	$2,001,600	$2,008,900	$2,246,800
In-State Travel	$700	$700	$300	$400	$1,200
Current Expense	$26,400	$25,900	$23,000	$23,700	$24,200
Total	$1,954,300	$1,997,700	$2,024,900	$2,033,000	$2,272,200

Other Indicators	2005 Actual	2006 Actual	2007 Actual	2008 Actual	2009 Approp
Budgeted FTE	36.1	35.3	33.4	31.7	34.0

Subcommittee Table of Contents

Program: Attorney General Contract

Function

ORS contracts with the Office of the Attorney General (AG) for legal services to enforce efforts in the areas of child support and other collections. While on the Attorney General's staff and payroll, these attorneys are considered to be related staff. Fifty-five employees are housed in ORS offices. The AG bills ORS monthly based on the actual number of attorneys at ORS and the time they spend on ORS matters. The contract with the AG is adjusted annually to match compensation increases given to other state employees.

Funding Detail

Sources of Finance	2005 Actual	2006 Actual	2007 Actual	2008 Actual	2009 Approp
General Fund	$910,200	$1,041,500	$1,084,900	$1,144,100	$1,321,300
General Fund, One-time	$0	$0	($2,500)	$105,500	$0
Federal Funds	$2,285,400	$2,554,600	$2,907,700	$2,941,600	$3,120,400
Transfers - H - Medical Assistance	$83,400	$92,900	$91,700	$79,600	$86,900
Total	$3,279,000	$3,689,000	$4,081,800	$4,270,800	$4,528,600

Categories of Expenditure	2005 Actual	2006 Actual	2007 Actual	2008 Actual	2009 Approp
In-State Travel	$8,000	$11,100	$25,200	$17,400	$2,300
Out of State Travel	$3,200	$7,400	$7,900	$14,500	$0
Current Expense	$3,233,500	$3,638,700	$4,009,800	$4,182,600	$4,466,100
DP Current Expense	$34,300	$31,800	$38,900	$56,300	$30,900
Other Charges/Pass Thru	$0	$0	$0	$0	$29,300
Total	$3,279,000	$3,689,000	$4,081,800	$4,270,800	$4,528,600

Subcommittee Table of Contents

Program: Medical Collections

Function

This bureau is responsible to provide insurance identification, collection, and cost avoidance services to the Department of Health for Medicaid, the Children's Health Insurance Program (CHIP), and the Primary Care Network (PCN). The bureau works to identify medical insurance recipients and coordinates benefits and recovery. Additionally, the bureau pursues collections from liable third parties in personal injury cases, administers the Medicaid Estate Recovery program, and collects overpayments from providers.

Funding Detail

Sources of Finance	2005 Actual	2006 Actual	2007 Actual	2008 Actual	2009 Approp
General Fund	$1,005,700	$1,037,600	$1,092,800	$1,169,600	$1,318,100
General Fund, One-time	$11,200	$0	($3,600)	$0	$0
Transfers - H - Medical Assistance	$1,167,000	$1,187,700	$1,244,700	$1,313,500	$1,316,000
Transfers - Other Agencies	$0	$0	$5,500	$0	$0
Total	$2,183,900	$2,225,300	$2,339,400	$2,483,100	$2,634,100

Categories of Expenditure	2005 Actual	2006 Actual	2007 Actual	2008 Actual	2009 Approp
Personal Services	$2,165,300	$2,210,100	$2,319,700	$2,468,400	$2,616,400
In-State Travel	$200	$0	$0	$0	$8,400
Out of State Travel	$0	$0	$0	$2,500	$0
Current Expense	$18,400	$15,200	$19,700	$12,200	$9,300
Total	$2,183,900	$2,225,300	$2,339,400	$2,483,100	$2,634,100

Other Indicators	2005 Actual	2006 Actual	2007 Actual	2008 Actual	2009 Approp
Budgeted FTE	42.9	42.4	41.7	42.0	43.0

Subcommittee Table of Contents