Compendium of Budget Information for the 2010 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

Intent Language

All General Funds appropriated to the Office of Recovery Services line item are contingent upon expenditures from Federal Funds - American Recovery and Reinvestment Act (H.R. 1, 111th United States Congress) not exceeding amounts appropriated from Federal Funds - American Recovery and Reinvestment Act in all appropriation bills passed for FY 2009. If expenditures in the Office of Recovery Services line item from Federal Funds - American Recovery and Reinvestment Act exceed amounts appropriated to the Office of Recovery Services line item from Federal Funds - American Recovery and Reinvestment Act in FY 2009, the Division of Finance shall reduce the General Fund allocations to the Office of Recovery Services line item by one dollar for every one dollar in Federal Funds - American Recovery and Reinvestment Act expenditures that exceed Federal Funds - American Recovery and Reinvestment Act appropriations.

All General Funds appropriated to the Office of Recovery Services line item are contingent upon expenditures from Federal Funds - American Recovery and Reinvestment Act (H.R. 1, 111th United States Congress) not exceeding amounts appropriated from Federal Funds - American Recovery and Reinvestment Act in all appropriation bills passed for FY 2010. If expenditures in the Office of Recovery Services line item from Federal Funds - American Recovery and Reinvestment Act exceed amounts appropriated to the Office of Recovery Services line item from Federal Funds - American Recovery and Reinvestment Act in FY 2010, the Division of Finance shall reduce the General Fund allocations to the Office of Recovery Services line item by one dollar for every one dollar in Federal Funds - American Recovery and Reinvestment Act expenditures that exceed Federal Funds - American Recovery and Reinvestment Act appropriations.

Funding Detail

For analysis of current budget requests and discussion of issues related to budgets covered by this subcommittee click here.

Sources of Finance	2006 Actual	2007 Actual	2008 Actual	2009 Actual	2010 Approp
General Fund	$11,756,300	$12,409,600	$15,506,500	$14,976,200	$14,034,200
General Fund, One-time	$0	$41,300	($501,300)	$746,200	($669,500)
Federal Funds	$29,624,100	$31,204,300	$29,819,100	$27,043,700	$30,785,600
American Recovery and Reinvestment Act	$0	$0	$0	$1,820,500	$9,000,000
Dedicated Credits Revenue	$2,254,100	$2,401,100	$3,458,900	$3,226,700	$3,220,000
Transfers - H - Medical Assistance	$2,034,600	$2,131,600	$2,262,800	$2,335,400	$2,226,800
Transfers - Other Agencies	$63,000	$193,500	$136,200	$63,600	$216,500
Transfers - Within Agency	$0	$0	$0	$109,400	$0
Beginning Nonlapsing	$45,500	$37,400	$8,200	$0	$0
Closing Nonlapsing	($37,400)	($8,200)	$0	$0	$0
Lapsing Balance	($1,800)	($800)	($1,700)	($1,200)	$0
Total	$45,738,400	$48,409,800	$50,688,700	$50,320,500	$58,813,600

Programs:	2006 Actual	2007 Actual	2008 Actual	2009 Actual	2010 Approp
Administration	$1,235,400	$1,546,500	$1,599,400	$1,335,500	$1,538,000
Financial Services	$5,424,000	$5,578,300	$5,674,800	$5,935,600	$5,961,200
Electronic Technology	$7,732,600	$8,439,800	$9,465,300	$8,901,000	$7,578,300
Child Support Services	$23,434,400	$24,399,100	$25,162,300	$25,051,700	$34,462,000
Children in Care Collections	$1,997,700	$2,024,900	$2,033,000	$1,961,400	$2,220,600
Attorney General Contract	$3,689,000	$4,081,800	$4,270,800	$4,573,500	$4,534,000
Medical Collections	$2,225,300	$2,339,400	$2,483,100	$2,561,800	$2,519,500
Total	$45,738,400	$48,409,800	$50,688,700	$50,320,500	$58,813,600

Categories of Expenditure	2006 Actual	2007 Actual	2008 Actual	2009 Actual	2010 Approp
Personnel Services	$30,174,200	$31,309,100	$32,637,000	$32,281,600	$35,628,100
In-state Travel	$37,400	$58,600	$33,400	$26,500	$30,900
Out-of-state Travel	$21,600	$18,000	$43,200	$35,300	$2,500
Current Expense	$9,275,100	$9,772,800	$10,021,300	$10,672,200	$10,737,200
DP Current Expense	$6,144,100	$7,251,300	$7,953,800	$7,252,600	$12,384,000
DP Capital Outlay	$86,000	$0	$0	$52,300	$30,900
Total	$45,738,400	$48,409,800	$50,688,700	$50,320,500	$58,813,600

Other Indicators	2006 Actual	2007 Actual	2008 Actual	2009 Actual	2010 Approp
Budgeted FTE	537.5	520.6	513.7	485.5	499.1
Vehicles	8	7	8	7	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	2006 Actual	2007 Actual	2008 Actual	2009 Actual	2010 Approp
General Fund	$264,100	$279,100	$289,500	$458,700	$178,500
General Fund, One-time	$0	($700)	$0	$0	$0
Federal Funds	$895,500	$1,131,900	$1,165,200	$703,700	$1,188,800
Transfers - H - Medical Assistance	$75,800	$86,700	$98,800	$63,700	$103,300
Transfers - Other Agencies	$0	$49,500	$45,900	$0	$67,400
Transfers - Within Agency	$0	$0	$0	$109,400	$0
Total	$1,235,400	$1,546,500	$1,599,400	$1,335,500	$1,538,000

Categories of Expenditure	2006 Actual	2007 Actual	2008 Actual	2009 Actual	2010 Approp
Personnel Services	$1,111,700	$1,059,300	$1,117,000	$793,500	$1,005,200
In-state Travel	$4,000	$3,700	$1,300	$700	$2,400
Out-of-state Travel	$2,600	$2,200	$1,300	$700	($500)
Current Expense	$117,100	$481,300	$479,800	$540,600	$530,900
Total	$1,235,400	$1,546,500	$1,599,400	$1,335,500	$1,538,000

Other Indicators	2006 Actual	2007 Actual	2008 Actual	2009 Actual	2010 Approp
Budgeted FTE	16.6	13.8	13.8	9.4	12.0

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. About one-third of payments are made through direct deposit to the custodial parents.

Funding Detail

Sources of Finance	2006 Actual	2007 Actual	2008 Actual	2009 Actual	2010 Approp
General Fund	$1,142,000	$1,170,000	$1,274,800	$2,107,400	$1,256,300
General Fund, One-time	$0	$68,100	$0	$0	$0
Federal Funds	$4,036,500	$4,079,700	$4,146,000	$3,566,500	$4,399,100
Transfers - H - Medical Assistance	$245,500	$260,500	$254,000	$261,700	$305,800
Total	$5,424,000	$5,578,300	$5,674,800	$5,935,600	$5,961,200

Categories of Expenditure	2006 Actual	2007 Actual	2008 Actual	2009 Actual	2010 Approp
Personnel Services	$1,490,700	$1,595,800	$1,690,300	$1,690,600	$1,877,700
In-state Travel	$2,000	$300	$1,500	$300	$300
Current Expense	$3,931,300	$3,982,200	$3,983,000	$4,244,600	$3,745,500
DP Current Expense	$0	$0	$0	$100	$337,700
Total	$5,424,000	$5,578,300	$5,674,800	$5,935,600	$5,961,200

Other Indicators	2006 Actual	2007 Actual	2008 Actual	2009 Actual	2010 Approp
Budgeted FTE	31.9	31.4	31.0	28.9	33.3
Vehicles	8	7	8	7	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 2009, it handled over 1.6 million telephone calls.

Funding Detail

Sources of Finance	2006 Actual	2007 Actual	2008 Actual	2009 Actual	2010 Approp
General Fund	$1,278,500	$1,298,400	$3,212,300	$1,459,200	$1,084,600
General Fund, One-time	$0	($800)	$0	$0	$0
Federal Funds	$6,082,400	$6,727,100	$5,798,400	$5,212,000	$6,154,000
American Recovery and Reinvestment Act	$0	$0	$0	$1,820,500	$0
Dedicated Credits Revenue	($700)	$0	$0	$0	$0
Transfers - H - Medical Assistance	$366,100	$386,700	$446,400	$409,300	$339,700
Beginning Nonlapsing	$45,500	$37,400	$8,200	$0	$0
Closing Nonlapsing	($37,400)	($8,200)	$0	$0	$0
Lapsing Balance	($1,800)	($800)	$0	$0	$0
Total	$7,732,600	$8,439,800	$9,465,300	$8,901,000	$7,578,300

Categories of Expenditure	2006 Actual	2007 Actual	2008 Actual	2009 Actual	2010 Approp
Personnel Services	$1,533,200	$1,136,600	$1,346,600	$1,418,300	$1,172,700
In-state Travel	$700	$0	$1,300	$300	$800
Out-of-state Travel	$5,300	$1,500	$700	$400	$0
Current Expense	$219,000	$216,500	$221,300	$254,100	$216,500
DP Current Expense	$5,888,400	$7,085,200	$7,895,400	$7,175,600	$6,157,400
DP Capital Outlay	$86,000	$0	$0	$52,300	$30,900
Total	$7,732,600	$8,439,800	$9,465,300	$8,901,000	$7,578,300

Other Indicators	2006 Actual	2007 Actual	2008 Actual	2009 Actual	2010 Approp
Budgeted FTE	21.5	14.6	16.5	16.6	14.1

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

Sources of Finance	2006 Actual	2007 Actual	2008 Actual	2009 Actual	2010 Approp
General Fund	$6,453,900	$6,903,300	$7,803,700	$7,498,100	$8,405,100
General Fund, One-time	$0	($17,400)	($606,800)	$746,200	($669,500)
Federal Funds	$14,662,700	$14,973,600	$14,417,900	$13,518,300	$14,357,300
American Recovery and Reinvestment Act	$0	$0	$0	$0	$9,000,000
Dedicated Credits Revenue	$2,254,800	$2,401,100	$3,458,900	$3,226,700	$3,220,000
Transfers - Other Agencies	$63,000	$138,500	$90,300	$63,600	$149,100
Lapsing Balance	$0	$0	($1,700)	($1,200)	$0
Total	$23,434,400	$24,399,100	$25,162,300	$25,051,700	$34,462,000

Categories of Expenditure	2006 Actual	2007 Actual	2008 Actual	2009 Actual	2010 Approp
Personnel Services	$21,857,400	$23,196,100	$24,005,800	$23,890,300	$27,014,700
In-state Travel	$18,900	$29,100	$11,500	$9,100	$15,500
Out-of-state Travel	$6,300	$6,400	$24,200	$23,500	$3,000
Current Expense	$1,327,900	$1,040,300	$1,118,700	$1,127,900	$1,570,800
DP Current Expense	$223,900	$127,200	$2,100	$900	$5,858,000
Total	$23,434,400	$24,399,100	$25,162,300	$25,051,700	$34,462,000

Other Indicators	2006 Actual	2007 Actual	2008 Actual	2009 Actual	2010 Approp
Budgeted FTE	389.7	385.6	378.7	359.7	364.5

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 (both titles are from the Social Security Act). 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	2006 Actual	2007 Actual	2008 Actual	2009 Actual	2010 Approp
General Fund	$538,700	$581,100	$612,500	$734,200	$583,100
General Fund, One-time	$0	($1,800)	$0	$0	$0
Federal Funds	$1,392,400	$1,384,300	$1,350,000	$1,156,400	$1,562,400
Transfers - H - Medical Assistance	$66,600	$61,300	$70,500	$70,800	$75,100
Total	$1,997,700	$2,024,900	$2,033,000	$1,961,400	$2,220,600

Categories of Expenditure	2006 Actual	2007 Actual	2008 Actual	2009 Actual	2010 Approp
Personnel Services	$1,971,100	$2,001,600	$2,008,900	$1,941,200	$2,056,600
In-state Travel	$700	$300	$400	$100	$1,200
Current Expense	$25,900	$23,000	$23,700	$20,100	$162,800
Total	$1,997,700	$2,024,900	$2,033,000	$1,961,400	$2,220,600

Other Indicators	2006 Actual	2007 Actual	2008 Actual	2009 Actual	2010 Approp
Budgeted FTE	35.3	33.4	31.7	29.4	32.0

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. Forty-seven 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	2006 Actual	2007 Actual	2008 Actual	2009 Actual	2010 Approp
General Fund	$1,041,500	$1,084,900	$1,144,100	$1,561,600	$1,323,100
General Fund, One-time	$0	($2,500)	$105,500	$0	$0
Federal Funds	$2,554,600	$2,907,700	$2,941,600	$2,886,800	$3,124,000
Transfers - H - Medical Assistance	$92,900	$91,700	$79,600	$125,100	$86,900
Total	$3,689,000	$4,081,800	$4,270,800	$4,573,500	$4,534,000

Categories of Expenditure	2006 Actual	2007 Actual	2008 Actual	2009 Actual	2010 Approp
In-state Travel	$11,100	$25,200	$17,400	$16,000	$2,300
Out-of-state Travel	$7,400	$7,900	$14,500	$9,000	$0
Current Expense	$3,638,700	$4,009,800	$4,182,600	$4,472,500	$4,500,800
DP Current Expense	$31,800	$38,900	$56,300	$76,000	$30,900
Total	$3,689,000	$4,081,800	$4,270,800	$4,573,500	$4,534,000

Subcommittee Table of Contents

Program: Medical Collections

Function

This bureau is responsible for providing 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	2006 Actual	2007 Actual	2008 Actual	2009 Actual	2010 Approp
General Fund	$1,037,600	$1,092,800	$1,169,600	$1,157,000	$1,203,500
General Fund, One-time	$0	($3,600)	$0	$0	$0
Transfers - H - Medical Assistance	$1,187,700	$1,244,700	$1,313,500	$1,404,800	$1,316,000
Transfers - Other Agencies	$0	$5,500	$0	$0	$0
Total	$2,225,300	$2,339,400	$2,483,100	$2,561,800	$2,519,500

Categories of Expenditure	2006 Actual	2007 Actual	2008 Actual	2009 Actual	2010 Approp
Personnel Services	$2,210,100	$2,319,700	$2,468,400	$2,547,700	$2,501,200
In-state Travel	$0	$0	$0	$0	$8,400
Out-of-state Travel	$0	$0	$2,500	$1,700	$0
Current Expense	$15,200	$19,700	$12,200	$12,400	$9,900
Total	$2,225,300	$2,339,400	$2,483,100	$2,561,800	$2,519,500

Other Indicators	2006 Actual	2007 Actual	2008 Actual	2009 Actual	2010 Approp
Budgeted FTE	42.4	41.7	42.0	41.4	43.2

Subcommittee Table of Contents