COBI 2015 - Office of Recovery Services

Overview
Issues
Performance
Background
Financials

Sources Uses

FY 2016 Appropriation

The Office of Recovery Services (ORS) is responsible for establishing child and medical support obligations and then enforcing the obligation. These services are required by federal law to reimburse the state and federal government for public assistance received by the children of the obligated parent(s). These same services are required if the child of the obligated parents is in state custody or if the custodial parent makes application to the IV-D child support agency for enforcement services. The Department of Health also contracts with ORS to provide insurance identification and third party collection services for Medicaid as required under Title XIX of the federal Social Security Act.

Additional information regarding the Office of Recovery Services can be found on its official website found at: Utah Office of Recovery Services

Funding History

Appropriation Overview

During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $43,959,300 from all sources for Office of Recovery Services. This is a 0.5 percent reduction from Fiscal Year 2015 revised estimated amounts from all sources. The total includes $13,440,900 from the General/Education Funds, an increase of 3.1 percent from revised Fiscal Year 2015 estimates.

Appropriation Adjustments

In addition to statewide compensation and internal service fund cost increases, the following appropriation adjustments were made during the 2015 General Session:

DescriptionOngoingOne-Time Attorney General Dedicated Credit Adjustments$278,100$0

OngoingOne-TimeFinancing Source

$91,800$0General Fund

$186,300$0Federal Funds

This item designates additional funding appropriated to an agency to pay higher costs for Attorney General services, due to statewide and AG-specific compensation increases.

Supplemental Federal Funds Adjustment - Human Services$0$996,200

OngoingOne-TimeFinancing Source

$0$996,200Federal Funds

No Description

Staff Analysis

Separate tables are shown under the tab labeled "Financials" in each COBI section. These tables provide information regarding: 1) funding sources (where the money comes from), 2) standardized state expenditure categories (where the money goes), and 3) agency sub-programs (when viewed at the line item level). For the most recent completed fiscal year, the following information represents the purposes for which the money was used:

Recovery Services Administration Detailed Purposes

ORS Financial Services Detailed Purposes

ORS Electronic Technology Detailed Purposes

ORS Child Support Collections Detailed Purposes

ORS Children in Care Collections Detailed Purposes

ORS Attorney General Contract Detailed Purposes

ORS Medical Collections Detailed Purposes

Issue Brief - 2014 Interim - Food Stamp Child Support Cooperation Study

Food Stamp Child Support Cooperation Study

Performance measures can be found at the individual program level.

Statute

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 14: Uniform Interstate Family 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

In addition to state law, many functions provided by ORS have provisions detailed in federal law. Those federal law references, where available, follow:

42 USC 1917(b): Medicaid Liens and Recovery
42 CFR 433 (D) and (F): Medicaid Recovery
42 USC 653 -- 669b: IV-D Child Support Enforcement
45 CFR. 301 -- 310: IV-D Child Support Enforcement

Intent Language

SB0002: Item 84

The Legislature intends the Office of Recovery Services report to the Office of the Legislative Fiscal Analyst by September 1, 2015 regarding implementation of 2014 General Session fee increases and a detailed listing of the intended uses of the additional fee revenue with associated amounts.

SB0007S01: Item 29

The Legislature intends that the Department of Human Services report on the following performance measures for the Office of Recovery Services line item: (1) ORS Total Collections (Target = $250 million), (2) Child Support Services Collections (Target = $215 million), and (3) Ratio: ORS Collections to Cost (Target = > 5.9 to 1) by January 1, 2016 to the Social Services Appropriations Subcommittee.

For analysis of current budget requests and discussion of issues related to this budget click here.

Display By:

Program

Funding Source

Expenditure Category

Appropriation Type:

Appropriation History by

Programs	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Administration - ORS	1,127,300	1,075,100	1,014,300	994,700	969,600	(77,200)	892,400	30,300	922,700
Financial Services	5,713,100	5,529,000	6,124,400	2,297,700	2,378,500	746,700	3,125,200	(889,300)	2,235,900
Electronic Technology	9,527,100	7,812,600	8,758,700	7,978,900	7,503,100	1,054,000	8,557,100	(363,300)	8,193,800
Child Support Services	21,467,200	20,483,600	19,804,700	22,473,300	26,261,300	(2,907,300)	23,354,000	634,800	23,988,800
Investigations and Collections	0	0	0	0	0	0	0	0	0
Children in Care Collections	1,459,500	332,400	204,900	606,300	603,400	79,900	683,300	16,200	699,500
Attorney General Contract	4,358,500	4,160,700	3,715,400	4,207,700	3,925,500	480,000	4,405,500	251,300	4,656,800
Medical Collections	2,320,600	2,246,200	2,359,800	2,926,800	2,917,300	262,300	3,179,600	82,200	3,261,800
DHS Recovery Services Extra	0	0	0	0	0	0	0	0	0
Total	$45,973,300	$41,639,600	$41,982,200	$41,485,400	$44,558,700	($361,600)	$44,197,100	($237,800)	$43,959,300

Sources of Finance	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
General Fund	13,675,600	12,536,400	12,535,400	12,700,100	12,967,800	0	12,967,800	392,900	13,360,700
General Fund, One-time	33,500	156,000	0	33,800	67,700	0	67,700	12,500	80,200
Federal Funds	22,302,800	24,094,400	17,957,100	17,867,800	18,076,200	1,536,400	19,612,600	(1,019,200)	18,593,400
American Recovery and Reinvestment Act	6,204,100	0	0	0	0	0	0	0	0
Dedicated Credits Revenue	2,867,700	2,756,200	9,281,200	8,330,800	11,032,600	(2,045,300)	8,987,300	318,300	9,305,600
Transfers	0	0	0	0	0	0	0	61,500	61,500
Transfers - Medicaid	2,285,700	2,039,300	2,160,000	2,364,000	2,361,000	(15,900)	2,345,100	(3,800)	2,341,300
Transfers - Other Agencies	67,400	59,200	51,500	189,000	53,400	163,200	216,600	0	216,600
Transfers - Within Agency	39,800	0	0	0	0	0	0	0	0
Lapsing Balance	(1,503,300)	(1,900)	(3,000)	(100)	0	0	0	0	0
Total	$45,973,300	$41,639,600	$41,982,200	$41,485,400	$44,558,700	($361,600)	$44,197,100	($237,800)	$43,959,300

Categories of Expenditure	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Personnel Services	27,835,800	25,635,800	25,677,800	25,325,500	27,158,600	(130,800)	27,027,800	858,500	27,886,300
In-state Travel	25,300	31,700	22,700	13,900	3,200	(1,700)	1,500	0	1,500
Out-of-state Travel	0	4,800	9,800	8,000	4,800	1,700	6,500	0	6,500
Current Expense	10,040,700	9,653,800	9,264,100	9,482,700	11,017,700	(954,700)	10,063,000	(689,200)	9,373,800
DP Current Expense	8,071,500	6,313,500	7,007,800	6,639,100	6,374,400	723,900	7,098,300	(407,100)	6,691,200
DP Capital Outlay	0	0	0	16,200	0	0	0	0	0
Total	$45,973,300	$41,639,600	$41,982,200	$41,485,400	$44,558,700	($361,600)	$44,197,100	($237,800)	$43,959,300

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Other Indicators	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Approp
Budgeted FTE	452.02	459.25	490.50	415.30	409.56	1.94	411.50	411.50
Actual FTE	413.36	387.40	386.30	372	0	0	0	0
Vehicles	7	7	7	5	7	(2)	5	5

COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.