17. Audits‎ > ‎

17.1 Introduction

Chapter Federal Authority
Audits Social Security Act
§452(a)(4) Duties of the Secretary
§454(15)(A) State plan for child and spousal support
§458 Incentive payments to the States
26 U.S.C  § 6103  Confidentiality and disclosure of returns and return information
26 U.S.C. § 7213 Unauthorized disclosure of information
45 CFR 303.21 Safeguarding and disclosure of confidential information
45 CFR 305 Program Performance Measures, Standards, Financial Incentives, and Penalties
45 CFR 305.63 Standards for determining substantial compliance with IV-D requirements
45 CFR 308 – Annual State Self Assessment Review and Report
Subject State Authority
Introduction None
Policy Number Effective Date
17.1 October 1, 2010


This chapter contains the following sections:

  • Data Reliability Audit
  • Self-Assessment Review
  • IRS Safeguarding Review
  • Fiscal and Foster Care Audit

Both federal and state law requires that state IV-D child support programs assess their performance and operation effectiveness.  In order to objectively assess the Wyoming CSE Program, the State CSE Office along with the federal OCSE audit or review physical cases, POSSE, and offices to ensure maximum program performance, quality case work, and secure and confidential work space.

Federal Timeframes

In order to ensure the best possible service to the customers within the Wyoming CSE Program, the federal OCSE established certain minimum timeframes by which actions within the child support program should take place.  All IV-D cases will meet the federal timeframes discussed in detail in the following policy manual chapters:

On an annual basis, the Wyoming CSE Program assesses the federal timeframes through the Self-Assessment Review discussed in detail in 17.3 Audits – Self-Assessment Review.

Federal Incentive

The federal incentive funding system to states includes five measures to track the success of states in establishing paternity and support orders, enforcing support orders, and cost-effectiveness.  The following provides a brief description of each federal incentive measure. 

Paternity Establishment Formulas:

Within a fiscal year, paternity shall be established for ninety percent (90%) of children born out of wedlock for a state to receive the maximum incentive.  States may choose one of two methods to calculate paternity – IV-D Paternity Establishment Percentage (PEP) or Statewide PEP.  Wyoming utilizes the Statewide PEP method.


Total # of children in IV-D caseload in the fiscal year born out of wedlock with paternity established or acknowledged

Total # of children in IV-D caseload as of the end of the preceding fiscal year who were born out of wedlock

Statewide PEP

Total # of children born out of wedlock in the state, for whom paternity was established or acknowledged during the fiscal year

Total # of children born out of wedlock during the preceding fiscal year

Note:  : If the paternity establishment rate for a state is below ninety percent (90%), the rate shall increase by 2% on a yearly basis until the rate reaches ninety percent (90%) or the state may be penalized by the federal government.

Order Establishment Formula

In order to maximize the incentive attached to the order establishment measure, Wyoming shall establish support orders for more than 80% of its caseload.  The federal incentive measure formula for support order establishment is as follows:

Number of IV-D cases with support orders during the fiscal year

Total number of IV-D cases during fiscal year

Current Support Collected

In order to maximize the incentive attached to the current support measure, Wyoming shall collect more than 80% of the current support due.  This measure is computed monthly and the total of all months is reported at the end of the federal fiscal year.  The federal incentive measure formula for current support collected is as follows:

Number of dollars collected for current support in IV-D cases

Total dollars owed for current support in IV-D cases

Arrears Cases Paying

Within a fiscal year, Wyoming shall receive a payment toward past-due support where some of the support was disbursed to the family unless all past-due support is owed to Wyoming.  In order to receive the maximum incentive amount allowed for this measure, Wyoming shall receive an arrearage payment on 80% of all cases with arrears.  The federal incentive measure formula for arrears cases paying is:

Total number of eligible IV-D cases paying toward arrears

Total number of IV-D cases with arrears due


The federal incentive measure formula for cost-effectiveness is:

Total IV-D Dollars Collected

Total IV-D Dollars Expended

In order for the Wyoming CSE Program to receive incentive payments based upon its performance, its program data reliability will be ninety-five percent (95%) or higher.  See 17.2 Data Reliability Audit for details.

Cross Reference


Version Number Last Revised Date
1 July 1, 2014