Missouri State Auditor's Office

Parents wait for child support payments while state holds money and does not use all available resources to find parents

This audit reviewed why state officials held child support money owed to custodial and non-custodial parents and did not distribute it as soon as possible. As of February 2005, the state was still holding $2.5 million in payments collected over a 7-year-period ending in 2004. This report is the third audit on how well state officials collect and distribute child support. The following highlights the findings of the most recent audit work.

State releases thousands to parents after audit tests

State officials released $34,000 in child support due to parents after auditors showed no reason for the state to continue to hold it. Auditors reviewed 106 cases in which the state held child support payments for several reasons including: missing or expired addresses, intercepted tax refunds or payments received before they were due. (See page 5)

$1.7 million held for missing addresses

Auditors found state officials did not take appropriate actions to release payments on $116,000 held in 40 child support cases. On $14,000, state officials did not use all available resources to find correct addresses for custodial parents before closing the cases. On another $12,000 in open cases, state officials did not search for new custodial parent addresses. And on $7,000, state officials only searched for new addresses for a month before closing the cases. On a number of other cases, errors in case management were made or state officials had searched for new addresses for a while, but then closed the cases with monies still on hold. (See page 10)

Other states use address change service to find parents

Illinois child support collection officials have used the U.S. Postal Service's automated "address change service" to forward mail, update changed addresses and remove undeliverable addresses from their database. (See page 11)

Undistributed child support not always top priority

State officials have not made releasing held child support a top priority. State officials have not implemented federal recommendations on ways to reduce undistributed child support, but instead rely on unreliable automated computer processes or policies to close particular cases. (See page 14)

Electronic support payment cards still not used here

In November 2004, state officials said they would start using electronic payment cards - on a voluntary basis - to reduce held child support because of invalid addresses and save the state mailing costs. As of April 2005, state officials still had no timeline for implementing an electronic card process. Auditors found other states saved substantial money and significantly reduced held child support balances when switching payments to an electronic card. (See page 20)