[Code of Federal Regulations]
[Title 45, Volume 2]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 45CFR305.60]

[Page 280-281]
 
                        TITLE 45--PUBLIC WELFARE
 
    CHAPTER III--OFFICE OF CHILD SUPPORT ENFORCEMENT (CHILD SUPPORT 
 
PART 305_PROGRAM PERFORMANCE MEASURES, STANDARDS, FINANCIAL INCENTIVES, 
AND PENALTIES--Table of Contents
 
Sec. 305.60  Types and scope of Federal audits.

    (a) OCSE will conduct audits, at least once every three years (or 
more frequently if the State fails to meet performance standards and 
reliability of data requirements) to assess the completeness, 
authenticity, reliability, accuracy and security of data and the systems 
used to process the data in calculating performance indicators under 
this part;
    (b) Also, OCSE will conduct audits to determine the adequacy of 
financial management of the State IV-D program, including assessments 
of:
    (1) Whether funds to carry out the State program are being 
appropriately expended, and are properly and fully accounted for; and
    (2) Whether collections and disbursements of support payments are 
carried out correctly and are fully accounted for; and
    (c) OCSE will conduct audits for such other purposes as the 
Secretary may find necessary.
    (1) These audits include audits to determine if the State is 
substantially complying with one or more of the requirements of the IV-D 
program (with the exception of the requirements of section 454(24) of 
the Act relating to statewide-automated systems and section 454(27)(A) 
and (B)(i) relating to the State Disbursement Unit) as defined in Sec. 
305.63 of this part. Other audits will be conducted at the discretion of 
OCSE.
    (2) Audits to determine substantial compliance will be initiated 
based on substantiated evidence of a failure by

[[Page 281]]

the State to meet IV-D program requirements. Evidence, which could 
warrant an audit to determine substantial compliance, includes:
    (i) The results of two or more State self-reviews conducted under 
section 454(15)(A) of the Act which: Show evidence of sustained poor 
performance; or indicate that the State has not corrected deficiencies 
identified in previous self-assessments, or that those deficiencies are 
determined to seriously impact the performance of the State's program; 
or
    (ii) Evidence of a State program's systemic failure to provide 
adequate services under the program through a pattern of non-compliance 
over time.
    (d) OCSE will conduct audits of the State's IV-D program through 
inspection, inquiries, observation, and confirmation and in accordance 
with standards promulgated by the Comptroller General of the United 
States in ``Government Auditing Standards.''