Available Data Indicate That the Amount of Child Support Owed Has Increased in Recent Years

Data show that the amount of child support that was legally owed but unpaid almost doubled during the 4-year period from fiscal year 1996 to fiscal year 2000, even with increases in total collections. However, the amount owed is understated as a result of data limitations. Thousands of Private and Public Sector Entities Can Collect Child Support

Private attorneys make up the largest group of private entities. Both private firms and state agencies reported collecting amounts from about 60 percent of their cases. While private firms reported that they relied heavily on information vendors to locate noncustodial parents and their assets, state agencies reported that they primarily relied on state and federal databases for the same information. Private Firms Primarily Used Information Vendors, While State Agencies Relied on State and Federal Databases

Twenty-two of the 24 private firms that participated in our structured telephone interviews used information vendors as their primary source for locating noncustodial parents and their assets. Private Firms and State Agencies Called Noncustodial Parents, but Private Firms Also Called Third Parties

Both private firms and state agencies called noncustodial parents to collect child support, but only private firms called third parties to collect child support. Private firms also called third parties, such as friends, relatives, and neighbors, to locate noncustodial parents and to persuade the third party to prevail upon the noncustodial parent to make payments. Differing Interpretations of Law, Lack of CSE Guidance, and Agency Officials’ Concerns Influence Private Firms’ Access to FPLS Data

State agencies’ practices regarding the sharing of FPLS data with private firms were affected by differences in interpretation of whether federal law permits or requires state agencies to share FPLS data, the absence of guidance from OCSE, and state agency officials’ concerns about whether private firms would protect confidential data. Conclusion

Private firms use many enforcement tools and information sources to collect child support. While OCSE considers wage withholding to be the most effective enforcement tool, the wage withholding form and the related guidance make it difficult for employers to determine the validity of wage withholding notices that they receive from private firms. Use this FIPS code: : .
What GAO Found

To increase child support collections, Congress has considered proposals to improve the ability of private firms to gather information to help locate noncustodial parents and enforce the payment of child support. At the end of fiscal year 2000, the Office of Child Support Enforcement (OCSE) indicated that $89 billion in child support was owed but unpaid--a 96-percent increase since the end of fiscal year 1996. GAO believes that this amount is understated. Thousands of private and public sector entities can collect child support. Both private firms and state agencies reported collections from about 60 percent of their cases. Twenty-two of the 24 private firms GAO reviewed reported that they relied on private information vendors--commercial firms that sell information such as addresses, telephone numbers, and social security numbers--as their primary information source, whereas about one-third of state agencies reported using this source. State agencies relied heavily on state and federal automated databases to locate noncustodial parents and their assets. Additionally, private firms and the state agencies reported calling noncustodial parents to collect child support. However, only the private firms called third parties, such as relatives and neighbors of noncustodial parents to persuade them to prevail upon the noncustodial parent to make payments. The same enforcement tools are available to private firms and state agencies, but the process that they follow in using these tools often differ. Private firms, however, do not have access to federal tax refunds. Officials from both private firms and state agencies reported that the tool they most often use was wage withholding. However, the form and related guidance developed by OCSE for use in wage withholding make it difficult for employers to determine whether it is proper to begin withholding wages. Most of the state agencies had not provided information on noncustodial parents' location or assets from the Federal Parent Locator Service (FPLS). Practices for sharing with private firms were affected by differences in interpretation of whether federal law permits or requires state agencies to share FPLS data.