Millions in child support not being distributed

Part of the problem is not being able to locate the recipient.

JEFFERSON CITY, Mo. -- The state has not distributed millions of dollars in collected child support payments, often because it lacks a current address for the custodial parent, according to a state audit released Monday.

The audit found that as of February, the Department of Social Services' Family Support Division held $4.1 million in child support collections that hadn't been paid to custodial parents, noncustodial parents and the state. Some of that money was collected as long ago as 1997.

From 2001 to 2004, the audit said, the state held anywhere from $16.2 million a month to $3.8 million, with an average of $8.8 million a month on hold. The state collected an average of $42.8 million a month in that time.

Child support payments typically are held by the state if there is no current address on file for the recipient, if the money is from an intercepted tax refund or if the payment came in before it is due.

"We found some significant problems in the processes of getting the money that has been collected to the children that need it," said State Auditor Claire McCaskill.

Key among the audit's recommendations are that the state begin using a computer system to automatically search for a valid address for a parent whose address is missing or outdated and that the state allow parents to use electronic payment cards, rather than the mail, for child support payments.

The agency already uses an automated search for parents who owe child support and whose addresses are not correct. The department said in a response to the audit that it will begin doing so for custodial parents as well.

"We agree that timely distribution is of the utmost importance," department spokeswoman Deborah Scott said.

She said that over a seven-year period, undistributed collections amounted to less than 1 percent of the money brought in.

The department, which contracts with a private company to collect payments, said it hopes to allow electronic payment cards when a new contract takes effect next July but is still working out details.

The audit found that other states have benefited by using the U.S. Postal Service's address change service to forward mail, electronically update addresses and remove old ones from the database.

The service has no contract fee, but there is a cost when new addresses are found and provided electronically, the audit said. It noted that other states found the cost is far outweighed by the savings in staff time and postage.

The agency said it is looking at a variety of private location services to help with child support collections and that some companies use the Postal Service along with many other databases, which could be more helpful in tracking people down.

The agency also said that its primary focus in child support generally is to keep track of noncustodial parents who owe child support, not those who are receiving payments.