Job Instruction - Distribution and Disbursement Desk Aid

Date/Version: 06/01/2026 - v.1

Process Owner: Financial Team

Review Cadence: Annually

Process/Purpose: To provide reference regarding how payments apply according to the federal algorithm so that case managers can confidently answer payment inquiries from customers.
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Important Steps (WHAT?)

Key Points

(HOW?)

Artifacts

A logical segment of the operations that advances the work

Important actions in the steps that will: Make or break the job Make the job easier

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1

Distribution vs Disbursement

  • Distribution (Support Payor Case Balance Summary): To what obligation type and arrears type (principal and/or interest) did the payment apply to?
  • Disbursement (Support Recipient Case Balance Summary): To what bucket (principal and interest) did the payment apply to?
  
2

Distribution

Support payments that are not IRS Refund Special Collection:

  • Current Child Support
  • Current Spousal Maintenance
  • Current Cash Medical Support
  • Past Support Judgment (Principal and Interest)
  • Judgment for Child Support Arrears (Principal and Interest)
  • Judgment for Spousal Arrears (Principal and Interest)
  • Judgment for Cash Medical Arrears (Principal and Interest)
  • Judgment for actual costs of pregnancy, childbirth and other related costs and corresponding interest (LIC) - Historical
  • Judgment for Medical Expenses (Principal and Interest)
  • Child Support Arrears
  • Spousal Maintenance Arrears
  • Cash Medical Arrears
  • Clearinghouse Fee - Current
  • Clearinghouse Fee - Arrears
  • IRS Tax Reversal (IRA)
  • Insufficient Funds (NSF)
  
3

Special Collection Payments (IRS)
  • Past Support Judgment (Principal and Interest)
  • Judgment for Child Support Arrears (Principal and Interest)
  • Judgment for Spousal Arrears (Principal and Interest)
  • Judgment for Cash Medical Arrears (Principal and Interest)
  • Judgment for actual costs of pregnancy, childbirth and other related costs and corresponding interest (LIC) - Historical
  • Judgment for Medical Expenses (Principal and Interest)
  • Child Support Arrears
  • Spousal Maintenance Arrears
  • Cash Medical Arrears
  
4

Distribution for Never Assistance Cases (NAI)
  • Current Support to the family
  • Never Assigned Arrears Principal and Interest
  
5

Distribution for Current Assistance Cases (CAI aka active TANF)
  • Benefit Cap Current to Family
  • Current Child Support to State
  • Current Spousal Maintenance to State
  • Current Cash Medical Support to State
  • Benefit Cap Never Assigned Principal to Family
  • Temporarily Assigned Principal to State
  • Permanently Assigned Principal to State
  • Never Assigned Principal to Family
  • Conditionally Assigned Principal to Family
  • Unassigned Pre-Assistance Principal to Family
  • Unassigned During Assistance Principal to Family
  • Benefit Cap Never Assigned Interest to Family
  • Temporarily Assigned Interest to State
  • Permanently Assigned Interest to State
  • Never Assigned Interest to Family
  • Conditionally Assigned Interest to Family
  • Unassigned Pre-Assistance Interest to Family
  • Unassigned During Assistance Interest to Family
  
6

Distribution for Former Assistance Cases (FAI)
  • Current Child Support to Family
  • Current Spousal Maintenance to Family
  • Current Cash Medical
  • Benefit Cap Never Principal to Family
  • Never Assigned Principal to Family
  • Unassigned Pre Assistance Principal to Family
  • Conditionally Assigned Principal to Family
  • Permanently Assigned Principal to State
  • Unassigned During Assistance Principal to Family
  • Benefit Cap Never Interest to Family
  • Never Assigned Interest to Family
  • Unassigned Pre Assistance Interest to Family
  • Conditionally Assigned Interest to Family
  • Permanently Assigned Interest to State
  • Unassigned During Assistance Interest to Family
  
7

Things to keep in mind

  • The order of Disbursement shown for IRS Tax Refund Intercepts only applies to that type of payment; all other types of payments go through the regular algorithm - and are disbursed according to the case type. Also, any other type of federal or IRS payment and DOR Tax Intercept payments also go through the regular algorithm, and are disbursed according to the case type.
  • Under Conditionally Assigned arrears, money retained by the state (when the payment is through the IRS tax intercept program) reduces the State Retainable and the URA. Money sent to the family under Conditionally Assigned arrears reduces the State Retainable but NOT the URA. The state retainable is reduced in both cases because it is arrears due under the court order. The URA is only reduced when the state retains the payment because it is TANF grant money that has been expended.
  • The State will only retain money up to URA. Once URA balance has reached zero, payments will disburse to CP, even on a CAI case
  • For BC and CNOG cases, the amount of current support that is received is prorated according to each child’s percentage of the total current support due. The arrears are paid in the order listed above. The monies are held in EOM until month end processing.
  • A CP in a IV-D Never Assistance (NAI) case that has received at least $500.00 of support in a federal fiscal year (Oct – Sept) is charged an annual fee of $35.00 (NAC/NAA).