The intent of the Children’s Income Disbursement System (KIDS) is to centralize all of a child’s outside income, excluding child support, in order to increase agency efficiency and accountability in the receipt and disbursement of such funds. The KIDS account system is monitored by the FACES Payment Unit. This system provides the county office with all needed information regarding the status of a child’s KIDS account.

A child who is placed in Alternative Care and has an independent source of income (i.e., Social Security Income (SSI), Old Age Survivor Disability Income (OASDI), Veteran’s Affairs benefits (VA),and/or Railroad benefits, (excludes the child’s personal income, inheritance, or settlement income) etc.) will have these funds deposited into the KIDS account. These funds must be applied toward the care of the child prior to authorizing payment from State or Federal funds and are processed through the Children’s Services Income Disbursement system (KIDS). Only a child who has income benefits will have a KIDS account. Child support is placed in a separate fund and is used for the cost of the child’s care.

NOTE:  Inheritance and insurance settlements should not be deposited into the KIDS Account. The Children’s Service Worker should contact the child’s GAL to determine the appropriate type of account to set up for the child.

NOTE: A child who is still in CD custody and receiving support through OASDI must be made the payee when age eighteen (18) is reached, unless found incompetent by the Circuit Court.

NOTE: When a child becomes 16, a savings will accumulate from only SSI/OASDI income up to $999.00 in the KIDS Account to assist the child when released from CD custody.

NOTE: Any child receiving Job Training Partnership Act (JTPA) funds or similar grants including a grant for tuition and books, and weekly need-based payments, does not have to deposit the unearned income in the KIDS account.

How KIDS Accounts are Established

An account is automatically established upon entry of the first CS-KIDS-1 or when the Social Security Administration (SSA) deems CD as representative payee and sends a deposit to Division of Finance and Administrative Services (DFAS). If a paper check for SSI/OASDI income is received in the county office, it should be sent to DFAS at Post Office Box 1082, Jefferson City, Missouri 65102-1082 along with an email to the Cash Receipts Unit indicating a check has been sent. In the event a check is received in the county office for a youth 18 and older, the check is to be given to the youth.

The Social Security Specialist within DFAS completes all necessary forms to apply for benefits and to become representative payee. If granted by the Social Security Administration, then the CD Director shall be listed as the payee of benefits for children in the care and custody of CD. For example, the DFAS Social Security Specialist completes all necessary forms as required by SSI, OASDI, or VA and lists the CD Director as the designated payee. The Designee shall sign the application and add “for the Director of the Children’s Division.” However it is still the SSA’s determination to appoint the appropriate representative payee.

Maintaining and Utilizing the KIDS Account

• Payer(s) (SSI, OASDI, VA, etc.) shall be instructed to send the income directly to DFAS via electronic deposit. However, in the event the county office receives outside income for a child’s KIDS account, they must send the check along with CS-KIDS-1 to the DFAS Cash Receipts Unit.
• The system will automatically debit the KIDS account for maintenance payments and other expenses.

NOTE: The FACES Payment Unit processes fund recoupments on active KIDS accounts for children who exceed or are close to exceeding their resource limit for SSI so they remain eligible for these programs. The fund recoupment process takes money from the child’s account and refunds it to the state for services paid from CD program funds. Fund recoupments are processed for payments made from Alternative Care (AC), Residential Treatment (RT), and Children’s Treatment (CT).

• In order for the child to continue to receive SSI, the Social Security Administration requires that the account balance remains below $2,000.00. It will be necessary to identify needs the child may have that the excess balance may be used for. In consultation with the supervisor, the child’s placement provider, and Family Support Team, it is necessary to decide what needs the child may have that are not otherwise being met.
• Children’s Service Worker’s may request payment for additional expenses not covered by maintenance payments, following policy in the Child Welfare Manual. Back state debt always takes priority over additional expenditures for the child. The Children’s Service Worker should always contact the FACES Payment Unit prior to requesting additional expenditures. If KIDS funds are available, they can be used.
• If the child has a source of income, but for any reason the income is not received during a given month, and there are insufficient funds in the KIDS account, payment for that month will be made from Alternative Care funds by the type of funding source for which the child is eligible (HDN or IV-E). When the income for that month is actually received, it will be deposited in the child’s KIDS account and used to pay maintenance/special expenses for subsequent months. When a child leaves Alternative Care, these funds may be used to pay expenses which should have been paid from the KIDS account, but were paid by CD.
• A statement is available of all transactions involving the funds which have been deposited on the child’s behalf, to include each receipt and disbursement, and may be printed from the KIDS/Dedicated KIDS Account screens to show the most recent 12 months of KIDS Account activity.
• A copy of the CS-KIDS-1 shall be maintained in the business record and a copy of the CS-KIDS-2 shall be maintained in the child’s electronic record in FACES on the KIDS/Dedicated KIDS Account screen.

Rules for Accessing KIDS Account Funds

KIDS Account funds must first be used for the beneficiary’s current maintenance. Maintenance costs include “costs incurred in obtaining food, shelter, clothing, medical care, and personal comfort items”. In addition to maintenance costs, it is important to note that any money accessed from a child’s KIDS Account may only be used for approvable items that will follow that child after the closure of his/her foster care episode. Approvable items are specifically for the recipient and in the recipient’s best interests. Examples of allowable expenditures include:

• school supplies
• medical treatment and education or job skills training;
• if related to a child’s disability, personal needs assistance;
• special equipment;
• therapy or rehabilitation;
• extracurricular activities/items (sport camps, class rings, gymnastics and karate classes);
• funeral expenses;
• pre-paid burial plan,
• other items that support the child’s needs ie: additional clothing, a computer or other electronics, furniture and other household items such as bedding, and tutorial services for a child needing help with school.

NOTE: All purchases must be made, invoiced, and paid prior to adoption, guardianship, returning home, or going on a trial home visit.

Approved items purchase by the placement provider will be reimbursed by submitting a KIDS-2 form along with the proof of purchase. If the vendor is to be paid directly, please submit the KIDS-2 form and an invoice from the vendor.

Rules for Dedicated Account Funds

Money should be accessed for the benefit of the child and only for the following allowable expenses:

• Medical treatment and education or job skills training if related tothe child’s impairment(s),
• personal needs assistance,
• special equipment,
• funeral expenses,
• pre-paid burial plan,
• housing modification
• therapy or rehabilitation
• other items and services related to the child’s impairment(s) that the Social Security Administration determines to be appropriate.

KIDS Account Closure

When a child exits Alternative Care and the child’s case is closed in the Alternative Care screen in FACES, the FACES Payment Unit will determine expenses for five (5) years prior to the date the child left Alternative Care (see Section 516.120 RSMo). The FACES Payment Unit will process prior expenses from the KIDS account through fund recoupments for payments made from Alternative Care (AC); Residential Treatment (RT); and Children’s Treatment (CT).

When a child exits Alternative Care and the child’s case is closed in the Alternative Care Screen in FACES and the child is age 16 or over, the Children’s Service Worker shall check the KIDS/Dedicated KIDS Account screen in FACES or contact the FACES Payment Unit to determine the savings limit due to the youth (up to $999.00). If in excess of $999.00 back state debt shall be recouped or returned to the SSA. Once the amount due to the youth is determined, staff should complete a CS-KIDS-2 form for the person (payee) to whom money is to be released from the child’s KIDS account. This person may be the child’s parent, guardian, adoptive parent or him/herself, if an emancipated minor. It is vital that this occur timely in order for the child to receive funds to the most current address.

NOTE:  If a child age 16 or over has a savings and is being released from CD custody, their savings will not be used to reimburse the state for back state debt

NOTE:  If there is a KIDS account for which a payee cannot be located, after a months’ time, the money will either go to back state debt, be returned to SSA, or both.

SSI and OASDI: County Office staff shall advise a potential “representative payee” or emancipated minor to apply for SSI or OASDI at the local Social Security Office. Two forms are available in e-forms to assist with this:

• CD-271, Older Youth Change of Payee Request Form, for youth who are 18 and will be the payee of their benefits and
• CD-270, Change of Custodian Payee Request Form, for youth who are under age 18 and will not be the payee for benefits.

NOTE:  Any SSI checks deposited in a KIDS account after a child leaves alternative care must be returned to the Social Security Administration (SSA). The FACES Payment Unit will be responsible for returning these checks to the SSA.

Regional Social Security Specialists in Central Office are available if assistance is needed.

County office staff shall advise a potential payee or emancipated minor to apply with the appropriate VA office. It should be noted that VA benefits cease after a child’s adoption is finalized.