All of the child's resources, including parental support, the child's own benefits, insurance, cash assets, trust accounts, and, for the child who is preparing for independent living, the child's earnings, are considered, as established in the service agreement, in determining the amount available for reimbursement of the cost of care. In calculating the cost of care, the local department shall include the board rate, clothing allowance, any medical care payments made on behalf of the child, and any supplemental purchases made to meet the child's special needs. The local department shall: Initiate child support for every child in out-of-home placement; and Pursue support enforcement activity for both absent parents, unless the: Legal rights of the parents or legal guardian have been officially terminated; and Parents, parent, or legal guardian have been officially notified of the termination. In this regulation, “parent” means the legal father or mother or natural father or mother whose rights and obligations have not been terminated. Legal action for support need not be taken against the father or mother when parental rights have been terminated. The local department caseworkers shall: Inform the parents that they are responsible for the financial support of their children whether the child is in care by court order or by voluntary agreement; and Initiate a support action by furnishing information regarding the child's parents to the local child support enforcement (CSE) unit, which will undertake child support enforcement action for all out-of-home placement cases. After the CSE unit secures a court order of support, the CSE worker shall: Send a copy of the court order to the out-of-home placement caseworker and to the IV-E eligibility case reviewer; Retain copies of the document in both the child's and the parents' or legal guardian's (if appropriate) case records; and Notify the out-of-home placement worker of any changes. Whenever a child's plan is reassessed, the out-of-home placement worker shall request information on whether support has been paid according to the terms of the order, which shall be: Documented in the records; and Considered in making recommendations to the court and reviewing panels. When there is a change in the parents' or legal guardian's address or employment, or any other change which would affect the collection of child support, or when an out-of-home placement case is closed, the out-of-home placement worker shall forward this information to the Child Support Administration. The resource from the child's own earnings is determined in a manner consistent with a plan for the child to eventually assume responsibility for the child's support as provided for in the service agreement. Other Resources for the Child. Other resources available for the child may be in the form of cash assets, trust accounts, insurance (including survivor's disability insurance), or some type of benefit or supplemental security income for the disabled child. While in out-of-home placement, if the child is 18 years old or older and is the beneficiary of insurance or survivor's benefits, the child shall choose whether to: Receive benefits and pay the local department; or Designate the local department as the payee. The local department shall seek a representative payee for an incompetent child 18 years old or older. The child's resources shall be applied directly to the cost of care, with any excess applied first to meeting the special needs of the child, and the net excess saved in a savings account for future needs. Any potential benefits from other resources shall be pursued and made available if possible to the local department as payee. If excess funds saved for the child have not been spent before the child is discharged from out-of-home placement, the funds shall be: Returned to the child upon discharge if the child is 18 years old or older; or If the child is younger than 18 years old, transferred to the parent or legal guardian with whom the child will reside.