1 / 27

Oregon A/R and Collection Practices

Oregon A/R and Collection Practices. 1997 Secretary of State Audit, Opportunities to Improve #97-77 2004 Secretary of State Audit, Debt Collections #2004-24 2005 Secretary of State Audit, OUS Written-off Debt #2005-10

yorick
Download Presentation

Oregon A/R and Collection Practices

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Oregon A/R and Collection Practices 1997 Secretary of State Audit, Opportunities to Improve #97-77 2004 Secretary of State Audit, Debt Collections #2004-24 2005 Secretary of State Audit, OUS Written-off Debt #2005-10 Chuck Hibner, Administrator, DHS’s Office of Payment Accuracy and Recovery ((former Director Oregon Audits Division (2006 – 2009))

  2. Audit Purpose – to identify and recommend ways in which the state could improve its processes for collecting delinquent debts. 1997 Audit – Opportunities to Improve Delinquent Debt Collection

  3. Transportation – Weight-mile taxes • Human Service – Benefit overpayments • Employment – Benefit overpayments and insurance taxes • Consumer and Business Services – Workers’ comp taxes, penalties and worker claim costs • Revenue – Other Agency Account unit & Income Taxes Agencies Involved

  4. Represented $940 million in debt for CY 1995 • Collected $100 million of the $940 during the calendar year (11%). Scope

  5. Collection Percentage • Revenue (OAA) = 2.4% • Revenue (PIT) = 23.9% • Human Services (benefits) =11.7% • Employment (benefits) =14.4% • Consumer & Business =6.3% • Employment (taxes) : Unavailable • Employment (benefits) = 14.4% • Transportation (weight-mile tax) = 13.7% Findings – Appendix A

  6. In 1995 collection process decentralized. • State, federal laws and regulation grant unique collection powers and impose restrictions on specific agencies. • Private firms’ small percentage of total occurs partly because some state agencies believe their own efforts are more cost effective. • Decentralized collection results limited information sharing regarding best practices and individual debtors. Findings

  7. State agencies form a statewide collection committee to foster interagency coordination on collection issues and sharing of best practices. Recommendations

  8. Establish a vendor offset program Recommendations

  9. Request authority to perform administrative garnishments Recommendations

  10. Use a statewide master contract to hire private collection firms Recommendations

  11. Review autodialing system and determine whether use would be beneficial Recommendations

  12. Pilot project to test how PCFs can be better utilized • Get approval to access “new hire” data • Expand use of technology Other Recommendations

  13. Purpose – • Follow up on the 1997 audit and; • Determine if state agencies could improve their collection of delinquent debt. 2004 Audit – Progress Made But Still Opportunities

  14. Transportation – Weight-mile taxes • Judicial – Criminal fines and other fees • Human Service – Benefit overpayments • Employment – Benefit overpayments and insurance taxes • Environmental Quality – Civil penalties • Consumer and Business Services – Workers’ comp taxes • Revenue – Other Agency Account unit Agencies Involved

  15. Represented $237 million of the $1.2 billion in delinquent debt in fy 2002 (20%). • Collected $45 million of the $237 during the fiscal year (19%). Scope

  16. Agencies have their own internal debt collection units (Employment, Human Services, Transportation, and Consumer and Business Services) • Primarily use Revenue’s Other Agency Accounts Unit • Primarily contract for service of private collection agencies. Three Primary Approaches

  17. Prior audit finding implemented with the exception of the vendor offset Findings

  18. Insufficient Staffing and Large Caseloads Prevent Timely Follow-up • Activity = Collection • Revenue: Activity = 13% & Collection =9% • Human Services: Activity = 43% & Collection =17% • Employment (benefits): Activity = 82% & Collection =32% • Consumer & Business: Activity = 92% & Collection =75% • Employment (taxes) : Activity = 82% & Collection =32% Findings

  19. Direct Telephone Contact Could Improve Collection Results • General Accountability Office report concluded early telephone contact increased chances of collection, and more effective than billing statements. Findings

  20. Strengthen Oversight of Private Collection Agencies • Lack of periodic review of accounts assigned to confirm that adequate collection efforts are performed. Findings

  21. Questioned Cost Effectiveness of Further Assigning Debt After It Has Been Worked by an Internal Collection Unit • Cost to monitor a private collection firm may be more than the state’s return. Findings

  22. Purpose – • Determine if previously written-off debt should be reassessed due to the changing income circumstances of the debtors. 2005 Audit – OUS: Written-off Debt Review

  23. Written-off debt is debt determined to be uncollectable after all reasonable efforts to collect have been undertaken; and • Note: the debt is still owed to the state. Scope

  24. From FY 2004 data identified 4,700 debtors with over $1.12 million written-off that earned wages during the year. Findings

  25. If a debt previously written-off becomes collectable, state law requires state agencies to proceed with collection. Findings

  26. Revenue’s OAA could be helpful to Universities with collecting written-off debt . Findings

  27. Question? Charles A. Hibner, CPA Administrator, Office of Payment Accuracy and Recovery Director, Office of Program Integrity Oregon Department of Human Services 2850 Broadway Street NE Salem , OR  97303 503-378-3584

More Related