Public Agencies Can Compete Successfully
San Diego County, Calif.
Many departments throughout the county government charge fees for their services. For each department to handle its own accounts receivable would require the establishment of a group solely dedicated to that effort. Instead, the county, in a competitive bid process, selected the Office of Revenue and Recovery (ORR) to be the county’s collection agency.
The county’s goal, for the Managed Competition Program, was to improve its accounts receivable and collection management program. Through the managed competition process, the county asked for proposals that would increase the amount of debt collected and provide improved service to county departments. Annual collection targets for a three-year period were established.
The county received two proposals, both internal, as part of the process. Many of the prospective bidders felt that the annual collection targets were too high and that the consequences for not achieving the targets too severe. ORR was ultimately successful in its bid to provide comprehensive collections and accounts receivable management services to the county.
The ORR is a division of the county’s Auditor and Controller Department and is responsible for establishing accounts receivable, managing, collecting and accounting for more than $112 million in non-tax debt owed to the county.
To ensure that every attempt is made to collect the receivable, county departments and agencies refer their outstanding receivables to ORR. In this manner, these groups avoid the personnel, training, administration, and management expenses associated with this function, while at the same time acting in the best interests of the taxpayer.
The contract between the county and ORR established an annual target for the collection of non-tax debt owed to the county, and a commitment to seek methods to improve operations and increase efficiencies.
In the first two years of the contract, ORR exceeded the managed competition targets, while simultaneously experiencing significant cost savings. In FY99-00, actual collections totaled $16.2 million, which was $1 million over the collection target, while the county experienced $600,000 in cost savings. The next year, with the collection target set at $16.8 million, ORR collected $17.3 million and saved $500,000.
ORR also established a strong customer service orientation. A client services unit developed custom reports to meet the needs of client departments. Regular meetings were held with client departments to make sure all their needs were being met. Also, ORR established additional branch offices that could accept debtor payments and extended hours of operation for their convenience.
ORR established a comprehensive training program for all ORR employees, which included dealing with difficult debtors, and applying counseling and coaching skills. Managing the receivables also included ensuring that enforcement action was taken in a timely manner.
ORR’s Legal Enforcement group made significant contributions to the overall dollars collected. This group prepares legal documents, determines a parent’s ability to pay in the case of a juvenile offender, collects victim restitution from a debtor, or maintains and clears property liens. Lien payments collected increased by 18 percent and payments by or on behalf of juvenile offenders increased by 11 percent.
ORR’s initiatives for improving collections, improving customer service and improving the management of accounts receivable became a reality. Results are tangible and significant.
Financial Planning Alert!
Orange County, Fla.
The Family and Consumer Sciences Advisory Committee identified changes in the household environment in recent years as a major concern. Recent media suggests that today’s families live in a very different world from the one that existed even a year ago.
Families are experiencing stress and strains in trying to manage their resources. Economic uncertainty has forced individuals of all ages and income levels to develop a greater concern about how to effectively manage their money. After the September 11 disaster, people have become more aware than ever about how important it is to have financial plans. Recent studies indicate a growing need for families to become more sophisticated in their financial decision-making skills.
The Orange County-University of Florida Extension created Financial Planning Alert! to meet the financial needs of the citizens of Orange County. The program informed and educated the general public about financial planning in a non-intimidating environment. The program was a four-part series, held on Saturdays, with 90 minutes for each segment.
Program topics included: monitoring cash flow; investments-reacting to the financial market; basic wills and estate planning and tax strategies. The program was held prior to the year’s end, therefore participants could discuss, ask questions and obtain advice on how to save and manage their finances, estate laws, and prepare for 2001 income taxes.
The segments were taught by an Extension agent who used the Family Money Management Record Book to supplement the program. The agent developed and distributed the publicity promotion packet to the mass media. The promotion packet included a cover letter, press release, and fliers.
Information about the program was published in the local newspapers and newsletters and aired on local television community calendars. A 15-minute interview about the program was aired on Orange TV two weeks prior to the program. An impressive lineup of professionals from the Department of Insurance, Orange County Bar Association and Central Florida Society of Planners was recruited for presentations for the program.
There was no charge for the program and participants received free booklets and information that could later provide reference selection, use and management of various financial services. The program was so successful, it was to be repeated in the spring.
Ninety-eight people attended the Financial Planning Alert! program. The program assessment revealed the following results: 97 percent increased level of knowledge; 97 percent helped set goals and developed skills; 86 percent of participants’ needs were met by the program materials.
The last two segments were taped by Orange TV and are airing, recurrently, allowing the program to reach a larger portion of the general public, including the station’s viewing audience of 10,000 people.
Operating and capital expenses incurred in developing and implementing this program are funded by in-kind resources.
(Hats Off to … was compiled by Joseph Hansen, research assistant. For information regarding the Achievement Award program, please call (202) 661-8834.)
