COUNTY OF SAN MATEO
Inter-Departmental Correspondence

Employee and Public Services Department

DATE:

October 18, 2004

BOARD MEETING DATE:

November 2, 2004

TO:

Honorable Board of Supervisors

FROM:

Mary Welch, Director of Employee and Public Services
Girdie Bernard, Division Manager, Revenue Services

SUBJECT:

Request for Relief of Accountability of Delinquent Accounts

Recommendation

Adopt a resolution authorizing the abandonment of collection effort and relief of accountability for certain San Mateo County accounts receivable totaling $4,500,191.24 for the fiscal year 2003-04

Background
The Revenue Services Division is responsible for collecting monies for services rendered or for fines against persons who do not make payment. Typical collection accounts include court fines, medical and clinic services, welfare over-payments and private defender fees.

The Government Code provides that the County can seek relief from collection efforts for uncollectible accounts by writing off uncollectible debts after collection efforts are unsuccessful. County Administrative Memorandum Number D-10 provides that such accounts be taken to the Board of Supervisors to request relief. Per County policy, we are now submitting our write-off request for fiscal year 2003-04.

Discussion
The recommended write-off for FY 2003/2004 is $4,500,191.24. The amount is consistent with the amount of the write-off approved by your Board for fiscal year 2002-03 for $4,499,833.12.

In fiscal year 2003-04 Revenue Services collected a total of $18.4 million, which represented $600,000 over our projection of $17.8. Revenue Services has consistently provided quality collection services for the County at a cost which is lower than companies in the private industry.

Revenue Services Accounts

Accounts presented for abandonment fall into five categories of uncollectibility. These are:

• Accounts that are too small to warrant further collection efforts. Examples include: initial account balances that are too small; and remaining balances on accounts that are too small. The uncollectible funds in these accounts for fiscal year 2003-04 total $17,523.81. There are no uncollectible funds in accounts over $10,000.

• Accounts lacking sufficient information for collection. Examples include: clients identified by name and general delivery address but without any other information; and clients who have moved and cannot be located. The uncollectible funds in accounts under $10,000 for fiscal year 2003-04 total $43,657.23. The uncollectible funds in accounts over $10,000 total $132,679.42.

• Accounts on which all collection efforts and options have been exhausted. Examples include: accounts that have aged beyond the statute of limitations for collection; and accounts that have been worked by Revenue Services staff and then referred to outside collection agencies and returned as uncollectible. The uncollectible funds in accounts under $10,000 for fiscal year 2003-04 total $3,174,786.05. The uncollectible funds in accounts over $10,000 total $711,774.79.

• Accounts for which the client has no resources to pay. Examples include: clients who have died and left no estates; clients who have died and left insolvent estates; and clients who are bankrupt and have no attachable assets. The uncollectible funds in accounts under $10,000 for fiscal year 2003-04 total $15,255.60. The uncollectible funds in accounts over $10,000 total $391,025.27.

• Accounts that, if further collection efforts were pursued, would place the client in extreme hardship. Examples include: clients who are Medically Indigent Adults; and clients who would become destitute as a result of making payment. The uncollectible funds in accounts under $10,000 for fiscal year 2003-04 total $479.50. The uncollectible funds in accounts over $10,000 total $13,009.57.

Attachment A provides a detailed listing of recommended write-offs by type of account and department.

Attachment B provides details on each of the 65 accounts over $10,000 recommended for abandonment.

Pursuant to the Terms of Government Code section 25258(b), the names of the assesses or persons liable and the amounts owed by each is incorporated by reference in this application are permanently maintained in the office of the Board of Supervisors for the County of San Mateo.

By signature above, we hereby verify, on information and belief, that the facts stated herein are true and correct.

Vision Alignment
This item keeps the commitment of responsive, effective and collaborative government through goal number 20: Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain.

Fiscal Impact
By virtue of the age and condition of the accounts, there is little chance of recovery of the $4,500,191.24. The accounts are not included in the amount provided to the Controller as collectible and thus will not affect the County's financial statement.

Attachment A
Revenue Services:

Uncollectible Accounts for Write-Off Accounts Under $10,000

Court

Health Dept.

SMC

Hospital

Misc.

Private

Defender

Private Defender Juvenile

Cost of Collection is Too Great

$13,720.66

$0.00

$0.10

$0.00

$55.00

$3,558.00

Lacking Sufficient Information to Collect

$24,263.49

$0.00

$13,486.24

$0.00

$0.00

$5,592.50

All Options Exhausted

$69,559.08

$92.00

$2,989,782.63

$66,142.94

$24,540.00

$6,640.00

No Resources to Pay

$9,538.14

$0.00

$2,041.53

$0.00

$2,532.43

$322.50

Erroneously Billed

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Hardship

$0.00

$0.00

$0.00

$0.00

$142.00

$337.50

TOTAL

$117,081.37

$92.00

$3,005,310.50

$66,142.94

$27,269.43

$16,450.50

Sheriff

Probation

Human Services

Total

Number

of Cases

Average

per Case

Cost of Collection is Too Great

$190.00

$0.05

$0.00

$17,523.81

190

$92.23

Lacking Sufficient Information to Collect

$315.00

$0.00

$0.00

$43,657.23

277

$157.61

All Options Exhausted

$8,947.00

$8,824.40

$258.00

$3,174,786.05

16,524

$192.13

No Resources to Pay

$821.00

$0.00

$0.00

$15,255.60

112

$136.21

Erroneously Billed

$0.00

$0.00

$0.00

$0.00

0

$0.00

Hardship

$0.00

$0.00

$0.00

$479.50

4

$119.88

TOTAL

$10,273.00

$8,824.45

$258.00

$3,251,702.19

17,107

$190.08

Revenue Services:
Uncollectible Accounts for Write-Off Accounts Over $10,000

SMC Hospital

(General)

Municipal

Court

Crystal Springs

EPS

Total

Number

of Cases

Average

per Case

Cost of Collection is Too Great

$0.00

$0.00

$0.00

$0.00

$0.00

0

$0.00

Lacking Sufficient Information to Collect

$132,679.42

$0.00

$0.00

$0.00

$132,679.42

7

$18,954.20

All Options Exhausted

$689,849.79

$11,925.00

$0.00

$10,000.00

$711,774.79

42

$16,947.02

No Resources to Pay

$369,135.33

$10,979.46

$10,910.48

$0.00

$391,025.27

15

$26,068.35

Erroneously Billed

$0.00

$0.00

$0.00

$0.00

$0.00

0

$$0.00

Hardship

$13,009.57

$0.00

$0.00

$0.00

$13,009.57

1

$13,009.57

TOTAL

$1,204,674.11

$22,904.46

$10,910.48

$10,000.00

$1,248,489.05

65

$19,207.52

Write Off Amounts in Excess of $10,000

There are 65 cases in excess of $10,000 that are being recommended for abandonment. These 65 cases fall into four general categories:

• Cases for which collection efforts have been exhausted and that have passed the legal time period during which collections can be made. There are 42 of these cases. The total for these cases is $711,774.79.

• Cases for which the client has no ability to pay. There are 15 of these cases.
The total for this case is $391,025.27.

• Cases that lack sufficient information to continue collection efforts. There are 7 of these cases. The total for these cases is $132,679.42.

• Cases that, if pursued, would cause the patient an extreme hardship. There is I case. The total for this case is $13,009.57.

Cases For Which All Collection Efforts Have Been Exhausted and That

Have Passed The Legal Time Period During Which Collections Can Be Made (42)

The Revenue Services Division has made extensive efforts to collect the monies on the accounts in this category. After exhausting all avenues available to the division, these cases were referred to an outside collection agency for additional collection efforts.

The outside agency has also been unsuccessful in collecting on these accounts.

The ability of the debtor to make payment on these cases is statutorily limited and the time period during which collections can be made has expired.

Number 986947 $10,000.00

Business closed. No current address. No attachable assets. No credit profile found.

Current whereabouts unknown.

Number 868350 $11,925.00

No response to collection notices. Telephone number disconnected. No credit profile available, no property ownership. No attachable assets. Current whereabouts unknown.

Number 920148 $19,086.64

Debtor with no current home address. Credit report negative. No employment listed in Employment Development Department (EDD). No real property ownership listed.

Number 976388 $12,045.39

No response to collection notices. Telephone number disconnected. No credit profile available, no property ownership, no attachable assets. Current whereabouts unknown.

Number 939438 $15,646.19

Patient not eligible for Medi-Cal. Patient is unemployed and has no insurance. No credit information is available, no real property listed. No attachable assets.

Number 923584 $15,600.14

No responses to notices. No credit profile found. No property ownership listed.

No attachable assets.

Number 1012189 $11,432.11

Patient applied for Medi-Cal Assistance but was denied. Credit profile is negative, no property ownership listed, no response to collection attempts. Current whereabouts unknown.

Number 971223 $24,460.74

No response to collection notices. No credit information available, no employment listed, no real property listed. Current whereabouts unknown.

Number 928889 $11,853.21

Mail returned from several addresses. No employment information available, no credit history, no real property. Current whereabouts unknown.

Number 1177375 $16,420.79

Patient moved out of the Country. No forwarding address listed, no employment information available, no credit profile found, no real property listed.

Number 1150736 $15,989.18

Patient applied for Medi-Cal Assistance but was denied. Credit profile is negative, no property ownership listed, no response to collection attempts. Current whereabouts unknown.

Number 962612 $10,404.67

Mail returned due to no forwarding address. Telephone disconnected. No credit information available, no real property listed. Current whereabouts unknown.

Number 948419 $15,639.44

Patient unemployed. Mail has been returned from current address. Attempts to locate have been unsuccessful. No attachable assets. Current whereabouts unknown

Number 953667 $17,395.06

Patient moved out of the Country. No social security number and no credit history. Attempts to locate patient have been unsuccessful. Current whereabouts unknown.

Number 973579 $12,141.50

No responses to collection notices. No credit information available, no employment listed, no real property listed. Current whereabouts unknown.

Number 950758 $26,059.26

Patient moved out of state. No social security number and no credit history. Attempts to locate patient have been unsuccessful. Current whereabouts unknown.

Number 1000088 $12,940.90

No responses to collection notices. No credit information available, no employment listed, no real property listed. Current whereabouts unknown.

Number 873093 $17,251.10

No responses to collection notices. No credit information available, no employment listed, no real property listed. Current whereabouts unknown.

Number 920291 $19,497.44

Number 920287…………………………………………………………………$30,437.89

Mail returned, no forwarding address. No phone listed, no property ownership listed. Current whereabouts unknown.

Number 899397 $18,136.95

Patient is unemployed and is unable to pay. No insurance, no credit information available, no property ownership. No attachable assets.

Number 923476 $13,065.23

Mail returned, no forwarding address. No phone listed, no property ownership listed. Current whereabouts unknown.

Number 910093 $12,902.79

Patient moved out of the Country. No credit information available. No employment listed. No real property listed. Current whereabouts unknown.

Number 923137 $36,366.16

Patient moved out of the Country. No credit information available. No employment listed. No real property listed. Current whereabouts unknown.

Number 972404 $14,820.68

No response to notices. No credit profile. No phone numbers listed. No property ownership listed. Current whereabouts unknown.

Number 927695 $11,627.40

Patient died. No attachable assets and no estate.

Number 887029 $16,473.08

Mail returned, no forwarding address. No phone listed, no property ownership listed. Current whereabouts unknown.

Number 954877 $14,805.29

No response to notices. No credit profile. No phone numbers listed. No property ownership listed. Current whereabouts unknown.

Number 931829 $14,239.15

No response to notices. No credit profile. No phone numbers listed. No property ownership listed. Current whereabouts unknown.

Number 971031 $36.406.40

Mail return, no forwarded address. No credit information, no property ownership.

Current whereabouts unknown.

Number 971061 $15,064.32

No responses to notices. Telephone disconnected. Credit report is negative. No employment listed. No real property listed. Current whereabouts unknown.

Number 916983 $11,200.77

Number 916986 ………………………………………………………………..$11,888.69

Patient is unemployed. No insurance, no credit information available, no property ownership. No attachable assets.

Number 966322 $39,237.38

Patient is unemployed. Mail has been returned from current address. Attempts to locate have been unsuccessful. Current whereabouts unknown.

Number 949619 $12,247.11

Number 971152…………………………………………………………..…….$22,009.95

No responses to notices. Telephone disconnected. Credit report is negative. No employment listed. No real property listed. Current whereabouts unknown.

Number 930220 $11,191.48

No responses to notices. Telephone disconnected. Credit report is negative. No employment listed. No real property listed. Current Whereabouts unknown.

Number 976278 $14,797.44

Patient is unemployed. No insurance, no credit information available, no property ownership. No attachable assets.

Number 954962 $15,760.99

Patient moved out of the Country. No credit information available. No employment listed. No real property listed. Current whereabouts unknown.

Number 1239155 $18,734.38

No responses to notices. Telephone disconnected. Credit report is negative. No employment listed. No real property listed. Current whereabouts unknown.

Number 1227531 $12,742.05

No responses to notices. Telephone disconnected. Credit report is negative. No employment listed. No real property listed. Current whereabouts unknown.

Number 1204230 $11,830.45

Debtor incarcerated. No credit file, no property ownership listed. No attachable assets.

Cases For Which The Client Has No Ability To Pay (15)

These cases represent clients who have no assets and have no ability to pay. There are 15 of these.

Number 1204205 $10,910.48

Patient died. No attachable assets and no estate.

Number 1087554 $10,979.46

Patient died. No attachable assets and no estate.

Number 1185331 $10,379.60

Patient died. No attachable assets and no estate.

Number 1238428 $20,097.50

Patient filed no asset bankruptcy. No attachable assets.

Number 1240112 $37,270.63

Patient died. No attachable assets and no estate.

Number 1235341 $22,362.33

Patient died. No attachable assets and no estate.

Number 1269711 $17,689.07

Patient died. No attachable assets and no estate.

Number 1271851 $13,013.18

Patient died. No attachable assets and no estate.

Number 1234318 $14,796.49

Number 1234494…………………………………………….…………………$22,481.20

Patient filed no asset bankruptcy. No attachable assets.

Number 1222488 $30,999.74

Patient died. No attachable assets and no estate.

Number 1257528 $26,593.41

Patient died. No attachable assets and no estate.

Number 1234882 $71,329.25

Patient died. No attachable assets and no estate.

Number 1222414 $55,305.81

Patient died. No attachable assets and no estate.

Number 1234284 $26,817.12

Patient died. No attachable assets and no estate.

Cases Lacking Sufficient Information to Continue Collection Efforts (7)

Number 1104820 $10,453.79

Sent numerous notices with no response. Credit reports shows several charge offs and additional collection accounts. DMV shows license suspended and no other information.

Current whereabouts unknown.

Number 1240532 $13,778.05

Sent numerous notices with no response. Credit reports indicates that individual moved out of state. Unable to locate new address.

Current whereabouts unknown.

Number 1238311 $25,311.33

Sent numerous notices with no response. No additional information on credit reports. DMV shows license suspended and no other information. No employment information, no real property found.

Current whereabouts unknown.

Number 1227034 $20,614.55

Sent numerous notices with no response. NO additional information on credit report, no DMV information available, no employment information, no real property listed.

Current whereabouts unknown.

Number 1238695 $33,761.05

Debtor with no current home address. Credit report negative. No employment listed in Employment Development Department (EDD). No real property ownership listed.

Current whereabouts unknown.

Number 1239616 $17,111.32

Sent numerous notices with no response. Phone disconnected. Credit reports shows several charge offs and additional collection accounts. No additional information on DMV. No employment information, no real property ownership listed.

Current whereabouts unknown.

Number 1235243 $11,649.33

Sent numerous notices with no response. Credit reports shows several charge offs and additional collection accounts. No additional DMV information. NO employment or property information found.

Current whereabouts unknown.