COUNTY OF SAN MATEO
Inter-Departmental Correspondence

Employee and Public Services Department

DATE:

November 4, 2004

BOARD MEETING DATE:

December 7, 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 accounts receivable totaling $400,928.93 handled by the Human Services Agency for fiscal year 2003-2004.

Background

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.

The accounts by the Human Services Agency are for Welfare Assistance over-payments. This request for relief of accountability is being submitted separately from the initial Revenue Services request due to additional time needed to further research the collectability of these debts.

Discussion

The recommended write-off for FY 2003/2004 is $400,928.93. The amount is slightly higher than the amount of the write-off approved by your Board for fiscal year 2002-03 for $265,680.69.

The Human Services Agency accounts totaling $400,928.93 are all under $10,000 and represent debts for Welfare Assistance over-payments. Over-payments can occur when clients incorrectly or fraudulently report their status or earnings. These amounts are being written off due to their age, and all attempts at collections have been exhausted. These include initial Human Services Agency billings, Revenue Services collection efforts, and the use of the State and Federal income tax intercept program.

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 $400,928.93. The accounts are not included in the amount provided to the Controller as collectible and thus will not affect the County's financial statement.