COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Tax Collector – Treasurer – Revenue Services

DATE:

December 19, 2006

BOARD MEETING DATE:

February 6, 2007

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

Lee Buffington, Treasurer-Tax Collector
Girdie Bernard, Division Manager, Revenue Services

SUBJECT:

Request for Relief of Accountability of Delinquent Accounts

RECOMMENDATION:

Adopt a resolution authorizing discharge from accountability for collection of costs, fines, fees and assessments for the County of San Mateo

• $24,037,685.32 for indigent care provided by the Medical Center

• $4,306,213.15 for collections for various other departments

Adopt a resolution authorizing discharge from accountability for collection of overpayments for Welfare Assistance for the County of San Mateo:

• $499,196.25 for Human Services Agency Cases

These accounts are past statute and uncollectible. Collection efforts have been attempted by both the Revenue Services Division and an outside collection agency.

VISION ALIGNMENT:

Commitment: Responsive, Effective and Collaborative Government

Goal 20: Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain. Revenue Services has consistently provided quality collection services for the County at a cost that is lower than companies in the private industry.

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 2005-06.

DISCUSSION:

Accounts presented for abandonment for FY 2005-06 fall into six categories of uncollectibility. These are:

• Accounts that are too small to warrant further collection efforts: $102,772.23.

• Accounts lacking sufficient information for collection: $1,672,891.46.

• Accounts on which all collection efforts and options have been exhausted: $24,024,263.58.

• Accounts for which the client has no resources to pay: $1,671,054.40.

• Accounts that, if further collection efforts were pursued, would place the client in extreme hardship: $353,107.03.

• Accounts that were erroneously established and billed at the point of service: $519,809.77.

Attachment A provides additional discussion of the categories of uncollectibility for Revenue Services and Human Services Agency

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

Attachment C provides details on each of the 192 accounts over $10,000 recommended for abandonment.

Human Services Accounts

Due to the age and condition of the accounts, there is little chance of recovery of the $499,196.25.

Pursuant to the Terms of Government Code section 25258(b), the names of the assessees or persons liable and the amounts owed by each is incorporated by reference in this application and 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.

FISCAL IMPACT:

By virtue of the age and condition of the accounts, there is little or no chance of recovery of the write-offs. The accounts are not included in the amount provided to the Controller as collectible and thus will not affect the County's financial statement.