COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Tax Collector- Treasurer-Revenue Services

DATE:

November 30, 2007

BOARD MEETING DATE:

December 18, 2007

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

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

SUBJECT:

Request for Relief of Accountability of Delinquent Accounts

RECOMMENDATION:

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

• $13,100,523.65 for indigent care provided by the Medical Center

• $1,294,980.67 for collections for various other departments

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

• $340,816.46 for Human Services Agency Cases

These accounts are past statue and uncollectible. Collections efforts have been attempted by both the Revenue Services Division and an outside collections agency.

VISION ALIGNMENT:

Commitment: Responsive, Effective and Collaborative Government

Goal(s) 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 2006-07.

DISCUSSION:

Accounts presented for abandonment for FY 2006-07 fall into six 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 2006-07 total $50,276.42. 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 2006-07 total $287,528.02. The uncollectible funds in accounts over $10,000 total $61,468.98.

• 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 2006-07 total $8,209,391.51. The uncollectible funds in accounts over $10,000 total $3,077,135.61.

• 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 2006-07 total $1,629,998.72. The uncollectible funds in accounts over $10,000 total $883,681.23.

• 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 2006-07 total $72,594.59. There are no uncollectible funds in accounts over $10,000.

• Accounts that were erroneously established and billed at the point of service. Examples include: clients who received services while incarcerated; and clients who received care or services while they were minors. The uncollectible funds in these accounts under $10,000 through fiscal year 2006-07 totals $123,429.24. There are no uncollectible funds in accounts over $10,000.

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

Attachment B provides a detailed listing for the 194 accounts over $10,000 recommended for abandonment.

Human Services Accounts

Due to the age and circumstances of the accounts, there is little chance of recovery of the $340,816.46. Of this amount $46,957.41 is for Food Stamp over issuances, of which the County share is zero. The CalWORKS/AFDC overpayment portion is $254,715.74, of which the County share is 2.5%, or about $6,367.89. Of the remaining $39,143.31, $25,851.71 is for various program overpayments of which the County shares are higher, and $13,291.60 is for the County General Assistance program overpayments for which the County share is 100%.

Of the $340,816.46 being recommended for write-off, $122,101.26 is for uncollectible funds in accounts over $10,000. $218,715.20 is for uncollectible funds in accounts under $10,000.

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 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.