1. LEARN COLLECT EXCEL Centralized Collections Bruce Robert, Chief of Collections San Bernardino County

2. LEARN COLLECT EXCEL Centralized Collections vs. Stand Alone Units Discussion Topics Considerations for Centralization Comparison of Centralized vs. Stand Alone Establishing Centralized Collections Model for Centralized Collections Questions and Answers Note: Topics are presented from a county perspective, although concepts can relate to city, state or federal level.

3. Considerations for Centralization Participating Agencies Political Issues Funding Staffing Technology Level of Expertise

4. LEARN COLLECT EXCEL Participating Agencies Typical Agencies Include: Courts – Criminal Cases – Traffic Infractions – Juvenile Cases County Medical Center Unsecured Property Taxes Variety of smaller departments

5. LEARN COLLECT EXCEL Political Issues CAO Support If you centralize, where will you go? – Treasurer-Tax Collector – Auditor Controller – Stand-alone Department Do separate collection units exist? Resistance to centralization

6. LEARN COLLECT EXCEL Funding Current Funding Continuation of current funding Sources of Funding – Local Cost – General Administrative Budget – Commission – Collection Fee – Fee Based – Cost Offset (PC 1463.007) – Grants

7. LEARN COLLECT EXCEL Staffing Current available staffing Will new agencies participate? Impact on current staffing Ability to add additional staff

8. LEARN COLLECT EXCEL Technology What technology is available? What are the future requirements? Will you have sufficient IT budget? Will you have sufficient support staff?

9. LEARN COLLECT EXCEL Level of Expertise Management’s level of expertise Subject matter experts Required training Current policies and procedures

10. Comparison of Centralized Collections vs. Stand Alone Units

11. LEARN COLLECT EXCEL Comparison Centralized Collections Centralized Management Standards – more consistency Shared resources – more cost effective Harder to manage knowledge transfer – more topics among more people Centralized technology – easier to manage – more cost effective Stand Alone Units Segregated Management Lack of standards – less consistency Segregated resources – less cost effective Easier to manage knowledge – fewer topics among fewer people Segregated technology – more complicated – less cost effective

12. Establishing Centralized Collections

13. LEARN COLLECT EXCEL Establishing Centralized Collections Gain support for concept Determine where to place organization Establish scope – mandatory/elective participation by departments Develop client list Determine resources Establish funding sources

14. LEARN COLLECT EXCEL Establishing Centralized Collections Determine rates for commission/fees Determine start up costs Establish budget Determine staffing level Sufficient subject matter experts Decision: Consolidated work force vs. separate business units

15. Model for Centralized Collections

16. LEARN COLLECT EXCEL Model for Centralized Collections San Bernardino County Court Collections Medical Center Unsecured Property Taxes Various Smaller Agencies

17. LEARN COLLECT EXCEL Model for Centralized Collections Original Organization Three Stand Alone Units: Collections Division (Medical) Probation Accounting (Court) Treasurer-Tax Collector (Unsecured)

18. LEARN COLLECT EXCEL Model for Centralized Collections Centralization: Grand Jury Report recommendation CAO supported concept Creation of Central Collections Departments merged under Treasurer-Tax Collector

19. LEARN COLLECT EXCEL Model for Centralized Collections History: Collections Division and Probation Accounting Merged Maintained Separate Business Units Added Unsecured Property Tax Division Added Traffic Infraction Unit

20. LEARN COLLECT EXCEL Model for Centralized Collections Staff is divided by business units Medical Center Adult Misdemeanors/Felonies Juvenile Cases Traffic Infractions Unsecured Property Taxes Various Smaller Clients Legal

21. LEARN COLLECT EXCEL Org Chart for San Bernardino County Collections Treasurer/Tax Collector Asst Treasurer/Tax Collector Chief of Collections Chief Supervising Collections Officer Collection Spvr (2) Medical (19) Collection Spvr (1) Adult Court (9)Juvenile (4) Collection Spvr (1) Traffic (10) Collection Spvr (1) Unsecured (6) Collection Spvr (1) Legal (7)

22. LEARN COLLECT EXCEL Model for Centralized Collections Funding Operate with No Local Cost Blend of Funding Sources Courts: Cost Offset (PC 1463.007) Medical: Cost Plus Commission Unsecured: Collection Fee per Account Smaller Clients: Commission More Difficult Collections: Fee Based

23. LEARN COLLECT EXCEL Model for Centralized Collections Each unit has their own goals: Monthly Collection Quota Daily # of accounts worked Daily # of phone calls Monthly # of legal referrals Monthly # of payment plans set This varies from unit to unit.

24. LEARN COLLECT EXCEL Model for Centralized Collections Statistics Tracked by Business Units Monthly Collections Cost of Collections Recovery Rates Total Outstanding Accounts Receivable We have annual targets for each unit.

25. LEARN COLLECT EXCEL Model for Centralized Collections Separate Business Units Greater level of expertise - Less overall knowledge Less training required Fewer staff under privacy regulations More difficult to manage customer service (fewer staff members to handle calls) Easier to track costs Easier to shift effort to a particular client Consolidated Work Force Greater level of overall knowledge – less expertise More training required All staff subject to privacy regulations Easier to manage customer service (all staff can handle all account types) More difficult to track costs Hard to shift a concentrated effort on a particular client

26. LEARN COLLECT EXCEL Model for Centralized Collections San Bernardino County Separate business units is preferred – Easier to track costs – Easier to develop knowledgeable staff – Can ramp up efforts for a particular client easily – Able to set standards for each unit based on level of effort to collect

27. LEARN COLLECT EXCEL Model for Centralized Collections Practical Day-To-Day Issues (Each is Business Unit Specific) Work Lists: Each collector has a specific workload Letters: Have over 500 letters Action Codes: Collectors use codes for account follow up Legal Referrals: Dedicated legal collectors for each business unit

28. LEARN COLLECT EXCEL Model for Centralized Collections Practical Day-To-Day Issues (cont’d) Receivables Management: Procedures to deal with aging receivables Statistics: Tracked by business unit Shared Resources: Most are shared with a few business specific resources

29. Questions?

30. Thank You! Contact Information: Bruce Robert Chief of Collections San Bernardino County (909) 387-5616 brobert@ttcpa.sbcounty.gov