MANAGING UNDISTRIBUTED COLLECTIONS - Virginia’s Approach

Slide 1

IVD Directors Meeting
MAY 2003

MANAGING UNDISTRIBUTED COLLECTIONS
Virginia’s Approach
WHAT GETS MEASURED - GETS DONE!

By Nick Young
Virginia IV-D Director

Slide 2

MANAGING UNDISTRIBUTED COLLECTIONS

MANAGEMENT MUST FOCUS ON THE ISSUE
PROVIDE THE TOOLS & REPORTS STAFF NEED TO MANAGE UDC
MEASURE PERFORMANCE AT ALL LEVELS
LOOK FOR CREATIVE AUTOMATED SOLUTIONS

Slide 3

MANAGEMENT MUST FOCUS ON THE ISSUE

Understand/analyze your UDC balance
Monitor on a daily basis
Strongly communicate the message: Responsibility of all staff, not just fiscal
Set an acceptable threshold or target

VA’s target is 3% of monthly collections

Establish clear accountability

Slide 4

Understanding Virginia's UDC Balance
STATE: VIRGINIA - UDC Categories - 3/31/03
		# Cases	# Receipts	$ Amount
Line 9b: Net Undistributed Collections		18664	23937	$ 7,166,668.24
Line 9c: Undistributed Collections Pending Distribution		17996	22467	$ 7,035,630.21
i	Collections received within the past two business days	5576	5981	$ 839,526.99
ii	Collections being held up to six months -offset from Federal or State refunds	5784	7692	$ 5,498,279.94
iii	Collections received for future support	6514	8498	$ 634,361.75
iv	Collections pending the resolution of legal issues.	122	296	$ 63,461.53
Line 9d: Undistributed Collections Unresolved		668	1470	$ 131,038.03
i	Unidentified Collections	0	223	$ 25,782.30
ii	Collections pending the location of the custodial or noncustodial parent	659	1234	$ 102,433.23
iii	Collections initially disbursed by check - uncashed/ stale-dated/ and non-negotiable	0	0	$ -0
iv	Collections lacking other information	9	13	$ 2,822.50

Slide 5

PROVIDE THE TOOLS & REPORTS STAFF NEED TO MANAGE UDC

Virginia produces a daily report which documents each transaction that remains undistributed
The report is worked daily by both central office and field staff

Slide 6

PROGRAM : WEAAD221 REGION : CENTRAL DCSE CR DISTRICT: HENRICO D1				COMMONWEALTH OF VIRGINIA DEPARTMENT OF SOCIAL SERVICES DIVISION OF CHILD SUPPORT ENFORCEMENT UNDISTRIBUTED RECEIPTS				DATE: 05/10/03 TIME: 00:10:14
PARTICIPANT LEVEL OUTSANDING
ACCOUNT NUMBER	PARTICIPANT NAME	AP/CLI	MICRO CNTL-NBR	AMOUNT	PMT TYPE	HOLD RLS	HOLD RSN	POSTING DATE	RECEIVED DATE	RELEASE DATE	REVIEW STATUS
2831477	******	CLI		$3,230.74	FTAX	HOLD	JOINT RETURN	4-11-03	4-11-03	10-11-03
17571	******	CLI		$168.12	FTAX	HOLD	JOINT RETURN	4-11-03	4-11-03	10-11-03
17571	******	CLI		$1,543.25	FTAX	HOLD	JOINT RETURN	4-11-03	4-11-03	10-11-03
1633633	******	CLI		$294.34	FTAX	HOLD	JOINT RETURN	4-11-03	4-11-03	10-11-03
1633633	******	CLI		$783.66	FTAX	HOLD	JOINT RETURN	4-11-03	4-11-03	10-11-03
2074618	******	AP	31100350	$46.31	WAGE			4-11-03	4-11-03
2487678	******	AP		$149.76	FTAX	HOLD	JOINT RETURN	4-11-03	4-11-03	5-11-03
9961	******	AP		$509.00	FTAX		JOINT RETURN	4-11-03	4-11-03	10-11-03
2585705	******	AP		$63.63	FTAX	HOLD	JOINT RETURN	4-11-03	4-11-03	10-11-03
2329144	******	AP		$135.94	FTAX	HOLD	JOINT RETURN	4-11-03	4-11-03	10-11-03
2820789	******	AP		$91.90	FTAX	HOLD	SINGLE RETURN	4-11-03	4-11-03	5-11-03
2812274	******	AP		$155.93	FTAX	HOLD		4-11-03	4-11-03	5-11-03
44689	******	AP		$59.29	FTAX	HOLD	ACCT REVIEW	4-11-03	4-11-03	5-11-03	NEED RESEARCH
142388	******	AP		$97.25	FTAX	HOLD	ACCT REVIEW	4-11-03	4-11-03	5-11-03	NEED RESEARCH
61355	******	AP		$260.55	FTAX	HOLD	SINGLE RETURN	4-11-03	4-11-03	5-11-03
136445	******	AP		$139.68	FTAX	HOLD	SINGLE RETURN	4-11-03	4-11-03	5-11-03
34462	******	CLI	12579	$45.00	WAGE		INVALID ADD	4-11-03	4-11-03	4-17-03	NEED RESEARCH
527528	******	CLI		$2,560.00	FTAX	HOLD	JOINT RETURN	4-11-03	4-11-03	10-11-03
72923	******	CLI		$67.60	FTAX	HOLD	JOINT RETURN	4-11-03	4-11-03	10-11-03
2960128	******	AP		$120.00	URES		CASE REVIEW	4-12-03	4-11-03	5-1-03	NEED RESEARCH
104523	******	CLI	2514	$100.00	WAGE			4-14-03	4-14-03	4-14-03
64682	******	CLI	19245	$15.00	WAGE			4-14-03	4-14-03	4-14-03
31955	******	CLI		$369.00	FTAX	HOLD	SINGLE RETURN	4-14-03	4-11-03	5-14-03
45976	******	CLI		$433.46	FTAX	HOLD	SINGLE RETURN	4-14-03	3-14-03	5-14-03
32884	******	CLI	14855	$45.54	CHEK			4-15-03	4-15-03	5-17-03	VOL OVERPMT
32884	******	CLI	14854	$24.46	CHEK			4-15-03	4-15-03	5-17-03	VOL OVERPMT
2913173	******	CLI	53000210	$57.06	VEC			4-15-03	4-15-03	4-15-03
2812917	******	AP	2061	$79.62	WAGE			4-16-03	4-15-03
2531674	******	AP	3378	$83.00	WAGE			4-16-03	4-15-03	5-26-03	VOL OVERPMT
62845	******	AP		$11.65	STTX			4-16-03	4-16-03
2084326	******	AP		$39.55	STTX			4-16-03	4-16-03
2215423	******	AP		$119.10	STTX			4-16-03	4-16-03
2686796	******	AP		$23.89	STTX			4-16-03	4-16-03

Slide 7

MEASURE PERFORMANCE AT ALL LEVELS

What gets measured gets done.

Slide 8

DIVISION OF CHILD SUPPORT ENFORCEMENT
Virginia Department of Social Services
Collection/Undistributed Report
Collection Month: March 2003					4-7-03	4-7-03	4-7-03	4-7-03
	DISTRICT	TOTAL IV-D COLLECTIONS	TOTAL NON-IVD COLLECTIONS	TOTAL COLLECTIONS	Undistributed By MPI	Undistributed By CASE	TOTAL UNDISTRIBUTED	Federal Tax Adjustment **	Adjusted Total Undistributed	Percentage of Undistributed to Total Collections
F3	ALEXANDRIA	610,958		610,958	72,296		72,296	58,958	13,338	2.18%
F4	ARLINGTON	624,812		624,812	66,210	385	66,595	56,114	10,481	1.68%
DO	RICHMOND	2,281,840	1,396	2,283,236	263,970	580	264,550	246,509	18,041	0.79%
FO	FAIRFAX	2,870,864		2,870,864	243,415	2,668	246,083	209,652	36,431	1.27%
PO	PETERSBURG	2,017,207		2,017,207	313,883	2,665	316,548	280,503	36,045	1.79%
D1	HENRICO	3,474,355	150	3,474,505	415,429	296	415,725	370,869	44,856	1.29%
C1	FREDERICKSBURG	2,581,760	200	2,581,960	284,533	310	284,843	269,911	14,932	0.58%
F1	MANASSAS	2,812,386		2,812,386	261,879	269	262,148	229,908	32,240	1.15%
	CENTRAL-RICHMOND	17,274,182	1,746	17,275,928	1,921,615	7,173	1,928,788	1,722,424	206,364	1.19%
EO	CHESAPEAKE	1,942,242		1,942,242	212,407	1,957	214,364	191,584	22,780	1.17%
N0	NEWPORT NEWS	3,072,362		3,072,362	435,060	1,184	436,244	360,427	75,817	2.47%
HO	HAMPTON	2,634,770		2,634,770	319,803	1,869	321,672	270,041	51,631	1.96%
B1	PORTSMOUTH	1,421,276		1,421,276	130,342	7,614	137,956	113,047	24,909	1.75%
KO	NORFOLK	2,875,579		2,875,579	236,339	21	236,360	192,541	43,819	1.52%
BO	VA BEACH	3,700,325		3,700,325	482,217	1,192	483,409	437,535	45,874	1.24%
P1	SUFFOLK	1,526,185		1,526,185	201,134	783	201,917	190,878	11,039	0.72%
	EASTERN - VA BEACH	17,172,739	0	17,172,739	2,017,302	14,620	2,031,922	1,756,053	275,869	1.61%
AO	ABINGDON	1,918,210		1,918,210	143,436	800	144,236	136,563	7,673	0.40%
L1	DANVILLE	2,928,154		2,928,154	442,335	694	443,029	425,033	17,996	0.61%
RO	ROANOKE	2,783,112		2,783,112	407,205	3,439	410,644	384,438	26,206	0.94%
LO	LYNCHBURG	2,033,795	100	2,033,895	259,477	2,841	262,318	242,170	20,148	0.99%
F2	WINCHESTER	1,682,805		1,682,805	222,016	886	222,902	199,712	23,190	1.38%
C2	VERONA	1,771,326		1,771,326	244,343	1,752	246,095	226,511	19,584	1.11%
CO	CHARLOTTESVILLE	1,543,202		1,543,202	204,669	2,048	206,717	183,149	23,568	1.53%
	WESTERN - ROANOKE	14,660,604	100	14,660,704	1,923,481	12,460	1,935,941	1,797,576	138,365	0.94%
HQ	CENTRAL OFFICE	975	1,914,550	1,915,525	38,843		38,843	6,633	32,210	1.68%
	STATEWIDE TOTAL	49,108,500	1,916,396	51,024,896	5,901,241	34,253	5,935,494	5,282,686	652,808	1.28%
** Fed Tax Adj for receipt date 10/05/02 and forward. Excludes FTAX for receipt date prior to 10/05/02.

Slide 9

Slide 10

LOOK FOR CREATIVE AUTOMATED SOLUTIONS

Use Federal Case Registry & other databases to locate addresses
Update addresses from the National Directory of New Hires if no current address exists (custodial & non-custodial parents)
Automated case closure prevents UDC from accumulating: collections are automatically refunded to payor
Promote EFT/EDI to reduce errors caused by keying mistakes and speed the process
Promote Direct Deposit

Slide 11

Promote Direct Deposit

Direct Deposit reduces number of returned checks
Increase direct deposits by using opportunities to promote benefits
Information about direct deposit on checks & IVR
Information & direct deposit applications on the Internet
Letters & direct deposit applications mailed periodically
48% of Virginia’s total dollar disbursements are now transmitted electronically

Slide 12

Effectively Managing Undistributed Collections Generates Positive Results!

Slide 13