collection compliance the challenge can be met
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Collection Compliance The Challenge Can Be Met. January 30, 2014 Jacksonville, Florida Doug Isabelle, CCOC Budget Director. What is the Issue?. Clerk’s Trust Fund Has Adequate Revenues through CFY 14/15; but may not for the long-term. Fines, filing fees, and court costs are declining - PowerPoint PPT PresentationTRANSCRIPT
What is the Issue?Clerk’s Trust Fund Has Adequate Revenues
through CFY 14/15; but may not for the long-term.Fines, filing fees, and court costs are decliningExpenditures are outpacing revenuesNot enough depository counties to sustain trust
fund in long termThere are “key” factors for the declineThe Trust Fund relies heavily on “Big 6”
counties; but all counties can do their partThere are opportunities to increase
collections and the “Challenge Can Be Met”
Expenditures Outpace Revenues Collections
2009-2010 2010-2011 2011-2012 2012-2013
Expenditures $441,473,797 $433,612,871 $434,214,276 $428,357,998
Revenues $470,587,666 $426,422,932 $414,944,530 $423,366,253 Difference $29,113,869 ($7,189,939) ($19,269,746) ($4,991,745)Revenues % of Expenditures 106.6% 98.3% 95.6% 98.8%
SFY 2013: Profile of Depository Counties
19 “Depository” Clerks4 = Large Counties, 7 = Medium/Large Counties,
3 = Medium Counties, 5 = Small Counties
48 “Funded” ClerksOf the 48 Clerks that are “Funded”
9 = Offices within 90% of fully funding annual expendituresIncreasing collections 4% ($2.4 Million) will cover
annual expenditures16 = Offices within 80% of fully funding annual
expendituresIncreasing collections 15% ($9.0 Million) will cover
annual expenditures23 = Offices less than 80% of full funding.
Other Factors Why Revenues Declined?
Revenues Diverted from the Trust Fund10% fine monies to PRMTF$80 filing fee (changed June 2013)
Other factorsNo filing fee for civil indigent cases (since 2009)Reopen case filing feesLocal diversion programsLower amount of tickets and assessmentsJudicial waivers and community serviceJudgment liensLess civil casesEconomy
There is Another FactorCollections
“ A fine is punishment for a crime only if it is collected”
Estimated 60% of Trust Fund Revenues are collected “up-front” (e.g. time of filing, paying a traffic ticket on time).
Estimated 40% of Trust Fund Revenues are collected from criminal defendants and non-paying traffic offenders over time.
What is Required?All court-assessments are due at the time of
judgment and/or sentencing.If not paid Section 28.246 (6), F.S. requires
A clerk of court shall pursue the collection of any fees, service charges, fines, court costs, and liens which remain unpaid after 90 days by referring the account to a private attorney or collection agent.
The clerk must have attempted to collect the unpaid amount through a collection court, collections docket, or other collections process, if any established by the court, find this to be cost-effective and follow any applicable procurement practices.
What can be done to reverse the Revenue trend?
Wait until civil cases turn around?U.S. Labor Dept. Estimates that Florida’s population will
exceed New York as 3rd largest stateWe could wait for law enforcement to write more traffic
tickets.We could recommend increasing filing fees, court costs,
and service charges?We could recommend redistributing existing court
collections to Clerk’s first priority?We could work with the courts to limit community service?We could work with the court partners to assess all
mandatory assessments?We could seek legislative authorization for additional
enforcement tools?
Or Could Improve Clerk Collection Activities?Option 1: Invest In-house collection activities
Hire adequate; qualified staff; and provide training. Acquire automation for:
payment plans, skip tracing, IVR systems, tracking probation and collection agents cases.
Develop collection reports: How many cases are currently on payment plans? What is the age of the debt? How many probationers owe and how much?
Design facilities/space adequate to maximize collections. Develop consistent collection (methods and processes)
that are efficient to maximize collections.
OR
How to Accomplish this?Option 2: Contract for Collections:Method 1: Privatize (cradle to grave)Method 2: Probation Departments
Did you know that making court-order payments directly to the Clerk’s cashiers, Not through probation typically gets better collections results?
Did you know that probationers should be on clerk payment plans for better collection results?
Did you know that private sector operated probation typically collects better than publicly operated probation departments?
Estimated Cost for In-House Collection Program
Dedicated In-House Collection ProgramFor large counties estimated $400,000 to
$500,000 annuallyFor median-size counties $150,000 to $200,000
annuallySmall size counties $50,000 annually
Plus other collection-related staff (e.g. cashiers)
Survey of 16 counties “collection” activities for SFY 12/13 about 3%-5% of budget
Some Questions to Ask Yourself
Have you elevated the importance of revenues in your organization?
Are you managing revenues and collections like a company CEO---Corporation?
When is the last time you reviewed your collection processes?Have you made changes after you visited other Clerk offices or
CCOC staff visited you?Do you have a plan on how to increase collections?Do you use collections reports (performance & the annual s.
28.246)? Or is just another Tally report? How frequent do you review?
Do you require and use performance reports from probation and collection agents?
Do you meet with court partners routinely regarding assessment and collections?
Do you pilot new ideas?
Additional QuestionsWhat do you do with the $25 payment plan
service charge? What do you do with 10% fine for improving
collections?You have the authority per s. 938.30 F.S to
negotiate; are you doing it?Do you set monthly or quarterly revenue targets?Are your payment plans effective?Do you know how much uncollected debt you
sent to collection agencies? How much have they collected for you?
Did You Know?Florida Legislature tasked the CCOC to
conduct a collection study and report findings in 2012?
Some recommendations included;Convene local collection policy work groupsEncourage development of local pilot programsDevelop court collection plansNon-renewal vehicle registration for failure to payWage and bank account garnishmentDeny application for professional licenseDeny or suspend recreational licenses (boating, hunting,
fishing)Amnesty programs
Investing time and money into collections.Demonstrating to the Legislature that Clerks are doing
their “best”.Don’t stop looking at ways to improve, make changes;
pilot test ideas.An effective collection program should have strong
support from the clerk and leadership team.Some “key” dates:
February 2014 state REC June 2014 budget to CCOC July state REC August budget due to LBC
CCOC can provide assistance
What is the Challenge?
It Can Be DoneLake County Improves Collection Rates
Court Division 2010-2011 2011-2012 2012-2013
County Criminal
34.39% 43.28% 43.69%
Criminal Traffic 49.49% 51.44% 57.80%
Civil Traffic 86.40% 88.59% 88.04%
Collection Principles and Three Clerk Collection Compliance Programs
Presentations:Mr. Russ Duncan– Collection PrinciplesHonorable Tara Green- Clerk, Clay CountyHonorable Maryanne Morse– Clerk, Seminole
CountyMs. Kristi Wagstaff—Collection Enforcement
Mgr., Polk County