Centralization & Specialization of
Services:
Multiple States in a Consortium
ERICSA 50th Annual Training Conference & Exposition ▪ May 19 – 23 ▪ Hilton Orlando Lake Buena Vista, Florida
Biography
Kesha Rodriguez received a Bachelor's degree from Bernard M.
Baruch College (CUNY). She worked as an Unemployment Insurance Claims
Adjudicator for the NYS Department of Labor, in New York City for seven
years before going to work for the US Department of Labor’s, Employment
& Training Administration in 1998 as Workforce Development Specialist.
In 2004, she began working as a Child Support Program Specialist
for the Administration for Children and Families (ACF) serving the states of
New Jersey and New York. In August 2010, she assisted her Region in
acquiring their very first Start-Up Grant for a Tribal Child Support Program
with the St. Regis Mohawk Tribe. In 2004, she received the Commissioner’s
Teamwork Award for Exemplary Bi-Regional Collaboration and since then
has continued to receive countless nominations and awards for her service
and dedication to the Children & Families served by the Child Support
Program, nationally as well as internationally.
Biography
John Polk is the Senior Vice President of XEROX’s Child Support
Solutions business group. He has served the child support program in the
public and private sectors for 38 years. In his public sector career Mr. Polk
was the regional administrator for the Texas Office of the Attorney General’s
child support program in Dallas Ft. Worth for 9 years. Mr. Polk has been with
XEROX State and Local Solutions for 21 years and currently serves as the
managing director of the company’s child support business. Mr. Polk’s focus
over his tenure has been the support processes that provide effective
operations to child support programs. These include payments and
disbursements, banking, document management and call center operations.
XEROX supplies transaction based services, systems development and
operations and business process outsourcing to the IV-D program.
Topics
• Data sharing barriers
• Cloud based opportunities
• Crowdsourcing
Data Sharing & Operational Barriers
• IRS Publication 1075
• In State data, equipment and staff residence
preferences
• Loss of touch and feel
• Fear of loss of control
• Worry about sustainability
– Back up
– Disaster Recovery
– Business Recovery
Cloud Based Opportunities
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Illustration -- iPhone and the 286 PC
Virtualization of business
Blue oceans and red oceans
The high value/low cost opportunity
iPhone and the IBM 286 PC
• The IBM 286 and the Modern PC
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286 ran at 8MHz and used a 30 Mb hard drive
Modern PC – 3+GHz and 600 Gb hard drive
375 times faster and 200 times more storage
IBM PC ~ $3500 and the PC of today ~ $600
• iPhone and the IBM 3490 Disk Drive
– iPhone 5 has up to 64 GB of storage & costs $199
– IBM 3490 disk drive had 22 GB and cost $90k
– $4,090 vs $3.10 per GB -- reduction of 1300%!
Virtualization of Business
• Trend is toward cloud-based applications
• Best examples now are backup and disaster
recovery (e.g. - Carbonite is $59/year)
• Another example: Imaging in the Cloud
– Images captured locally are processed in a hosted application where
image perfection and character recognition occurs
– Data entry staff use a web-based application to correct mis-read
characters
– Images are stored in a web-accessible image archive
– No local hardware or software are required
– Low cost/high value opportunity
Red Oceans & Blue Oceans
• Red Ocean
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Convergence
High similarity
Declining $ utility
Incremental
improvement of <5%
– Entropy
• Blue Ocean
– Divergence from the
usual & customary
– New ideas abound
– Change is quantum
– Areas of low cost & high
value
– Game changing
Current Red Ocean Condition
Blue Ocean Synergy
Blue Ocean Example
CROWDSOURCING
Definition of Crowdsourcing
• Web Definition
– The practice of obtaining needed services, ideas, or content by soliciting
contributions from a large group of people, and especially from an online
community, rather than from traditional employees or suppliers.
– The general concept is to combine the efforts of crowds of volunteers or parttime workers, where each one could contribute a small portion, which adds
into a relatively large or significant result.
• Project Definition
– Using a web-based collaboration tool, current SDU staff in 16 locations
research and perfect employer data then reach out on a national basis to
convert the method of payment from paper remittance to electronic
remittance.
Description of Pilot Project
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•
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•
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Hypothesis
Web tool
Data
Pilot Concept
Staffing
Incentivized Staff
Focus on greater good
Hypothesis
• Concept of “greater good” allows employer to
be treated as a single entity, not on a state-bystate basis.
• Probability of success is increased by one
person dealing with one employer at an
aggregated, national level.
• One person, one employer yields the highest
probability of successful conversion to
electronic payments.
Pilot Project Design
• Pilot Period:
2/25 – 4/19
• Target 6 SDU states: FL, OH, TX, MD, NJ, LA
• 2106 employer candidates identified by XIG and loaded into
portal
• 254 candidates researched (name, phone, # of payments to Xerox)
• 140 targets actively being worked by an Outreach staff
• Pilot goals
• 6 mid-sized or large employers per Outreach FTE
• Total of 18 employers each to be converted to EFT
Project Mechanics
• Combine existing employer data from multiple States in a web
accessible tool/database
• Sort employers that still remit with checks by most checks to
least per year (low hanging fruit)
• 16 employees, working virtually in 7 different locations
convert employers to electronic remittance
• Research first, then outreach to the employer
• Greater good concept – assist employer regardless of State
where employees are located
• Incentivize staff for achieving project goals for conversion
Project Mechanics – Web Tool
• D
Project Mechanics -- Research
• Worker selects first
employer on the list
(previous slide)
• Using the image snippet,
records employer name and
address, and other contact
information
• Uses Internet and other
tools to collect best contact
data
• Turns the employer over to
outreach worker
• Staff are paid bonus for the
number of research items
completed
Project Mechanics -- Outreach
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Worker calls employer
Determines correct
contact
Uses script to describe
conversion process and
benefits
Collects data on all states
Provides remittance
information by State to
employer
Sets conversion date if
answer is positive
Staff are paid bonus for
the outreach items
processed
Project Mechanics -- Outreach
• Worker is able to record notes about the exchange with the employer contact
• Worker can pull all check images to better understand the employer’s payroll
methods
Project Mechanics -- Outreach
• Part of the worker’s task is to identify all the States the employer sends
payments to and to assist the employer in converting
• Greater good concept – convert the whole employer regardless of the
number of payments that will go to States other than worker’s
Pilot Results
Employers Converted
Mthly Pmts
Employer Not Converted But Case Recon
Completed
Mthly Pmts
Coleman 3/29/13 FL
23
Badcock FL, NY and NY
31
Cemex CA (need CA to verify
72
Pikes Enterprise
41
Cemex FL
177
CSC Computer Science
49
Day & Zimmerman MD, need MD to verify
11
Memorial Health Care FL
116
Day & Zimmerman NJ, Need NJ to verify
17
Heartland Payroll OH
496
Day & Zimmerman FL
46
Heartland Payroll FL
536
Direct HR Services DHRS
4
Little Ceasar
30
Weiser Security FL
31
Southeast Freight Line
72
Sunshine work Force
6
Weiser Security AZ
6
Weiser Security LA
35
Weiser Security NJ
1
Weiser Security NY
7
Baptist Heath Care
176
Browear County Sheriff Office
217
Total
381
Total
1819
Results as of April 20
Results of Two Month Pilot
Number
Employers Converted to Electronic
Remittance
Monthly Payments Converted
2800
Total Annual Payments Converted
33,600
Employers in the Process of Converting
Actual Staff Involved
381
1819
5
Conclusion
• Combinations of existing processes, people
and technology produce new synergies
• People do not have to be together to work
together
• Lessons learned
• Does not work as well on a staff voluntary basis
• Need a team leader and daily “scrum” style meetings to
keep remote team members focused
• Can further combine processes to get more efficiency
Biography
Andrew (Andy) Szymak is the Financial Institution Data Match
(FIDM) and Automated Enforcement in Interstate Cases (AEI) Coordinator
for the Oklahoma Department of Human Services Office of Child Support
Services. He is also the Oklahoma representative to the Interstate Data
Exchange Consortium (IDEC) Governing Board. He has been with child
support since June of 1998 and has been the FIDM Coordinator since 2001.
He earned a BA with a major in Political Science from the University of
California at Irvine and a JD from Oklahoma City University School of Law
NETWORKS,
ALLIANCES
AND
CONSORTIUMS
(WHAT THEY CAN DO FOR YOU)
Child Support Lien Network
CSLN
-Established in 1999
-Houses a database of 3.7 million obligors
-Currently has 32 states as members
Child Support Lien Network
CSLN (Continued
-Objective: To perform data matching to
increase support collections through the
interception of insurance claim settlements
before they are sent to a claimant owing pastdue child support.
Child Support Lien Network
CSLN (Continued
-Works in conjunction with Insurance Services
Offices (ISO)
-Matches data of individuals with pending
personal injury and workers compensation
insurance claims with delinquent obligor data
Child Support Lien Network
CSLN (Continued
-Delinquent obligor information is matched on a
daily basis with claims registered by insurance
companies with ISO
-Matches returned to states for follow up
actions (liens or withholding orders)
Child Support Lien Network
CSLN (Continued
-2012 Insurance Intercept collections figures:
Oklahoma collections:
PI: $1,339,225 WC: $5,697,805
Texas collections:
$34,511,816
Financial Institution Data Match
(FIDM) Instate Matching
Opportunities
-Problem: A large number of FIDM matches are
missed because states are not sharing Instate
bank match data
-Solution: Make access to Instate bank account
data a simple and effective process
Access to Out-of-State
FIDM Matches
-Two sources of matches
-Multi-State FIDM (e.g., Bank of America,
Chase, Regions, Wells Fargo)
-In-state matches
In-house
Alliance or consortium
FIDM Alliance
-Made up of 18 states entering into an Alliance
to outsource in-state FIDM programs.
-Formed to cooperatively develop, issue and
oversee these FIDM operations.
-Cross border FIDM matching done on a state to
state agreement basis.
FIDM Alliance (Continued)
-Each participating state is responsible for
entering into individual contracts with the
selected contractor that oversees the
program.
-Texas is the lead state of the Alliance for the
purpose of procurement
Interstate Data Exchange
Consortium - IDEC
-A partnership of 15 states for the collection
and enforcement of child support
-Access to accounts in all member
states
Interstate Data Exchange
Consortium – IDEC (Continued)
-Operated as a state-administered,
state-owned system
-Managed by the State of South Carolina
FIDM Limited Partnerships
-IDEC offers a Limited Partnership that allows
non-member states to participate in the
quarterly interstate matching of Full
Member states
-Limited Partners become reciprocal partners
with IDEC member states
Two types of
Limited Partnerships with IDEC
-FIDM Alliance member states
-Independent FIDM states
Oklahoma and Texas FIDM and Limited
Partnership 2012 Collections
-Oklahoma is an IDEC Member
-Overall Oklahoma 2012 FIDM Collections:
$3,205,523
-Overall Oklahoma collections from Limited
Partnership participation: $543,681.36
Oklahoma and Texas FIDM and Limited
Partnership 2012 Collections
-Texas is a member of the FIDM Alliance
-Overall Texas 2012 FIDM Collections:
$36,099,858
-Overall Texas collections from Limited
Partnership participation: $593,912
Contact
Andrew Szymak
Oklahoma Child Support Services
FIDM Coordinator
E-Mail: Andrew.Szymak@okdhs.org
Phone: (405) 522-6230