Centralization & Specialization of Services: Multiple States in a Consortium

1. Centralization & Specialization of Services: Multiple States in a Consortium ERICSA 50th Annual Training Conference & Exposition ▪ May 19 – 23 ▪ Hilton Orlando Lake Buena Vista, Florida ERICSA 50 CELEBRATES YEARS OF SERVING FAMILIES: THE MAGIC IS STILL ALIVE ERICSA ERICSA ERICSA ERICSA ERICSA

2. 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.

3. 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.

4. Topics • Data sharing barriers • Cloud based opportunities • Crowdsourcing

5. 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

6. Cloud Based Opportunities • Illustration -- iPhone and the 286 PC • Virtualization of business • Blue oceans and red oceans • The high value/low cost opportunity

7. iPhone and the IBM 286 PC • The IBM 286 and the Modern PC • 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%!

8. 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

9. Red Oceans & Blue Oceans • Red Ocean • 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

10. Current Red Ocean Condition

11. Blue Ocean Synergy

12. Blue Ocean Example Crowdsourcing

13. 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 part-time 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.

14. Description of Pilot Project • Hypothesis • Web tool • Data • Pilot Concept • Staffing • Incentivized Staff • Focus on greater good

15. Hypothesis • Concept of “greater good” allows employer to be treated as a single entity, not on a state-by-state 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.

16. 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

17. 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

18. Project Mechanics – Web Tool • D

19. 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

20. Project Mechanics -- Outreach • 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

21. 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

22. 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

23. Pilot Results

24. Results as of April 20

25. 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

26. 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

27. NETWORKS, ALLIANCES AND CONSORTIUMS (WHAT THEY CAN DO FOR YOU)

28. Child Support Lien Network CSLN -Established in 1999 -Houses a database of 3.7 million obligors -Currently has 32 states as members

29. 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 past-due child support.

30. 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

31. 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)

32. 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

33. 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

34. 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

35. 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.

36. 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

37. 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

38. Interstate Data Exchange Consortium – IDEC (Continued) -Operated as a state-administered, state-owned system -Managed by the State of South Carolina

39. 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

40. Two types of Limited Partnerships with IDEC -FIDM Alliance member states -Independent FIDM states

42. 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

43. 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

44. Contact Andrew Szymak Oklahoma Child Support Services FIDM Coordinator E-Mail: Andrew.Szymak@okdhs.org Phone: (405) 522-6230