Recommended actions included consolidating bank accounts to increase control of timely deposits, accrual of interest, and other management advantages.

The task force also recommended implementing policies to clear uncollectable accounts, creating a monitoring program to focus on high-dollar receivables, and formulating collection processes for old accounts receivables.

RECOMMENDATIONS:

New Statewide Policy on Receivables
Develop and implement a statewide policy on receivables/collections that provides a monitoring program and emphasis on high dollar and significantly aged receivables and directs the Interfund and Intergovernmental receivables and collections process.

Legislative and Programmatic Changes to Statewide Collection Efforts
Seek legislation and programmatic changes to effectively aid statewide collection efforts to utilize industry practices in a consistent manner: Allow for write-offs, use of third party collections, and authority to assess penalties and fees.

Establish Chief Financial Officer & Chief Accounting Officer
Seek legislation to establish the positions of Chief Financial Officer and Chief Accounting Officer as permanent roles that ensure effective coordination and management of the State’s financial affairs.

Track Delinquent Receivables
Consider utilizing third party or dedicated teams to focus on aged receivables over 120 days and accounts greater than $50,000 to derive maximum short-term impact.

Reassign Department of Community Health’s Prospective Payment Program
The Chief Financial Officer should immediately take custody of the Department of Community Health’s Prospective Payment Program and remove it from departmental control. The original process of netting owed funds from future payables over a 90 day period should be strictly enforced..

New Cash Management Policies
Develop and implement cash management policies that begin cash account consolidation starting with payroll accounts.

Departmental Cash Collection Forecasts
Cash collection forecasts should be completed by State departments to predict future cash flow and monitor cash collections.