The Kentucky Department of Revenue (DOR) partnered with CGI to upgrade to the newest version of its award-winning Computer Assisted Collection System for Government (CACS®-G) to improve taxpayer service and increase collections. Kentucky has been a long-standing CACS-G client since 1986. DOR chose CGI to upgrade their revenue collection system based on CGI’s proven ability to deliver complex solutions. The system went live in September 2014.

Mission

As part of the Finance and Administration Cabinet, the mission of the Kentucky Department of Revenue is to administer tax laws, collect revenue, and provide services in a fair, courteous and efficient manner for the benefit of the Commonwealth and its citizens.

FY2013 General Fund Receipts: $9.3 billion

“As with any process, we continually look for better and more effective ways to collect tax revenue that people owe the state. Technology is so important in the process, and this new system should make it more convenient for the taxpayer and bring results.” Tom Miller, Commissioner Kentucky DOR

The challenge

Kentucky’s outdated, 1980’s mainframe collection system required collectors to move each case through the process manually. DOR is responsible for collecting both tax and non-tax debts for Kentucky, acting as the centralized collector for all debts. The longer it took to work a case, the less revenue was collected.

In summary, the key challenges of the legacy collection system included:

  • Manual case management and business processes
  • Overwhelming number of cases that were difficult to track
  • Outdated correspondence processes
  • Lack of automated processes for levies, liens and other tools
  • Insufficient time and information to provide excellent customer service.

When DOR decided to upgrade its system, they chose CGI as their delivery partner based on the company’s proven ability to deliver collections solutions and a strong local presence in Frankfort, Kentucky.

The solution

The new CACS-G system that went live September 2014 is the result of a collaborative effort between CGI, the DOR and the Commonwealth Office of Technology (COT). By automating case management and enabling debtor self service, CGI’s innovative solution supports DOR’s vision to improve citizen service and increase revenue recovery for both tax debts, as well as non-tax debts referred to DOR by other Kentucky agencies.

Using predictive modeling and scoring to prioritize case workloads allows collectors to concentrate on cases requiring interaction to achieve a collection success. Cases likely to “self-cure,” as well as those unlikely to be collected, are handled in different work streams with less employee interaction.

Key features and benefits of the new CACS-G solution include:

  • Automation of many collection processes, such as filing liens, issuing levies and sending out Final Notice Before Seizure notifications
  • A self-service Internet portal making it more convenient for taxpayers to make payments or set up payment agreements
  • Automation to free up staff time to concentrate on complex cases requiring more employee interaction to increase the likelihood of collection
  • Flexibility and a highly configurable workflow process allowing DOR to better manage case flow including automated correspondence
  • Improved ability to collect other state agency referred debt
  • Real-time capability to review collector activities to facilitate training, coaching and performance measures.

The results

Since implementing CACS-G, the new features for debtor self-service and employee workload prioritization have increased DOR’s efficiency. These efficiencies allow DOR to increase the number of cases resolved resulting in more debt being collected. Because DOR collects debt for other Kentucky agencies, those agencies have also benefited from DOR’s improvements.

The upgrade project also included an “Early Wins” component where new technology was used in conjunction with the existing collection system to achieve early success through automation of collections processes – resulting in over $40 million in new collections.   

Since the full implementation in September 2014, DOR has continued to see increases in collections. March 2015 was the highest single month for collections in DOR’s history, collecting more than $26.4 million. Through March of 2015, DOR has attributed more than $11.4 million in increased fiscal year 2015 revenues to this project - money that otherwise would not have been collected. 

“The increased efficiencies have allowed the department to improve its ability to collect delinquent debt that other state agencies have, but don’t have the expertise or system to collect. While (DOR) has been handling these collections for several years, the new system means we can better aid in collecting such debts as back child support, student loans and more.” Mack Gillim, Executive Director, Office of Processing and Enforcement

Client Satisfaction Assessment Program

In January 2014, the Kentucky DOR gave CGI a 10 out of 10 rating for support and satisfaction.

“DOR has been very pleased with the level of professionalism, dedication, knowledge and skill demonstrated by the CGI staff devoted to this project.” Mack Gillim, Executive Director, Office of Processing and Enforcement, Kentucky DOR Tammy Watts, Director, Division of Collections, Kentucky DOR

 

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