Tax, revenue and obligation recovery for state and local government

Achieving dramatic revenue increases

Government agencies are under constant pressure to find ways to maximize revenue and efficiency and improve constituent services. They realize that achieving these goals requires taking a strategic view of their enterprise. Success only comes with the alignment of all elements of an organization—people, processes and technology—with an overall strategy.

The mission of most agencies is to provide services, not collect debt. Yet, many do generate revenue and have obligation recovery responsibilities – for court and traffic fines, permit fees, child support payments, unemployment insurance, benefit overpayments, penalties, tuition and more. Without a focus on recovering obligations due the government, most agencies are recovering significantly less than they could. As a result, states and municipalities are losing many millions of dollars each year.

Our focused offerings include:

CGI’s Obligation Recovery suite supports all aspects of government receivables recovery. It combines beneficial managed services, business processes, consulting and a government-specific framework with leading-edge technology powered by CGI Advantage Collections case management software and Strata® decision engine. Automatically assigning cases to the most cost-effective treatment stream allows our clients to collect more money, quicker and do so at the lowest cost.

Applications are available individually or in combination, and can be supported on the client's infrastructure with onsite and/or remote monitoring, or fully maintained on CGI's infrastructure. Implementation assistance and ongoing maintenance also is available, as are training, collectors and support staff, if needed. 

obligation recovery

A number of CGI clients have been able to eliminate upfront capital investments through our benefits-funding model. These fixed-price, performance-based projects are funded from a percentage of increased revenues. CGI is not paid until the client has certified an actual increase in revenues from the project. Then, once the fixed price is paid, 100%of the additional revenues, typically tens of millions per year remain with the government.

Our benefits-funded clients are able to delay and spread out the costs over a period of years, avoiding negative impacts on general funds and department budgets. Instead of following a traditional approach to acquiring, installing and maintaining new IT capabilities, these agencies have used CGI's benefits-funding model to transform their obligation recovery operations and certify to date more than $5 billion in additional revenues. 

CGI has worked with tax, revenue and customs clients in federal, state, provincial and local governments across the United States, Europe, Canada and Australia. Our team of subject matter experts offers professional advisory and consulting services providing strategic vision and planning, operational assessments, business case development, business process renewal and organizational change management

Governments continually seek innovative ways to increase voluntary compliance and overall revenues in a fair and efficient manner. Effective auditing and fraud prevention programs can help agencies achieve this goal. CGI offers clients rules and filter-based systems to combat fraud as well as predictive modeling to increase the likelihood of early fraud identification.

Commercial retailers can use a variety of ways to skim their cash receipts, such as not entering transactions into the cash register, not recording transactions in their general ledger system, or filing false tax reports with the authorities. CGI offers audit compliance software, Sales Reporting Management, to combat fraud, digitalizing the government auditing process and reducing audit time. 

Partnering with CGI, Revenu Québec successfully implemented a low-impact approach for increasing voluntary compliance, decreasing the time required to conduct an audit, and helping prevent both traditional skimming and zappers in their Province. By 2018-2019, the Province estimates they will have collected more than $2.1B in additional sales tax as a result of this solution.

CGI has implemented successful auditing projects using data warehousing, predictive modeling and case management

Proven results

Since 2011, CGI has helped California modernize its tax systems through the Enterprise-Data-to-Revenue (EDR) project, generating more than $2.8 billion in additional revenue to date. A common view of information for government and taxpayers also increases transparency and citizen service. Total revenue increases from the EDR project are projected to be $2.9+ billion during the State's 5 year modernization project, exceeding its goals. In recognition of its role in EDR project successes, CGI received a 2014 Best Fit Integrator award for Performance and Modernization from the Center for Digital Government, as nominated by its client.

For more information, contact CGI's tax, revenue and government obligation recovery practice.

View our Resources page to view case studies and download issue papers and brochures.