operate fourteen state decision support systems that assist states with data collection, fraud and abuse detection and case
management. We also assist states in bringing their health programs into compliance with the Health Insurance Portability and
Accountability Act (HIPAA).
In 2001, we were awarded a contract by the Department of Community Health of the State of Georgia ("DCH") to develop,
implement and operate a system to administer health benefits to Georgia Medicaid recipients as well as state government
employees. This system development project is large and complex and involves development of the first system in the
industry that will process both Medicaid and state employee claims. The Medicaid phase of this project was implemented on
April 1, 2003. As with any large, complex system development and implementation project certain delays and operational
issues were encountered in this phase. The initial phase operational issues have been substantially addressed. We are
working in collaboration with DCH and the Georgia healthcare providers to address ongoing program issues, including the
implementation of new policy changes by DCH as well as changes required by HIPAA. We believe, based on our analysis to
date, that the savings to the State of Georgia associated with this initial phase of the contract will exceed the savings initially
anticipated. We are also in continuing discussions with DCH regarding claims that we and DCH have asserted against each
other related to delays in the initial phase development. Both we and DCH have agreed to resolve the issues in a
collaborative manner. Any final amount that we would agree to pay DCH has not been negotiated; however, the cost
associated with delays in system implementation, including incremental transition costs incurred by DCH, have been
properly and fully reflected in our financial results. We expect to resolve this matter over the next several months in an
amicable fashion; however, there can be no assurance as to the ultimate outcome of this matter.
Children and Family Services
We are a major provider of child support and payment processing with high volume remittance processing and service center
operations that handle 54% of the nation's payment transactions. We also provide locate and collection services to find
delinquent parents and collect past due child support and other payments. Within the Children and Family Services area we
provide electronic benefits transfer, which is the issuance of food stamps and cash benefits through magnetic stripe cards with
redemption through point of sale devices (POS) and automated teller machines (ATM).
Transportation Systems and Services
We focus on three areas within our Transportation Systems and Services: Electronic Toll Collection, Motor Vehicle Services
and Commercial Vehicle Operations. Within Electronic Toll Collection we offer toll agencies a complete array of services
including the operation of the back office customer service center as well as lane installation and integration. We currently
operate the E Z Pass programs in New Jersey and New York, the largest electronic toll collection program in the world.
Within Motor Vehicle Services, we assist states in the processing of fuel tax and registration revenues. We process more
than 25% of state issued operating credentials and support the operations of more than 31% of the motor carriers operating in
the United States. Within Commercial Vehicle Operations we offer a nationwide network that electronically checks safety
credentials and weighs trucks at highway speed, granting participating truckers authorization to bypass open weigh stations
and ports of entry without stopping.
We serve large cities and counties in the United States by focusing on revenue generating transactions that involve
interfacing with citizens. These services are focused in two areas: parking management and violations processing; and photo
enforcement. For our violations processing clients, we provide complete management, technical and operational support
throughout the entire timeline of a violation, from issuance to final disposition. In photo enforcement, we use cameras to
photograph traffic violations and identify the registered owner of the vehicle so that the municipality can determine whether
the citation can be mailed.
Our Government Records Management group has been a leading provider of computerized document indexing and recording
solutions for Recorders of Deeds, by providing computerized record management systems. The client base of this business
group includes nearly 500 system customers and hundreds of customers that outsource their indexing and document imaging
needs to us.