TREASURY DIRECTIVE: 16-14
DATE:  June 4, 2008
                                                 
SUBJECT: Debt Collection Improvement Act of 1996

1.         PURPOSE.  This Directive delegates to the Commissioner of the Financial Management Service certain debt collection authorities under the Debt Collection Improvement Act of 1996 (DCIA).

2.         BACKGROUND.  The Financial Management Service is responsible for implementing the debt collection provisions of the DCIA, which centralized the administrative collection of delinquent debt at the Treasury Department.  As authorized under the DCIA,
31 U.S.C. 3711(g)(3), the Financial Management Service was designated as a debt collection center on May 16, 1996.  
 
3.         DELEGATION. 

            a.         By virtue of the authority granted to the Fiscal Assistant Secretary by Treasury Order 101-05, I hereby delegate to the Commissioner of the Financial Management Service certain authorities vested in the Secretary of the Treasury under the DCIA.  Specifically, the Directive delegates the authority:

                        (1)        to take appropriate action to collect or terminate collection actions on debts referred or transferred to the Treasury Department under 31 U.S.C. 3711(g), including the authorities to refer debts to debt collection centers, private collection contractors, and the Department of Justice for routine debt collection matters;

                        (2)        to exempt, under 31 U.S.C. 3711(g)(2)(B), any class of debt or claim from the requirements to transfer delinquent debts to the Secretary of the Treasury for the purpose of collection as required by 31 U.S.C. 3711(g)(1);

                        (3)        to exempt, under 31 U.S.C. 3711(c)(3)(B), payments from administrative offset under 31 U.S.C. 3716(c);

                        (4)        to exempt any class of debt or claim from affecting a debtor’s eligibility for Federal financial assistance under 31 U.S.C. 3720B;
                       
                        (5)        to implement the offset provisions contained in 31 U.S.C. 3716, including Treasury’s authority to charge fees and to establish operating procedures;

                        (6)        to enter into reciprocal agreements with States in accordance with
31 U.S.C. 3716(h);

                        (7)        to establish and maintain an interagency consortium for centralized salary offset computer matching services, as required under 5 U.S.C. 5514; and

                        (8)        to waive, as authorized by 31 U.S.C 3716(f), the requirements of 5 U.S.C. 552a(o) and (p) for administrative offset upon written certification by the head of an agency or State seeking to collect a claim that the requirements of 31 U.S.C. 3716(a) have been met.

            b.         The Commissioner of the Financial Management Service shall be responsible for referring to the Fiscal Assistant Secretary any matters on which action should be appropriately taken by the Fiscal Assistant Secretary.  The Fiscal Assistant Secretary reserves the authority to designate debt collection centers under 31 U.S.C. 3711(g)(3)(B), to determine when the sale of debts is in the best interests of the Government under 31 U.S.C. 3711(i), and to issue reports to Congress under 31 U.S.C. 3719 and 31 U.S.C. 3716(c)(3)(B).

4.         REDELEGATION.  The Commissioner of the Financial Management Service may redelegate only the authorities described in paragraphs 3.a.(1), 3.a.(5), 3.a.(6), and 3.a.(8) of this Directive to officials within the Financial Management Service, which authorities may be exercised in the individual capacity and under the individual title of each official receiving such authority.

5.         RATIFICATION.  To the extent that any action heretofore taken consistent with the Directive may require ratification, it is hereby approved and ratified.

6.         AUTHORITIES.

            a.         Debt Collection Improvement Act of 1996, Public Law 104-134.

            b.         Treasury Order 101-05, "Reporting Relationships and Supervision of Officials, Offices and Bureaus, and Delegation of Certain Authority in the Department of the Treasury."

7.         REFERENCE.  See Treasury Directive 25-06, "The Treasury Data Integrity Board," regarding the responsibility of the Treasury Data Integrity Board for oversight and coordination of computer matching programs.

8.         CANCELLATION.  Treasury Directive 16-14, "Debt Collection Improvement Act of 1996,” dated February 11, 2003, is superseded.

9.         OFFICES OF PRIMARY INTEREST.  Office of the Fiscal Assistant Secretary and Office of the Commissioner of the Financial Management Service.

/S/

Kenneth Carfine
Fiscal Assistant Secretary