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Part I: Status of Receivables | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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General Section A - Receivables and Collections
-
shows the current beginning fiscal year balance of all receivables; and
the
cumulative activity during the fiscal year as of the end of the
quarterly reporting period for new receivables, accruals, collections,
adjustments, amounts written off, and the ending balance at the end of the
reporting period. Information is reported at the entity level. It includes
delinquent and non-delinquent receivables, as well as current (due within
12 months from the quarter end date) and non-current (due beyond 12 months
from the quarter end date) receivables. Reminder: Dollar amounts reported are at gross
book value. By Line (1)
Beginning FY Balance: The number
and dollar amount of all receivables outstanding as of the beginning of
the fiscal year. These figures are system generated and
must agree with the ending balance reported for the previous fiscal year.
Typically, these figures will remain
unchanged throughout the fiscal year. (2) New
Receivables: The number and dollar amount (principal
only) of all new receivables generated during the current fiscal year. (3) Accruals:
The
dollar amount of earned interest and late
charges accrued during the current fiscal year. (4) Collections on
Receivables: The dollar amount of collections on
all debts, including delinquent, non-delinquent, restored and
written-off debts, during the fiscal year. Enter collections with a minus (-) sign
before the figures. Footnote non-cash collections (for
example, personal property or services rendered). The total dollar amount
equals the sum of lines 4A through 4G of this section and is system
generated. (A) At Agency: The dollar amount for both delinquent
and non-delinquent debts worked and collected at the agency. (B) At Third Party: The dollar amount for both delinquent
and non-delinquent debts collected by a third party other than the
Department of Justice or private collection agency, such as a guaranty
agency. (C) Asset Sales: The dollar amount of proceeds realized
from the sale of a loan or debt. Do not include sales of secured
property in this section. Include collections from sales of
secured property in line 4E below. (D) Collections by Treasury through Offset and
Cross-Servicing: The dollar amount of collections
received through the Treasury Offset Program or FMS Cross-Servicing. Collections
from FMS Cross-Servicing include collections through the Treasury Offset
Program, FMS’s private collection agencies, administrative wage
garnishments processed by Treasury and any other collections the creditor
agency receives while a debt is at cross-servicing at FMS. (E) Collections by (F) Collections by Department of Justice: The dollar
amount of collections received by the Department of Justice from enforced
collection action. (G) Other: The dollar amount of all other
collections, for both delinquent and non-delinquent debts, not recorded in
lines 4A through 4F of this section. Other collection tools or techniques
include, but are not limited to, wage garnishment orders issued directly
by the agency, private collection agencies (other than through FMS
Cross-Servicing) and designated debt collection centers. Footnote
amounts reported on this line to identify the method of collection. (5) Adjustments: The number and dollar amount of changes
to receivables during the fiscal year due to reclassifications or
adjustments, acquisition of property, estimated losses on acquired
property, or consolidations. The total dollar amount equals the sum
of lines 5A through 5E of this section and is system-generated. These lines
may be either positive or negative. Enter adjustments with a minus sign (-)
before the figure if the number or dollar amount is negative. Line 5E is
only a positive (+) value. (A) Reclassified/Adjusted Amounts: The dollar
amount reclassified or adjusted and transferred into or out of receivables
balances during the fiscal year. The amounts may include, but are not
limited to, corrections to a previously reported receivable, refunds of
amounts previously reported as collections, adjustments made in a prior
reporting period and estimated losses on collateralized debts. This line item may be either positive or
negative.
You
must footnote all amounts reported on this line with the reason for the
reclassification/adjustment. (B) Adjustments Due to the Sale of Assets: The dollar
amount of the difference between the gross book value of an asset and the
proceeds from the sale of the asset as reported as a collection in line 4C
of this section. (C) Consolidations: The dollar amount of proceeds received
through loan consolidations. Loan consolidations include, but are
not limited to, defaulted guaranteed loans that are closed and
reestablished as direct loans. (D) Foreclosure Adjustments: The dollar
amount of adjustments made as the result of a foreclosure on
collateral.
This section includes adjustments due to the acquisition of
property serving as collateral on a direct or defaulted guaranteed
loan.
(E) Written-Off Debts Reinstated for Collection: The dollar
amount of written-off debts the agency reinstated into total receivables
in order to account for collections received. Since the
debts are being reinstated, only enter positive (+) amounts for this
line.
The written-off debts could have previously been Currently Not
Collectible (CNC) debts from Part II, Section D, line 1 that were written
off previously in line 6A of this section or debts that had been written
off and closed out in line 6B of this section. (6)
Amounts Written Off: The number
and dollar amount of all uncollectible debts written off during the
current fiscal year. Enter amounts written off with a minus
(-) sign before the figures. The total dollar amount equals the sum
of lines 6A and 6B of this section, and is system generated Do not include estimated losses on collateralized
debts.
That figure is to be included on line 5A of this section. (A) Currently Not Collectible: The number and dollar amount of debts where collection action continues and the debt is not closed out. Generally, write off of debts to CNC is mandatory for debts more than 2 years delinquent, but can be done for debts less than 2 years delinquent if the agency determines that the debts have no value for accounting purposes. (B) Written Off and Closed Out: The number and dollar amount of debts for which all collection activity has been terminated. (7)
Ending Balance: The number
and dollar amount of receivables outstanding, at the end of the reporting
period.
The dollar amount is equal to the sum of lines 1, 2, 3, 4, 5, and 6
of this section and is system generated. Lines 4 and 6 are negative
figures.
Line 5 may be either a positive or negative figure. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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General Section B - Additional Receivables Data (Information
Only) - Captures subsets of total receivables information
from Part I, Section A, line 7. The information captured includes
receivables information at the end of the quarter classified as foreign
sovereign, State and local government, rescheduled-delinquent and
non-delinquent debts, and interest and late charges. The
information in this section is mutually exclusive and is collected
separately in this section for informational purposes only. By Line (1) Subsets of Ending Balance: Captures
various categories of receivables information that are subsets of Part I,
Section A, line 7. Each line of information in this
section of the report is separate and is not totaled in this part of the
report nor; does it necessarily add up to Part I, Section A, line 7. (A)
Foreign/Sovereign Government: The number
and dollar amount of receivables owed to the U.S. government by foreign
sovereign nations. Do not include receivables owed by private foreign
corporations or foreign individuals; those receivables should be
classified as either commercial or consumer, as appropriate. (B)
State and Local Government: The number
and dollar amount of receivables owed to the U.S. government by State
governments and local governments or governmental entities, including
public schools, colleges and universities. (C)
Rescheduled Debt -
Delinquent: The number and dollar amount of
rescheduled debts for which payments have not been
received according to new or modified terms of an agreement to repay the
debt. Note: The amount entered here should be the original
amount of the delinquency, unless the terms of the repayment agreement do
not provide for reinstating the total amount of the original debt. (D)
Rescheduled Debt - Non-Delinquent: The number
and dollar amount of rescheduled debt for which payments are being
received according to new or modified terms of an agreement to repay the
debt. (E) Interest & Late Charges: The dollar amount of interest and late charges associated with the total outstanding receivables due from the public, at the end of the reporting period, i.e., reported in Part I, Section A, line 7, “Ending Balance”. This amount includes both the current and previous fiscal years’ interest and late charges. See Glossary for the definitions of interest and late charges. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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General Section C - Delinquent Debt (Excluding CNC Debts)
-
contains an aging schedule and a separate schedule which classifies all
delinquent debts by the Commercial, Consumer, Foreign Sovereign
Government, and State and Local Government categories. The
delinquent debts in this section do not
include CNC debts that have been written off in the current year or in
previous years.
The following criteria must be used when preparing
this section: A debt is delinquent
if it has not been paid by the date specified in the agency’s initial
written demand for payment or applicable agreement or instrument, unless
other satisfactory payment arrangements have been made. If the
contract or agreement provides for a “grace” period, then do not report
the debt as delinquent, until that period expires without payment. In such
cases, however, the date of delinquency is the original due date. Age delinquent debts
from the date of delinquency. If a debtor is making
payments according to the terms of a repayment plan approved by the
agency, the debt is not considered to be delinquent. Report each debt owed
by a single debtor with multiple debts as a separate debt. Report each
delinquent debt once, even if your agency tracks delinquent payments on
that debt separately. For example, if the debtor has missed
two payments, and the agency keeps track of those delinquencies
separately, for purposes of this section of the TROR, report them together
as one debt. If any installment is
delinquent more than 180 days, report the debt as delinquent more than 180
days. Do
not split the reporting between sections A and B. Report the entire
amount of each single debt as delinquent, if any part of it has been
delinquent more than 180 days, and the debt has been accelerated. By Line (1) Delinquencies by
Age:
This line includes the dollar amount of debts reported on line 7
(Ending Balance) in Part I, Section A that are delinquent at the end of
the quarterly reporting period, grouped by the number of days the debt is
past due at the end of the reporting period. Report debts
with portions in different aging categories--such as may occur when a
debtor becomes delinquent on multiple installment payments--in the most
delinquent (oldest) category. The total dollar amount equals the sum
of lines A through G of this line. The total dollar amount also equals the
sum of line (2) of this section. The total dollar amount of delinquent
debts is system generated on line 1H. Lines (A) through (G) show the dollar amounts of
debts that are delinquent for the respective time periods (1-90 days,
91-180 days, 181-365 days, 1-2 years, 2-6 years, 6-10 years, and over 10
years). (2) Delinquencies by
Category:
This line includes the number and dollar amount of debts reported
on line 7 (Ending Balance) in Part I, Section A that are delinquent at the
end of the quarterly reporting period, grouped by the category of
debt.
All delinquent debts should be placed into one of these
categories.
The total dollar amount equals the sum of lines A through D of this
line.
The total dollar amount also equals the sum of line (1) of this
section.
The total number and dollar amount of delinquent debts is system
generated on line 2E. (A) Commercial: The number and dollar amount of
delinquent commercial debts. Report debts as “commercial” if they
were originated for a business activity, regardless of whether the
debtor is an individual or business. See Glossary for examples of commercial
debts. (B)
Consumer: The number
and dollar amount of delinquent consumer debts. Report debts
as “consumer” debts if they were originated for a personal
activity.
See Glossary for examples of consumer debts. (C)
Foreign/Sovereign Debt: The number
and dollar amount of delinquent debts owed to the U.S. government by
foreign sovereign nations. Do not include debts owed by private foreign
corporations or foreign individuals. Report those debts either as commercial
or consumer.
(D)
State and Local Government: The number
and dollar amount of delinquent debts owed to the U.S. government by State
and local governments or governmental entities, including public schools,
colleges and universities. (E) Total
Delinquencies by Category: The total number and dollar amount of
delinquent debts. Total delinquencies are the total of
lines 2A through 2D and are system generated. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PART II - DEBT MANAGEMENT TOOL AND TECHNIQUE PERFORMANCE DATA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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General Section A - Delinquent Debt 180 Days or
Less
- captures delinquent debt information on the status of the debts and
collection tools and techniques being used to collect delinquent debts
that are 1-180 days delinquent: in bankruptcy, in forbearance or in formal
appeals, in foreclosure, at a private collection agency, in litigation, in
the process of internal offset, in wage garnishment, at Treasury for
cross-servicing or offset and collected at the agency. This section is
designed to provide specific information on the actions an agency is
taking to collect its debts between 1 and 180 days delinquent. Use the
following criteria when preparing this section: (A) Categories
are not necessarily mutually exclusive. For example, an agency may refer a debt
to a private collection agency and to Treasury for offset at the same
time.
Report such a debt in both places. (B) However, do
not report debts at FMS or a Designated Debt Collection Center for
cross-servicing, at another third party, or at the Department of Justice
for litigation in any other category, even though the entity working the
debt may have referred it to a private collection agency or to FMS for
offset. By Line (1) Delinquencies 1
- 180 Days:
The cumulative dollar amount of delinquent debts outstanding 180
days or less as of the end of the quarterly reporting period. The total for
this section is line 1L. (A) In Bankruptcy: The number and dollar amount of
delinquent collateralized or uncollateralized debts in bankruptcy. (B) In Forbearance or In Formal Appeals Process: The number
and dollar amount of delinquent debts that the agency has placed in
forbearance (i.e., agreed not to enforce collection for a period of time)
and debts in a formal appeals process that precludes collection. This category
only includes appeals programs that both determine the validity and legal
enforceability of the debt and that require collection action to be
suspended while the appeal is pending. If a debt is in an appeals process that
does not require suspension of collection, that should not be reported in
this line.
Agencies should consult with their counsel if there is any question
as to whether a debt may be collected while in a particular appeals
process. (C) In Foreclosure: The number and dollar amount of
delinquent debts which are in foreclosure. To be “in foreclosure”, the agency must
have filed a notice of default. (D) At Private Collection Agencies: The number
and dollar amount of delinquent debts currently at private collection
agencies (PCAs) under contract with your agency. Do not
include debts that are with PCAs as a part of FMS’s Cross-Servicing
Program.
These actions should be reported in “At Treasury for
Cross-Servicing” on line 1H of this section. (E) In Litigation (At DOJ or Agency Counsel): The number
and dollar amount of delinquent debts that the Department of Justice is
litigating.
If your agency has statutory authority to litigate, include debts
that are being litigated by your agency in this line. Being
litigated means that the agency’s attorneys have taken some action towards
litigation.
It does not include debts that are merely under review in the
agency counsel’s office. (F) In the Process of Internal Offset: The number
and dollar amount of delinquent debts that are in the process of being
collected by internal agency offset. Internal offset occurs when an agency
collects a delinquent debt by offsetting payments made or due to the
delinquent debtor by that agency. (G) In Wage Garnishment: The number
and dollar amount of delinquent debts for which the agency has issued
administrative wage garnishment orders. Do not include garnishment actions
brought by the Department of Justice or FMS; report these actions as “In
Litigation (At DOJ or Agency Counsel)” on line 1E of this section or “At
Treasury for Cross-Servicing” on line 1H of this section,
respectively. Do not include Federal
employee salary offset referrals on this line; Federal employee salary
offsets are collected through the Treasury Offset Program. These
referrals should be reported in line 1I of this section. (H) At Treasury for Cross-Servicing: The number and
dollar amount of delinquent debts at the Department of the Treasury-FMS
for cross-servicing. (I) At Treasury for Offset: The number
and dollar amount of delinquent debts referred to the Department of the
Treasury-FMS for collection through the Treasury Offset Program. (J) At Agency: The number and dollar amount of
delinquent debts that are being worked at the agency. Debt being
worked at the agency includes, but is not limited to, in counsel, Federal
salary offset initiated by the agency, or pending referral to the
Department of Justice for litigation. (K) Other: The number and dollar amount of
delinquent debts that are being worked by management tools or techniques
not represented in lines 1A through 1J of this section. Other tools
and techniques include, but are not limited to, debts at third parties -
such as a guaranty agency or financial institution, and debts at a
designated debt collection center. All amounts reported on this line are to be footnoted
to identify the tool or technique utilized. (L) Total Delinquencies 1 - 180 Days: The dollar amount of “Total Delinquencies 1 - 180 Days” is system generated and will equal the sum of Part I, Section C, lines 1A and 1B. Because the categories are not mutually exclusive, the sum of lines 1A thru 1K of this section may not equal the total in line 1L, Total Delinquencies 1-180 Days. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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General Section B - Delinquent Debt (Over 180 Days
Delinquent) Eligible for Referral to Treasury for Offset and
Cross-Servicing - captures delinquent debt information according to
eligibility for referral to Treasury for offset and cross-servicing. Debts that
are not legally enforceable are ineligible for referral to Treasury for
offset and cross-servicing. Ineligible debts include, but are not limited
in the following debt states: bankruptcy, forbearance, formal appeals, and
foreclosure.
Of eligible debts, there are two exceptions to the
statutory requirement to refer the debts to FMS for offset once it is 180
days delinquent--debts owed by foreign sovereign nations and debts in
litigation at DOJ for enforced collection. Exceptions for debt referrals to
Treasury for cross-servicing include the offset exception categories, plus
the following: debts at private collection agencies; in the process of
internal offset; exempted by Treasury from cross-servicing; and debts
returned from cross-servicing as uncollectible. Note: Debts that are more than 10 years delinquent
are ineligible for offset, unless the offset of such debts is authorized
by Federal law.
For example, there is no time limit on collecting the Department of
Education’s student loans. This information is requested to assist in
identifying what actions agencies are taking to collect seriously
delinquent debt, relative to compliance with the requirements of the
DCIA.
The DCIA requires agencies to (1) notify Treasury of all debts
delinquent more than 180 days for offset and (2) refer to Treasury, with
the aforementioned exceptions, all debts delinquent more than 180 days for
cross-servicing debt collection. The “Other” category (lines 1G, 2D and 3H) is to be
used for unique exemptions from both cross-servicing and Treasury offset.
It should be
used sparingly and only when the debt truly cannot be placed in one of the
given categories. The report contains pop-up screens that
will appear when filling in the “Other” category line item. The pop-up
screens will explain to the preparer what goes in this category. In
preparing this section, consider the following: Compromise
Debt: The amount of a debt remaining after the
agency has compromised with the debtor and has received the agreed amount,
generally is not legally enforceable. The agency should remove the compromised
amount from its books and determine whether to report that amount to the
Internal Revenue Service (IRS) on a Form 1099-C. Repatriation
Loans Over 10 Years Delinquent: These debts are essentially written off
as uncollectible. They remain on the agency’s books for
the sole purpose of preventing a debtor from obtaining a new passport
until the debt is paid off. Repayment
Agreements or Installments: If the agency and the debtor have
entered into either an installment or repayment agreement, and the debtor
is in compliance with the terms of that agreement, this debt is no longer
delinquent.
It should be reclassified as a “Current Receivable” and be taken
out of the over 180 days delinquent category of reporting. By Line (1) Debt Eligible
for Referral to Treasury for Collection. (A) Delinquent Debt Over
180 Days: The dollar amount of debts that are over 180 days
delinquent.
The dollar amount on this line equals the sum of lines 1C through
1G of Part I, Section C. (B) Currently Not Collectible Debt: The dollar
amount of debt that have been written off and categorized as “Currently
Not Collectible”, but have not been closed out by the agency. The dollar
amount on this line should equal the amount reported in Part II, Section
D, line 1E. (C) Total Delinquent Debt Over 180 Days and CNC
Debts:
The dollar amount is the sum of lines 1A and 1B of this section and
is system generated. Debts Ineligible for Treasury Offset Program (TOP)
and Cross-Servicing (Lines D through G). Debts
reported in lines D through G are ineligible for both TOP and
Cross-Servicing. (D) In Bankruptcy: The number and dollar amount of
delinquent collateralized or uncollateralized debts in bankruptcy. Enter the
number and dollar amount with a minus (-) sign before the figures. (E) In Forbearance or Formal Appeals Process (including Litigation): The number and dollar amount of delinquent debts that are deferred because of a formal forbearance program or appeals process. Include debts here only if the results of an appeal determine whether a debt is considered valid and legally enforceable and/or the dollar amount to be collected. Enter the number and dollar amount with a minus (-) sign before the figures. If the debt is no longer in a forbearance program or formal appeals process and is currently in litigation for enforced collection, it may be reported in lines 2C and 3C of this section. (F) In Foreclosure: The number and dollar
amount of delinquent collateralized debts in foreclosure. For a debt to
be “in foreclosure”, the agency must have filed a notice of default. Enter the
number and dollar amount with a minus (-) sign before the figures. If an ongoing foreclosure proceeding is taking place,
the debt should be classified as “In Foreclosure”. If a legally
enforceable deficiency remains after foreclosure, the deficiency debt is
not in foreclosure, and it is eligible for referral to Treasury. (G) Other: The number and dollar amount of
delinquent debts that are exempt from referral to Treasury for reasons
other than those listed in lines 1D through 1F of this section. Amounts
entered on this line must be footnoted with the reason for exempting the
debt from referral. The number and dollar amount may be
positive or negative. When entering negative amounts, use a
minus (-) sign before the figures. Note on Debts
That Are Not Legally Enforceable: Debts that are classified as in
suspense, that are deemed not valid or for which no final determination
that the debts are due and valid, should be included in the “Other”
category since they are not legally enforceable. Note on Debts
Scheduled for Sale: The DCIA excludes debts for referral to
Treasury for cross-servicing, if they will be disposed of under an asset
sales program within one year of becoming eligible for sale, or later than
one year if consistent with an asset sales program and a schedule
established by the agency and approved by the Director of the Office of
Management and Budget. These debts should be included in the
“Other” category. Such debts are not exempt from offset,
and agencies should refer those debts to the Treasury Offset Program. (H) Balance of Debt Eligible for Referral to Treasury for
Collection: Enter the appropriate number of accounts
for this line manually. The dollar amount line is system
generated and is the sum of lines 1C through 1G. The system will transfer data in this line to lines
2A and 3A of this section, respectively. (2) Debt Eligible
for Referral to the Treasury Offset Program. (A) Debt Eligible for Referral to Treasury
for Collection:
The number and dollar amount of debts that are over 180 days
delinquent, and are otherwise eligible for offset. It may also
include debts classified for accounting purposes as CNC. The number
and dollar amount on this line equals the number and dollar amount on line
1H of this section and are system generated. (B) Foreign/Sovereign Debt: The number
and dollar amount of delinquent debts owed to the U.S. government by
foreign sovereign nations. Do not include debts owed by private
foreign corporations or foreign individuals; agencies should classify
those debts as either commercial or consumer debts. Enter the
number and dollar amount with a minus (-) sign before the figures. (C) Debt in
Litigation for Enforced Collection: The number and dollar amount of
delinquent debts over 180 days that have been referred for litigation and
are in the process of enforced collection; this may include DOJ referrals
or internal referrals at agencies with statutory authority to
litigate.
This does not include debts that are merely under review in the
agency counsel’s office. Enter the number and dollar amount with a minus (-)
sign before the figures. If the debt is in a forbearance program or formal appeals process, it should be reported in line 1E of this section. Note on Debts in Litigation at the Agency: If a debt is not being handled by DOJ, it can still be considered “In Litigation” if an actual court proceeding has been commenced. If the debt is with the agency counsel who is considering, but has not actually started litigation, then the debt should be “Referred to Treasury” and not reported as an exemption. Note on Estate debt: If the agency is proceeding against the estate of a deceased debtor, it should be categorized as “Debt in Litigation for Enforced Collection”. (D) Other: The number and dollar amount of
delinquent debts that are exempt from mandatory referral to the Treasury
Offset Program for reasons other than those listed in lines 2B and 2C of
this section.
Agencies must footnote amounts entered on this line with the reason
for exempting the debt referral balance. The number and dollar amount may be
positive or negative. Enter negative amounts with a minus (-)
sign before the figures. Note on debts
over 10 years old: If a debt that has been delinquent
longer than 10 years is on an agency’s books, it is ineligible for
“Offset”, but eligible for “Cross-Servicing” because TOP is subject to a
10-year statute of limitations, unless otherwise provided by law. These debts
should be deducted in line 2D with a minus sign (-) before the
figures, because they are not eligible for collection through TOP, but
will be included in line 3 of this section for referral to
cross-servicing. (E) Debt Required to be Referred to the Treasury Offset
Program by Agency: The number and dollar
amount of delinquent debts over 180 days and otherwise eligible for offset
(including CNC debts) that agencies must refer to Treasury for offset.
The
number and dollar amount on this line are the sums of lines 2A through 2D
of this section and are system generated. (F) Debt Referred to Treasury Offset Program: Of the amount
eligible, the number and dollar amount of delinquent debts over 180 days
that have been referred directly to the
Department of the Treasury-FMS for submission to the Treasury Offset
Program and are currently eligible for collection in TOP. Enter the number and
dollar amount with a minus (-) sign before the figures. (G) Debt Referred to Treasury Offset Program through
Cross-Servicing: The number and dollar amount of
delinquent debts over 180 days that have been
referred to the Treasury Cross-Servicing Program and have subsequently
been submitted to the Treasury Offset Program by Treasury and that are
currently eligible for collection in TOP. Enter the number and dollar amount with a minus (-)
sign before the figures. (H) Balance Remaining to be Referred: The number and dollar amount of delinquent debts over 180 days and otherwise eligible for offset (including CNC debts) that remain to be referred to Treasury for offset. Please provide an explanation in the footnote section why any remaining eligible debts are not referred to Treasury or a Debt Collection Center for offset. The number and dollar amount on this line is the sum of lines 2E through 2G of this section and are system generated. (3) Debt Eligible
for Referral to Treasury or a Designated Debt Collection Center for
Cross-Servicing. (A) Debt Eligible for Referral to Treasury for
Collection:
The number and dollar amount of debts that are over 180 days
delinquent (including debts classified as CNC). The number
and dollar amount on this line equal the number and dollar amount of line
1H of this section and are system-generated. (B) Foreign/Sovereign Debt: The number
and dollar amount of delinquent debts owed to the Government by foreign
sovereign nations. Do not include debts owed by private foreign
corporations or individuals; agencies should classify those debts as
either commercial or consumer debts. Enter the number and dollar amount with
a minus (-) sign before the figures. (C) Debt in
Litigation for Enforced Collection: The number and dollar amount of
delinquent debts over 180 days that the agency has referred for litigation
and are in the process of enforced collection; this may include DOJ
referrals or internal referrals at agencies with statutory authority to
litigate.
This does not include debts that are merely under review in the
agency counsel’s office. Enter number and dollar amount with a minus (-) sign
before the figures. If the debt is in a forbearance program or formal appeals process, it should be reported in line 1E of this section. Note on Debts in Litigation at the Agency: If a debt is not being handled by DOJ, it can still be considered “In Litigation” if an actual court proceeding has been commenced. If the debt is with the agency counsel who is considering, but has not actually started litigation, then the debt should be “Referred to Treasury” and not reported as an exemption. Note on Estate debt: If the agency is proceeding against the estate of a deceased debtor, it should be categorized as “Debt in Litigation for Enforced Collection”. (D) At Private Collection Agencies (PCAs): The number
and dollar amount of delinquent debts currently at private collection
agencies.
Enter the number and dollar amount with a minus (-) sign before the
figures.
(E) In the Process of Internal
Offset:
The number and dollar amount of delinquent debts that the agency is
currently collecting through internal offset. A debt is
being collected by internal offset if a creditor agency expects the debt
to be collected in full within three (3) years from the date of
delinquency by withholding funds payable by the creditor agency by the
debtor to satisfy, in whole or in part, the debt of the debtor to the
creditor agency. Enter the number and dollar amount with
a minus (-) sign before the figures. (F) Debt Exempted by Treasury from Cross-Servicing: The number and dollar amount of delinquent debts that the Secretary of the Treasury has formally exempted from cross-servicing. Enter the number and dollar amount with a minus (-) sign before the figures. Examples of debts exempted by Treasury include:
(1) debts being serviced by third parties (including state-managed
debts); and (2) classes of debts exempted by Treasury upon formal request
of an agency or upon Treasury’s own initiative. (G) Debt Returned from Cross-Servicing: The number and dollar amount of delinquent debts returned from cross-servicing as uncollectible and which the agency is preparing for close-out. Enter the number and dollar amount with a minus (-) sign before the figures. (H) Other: The number and dollar amount of
delinquent debts that are exempt from mandatory referral to Treasury or a
Designated Debt Collection Center for cross-servicing for reasons other
than those listed in lines 3B through 3G of this section. Other exempt categories include debts scheduled for
sale. Footnote amounts entered on this line, with the
reason for exempting or adjusting the debt referral. The number
and dollar amount may be positive or negative. Enter
negative amounts with a minus (-) sign before the figures. Note on Debts
Scheduled for Sale: The DCIA exempts from cross-servicing
debts that will be disposed of under an asset sales program within one
year of becoming eligible for sale, or later than one year if consistent
with an asset sales program and a schedule established by the agency and
approved by the Director of the Office of Management and Budget. Report this
on the “Other” line. (I) Debt Required to be Referred to Treasury or a
(J) Debt Referred to Treasury or a Designated Debt Collection Center for Cross-Servicing: Of the amount eligible, the number and dollar amount of delinquent debts over 180 days (including CNC debt) that have been referred to Treasury or a Designated Debt Collection Center for cross-servicing. Enter number and dollar amount with a minus (-) sign before the figures. (K) Balance Remaining to be Referred: The number and dollar amount of delinquent debts over 180 days (including CNC debt) that remain to be referred to Treasury or a Designated Debt Collection Center for cross-servicing. Please provide an explanation in the footnote section why any remaining eligible debts are not referred to Treasury or a Designated Debt Collection Center for cross servicing. The number and dollar amount on this line equal line 3I minus line 3J of this section and are system generated. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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General Section C - Collections on Delinquent
Debt
- captures information on all collections of delinquent
accounts by management tool and technique. Collections are not always mutually
exclusive.
The number and dollar amount of collections are recorded for each
tool or technique that is used to collect funds. The
purpose for requesting this information is to assist agencies in assessing
the effectiveness of their current debt collection strategies. This
information allows agencies to compare the number of cases and dollar
amounts collected from each tool to the number and dollar amount of debts
applied to each tool. The following criteria must be used when preparing
this section: Categories are
not always mutually exclusive. An agency may collect a debt from a
private collection agency and from the Treasury Offset Program at the same
time.
The collections should be reported in both places. However,
collections by Treasury’s Cross-Servicing Program or a designated debt
collection center, third party, or the Department of Justice (by
litigation) will not be reported in any other category, even though the
entity working the debt may have received funds from a private collection
agency or from the Treasury Offset Program. The actual
number of debts for which collections were received is to be
reported.
If amounts were received for the same debt by more than one tool or
technique, the debt is to be counted once for each tool or technique that
was successful in collection. By Line (1) Collections on
Delinquent Debt: The cumulative dollar amount of
collections on delinquent debts (including CNC debts) for the current
fiscal year is reported in this section. Include collections of delinquent debts
that were written off and subsequently restored during the fiscal year.
Non-cash
collections (for example, personal property or services rendered) are to
be footnoted. Collections on delinquent debts will be itemized in
the following categories: (A) By Private Collection Agencies: The number
and dollar amount of delinquent debts collected by private collection
agencies under contract with the agency. Do not include collections by private
collection agencies under contract with FMS or a (B) By Litigation: The number and dollar amount of
delinquent debts collected through litigation. Include
judicial foreclosure, bankruptcy, cash and non-monetary settlements. (C) By Internal Offset: The number
and dollar amount of delinquent debts collected through internal
offset.
An internal offset occurs when an agency collects by offsetting
payments made or due to the delinquent debtor by that same agency. (D) By Third Party: The number and dollar amount of
delinquent debts collected by a third party, other than the Department of
Justice or a private collection agency, such as a guaranty agency. (E) By Asset Sales: The number and dollar amount of
proceeds realized from the sale of delinquent loans or debts. This does not
include liquidation of collateral. (F) By Wage Garnishment: The number
and dollar amount of delinquent debts collected from garnishment of non-Federal wages. Do not include Federal
employee salary offsets collections on this line; Federal employee salary
offsets are collected through the Treasury Offset Program. These
collections should be reported in line 1H of this section. (G) By Treasury/Designated Debt Collection Center
Cross-Servicing: The number and dollar amount of
delinquent debts collected by FMS or other Designated Debt Collection
Center Cross-Servicing Programs. Report total collections received through
cross-servicing, regardless of the collection tool utilized. (H) By Treasury Offset: The number and dollar amount of
delinquent debts collected through the Treasury Offset Program for those
debts referred directly to TOP by the agency. (I) By Agency: The number
and dollar amount of delinquent debts worked and collected at the
agency. (J) Other: The number
and dollar amount of delinquent debts collected by management tools or
techniques not represented in lines 1A through 1I of this section. Footnote all
amounts reported on this line to identify the collection method used. (K) Total Collections on Delinquent Debt: The
cumulative dollar amount of “Total Collections on Delinquent Debt” on this
line equals the sum of lines 1A through 1J of this section and is system
generated. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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General Section D - CNC Debt Status - captures
information on the number and dollar amount of selected categories of
Currently Not Collectible (CNC) delinquent debt. The
purpose of this section is to collect information on the status of CNC
debts and to identify the collection tools that agencies are using to
collect such debts. Section D also captures information on
the final close-out of CNC debts. By Line (1) Currently Not
Collectible Debts (Written Off and Not Closed Out): The number
and dollar amount of debts that have been written off (removed from agency accounting records) but
not closed out.
The number and dollar amount for line 1E of this section shall be a
cumulative number, representing all written-off debt from the current and
preceding
fiscal years which the agency is continuing to pursue collection
action.
Debts reported in this section can be reported in more than one
line, except debts that have been referred to Treasury or a
(A) At Private Collection Agencies: The number and
dollar amount of CNC debts that are still being pursued for collection by
a private collection agency. (B) At Treasury or a (C) At Treasury for Offset: The number
and dollar amount of CNC debts referred to the Treasury Offset
Program. (D) Other: The number
and dollar amount of CNC debts that have been written off and not included
in lines 1A through 1C of this section. Amounts reported on this line should be
footnoted to explain why they were not reported on lines 1A through 1C and
what type of passive collection action the agency is taking. (E) Total-Currently Not Collectible
Debts: The total number and dollar amount of
CNC debts, from both the current year and previous fiscal years, which
have not been closed out. The agency manually enters this line--the total is
not system generated. The amount of this line may be
different than the sum of lines 1A-1D of this section, because the debts
may be reported in more than one line of this section. The number
and amount reported on this line should never be greater than the total of
lines 1A-1D of this section. (2) CNC Debts Closed Out During the Current FY: The cumulative number and dollar amount of CNC debts for which collection action has been terminated. These debts have been removed from the CNC category and closed out during the current fiscal year. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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General Section E - Disposition of Closed-Out
Debts - captures information on the number and dollar
amount of closed-out delinquent debts. Section E
captures information on the final close out of delinquent debt and
reporting of debts to IRS as potential income on IRS Form 1099-C
(Cancellation of Debt), once the agency determines that no further
collection action will be taken. Section E also collects information on
debts closed out during the previous calendar year where the debt was not
reported to the IRS. This section reports on the close out
of all
delinquent debts, including both CNC and Non-CNC debts. (Non-CNC debts are
delinquent debts that were never re-classified as Currently Not
Collectible).
By Line (1) Debts Closed Out During Previous CY: The cumulative
number and dollar amount of all debts (both CNC and Non-CNC debt) for
which the agency terminated collection action and that were closed out in
the previous calendar year. (A) Reported to IRS on Form 1099-C: The number
and dollar amount of debts that the agency reported to the IRS on IRS Form
1099-C as potential income to a debtor or debtors during the most recent
tax year (previous calendar year). Debts reported on this line have been written off and
closed out and all collection actions have ceased. Important
Agencies must submit a Form 1099-C for all closed-out debts in a
given calendar year no later than the end of February of the subsequent
calendar year.
For example, if a debt is written off in March 2004, and the agency
decides to terminate all collection efforts in June 2005, the debt amount
could be reported to IRS any time after termination of collection but
before the end of February 2006. Most agencies wait to file 1099-Cs
until after the close of the tax year. Assuming this is the agency’s practice,
in this example, the agency would report on this line in the 2nd quarter,
FY 2006 TROR, and that number would not change over the next three
quarters. (B) Not Reported to IRS on 1099-C (must footnote):
The cumulative number and dollar amount of debts for which all collection
actions have ceased for the previous calendar year, but have not been
reported to the IRS as potential income on IRS Form 1099-C. All closed-out
debts should be reported to the IRS on IRS Form 1099-C, unless they meet a
legal exception that bars them from reporting the closed-out debt, or they
do not meet the appropriate IRS requirements set forth in the instructions
to IRS Form 1099-C. Explain in the footnote section the reason(s) that
these debts are not reported to the IRS. The number
and dollar amount on this line are system generated from the difference of
lines 1 and 1A of this section. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
When footnotes are either required in the instructions or necessary for clarification, prepare and submit them via the DMIS Internet-based application along with Parts I and II of the TROR. Footnotes are required whenever agencies’ criterion is inconsistent with Treasury’s definition of data requirements. Footnotes are required to explain agency exceptions to the TROR data requirements. Enter footnotes in the designated area and reference them to the appropriate line item. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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