TABLE OF CONTENTS
| Topics | Sections |
|---|---|
| OVERVIEW | 2.1 What is the purpose of this chapter? 2.2 What is the scope of this chapter? 2.3 What are the authorities for this chapter? 2.4 What is the overall Service policy on the referral and disposition of uncollectible debts? 2.5 What terms do you need to know to understand this chapter? |
| RESPONSIBILITIES | 2.6 What are the responsibilities for the referral and disposition of uncollectible debts? |
| WAIVERS | 2.7 When may a debtor request a debt waiver? 2.8 How does a debtor request a waiver? 2.9 Who has the authority to waive a debt? 2.10 What happens when a waiver is denied? |
| SUSPENSIONS | 2.11 When may the Service suspend collection activity on a debt? 2.12 Who has the authority to suspend collection activity? |
| TERMINATIONS | 2.13 When may the Service terminate collection activity on a debt? 2.14 Who has the authority to terminate collection activity? 2.15 What is the threshold for when the Service may terminate debt without pursuing collection? |
| COMPROMISE | 2.16 Who has the authority to compromise a claim? 2.17 When does a debt meet the criteria for compromise? |
| WRITE-OFFS | 2.18 When must the Service write off a debt classified as currently not collectible or closed out? 2.19 Who has the authority to write off a debt? 2.20 What happens after the Service writes off a debt? |
| LITIGATION | 2.21 When may the Service refer a debt for litigation? |
OVERVIEW
2.1 What is the purpose of this chapter? This chapter establishes policy and procedures for U.S. Fish and Wildlife Service (Service) employees who oversee the referral and disposition of uncollectible debts from non-employees.
2.2 What is the scope of this chapter?
A. This chapter applies to all Service employees who:
(1) Manage debt on behalf of the Service with:
(a) Debtors in the non-Federal sector, and
(b) Other Government agencies; and
(2) Process debt collection on behalf of the Service.
B. This chapter does not cover debts where there is a(n):
(1) Indication of fraud;
(2) Presentation of false debt;
(3) Misrepresentation on the part of the debtor or any other party having an interest in the debt; or
(4) Debt based in whole or in part on conduct that violates antitrust laws, unless we referred the debt to the U.S. Department of Justice (Justice), and Justice returns it to the Department of the Interior (Department) and the Service for further handling.
2.3 What are the authorities for this chapter?
A. Claims for overpayment of pay and allowances, and of travel, transportation and relocation expenses and allowances (5 U.S.C. 5584).
B. Claims of the United States Government (31 U.S.C. 3701-3719).
C. Debt Collection Improvement Act of 1996, Chapter 10 (Public Law 104-134).
D. Department’s Office of Financial Management (PFM), Cash Management Handbook.
E. Department’s PFM, Credit and Debt Management Handbook.
F. Federal Claims Collection Standards (31 CFR Chapter IX, Parts 900-904).
H. Time for Commencing Actions Brought by the United States (28 U.S.C. 2415).
I. Treasury Financial Manual, Chapter 8000, Recovering Unclaimed Federal Financial Assets, U.S. Department of the Treasury (Treasury), Bureau of the Fiscal Service.
J. 205 Departmental Manual (DM) 7, Claims by the United States for Money or Property.
K. 344 DM 9, Waiver of Claims for Erroneous Payments.
2.4 What is the overall Service policy on the referral and disposition of uncollectible debts? We:
A. Refer eligible non-Federal delinquent bills to Treasury,
B. Write off bills more than 2 years past due and code them as Currently Not Collectible (CNC) in the Financial and Business Management System (FBMS),
C. Process debt waiver and debt write-off transactions as approved by the Assistant Director – Management and Administration (AD-MA) (i.e., Associate Chief Financial Officer),
D. Perform monthly reviews and reconciliations, and
E. Complete the quarterly Treasury Report on Receivables.
2.5 What terms do you need to know to understand this chapter?
A. Compromise a claim means accepting less than the full value of a claim.
B. Treasury Cross-Servicing Next Generation (CSNG) system is when Treasury takes appropriate action to service, collect, compromise, suspend, or terminate collection action on delinquent non-tax debt over 180 days.
C. Treasury Offset Program (TOP) is operated by Treasury’s Bureau of the Fiscal Service. It is a fully automated, centralized offset program that intercepts Federal and State payments to collect delinquent debts owed to Federal and State agencies. Federal agencies must notify TOP of all non-tax debts delinquent more than 120 days. Federal disbursing officials must offset payments to collect such debts. The Internal Revenue Service (IRS) levies TOP to collect Federal tax debts, at its discretion, under separate legal authorities from those authorizing administrative offset.
RESPONSIBILITIES
2.6 What are the responsibilities for the referral and disposition of uncollectible debts? See Table 2-1.
Table 2-1: Responsibilities for Referral and Disposition of Uncollectible Debts
| These employees… | Are responsible for… |
|---|---|
| A. The Director | (1) Ensuring effective management of the Service’s debt collection program, and (2) Approving or declining to approve Servicewide policy. |
| B. Directorate members (i.e., Regional Directors; Assistant Directors; Director, National Conservation Training Center (NCTC); Chief, National Wildlife Refuge System (NWRS)) | Ensuring their Regions/programs comply with this chapter. |
| C. AD-MA (i.e., Associate Chief Financial Officer) | Determining whether or not to: (1) Waive debts that are $100,000 or less. If the debt is for more than $100,000, the AD-MA makes a recommendation about a potential waiver to the Department’s Office of Hearings and Appeals; (2) Suspend collection activities on debts that are $100,000 or less, excluding interest, penalties, and administrative costs; (3) Terminate collection activity on debts that are $100,000 or less; (4) Terminate collection activity on debts $500,000 or less when they have been returned from Treasury as uncollectible; (5) Approve the termination of debts under $50; (6) Compromise a claim of debts of $100,000 or less; and (7) Write off a debt of $100,000 or less. |
| D. Joint Administrative Operations (JAO), Administrative Operations Center (AOC), Financial Operations Division Chief | Writing off bills that are more than 2 years past due, after receiving approval to do so from the AD-MA, and recording them as CNC in FBMS. |
| E. JAO, AOC, Payments and Collections Team | (1) Referring eligible non-reimbursable, non-Federal delinquent bills to Treasury; (2) Processing debt waivers and debt write-offs as approved by the AD-MA; and (3) Completing the quarterly Treasury Report on Receivables. |
| F. JAO, AOC, Reimbursable and Federal Agreements Team | Referring eligible reimbursable, non-Federal delinquent bills to Treasury. |
WAIVERS
2.7 When may a debtor request a debt waiver? Debtors may request a debt waiver if they dispute the debt (see 263 FW 1), feel it was issued in error, or feel they should not have reasonably known an overpayment occurred
2.8 How does a debtor request a waiver? The debtor must submit a written letter requesting a waiver to the Payments and Collections team with the following information:
A. Full name of the debtor or other person from whom collection is being sought,
B. Mailing address and phone number,
C. Copy of the Bill for Collection form (DI-1040),
D. Circumstances that created the debt, and
E. Why the debtor should not be liable for payment of the debt.
2.9 Who has the authority to waive a debt?
A. Debts of $100,000 or less. The AD-MA (i.e., Associate Chief Financial Officer), or designee, has the authority to make the determination to waive the debt.
B. Debts exceeding $100,000. The Department’s Office of Hearings and Appeals makes the determination to waive the debt after the AD-MA (i.e., Associate Chief Financial Officer), or designee, makes a recommendation.
2.10 What happens when a waiver is denied? The debtor may appeal the decision to:
A. TheDepartment’s Office of Hearings and Appeals, or
B. For debts related to travel, the Civilian Board of Contract Appeals.
SUSPENSIONS
2.11 When may the Service suspend collection activity on a debt? We may suspend collection activity when at least one of the following conditions is met:
A. The debtor cannot be located,
B. The debtor’s financial condition is expected to improve,
C. The debtor has requested a waiver of review of the debt,
D. The debtor has filed a bankruptcy petition, or
E. Treasury has determined that we should suspend collection action on the debt.
2.12 Who has the authority to suspend collection activity?
A. Debts of $100,000 or less. The AD-MA has the authority to suspend collection activity on non-employee debt of $100,000 or less, excluding interest, penalties, and administrative costs.
B. Debts exceeding $100,000. Justice has the sole authority to suspend collection activity on non-employee debt that exceeds $100,000, exclusive of interest, penalties, and administrative costs.
TERMINATIONS
2.13 When may the Service terminate collection activity on a debt? We may terminate collection activity when at least one of the following conditions is met:
A. The debtor cannot be located,
B. The debt is legally without merit or cannot be substantiated,
C. The cost of collecting the debt does not justify continued collection activity,
D. The collection of the debt is not in the best interest of the Service,
E. The debt has been discharged in bankruptcy, or
F. Treasury has determined that the debt is uncollectible.
2.14 Who has the authority to terminate collection activity?
A. Debts of $100,000 or less. The AD-MA has the authority to terminate collection activity.
B. Debts exceeding $100,000. If the debt has not been serviced and returned from Treasury, we must receive approval from the Department’s PFM with Justice’s concurrence.
C. Debts that do not exceed $500,000. The AD-MA has the authority to terminate collection activity on debts up to $500,000 if they have been returned from Treasury as uncollectible.
D. Debts that exceed $500,000. Justice has the sole authority to terminate collection activity.
2.15 What is the threshold for when the Service may terminate debt without pursuing collection? We may terminate the debt when the total combined debt for a debtor is $50 or less and we do not expect that the principal amount of the debt will exceed $50 during the next 12 months.
COMPROMISE
2.16 Who has the authority to compromise a claim?
A. Debts of $100,000 or less. The AD-MA has the authority to determine whether or not to compromise collection action.
B. Debts exceeding $100,000. Justice has the sole authority to compromise a claim when it exceeds $100,000, exclusive of interest, penalties, and administrative costs.
2.17 When does a debt meet the criteria for compromise? The AD-MA or Justice, depending on the amount, may decide to compromise a claim if it cannot be collected in full and at least one of the following conditions is met:
A. Debtor is unable to pay the full amount in a reasonable time,
B. Debt could not be collected by enforced collection action,
C. Cost of collecting the debt does not justify continued collection activity,
D. There is significant doubt concerning proof of the entire amount of the debt,
E. Pursuing collection of the debt is not in the best interest of the Service, or
F. Treasury has compromised the balance or portion of the debt.
WRITE-OFFS
2.18 When must the Service write off a debt classified as currently not collectible or closed out? Write-offs are a removal of a debt from FBMS and are classified as either Currently Not Collectible (CNC) or closed out.
A. CNC.
(1) CNC is a mandatory classification of debt delinquent for more than 2 years;
(2) We anticipate material collections will occur after the 2-year delinquency period;
(3) The debt is written off in FBMS and reported on the quarterly Treasury Report on Receivables; and
(4) We maintain the debt for administrative offset and other collection tools, until either:
(a) Debt is paid,
(b) Debt is closed out,
(c) All collection actions are legally precluded, or
(d) Debt is sold.
B. Closed out.
(1) To close a debt out, we must have taken all steps to collect the debt in accordance with 31 U.S.C. 3711(g).
(2) We must determine that the debt:
(a) Is fully compromised or terminated, or
(b) Is classified as CNC and collection activity is terminated.
2.19 Who has the authority to write off a debt?
A. Debts of $100,000 or less. The AD-MA has the authority to determine if the Service may write off a non-employee debt.
B. Debts exceeding $100,000. Justice has the sole authority to write off non-employee debt when it exceeds $100,000, exclusive of interest, penalties, and administrative costs.
2.20 What happens after the Service writes off a debt? Debts that are closed out are deemed as income to the debtor, which is taxable. The Service must report them to the IRS on the IRS Cancellation of Debt form (1099-C).
LITIGATION
2.21 When may the Service refer a debt for litigation? We may refer a debt directly to the Office of the Solicitor when:
A. Litigation may result in full or partial recovery of the amount due,
B. Assets are available to cover the debt,
C. An enforcement issue is involved, or
D. There are other documented reasons.