Treasury Reporting: Reason Status Codes
Reason Status codes assist with the preparation of the TROR. Reason Status codes indicate the state of the debt th... [Show More] roughout the debt lifecycle and assist the accounting system with determining how to categorize the debt.
Changes in the reason status code occur through business events or are manually entered into the accounting system. These changes also occur via interfaces from entitlement and revenue systems
When is interest applied?
Interest is applied 30 days after the debit notice due date (i.e., day 31). Additional interest will accrue for each 30 day period until payment is received. The interest calculation program is automatically executed on a daily basis, but only updates the account every 30 days. In the process of fully collecting a debt that includes principal, interest, fees, and penalties the remittances received are first applied to reduce penalties, fees, interest, and then principal.
How is interest applied?
The Run Interest Calculation Program is run automatically. It can be manually run by the Debt Management Processor if needed. Interest accrues continually until the debt is collected or written off.
Who determines the applied interest amount?
The U.S. Treasury requires the Current Value of Funds Rate (CVFR) to be used as the interest rate. When the debt record is created the interest rate (%) is assigned to the accounts receivables record. The rate is fixed for the life of the debt.
CVFR
Current Value of Funds
Fees
are assessed to cover the additional costs incurred in handling a debt beyond the date on which payment was due. They are applied only if payment is not made by the due date specified on the billing form and / or demand letter. The DoD components calculate fees based upon actual costs incurred. If the actual cost is not available, fees may be determined by historical costs or by the cost analysis method that supports determination of the charge.
Penalties
are charges on delinquent debt to discourage delinquencies and encourage early payment of the debt in full. The rate to be assessed is set by law at more than six percent per year and is assessed on the portion of a debt remaining delinquent for more than 90 days. The charges will accrue and be assessed from the date of delinquency.
Who processes installment plans and when?
If a debtor requests an installment plan and Defense Finance and Accounting Services (DFAS) receives the request before or by the due date, the required documents are evaluated to determine whether the customer meets the requirements for an installment plan.
The Debt Management Processor receives the installment plan decision and if the installment plan request is approved, enters the required information in GFEBS
Installment plans guidelines
First, installment guidelines include documentation from the debtor that he / she is financially unable to pay in a lump sum.
Second, installment plans require monthly payments with an overall repayment period not to exceed 3 years, unless an exception is granted.
Last, installment payments should be at least $50 each month.
True or false: Government employees are subject to interest, fee, and penalty charges assessed on debt to the government that are overdue.
True
The interest calculation program run every day and updates each amount every ______
30 Days
Four of the more commonly used reports are:
Customer Open Item Analysis by Balance of Overdue Items, Customer Line item Display, Customer Account Analysis, and the Due Date Analysis for Open Items.
Customer Open Item Analysis by Balance of Overdue Items (S_ ALR_ 87012178)
This report is used to display customer open items by user-defined aging categories (e.g; every 20 days, 30 days days, etc.). Selections and filtering capabilities can be made for multiple customers. Items can also be summed at various levels. This aging report can be used to determine receivables that are eligible for write-off and to validate that the required debt fees have been applied to delinquent receivables.
Customer Line Item Display Transaction Code
FBL5N
Customer Line Item Display (FBL5N)
This report lists customer line items. Items can be displayed for more than one customer by selection by open, cleared, or all items. Details can be displayed for specific line items using drill down capabilities. Users have the ability to create user-defined report layouts for future use. Fields can be sorted and subtotaled at various levels.
Customer Account Analysis Transaction Code
S_ALR_87012169
Due Date Analysis for Open Items Transaction Code
S_ALR_87012168
Due Date Analysis for Open Items (S_ALR_87012168)
This report is used for displaying customer open items in 30 day intervals. Selections can be for multiple customers and can be filtered by various selection criteria
Debtor Notification
Contact with debtor is critical.
Debtor notification in the form of a billing notice and demand letter provides the debtor with notification of the debt existence and with information on how to repay the debt. Debtor notification is required by law.
Remit to Instructions:
A debtor must have clear instructions on how and where to send payment. Processing a debtor's payment (e.g., personal check) on a collection voucher without knowing the debt reference number could result in delays in posting the collections. Remit TO instructions could change during the lifecycle of the debt (e.g., within the first 90 days, mail to a GFEBS address; after 90 days, remit to a U. S. Treasury address). If the debtor does not know who or where to pay, GFEBS will most likely not collect the accounts receivables in a timely manner
Day 31 deadline
1st billing notice and demand letter
Day 61 deadline
2nd billing notice and demand letter
Day 91 deadline
Debt is Treasury referral eligible
Contact Information
Within the first 30 days, Points of Contact (POCs) will be related to the entitlement or revenue system that generated the debt (e.g., TPOCs debts will have MEDCOM POCs, DTS debts will have the traveler's Debt management monitor role for his / her organization as a POC). After 30 days, the debt will have a GFEBS POC, which is listed on the first demand letter
Salary Offset Information
A debtor or employee must be informed that a salary offset could occur in order to pay a debt. Salary and wage offset is the process of collecting delinquent Federal non-tax debts from a civilian or military employee's current pay without his or her consent
A Debt becomes delinquent when
Payment is not made (i.e., collection posted) by the due date or end of the "grace period."
Payment is not made by the due date specified in the initial debt notice. The date of delinquency for a debt generated in an entitlement or revenue system is based upon the delivery or mailed date of the bill / invoice notice (e.g, a travel debt payment due date: is day 1, with a 30 day "grace period" for interest calculation). [Show Less]
