ADS 625 – Administrative Accounts Receivable

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  • ADS Chapter 625

    Accounts Receivable and Debt Collection

    Document Quality Check Date: 03/07/2013 Partial Revision Date: 12/30/2011 Responsible Office: M/CFO/FPS File Name: 625_030713

  • 12/30/2011 Partial Revision

    Text highlighted in yellow indicates that the adjacent material is new or substantively revised..

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    ADS Chapter 625

    Functional Series 600 Budget and Finance ADS 625 Accounts Receivable and Debt Collection POC for ADS 625: Pat Wexel, (202) 567-5252, pwexel@usaid.gov

    Table of Contents

    625.1 OVERVIEW .............................................................................. 4

    625.2 PRIMARY RESPONSIBILITIES ............................................... 4

    625.3 POLICY DIRECTIVES AND REQUIRED PROCEDURES ........ 8 625.3.1 Financial Documentation Responsibilities ............................................ 8 625.3.2 Debt Collection ........................................................................................ 8 625.3.2.1 General Debt Collection Requirements...................................................... 8 625.3.2.2 Federal Claims Collection Standards (FCCS) .......................................... 10 625.3.3 Receivables ............................................................................................ 10 625.3.3.1 Recognition of Receivables ..................................................................... 11 625.3.3.2 Billing Activity ........................................................................................... 12 625.3.3.3 Electronic Paper Check Conversion ........................................................ 13 625.3.3.4 Statute of Limitation for Claims ................................................................ 14 625.3.4 Classification of Claims ........................................................................ 15 625.3.4.1 Claims Originating Under Acquisition and Assistance Instruments .......... 15 625.3.4.2 Claims Originating Under Financial Audit ................................................ 16 625.3.4.3 Training for Development Non Returnees Claims ................................. 17 625.3.4.4 Title II Claims ........................................................................................... 18 625.3.4.5 Employee Claims ..................................................................................... 18 625.3.4.6 Informal Billing Procedures ...................................................................... 21 625.3.4.7 Claims Involving Criminal Activities or Misconduct .................................. 22 625.3.4.8 Claim Satisfaction .................................................................................... 22 625.3.4.9 Handling Disputes for All Claims Other Than Claims Arising Under

    Acquisition and Assistance Instruments and Employee Claims ............... 23 625.3.4.10 Charges for Late Payments, Interest, Penalty, and Administrative Cost .. 24 625.3.4.11 Recognition of Delinquent Receivables and Losses due to Uncollectible

    Amounts ................................................................................................... 25 625.3.5 Status of Claims and Receivables ........................................................ 26 625.3.5.1 Compromise, Suspension, or Termination of Collection, Write-off, and

    Discharge and Close-out of Debt ............................................................. 26 625.3.5.2 Debtor Bankruptcy Protection .................................................................. 30

    mailto:pwexel@usaid.gov

  • 12/30/2011 Partial Revision

    Text highlighted in yellow indicates that the adjacent material is new or substantively revised..

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    ADS Chapter 625

    625.3.6 Billing Office Records ........................................................................... 31 625.3.6.1 Debt Administrative File ........................................................................... 32 625.3.6.2 Debt Administrative File for Mission Transfer of Debts to M/CFO/WFS ... 32 625.3.7 Separate Reporting of Receivables ...................................................... 33 625.3.8 Receivables ............................................................................................ 34 625.3.8.1 Reconciliation and Reporting ................................................................... 34 625.3.9 Automatic Transfer to Treasury for Continued Collection ................. 35 625.3.9.1 Treasury Debt Collection Services ........................................................... 35 625.3.9.2 Eligible Debt for Transferring to Treasury ................................................ 37 625.3.10 Subsequent Demands for Payment Non-TIN Debts ......................... 38 625.3.11 Installment Payments ............................................................................ 38 625.3.12 Referrals to the Department of Justice ................................................ 39

    625.4 MANDATORY REFERENCES ............................................... 39 625.4.1 External Mandatory References ........................................................... 39 625.4.2 Internal Mandatory References ............................................................ 40 625.4.3 Mandatory Forms ................................................................................... 40

    625.5 ADDITIONAL HELP ............................................................... 40 625.5.1 Optional Forms ...................................................................................... 41

    625.6 DEFINITIONS ......................................................................... 41

  • 12/30/2011 Partial Revision

    Text highlighted in yellow indicates that the adjacent material is new or substantively revised. 4

    ADS Chapter 625

    ADS 625 Accounts Receivable and Debt Collection (Non-Loans) 625.1 OVERVIEW

    Effective Date: 09/09/2008

    This ADS chapter describes the Agencys policy directives and required procedures under title 31 United States Code authorities. The standards and guidelines are in the administrative regulations of 22 CFR 213. Additional requirements are located in the United States Department of the Treasurys (Treasury) standards to effectively manage agency accounts receivable debts, exclusive of loan and loan guarantees. ADS Chapter 625 discusses commercial and employee debts owed to the Agency. For administration of USAID credit programs, see ADS 623, Financial Management of Credit Programs. The material in this chapter includes

    Debt determinations;

    Recognition of debts;

    Proper billing methods, termination, suspension, and write-off of uncollectible accounts; and

    Routine servicing of the Agencys accounts receivables. This service includes information on recording the debt in the Agencys accounts, estimating bad debts, and external reporting of the Agencys accounts receivable.

    The principles described in this chapter are in accordance with all applicable statutory authorities under the law (see 31 U.S.C 3701), U.S. Treasury standards (see Managing Federal Receivables), and Agency administrative regulations (see 22 CFR 213). The three principle authorities USAID adheres to for USAID policy directives and the collection of debts owed to the Agency are the Debt Collection Improvement Act of 1996 (DCIA), Federal Claims Collection Standards (FCCS), and 22 CFR 213 . The U.S. Treasurys document, Managing Federal Receivables, is used as a continual reference throughout this chapter, when applicable to USAID, as implementing guidance. 625.2 PRIMARY RESPONSIBILITIES Effective Date: 09/09/2008 a. The Chief Financial Officer (CFO)

    Develops, issues, and implements the Agencys policy directives and required procedures for managing Accounts Receivables. The policy directives for managing accounts receivable are in conformance with applicable statutes under title 31 U.S.C., administrative regulations under title 22 of the Code of Federal Regulations, and United States Department of the Treasury (Treasury) policy standards and principals for non-Federal debts.

    http://www.gpo.gov/fdsys/pkg/CFR-2011-title22-vol1/pdf/CFR-2011-title22-vol1-part213.pdfhttp://www.usaid.gov/ads/policy/600/623http://uscode.house.gov/view.xhtml?req=(title:31%20section:3701%20edition:prelim)%20OR%20(granuleid:USC-prelim-title31-section3701)&f=treesort&edition=prelim&num=0&jumpTo=truehttp://www.fms.treas.gov/debt/Guidance_MFR.htmlhttp://www.fms.treas.gov/debt/Guidance_MFR.htmlhttp://www.gpo.gov/fdsys/pkg/CFR-2011-title22-vol1/pdf/CFR-2011-title22-vol1-part213.pdfhttp://www.dol.gov/ocfo/media/regs/DCIA.pdfhttp://www.dol.gov/ocfo/media/regs/DCIA.pdfhttps://www.federalregister.gov/articles/2000/11/22/00-29284/federal-claims-collection-standardshttp://www.gpo.gov/fdsys/pkg/CFR-2011-title22-vol1/pdf/CFR-2011-title22-vol1-part213.pdf

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    ADS Chapter 625

    Is the final appeals authority for employee waiver requests for overpayments of salary and benefits.

    Determines the enforceability of collection actions on all debts owed to the Agency and writes off accounts determined to be uncollectible.

    b. The Chief, Office of the Chief Financial Officer, Washington Financial Services (M/CFO/WFS)

    Manages USAID/Washington (USAID/W) billing functions and activities, oversees the establishment and maintenance of accounting procedures, and controls related