Referral of Delinquent Receivables Due from Department of Defense

Date: Tue, 10 Feb 1998 16:00:34 -0500
To: "AO - All Administrative Officers"<distribution>
From: Ruth Hines <rchines>
Subject: Referral of Delinquent Receivables Due from DoD
Cc: "Alice A Sabatini, Administrative Officer, Reston, VA "<aasabati>,
        "Kelly L Bradley, Chief, FORS, Reston, VA "<kbradley>


January 28, 1998

To:		Division Administrative Officers
		Division Finance Officers

From:		Acting Chief, Accounts Receivable Branch, OFM

Subject:	Referral of Delinquent Receivables Due from Department of 	
                Defense

The purpose of this memorandum is to implement the procedure for referring
delinquent debts owed by the Department of Defense (DOD) for additional
collection action.

As of December 1997, the USGS had approximately $13 million in delinquent
debt owed by other Federal agencies, most of which was due from Department
of Defense agencies (DOD).  
Last year, OFM contacted the Defense Finance and Accounting Service (DFAS)
for assistance in collecting delinquent debts owed to the USGS by DOD.  As
a test case, OFM provided DFAS with a sample of 19 seriously delinquent
bills owed by DOD totaling more than $6 million.  To date, only 7 of those
bills remain outstanding and these bills are currently under review by DOD.

In an effort to further reduce our delinquencies, DFAS has agreed to accept
referral of additional delinquent bills owed by DOD.  Effective
immediately, OFM will begin referring these bills to DFAS for additional
collection action. The following procedure is hereby implemented for
referring debts to DFAS:

  1.	To be eligible for referral, bills issued to DOD must total more than
$150 and be more than 180 days delinquent.

  2.	Divisions need to identify bills issued to DOD which are eligible for
referral and determine which of  those bills require additional collection
action.  In order to refer these debts, Divisions must provide a memorandum
to OFM requesting referral.  The memorandum must include 1) a copy of the
bill, and 2) a copy of the Military Interdepartmental Purchase Request
(MIPR) or other agreement form signed by DOD, or product order form
submitted by DOD.

  3.	OFM will forward referrals to DFAS and update the OSCT code on the
account receivable record in FFS.  

  4.	Bills disputed by DOD will be returned to the Division by OFM for
resolution.

If there are questions regarding DOD referrals, please contact Diane Keatts
on x7632, or Email address dkeatts@usgs.gov.