DEBT MANAGEMENT PROGRESS

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• DEBT MANAGEMENT PROGRESS
• USDA Financial Management
• Training

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DEBT PORTFOLIO

• 101 billion in direct loan and administrative
  debt
• 30 billion in credit guarantees
• 32 of the debt owed the Federal Government
• 6.6 billion delinquent debt

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ACCOMPLISHMENTS

• In FY 2003, 1.1 billion of delinquent debt was
  collected
• 342 million was by Treasury Offset Program (TOP)
  and other Debt Collection Improvement Act (DCIA)
  techniques
• 441 increase in DCIA tools collection since 1996
  
• 98 of 1.7 billion eligible delinquent debt was
  referred to TOP
• 97 of the eligible delinquent debt was referred
  to the Treasury Cross Servicing Program

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INITIATIVES

• Automated administrative referrals for TOP, Cross
  Servicing, and Credit Bureaus
• Debt Check using TOP database for barring
  delinquent debtors
• Proposed Rule for 7 CFR, Part 3, Debt Management
• Adopt Administrative Wage Garnishment hearing
  procedures
• Update Debt Management regulations

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DCIA ANNUAL REPORT (1/4)

• General Accounting Office (GAO) Report
  (GAO-04-47) Debt Collection Opportunities Exist
  for Improving FMSs Cross-Serving Program. The
  report recommended that OMB
• - remind agencies to comply with write-off and
  close-out standards and policies
• - establish a new reporting requirement in
  which agencies report on internal policies

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DCIA ANNUAL REPORT (2/4)

• Description of agency internal policy on
  compromising, writing-down, forgiving, or
  discharging debt
• Statement on consistency of implementation among
  programs
• Description of deficiencies in policies relating
  to OMB Circular A-129 and the Federal Claims
  Collection Standards

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DCIA ANNUAL REPORT (3/4)

• Status of agencies reporting of eligible
  discharged/close-out debt, to the Internal
  Revenue Service (IRS) on Form 1099-C
• Description of 1099-C deficiencies
• Description of corrective actions taken or to be
  taken with a timeline for completion

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DCIA ANNUAL REPORT (4/4)

• First USDA DCIA Annual Report is due to OMB by
  June 30, 2004
• Subsequent DCIA Annual Reports are due to OMB by
  December 31 annually
• For calendar year 2004, two submissions are due
  to OMB, June 30 and December 31

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CONTACTS

• Dale Theurer, [phone]
• Dale.Theurer_at_usda.gov
• Joyce Baumgartner, [phone]
• Joyce.Baumgartner_at_usda.gov