Provisions Governing Claims of the U.S. Government - Debt Collection Improvement Act of 1996

Compliance

802 - General Compliance Checklist

Description of Law

Yes

Provisions Governing Claims of the U.S. Government,

including the Debt Collection Improvement Act of 1996

(DCIA)

These provisions address the collection of amounts owed to the

federal government. Interest generally accrues from the date

that a notice stating the amount due and the interest policies is

first mailed to the debtor. Interest generally accrues at a rate

established by the Secretary of the Treasury. Administrative

costs and penalties shall also be charged.

The provisions also require the entity to take all appropriate

steps to collect the debt before discharging it and to notify

Treasury about delinquent debt for administrative offset,

collection by a debt collection center, or tax refund offset.

Entities shall also participate in a computer match of delinquent

debt with federal employees, and when collection actions are

terminated, the entity holding delinquent debt shall sell it.

Provisions also require the entity (or entities making loans the

government guarantees) to notify credit-reporting agencies

about delinquent debt and not make or guarantee loans to

persons who owe delinquent debt.

Does the cumulative amount of receivables created during the

audit period that are subject to provisions governing claims of

the U.S. government, including DCIA, exceed planning

materiality; does the amount of receivables at the end of the

audit period that are subject to provisions governing claims of

the U.S. government, including DCIA, exceed planning

materiality; or are provisions governing claims of the U.S.

government, including the DCIA, otherwise considered to be

significant?

____

(OMB audit guidance requires auditors of CFO Act agencies to

test for compliance with this law.)

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August 2002

GAO/PCIE Financial Audit Manual - Part II

Page 802-4