CMS Pub. 100-06, ch. 4, § 70.14

70.14.1 – Background (Rev. 11787; Issued:01-

19-23; Effective: 04-21-23; Implementation:04-21-23)

Collection reports from the Department of the Treasury (Treasury) as a result of cross servicing efforts are

received by CMS central office (CO) through the Intra-governmental Payment and Collection (IPAC)

system multiple times per month. Collections may be received as a result of collection efforts by

Treasury’s Servicing Center or by a Treasury contracted Private Collection Agency (PCA) including

installment payments on Treasury approved extended repayment schedules or from offsets from the TOP.

70.14.2 - Intra-governmental Payment and Collection (IPAC) System (Rev. 11787; Issued:01-

19-23; Effective: 04-21-23; Implementation:04-21-23)

The collection report generated from the IPAC system includes a break out of principal and interest

collected on individual debts; however, the report does not show the balance and the status of the debt

after the collection. Treasury calculates interest on a daily basis while CMS calculates interest monthly.

Therefore, the amount of interest collected by Treasury or its PCAs may not equal the amount of interest

shown as accrued by the contractors.

70.14.3 - CMS Debt Management Collections Interface and Report (Rev. 11787;

Issued:01-19-23; Effective: 04-21-23; Implementation:04-21-23)

The CMS Debt Management (CMSDM) Collections Interface reports collections back to HIGLAS on

debts that were referred to Treasury. The contractor shall view its Roundtrip Status Report every Monday

to determine if the CMSDM Treasury Collections Report is available from the Friday HIGLAS cycle.

The contractor shall use the appropriate HIGLAS responsibility to generate the CMSDM Treasury

Collections Report which is the result of processing the interface and is available three times per month.

For each debt listed on the CMSDM Treasury Collections Report, contractors not utilizing HIGLAS shall

apply the collection to principal and interest amounts as indicated. For collection of interest only,

contractors not utilizing HIGLAS shall post the interest as shown on the CMSDM Treasury Collections

Report. An interest adjustment is not required prior to posting the collection. For collection of principal

and interest, contractors not utilizing HIGLAS shall manually adjust the amount of interest accrued in its

internal system to the amount of interest collected as listed on the CMSDM Treasury Collections Report.

This will make the amount of the accrued interest equal to the amount of interest collected which is listed

on the CMSDM Treasury Collections Report. Contractors not utilizing HIGLAS shall then post the

collection. Interest shall continue to accrue on the remaining principal balance. Contractors not utilizing

HIGLAS shall use the current date as the date of collection to post the Treasury collections to their

systems. Contractors not utilizing HIGLAS shall complete and return to CMS the CMSDM Treasury

Collections Report within 15 business days of receipt.

Contractors utilizing HIGLAS shall complete/update their adjustments/refunds within 15 business days of

receipt of the CMSDM Treasury Collections Report. CMS shall run a CMSDM Treasury Collections

Report on day 16 to determine if there are any unapplied debts. If there are any unapplied debts CMS

shall create a report listing those debts and send to the MAC via email. The contractor shall take

immediate corrective action and send an Excel spreadsheet back to CMS showing the updates. If a refund

is not resolved, the contractor shall have an additional 15 business days to resolve the refund.

70.14.4 - Reserved for Future Use

70.14.5 - Reserved for Future Use

70.14.6 - Reserved for Future Use

70.14.7 - Excess Collections (Rev. 11787; Issued:01-

19-23; Effective: 04-21-23; Implementation:04-21-23)

Amounts collected may exceed the amount of the debt that was referred for cross servicing/TOP. As an

example, an excess collection may result from Treasury and its PCAs receiving a collection and

contractors recouping the same debt by internal withhold.

70.14.8 - Applying Excess Collections (Rev. 11787; Issued:01-

19-23; Effective: 04-21-23; Implementation:04-21-23)

Contractors shall apply the excess collection to the debt listed on the CMSDM Collection Report in order

to bring the balance to zero. Contractors shall then determine if the debtor has any other outstanding

debts including interest to which the excess collection may be applied.

70.14.8.1 - If the Debtor Has Other Outstanding Debt (Rev. 11787; Issued:01-

19-23; Effective: 04-21-23; Implementation:04-21-23)

If the debtor has other outstanding debt, the excess collection shall then be applied to the oldest debt first

(then next oldest), in accordance with established procedures for applying excess collections against a

debtor’s overpayments. The breakout of principal and interest on the CMSDM Treasury Collections

Report does not apply when the excess collection is applied to another outstanding debt.

70.14.8.2 - If the Debtor Has No Other Outstanding Debt (Rev. 11787; Issued:01-

19-23; Effective: 04-21-23; Implementation:04-21-23)

If there are no other outstanding debts, the excess portion of the collection, after bringing the debt listed

on the spreadsheet to a zero balance, shall be refunded. The amount of the refund shall be annotated on

the CMSDM Treasury Collections Report. The contractor shall process the refund within 15 business

days. A copy of the report, with the appropriate annotations regarding the refund, shall be kept in the

debtor file for audit trail purposes. The contractor shall make appropriate adjustments in HIGLAS or its

internal systems, for contractors not utilizing HIGLAS, to reflect the refund activity.