CMS Pub. 100-06, ch. 7, § 50.11

K – Control

Number

Control Objective – Debt Referral (MSP and Non-MSP)

K.1 Procedures are documented and followed to identify a debt eligible

for referral to Treasury for cross servicing and Treasury Offset

Program (TOP) prior to the debt becoming 120 days delinquent.

These procedures are written and available for review. Debts

eligible for referral and debts ineligible for referral are properly

reported on the appropriate CMS Forms 751, Contractor Financial

Reports, Status of Accounts Receivable, or the Treasury Report on

Receivables and Debt Collection Activities Report. For MSP debt,

see Internet Only Manual (IOM), Pub 100-05, MSP Manual,

Chapter 7, Section 60 and Chapter 4, Debt Collections.

K.2 Intent to Refer Letters (ITRs) for eligible debt are sent in a timely

manner in accordance with CMS instructions. Timeframes for each

type of debt can be found in the IOM, Chapter 4, Debt Collections.

K.3 Responses to the ITR letter are handled timely according to CMS

instructions. Appropriate systems are updated to reflect any changes

to the eligibility status of the debt and these statuses are properly

reported on the financial reporting forms outlined in K.1.

Procedures are in place to handle undeliverable letters. Refer to the

IOM, Chapter 4, Debt Collections.

K.4 All contractors review the system generated HIGLAS CMS Debt

Management (CMSDM) Return to Agency (RTA) report and update

HIGLAS accordingly to ensure appropriate debts are referred to

Treasury as follows:

• CMS contractors who have not transitioned to HIGLAS,

including the Administrative Program Accounting (APA)

line of business, ensure that the HIGLAS Debt Management

Module is updated timely for debt referrals as needed.

• HIGLAS contractors ensure that the HIGLAS AR

transactions are updated timely for debt referrals as needed.

K.5 When there is a change to a debt that has been referred for cross

servicing, CMS contractors who have not transitioned to HIGLAS,

including the APA line of business, update the HIGLAS Debt

Management Module to initiate recalls, collections, and adjustments

timely and accurately in accordance with CMS instructions.

HIGLAS contractors initiate recalls, collections and adjustments

timely and accurately by updating the HIGLAS Accounts

Receivable (AR) transactions as needed.

K – Control

Number

Control Objective – Debt Referral (MSP and Non-MSP)

K.6 All CMS contractors ensure that the CMSDM Treasury Collection

Report Spreadsheets are completed timely in accordance with CMS

instructions, and the appropriate source systems are updated as

follows:

• CMS contractors who have not transitioned to HIGLAS,

including the APA line of business, ensure that the HIGLAS

Debt Management Module is updated timely with

refund/adjustment information as needed.

• HIGLAS contractors, including the APA line of business,

ensure that the HIGLAS AR transactions are updated timely

and accurately with the refund/adjustment information as

needed.

K.7 Treasury Cross-Servicing Dispute Resolution forms are researched,

resolved, and responded to Treasury timely in accordance with

CMS instructions. Procedures are in place and are being followed to

respond to these disputes/inquiries, update the appropriate system,

and properly report the status and balance of the debt in the

financial reporting forms.

K.8 All CMS contractors ensure that the CMSDM RTA report

spreadsheets are completed timely in accordance with CMS

instructions and debts listed on the spreadsheet are properly

reported on the financial reporting forms in accordance with CMS

instructions. CMS contractors who have not transitioned to

HIGLAS, including the APA line of business, follow the RTA

Interface and Report instructions in the HIGLAS Debt Management

Module training guide.

K.9 Contractors ensure that debts have the correct status when the debt

is referred to Treasury and retains this correct status while at

Treasury.

End Section 50.11 – K Controls – Debt Referral (MSP and Non-MSP): Back to Table of

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