BOP Program Statement 2013.04 § 1

This Program Statement prescribes the policies and procedures for Debt Management, including

collecting delinquent debts and writing off uncollectible debts. These guidelines ensure fair but

aggressive collection of all accounts receivables.

One of the first statutes to provide a uniform policy and procedure for debt collection by the

Government was the Federal Claims Collection Act of 1966. Then, in the late 1970’s, increasing

concern was expressed over the growing backlog of unpaid debts owed the Federal Government.

From this concern, the Debt Collection Project was created in August 1979 within the Office of

Management and Budget (OMB). The purpose of the project was for OMB to work with Federal

agencies and departments to establish effective collection procedures, identify Government-wide

problems that impede agency collection efforts, and make recommendations for solving the

problems.

The next legislation passed was the Debt Collection Act of 1982. This act promoted improved

debt collection by expanding the Government’s right to use credit bureau reporting and debt

collection agencies in its collection efforts. The Government Accountability Office (GAO) and

the Department of Justice (DOJ) jointly issued implementing regulations on debt collection as

authorized in the Federal Claims Collection Act of 1966. These joint regulations, designated as

the Federal Claims Collection Standards, can be found in 31 CFR Subtitle B., Chapter IX, Parts

900 - 904. These regulations provide general rules on debt collection for Government agencies.

In 1985, OMB issued Circular A-129 [revised in 2013, see 2000 WL 33969134, entitled

“Policies for Federal Credit Programs and Non-Tax Receivables”], which broadened the

Government’s responsibilities beyond debt collection to include the entire credit management

process. This circular establishes Government policy and the regulatory framework for the

development of specific credit management standards and procedures. The Bureau of Fiscal

Service of the Department of the Treasury has issued several supplements to the Treasury

Financial Manual that expand on the standards and procedures required to manage credit and

debt collection. Examples of these supplements are “Managing Government Credit,”

“Guidelines for the Federal Employee Salary Offset Program,” “Managing Federal Receivables,”

and “Federal Direct Loan Operating Procedures.”

a. Summary of Changes

Policy Rescinded

P2013.02 Financial Management − Debt Management (12/31/2007)

This revision of the Program Statement includes the following changes:

■ Changed all references of Controller to Business Administrator.

■ Changed all references of Warden to Chief Executive Officer or CEO.

■ Removed all FMS references and updated to refer to the Financial System, including

updating the General Ledger account numbers and general processing in the financial system.

■ Changed the number of days for which an Outstanding Travel Advance is considered

delinquent if unpaid from 5 days to 10 working day.

■ Added an employee has the right to appeal any denied compromise of claim to the Debt

Management Officer.

■ Added a section on the Relief of Accountable Officers.

c. Institution Supplement. None required. Should local facilities make any changes outside

the required changes in the national policy or establish any local procedures to implement the

national policy, the local Union may invoke to negotiate procedures or appropriate arrangements.