BOP Program Statement 8531.12 § 23

CAR or designee is responsible for assessing interest and

penalties for all delinquent debt as outlined in this section.

However, the Chief, CAR may waive interest and penalties, if

payment of the debt’s principal amount will be received. This

action must be documented in Millennium with other pertinent

collection details.

! Interest. Interest will accrue and will be recorded on a

monthly basis for all non federal debt beginning on the date

the initial demand letter was mailed to the debtor, until

the debt is collected or discharged. The interest rate used

will be the Current Value of Funds Rate (CVFR) published by

Treasury in effect on the date the interest begins to

accrue. The rate initially assessed for the debt will

remain fixed for the duration of the debt. However,

interest will not be charged if the amount due is paid

within 30 days after the date that interest has accrued.

The amounts accrued monthly will be recorded as a debit to

G/L Account 131500, Public Billings (reference invoice

number on customer account) and a credit to G/L Account

530010, Interest Income.

! Penalties. A penalty will be assessed annually for failure

to pay a part of the amount due that is more than 90 days

past due from the date of the initial demand letter. The

penalty at a rate 6% or the rated authorized by Treasury

will be assessed until the debt is collected in full or

discharged. Interest and penalties will never accrue on

interest or penalty charges.