U.S. Department of the Treasury

DATE: January 9, 2014

ADMINISTRATIVE EDIT: December 17, 2019

SUBJECT: Debt Collection Improvement Act of 1996 and Other Receivables Management Authorities

1. PURPOSE. This Directive delegates to the Commissioner of the Bureau of the Fiscal Service certain debt collection authorities under the Debt Collection Improvement Act of 1996 (DCIA) and other receivables management authorities.
2. SCOPE. This Directive applies to the Department of the Treasury’s Bureau of the Fiscal Service (Fiscal Service).
3. BACKGROUND. Fiscal Service is responsible for implementing the debt collection provisions of the DCIA, which centralized the administrative collection of delinquent debt at Treasury. As authorized under the DCIA, 31 U.S.C. 3711(g)(3), the Secretary has designated Fiscal Service as a debt collection center. Also, Fiscal Service is authorized to perform receivables management under 31 U.S.C. 3711(g)(7)(D), which provides that Treasury may contract for identification, billing, or collection services.
4. DELEGATION.
   1. By virtue of the authority granted to the Fiscal Assistant Secretary by Treasury Order 101-05, the Commissioner, the Bureau of the Fiscal Service is delegated certain DCIA authorities to the Specifically, this Directive delegates to the Commissioner the authority:
      1. 1) to take appropriate action to collect or terminate collection actions on debts referred or transferred to Treasury under 31 U.S.C. 3711(g), including the authority to refer debts to debt collection centers, private collection contractors, and the Department of Justice for collection;
      2. 2) to exempt, under 31 U.S.C. 3711(g)(2)(B), any class of debt or claim from the requirements to transfer delinquent debts to the Secretary of the Treasury for the purpose of collection as required by 31 U.S.C. 3711(g)(1);
      3. 3) to exempt, under 31 U.S.C. 3716(c)(3)(B), payments from administrative offset under 31 U.S.C. 3716(c);
      4. 4) to exempt any class of debt or claim from affecting a debtor’s eligibility for federal financial assistance under 31 U.S.C. 3720B;
      5. 5) to implement the offset provisions contained in 31 U.S.C. 3716 and 31 U.S.C. 3720A, including Treasury’s authority to charge fees and to establish operating procedures;
      6. 6) to enter into reciprocal agreements with states in accordance with 31 U.S.C. 3716(h);
      7. 7) to establish and maintain an interagency consortium for centralized salary offset computer matching services, as 5 U.S.C. 5514 requires;
      8. 8) to waive, as authorized by 31 U.S.C. 3716(f), the requirements of 5 U.S.C. 552a(o) and (p) for administrative offset or claims collection upon written certification by the head of an agency or state seeking to collect a claim that the requirements of 31 U.S.C. 3716(a) have been met; and
      9. 9) to designate debt collection centers under 31 U.S.C. 3711(g)(3).
   2. The Fiscal Service Commissioner shall be responsible for referring to the Fiscal Assistant Secretary any matters on which action should be appropriately taken by the Fiscal Assistant Secretary. The Fiscal Assistant Secretary reserves the authority to determine when the sale of debts is in the best interests of the Government under 31 U.S.C. 3711(i), and to issue reports to Congress under 31 U.S.C. 3719 and 31 U.S.C. 3716(c)(3)(B).
5. REDELEGATION. The Fiscal Service Commissioner may redelegate only the authorities described in paragraphs 4.a.(1), 4.a.(5), 4.a.(6), 4.a.(7), and 4.a.(8) of this Directive to officials within the Fiscal Service, which authorities may be exercised in the individual capacity and under the individual title of each official receiving such authority.
6. AUTHORITIES.
   1. Debt Collection Improvement Act of 1996, Pub. L. No. 104-134, § 31001.
   2. Treasury Order 101-05, “Reporting Relationships and Supervision of Officials, Offices and Bureaus, and Delegation of Certain Authority and Order of Succession in the Department of the Treasury,” dated January 10, 2011.
7. REFERENCE. Treasury Directive 25-06, “The Treasury Data Integrity Board,” regarding the responsibility of the Treasury Data Integrity Board for oversight and coordination of computer matching programs.
8. CANCELLATION. Treasury Directive 16-14, “Debt Collection Improvement Act of 1996,” dated June 4, 2008, is superseded.
9. OFFICES OF PRIMARY INTEREST. Office of the Fiscal Assistant Secretary and Office of the Commissioner of the Bureau of the Fiscal Service.