United States DEPARTMENT of Commerce

F i n a n c i a l M a n a g e m e n t a n d A n a l y s i s
t O t a l d e l i n q U e n c i e s a s a P e R c e n t a g e
O F g R O s s R e c e i V a b l e s
50
40
PERCENTAGE
30
20
35.0
31.7
10
0
FY 2003
FY 2004
15.0
FY 2005
9.9
FY 2006
8.9
FY 2007
The Debt Collection Improvement Act of 1996 established the Treasury Department as the collection agency for eligible federal
agency debts that are more than 180 days delinquent. It also established Treasury’s Financial Management Service as the federal
government’s debt collection center. Over $15 million in delinquent debt has been referred to Treasury for cross-servicing since
FY 2002. Currently, over 83 percent of the Department’s overall delinquent debt that has not been referred to Treasury is in litigation
with the Department of Justice for enforced collection.
During During FY 2001, the issuance of the revised Federal Claims Collection Standards and the revised OMB Circular A-129, Policies
for Federal Credit Programs and Non-Tax Receivables, provided agencies greater latitude to maximize the effectiveness of federal debt
collection procedures. Since then, the Department has utilized all the tools available to improve the management of its debt.
Electronic Funds Transfer (EFT)
P A Y M E N T P R A C T I C E S
The Debt Collection Improvement Act of 1996 requires the use of EFT for most federal payments, with the exception of tax refunds.
The Department closely monitors its monthly EFT performance, and submits consolidated monthly EFT activity reports to OMB, as part
of the Department’s Performance Metrics data.
The Department’s vendor EFT percentage increased from 96 percent for FY 2006 to 97 percent for FY 2007. The Department
accomplished this, in large part, by working closely with its bureaus to identify opportunities for new or improved business processes.
This improved performance allowed the Department in FY 2007, on average, to meet OMB’s vendor EFT performance goal of 96
percent. The Department’s overall EFT percentage also increased, from 98 percent for FY 2006 to 99 percent for FY 2007. The
Department believes its continued efforts to implement new or improved business processes will lead to further increases in vendor
and overall EFT percentages.
F Y 2 0 0 7 P E R F O R M A N C E A N D A C C O U N T A B I L I T Y R E P O R T
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