CHAPTER 17. FEDERAL ACCOUNTS RECEIVABLE

17.01 GENERAL

This chapter provides the policy for collecting debts owed VA by other Federal agencies. Federal accounts receivable are normally incurred for materials furnished, services rendered, or refunds of amounts erroneously paid by one Federal agency to another.

17.02 PAYMENT DEMANDS

Prompt collection action on a timely basis with effective followup is to be taken for Federal receivables. The first billing to a Federal agency for payment of amounts due VA should be followed up with a second notice 30 days from the date of the initial billing. A third notice is to be sent out 30 days later. Subsequent notices may consist of a copy of the original billing, with the document annotated "SECOND NOTICE," "THIRD NOTICE," etc. In some cases, a dictated letter along with a copy of the billing may be appropriate. A file is to be maintained on each indebtedness which is to include copies of the billing documentation which substantiates the debt, subsequent followup documents, and any correspondence related to the indebtedness. If payment is not received after the third notice, a fourth demand is to be sent to the attention of the delinquent agency's Chief Financial Officer.

17.03 INTEREST AND OTHER COSTS

No other charges, such as interest or administrative collection costs, will be added to the balance due from other Federal agencies.

17.04 SETTLEMENT

Federal receivables cannot be compromised although the amount due VA may be reduced through settlement. The field station director, or designee, may consider the feasibility of settling an indebtedness owed by another Federal agency through negotiation with the debtor agency as to the amount that the debtor agency agrees is due VA. Such settlement of a Federal receivable is not a compromise and will not be recorded as a compromise. Instead, the original billing will be amended to reduce the debt to the corrected amount. Documentation on the settlement will be placed in the indebtedness file. If the claim cannot be resolved by the agencies involved, it will be referred to the GAO (4 CFR 101.3).

17.05 WRITEOFFS

Receivables due VA from other Federal agencies cannot be written off. If a debt is deemed uncollectible because of a lack of valid documentation of the debt, the billing is to be canceled. The decision to cancel a billing to another Federal agency is the responsibility of the field station director or designee. A report of all canceled bills due to lack of documentation is to be sent to VACO (047G7).