Accounts Receivable Collections Administrative Rule (Page 13 of 13) in pdf

.03

For compromises that reduce an account balance by more than $2,500, approval for compromise

shall be obtained in writing from the State Controller and the State Treasurer. The request for

approval shall be prepared by the Central Collection Services Administrator and shall document a

recommendation and approval for compromise by the Claimant State Entity; the components of

the current balance; the collection efforts and results to date; the financial status of the debtor; an

assessment of collectability including viability of offset procedures; and any other information

useful in determining the probability of future collections and the cost of future collections as

compared to the likely amount of collection.

.04

Compromises approved by the Central Collection Services Administrator, the Director of the

Division of Finance and Procurement, or the State Controller and State Treasurer affect the

debtor’s obligation only for the amount compromised; the remaining balance of the account shall

be due for immediate collection or for scheduled payments as negotiated. The debtor’s failure to

make immediate or scheduled payments shall result in the re-instatement of the compromised

balance and the debtor shall be liable for the account balance prior to the compromise less any

payments made since the compromise plus interest as allowed by the account type.

4.40

Release and Compromise Reporting

The Director of the Division of Finance and Procurement shall report quarterly to the State Controller, the

State Treasurer, and the Controller or highest financial officer of the Claimant State Agency the number

and the amount of accounts receivable released or compromised by the Central Collection Services

Administrator and by the Director of the Division of Finance and Procurement. The State Controller and

the State Treasurer shall review the reports to monitor compliance with the delegations to the Central

Collection Services Administrator and the Director of the Division of Finance and Procurement.

5.00

CHARGES

5.10

Interest and Cost of Collection

Interest may be charged and costs of collection shall be added, including allowable administrative costs

and attorney fees, to all debts due to Claimant State Entities as required or permitted by law or

agreement with the debtor, including but not limited to 5-12-102, C.R.S.

5.20

Charges to Participating Entities for Collection Services

Central Collection Services shall add the estimated cost of collection to each account assigned as

authorized by 24-30-202.4 C.R.S.

6.00

DISTRIBUTION OF RECOVERIES

All amounts collected by Central Collection Services shall be disbursed to the Participating Entities, net of

collection costs and Private Counsel fees in accordance with State statute and as defined by contract with

Private Counsel or as awarded by the court.

7.00

ADMINISTRATIVE HARDSHIP

If the provisions of this rule create an undue administrative or financial hardship on any Claimant State

Entity, a written request for exemption and/or alternative treatment shall be submitted by the Claimant

State Entity's Chief Fiscal Officer through the Claimant State Entity's Chief Executive Officer to the

Executive Director of the Department of Personnel & Administration .

Accounts Receivable Collections Administrative Rule Page 13

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