Accounts Receivable Collections Administrative Rule (Page 6 of 13) in pdf

When a debt is referred to Central Collection Services for collection, the Claimant State Entity shall retain

sufficient documentation to support the account until the debt is paid in full, cancelled, compromised or

released by Central Collection Services. When a debt is compromised or released by Central Collection

Services, CCS shall notify the Field Accounting Services Team to ensure the Office of the State Controller

is aware of the related write-off for financial reporting purposes.

2.70

Reports From Abolished Claimant State Entities

If a Claimant State Entity is abolished or its activities transferred to another agency or department by

legislative action or by an Executive Order, the individual in the Claimant State Entity responsible for

collection of the accounts receivable shall provide records of all outstanding account balances to Central

Collection Services and the transferee entity 30 days prior to the abolishment or transfer of the activity.

3.00

REQUIREMENTS OF CENTRAL COLLECTION SERVICES

When a Participating Entity refers a debt to Central Collection Services for collection, Central Collection

Services shall:

.01

Determine additional procedures to be followed to collect the debt.

.02

Contact the debtor by letter, and at its discretion by telephone, to evaluate the collection potential

considering the financial circumstances of the debtor. The evaluation may require verification with

third parties, such as employers, other creditors, relatives, personal references, or other

agencies, as well as using other resources available to Central Collection Services.

.03

Attempt to negotiate a reasonable payment arrangement with the debtor. If the debtor has the

ability to pay but refuses to do so, the unit shall take whatever legal measures are necessary to

collect the debt. These measures may include:

A. Referral to Private Counsel for civil suit to obtain judgment;

B. Garnishment of wages and/or bank accounts;

C. Filing of a judgment lien on real property; or

D. Levy on an attachable asset;

.04

Submit the account to the Department of Revenue for possible offset of State Tax refunds,

Gaming winnings, or Lottery winnings.

.05

Submit the account to the Vendor Offset program in the Office of the State Controller for possible

offset of Vendor payments.

.06

For those federal, interstate or intrastate offset programs in which Central Collections is a legally

authorized participant, determine whether the debt qualifies for certification and referral to the

federal agency responsible for offset of federal payments and to any other intra or interstate offset

programs legally adopted by Central Collection Services. If the debtor is offset by the federal

agency or other offset partners, and the debtor appeals the offset and the Director of the Division

of Finance and Procurement or the State Controller or Administrative Law Judge, as applicable,

upholds the debtor’s appeal, Central Collection Services will refund the amount of the offset and

any costs associated with the offset, and then cancel from or reduce the subsequent remittance

to the Claimant State Entity by that amount

.07

Report monthly to Participating Entities on all collections received on debts referred to Central

Collection Services.

Accounts Receivable Collections Administrative Rule Page 6

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