Agency Responsibilities

To assist in managing their delinquent debts, protect the Government's assets, minimize losses, and comply with the Debt Collection Improvement Act (DCIA) and OMB Office of Management and Budget Circular No. A-129, Agencies can access the following reports in Insight to monitor their outstanding debts:

• Listing of Outstanding Receivables
• Detailed Listing of Delinquent Receivables

Each account may have one of the following status codes applied to assist in determining what type of action is required:

• Hold (HO) - This code identifies a delinquent debt that has been placed on hold per your Agency's instruction. A hold status can be placed on the account to suspend collections for 2 pay periods.

  Note: If more than 2 pay periods are required to thoroughly research the account, an additional 2-pay-period hold (a second hold) may be requested from a higher level of authority within your Agency.

• Second Hold (SH) - This code identifies a debt that has been placed on hold for a second time, as per your Agency's instruction.
• Waiver (WA) - This code identifies that a waiver has been applied; however, approving documentation is still pending.
• Cancellation (CA) - This code identifies that a cancellation has been applied; however, additional processing and/or documentation may be required.
• Hearing (HR) - This code identifies that a debtor has received a hearing and is either waiting on a hearing date or a judgment decision.

  Note: Agencies are reminded that interest and penalties still accrue on bills established in ABCO while in a Hold status. Interest and penalties may be canceled or adjusted once a cancellation or waiver has been approved by an authorized Agency contact and submitted to the NFC Contact Center (NCC).

The Agency's authorized representative must take appropriate action as needed on the scenarios identified below.

• Non-pay Status or Separation - Timely process a T&A Time and Attendance placing the employee in non-pay status (e.g., LWOP leave without pay, AWOL absence without leave, or Suspension) or an NOAC for LWOP leave without pay, AWOL absence without leave, suspension or separation from the Agency or Federal service. Late processing of an NOAC Nature of Action Code may require an adjustment by NFC National Finance Center. In addition, processing a late NOAC delays the billing process.
• Suspension of Collection - Agencies will no longer be allowed to extend holds without restrictions, as this results in multiple suspensions of debt collection activity for excessive periods of time.
  • Hold Requests - Agencies can request that the debt be placed on hold for 2 pay periods. A second request can be made from a higher authority to place the debt on hold for an additional 2 pay periods. After a debt has been on hold for a total of 4 pay periods, salary offset will begin on the debt. NFC National Finance Center will not refund any money collected as a result of the Agency's failure to timely submit a hold request.
  • All suspension of collection requests (holds, waivers, cancellations, employee applied for a hearing) must be received by NCC no later than 2:00 p.m. central time on the first Wednesday before the first Thursday and Friday that the Payroll Computation System (PAYE) processes. Refer to the Payroll/Personnel Processing Cycle Chart that illustrates the daily processing of payroll/personnel transactions. Refer to the Form AD-3041, ADJP Waiver/Cancellation Request, below for additional information.

    Note: Due to holiday schedules or unforeseen circumstances processing the first pass of PAYE Payroll Computation System could be changed.

  • Waiver/Hearing Requests - If NFC National Finance Center receives a request to waive a debt or information is received that states that the debtor has requested a hearing regarding the debt, an additional 15 pay period suspension of collections can be requested by the Agency. Prior to the 15 pay period hold, the employee is also afforded the right to have the debt placed on hold for 2 pay periods; furthermore, a second hold can be requested providing an additional 2 pay period hold. This equates to a total suspension of collection for 19 pay periods, equating to 38 weeks or 9 1/2 months. This provides adequate time for a final decision to be made in reference to waiving a debt. After 9 1/2 months, if a decision has not been made in reference to waiving a debt, collection procedures will commence. When and if a decision is made to waive the debt, all collections received by NFC will be refunded to the debtor. To avoid additional charges to the Agency and to conform with the DCIA, please note that any money collected prior to the waiver request will not be refunded until a final decision has been determined regarding the debt. Refer to the Form AD-3041, ADJP Waiver/Cancellation Request, topic for additional information.
• Hardship Requests - It is the Agency's responsibility to review and approve requests for a reduced amount of collection due to a financial hardship.

  Note: As per the Agency's request, NFC National Finance Center will reduce the collection amount. However, the minimum amount allowed to be processed is $50 per pay period, or if separated, $100 a month. If the hardship request is dated prior to the first Thursday that the PAYE Payroll Computation System processes and is received after collection procedures have commenced, NFC National Finance Center will honor the late request and adjust the garnishment amount for collections subsequent to the receipt of the hardship request. However, any collections received by NFC National Finance Center prior to the hardship request, including payroll garnishments, will not be refunded.

Form AD-3041, ADJP Waiver/Cancellation Request

Form AD-3041, ADJP Waiver/Cancellation Request - This form is to be used by Agencies to submit a request to waive or cancel a salary-related debt. To access Form AD-3041, select the HR and Payroll Clients from the MyNFC drop-down menu on the NFC Home Page. At the HR and Payroll Clients page select the Publications tab and from there select AD Forms from the Forms Library category. Then select AD-3041 from the list. Submit the completed Form AD-3041 to NFC National Finance Center using one of the following methods:

• Enter into CSP.
• Call the NCC at 855-632-4468.
• Mail to NFC National Finance Center at the following address:

  USDA United States Department of Agriculture/OCFO Office of the Chief Financial Officer/NFC National Finance Center/GESD Government Employees Services Division/GICD Government Employees Services Division/DMSB Government Employees Services Division
  P.O. Box 61765
  New Orleans, LA 70161

It is the Agency's responsibility to ensure that all required information on the form is completed. Incomplete forms will not be processed and will be returned to the Agency.

Note: The authorized official, that signs the Form AD-3041, must be established in TMGT Table Management System, Table 063.