6509.11h,22-25 Page 1 of 4 FOREST SERVICE HANDBOOK MISSOULA, MONTANA FSH 6509.11h - SERVICE-WIDE CLAIMS MANAGEMENT HANDBOOK Region 1 Supplement No. 6509.11h-93-1 Effective November 3, 1993 POSTING NOTICE: Supplements to this title are numbered consecutively by title and calendar year. Post by document name. Remove entire document and replace with this supplement. Retain this transmittal as the first page of this document. The last supplement to this Title was supplement This is the first R1 supplement to this handbook. Page Code 6509.11k SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK p 72.53 Superseded Sheets 1 Supplements Covered 6509.11k, supplement #12 8/89 Document Name 6509.11h,22-25 (Number of Pages) 3 Digest: 24.3 - Establishes the Administrative Cost rate at $20 for Forest followup billings and at $35 for Dept. of Justice referrals. DAVID F. JOLLY Regional Forester R1 Supplement 6509.11h-93-1 Effective 11/3/93 6509.11h,22-25 Page 2 of 4 FOREST SERVICE HANDBOOK MISSOULA, MONTANA FSH 6509.11h - SERVICE-WIDE CLAIMS MANAGEMENT HANDBOOK R-1 Supplement No. 6509.11h-93-1 Effective November 3, 1993 24.3 - Administrative Costs. The purpose of administrative costs is to charge debtors for the additional costs of followup action on delinquent accounts or debts. They should be assessed whenever a separate followup billing is generated for the purposes of collecting delinquent debts. Do not assess them if no followup billing is generated. Administrative costs are cumulative on successive followup bills. For example, if two followup billings were necessary to collect a debt, then $20 should be assessed for each of the bills for a total of $40. For systems that generate bills on a monthly basis (such as TSA), no separate followup billings are necessary. Hence, no administrative costs should be assessed in these situations. Note, this applies only to administrative costs and any interest should be assessed through the TSA System as provided for in the Timber Sale Contract. 24.31 - Follow-up Billings. The Region 1 administrative cost rate for follow up billings has been established at $20. The rate includes the cost of preparing the followup bill per the attached worksheet (see Exhibit 1). 24.32 - Extraordinary Costs. An additional administrative costs rate of $35 has been established for bills referred the Department of Justice (DOJ). This rate will be used by the Regional Office when it has been determined the billing case file should be referred to the Justice Department for further action. R1 Supplement 6509.11h-93-1 Effective 11/3/93 6509.11h,22-25 Page 3 of 4 24.31 - Exhibit 1 ADMINISTRATIVE COST WORKSHEET To Support Region 1 Administrative Charge As of March, 1993 Forest Costs: Time In Hours Cost Per Hour Total Cost 1. Review of Unpaid Bill and File: GS 9/4 X 110% .20 $16.12 $3.22 2. Calculation of Interest and Penalty: .20 " 3.22 3. Preparation of Revised Bill: .20 " 3.22 4. Preparation of Follow-up Letter: Typing Copying $.75 + Postage .30 .10 - " " 4.84 2.36 .29 5. Other: Coordination .15 " 2.42 6. TOTAL: Forest Follow-up Cost *(Rounded to $20) 1.15 $18.84 Forest Costs to Refer Case to RO: 7. Review of Case File: GS 11/1 X 110% .25 $17.72 $4.43 8. Preparation of Letter Transmitting File: Research Typing Copying $1.00 + Postage .25 .30 .10 " " " 4.43 5.32 2.77 .80 9. TOTAL: Forest cost to refer to RO *(Rounded to $20) .90 $17.75 Regional Office Costs: 10. 11. 12. 13. 14. 15. Review of Case File: GS 12/4 X 110% Determination of collection action: Preparation of file for Collection Agency: Calculation of Interest/Penalty/Admin. Costs: Copying/Postage to Collection Agency:$1.50+1.50 Research/Coordination: .20 .05 .10 .20 $23.36 " " " .10 " TOTAL: RO Cost to Forward to Coll. Agency .65 $5.84 1.17 2.33 4.67 3.00 2.33 $19.34 R1 Supplement 6509.11h-93-1 Effective 11/3/93 6509.11h,22-25 Page 4 of 4 *(Rounded to $20) 24.31 - Exhibit 1, cont'd 16. Referral to the Department of Justice: Discussion with OGC & WO GS 11/5 X 110% Preparing transmittal letter Copying $5.00 + Postage 17. TOTAL: RO costs to Refer to DOJ (Includes items #10, 11 & 16) *(Rounded to $35) .50 .20 .10 1.05 $20.09 " " $10.05 4.02 7.01 3.00 $31.09 * Add other actual costs, if any, such as: 1) Obtaining Credit/Asset Report of debtor, 2) completing Claims Collection Litigation Report, 3) Personal delivery of bill for collection, and round the rate to next higher $5 increment.