6530
Page 1 of 16
FOREST SERVICE MANUAL
DENVER, CO
FSM 6500 - FINANCE AND ACCOUNTING
R2 Supplement No. 6500-92-4
Effective October 1, 1992
POSTING NOTICE. Supplements to this title are numbered consecutively. 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 6500-92-3 to 6520.
Document Name
6530
Superseded New
(Number of Pages)
17
15
Digest:
Reissues in electronic format and makes minor editorial corrections.
ELIZABETH ESTILL
Regional Forester
R2 SUPPLEMENT 6500-92-4
EFFECTIVE 10/1/92
6530
Page 2 of 16
TITLE 6500 - FINANCE AND ACCOUNTING
6530.3 - Policy.
1. Collection in Advance. Maps may be furnished in advance of collections for
mail requests under $25 which did not include the full amount for the maps. (Does
not apply to over-the-counter sales.)
Maps which are furnished in advance of payment shall be accompanied by a
preprinted form showing amount due, and requesting payment and return of a copy
of the form (see exhibit 01). Such amounts due shall be excluded from accounts
receivable and formal billings, Form FS-6500-89, shall not be prepared until
payment is received. Internal controls such as separation of duties, inventory
controls and analysis, followup notices using standard forms, etc., shall be
implemented to reduce potential losses from both nonpayment and fraud. Amounts
remaining unpaid for 60 days after one followup notice shall be removed from the
file and retained for analysis purposes but shall not be considered an uncollectible
billing.
6532.7 - Sale of Maps.
1. Deposit of Proceeds. Proceeds from map sales shall be deposited to
Management Code 897999. The Regional Office shall withdraw the funds at least
annually and/or whenever needed. These funds shall be used to reprint, update and
distribute maps. A portion of these proceeds shall be returned to the units to help
offset distribution costs. No distribution costs shall be returned to units for the
sales of maps at wholesale.
2. Selling Procedures. To maintain proper collection control on receipts, record
the map sales on Form FS-6500-115, Daily Record of Permit Sales (exhibit 02).
Enter each map sale currently as it is sold. Units using a cash register are
permitted to use the cash register tape as documentation in lieu of entering each
map. The amount column shall be totaled and the balance cross-checked to the
total quantity sold times (x) $3 (or price of map) whenever preparing Form FS-650089, Bill for Collection. See exhibit 01 for preparation of Form FS-6500-115. Map
sales can be reported on the same FS-6500-89 transmitting recreation permit sales.
The Collection Officers shall follow the instructions in FSH 6509.14, Section 030,
Item 5, for transmittal of cash and remittances to the District Collection Officer and
Unit Collection Clerk in the Forest Supervisor's Office.
Goods or services valued at less than $25 may be furnished in advance of payment
when it is cost-effective to do so. Mail-in requests for maps are one example where
such a practice would be appropriate. See FSM 2336 for map sales policy.
3. Collection Officer Designation. Employees who sell maps must be
designated as Collection Officers in accordance with FSM 6535. Collections shall be
handled in accordance with FSH 6509.14, Collection Officer Handbook, Sections 030
and 040.
R2 SUPPLEMENT 6500-92-4
EFFECTIVE 10/1/92
6530
Page 3 of 16
4. Collection Officer Files. Each office which handles map sales shall maintain
a file for each Collection Officer containing: (1) Collection Officer letter of
designation; (2) Copies of Form FS-6500-89 (see FSH 6509.14, section 170, item 2)
and related Form FS-6500-115; (3) audit reports, and (4) related correspondence.
Each Forest Supervisor's Office shall maintain a file for each Collection Officer on
the unit containing (1) Collection Officer letter of designation; (2) audit reports; (3)
related correspondence.
5. Audits. Audits of the map sales activity shall be performed within the first
30 days after Collection Officer designation and then annually by December 31.
The auditor shall verify that the collection transmitted equals the sales documented
on For, FS-6500-115.
Use Form FS-6500-116, Recreation Permit Audit Report, section B and C, to
document the audit. The applicable line enumerated on the reverse side of the form
should be reviewed.
6. Administrative Use of Maps. A certain number of maps can continue to be
given free of charge to individuals when in connection with official business or
administrative use. For example, if a map is required as part of a permit, or is
needed by a specific cooperator or to accomplish a given task, the map is an
"administrative" map. Such maps shall be stamped "For Official Use Only - Not For
Sale."
7. Map Inventory Control. Storage areas should be adequately secured to
prevent theft. Forest Map Inventory Control procedures must be established to
provide for the following:
a. Continuous physical inventory of number of maps in stock.
b. Prevent map supplies from becoming depleted beyond Forest's
anticipated future 6-month supply needs.
c. Allow the Forests ample time to submit a letter request to the Regional
Forester indicating the total quantity of maps to be reprinted, including
destinations and quantities. For planning purposes, allow a minimum of
6 months for delivery of reprinted maps following your letter request.
In addition, an annual inventory report shall be completed by December 31 for each
National Forest or Grassland map stocked, based upon maps sold compared to the
maps purchased and current inventories. If significant discrepancies are noted, the
unit map sales program shall be reviewed in depth for any inherent weaknesses or
irregularities. Submit copies to the Public Affairs Office.
See exhibit 03 for a sample inventory record. The use of a separate Administrative
Use Map column depends upon whether a separate batch of maps are stamped
initially for this purpose or whether they are stamped only when an Administrative
Use Map is requested. If they are marked when given out only, then an entry to the
number marked for Official Administrative Purpose block is sufficient.
Auditors shall update the previous December 31 inventory reconciliations made by
a unit as part of the Audit of Map Sales Collections.
R2 SUPPLEMENT 6500-92-4
EFFECTIVE 10/1/92
6530
Page 4 of 16
6530.3 - Exhibit 01
United States Department of Agriculture
Forest Service
P.O. Box 25127
Lakewood, Colorado 80225
1630
Thank you for your request for National Forest Visitor and Wilderness maps.
1. / / Enclosed are the
maps you requested.
2. / / The Forest Visitor and Wilderness maps are sold at a cost of $3.00 per map.
If you will return your request with the correct amount due, we will fill your
order.
3. / / Returned is your
for $
. check, cash
4. / / The total cost of the map(s) you requested is $
. Please return your
request with the correct amount due and we will fill your order.
5. / / The total cost for the
map(s) you requested is $
. We have
enclosed the
map(s) covered by your remittance of $
.
Please resubmit a request for the map(s) not received and send $3.00 for
each map.
6. / / We are out of the
resubmit your request after
map(s) you requested. If you will
days, we will try to fill your order.
7. / / Some/all of the maps you requested are not handled by our Forest/Region.
National Forest (or Region) handles them.
8. / / The enclosed list contains the names and addresses of all the Regional
Offices, and the Forests that have the maps.
9. / / The total cost for
maps you requested is $
. We have enclosed the
maps for a total amount of $
. We are temporarily out of the
maps. They will be mailed to you when the maps are available
unless we receive a written request from you for a refund of $
for the
unavailable maps.
Sincerely,
R2 SUPPLEMENT 6500-92-4
EFFECTIVE 10/1/92
6530
Page 5 of 16
6530.3 - Exhibit 02
USDA-FOREST SERVICE
1. PERMIT NO.
2. PERMIT TITLE
DAILY RECORD OF
(Map Sales)
PERMIT SALES
3. PERMIT
4. COLLECTION OFFICER
(Ref FSH 6509.14)
VALUE
D. Jones
DATE
SERIAL NO. OR
AMOUNT QUANTITY
PERMITS
EXPLANATION
SOLD
ON HAND
4/3/90
4/5/90
2 NF Maps
$6.00
2
1 Wilderness
3.00
1
2 NF & 1 Wilderness
9.00
3
2 Wilderness
6.00
2
4 NF
12.00
4
Total
$35.00
12
Transmittal on FS-6500-89 of 4/5/90
4/8/90
2 NF
$6.00
2
4 Wilderness
12.00
4
3.00
1
4 NF/Wilderness
12.00
4
Total
$33.00
11
4/10/90 1 NF
Transmitted on FS-6500-89 4/10/90
GPO 874-581
FS-6500-115 (9/69)
R2 SUPPLEMENT 6500-92-4
EFFECTIVE 10/1/92
6530
Page 6 of 16
6530.3 - Exhibit 03
MAP INVENTORY RECORD
Inventory
Beginning Inventory
Number received and Date(s)
July 16, 1989
July 28, 1989
Number Transferred to other Units
Number Marked for Official Use
Administrative Purposes
Number Sold
Number of Administrative Use Maps
Given Out
Ending Inventory (Book) on Hand 8/30
Ending Inventory (Physical) on Hand as
of 8/30
# of Maps for Sale
500
Administrative Use Maps
1000
500
100
50
50
300
n/a
n/a
10
1550
40
1545
40
Difference:
(Give a Brief Explanation of Differences)
Prepared by
Name and Title
Date
R2 SUPPLEMENT 6500-92-4
EFFECTIVE 10/1/92
6530
Page 7 of 16
6533.3 - Date Payment is Due. Justifiable examples of Bills for Collection due date
beyond 30 days from the date of issue:
1. Special use permit billings issued more than 30 days before the due date.
2. Billings for grazing may be issued more than 30 days in advance when
necessary because of the volume of bills to be issued. The due date will be five days
before the start of the grazing period the billing covers.
3. Unless otherwise provided by contract provision, timber payments are due
within 15 days after the issuance date. The timber sale contract allows purchasers
15 days to pay the amount due. Timber purchasers make advance deposits or
furnish payment bonds based on the projected value of timber to be cut within 30-60
days. Timber contracting officers shall be notified promptly when a timber payment
becomes past due.
4. The Bill for Collection may be cancelled when, through compromise, the
principal amount is changed in accordance with the delegated authority in FSM
6570.4. When this occurs, the original bill for both principal and all accrued late
changes is cancelled, and a new bill is issued for the compromised amount, with a
due date not more than 30 days from the date of the new billing.
6534 - DELINQUENT DEBTS.
6534.2 - Followup Billings. The Budget and Finance or Resources Sectionhead shall
be responsible for initiating all followup action on delinquent debts. Each Forest
should establish procedures and responsibility for notification and preparation of
the followup billings.
Special Instructions for Selected Types of Billing on Form FS-6500-89, Bill for
Collection.
Include in the initial demand letter the current interest rate that late payments are
subject to and the Forest Service's Policy on charging interest, administrative
charges, and a penalty charge. The exception to this requirement is when special
laws or contractual provisions provide otherwise. See FSH 6509.11k, Sec. 72.22 for
sample initial demand letter.
In Region 2 we shall not follow the delinquent billing issuing date procedure shown
in FSH 6509.11k, sec. 72.22 exhibits, which implies that the previous bill is
cancelled each time a followup bill is issued. For followup billings, the due date for
the original principal and the original Bill for Collection number shall remain the
same. Interest and administrative charges pursuant to followup billings will be
assigned a new bill number, and new issue and due dates. The followup bills shall
reference the original bill number, principal, and purpose.
In accordance with Federal Acquisition Regulations 52.232-17, the interest rate to
be applied to all amounts payable by a contractor to the Government, including
excess reprocurement costs, is the rate established by Treasury in section 12 of the
Contract Disputes Act of 1978 (Prompt Payment Act Interest Rate).
R2 SUPPLEMENT 6500-92-4
EFFECTIVE 10/1/92
6530
Page 8 of 16
All followup billings shall be accompanied by a demand letter. The final followup
billing will include a statement of actions to be taken if payment is not received.
Such actions include: reporting commercial and consumer delinquent debts to
private collection agencies (FSH 6509.11k, sec. 72.42, R2 Supplement), collection by
offset against money due from the Government, and referral to GAO or the
Department of Justice for legal action. See FSH 6509.11k, sec. 72.4 for details.
Interest is assessed on principal only, not on interest, administrative charges and
penalties, except in those cases where a debtor has defaulted on a previous
repayment agreement or a judgment has been obtained. Unless otherwise specified,
interest will be calculated on a simple basis.
1. Resource Violations and Other Billings Due at Time of Issue. The following
section applies to all delinquent debts that have resulted from resource violations
(fire, timber trespass) and other debts that are due at time of Bill for Collection
issue date, that are not covered in items 2 (Special Uses), 3 (Range), and 4 (Timber)
following, and are not affected by other specific law or contract provisions. See FSH
6509.11k, sec. 72.22, for sample followup demand letter.
a. The first followup billing (second billing) shall be sent to the debtor
within 5 days of the original due date and shall include a computation of
the late payment interest charge and administrative charge (FSM
6534.22c, R2 Supp). The interest shall be calculated from the date the
debt was first due. In this case, that is the original issue date through
the issue date of this billing. The new payment due date shall be 30 days
after the first followup issue date.
The reason the first followup billing includes interest is that there is an
assumption that the debt was payable on the issue date. In other words,
this was not an advance billing. Federal Claims Collection Standards, 4
CFR 102.13(g) provides that an Agency shall waive the collection of
interest of debts which are paid within 30 days after the date on which
interest began to accrue. With the exception of advance billings, the
"date on which interest began to accrue" is the Bill for Collection issue
date.
When computing the interest charge, use the higher of the Treasury
current value of funds rate, otherwise known as the "Late Payment
Overdue Debts" column on the WO interest rate notification, or the
Prompt Payment interest rate in effect on the date the notice of the debt
to the debtor (or the date the goods or services are provided, if later),
unless a different rate is required by law or by contractual provision.
Use the Prompt Payment Act interest rate for procurement contract
billings. Assess interest in accordance with section 52.232-17 of the
Federal Acquisition Regulations.
b. The second followup billing (third billing) which shall be sent within 5
days of the first followup due date shall include a new computation of
accrued late payment interest charge and an additional and second
R2 SUPPLEMENT 6500-92-4
EFFECTIVE 10/1/92
6530
Page 9 of 16
administrative charge. Interest shall be calculated from the original
issue date to the date of issue for the second followup billing. The new
payment due date shall be 30 days after the second followup issue date.
c. The third and final followup billing (fourth billing), which shall be sent
within 5 days of the second followup due date, shall include a new
computation of the accrued late payment interest charge and an
additional third administrative charge, and a statement that a penalty
charge (FSM 6534.22b) will be assessed. Interest shall be calculated from
the original issue date to the date of issue for the third followup billing.
The new payment due date shall be 30 days after the third followup issue
date.
If a bad debt remains unpaid, see FSM 6572.4 for further action.
If a payment of the fees is received within 10 days of the due date and prior to any
followup action by the Forest Service, the debt will be considered paid and no
further followup action will be needed.
For certain resource billings such as special uses and certain collection agreements,
the due date shall correspond to the time when the user has been conveyed the
privilege to use the resource. Because 4 CFR 102.13(b) prevents an Agency billing
interest "before a bill is actually owed," and all debtors, except certain timber ones,
are allowed a 30-day grace period from the original due date to pay without being
assessed interest, no interest shall be included on the first followup billing for
special uses, grazing permits, and other similar advance billings.
2. Special Use Permits and Other Advance Billings. Failure to pay fees by the
original due date is cause for terminating the permit or disallowing an activity.
Termination action shall be delayed until the permittee has been given an
opportunity to cure the delinquency (FSM 2715.23).
a. In accordance with FSH 2709.11, section 53-1, clause A-6, the
following procedures apply:
(1) The first followup billing (second billing) shall be issued within 5 days
of the original due date and shall include an administrative charge (FSM
6534.22c, R2 supp). The new payment due date shall be 30 days after the
first followup issue date. Interest will begin to accrue from the date the
debt originally becomes due (FSM 6534.22a and 4 CFR 102.14(b)). The
interest charge, however, will not be shown on the first followup billing.
In accordance with the Debt Collection Act and 4 CFR 102.13(g), interest
shall be waived if the permittee pays the fees within 30 days of the
original due date or when the debt becomes due, whichever is later. The
new due date shall be 30 days after the first followup issue date.
(2) The second followup billing (third billing) shall be issued within 5
days of the first followup due date and include a computation of the
accrued interest charge and additional and second administrative charge.
Interest begins to accrue from the date the billing originally became due
R2 SUPPLEMENT 6500-92-4
EFFECTIVE 10/1/92
6530
Page 10 of 16
through the second followup billing issue date. If more than one permit is
included in the same delinquent billing, apply the interest charge to each
permit. Transmit this billing and the demand letter by certified mail.
(FSM 27156.23a) The new payment due date shall be 30 days after the
second followup billing issue date.
(3) The third followup billing (fourth billing) shall be issued within 5
days of the second followup due date and include a computation of the
accrued interest charge and an additional and third administrative
charge. Interest begins to accrue from the date the billing originally
became due through the third followup billing issue date. If more than
one permit is included in the same delinquent billing, apply the interest
charge to each permit. Transmit this billing by certified letter (FSM
2715.23a). The new payment due date shall be 30 days after the second
followup billing issue date.
(4) If full payment has not been received as specified by the third
followup billing, prepare and transmit the termination letter (FSM
2715.23a).
If the debt remains outstanding for more than 90 days, assess the penalty charge
(FSM 6534.22b).
b. For some special user permits that contain clauses other than the one
provided in FSH 2709.11, section 53-1, clause A-6, the following
procedures apply:
(1) When payment has not been received by the original due date, assess
the late payment service charge to all followup billings in accordance with
the clause in the permit.
(2) Include an administrative charge in the first and all other followup
billings. This charge is in addition to item b(1), above.
(3) If the permit is not terminated and the debt remains outstanding for
more than 90 days, assess the penalty charge (FSM 6534.22b) in addition
to items b(1) and b(2), above.
c. If a special use permit does not contain any late payment clauses,
apply the procedures as discussed in section a, above.
d. When a permittee requests split payments, collect an administrative
charge as part of the first bill to pay in advance for the cost associated
with issuing a second bill. If more than two special use fee bills are
requested, charge the administrative charge on each bill that will be
followed by another bill.
e. Late payment charges can only be waived in accordance with FSM
6570.43, 6572.3, 6572.4 and 4 CFR 102.13. If the delinquent debt does
not fall within these regulations, then charges may not be waived.
R2 SUPPLEMENT 6500-92-4
EFFECTIVE 10/1/92
6530
Page 11 of 16
f. When use of the land was made prior to the issuance of a permit, refer
to FSM 2715.22b for guidance.
g. If the permit is terminated and the debt remains uncollected, see FSH
6509.11k, sec. 72.4, for further direction.
3. Grazing Permits. The following procedures apply to all grazing permits.
The original Bill for Collection shall be due 5 days before the animals are scheduled
to enter the grazing area to allow for confirmation of payment before grazing begins.
a. The first followup billing (second billing) shall be issued within 5 days
of the original due date and shall include an administrative charge (FSM
6534.22c, R2 Supp). The new payment due date shall be 30 days after the
first followup issue date, no grazing may take place until the payment
has been made and confirmed by the Forest Service.
A debt is considered delinquent when it is not paid by the due date on the
Bill for Collection. If the due date is before grazing was scheduled,
interest will be charged from the scheduled entrance date, not the due
date. The delinquent date is NOT necessarily guided by the day grazing
actually took place. This interest charge, however, will not be reflected
on the first followup billing. Transmit this billing by letter (FSM
2231.62). In accordance with Term Grazing Permit for FS-2200-10 clause
number 5, interest will not be charged if the permittee pays the fee
within 30 days after the initial payment due date.
b. The second followup (third billing) shall include a computation of the
late payment interest charge and an additional administrative charge.
Interest shall be calculated from the date the grazing was scheduled to
begin until the date of issue of the second followup billing date. Transmit
this billing by letter (FSM 2231.62). The new payment due date shall be
30 days after the second followup issue date.
c. If full payment has not been received as specified in the second
followup billing, prepare a new bill assessing the excess use rate. Cancel
all previous accrued interest and administrative costs. See FSM 2230.5
and 2238.27.
d. When a permittee requests split payments,m collect an administrative
charge as part of the first bill to pay in advance for the cost associated
with issuing a second bill. If more than two grazing fee bills are
requested, charge an administrative charge on each bill that will be
followed by another bill.
e. If the permit is terminated and the debt remains uncollected, see FSM
6572.4 for further direction.
4. Timber Sale Contracts. For timber contracts, the payment due dates are
based on the contract provisions and the Purchaser's operations. Sometimes the
billings are issued several months in advance of the Purchaser's planned cutting
R2 SUPPLEMENT 6500-92-4
EFFECTIVE 10/1/92
6530
Page 12 of 16
operations and, therefore, do not represent an outstanding debt, where interest is
appropriate. Forest Fiscal Officers must consult with the Contracting Officer or
their representative prior to issuing followup billings for interest and penalties.
The Contracting Officer will also be taking appropriate contractual action to remedy
the situation.
For most timber sales, the first billing is issued manually for the initial deposits
and bonds. Subsequent billings are issued by the automated Timber Sale
Accounting System (ATSA). The ATSA System does not bill for interest and penalty
charges. When payment is not received, manual followup billings shall be processed
by the Forest.
Timber sale contract late payments are handled differently than late payments
governed by the Debt Collection Act and special use and grazing late payment
provisions.
Timber sale contracts have different interest charging provisions based on the date
of the contract. For 2400-3(T) contracts refer to the specific contract provisions.
The following are summaries of the different 2400-6(T) payment provisions that
may be included in a particular timber sale contract:
Provision B4.4 (9/73) - Interest will accrue on the unpaid amount at the rate of 6
percent per annum, compounded monthly, beginning 30 days after the end of the
15-day period allowed for payment and based on the number of days the bill
remains unpaid. Compound interest is the interest resulting from the periodic
addition of simple interest to principal, the new base thus established being the
principal for the computation of interest for the next following period. No
administrative charge allowed.
Provision C4.4 and CT4.4 (2/76) - Interest will accrue on the unpaid amount at
the rate of 6 percent per annum, compounded monthly, beginning 45 days after
the initial billing date and based on the number of days the bill remains unpaid.
No administrative charge allowed.
Provision C4.4 and CT4.4 (3/80) - Interest shall accrue on the unpaid amount at
the rate of three-fourths of 1 percent per month (9 percent per annum). Interest
accrual will begin on the first day following the end of the 15-day period allowed
for payment and will end on the date payment is received, and will be calculated
on a daily basis. No administrative charge allowed.
Provision C4.4 and CT4.4 (6/81 and 2/83) - Interest will accrue on the unpaid
amount at the current TFRM (Treasury Fiscal Requirements Manual) rate for
each 30 days or portion thereof after the end of the 15-day period allowed for
payment. For timber sale billings with this clause, interest accrues on a daily
rate from the due date to the date payment is received. No administrative
charge allowed.
Provision C4.4 and CT4.4 11/83) - Interest shall accrue on the unpaid amount
billed at the current TFRM rate from the date of the bill issuance to the date
payment is received. In addition a penalty charge of 6 percent of the principal
R2 SUPPLEMENT 6500-92-4
EFFECTIVE 10/1/92
6530
Page 13 of 16
(excluding interest) shall be assessed on the 91st day that the bill is overdue. An
administrative charge is allowed.
Provision C4.4 and CT4. (1/84, 10/89 and 12/89) - Interest shall accrue on the
unpaid amount at the current TFRM rate from the due date to the date payment
is received. In addition, a penalty charge of 6 percent of the principal (excluding
interest) shall be assessed on the 91st day that the bill is overdue. An
administrative charge is allowed.
If the payment has not been received by the original due date immediately notify
the contracting officer for the sale that the payment has not been received. The
Forest Service shall, in accordance with the specific contract, suspend all, or part, of
the sale operations until the prescribed payment conditions are met.
Remember that all timber and timber related proceeds are to be deposited in the
Timber Sale Deposit Fund (TSDF). This includes sale proceeds, administrative
charges, penalty and interest. See FSM 6534.23 for management codes for other
than principal.
a. First Followup Billing. The first followup billing shall be issued
within 5 days after the original due date and in accordance with the
payment provisions. It shall include an applicable administrative charge
and interest form the due date to the date of issue. Note: provisions
before 11/83 do not permit the Forest Service to charge an administrative
charge. The due date shall be 30 days from the issue date. When the
payment is received, calculate the interest according to the contract
provisions. Assign the proceeds in the following order: to any penalty
and administrative fees first, interest second, the remainder to the
principal owed. If the remainder is less than or equal to the
administrative charge, immediately send out a new Bill for Collection for
the remaining principal. Allow 15 days for this Bill for Collection to be
paid.
b. Second Followup Billing (third Bill for Collection). Send the second
followup billing within 5 days of the first followup due date and again
notify the contracting officer for the sale of nonpayment. The second
followup billing shall include an additional administrative charge and
interest in accordance with the governing provisions, calculated from the
first followup issue due date to the date of the second followup billing
issue date. Note: Provisions before 11/83 do not permit the Forest
Service to charge an administrative charge. The due date shall be 30
days from the second followup billing issue date. Assign the proceeds in
the following order: to any penalty and administrative charges first,
interest second, the remainder to the principal owed. If the remainder is
less than or equal to the administrative charge, waive the amount. If it is
greater than the administrative charge, immediately send out a new Bill
for Collection for any remaining principal. Allow 15 days for this Bill for
Collection to be paid.
R2 SUPPLEMENT 6500-92-4
EFFECTIVE 10/1/92
6530
Page 14 of 16
c. Third and Final Followup Billing (fourth Bill for Collection). If the
original principal has not been paid within 90 days of the initial due date,
again notify the contracting officer for the sale and prepare a followup
Bill for Collection. The third followup billing shall include an additional
administrative charge and interest in accordance with the governing
provisions, calculated form the second followup issue date to the date of
the third followup billing issue date. Note: provisions before 11/83 do not
permit the Forest Service to charge an administrative charge. If the
permit is not terminated and remains outstanding for more than 90 days,
assess the penalty charge (FSM 6534.22b). The due date shall be 30 days
after the issue date of the third followup billing. Assign the proceeds in
the following order: to any penalty and administrative charges first,
interest second, the remainder to the principal owed. If the remainder is
less than or equal to the administrative charge, waive the amount. If it is
greater than the administrative charge, immediately send out another
Bill for Collection for any remaining principal. Allow 15 days for this Bill
for Collection to be paid.
d. If the debt remains unpaid, see FSH 6509.11k, sec. 72.4, for further
direction.
6534.22a - Late Payment Interest Charge.
1. The Treasury Interest rate referred to in the parent text is:
9 percent in CY 1984 and 1985,
8 percent in CY 1986,
7 percent in CY 1987,
6 percent in CY 1988,
7 percent in CY 1989,
8 percent in CY 1990,
8 percent in CY 1991,
6 percent in CY 1992.
This rate is also referred to in various ways, such as the Quarterly Treasury
interest rate, and TFRM (Treasury Fiscal Requirements Manual) rate, the rate
prescribed in TFRM 6-8025-40 or quarterly TFRM bulletins, and the Treasury
current value of funds rate in various contracts, permits, agreements, and other
references. The other interest rate commonly used on delinquent accounts is the
Prompt Payment Act (PPA) interest rate, which is also referred to as the Contract
Disputes Act interest rate. The PPA rates are revised each 6 months and
distributed by F&PS to units as soon as received from the Washington Office.
In accordance with FSM 6572.22, apply the rate provided by the terms of contract,
permit, agreement and so forth, but in the absence of direction therein, apply the
higher of the two interest rates.
2. In accordance with FSH 6309.32, Federal Acquisitions Regulations, section
52.232-17, compute interest on delinquent procurement contract billings at simple
R2 SUPPLEMENT 6500-92-4
EFFECTIVE 10/1/92
6530
Page 15 of 16
interest on the unpaid principal until paid. Use the Prompt Payment Act interest
rate applicable to the period in which the amount becomes due, and then at the rate
applicable for each 6-month period until the amount is paid.
3. See FSM 6572.22 for penalties, administrative charges and interest
regarding State and local governments.
6534.22b - Penalty Payment. A penalty charge of 6 percent a year is required on
any portion of an applicable debt that is delinquent for more than 90 days. The
definition of delinquent, as contained in 4 CFR 101.2, is:
"A debt is considered 'delinquent' if it has not been paid by the date specified
on the agency's initial written notification.....or applicable contractual
agreement, unless other satisfactory payment arrangements have been made
by that date, or if, at any time thereafter, the debtor fails to satisfy
obligations under a payment agreement with the creditor agency."
6534.22c - Administrative Charges. The amount of $35 is established as the rate to
be charged for administrative costs in Region 2 related to preparing follow-up
billings, demand letters, debtor request for multiple billings, and other incidental
costs resulting from delinquent debts.
The administrative cost will be assessed and included in each follow-up billing as
long as the collection effort continues.
The $35 administrative charge shall be used except:
When a higher rate is justified (FSH 6509.11k, 72.53(3)).
When another rate is prescribed by contract or permit.
6534.5 - Authorized Schedule Payment of Delinquent Accounts. If a debtor is
unable to pay a debt in one lump sum, request the debtor to complete Financial
Statement of Debtor, form FS-6500-40. Interest may be waived on claims for the
Government if there is no indication of fault or lack of good faith on the part of the
debtor and the amount of interest is large enough in relation to the size of the
installments that the principal amount of the debt will never be repaid. See FSH
6509.11k, sec. 72.47, for details regarding installment payments.
6535.21 - Designating Collection Officers.
2. The Director, Management Systems and Administration, or the Assistant
Director, Fiscal and Public Safety Group or his designated Acting, is hereby
authorized to designate Regional Office collection officers, collection clerks and
alternates.
All designations of collection officer, collection clerks and alternates for the Forests
are within the Forest Supervisor's authority.
Include the following paragraph in the designation letter as shown in the sample
letter (exhibit 01) in the parent text:
R2 SUPPLEMENT 6500-92-4
EFFECTIVE 10/1/92
6530
Page 16 of 16
You are responsible for handling all funds collected in accordance with Forest
Service Manual and Handbook instructions. Refer to FSM 6530, particularly
6530.2 through 6530.5, regarding Objectives, Policy, Responsibility, and
Definitions; all section of FSH 6509.14; and pertinent portions of FSM 6507.