[Decision Concerning Authority of Government Agencies To Terminate Collection of Debts Owed United States]

Two federal agencies requested clarification on the extent to which the Claims Collection Act applied to debts owed by federal employees to the United States. GAO held that: (1) when determining whether to compromise or terminate the collection of debts owed by federal employees, agencies may consider the costs of providing required administrative hearings; (2) agencies' debt collection policies may include realistic points of diminishing returns and minimum amounts for debts owed the United States by federal employees; and (3) agencies may not consider the anticipated costs of administrative procedures or reviews when establishing those policies. Accordingly, GAO had no objection to proposed changes in the agencies' debt collection procedures.