B-3338, JAN 11, 1972
Highlights
SECRETARY: REFERENCE IS MADE TO LETTER DATED SEPTEMBER 30. IF THE REQUEST IS APPROVED. THIS ACTION WAS BASED UPON THE FACT THAT THE COSTS OF COLLECTION WERE IN EXCESS TO THE AMOUNT OF SUCH CLAIMS. THE ASSISTANT SECRETARY'S LETTER STATES THAT IT HAS BEEN DETERMINED THAT AT LEAST $35 IS CURRENTLY INCURRED BY ASCS IN PERFORMING THE NECESSARY COLLECTION PROCEDURES WITH RESPECT TO EACH CLAIM. THAT AMOUNTS MAY NOT BE DISREGARDED WHEN IT IS DETERMINED THAT: "1. THERE IS EVIDENCE OF VIOLATION OF CRIMINAL LAW OR CIVIL FRAUDS STATUTES. "2. SEVERAL SMALL AMOUNTS INVOLVING THE SAME FACTS OR THE SAME BASIS OF LIABILITY CAN BE INCLUDED WITHIN A SINGLE BILLING OR DEMAND. "5.IT IS OTHERWISE NOT IN THE BEST INTERESTS OF ASCS.
B-3338, JAN 11, 1972
COLLECTION OF SMALL CLAIMS DECISION APPROVING INSTRUCTIONS OF THE AGRICULTURAL STABILIZATION AND CONSERVATION SERVICE, DEPARTMENT OF AGRICULTURE, REGARDING THE COLLECTION OF SMALL CLAIMS.
TO MR. SECRETARY:
REFERENCE IS MADE TO LETTER DATED SEPTEMBER 30, 1971, FROM THE ASSISTANT SECRETARY FOR ADMINISTRATION, DEPARTMENT OF AGRICULTURE, REQUESTING APPROVAL OF PROPOSED INSTRUCTIONS OF THE AGRICULTURAL STABILIZATION AND CONSERVATION SERVICE (ASCS), DEPARTMENT OF AGRICULTURE, REGARDING THE COLLECTION OF SMALL CLAIMS. ALSO, IF THE REQUEST IS APPROVED, THE ASSISTANT SECRETARY REQUESTS ADVICE AS TO WHETHER THE SAME AUTHORITY MAY BE EXTENDED TO OTHER AGENCIES OF THE DEPARTMENT OF AGRICULTURE HAVING SIMILAR SMALL CLAIMS ACTIVITY.
IN 45 COMP. GEN. 553 (1966), WE GRANTED ASCS AUTHORITY TO DISREGARD CLAIMS OF NOT MORE THAN $10 UNDER CERTAIN PRESCRIBED CONDITIONS. THIS ACTION WAS BASED UPON THE FACT THAT THE COSTS OF COLLECTION WERE IN EXCESS TO THE AMOUNT OF SUCH CLAIMS.
THE ASSISTANT SECRETARY'S LETTER STATES THAT IT HAS BEEN DETERMINED THAT AT LEAST $35 IS CURRENTLY INCURRED BY ASCS IN PERFORMING THE NECESSARY COLLECTION PROCEDURES WITH RESPECT TO EACH CLAIM. THESE INVOLVE THE COST TO (1) OBTAIN, EXAMINE, AND EVALUATE NECESSARY DOCUMENTS, (2) DETERMINE LIABLE PARTY, (3) ESTABLISH AND MAINTAIN ACCOUNTING AND CLAIM RECORDS, (4) PREPARE CLAIM DETERMINATIONS, INVOICES, AND LETTERS OF DEMAND, (5) COLLECTION FOLLOW-UP ACTIVITY, INCLUDING CORRESPONDENCE WITH DEBTORS, AND (6) RECEIVE, PROCESS, AND ALLOCATE AMOUNTS COLLECTED.
THE PROPOSED RULES PROVIDE AS FOLLOWS:
"RULES FOR DISREGARDING AMOUNTS OF
$35 OR LESS DUE ASCS
"THESE SMALL AMOUNTS MAY BE DISREGARDED SUBJECT TO THE FOLLOWING RULES, EXCEPT, THAT AMOUNTS MAY NOT BE DISREGARDED WHEN IT IS DETERMINED THAT:
"1. THERE IS EVIDENCE OF VIOLATION OF CRIMINAL LAW OR CIVIL FRAUDS STATUTES.
"2. A PERSON OR FIRM APPEARS HABITUALLY OR DELIBERATELY TO SUBMIT UNDERPAYMENTS OR DOCUMENTS WHICH WOULD CAUSE OVERDISBURSEMENTS.
"3. PROGRAM OPERATIONS WOULD BE ADVERSELY AFFECTED.
"4. SEVERAL SMALL AMOUNTS INVOLVING THE SAME FACTS OR THE SAME BASIS OF LIABILITY CAN BE INCLUDED WITHIN A SINGLE BILLING OR DEMAND.
"5.IT IS OTHERWISE NOT IN THE BEST INTERESTS OF ASCS.
"AMOUNTS OF $10 OR LESS
"1. CLAIM DETERMINATION OR BILLING NOT MADE
THESE AMOUNTS MAY BE DISREGARDED UNDER ANY ONE OF THE FOLLOWING CONDITIONS WITHOUT PREPARING A MEMORANDUM OF JUSTIFICATION, EXCEPT THAT AMOUNTS INVOLVING LOSS AND/OR DAMAGE AGAINST CARRIERS MAY BE DISREGARDED AUTOMATICALLY:
"A. COLLECTION WOULD REQUIRE THE PREPARATION AND ISSUANCE OF A CLAIM DETERMINATION OR BILLING.
"B. THE DEBTOR IS DECEASED, INCOMPETENT, OR CANNOT BE LOCATED.
"C. THE COST TO DETERMINE THE FACTS AND TO COLLECT WILL EXCEED RECOVERY.
"2. BILLING HAS BEEN MADE FOR AN AMOUNT IN EXCESS OF $10 BUT CLAIM HAS BEEN REDUCED TO $10 OR LESS BECAUSE OF COLLECTION, REDETERMINATION, OR REVISION
THESE BALANCES MAY BE DISREGARDED UNDER ANY ONE OF THE FOLLOWING CONDITIONS AND WITHOUT PREPARING A MEMORANDUM OF JUSTIFICATION IF THERE IS NO POSSIBILITY OF COLLECTION BY SETOFF WITHIN THE FORESEEABLE FUTURE:
"A. THE DEBTOR IS DECEASED, INCOMPETENT, OR CANNOT BE LOCATED.
"B. THE COST OF FURTHER COLLECTION EFFORTS WILL EXCEED RECOVERY.
"AMOUNTS IN EXCESS OF $10 BUT NOT MORE
THAN $35
"1. CLAIM DETERMINATION OR BILLING NOT MADE
THESE AMOUNTS MAY BE DISREGARDED WHEN IT IS DETERMINED THAT THE COST OF OBTAINING THE FACTS TO DETERMINE THE BASIS, LIABLE PARTY, AND EXACT AMOUNT OF LIABILITY WILL EXCEED THE ACTUAL OR ESTIMATED AMOUNT OF THE POTENTIAL CLAIM. A MEMORANDUM OF JUSTIFICATION SETTING FORTH THE REASONS FOR DISREGARDING IS REQUIRED. HOWEVER, FOR CLAIMS LESS THAN $15 INVOLVING LOSS AND/OR DAMAGE AGAINST CARRIERS, THESE MAY BE DISREGARDED AUTOMATICALLY AND A MEMORANDUM OF JUSTIFICATION IS NOT REQUIRED.
"2. BILLING HAS BEEN MADE BUT CLAIM HAS BEEN REDUCED TO NOT LESS THAN $10.01 BECAUSE OF COLLECTION, REDETERMINATION OR REVISION
THESE BALANCES MAY NOT BE DISREGARDED. HOWEVER, IF WARRANTED BY THE FACTS, THEY MAY BE CONSIDERED FOR TERMINATION OF COLLECTION ACTIVITY PURSUANT TO THE "JOINT RULES AND REGULATIONS OF THE GAO AND THE DEPARTMENT OF JUSTICE" ISSUED PURSUANT TO THE FEDERAL CLAIMS COLLECTION ACT OF 1966."
ON THE BASIS OF THE INFORMATION CONTAINED IN THE ASSISTANT SECRETARY'S LETTER, WE BELIEVE THE PROPOSED INSTRUCTIONS WILL ADEQUATELY PROTECT THE INTERESTS OF THE GOVERNMENT, AS WELL AS EASE THE ADMINISTRATIVE BURDEN OF ASCS. SUCH INSTRUCTIONS ARE, THEREFORE, APPROVED. REGARDING THE REQUEST TO EXTEND SUCH AUTHORITY TO OTHER AGENCIES OF THE DEPARTMENT OF AGRICULTURE, WE WOULD HAVE NO OBJECTION TO SUCH EXTENSION TO OTHER AGENCIES OF THE DEPARTMENT OF AGRICULTURE HAVING SIMILAR SMALL CLAIMS ACTIVITY WHERE THE COSTS OF COLLECTION EXCEED $35.