June 20, 1986
COMPTROLLER'S MEMORANDUM NO. 20 (1985-86)
SUBJECT: AUDIT AND ADJUSTMENTS OF ACCOUNTS
AND RECOVERY OF ACCOUNTS RECEIVABLE
Attached is a copy of our rule, Chapter
3A-21, Florida Administrative Code (F. A. C.), Audit and Adjustment of Accounts
and Recovery of Accounts Receivable, which became effective January
8, 1986. These rules are not applicable to those State agencies
exercising their specific independent statutory authority to collect,
settle, adjust, or charge off delinquent accounts receivable or
other specific accounts of the agency.
Chapter 3A-21, F. A. C., establishes
the general procedures under which the Bureau of Auditing administers:
- Requests for adjustments of agency
State-owned tangible personal property records;
- Processing of delinquent accounts receivable
(write-offs);
- Voluntary and involuntary recovery
of nonsalary sums due the State from State officers and
employees; and
- Requests for approval of settlements
of claims in favor of the State.
All requests received by the Bureau
which do not contain all the information and/or approvals prescribed
in the applicable rule may be returned indicating the information
and/or approvals needed to complete the request. The request
should not be resubmitted until all information
and/or approvals indicated as being needed have been obtained
and made a part of the request.
Adjustments of Property Records
Prior to making a recommendation to
the Comptroller pursuant to Section 3A-21.02, F. A. C., the Bureau will evaluate and
make recommendations, if applicable, for the agency's procedures and efforts to safeguard its property, report losses,
and recover reasonable cost of lost State-owned tangible personal
property. There will be no recommendation of approval until the
agency, in the opinion of the Bureau, has made appropriate efforts
to recover reasonable cost of assets lost and established adequate
procedures to prevent future losses.
Delinquent Accounts Receivable
Upon receipt of the information required
by Section 3A-21.03, F. A. C., the Bureau will evaluate the agency's collection procedures and efforts to determine if the agency has
exhausted all its lawful means to collect. If in the opinion of the Bureau, the agency
has not exhausted all its lawful means, the request may be returned
recommending that the agency pursue additional means to collect.
Returned checks received by an agency
are accounts receivable and shall be processed by the Bureau in
the same manner as other receivables.
Recovery of Nonsalary Sums Due the State from State Officers and Employees
Voluntary
When a determination is made that
a repayment of the amount due the State is to be made in installments,
whether through payroll deductions or otherwise, the repayment
schedule must be approved by the Bureau. When the individual
is a member of the staff of another agency and payroll deductions
are to be made, the collecting agency must provide the other agency's personnel office a deduction request form signed by the individual
and should obtain a promissory note from the individual. When
installment repayments are to be made by means other than through
payroll deduction, the collecting agency should obtain a promissory
note from the individual.
If a preapproved promissory note format
is used and the repayment schedule for payroll deductions and
other methods of payment meet the guidelines established in Section
3A-21.04(3), F. A. C., the Bureau's
approval of notes and schedules may be obtained verbally; if not,
all documentation must be submitted to the Bureau for review and
action.
It is the responsibility of the collecting
agency to maintain a full accounting of all repayment accounts
whether they are payroll deduction or not. This includes appropriate
communication with the employing agency of persons who are repaying
via payroll deduction to insure that the proper amount is deducted
for each account.
Attached are samples of a promissory
note and payroll deduction request to assist agencies in establishing
needed forms.
Involuntary
As stated in Section 3A-21.04, F. A.. C., "Involuntary
deduction from wage payments shall be considered as an extreme
remedy and shall be used only where other reasonable efforts have
failed." Therefore, the requesting agency must provide the Bureau with
sufficient information to substantiate:
- The validity of the debts (i.e., judgments,
final orders, returned checks, etc.);
- That a diligent effort was made to
recover the amount due through voluntary means (i.e., rejected written offer by the
agency to allow the individual to repay the agency in equitable installments over a reasonable
period of time); and
- That all applicable due process requirements
were met (i.e., rejection of or failure to request a hearing pursuant to Section
120.57, Florida Statutes (F.S.), final orders, judgments, etc.)
Once the Bureau approves an involuntary
payroll deduction, the Bureau will advise all parties involved
of the repayment schedule and direct the appropriate agency to
initiate the payroll deduction. It will be the responsibility
of the requesting (collecting) agency to maintain a full accounting
of the account which includes appropriate communication with the
individual's agency to insure that the proper amount is collected.
Settlement of Claims
The accepting of an amount less than
the total amount due the State as full payment of the debt, which
includes any interest or service charges provided by statute,
is a settlement. All settlements whether in the form of a written
two-party agreement or a note must be approved by the Bureau before
the settlement becomes effective. If the settlement is in the
form of a written agreement, the collecting agency may submit
for approval a nonexecuted agreement or an executed agreement
which contains a provision that the agreement become effective
only upon its approval by the State of Florida, Department of
Banking and Finance.
In order for the Bureau to recommend
to the Comptroller pursuant to Section 3A-21.05 (4), F. A. C.,
that the settlement be approved, the Bureau must be satisfied
that the settlement is in the best interest of the State.
Please contact the Bureau of Auditing at 410-9194, Suncom 210-9194, if you have questions concerning this
matter.
THIS MEMORANDUM INCLUDED ATTACHMENTS WHICH CANNOT BE TRANSMITTED. IF YOU WOULD LIKE TO OBTAIN THESE DOCUMENTS, PLEASE CALL THE BUREAU OF AUDITING AT 488-4094, SUNCOM 278-4094.
