Debt Management

FY 2003 Performance and Accountability Report
Bureau of Resource Management
December 2003

Outstanding debt from non-Federal sources (net of allowances) increased from $45.3 million in 2002 to 51.5 million in 2003. Refer to Notes to the Principal Financial Statements, Note 6, for an analysis of Accounts Receivable balances. Non-Federal receivables consist of debts owed to the International Boundary and Water Commission, and amounts owed for Repatriation Loans, medical costs, travel advances, proceeds from the sale of real property, and other miscellaneous receivables.

Of the delinquent receivables over 365 days old, the majority ($3.7 million) is for the Repatriation Loan Program. These are loans given to destitute American citizens stranded overseas to allow them to return to the United States. The loans are given only if the individual cannot obtain funds from relatives, friends, employers, or another source. The Department acts as the lender of last resort. The loan becomes delinquent 60 days after repatriation to the United States. Due to their poor economic situation, most of these individuals are unable to repay the loans on time.

The Department uses installment agreements, salary offset, and restrictions on passports as tools to collect its receivables. It also receives collections through its cross-servicing agreement with the Department of the Treasury. In 1998, the Department entered into a cross-servicing agreement with the Department of the Treasury for collection of delinquent receivables. In accordance with the agreement and the Debt Collection Improvement Act of 1996 (Public Law 104-134), the Department referred $960,270 to Treasury for cross-servicing in 2003. The 2002 first quarter anthrax related U.S. mail disruptions affected the Department's ability to receive payments and to provide debtors proper due process notification. Thus, the Department was unable to refer debts to Treasury for most of 2002. Of the current and past debts referred to Treasury, $290,406 was collected in 2003.

Receivables Referred to the Department of the Treasury for Cross-Servicing
  FY 2003 FY 2002 FY 2001
Number of Accounts 927 177 677
Amounts Referred (In Thousands) $960
double underline
double underline
double underline