[Code of Federal Regulations]

[Title 32, Volume 1]

[Revised as of July 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 32CFR22.820]



[Page 92-93]

 

                       TITLE 32--NATIONAL DEFENSE

 

              CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE

 

PART 22_DoD GRANTS AND AGREEMENTS_AWARD AND ADMINISTRATION--Table of 

Contents

 

                   Subpart H_Post-Award Administration

 

Sec.  22.820  Debt collection.



    (a) Purpose. This section prescribes procedures for establishing 

debts owed by recipients of grants and cooperative agreements, and 

transferring them to payment offices for collection.

    (b) Resolution of indebtedness. The grants officer shall attempt to 

resolve by mutual agreement any claim of a recipient's indebtedness to 

the United States arising out of a grant or cooperative agreement (e.g., 

by a finding that a recipient was paid funds in excess of the amount to 

which the recipient was entitled under the terms and conditions of the 

award).

    (c) Grants officer's decision. In the absence of such mutual 

agreement, any claim of a recipient's indebtedness shall be the subject 

of a grants officer decision, in accordance with Sec.  22.815(b)(2). The 

grants officer shall prepare and transmit to the recipient a written 

notice that:

    (1) Describes the debt, including the amount, the name and address 

of the official who determined the debt (e.g., the grants officer under 

Sec.  22.815(d)), and a copy of that determination.

    (2) Informs the recipient that:

    (i) Within 30 calendar days of the grants officer's decision, the 

recipient shall either pay the amount owed to the grants officer (at the 

address that was provided pursuant to paragraph (c)(1) of this section) 

or inform the grants officer of the recipient's intention to appeal the 

decision.

    (ii) If the recipient elects not to appeal, any amounts not paid 

within 30 calendar days of the grants officer's decision will be a 

delinquent debt.

    (iii) If the recipient elects to appeal the grants officer's 

decision the recipient has 90 calendar days, or 150 calendar days if ADR 

procedures are used, after receipt of the grants officer's decision to 

file the appeal, in accordance with Sec.  22.815(e)(3)(i).

    (iv) The debt will bear interest, and may include penalties and 

other administrative costs, in accordance with the debt collection 

provisions in Chapters 29, 31, and 32 of Volume 5 and Chapters 18 and 19 

of Volume 10 of the DoD Financial Management Regulation (DoD 7000.14-R). 

No interest will be charged if the recipient pays the amount owed within 

30 calendar days of the grants officer's decision. Interest will be 

charged for the entire period from the date the decision was mailed, if 

the recipient pays the amount owed after 30 calendar days.

    (d) Follow-up. Depending upon the response from the recipient, the 

grants officer shall proceed as follows:

    (1) If the recipient pays the amount owed within 30 calendar days to 

the grants officer, the grants officer shall forward the payment to the 

responsible payment office.

    (2) If within 30 calendar days the recipient elects to appeal the 

grants officer's decision, further action to collect the debt is 

deferred, pending the outcome of the appeal. If the final result of the 

appeal is a determination that the recipient owes a debt to the Federal 

Government, the grants officer shall send a demand letter to the 

recipient and transfer responsibility for further debt collection to a 

payment office, as described in paragraph (d)(3) of this section.

    (3) If within 30 calendar days the recipient has neither paid the 

amount due nor provided notice of intent to file an appeal of the grants 

officer's decision, the grants officer shall send a demand letter to the 

recipient, with a copy to the payment office that will be responsible 

for collecting the delinquent debt. The payment office will be 

responsible for any further debt collection activity, including issuance 

of additional demand letters (see Chapter 19 of volume 10 of the DoD 

Financial Management Regulation, DoD 7000.14-R). The grants officer's 

demand letter shall:



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    (i) Describe the debt, including the amount, the name and address of 

the official that determined the debt (e.g., the grants officer under 

Sec.  22.815(d)), and a copy of that determination.

    (ii) Notify the recipient that the debt is a delinquent debt that 

bears interest from the date of the grants officer's decision, and that 

penalties and other administrative costs may be assessed.

    (iii) Identify the payment office that is responsible for the 

collection of the debt, and notify the recipient that it may submit a 

proposal to that payment office to defer collection, if immediate 

payment is not practicable.

    (e) Administrative offset. In carrying out the responsibility for 

collecting delinquent debts, a disbursing officer may need to consult 

grants officers, to determine whether administrative offset against 

payments to a recipient owing a delinquent debt would interfere with 

execution of projects being carried out under grants or cooperative 

agreements. Disbursing officers may also ask grants officers whether it 

is feasible to convert payment methods under grants or cooperative 

agreements from advance payments to reimbursements, to facilitate use of 

administrative offset. Grants officers therefore should be familiar with 

guidelines for disbursing officers, in Chapter 19 of Volume 10 of the 

Financial Management Regulation (DoD 7000.14-R), concerning withholding 

and administrative offset to recover delinquent debts.