Sample Memorandum to file for Administrative WRITE-OFF of Debt equal to or less than $2500
MEMORANDUM
DATE:
TO: {Name], Unit Chief, PRPU
FROM: {Name], Policy Analyst
SUBJECT: Employee:
Claimant:
DEEOIC CASE ID:
ADMINISTRATIVE WRITE-OFF OF DEBT EQUAL TO OR
LESS THAN $2,500
The Federal Claims Collection Standards (FCCS), 4 CFR Section 103.4, state that a claim may be compromised if the cost of collection would not justify enforcing the collection of the full claim. Section 104.3I states, that collection action may be terminated when it is likely that the cost of further collection action will exceed the amount likely to be recovered. In a decision issued on September 29, 1986, the Comptroller General elaborated on 4 CFR by concluding that these standards extend to the collection of debts from federal employees, and that agencies may establish “minimum debt amounts” and realistic “points of diminishing returns” in their debt collection activities. The term “minimum debt amounts” refers to the designation of categorical thresholds beneath which collection action need not be initiated because the amount of the debts in that class are so small in relation to the costs of attempting collection efforts. “Diminishing returns” refers to an agency’s designation of thresholds beneath which the agency will discontinue collection efforts already initiated when it appears that the costs of additional collection actions would exceed the amounts likely to be recovered. The Comptroller General instructed further that agencies may, on a case-by-case basis, take the anticipated costs of required administrative hearings into consideration when determining whether to compromise or terminate collection action.
The National Office has considered the case and has noted that the following applied: [Describe how debt occurred.]
RECOMMENDATION: Based upon the above, I find that the following action is appropriate: [Explain why it’s feasible to terminate debt collection activities.]