To update the delinquent accounts receivable transmittal form and the procedures to be followed by state agencies.

Division of Accounting and Auditing

RULE NO.: RULE TITLE:

69I-21.003 Procedure for Processing Delinquent Accounts Receivable

PURPOSE AND EFFECT: To update the delinquent accounts receivable transmittal form and the procedures to be followed by state agencies.

SUBJECT AREA TO BE ADDRESSED: Procedures for processing delinquent accounts receivable by state agencies.

SPECIFIC AUTHORITY: 17.29 FS.

LAW IMPLEMENTED: 17.03 FS., 17.04 FS., 17.20 FS.

IF REQUESTED IN WRITING AND NOT DEEMED UNNECESSARY BY THE AGENCY HEAD, A RULE DEVELOPMENT WORKSHOP WILL BE HELD AT THE DATE, TIME, AND PLACE SHOWN BELOW:

DATE AND TIME: March 29, 2006, 9:00 a.m.

PLACE: Room 430, Fletcher Building, Tallahassee, Florida

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE DEVELOPMENT AND A COPY OF THE PRELIMINARY DRAFT IS: Norm Crew, Senior Management Analyst, Department of Financial Services, Bureau of Accounting, 200 East Gaines Street, Tallahassee, Florida 32399-0354, [phone]

 

THE PRELIMINARY TEXT OF THE PROPOSED RULE DEVELOPMENT IS:

 

69I-21.003 Procedure for Processing Delinquent Accounts Receivable.

(1) Each agency shall be responsible for exercising due diligence in securing full payment of all accounts receivable and other claims due the State.

(2) Within six months after the date on which an account or other claim was due and payable, unless another period is approved pursuant to subsection (4), and after exhausting other lawful measures available to an agency, the delinquent account receivable must be reported to the Department for further action as authorized by Chapter 17, F.S., which includes possible assignment to a collection agency. A Delinquent Accounts Receivable Transmittal Form (DFS-AA-580) must be completed by the agency in as much detail as is available for each delinquent account reported. Other methods for transmitting the information required on Form DFS-AA-580 may be used if approved in advance by the Department. This prior approval is necessary in order for the Department to properly perform its duties pursuant to Section 17.04, F.S. Delinquent Accounts Receivable Transmittal Form DFS-AA-580, revised 2/06 11-20-94, is hereby incorporated herein by reference and is available from:

Department of Financial Services

Division of Accounting and Auditing

Bureau of Accounting

200 East Gaines Street 

Tallahassee, Florida 32399-0354 

Agencies will be notified, in writing, of the delinquent accounts assigned to a collection agency. Payment(s) received by an agency on accounts assigned to a collection agency must be reported, in writing, to the Bureau of Accounting within 30 days of receipt.

(3) An agency which has delinquent accounts receivable which it considers to be of such a nature that their assignment to a collection agency would be inappropriate may request, in writing, an exemption for those accounts. The request shall fully explain the nature of the delinquent accounts receivable and the reasons which the agency believes would preclude them from being assigned to a collection agency. The Department will disapprove the request in writing unless it is demonstrated shown that a demonstrative harm to the State of Florida will occur as a result of assignment of the account to a collection agency.

(4) through (6) No change.

(7) The contracted collection agent will send payment along with a remittance advice to each agency for accounts collected.  To facilitate the transfer of moneys collected, each agency shall designate one FLAIR revenue account code to which all collected moneys will be transferred by journal transfer and notify the Department of the account code so designated. Agencies will be provided a detailed listing of amounts collected and collection fees charged, for each account. The Department will also provide instructions in accordance with General Accepted Accounting Principles on the appropriate method of recording the difference between any moneys collected and the amount of the delinquent account; i.e., treat the difference as cost of collection or provide approval for adjusting the balance of the account pursuant to Section 17.04, F.S.

Specific Authority 17.29 FS. Law Implemented 17.03 FS., 17.04 FS., 17.20 FS. History–New 1-8-86, Formerly 3A-21.03, Amended 4-12-89, 6-3-90, 11-20-94, 5-12-97, Formerly 3A-21.003, Amended________.

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