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

DEPARTMENT OF FINANCIAL SERVICES
Divsion 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.
SUMMARY: To update the delinquent accounts receivable transmittal form and the procedures to be followed by state agencies.
SUMMARY OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
SPECIFIC AUTHORITY: 17.29 FS.
LAW IMPLEMENTED: 17.03 FS. 17.04 FS. 17.20 FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE TIME, DATE AND PLACE SHOWN BELOW(IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):
TIME AND DATE: May 3, 2006, 9:30 a.m.
PLACE: Room 430, Fletcher Building, Tallahassee, Florida
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Norm Crew, Senior Management Analyst, Department of Financial Services, Bureau of Accounting, 200 East Gaines Street, Tallahassee, Florida 32399-0354 [phone]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Norm Crew, Senior Management Analyst, Department of Financial Services, Bureau of Accounting, 200 East Gaines Street, Tallahassee, Florida 32399-0354 [phone].

THE FULL TEXT OF THE PROPOSED RULE 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 ________________.

NAME OF PERSON ORIGINATING PROPOSED RULE: Norm Crew, Senior Management Analyst, Bureau of Accounting
NAME OF SUPERVISOR OR PERSON WHO APPROVED THE PROPOSED RULE: Doug Darling, Director, Division of Accounting and Auditing
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: March 28, 2006
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: March 10, 2006