ENTERPRISE DELINQUENT DEBT MANAGEMENT

While the department progresses with Enterprise Resource Planning (ERP) system implementation, capabilities within ERP systems can help DoD diminish its accounts receivable material weakness. As such, Enterprise DoD Delinquent Debt Management is a Financial Management Functional Strategy Initiative. The Enterprise DoD Delinquent Debt Management Guidance defines a standard end-to-end solution for managing public accounts receivables and provides standard values for Department of Treasury interfaces. As a means for managing the DoD's public receivables and debts, this guidance focuses on eliminating the known material weakness, reducing unique requirements, and streamlining business practices.

 

DoD Components should apply the 'Enterprise DoD Delinquent Debt Management Guidance' as part of ERP system implementation strategies, business process reengineering, roles and responsibilities refinement, and change management as the department transitions from the current processes and system to the target environment. Ultimately, capabilities inherent in the ERP systems can be used to manage and age accounts receivables.

 

This enterprise solution encompasses a comprehensive end-to-end accounts receivable process that fully utilizes the inherent capabilities of ERPs. The solution includes standard record formats for exchanging data between the entitlement systems and target accounting systems, and between the target accounting systems and Department of Treasury Financial Management Service (FMS) Debt Management Services. Patterned on the federal standard, the Department of Treasury Integrated Agency Interface (IAI) format, DoD's Enterprise Delinquent Debt Management Standard incorporates the Standard Financial Information Structure (SFIS) and other key accounting identifiers to drive standardization and technology acquisition, processes, and systems, the enterprise solution is a fully compliant means to transfer collection responsibility for a greater volume of eligible debt to Department of Treasury in a compressed timeframe. Under the enterprise solution, the collection responsibility for collection of eligible debt over $25 is transferred to Department of Treasury at 90 days delinquent. The result not only increases the level at which delinquent debt owed to DoD will be pursued, but also expands the collective effort at the federal level to recoup those outstanding debts.