CHAPTER 5. FIELD PERSONNEL ROLES AND RESPONSIBILITIES

5-1. ACTION OFFICIAL. Initial responsibility for collecting debts

due HUD is vested in the Action Official. If this effort and

follow-up letters are unsuccessful, the Action Official forwards

the debt file to the Claims Collection Officer (CCO) for further

collection action. Specific duties of the Action Official

include:

o Carefully monitoring program, grant, project, or activity

for debts to HUD, in accordance with procedures prescribed

by FAR 32.6 and the Contract Disputes Act of 1978, as

appropriate.

o Examining each case for indication of fraud, false claim,

or misrepresentation and promptly reporting such

indications to the Assistant Inspector General for

Investigation (AIGI) or Regional Inspector General for

Investigation (RIGI).

o Reviewing and assessing program audit findings.

o For sustained audits, initiating a Concurrence Memorandum.

o For investigations, completing an Investigation

Disposition Report
([HUD-1416](http://www.hud.gov/utilities/intercept.cfm?/offices/adm/hudclips/forms/files/1416.pdf)).

o Sending the Initial Letter Requesting Payment of Debt and

Invoice
([HUD-216](http://www.hud.gov/utilities/intercept.cfm?/offices/adm/hudclips/forms/files/216.pdf))
and sending two follow-up letters at 30-

day intervals.

o Providing appropriate documentation to the Regional

Accounting Division (RAD) to establish an account

receivable on all debts.

o Maintaining a debt file.

o Notifying the RAD of changes in debt status so that proper

adjustments are made to the receivables.

o Responding promptly to RAD requests for information or

assistance.

o Telephoning and personally contacting the debtor to

determine debt collectibility.

o Implementing installment repayment agreements for

collection where full repayment cannot be accomplished.

o Monitoring the effectiveness of initial debt collection

efforts.

o Ensuring that collected funds are processed in accordance

with HUD [Handbook
[1911.1]{.mark}](http://www.hud.gov/offices/adm/hudclips/handbooks/cfoh/19111/index.cfm)
[]{.mark} REV, Handling and Protecting Cash

and Other Negotiable Instruments.

OCT 26 1987

5-1

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o Coordinating actions taken on debts arising from

contracts with the Contracting Officer.

o Recommending collection by offset, when appropriate.

o Sending the debt file to the CCO for claim

establishment when initial collection attempts prove

unsuccessful.

o Working with the Departmental Claims Officer (DCO) to

analyze causes of delinquencies and defaults.

o Evaluating each Field Office\'s policies and

procedures relating to its debt collection process

and activities to ensure they meet the requirements of

the law and this handbook (Regional Office Action

Officials only).

o Taking timely action to reimburse debts/claims

resulting in a sanction whereby costs must be repaid

from non-federal funds by the recipient to its

program/project account or letter-of-credit. (These

are not debts due HUD and are not referred to the RAD

for the establishment of a receivable.)

5-2. CLAIMS COLLECTION OFFICER.

a\. Responsibilities. The CCO is responsible for collecting

and reporting claims that have proven to be uncollectible

by Action Officials and RADs. The primary functions of a

CCO are to collect, compromise, suspend, terminate, or

transfer claims. To carry out these responsibilities, the

CCO performs several administrative duties including:

o Receiving claim files from the Action Official.

o Maintaining up-to-date claim files at all times during

claims processing.

o Pursuing aggressive debt collection actions.

o Making determinations regarding debt compromise,

suspension, and termination.

o Keeping the RCCO, RAD and Action Official informed of

changes in claim status.

o Transferring the claim file and a referral

transmittal memorandum through the RCCO to the DCO

when the claim has proven to be uncollectible and the

amount of the claim exceeds the CCO\'s authority to

compromise, suspend, or terminate.

OCT 26 1987

5-2

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b\. Appointment. HUD pursues claims collection activities with

only as many CCOs (and Alternate and Assistant CCOs) as

necessary to ensure efficient and effective processing of

claims.

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The appointing official may designate

Alternate/Assistant CCOs subject to the needs of the

office.

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Whenever special circumstances \-- such as unusually high

claims activity \-- indicate to an appointing official that

a variance from HUD policy is needed, a written

justification is submitted to the DCO setting forth the

nature and expected duration of the circumstances and

recommending a course of action. The DCO grants waivers to

appointment policy as appropriate.

Headquarters primary organization heads, Regional

Administrators, and Category \"A\" office managers designate

CCOs to be responsible for claims arising from the

activities of such offices. CCOs may be appointed for

Category \"B\" and \"C\" offices at the discretion of the

Regional Administrator having jurisdiction over the office.

The DCO must be kept informed of all CCO appointments.

(See Appendix 16.)

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Employees who are directly involved in maintaining the

accounting records for debts/claims receivable must

not be designated as CCOs.

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c\. Selection. Since efficient delinquent debt collection is

key to ensuring that HUD\'s financial interests are well

managed, it is essential that appropriate personnel be

assigned CCO responsibilities and duties. In selecting

staff to serve as CCOs, the following criteria should be

considered:

o The percent of the individual\'s time expected to be

devoted to claims collection as determined by the

volume of claims to be processed, since claims

collection is assigned as a collateral duty.

o Degree of knowledge of HUD programs under the

jurisdiction of the office.

o Ability to aggressively pursue the collection of

claims from debtors.

OCT 26 1987

5-3

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o Ability to analyze the characteristics of claims

and formulate responsible decisions relative to

compromise, suspension, or termination, and to

prepare recommendations on claims referable to higher

authority.

o Grade level consistent with the responsibility to be

exercised in relation to size and quantity of claims

processed by the office.

o Evidence of skills needed to speak and act for the

head of the office.

5-3. FIELD COUNSEL (CHIEF COUNSEL AND CHIEF ATTORNEY). The Chief

Counsel and the Chief Attorney have primary Field Counsel

responsibility for legal review of proposed compromises and

terminations. Their review should be obtained prior to the

CCO\'s final decision to compromise or terminate, or prior to

recommending such action to the DCO.

The Chief Counsel and Chief Attorney are available for informal

counsel prior to referring a matter to the Regional Counsel or

DCO for enforcement.

OCT 26 1987

5-4

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