U.S. Government 

Receivables and Debt Collection 

Activities of Federal Agencies 

Department of the Treasury 

June 2012

FISCAL YEAR 2011

REPORT TO THE CONGRESS
a message from the fiscal assistant secretary

department of the treasury

washington, dc

office of the fiscal assistant secretary

I am pleased to present the Fiscal Year 2011 Report to the Congress on U.S. Government Receivables and Debt Collection 

Activities of Federal Agencies. This annual report provides important information to the American public on the 

status and collection of the Federal government’s non-tax receivables and delinquent debts.

At the end of Fiscal Year 2011, outstanding non-tax receivables owed to the United States totaled $778 billion, 

an increase of $152 billion over last year. Most of these receivables represent loans to students, small business 

owners, homeowners, farmers, and veterans. Other non-tax receivables owed to the United States include fines and 

penalties, overpayments, and fees.

Most citizens pay their debts on time. However, at the end of Fiscal Year 2011, delinquent non-tax debts owed 

to the Federal government rose to $131 billion, an increase of $27.4 billion over the prior fiscal year. The timely 

and efficient collection of delinquent debts helps fund government operations, maintain key programs and reduce 

the federal deficit. Thus, it is more important than ever to continue to find ways to cost-effectively collect the 

government’s past-due debts, while, at the same time, providing debtors with due process and the opportunity to 

repay debts in accordance with their financial ability to pay.

The Debt Collection Improvement Act of 1996 centralized administrative delinquent debt collection functions 

at the Department of the Treasury (Treasury). Since implementation, Treasury’s Financial Management Service 

(FMS) has collected more than $54 billion for Federal and state agencies, including state child support agencies. 

In Fiscal Year 2011, FMS collected a record $6 billion at a relatively small cost to the Federal government - $52.42 

collected for every $1 spent. Despite these successes, we can do more. FMS is working with its agency partners to 

develop new ideas to optimize and expand its services to increase collections. In times of reduced agency budgets, 

it is more critical than ever to prioritize and centralize the collection of the Federal government’s receivables so that 

limited resources may be allocated to meet the important needs of our citizens.

Richard L. Gregg
A Message from the Fiscal Assistant Secretary

I. OVERVIEW ..................................................................................................................................... 1 

II. RECEIVABLES OWED TO THE UNITED STATES .................................................................. 2

 A. Total Receivables ..............................................................................................................................................................................2

 B. Direct and Guaranteed Loans...........................................................................................................................................................3

 C. Non-Loan Receivables (Administrative Debt) ................................................................................................................................3

 D. Interest, Penalties, and Costs ...........................................................................................................................................................3

III. DELINQUENT NON-TAX DEBTS OWED TO THE UNITED STATES ................................. 4

 A. By Age ..............................................................................................................................................................................................4

 B. By Agency .........................................................................................................................................................................................5

 C. By Debt Type ...................................................................................................................................................................................6

IV. DELINQUENT DEBT COLLECTION ACTIVITIES ................................................................ 7

 A. Administrative Wage Garnishment (AWG) Collections ............................................................................................. 7

 B. Private Collection Agency (PCA) Referrals and Collections ....................................................................................... 7

 1. Referrals to PCAs ...................................................................................................................................................... 8

 2. Collections by PCAs .................................................................................................................................................. 8

 C. Department of the Treasury’s Debt Collection Programs............................................................................................. 9

 1. Referrals to TOP .......................................................................................................................................................10

 2. TOP Collections .......................................................................................................................................................10

 3. Referrals to the Cross-Servicing Program .................................................................................................................11

 4. Cross-Servicing Collections ......................................................................................................................................11

 D. Enforced Debt Collection by Department of Justice .................................................................................................. 12

 1. Referrals to DOJ ...................................................................................................................................................... 12

 2. Collections by DOJ .................................................................................................................................................. 12

 E. Department of Education Student Loans ....................................................................................................................13

 F. Department of Health and Human Services Program Support Center.......................................................................15

V. WRITE-OFFS OF DELINQUENT DEBTS ................................................................................ 16 

APPENDICES ....................................................................................................................................17

 Appendix I: Total Federal Receivables and Collections by Agency ...................................................................................................17

 Appendix II: Total Federal Delinquent Debts and Collections by Agency .......................................................................................18

 Appendix III: Total Federal Write-Offs by Agency ...........................................................................................................................19

 Appendix IV: Treasury Offset Program (TOP) Referrals and Collections Including Debts Owed to the Internal 

 Revenue Service and State Agencies ..............................................................................................................................................20

 Appendix V: Sources of Data ..............................................................................................................................................................23

FISCAL YEAR 2011 REPORT TO THE CONGRESS:

U.S. GOVERNMENT RECEIVABLES AND 

DEBT COLLECTION ACTIVITIES OF FEDERAL AGENCIES
1 FY 2011 REPORT TO THE CONGRESS: U.S. GOVERNMENT RECEIVABLES 

AND DEBT COLLECTION ACTIVITIES OF FEDERAL AGENCIES

I. Overview

The Secretary of the Treasury (Secretary) reports to Congress annually on the Federal government’s outstanding 

non-tax receivables and debt collection activities. As required by Federal law (31 U.S.C. § 3719), this report 

includes information that Federal agencies provide to the Secretary on the status of their accounts receivable and 

delinquent debts, as reported on the Treasury Report on Receivables and Debt Collection Activities (TROR). For more 

information about the TROR, visit www.fms.treas.gov/debt.

In furtherance of the policies promulgated by Congress and the President, Federal agencies make loans directly to 

borrowers, guarantee loans made by private lending institutions, and impose fines and penalties. This activity results 

in the creation of accounts receivable as assets of the government. In addition, Federal agencies award grants and make 

payments, which, in certain circumstances, can also result in the creation of accounts receivable.

In Fiscal Year (FY) 2011, the government’s outstanding non-tax receivables totaled $778 billion, an increase of $152 

billion over FY 2010. 

When the government’s receivables are not paid by the applicable due date or in the appropriate manner, they become 

delinquent debts. In FY 2011, delinquent non-tax debts owed to the United States totaled $131 billion, a 27% increase 

over FY 2010.

Each Federal agency is required to make every reasonable effort to collect its delinquent debts, using collection tools 

described in this report. In FY 2011, Federal agencies collected $18.3 billion of delinquent debt. The Department of the 

Treasury (Treasury) and the Department of Justice share responsibility for setting governmentwide policy on delinquent 

non-tax debt collection, and each plays a major role in the centralized collection of delinquent non-tax debt.

• Treasury’s Financial Management Service (FMS) collected $6.17 billion in delinquent debt in FY 2011 on 

behalf of Federal and state agencies, a 13.2% increase over FY 2010. This is the highest amount collected by 

Treasury in a single fiscal year since it began its governmentwide delinquent debt collection programs in 1996 

with the enactment of the Debt Collection Improvement Act (DCIA). Of that amount, $2.72 billion represents 

Federal non-tax debt collections. Since 1996, Treasury has recovered more than $54 billion on behalf of Federal 

and state agencies, including $21.5 billion in Federal delinquent non-tax debt, $3.2 billion in Federal delinquent 

tax debt, and $29.5 billion in delinquent debt owed to state agencies, including $25.9 billion in delinquent child 

support obligations.

• The Department of Justice (DOJ) collected $4.9 billion in FY 2011 on delinquent debts owed to Federal agencies 

through its civil litigation program. DOJ has collected a total of $18.4 billion through civil litigation in the last 

five fiscal years.
2007 2008 2009 2010 2011

$ 0

$ 100

$ 200

$ 300

$ 400

$ 500

$ 600

$ 700

$ 800

$900

$339.6 $366.6 $525.0 $625.8 $777.8

Total Receivables

Fiscal Year

Dollars in Billions

2007 2008 2009 2010 2011

$ 0

$ 50

$ 100

$ 150

$ 200

$ 250

$ 300

$159.6 $171.4 $222.8 $222.9 $245.3

Total Collections On Receivables

Fiscal Year

Dollars in Billions

2 FY 2011 REPORT TO THE CONGRESS: U.S. GOVERNMENT RECEIVABLES 

AND DEBT COLLECTION ACTIVITIES OF FEDERAL AGENCIES

II. Receivables Owed to the United States 

A. Total Receivables

At the end of FY 2011, non-tax receivables owed to the United States totaled $777.8 billion, an increase of $152 

billion from FY 2010. Collections on governmentwide receivables in FY 2011 totaled $245.3 billion, an increase of 

$22.4 billion from FY 2010. 

The Departments of Education (Education) and Agriculture (USDA) held the largest portfolios, which totaled $621 

billion and represented 80% of the government’s total receivables.

• Education: At the end of FY 2011, Education’s outstanding receivables totaled $504.7 billion, 65% of the 

government’s total receivables. Federal Direct Student Loans ($355.6 billion) and Defaulted Guaranteed Student 

Loans ($44.4 billion) accounted for the majority of the receivables. In FY 2011, Education collected $56.2 billion, 

an increase of $3.4 billion over FY 2010, including loan consolidations.

• USDA: At the end of FY 2011, USDA’s outstanding receivables totaled $116.2 billion, 15% of the government’s 

total receivables. Five program areas of the USDA accounted for over $109 billion of its receivables: Rural Electric 

& Telephone Revolving Fund ($45.7 billion), Rural Housing Insurance Fund ($27.7 billion), Rural Development 

Insurance Fund ($16.1 billion), Commodity Credit Corporation ($11.8 billion) and Farm Service Agency ($8.4 

billion). FY 2011 receivables collections totaled $24.1 billion.

source: treasury report on receivables and debt collection activities — fourth quarter fy 2011

figure 1 figure 2
3 FY 2011 REPORT TO THE CONGRESS: U.S. GOVERNMENT RECEIVABLES 

AND DEBT COLLECTION ACTIVITIES OF FEDERAL AGENCIES

source: treasury report on receivables and debt

collection activities — fourth quarter fy 2011

B. Direct and 

 Guaranteed Loans

At the end of FY 2011, Federal loan 

programs (direct and defaulted 

guaranteed) totaled $693.7 billion, or 

89.2% of total receivables. At the end 

of FY 2010, loan programs represented 

87.3% of total receivables.

D. Interest, Penalties 

 and Costs

Generally, agencies are 

required to add interest, 

penalties and administrative 

costs to receivables owed to the 

United States in accordance with 

applicable loan documents and 

statutory requirements. See, e.g.

31 U.S.C. §3717. Of the $777.8 

billion in receivables at the end of 

FY 2011, $32.7 billion represents 

unpaid interest, penalties and 

administrative costs.

C. Non-Loan Receivables 

 (Administrative Debt)

Non-loan receivables, or 

administrative debt, account 

for the remainder of the receivables. 

Non-loan receivables include fines, 

penalties, and overpayments. At 

the end of FY 2011, non-loan 

receivables totaled $84.1 billion, or 

10.8% of total receivables, down 

from 12.8% of total receivables in 

FY 2010.

Government Loan and Non-Loan Receivables

Non-Loans

10.8%

$84.1 Billion

Loans

89.2%

$693.7 Billion

Loans

Non-Loans

figure 3
2007 2008 2009 2010 2011

$ 0.0

$ 20

$ 40

$ 60

$ 80

$ 100

$ 120

$ 140

$160

$64.9 $74.5 $107.2 $103.6 $131.0

Governmentwide Delinquencies

Fiscal Year

Dollars in Billions

$19.6 $21.1 $48.9 $34.3 $49.7

$18.6 $23.2 $24.1 $29.7 $37.7

$12.0 $12.7 $20.5 $22.9 $26.5

$5.0 $6.1 $4.5 $5.6 $5.2

$9.6

1-180 Days

181 Days - 2 Years

2-6 Years

6-10 Years

> 10 Years $11.4 $9.2 $11.3 $11.9

2007

$10

$0

$20

$30

40

$$50

$60

Aging of Governmentwide Delinquencies

2008 2009 2010 2011

Dollars in Billions

Fiscal Year

4 FY 2011 REPORT TO THE CONGRESS: U.S. GOVERNMENT RECEIVABLES 

AND DEBT COLLECTION ACTIVITIES OF FEDERAL AGENCIES

source: treasury report on receivables and debt

collection activities — fourth quarter fy 2011

source: treasury report on receivables and debt

collection activities — fourth quarter fy 2011

III. Delinquent Non-Tax Debts Owed to the United States

Along with the increase in receivables, delinquencies at the end of FY 

2011 rose to $131 billion, an increase of $27.4 billion, or 27%, from the 

previous year.

A. By Age

The majority of delinquent non-tax 

debts owed to the Federal government 

at the end of FY 2011, $87.5 billion of the 

total portfolio, were less than two years 

delinquent. Debts delinquent more than six 

years totaled $17.1 billion.

figure 4

figure 5
Agency FY 2011

Education

SBA

HUD

DOD

SSA

Delinquencies : Top Five Agencies

(in billions)

% Change from FY 2010

$92.1 + 29%

$6.6 + 12%

$5.6 + 224% *

$5.3 + 2%

$4.7 + 12%

Total of Above

Total Government

$114.2 + 29%

$131.0 + 27%

Delinquencies : Top Five Agencies

Education

70%

Others

SSA 13%

4%

DOD

4%

HUD

4%

SBA

5%

SSA

Others

DOD

HUD

SBA

Education

5 FY 2011 REPORT TO THE CONGRESS: U.S. GOVERNMENT RECEIVABLES 

AND DEBT COLLECTION ACTIVITIES OF FEDERAL AGENCIES

At the end of FY 2011, $114.2 billion (87%) 

of the government’s delinquent debts 

were owed to five agencies: Education, Small 

Business Administration (SBA), Department 

of Housing & Urban Development (HUD), 

Department of Defense (DOD), and Social 

Security Administration (SSA), as shown in the 

accompanying table and its related chart.

source: treasury report on receivables and debt collection activities — fourth quarter fy 2011

source: treasury report on receivables and debt collection

activities — fourth quarter fy 2011

B. By Agency

* The significant increase in HUD’s delinquent debt portfolio was driven primarily by large volume defaults under the 

Government National Mortgage Association (GNMA) loan program and HUD’s housing loan programs (Elderly and 

Handicapped, Title I, Single Family, and Multi-Family).

figure 6

figure 7
Receivables in Billions Delinquencies in Billions

0 %

50 %

100 %

Distribution of Receivables and Delinquencies as of 9/30/11

$84.1 $23.7

$64.9 $41.7

$628.7 $65.6

Administrative Debt

Defaulted Guaranteed Loans *

Direct Loans

6 FY 2011 REPORT TO THE CONGRESS: U.S. GOVERNMENT RECEIVABLES 

AND DEBT COLLECTION ACTIVITIES OF FEDERAL AGENCIES

At the end of FY 2011, Federal loan program delinquencies comprised 82% of total delinquencies, down slightly 

from 83% at the end of FY 2010.

source: treasury report on receivables and debt collection activities — 

fourth quarter fy 2011

C. By Debt Type

* Receivables amount includes rehabilitated loans

figure 8
7 FY 2011 REPORT TO THE CONGRESS: U.S. GOVERNMENT RECEIVABLES 

AND DEBT COLLECTION ACTIVITIES OF FEDERAL AGENCIES

IV. Delinquent Debt Collection Activities

A. Administrative Wage Garnishment (AWG) Collections

Federal agencies are authorized to garnish a delinquent debtor’s non-Federal wages without obtaining a court order 

(See, 31 U.S.C. § 3720D). This process is known as “administrative wage garnishment.” Private collection agencies 

may assist Treasury and other agencies in the initiation of an administrative wage garnishment. The goal of AWG is 

to ensure that every employed debtor is repaying his or her debts owed to the United States. Before issuing an AWG 

order, agencies must first provide a debtor with notice and an opportunity to enter into a repayment agreement, dispute 

the debt, or object to the intended garnishment action. In FY 2011, Federal agencies collected $295.9 million through 

the use of AWG. Of that total, Treasury collected $27.2 million on behalf of the Federal agencies participating in the 

Cross-Servicing Program.

Federal agencies are authorized to contract with PCAs to collect delinquent non-tax debts owed to the United 

States (See, 31 U.S.C. § 3718). PCAs assist Federal agencies in many ways, including by establishing repayment 

agreements and resolving debts administratively when a debtor is deceased, unable to pay, disabled, bankrupt, or out of 

business.

	 	

• Treasury contracts with PCAs to collect delinquent non-tax debts referred by Federal agencies participating in 

Treasury’s Cross-Servicing Program. In FY 2011, Treasury’s PCAs collected $93 million, an increase of 3% over 

FY 2010. Referrals totaled $7.9 billion.

• Education contracts with PCAs to assist in collecting defaulted student loan debts. In FY 2011, Education’s 

PCAs collected $2.6 billion, an increase of 12% over FY 2010. Referrals totaled $31.35 billion.

• HHS’s Program Support Center (PSC) contracts with a PCA to collect delinquent debts. PSC’s PCA referrals 

and collections increased in FY 2011 due to health profession guaranteed loan referrals and referrals of delinquent 

repatriation debts arising from the evacuation of U.S. citizens from Haiti following the earthquake in January 

2010. 

B. Private Collection Agency (PCA) Referrals and Collections

I

n FY 2011, Federal agencies collected $18.3 billion of delinquent non-tax debt using a variety of tools. Collection tools 

include offset, administrative wage garnishment, litigation, asset sales, and utilization of private collection agencies. 

In addition, Federal agencies are generally required to refer their debts to Treasury for collection as soon as the debts 

become 180 days delinquent.
8 FY 2011 REPORT TO THE CONGRESS: U.S. GOVERNMENT RECEIVABLES 

AND DEBT COLLECTION ACTIVITIES OF FEDERAL AGENCIES

Agency FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 

HHS $69 $35 $51 $17 $46

Treasury $3,341 $4,454 $6,379 $6,984 $7,904

Education $18,982 $23,863 $24,470 $28,845 $31,350

Totals $22,392 $28,352 $30,900 $35,846 $39,300

Referrals to PCAs

(in millions)

1. Referrals to PCAs

sources: department of health and human services, program support center

 department of the treasury, financial management service

 department of education, default resolution group

sources: department of health and human services, program support center

 department of the treasury, financial management service

 department of education, default resolution group

Agency FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 

HHS $7.4 $3.8 $2.2 $1.7 $2.9

Treasury1 $74.6 $82.8 $132.1 $90.3 $93.0

Education1,2 $2,046.0 $2,291.0 $2,416.0 $2,354.0 $2,644.0

Totals $2,128.0 $2,377.6 $2,550.1 $2,446.0 $2,739.9

Total Collections by PCAs

(in millions)

2. Collections by PCAs

1 Includes collections by administrative wage garnishment from employed debtors

2 Includes loan consolidations and rehabilitations

figure 9

figure 10
$61.6 $71.7 $83.3 $97.7 $112.9

$35.6 $44.8 $49.8 $60.2 $68.6

$9.6 $10.9 $12.4 $17.6 $20.4

Required 

Referral to TOP

Required 

Referral to C/S

180 + Days

Delinquent

2007

$20

$0

$40

$60

$80

$100

$120

Debts Required to be Referred to Treasury

2008 2009 2010 2011

Dollars in Billions

Fiscal Year

figure 11

9 FY 2011 REPORT TO THE CONGRESS: U.S. GOVERNMENT RECEIVABLES 

AND DEBT COLLECTION ACTIVITIES OF FEDERAL AGENCIES

C. Department of the Treasury’s Debt Collection Programs

Generally, Federal agencies are required to refer non-tax debts more than 180 days delinquent to Treasury for 

collection through its Treasury Offset Program (TOP) and its Cross-Servicing Program. For debts submitted to 

TOP, Treasury intercepts eligible Federal and state payments and applies them to a payee’s delinquent debts. For debts 

submitted to its Cross-Servicing Program, Treasury contacts debtors by demand letters and telephone calls, negotiates 

payment agreements, submits debts to TOP, refers debts to private collection agencies and the Department of Justice, 

reports debts to credit bureaus, and initiates administrative wage garnishment. Before submitting a debt to Treasury, 

agencies must send the debtor a notice describing the debt, the collection actions to be taken, and the opportunities 

available to the debtor to repay or challenge the debt.

Certain types of debts are ineligible for referral to TOP or Cross-Servicing, including debts owed by foreign sovereigns, 

debts that are the subject of an appeal, forbearance agreement, litigation, foreclosure, or bankruptcy. Certain other debts 

are eligible for TOP and Cross-Servicing, but are exempt from the general mandatory requirement that they be referred 

to Cross-Servicing, including debts being serviced by a PCA, debts being collected by internal offset or administrative 

wage garnishment, and Treasury-exempted debts.

At the end of FY 2011, of the $112.9 

billion in non-tax debts more than 

180 days delinquent, $68.6 billion 

were required to be submitted 

to TOP, an increase of $8.4 

billion from the end of FY 2010. 

Delinquent debts totaling $20.4 

billion were required to be submitted 

to Treasury’s Cross-Servicing 

Program, an increase of $2.8 billion 

over FY 2010. Of the $112.9 billion, 

$31.7 billion have been written off 

for accounting purposes, but are still 

eligible for collection.

source: treasury report on receivables and debt collection activities

— fourth quarter fy 2011
2007 2008 2009 2010 2011

$0

$50

$100

$150

$45.05 $49.18 $67.16 $94.54 $112.47

Federal Non-Tax Debt Referrals to TOP

Dollars in Billions

Fiscal Year

Payment Type FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 

Federal Tax Refund $1,195.0 $1,948.0 $1,400.0 $1,852.0 $2,180.0

Federal Nontax Payments $182.6 $216.2 $511.9 $313.0 $390.0

State Payments N/A $5.5 $12.2 $12.4 $7.4

Totals $1,377.6 $2,169.7 $1,924.0 $2,177.4 $2,577.4

TOP Collections of Federal Non-tax Debt by Payment Type

(in millions)

1. Referrals to TOP

In FY 2011, $112.5 billion in Federal 

non-tax debts were submitted to TOP, a 

19% increase over FY 2010.1

1 In addition to collecting Federal non-tax debt, TOP is used to collect delinquent Federal taxes and state debts, including 

delinquent child support obligations. In FY 2011, $211.3 billion in Federal tax debts and $132.4 billion in state debts were referred 

to TOP. See Appendix IV for more information.

In FY 2011, Treasury collected, through TOP, $2.6 billion in non-tax debts owed to Federal agencies.2

TOP-eligible payments include Federal tax refunds, Social Security, retirement, salary, vendor, and other Federal 

payments, as well as state tax refunds and other payments made by several states participating in TOP.

2. TOP Collections

source: department of the treasury, financial management service

source: department of the treasury, financial management service

2 In addition, Treasury collects delinquent Federal taxes and debts owed to state agencies, including delinquent child support 

obligations, through TOP. In FY 2011, Treasury collected $614 million in delinquent Federal tax debt and $2.8 billion for state 

agencies, including $2.3 billion in delinquent child support in all 50 states and the District of Columbia. Treasury collects child 

support obligations in collaboration with the Department of Health and Human Services’ Office of Child Support Enforcement. 

Treasury collects delinquent state income tax obligations for 40 states and the District of Columbia. In February 2011, Treasury 

began collecting unemployment compensation debts for states through TOP. See Appendix IV for more information.

figure 12

figure 13

10 FY 2011 REPORT TO THE CONGRESS: U.S. GOVERNMENT RECEIVABLES 

AND DEBT COLLECTION ACTIVITIES OF FEDERAL AGENCIES
2007 2008 2009 2010 2011

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

$20

$22

$9.3 $11.5 $13.9 $17.7 $19.1

Cross-Servicing Referrals

Dollars in Billions

Fiscal Year

figure 14

figure 15

source: department of the treasury, financial management service

2007 2008 2009 2010 2011

$0

$50

$100

$150

$200

$250

$300

$350

Cross Servicing Collections Including PCA and TOP

$36.1

$20.5 $27.3 $32.9 $45.3

$90.3 $93.0

$93.2

$79.2

$60.7

$132.1

$116.5

$82.8

$69.8

$74.6

$36.1

$74.6

$20.5

$69.8

$82.8

$27.3

$116.5

$132.1

$60.7

$79.2

$90.3

$32.9

$93.2

$93.0

$45.3

TOP

PCA

DMS

Dollars in Millions

Fiscal Year

11 FY 2011 REPORT TO THE CONGRESS: U.S. GOVERNMENT RECEIVABLES 

AND DEBT COLLECTION ACTIVITIES OF FEDERAL AGENCIES

3. Referrals to the Cross-Servicing Program

As of September 30, 2011, the active Federal 

delinquent debt inventory in the CrossServicing Program was $19.1 billion, an 8% 

increase from the prior fiscal year. In FY 2011, 

Federal agencies referred a total of $3.6 billion 

to the program.

source: department of the treasury, financial management service

In FY 2011, Treasury collected $231 million through its Cross-Servicing Program. Of that amount, $45.3 million 

was recovered by employees of Debt Management Services (DMS), an area within Treasury’s FMS, $93 million was 

collected by Treasury’s PCAs, and $93.2 million was collected through TOP.

4. Cross-Servicing Collections
figure 16

Fiscal Year Total Civil 

Referrals (new)

Value of New Debts

(in billions)

2007

2008

2009

2010

2011

9,718 $5.0

11,559 $3.8

11,088 $5.2

11,531 $7.6

16,487 $6.1

Referrals to DOJ

figure 17

source: department of justice, office of debt collection

management

2007 2008 2009 2010 2011

Fiscal Year

$0

$1

$2

$3

$4

$5

$6

$3.0 $2.8 $2.9 $4.8 $4.9

Civil Litigation Cash Collections 

Dollars in Billions

12 FY 2011 REPORT TO THE CONGRESS: U.S. GOVERNMENT RECEIVABLES 

AND DEBT COLLECTION ACTIVITIES OF FEDERAL AGENCIES

source: department of justice, office of debt collection

management

When a Federal agency cannot collect a debt 

administratively, the agency may refer the debt 

to DOJ to pursue enforced collection through the 

courts.3

In FY 2011, Federal agencies referred 16,000 cases 

totaling $6.1 billion to DOJ for enforced collection.

D. Enforced Debt Collection by the Department of Justice (DOJ)

1. Referrals to DOJ

3 DOJ is responsible for instituting and defending litigation on behalf of most Federal agencies. Some agencies have independent 

litigation authority, which allows agencies to institute and defend their own cases in court. Information on judicial collections from 

agencies with independent litigation authority is included in this report as part of total DOJ collections.

In FY 2011, DOJ collected $4.9 

billion for Federal agencies through 

enforced collection.

2. Collections by DOJ
Fiscal Year

2007 2008 2009 2010 2011

$0

$3

$6

$9

$12

$15

$6.92 $8.58 $8.75 $10.29 $12.00

Total Education Delinquent Debt Collections 

Dollars in Billions

source: department of education, default resolution group

figure 18

13 FY 2011 REPORT TO THE CONGRESS: U.S. GOVERNMENT RECEIVABLES 

AND DEBT COLLECTION ACTIVITIES OF FEDERAL AGENCIES

E. Department of Education Student Loans

The Department of Education collects 

delinquent student loans directly and 

through a network of Guaranty Agencies (GAs). 

Education’s Default Resolution Group (DRG) 

services Education’s defaulted student loans 

(loans delinquent more than 270 days) and a 

small number of student grant overpayments. 

DRG uses a variety of debt collection 

tools, including private collection agencies, 

administrative wage garnishment, and offset. The 

GAs manage current loans and collect defaulted 

loans using the same tools as DRG. Education 

works with the GAs to ensure that all eligible 

debts are certified to TOP in order to maximize 

the potential for collection.
figure 19

14 FY 2011 REPORT TO THE CONGRESS: U.S. GOVERNMENT RECEIVABLES 

AND DEBT COLLECTION ACTIVITIES OF FEDERAL AGENCIES

Collection 

Tools

FY 2007 

Collections

FY 2008 

Collections

FY 2009 

Collections

FY 2010 

Collections

FY 2011 

Collections

Private Collection Agency (PCA):

Regular Collections $368 $376 $318 $300 $362

PCA: Administrative

Wage Garnishment (AWG) $271 $296 $317 $339 $349

PCA: 

Loan Consolidations $155 $212 $367 $367 $476

PCA: 

Loan Rehabilitations $1,252 $1,406 $1,348 $1,347 $1,457

Dept of Justice:

Litigation $13 $11 $9 $9 $10

DRG:

Internal Oset $.1 $.1 $.1 $.1 $.5

DRG/GAs:

AWG $435 $522 $607 $621 $662

DRG/GAs:

Treasury Oset Program $844 $1,374 $1,120 $1,408 $1,651

DRG/GAs:

Regular Collections $643 $704 $718 $736 $785

DRG/GAs:

Loan Consolidations $1,168 $1,360 $1,930 $2,039 $2,545

DRG/GAs:

Total Loan Rehabilitations $1,771 $2,315 $2,018 $3,127 $3,707

Totals $6,920 $8,576 $8,752 $10,293 $12,004

Education Collections by Debt Collection Tool - 5 Year Comparison

(in millions)

Notes: 

1. PCA data is for the DRG portfolio only. Education does not require the GAs to report the portion of their 

collections attributed to their PCAs.

2. PCAs are authorized to use AWG on Education’s behalf.

3. Loan rehabilitation occurs when a debtor makes at least nine (9) full payments of an agreed amount within 10 

months, and is the preferred collection method when a borrower is unable to make a one-time payment in full.

4. “DRG Internal Offset” represents collections through Education’s non-centralized Federal Employee Salary 

Offset Program. While DRG now participates in the centralized TOP, which includes the offset of Federal salary 

payments, the former program is still receiving payments. DRG has recovered approximately $3 million dollars from 

Federal salaries through TOP’s centralized process since the inception of the program in FY 2010.

source: department of education, default resolution group
Fiscal Year

2007 2008 2009 2010 2011

$0

$.5

$1

$1.5

$2

$2.5

$1.79 $1.81 $1.60 $1.42 $1.38

Referrals to PSC

Dollars in Billions

2007 2008 2009 2010 2011

$0

$100

$200

$300

$400

$500

$600

$351.4 $291.5 $353.2 $401.0 $423.7

PSC Collections

Dollars in Millions

Fiscal Year

figure 20

figure 21

15 FY 2011 REPORT TO THE CONGRESS: U.S. GOVERNMENT RECEIVABLES 

AND DEBT COLLECTION ACTIVITIES OF FEDERAL AGENCIES

source: department of health and human services, program support

center

source: department of health and human services, program support

center

I

n 1995, the U.S. Department of 

Health and Human Services (HHS) 

established the Program Support Center 

(PSC), Debt Collection Center. The 

PSC is a Treasury-designated debt 

collection center that collects debts on 

a fee-for-service basis for 11 different 

agencies within HHS and several 

agencies outside of HHS. In addition, 

the PSC serves as the HHS conduit 

for referrals to Treasury for both TOP 

and Cross-Servicing. Collections since 

inception of the PSC debt collection 

program have exceeded $5 billion.

F. Department of Health and Human Services Program Support Center
Fiscal Year

2007 2008 2009 2010 2011

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

$20

$6.4 $9.4 $9.6 $11.4 $13.8

Total Write-Os 

Dollars in Billions

figure 22

16 FY 2011 REPORT TO THE CONGRESS: U.S. GOVERNMENT RECEIVABLES 

AND DEBT COLLECTION ACTIVITIES OF FEDERAL AGENCIES

source: treasury report on receivables and debt collection

activities — fourth quarter fy 2011

V. Write-Offs Of Delinquent Debts

Agencies are generally required to 

“write-off” debts that are two years 

delinquent (See Office of Management 

and Budget Circular A-129). By writing 

off their uncollectible debts, agencies 

more accurately reflect the value of their 

receivables on the books of the United 

States.

In FY 2011, write-offs totaled $13.8 

billion, an increase from FY 2010 

of $2.4 billion, or 21%. The agencies 

with the largest write-off amounts in 

FY 2011 include the Department of 

Education ($4.1 billion), Small Business 

Administration ($2.5 billion) and Social 

Security Administration ($1 billion).
Agency Receivables Balance 

as of 9/30/2011

FY 2011 

Collections

Education $504,697 $56,157

USDA $116,152 $24,050

Treasury $21,621 $13,936

HUD $19,047 $9,758

SBA $16,644 $2,156

SSA $15,855 $3,633

HHS $14,515 $39,412

DOD $11,576 $9,354

Energy $10,978 $9,725

Export-Import Bank $9,918 $1,130

Top 10 Total $741,001 $169,310

All Other $36,761 $69,805

Government Total $777,762 $239,115

Total Federal Receivables and Collections by Agency

(in millions)

17 FY 2011 REPORT TO THE CONGRESS: U.S. GOVERNMENT RECEIVABLES 

AND DEBT COLLECTION ACTIVITIES OF FEDERAL AGENCIES

Appendix I: Total Federal Receivables and Collections by Agency

At the end of FY 2011, 95% of Federal receivables arose from programs managed by the 10 agencies listed below. The 

remaining 5% of Federal receivables arose from all other programs.

source: treasury report on receivables and debt collection activities — fourth

quarter Y 20
Agency Delinquent Debt Balance 

as of 9/30/2011

FY 2011 

Collections

Education $92,045 $7,419

SBA $6,594 $459

HUD $5,585 $2,971

DOD $5,292 $1,959

SSA $4,664 $134

USDA $4,249 $1,043

HHS $1,974 $1,175

EPA $1,899 $546

Export-Import Bank $1,695 $182

Funds Appropriated to the President $1,632 $966

Top 10 Total $125,630 $16,854

All Other $5,369 $1,419

Government Total $130,999 $18,273

Total Federal Delinquent Debts and Collections by Agency

(in millions)

18 FY 2011 REPORT TO THE CONGRESS: U.S. GOVERNMENT RECEIVABLES 

AND DEBT COLLECTION ACTIVITIES OF FEDERAL AGENCIES

Appendix II: Total Federal Delinquent Debts and Collections by Agency

At the end of FY 2011, 96% of Federal delinquent debt arose from programs managed by the 10 agencies listed 

below. The remaining 4% of Federal delinquent debt arose from all other programs.

source: treasury report on receivables and debt collection activities — fourth

quarter Y 20
Appendix III: Total Federal Write-Offs by Agency 

I

n FY 2011, 90% of Federal debt write-offs arose from programs managed by the 10 agencies listed below. The 

remaining 10% of Federal debt write-offs arose from all other programs.

19 FY 2011 REPORT TO THE CONGRESS: U.S. GOVERNMENT RECEIVABLES 

AND DEBT COLLECTION ACTIVITIES OF FEDERAL AGENCIES

Agency FY 2011

Write-O
s

Education $4,086

SBA $2,464

SSA $1,018

Export-Import Bank $960

HHS $934

VA $869

DHS $769

FTC $613

DOD $487

HUD $237

Top 10 Total $12,436

All Other $1,342

Government Total $13,779

Total Federal Write-O
s By Agency 

(in millions)

source: treasury report on receivables and debt collection

activities — fourth quarter Y 20
Appendix IV: Treasury Offset Program (TOP) Referrals and Collections Including Debts Owed 

to the Internal Revenue Service and State Agencies

Treasury Offset Program

The Treasury Offset Program (TOP) is the centralized process through which Treasury and other disbursing 

agencies reduce, or “offset” eligible Federal and state payments, including tax refund payments, to a debtor to satisfy 

the debtor’s past-due Federal non-tax debt and debts owed to state agencies, including child support and unemployment 

insurance obligations. In addition, the Federal Payment Levy Program, processed through TOP, allows the Internal 

Revenue Service (IRS) to continuously levy Federal payments due to delinquent Federal taxpayers. 

 TOP highlights include:

• In FY 2011, more than $6 billion was collected through TOP for Federal and state agencies.

• Child support obligations are submitted to TOP by states through the Department of Health & Human Services, 

Office of Child Support Enforcement. 

• As of September 30, 2011, forty (40) states and the District of Columbia were participating in TOP’s state income 

tax program, whereby Federal tax refunds are offset to collect delinquent state income tax obligations.4

• Four states participate in TOP’s State Reciprocal Program whereby eligible Federal payments are intercepted to 

collect debts owed to states, and states intercept state payments to collect delinquent non-tax Federal debts. At 

least two additional states are expected to join the program in FY 2012, and several others have expressed interest.

• At the end of FY 2011, Federal tax refunds were being offset to collect unemployment compensation debts owed 

to three states since the program began in February 2011. Other states continue to join the program.

• Through the tax levy program, $614 million of unpaid Federal taxes were collected by TOP.

20 FY 2011 REPORT TO THE CONGRESS: U.S. GOVERNMENT RECEIVABLES 

AND DEBT COLLECTION ACTIVITIES OF FEDERAL AGENCIES

4 Nine (9) states do not have an income tax.
Sep. 2007 Sep. 2008 Sep. 2009 Sep. 2010 Sep. 2011

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

Debt Referrals to the Treasury Oset Program

$45.05

$156.41

$7.92

$49.18

$171.59

$10.33

$67.16

$186.11

$9.55

$94.54

$203.90

$11.45

$112.47

$211.31

$13.27

$92.89

N/A

N/A

$100.10

N/A

N/A

$107.86

N/A

$2.06

$110.16

N/A

$2.18

$112.91

$.21

Other State Debt $6.04

State Unemployment Debt

Child Support Debt

State Income Tax Debt

Federal Tax Debt

Federal Nontax Debt Dollars in Billions

figure 23

21 FY 2011 REPORT TO THE CONGRESS: U.S. GOVERNMENT RECEIVABLES 

AND DEBT COLLECTION ACTIVITIES OF FEDERAL AGENCIES

The amount of Federal and state debt in TOP totaled $456.2 billion as of September 30, 2011.

Referrals to TOP

source: department of the treasury, financial management service
Type of 

Payment Oset

Type of

Debt FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

Tax Refund Oset Federal 

Debt

Total Federal

Total State

State

Debt

Federal 

Non-tax Debt

Federal 

Non-tax Debt

Federal 

Tax Debt

Child

Support

State Income

Tax Debt

State Unemployment 

Compensation Debt

State Income Tax 

Debt (Reciprocal 

Program)

Other State Debt

(Reciprocal Program)

Child

Support

$1,195.0 $1,948.0 $1,400.0 $1,852.0

Administrative Oset

(Federal + State Payments)

Tax Levy

(Federal Payments)

$182.6 $221.7 $524.0 $312.8

$343.0 $400 $497.0 $617.9

$1,720.6 $2,569.7 $2,421.0 $2,782.7

Tax Refund Oset $1,696.0 $2,830.0 $2,066.0 $2,086.0

Tax Refund Oset $219.0 $358.0 $368.0 $435.1

Tax Refund Oset N/A N/A N/A N/A

Administrative Oset $4.2 $4.6 $5.0 $8.3

Administrative Oset N/A $19.6 $13.0 $9.1

Administrative Oset N/A $18.6 $12.0 $7.4

$2,180.0

$390.4 *

$614.3

$3,184.7

$1,919.2 $3,230.8 $2,464.0 $2,545.9 $2,849.5

$2,302.0

$475.0

$25.9

$10.4

$7.4

$28.8

Total Collected $3,640 $5,801 $4,885 $5,329 $6,034

TOP Collections

(in millions)

22 FY 2011 REPORT TO THE CONGRESS: U.S. GOVERNMENT RECEIVABLES 

AND DEBT COLLECTION ACTIVITIES OF FEDERAL AGENCIES

Collections by TOP

source: department of the treasury, financial management service

*

FY 2011 “Administrative Offset — Federal Non-tax Debt” includes collections in the amount of $7.4 million of Federal non-tax 

debt by states under the Federal-State Reciprocal Offset Program.
23 FY 2011 REPORT TO THE CONGRESS: U.S. GOVERNMENT RECEIVABLES 

AND DEBT COLLECTION ACTIVITIES OF FEDERAL AGENCIES

Appendix V: Sources of Data

Data contained in this report were obtained from the following sources:

Treasury Report on Receivables and Debt Collection Activities — Fourth Quarter 2011, as reported by Federal 

agencies to the Department of the Treasury.

Part II - Receivables Owed to the United States

Part III - Delinquent Non-Tax Debts Owed to the United States

Part V - Write-Offs of Delinquent Debts

Appendix I-III

Department of the Treasury, Financial Management Service

Part IV - Delinquent Debt Collection Activities

Appendix IV

Department of Education, Default Resolution Group

Part IV - Delinquent Debt Collection Activities

Department of Health and Human Services, Program Support Center

Part IV - Delinquent Debt Collection Activities

Department of Justice, Office of Debt Collection Management

Part IV - Delinquent Debt Collection Activities