Iowa Administrative Code › Agency 877 - Workforce Development Board and Workforce Development Center Administration Division › Chapter 7 - Iowa Workforce Investment Act Program › Rule 877-7.19 - Debt Collection Procedures

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Debt collection begins once the debt has
			 been established by either an audit final determination or financial/program
			 monitoring final decision letter. Debts arising from other forms of oversight
			 will be identified through written communication to the chief elected official
			 board.
(2) If the debt is appealed,
			 debt collection is suspended until that appeal is resolved. If the appeal is
			 granted, debt collection shall not be established.
(3) No earlier than 15 days, but not later
			 than 20 days, after the debt has been established, an initial demand for
			 repayment letter shall be sent to the chief elected official board by certified
			 mail with return receipt requested. The initial demand letter informs the chief
			 elected official board that a debt has been established and references the
			 previous letter that established the debt. When applicable, instructions for
			 requesting a waiver from debt shall be provided in the letter. The chief
			 elected official board shall be granted 15 days from the date of the initial
			 demand letter either to submit payment in full or to forward the applicable
			 request for waiver. If the chief elected official board refuses those options,
			 does not accept the letter, or if no response is received within the required
			 time frame, a final demand for payment shall be issued.
(4) The final demand letter, also sent by
			 certified mail with return receipt requested, shall ask for payment within 10
			 days from the date of that letter. If the chief elected official board refuses
			 the options identified in the final demand letter, does not accept the letter
			 or does not respond, legal action shall be taken. Such action will seek payment
			 of the debt as well as applicable court costs and accrued interest.
(5) The debt collection process is suspended
			 if a request for waiver is received by the department in accordance with waiver
			 policies applicable to that program. If the request for waiver is denied, the
			 debt collection process will continue.
(6) Payment options. Payment options include
			 the following:
a. Payment in full. Payment of
			 debts is generally a one-time cash payment due at the time of final
			 determination by the department. In cases of documented financial hardship or
			 for other reasons as allowed by law, the department may grant repayment as
			 outlined in
"b "
or
"c "
below. However, the
			 department may charge interest on debts from the date they are
			 established.
b. Repayment
			 agreement. A repayment agreement may be negotiated for a time period not to
			 exceed one year. The agreement must be written and signed by both parties. The
			 agreement must include a schedule of payments which includes exact payment
			 dates, amount of debt and each payment, interest, dates of agreement and a
			 requirement for payment in full for breach of the agreement by the chief
			 elected official board.
c.
			 Allocation reduction. Where allowable, a reduction may be made in a chief
			 elected official board's budget to offset a debt. This may be done in cases
			 where the misexpenditure of funds was not due to willful disregard of the Act
			 or regulations, gross negligence, failure to observe accepted standards of
			 administration or a pattern of misexpenditure. Such allocation reductions will
			 come from administrative funds only.