GFEBS Debt Management Questions and Answers 100% Pass

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GFEBS Debt Management Questions and Answers 100% Pass Treasury Reporting: Reason Status Codes ✔✔Reason Status codes assist with the preparation of the TROR. Reason Status codes indicate the sta... te of the debt throughout the debt lifecycle and assist the accounting system with determining how to categorize the debt. Changes in the reason status code occur through business events or are manually entered into the accounting system. These changes also occur via interfaces from entitlement and revenue systems When is interest applied? ✔✔Interest is applied 30 days after the debit notice due date (i.e., day 31). Additional interest will accrue for each 30 day period until payment is received. The interest calculation program is automatically executed on a daily basis, but only updates the account every 30 days. In the process of fully collecting a debt that includes principal, interest, fees, and penalties the remittances received are first applied to reduce penalties, fees, interest, and then principal. How is interest applied? ✔✔The Run Interest Calculation Program is run automatically. It can be manually run by the Debt Management Processor if needed. Interest accrues continually until the debt is collected or written off. Who determines the applied interest amount? ✔✔The U.S. Treasury requires the Current Value of Funds Rate (CVFR) to be used as the interest rate. When the debt record is created the interest rate (%) is assigned to the accounts receivables record. The rate is fixed for the life of the debt. CVFR ✔✔Current Value of Funds Fees ✔✔are assessed to cover the additional costs incurred in handling a debt beyond the date on which payment was due. They are applied only if payment is not made by the due date specified on the billing form and / or demand letter. The DoD components calculate fees based upon actual costs incurred. If the actual cost is not available, fees may be determined by historical costs or by the cost analysis method that supports determination of the charge. Penalties ✔✔are charges on delinquent debt to discourage delinquencies and encourage early payment of the debt in full. The rate to be assessed is set by law at more than six percent per year and is assessed on the portion of a debt remaining delinquent for more than 90 days. The charges will accrue and be assessed from the date of delinquency. Who processes installment plans and when? ✔✔If a debtor requests an installment plan and Defense Finance and Accounting Services (DFAS) receives the request before or by the due date, the required documents are evaluated to determine whether the customer meets the requirements for an installment plan. The Debt Management Processor receives the installment plan decision and if the installment plan request is approved, enters the required information in GFEBS Installment plans guidelines ✔✔First, installment guidelines include documentation from the debtor that he / she is financially unable to pay in a lump sum. Second, installment plans require monthly payments with an overall repayment period not to exceed 3 years, unless an exception is grant [Show More]

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