NASA Procedures and Guidelines
This Document is Obsolete and Is No Longer Used. Check the NODIS Library to access the current version: http://nodis3.gsfc.nasa.gov
NPR 9610.1A Eff. Date: October 29, 2015 Cancellation Date:	Accounts Receivable, Billing, and Collection
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Appendix A. Definitions

Accounts Receivable (Account Number 131000). Accounts receivable are the receivables or amounts due from others when the right to receive funds accrues. Receivables include, but are not limited to, monies due for indebtedness, work performed for other parties, overpayments to vendors or to employees, dishonored checks, interest, fees, claims, damages, or any other event resulting in a debt owed to NASA.

Administrative Charges for Delinquent Debt. Administrative charges for delinquent debt represent the additional costs incurred in processing and handling delinquent debts. The amount charged is based on actual costs incurred or on cost analyses, which established average actual additional costs.

Administrative Offset (as defined in 31 U.S.C. § 3701(a)(1)). Administrative Offset is the process of withholding funds payable by the United States (including funds payable by the United States on behalf of a state government) to, or held by the United States for, a person to satisfy a claim. The payee may be a natural person or persons, profit or non-profit corporation, partnership, association, trust, estate, consortium, or other entity that is capable of owing a debt to the United States Government except that agencies of the United States or of any state or local government will be excluded.

Allowance for Loss on Accounts Receivable (Account Number 131900). Allowance for Loss on Accounts Receivable represents the estimated amount of uncollectible accounts receivable from the public so that receivables can be reported at their net realizable value, (i.e., net an estimate of receivables reasonably likely to become uncollectible). Increase the account by the amount estimated to be uncollectible. Decrease the account by the actual amount subsequently written-off. The amount should consider outstanding advances. The normal balance for this account is a credit.

Allowance for Loss on Interest Receivable (Account Number 134900). The Allowance for Loss on Interest Receivable represents the estimated amount of uncollectible Interest Receivables so that Interest Receivables can be reported at their net realizable value. The process for determining an allowance for uncollectible amounts will be based on an historical analysis of interest receivables that have been determined to be uncollectible. Increase the account by the amount estimated to be uncollectible. Decrease the account by the actual amount subsequently written-off. The normal balance for this account is a credit.

Allowance for Loss on Penalties, Fines, and Administrative Fees Receivable (Account Number 136900). This represents the estimated amount of uncollectible Penalties, Fines, and Administrative Fees Receivable so that Penalties, Fines, and Administrative Fees Receivable can be reported at their net realizable value. The process for determining an allowance for uncollectible amounts will be based on an historical analysis of Penalties, Fines, and Administrative Fees Receivable that have been determined to be uncollectible. Increase the account by the amount estimated to be uncollectible. Decrease the account by the actual amount subsequently written-off. The normal balance for this account is a credit.

Close-out. Close-out (also known as Discharge) occurs when NASA decides to stop all current and potential future efforts to collect on a debt. The amount of the debt is reported to the IRS as income to the debtor on Form 1099-C, Cancellation of Debt. Close out may occur concurrently with the writeoff of an account, or at a later date, depending on the collection strategy and the ultimate determination that the debt has been discharged. If collection efforts are closed out, collections on the debt will be terminated first.

Collection Actions. Collection actions include issuance of demand letters and referral to debt collection entities such as the Department of the Treasury.

Collection Mechanism. A collection mechanism is a tool or system by which monies owed to NASA are transferred or credited to NASA from the Public or another agency.

Currently Not Collectible (CNC). Debts that have been written-off but where the Agency intends to continue cost effective debt collection action.

Date of Delinquency. The date of delinquency is the payment due date for an installment payment and the date of mailing of notice for an administrative debt.

Debt Compromise. A debt compromise is an agreement between the debtor and NASA that settles the debtor's liability for less than the full amount of the debt.

Debtor. A debtor is any person, organization, or entity, other than another Federal agency that owes an amount of money to NASA.

Delinquent Debt. Delinquent debt is any debt not paid by the date specified in the initial written notification or applicable contractual agreement, (including a post-delinquency payment agreement) unless other payment arrangements have been made.

Delinquent Receivables. Delinquent accounts receivable are receivables that have not been paid by the date specified in the initial written demand for payment or applicable agreement unless other payment arrangements have been made. Receivables which are delinquent are aged from the payment due date. If a payment "grace" period is provided and expires without payment, then the receivable becomes delinquent from the original payment due date.

Demand Letter. A demand letter is a written notification sent to a debtor, when the initial billing is not paid within 30 days, requiring the debtor to make payment. The demand letter informs the debtor of both the consequences of failure to liquidate the debt, and the due process provisions that are applicable to the debt.

IPAC System. The IPAC system is an automated system used to electronically bill and collect for services rendered and supplies delivered to other Federal Agencies. The IPAC system establishes a standardized interagency billing and adjustment procedure via a telecommunication network. Authorized personnel use the IPAC system for billing and collecting from other government agencies. IPAC is designed to preclude the need for agencies to request check payments which create disbursement and collection float costs.

Interest Charges for Delinquent Debt. Interest charges are applied to delinquent debts to compensate the Government for the loss of the use of funds when the debt is not paid by the due date and accrues from the date of the delinquency.

Interest Receivable (Account Number 134000). Interest receivable is the amount owed representing accrued interest charges on delinquent accounts receivable and the normal interest that accrues on loans receivable. This also includes interest accrued on investment securities. The normal balance for this account is a debit.

Intragovernmental Receivables. Intragovernmental receivables are claims of a Federal entity against other Federal entities. The standard business rules that govern intragovernmental receivable billing and reconciliation are contained in NPR 9220.1, Journal Voucher Preparation and Approval and Intragovernmental Transactions

Non-Delinquent Receivables. Non-delinquent (or "current") receivables are receivables outstanding for 30 days or less or those not yet due under the contract or billing document pertaining to the receivable.

Non-Entity Receivables. As defined by SFFAS No. 1, nonentity receivables are amounts that NASA collects on behalf of the U.S. Government or other entities and which NASA is not authorized to spend. Nonentity receivables are reported separately from receivables available to NASA (entity receivables). Nonentity receivables include:

a. Governmental receipts and collections arising from the sovereign and regulatory powers unique to the Federal Government.

b. Receivables related to custodial amounts collected on behalf of other accounts (such as interest on delinquent receivables).

c. Other receivables that NASA is not authorized to credit to its accounts (such as amounts deposited to Miscellaneous Receipts representing collections above full cost on reimbursable billings unless expressly permitted or amounts billed to recover depreciation).

Non-Federal Receivables. Non-Federal receivables are claims of NASA or an entity within the Federal Government against non-Federal entities. The term "non-Federal entities" encompasses public entities, domestic and foreign persons, and organizations outside the U.S. Government. Non-Federal receivables are also called public receivables.

Penalties, Fines and Administrative Fees Receivable (Account Number 1360). This is the amount owed representing penalties, fines, and administrative fees that have been assessed as a result of delinquent accounts receivable and loans receivable. The normal balance for this account is a debit.

Penalty Charges for Delinquent Debt. Penalty charges are applied to any portion of a debt that is outstanding for more than 90 days, including interest and administrative charges. Penalty charges discourage delinquencies and encourage early payment of the delinquent debt in full.

Reimbursements. Reimbursements are amounts earned and collected for goods or services furnished.

Revenue. Revenue comes from two sources: exchange transactions and nonexchange transactions. Exchange revenues arise when an entity provides goods and services to the public or to another Federal entity for a price. Exchange revenue is also known as earned revenue. Nonexchange revenues come primarily from power of the U.S. Government to demand payments from the public, such as taxes, duties, fines, and penalties.

Suspended Debt Collection. Suspended debt collection is the term used to describe the status of a debt when active collection efforts are deferred for a period of time. Center should consider suspension only when evidence indicates that doing so will enhance the chances of collection. During a period of suspension, passive collection may continue when appropriate.

Termination. Termination of collection action means to cease active efforts to enforce recovery of a debt.

Write-off. Write-off is the process of reducing receivables in accounting records as a result of the determination that they are uncollectible. All write-offs will be made through allowance accounts for bad debts. Under no circumstances are debts to be written-off directly to expense. Write-off of debt does not automatically imply the termination of collection efforts. Those should be addressed independently. If a debt is written off, collection efforts could continue. If a determination is made to terminate collection efforts, the debt will be written-off. Write-offs should also be distinguished from reversals of receivables as a result of corrections or a determination that there is not a valid basis for the claim by NASA.

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