Delegation of Authority and Assignment of Responsibility for Debt Management, 12612 [06-2268]

Agencies

• Office of the Secretary
• DEPARTMENT OF LABOR

[Federal Register Volume 71, Number 47 (Friday, March 10, 2006)]
[Notices]
[Page 12612]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-2268]



[[Page 12611]]

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Part VI





Department of Labor





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Delegation of Authority and Assignment of Responsibility for Debt 
Management; Notice

Federal Register / Vol. 71, No. 47 / Friday, March 10, 2006 / 
Notices

[[Page 12612]]


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DEPARTMENT OF LABOR

Office of the Secretary

[Secretary's Order 05-2006]


Delegation of Authority and Assignment of Responsibility for Debt 
Management

    1. Purpose. To delegate authority and assign overall responsibility 
for debt management to the Department of Labor's Chief Financial 
Officer.
    2. Directives Affected. Secretary's Order 06-1992 is cancelled.
    3. Authority. This order is issued under:
    A. The Debt Collection Improvement Act of 1996, Pub. L. 104-134
    B. The Chief Financial Officers Act of 1990, Pub. L. 101-576
    C. Federal Claims Collections Standards, 31 CFR 900-904 (2005)
    D. Federal Claims Collections Standards, 29 CFR 20 (2005)
    E. OMB Circular A-129, ``Managing Federal Debt Collection 
Programs''
    F. OMB Circular A-123, ``Management's Responsibility for Internal 
Control''
    G. Secretary's Order 01-1997, ``Authority and Responsibility for 
Implementation of Chief Financial Officers Act of 1990 and Related 
Legislation''
    4. Background. The Debt Collection Improvement Act of 1996 
establishes the statutory authority and responsibility for Federal 
agencies to collect and otherwise settle debts owed to the Federal 
Government. Settlement authority delegated to the Chief Financial 
Officer includes authority to compromise, suspend, or terminate 
collection action on debts stemming from program activities not in 
excess of $100,000 (excluding interest, administrative costs, and 
penalties).
    5. Delegation of Authority and Assignment of Responsibility.
    A. The Chief Financial Officer shall:
    (1) Exercise overall authority and assign responsibility for debt 
management within the Department;
    (2) Develop and implement an effective debt management program 
within the Department;
    (3) Develop written policies and guidance that govern the 
Department's debt management program;
    (4) Have the option to compromise, suspend, or terminate collection 
action on debts stemming from program activities not in excess of 
$100,000 (excluding interest, administrative costs, and penalties) 
under provisions of the Federal Claims Collections Standards; and
    (5) Have the option to grant or deny debt waiver requests for the 
recovery of erroneous payments of pay and allowances, and of travel, 
transportation, and relocation expenses and allowances not in excess of 
$100,000.
    B. DOL Agency Heads shall:
    (1) Establish and implement a program for collecting debts 
generated under their agency's programmatic or administrative 
activities, in accordance with applicable laws, regulations, and 
directives;
    (2) Have the option to compromise, suspend or terminate collection 
action on debt stemming from program activities (except for DOL pay and 
allowances, and expenses and allowances related to travel, 
transportation, and relocation) not in excess of $100,000 (excluding 
interest, penalties, and administrative costs) under provisions of the 
Federal Claims Collections Standards;
    (3) Establish and implement a process for compromising, suspending, 
or terminating collection action on debts not in excess of $100,000 
(excluding interest, penalties, and administrative costs);
    (4) Refer administratively uncollectible debts to the U.S. 
Department of Justice, through the U.S. Department of the Treasury 
(Treasury), for litigation or approval to compromise, suspend, or 
terminate collection action on debts in excess of $100,000 (excluding 
interest, penalties, and administrative costs); if the principal amount 
of the debt is $500,000 or less, and the debt has been serviced by 
Treasury in its cross-servicing program, Treasury may approve the 
compromise or termination of collection action;
    (5) Ensure agency compliance with all Federal and Departmental debt 
collection reporting requirements, and with Federal and Departmental 
debt collection policies, procedures, and internal controls; and
    (6) Establish procedures to identify the causes of debts, 
delinquencies, and defaults, and take appropriate action to minimize 
these conditions.
    C. Agency Administrative Officers and OASAM Regional Administrators 
shall:
    (1) Prepare investigative reports on requests for waiver of 
erroneous payments of pay or allowances (under 5 U.S.C. 5584);
    (2) Have the option to grant or deny debt waiver requests for the 
recovery of erroneous payments of pay and allowances, and of travel, 
transportation, and relocation expenses and allowances not in excess of 
$3,000; and
    (3) Make recommendations to the CFO for granting or denying waiver 
requests for the recovery of erroneous payments of pay and allowances, 
and of travel, transportation, and relocation expenses and allowances 
not in excess of $100,000 based on the proper application of law, 
regulation, and precedent in the context of the facts of each case at 
hand.
    D. The Inspector General may advise the CFO, the Deputy CFO, and 
DOL Agency Heads on the appropriate disposition of cases where there 
appears to be an indication of fraud, the filing of a false claim, or a 
misrepresentation on the part of the debtor or any other person having 
an interest in the claim.
    E. The Solicitor of Labor shall advise the CFO and DOL Agency Heads 
on any issue that arises (e.g., applicability of a law, conflict 
between program statutes) with regard to disposition of claims.
    F. The Chief Administrative Law Judge shall provide or arrange for 
an independent hearing official under 29 CFR 20.81 (2005).
    6. Redelegation of Authority. The authorities delegated to the 
Chief Financial Officer may be redelegated in whole or part to the 
Deputy Chief Financial Officer, as deemed appropriate by the Chief 
Financial Officer. DOL Agency Heads may redelegate their authorities to 
senior officials within their respective agencies, consistent with the 
Department's internal control program and with the approval of the CFO. 
Agencies shall submit written proposed delegations for approval by the 
CFO. Approval will be based on adequacy of debt management policies, 
procedures, and operations.
    7. Reservations of Authority.
    A. This Secretary's Order does not affect the authorities and 
responsibilities of the Office of Inspector General under the Inspector 
General Act of 1978, as amended, or Secretary's Order 04-2006 (February 
21, 2006).
    B. This Order does not affect the statutory authorities and 
responsibilities of the Chief Financial Officer under the CFO Act of 
1990.
    8. Effective Date. This Order is effective immediately.

    Dated: March 3, 2006.
Elaine L. Chao,
Secretary of Labor.
[FR Doc. 06-2268 Filed 3-9-06; 8:45 am]
BILLING CODE 4510-23-P