1. From Registration to Accounts Receivable – The Whole Can of Worms 2007 UBO/UBU Conference 1 Briefing: Army Debt Management Date: 22 March 2007 Time:1010-1100

2. 2007 UBO/UBU Conference From Registration to Accounts Receivable 2 Army Debt Management-Objectives Debt Management Processes – Define DM – Players and their responsibilities MSAO Responsibilities – Define Procedures – Collections for transferred accounts – Year-end process – Example Forms and Regulations Questions

3. 2007 UBO/UBU Conference From Registration to Accounts Receivable 3 What is Debt Management? Includes debt for Individuals and beneficiaries of State Health Care Programs (Patient Category: K92) Public Receivables – RSC 930 - Individual debtor State Programs: – RSC 93A - Medicaid/DHHS-D – RSC 93B - State Workman’s Comp – RSC 93C - Misc State Pgms International Military and/or Foreign Civilians: – RSC 93H - GWOT- Civilian/Contractors – RSC 93J - Humanitarian – RSC 93K - International Military/Fmbrs Does not include beneficiaries of Federal Programs MTF received ‘direct funding’ per Resource Summary: Allowance for Doubtful Accounts (AFDA)

4. 2007 UBO/UBU Conference From Registration to Accounts Receivable 4 Debt Management Players HQ MEDCOM – Manage DM subsidiary ledger data base – Process DM-Document Notification RM to record debt official AR DFAS-Rome process J.V. MSAO-Acknowledgment receipt debt package – Run Reports and assist with RECON DFAS-Rome / DFAS-Denver – Facilitate debt pkg to DFAS-DE Ensure debt pkg contain correct documentation LOA are correct – Manage Correspondence between MTF and DFAS-DE – Process J.V. adjustment AR – IPAC OOSD Coll from DFAS-DE Process SF 1081 Reverse DM transactions AR UBO/MSA – Prep account for Transfer Complete ‘Due Process’ Manage CHCS DM files Sort debt pkgs Prepare Source Documents – Assist with correspondence between customer and DFAS-DE – Provide MTF-RM (DM-TACR) info documents – Assist with Year-end AR estimate MTF-Resource Management – Establish reimbursable customer numbers and provide to UBO – Record ‘bad debt’ receivable (DM-DN) in AR – Manage Reverse DM transaction (DM- TACR) and IPAC OOSD Coll in AR – Manage official AR and RECON – Assist with Year-end AR estimate

5. 2007 UBO/UBU Conference From Registration to Accounts Receivable 5 MSAO Responsibility Complete “due process” – Initial invoice and receipt – 30 days, First delinquent letter – 60 days, Second delinquent letter – 90 days, Account eligible for transfer – DFAS-IN Reg 37-1, Chapter 17, para 171606 – DoD FMR, Volume 5, Chapter 28, para 290202 (OOS Individual Debt Collection Procedures) If MSAO deems collections action futile-Unable to contact the debtor – Provide a justification for incomplete due process – DFAS-IN Reg 37-1, Chapter 17, para 171606(a) MSA Accounts with Health Insurance: – Hold account for 6 months – Follow-up with the debtor’s health insurance – ‘Due process’ for debtor’s share of debt

6. 2007 UBO/UBU Conference From Registration to Accounts Receivable 6 MSAO Responsibility 1. Sort debts by FY 2. Sort by NAME/SSN - Batch both Inpatient (FRR) and Outpatient (FOR) together (BATCH by debtor’s medical encounters which can include multiple outpatient visits and admissions). (Reference: 1854-R Transfer Summary, TAB 1) -Continued-

7. 2007 UBO/UBU Conference From Registration to Accounts Receivable 7 MSAO Responsibility 3. Sort debt packages by RSC – 930 - Individual Debt – 93A - State Medicaid Pgm – 93B - State Workman’s Comp Pgm – 93C - Misc State Pgm (VOC) – 93H - GWOT: Civilians and Contractors – 93J - Humanitarian – 93K - International Military and/or their Family Members 4. Sort RSC 930, *93H, and *93K by Dollar Amount of the total ‘batched’ debt (Follow GWOT and International Military/FMBRS guidance) – Accounts Less than $225.00 (Total of ‘Batched’ accounts by debtor) – Accounts Equal or greater than $225.00 (Total of ‘Batched’ accounts by debtor)

8. 2007 UBO/UBU Conference From Registration to Accounts Receivable 8 HQ MEDCOM Debt Packages RSC 930 accounts, less than $225.00 RSC 93A, 93B, 93C, 93H, 93J, 93K accounts; all $ amts. All RSC,$ Amt, Accounts with ‘Bankruptcy Notification’ Debt Package includes: – 1 I&R (Invoice & Receipt) – 2 follow-up DL (Delinquent Letters) – 1 copy of DA 1854-R (Transfer Summary) Maintain original ‘debt package’ and supporting documentation for 6 years, 3 months DA Form 200 (Transmittal Record) Send (ONLY) DA 1854-R (Transfer Summary) to: HQ USA Medical Command ATTN: MCRM-F (Debt Management) 2050 Worth Road, STE 9 Fort Sam Houston, TX 78234-6009

9. 2007 UBO/UBU Conference From Registration to Accounts Receivable 9 DFAS – Rome Debt Packages RSC 930 accounts, equal or greater than $225.00 DFAS-Rome forwards accounts to DFAS-Denver – Debt Package includes: 1 Copy I&R (Invoice & Receipt) 2 follow-up DL (Delinquent Letters) 2 copies of DA 1854-R (Transfer Summary) Certification Statement (DFAS-IN Reg 37-1, Chapter 17, Figure 17-1) Maintain (Copies) ‘debt package’ and supporting documentation for 6 yr. and 3 mo. DA Form 200 (Transmittal Record) Send Debt Package (Original copies) with all supporting documentation to: DFAS-ROME ATTN: AIEAJB (Debt Management) 325 Brooks Road Rome, NY 13411-4527

10. 2007 UBO/UBU Conference From Registration to Accounts Receivable 10 Collections for Transferred Accounts Collections received by MSAO after accounts are transferred First, where was the debt package sent? – HQ MEDCOM – DFAS-DE through DFAS-ROME Second, what is the FY of the account transferred? – Debt Mgt procedures changed in FY03 Reference: Example DD 1131, Tab 4

11. 2007 UBO/UBU Conference From Registration to Accounts Receivable 11 Collections for Transferred Account to HQ MEDCOM FY 02: Transferred Accounts to HQ MEDCOM – Do not open CHCS to post the collection – Deposits the funds into HQ MEDCOM annual AFDA appropriation: (Reference CCV, Tab 4) – Fax CCV to HQ MEDCOM, ATTN: MCRM-F (Debt MGT) (Reference Tab 2) Civ:(210) 295-0869/DSN: 471-0869 – Annotate MSG in CHCS with the CCV number and date, Payer, Check number, and date – The LOA is 97 #(FY) 0130.1881 74-7402 APC/DPI: G930/42 FSN: 041133 with the following 14 digit document number: MD (Positions 1-2),#ASN (Positions 3-6), ####-Last digits of debtor’s SSN (Positions 7-10), MO/YR-Month/Year of the debt (Positions 11-14)

12. 2007 UBO/UBU Conference From Registration to Accounts Receivable 12 Collections for Transferred Account to HQ MEDCOM FY 03-FWD Years: Transferred Accounts to HQ MEDCOM – Do not open CHCS to post the collection – Deposit the funds into MTF’s appropriation; using MTF collection APC and cust#: (Reference CCV, Tab 4) – Provide CCV to MTF RM RM must complete the “Debt Mgt-Transferred Account Collected or Returned by MSAO” (DM-TACR) worksheet (Reference Tab 3) – Annotate MSG in CHCS with the CCV number and date, Payer, Check number, and date – The LOA is: 97 #(FY) 0130.1881 74-####(ASN) 93#-C (RSC) MTF COLL APC/DPI:_______/_____ Cust__________ FSN:____________

13. 2007 UBO/UBU Conference From Registration to Accounts Receivable 13 Collections for Transferred Account for DFAS-Denver Collections for Transferred accounts at DFAS-Denver – Do not open CHCS to post the collection – Deposits the funds into DFAS Suspense Appropriation for all FY accounts – FAX CCV to DFAS-ROME (315)330-6460/DSN:220- 6460, or email DRO-Public-debt@dfas.milDRO-Public-debt@dfas.mil Type the following in the Subject line: OOSD Collection- ####(ASN)-###(MTF 3 digit control number) – Annotate MSG in CHCS with the CCV number and date, Payer, Check Number, and date – The LOA is:21 F 3875.5104 APC/DPI 5104/46 030093 with the following 14 digit document number: MD (Positions 1- 2),#ASN (Positions 3-6), ####-Last 4 digits of debtor’s SSN (Positions 7-10), MO/YR-Month/Year of the debt (Positions 11- 14)

14. 2007 UBO/UBU Conference From Registration to Accounts Receivable 14 DM-Transferred Accounts Collected or Returned (DM-TACR) MTF-MSAO: Notifies MTF-RM of accounts collected or returned – Returned Accounts email request to DFAS-Rome or HQ MEDCOM: Subject line: “####-@@-Request Account Returned from T-STATUS” (#### = ASN and @@=MTF Sequence Number, (01, 02, 03, etc.)) Name of debtor Patient SSN Patient account number(s) FY of the receivable Dollar value of account(s) Date transferred (Transfer Control Number(s)) Reason for the request – Collections need copies of CCV (HQ MEDCOM accounts only) -Continued-

15. 2007 UBO/UBU Conference From Registration to Accounts Receivable 15 DM-Transferred Accounts Collected or Returned (DM-TACR) MTF-RM: Process DM-TACR and input reverse transaction in AR HQ MEDCOM: Updates the data base DFAS-Rome: Process J.V. to close the accounting transaction in AR Reference Tab 3: Sample DM-TACR

16. 2007 UBO/UBU Conference From Registration to Accounts Receivable 16 Out of Service Debt Collections OOSD Collections are collections received from DFAS-Denver for our medical debts DFAS-Denver IPACs one collection transaction for all accounting years (monthly) to DFAS-Rome at OA level: 97 6 0130.1881 OA: 74 $dollar amount DFAS-Denver will forward a listing with the debtor’s Name/SSN and FY of the receivable w/the IPAC transaction DFAS-Rome sends copy of list to HQ MEDCOM to identify which ASN the funds apply HQ MEDCOM returns the listing to DFAS-Rome for processing the collections to ASN

17. 2007 UBO/UBU Conference From Registration to Accounts Receivable 17 Year-End Accounts Receivable Year-end debt management requirement Purpose: To maximize use of funds for MSA, CY, account receivables that are collected after the CY is no longer available for obligation. Calculate MTF Accounts Receivable Suspense: 14 September, 2007 MSAO and RM Responsibility

18. 2007 UBO/UBU Conference From Registration to Accounts Receivable 18 Year-End Accounts Receivable Includes debt for individuals and beneficiaries of State Health Care Programs – Public Receivables – Individual debtor (RSC 930) – Medicaid – (RSC 93A) – State Workman’s Comp – (RSC 93B) – Misc State Pgms – (RSC 93C) Does not include beneficiaries of Federal Programs – RSC 8## - Example: Coast Guard, VA, NOAA, PHS, Medicare MSA Office, CHCS Data Required – (Patient Category: K92 / CHCS Sale Code: FRR/FOR)

19. 2007 UBO/UBU Conference From Registration to Accounts Receivable 19 Year-End Accounts Receivable 1. Calculate previous years collection rate (FY: 05 and 06) – FY05 Coll (INC) divided by FY05 SALES = Coll Rate FY05 SALES=200K FY05 Coll (INC)=60K 60K divided by 200K = 30% 30% = FY05 Coll Rate 2. Calculate CY Anticipated Collections (Good Coll) – Multiply CY07 SALES by COLL RATE = CY Good Coll – Estimate 07 Sales (FRR/FOR) with an admission date on or before 30 SEP for uncoded records. FY07 SALES = 220K 220K X *30% = 66K 66K = Good Coll 3. Calculate Account Receivable – Subtract FY07 Coll (FYTD) from Good Coll CY Coll(FYTD) = 32K Good Coll = 66K 66K - 32K = 34K 34K = Account Receivable for FY 07 Repeat AR calculation using FY06 collection rate MTF-RM: Record AR in the Payment Plan Customer NO

20. 2007 UBO/UBU Conference From Registration to Accounts Receivable 20 Year-End Accounts Receivable 1. Calculate collection rate Calculate previous two year collection rate (FY 05 & 06) Rate used to calculate the AR will be the best of the two FY rates. Example: FY05 sales=200K FY05 Coll (INC)=60K 60K divided by 200K = 30% 30% = FY05 Coll Rate FY06 Sales=200K FY06 Coll (INC)=48K 60K divided by 200K = 24% 24% = FY06 Coll Rate

21. 2007 UBO/UBU Conference From Registration to Accounts Receivable 21 Year-End Accounts Receivable 2. Calculate current year sales Annual sales plus Estimate of un-coded records with an admission date on or before 30 September 07 Does not include beneficiaries of federal agencies (RSC 8##) or the new RSC’s 93H, 93J, 93K Calculate Monthly Average: – 11 months 1860-R Total = $220K – $220K divided by 11(11months) = $20K (per mo.) – Add $220K plus $20K = $240K sales

22. 2007 UBO/UBU Conference From Registration to Accounts Receivable 22 Year-End Accounts Receivable 3. Calculate Accounts Receivable Formula to Calculate Account Receivable: Coll Rate X Sales = ? - Coll FYTD = AR. 1. Need CY (FY07) Coll FYTD (from STANFINS): $32K 2. Estimated: CY (FY07) SALES: $240K 3. Estimated Collection RATE: FY 06 = 30% 4. Example: 30% X $240K = $72K - $32K = $40K 30% of $240K = $72K – $72K: FY06 Good Collections FY 06 Good Coll minus Coll FYTD – $72K - $32K = 40K $40K = Account Receivable

23. 2007 UBO/UBU Conference From Registration to Accounts Receivable 23 Transfer Summary-Tab 1: Tab 1: Example of a batched 1854-R (Transfer Summary) NOTE: If MTF elects to use the CHCS 1854-R, the MSAO is still required to separate the accounts by FY, RSC, and debtor’s SSN)

24. 2007 UBO/UBU Conference From Registration to Accounts Receivable 24 DM-DN-Tab 2: Tab 2: Example HQ MEDCOM Form DM-DN (Debt Management- Document Notification)

25. 2007 UBO/UBU Conference From Registration to Accounts Receivable 25 DM-TACR-TAB 3: Tab 3: Example HQ MEDCOM Form DM-TACR (Debt Management- Transferred Accounts Collected or Transferred) MTF-RM Requirement to submit DM-TACR at mo-end

26. 2007 UBO/UBU Conference From Registration to Accounts Receivable 26 CCV-TAB 4: Tab 4: Example of a DD 1131 (Cash Collection Voucher) for collections received after accounts are transferred

27. 2007 UBO/UBU Conference From Registration to Accounts Receivable 27 Regulations DoD FMR, Volume 4, Chapter 3,“Receivables” DoD FMR, Volume 5, Chapter 28,“General Provision on Indebtedness” DoD FMR, Volume 5, Chapter 29, “Collection of Out-of Service Debts” DoD FMR, Volume 5, Chapter 30,“Debt Collection by Offset” DFAS-IN Reg 37-1, Chapter 17, “Accounts Receivable and Debt Management” DFAS-IN Reg 37-100-**, “The Army Management Structure” DFAS Medical Accounts Receivable Slides/Flowchart HQ MEDCOM Annual Year-end Debt Management Memo https://dfas4dod.dfas.mil/centers/dfasin/library/regs.htm The HQ MEDCOM-Resource Management Web-Site: http://www.medcomrm.amedd.army.mil//

28. 2007 UBO/UBU Conference From Registration to Accounts Receivable 28 Debt Management POCs HQ MEDCOM Debt Mgt POC: – Lillian Villanueva – Civilian emergency debt (210) 295-2893 / dsn: 471-2893 Lillian.Villanueva@amedd.army.mil – Karrie Hooten – Foreign Military and/or dependent debt (210) 295-2892 / dsn: 471-2892 Karrie.Hooten@amedd.army.mil – Charlene Busanet (210) 295-2894 / dsn: 471-2894 Charlene.Busanet@amedd.army.mil DFAS-ROME Debt Management POC: – Gale Hameline (315) 330-6718 / dsn: 220-6718 Gail.Hameline@dfas,mil – Nancy Kelley (315) 330-6563 / dsn: 220-6563 Nancy.Kelley@dfas,mil – Sue Moore (Supervisor) (315) 330-6336 / 220-6336 Sue.Moore@dfas.mil

29. 2007 UBO/UBU Conference From Registration to Accounts Receivable 29 Summary Defined “Debt Management” Activity/Agency Debt Management responsibilities Collection Process for Transferred Acts How to calculate the Year-End Accounts Receivable Examples of Form Documents Regulations