dwight vigna education department
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Dwight Vigna Education Department. FSA Default Division Goals. Goal 1: Be respectful to our borrowers and find the best solution that will resolve the borrower’s debt regardless of the commission being paid - PowerPoint PPT PresentationTRANSCRIPT
Dwight VignaEducation Department
12013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
FSA Default Division Goals•Goal 1: Be respectful to our borrowers and find the best solution that will resolve the borrower’s debt regardless of the commission being paid
•Goal 2: Increase the FSA overall collection rate on a year to year basis even though the inventory is also increasing annually
2013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
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Collection Performance
32013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
Default Recoveries- In Billions
Combined EDFY13 - $18.2 $8.51FY12 - $13.1 $3.68FY11 - $12.0 $3.40FY10 - $10.2 $3.04FY09 - $8.8 $3.07FY08 - $8.9 $3.21FY07 - $6.9 $2.67
42013 Knowledge
SymposiumNovember 5-7, 2013 ●
St. Pete, Florida
FY13 Top Ten By Recovery Rate
Rank Agency CollectionsAdjusted Beginning
Inventory Percent1 RHODE ISLAND 59,108,248 126,395,577 46.76%2 ARKANSAS 80,633,778 189,071,646 42.65%3 MAINE 19,094,805 50,315,440 37.95%4 LOUISIANA 77,564,578 209,377,753 37.05%5 ASA (MASS) 1,063,763,727 2,920,397,852 36.43%6 NSLP (NEB) 389,689,558 1,069,900,437 36.42%7 OKLAHOMA 149,251,210 426,897,506 34.96%8 MISSOURI 110,717,927 324,024,388 34.17%9 TENNESSEE 144,075,736 444,794,810 32.39%10 COLORADO 304,599,104 947,448,860 32.15%
52013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
FY13 Top Ten by Recovery Rate w/o Consols
Rank Agency Collections Beginning Inventory Percent1 RHODE ISLAND 41,065,396 126,395,577 32.49%2 ARKANSAS 58,554,256 189,071,646 30.97%3 MAINE 15,221,072 50,315,440 30.25%4 LOUISIANA 62,149,130 209,377,753 29.68%5 OKLAHOMA 115,682,653 426,897,506 27.10%6 NSLP (NEB) 263,364,237 1,069,900,437 24.62%7 USAF 1,276,845,408 5,316,008,474 24.02%8 COLORADO 215,072,575 947,448,860 22.70%9 TENNESSEE 100,494,165 444,794,810 22.59%10 MASS (ASA) 657,419,821 2,920,397,852 22.51%
62013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
FY13 Recovery Rate By Portfolio Combined Program Recovery Rate
P&I Recoveries Recovery Rate
GA $32,692,871,368
$9,711,487,39
829.71%
ED $44,743,366,300
$8,511,512,95
219.02%
Combined
$77,436,237,669
$18,223,000,350 23.53%
72013 Knowledge
SymposiumNovember 5-7, 2013 ●
St. Pete, Florida
Regular FY13 FY12
GA $759,645,000 $754,654,568
ED $562,750,765 $539,983,209
Totals $1,322,395,765 $1,294,637,777
82013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
TOP FY13 FY12
GA $848,556,209 $990,651,634
ED $1,331,685,591 $555,242,177
Totals $2,180,241,800$1,545,893,811
92013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
Rehabilitations FY13 FY12
GA $4,736,266,045$4,400,196,618
ED $5,758,179,306$1,761,800,453
Totals $10,494,445,351 $6,161,997,071
102013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
AWG FY13 FY12
GA $655,890,260 $668,323,580
ED $291,422,130 $345,010,734
Totals $947,312,390 $1,013,334,314
112013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
Direct Consolidations FY13 FY12
GA $2,711,129,883$2,584,213,293
ED $567,475,161 $474,247,061
Totals $3,278,605,045$3,058,460,354
122013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
FY13 GA Consolidations
• Highest percentage was 41.31%• Lowest percentage was 14.76%
Consolidations Total Collections % of Total $2,711,129,883 $9,711,487,398 27.92%
132013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
FY13 Top Ten Consolidators
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Rank AgencyConsolidation
Collections Total Collections Percent1 SOUTH CAROLINA 25,861,556 62,608,722 41.31%2 MASS (ASA) 406,343,906 1,063,763,727 38.20%3 PENNSYLVANIA 391,337,244 1,063,166,144 36.81%4 MISSOURI 40,678,286 110,717,927 36.74%5 NORTH CAROLINA 14,207,934 39,955,382 35.56%6 GEORGIA 6,382,660 18,570,383 34.37%7 NSLP (NEB) 126,325,321 389,689,558 32.42%8 RHODE ISLAND 18,042,852 59,108,248 30.53%9 TENNESSEE 43,581,572 144,075,736 30.25%10 KENTUCKY 38,530,481 131,044,785 29.40%
2013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
PCA Collection Performance
152013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
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Collection PerformanceCPCS #5-11 Avg. - Unrestricted
2013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
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Collection PerformanceQuarterly CPCS #5-11Avg. – Small
Business
2013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
Default PortfolioProjections
182013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
Portfolio CharacteristicsSeptember 2013• Size: $55,886,286,405
192013 Knowledge
SymposiumNovember 5-7, 2013 ●
St. Pete, Florida
Collections 3-Year Forecast
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2013 2014 2015 2016Inventory $35.1B $53.3B $66.9B $89.5BCollections $8.65B $10.0B $12.5B $16.9BCommissions $819M $1.275B $1.60B $2.10BRecovery Rate
19.02% $18.64% 18.68% 18.87%
2013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
TOP Processing
212013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
The New Faces of TOP
222013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
Cindy Hill Tia Fails
Treasury Offset Program PY2013 P&I CertifiedGA $23,361,109,809ED $29,810,814,083Total $53,171,923,892
• ED Collections - $1,331,685,591• GA Collections - $ 848,556,209• Total - $2,180,241,800
232013 Knowledge
SymposiumNovember 5-7, 2013 ●
St. Pete, Florida
Treasury Offset Program
• Certification processing is on schedule
• Cindy sent the Action Code e-mail• GA Certification files are due 11/4 -
11/8• Inactivation file will be processed on
11/20/2013• Certification files are sent to Treasury
on 12/9/201324
2013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
The New Face for Mandatory Assignment
252013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
Jane Bryson
IRS Skip Tracing Update• We have a signed CMA• We have to make system changes
in order to use the CMA• There will be audits from the IRS
on this process• New Training must be done for all
staff that includes IRS FTI (Federal Tax Information) requirements
262013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
IRS Skip Tracing Update• Neither ED nor its Contractors
(PCA or GA) may redisclose the IRS Address unless legal parameters in the Internal Revenue Code (IRC) (section 6103) are followed, which are in addition to those required by the Privacy Act!
272013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
IRS Skip Tracing Update• Independent verification• Written procedures are completed
• Legally insufficient• Legally sufficient
• First Party Request• Requestor must submit credentials
proving they are asking for their own records
282013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
IRS Skip Tracing Update• Third Party Request with Consent
• Must use IRS Form 8821• Signature must be within 120 days of
current date• First and Third Party Request with
consent • Original request must be maintained
for 3 years29
2013 Knowledge SymposiumNovember 5-7, 2013 ● St. Pete,
Florida
IRS Skip Tracing Update• Third Party Request Without
Consent• Must use IRS Form 8821• Personnel withholding request must
provide ED’s OGC copies of request and the decision to withhold within 1-3 business days
• If Requestor persists, ED/PCA/GA must notify ED’s OGC within 1-3 business days of continued demand
302013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
New Contracts
312013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
DMCS O&M Contract• Awarded on 9/30/2013 to Maximus
Federal Services, Inc.• Stop Work Order Issued on
10/01/2013• Start Work Order Issued on
10/17/2013• 10 Year contract with a base
period of 2 years and 8, 1-year options
2013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
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DMCS O&M Contract• Maximus has been around for 40
years• They are using IBM, FICO and
Omni Systems for development• Exeter is being used for financial
reconciliation• Xerox is being used for data center
and back-end processing2013 Knowledge
SymposiumNovember 5-7, 2013 ● St. Pete,
Florida
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DMCS O&M Contract• The Xerox contract was given an
extension for 6 months, June 30 2014
• The transition planning has already begun
• The current date for the transition is March 1, 2014
2013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
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DMCS O&M Contract• How does this affect the GAs?
– No changes today– There will be a transition of the data
center at some future point
2013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
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PCA Contracts• Procurement is currently going on
for the Small Business pool and the Unrestricted Business pool
• The proposed time frame for Awards is January 2014
2013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
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372013 Knowledge Symposium
November 5-7, 2013 ● St. Pete, Florida
Questions?