1. Updates

2. Debt Collection Improvement Act SBA Debts added OPM Check Payments Offset 1996 OPM EFT, Vendor Check & EFT Payments Offset / 16 Creditor Agencies 2000 19972008 2009 1999 2001 2002 20071998 OCSE, Education & 20 other Creditor Agencies TRO Payments Offset Tax Levy & State Tax Debts SSA & Federal Salary Payments Offset Tax Rebates NTDO Vendor Payments Offset SADO Vendor & Tax Payments Offset (State Reciprocal Program) CTX Vendor Payments SPS Type A Payments 2008 Stimulus Payments, RRB Payments, CMS NTDO for Levy 2009 American Recovery and Reinvestment Act Payments Postal NTDO, CMS for Offset 2010 New York SADO, 10 Year Statue of Limitations Lifted, CCR Flag

3. Debt Count as of May 2009 Debt Amount as of May 2009 Debt Count as of May 2010 Debt Amount as of May 2010 % of Increase Federal Non-Tax Debt 6.3 Million $47 Billion7.6 Million $87 Billion 8.2% Child Support Debt7.3 Million $99.7 Billion8.1 Million $107.6 Billion 9% Federal Tax Debt11.3 Million $144.4 Billion15.3 Million $184.5 Billion 7.3% State Income Tax Debt 3 Million $7.6 Billion4.4 Million $10.5 Billion 6.8% Other State Debt377,443 $1.8 Billion 467,342$2 Billion 8% Total28.5 Million $300.6 Billion35.9 Million $391.7 Billion 7.9%

4. Department of Labor Unemployment Compensation Debts due to Fraud Unemployment Compensation Debts due to Fraud States will submit debts directly to TOP States will submit debts directly to TOP Debts will be offset against Federal Tax Refund Payment Debts will be offset against Federal Tax Refund Payment

5. Non Treasury Disbursing Offices Working with Payment Management to identify NTDOs that are currently not participating in the Treasury Offset Program. Working with Payment Management to identify NTDOs that are currently not participating in the Treasury Offset Program. Bring some of the agencies into the TDO process. Bring some of the agencies into the TDO process. Bring others into the NTDO process through TOP. Bring others into the NTDO process through TOP.

6. New York started participating in January 2010 New York started participating in January 2010 Kentucky & West Virginia are planned for 1 st quarter 2011 Kentucky & West Virginia are planned for 1 st quarter 2011 Collections for Federal Non-Tax Debt Collections for Federal Non-Tax Debt 19,753 offsets for $11,619,455

7. Implemented on November 30, 2009 Implemented on November 30, 2009 Debt indicator flag on the Central Contractor Registry (CCR) Debt indicator flag on the Central Contractor Registry (CCR) If a debt indicator flag is found, the government-wide commercial purchase card will not be authorized as a method of payment. If a debt indicator flag is found, the government-wide commercial purchase card will not be authorized as a method of payment. Changes were made to the Federal Acquisition Regulation (FAR) Changes were made to the Federal Acquisition Regulation (FAR)

8. HHS, CMS’ Gap Coverage Payments HHS, CMS’ Gap Coverage Payments DOI - BIA Title IV Pell Grant Payments DOI - BIA Title IV Pell Grant Payments DOT - FHWA Uniform Relocation Act Payments DOT - FHWA Uniform Relocation Act Payments http://www.fms.treas.gov/debt/regulations.html

9. FY 2009 Offsets/Reversal Count FY 2009 Amount FY 2010 Offset/Reversal Count as of June 9 FY2010 Amount as of June 9 Child Support1,571,349$2,042,414,8631,400,057$1,935,386,479 Federal Non- Tax 1,119,650$1,384,769,8181,322,914$1,785,153,095 State Tax590,869$363,210,094657,370$397,840,384 Total3,361,868$3,790,394,7753,380,341$4,118,379,958

10. FY 2009 Offsets/Reversals Count FY 2009 Amount FY 2010 Offset/Reversal Count as of June 9 FY2010 Amount as of June 9 Vendor63,132$93,690,33827,021$26,229,034 OPM66,440$10,852,41356,210$9,333,389 Salary64,360$10,429,27238,874$6,567,411 SSA1,409,353$171,638,7091,184,728$144,829,050 NTDO – Vendor6,307$17,528,97710,74819,823,637 NTDO – State21,507$12,152,77019,753$11,619,455 RRB16,628$2,467,75213,340$1,904,859 ERP0.00 38,515$229,581,913 Total1,647,727$318,760,231883,613$150,529,015

11. FY 2009 Offsets/Reversal Count FY 2009 Amount FY 2010 Offset/Reversal Count as of June 9 FY2010 Amount as of June 9 Vendor35,636$24,038,95032,350$30,235,226 OPM139,757$30,972,414117,331$26,256,027 Salary286,038$69,500,074206,65551,907,269 SSA1,863,876$299,706,2971,678,115$273,901,033 NTDO – Vendor 71,565$72,597,04548,419$52,721,779 Total2,396,872$496,814,7802,082,870$435,021,333

12. Opportunity to Solve the Following Problems Contention and Performance Issues Contention and Performance Issues Ability to Increase Volume of Payment and Debt File Processing Ability to Increase Volume of Payment and Debt File Processing

13. Proof of Concept Validate that the TOP Application can run on the z/OS Mainframe Validate that the TOP Application can run on the z/OS Mainframe Exceed Current Performance Requirements Exceed Current Performance Requirements Implement a Viable Check Point Restart Implement a Viable Check Point Restart

14. IRS Address Request Purpose: To obtain addresses of debtors if your agency does not have one in order to send the required 60 day “Due Process” notice. Referring a debt to TOP does not require an address from the IRS. Remember to follow IRS requirements when your agency receives IRS Addresses.

15. Batch Processing Update file(s) can be submitted 24/7 Agency can use the cycle or date parameter. Example: Incoming File Name from Agency Cycle - FDMP.IPTOPUPD.C201013.AG99 (YYYYCC) Date - FDMP.IPTOPUPD.D100314.AG99 (YYMMDD) Update files are processed the following business morning after the file has been received. Unprocessable files are sent after the Update file is processed.

16. Invalid Characters in an Update File Valid characters are any characters that can be created from a keyboard. Invalid characters mainly fall into a hex ’00’ (Low Value) or hex ‘FF’ (High Value) Agencies must scan their files for these invalid characters prior to sending the file to TOP. TOP will scan each record for invalid characters. If any invalid characters are found, TOP will stop processing the file, notify the agency of the problem, and request a corrected file. If invalid characters are found, the original input file is NOT returned to the agency.

17. Leading Spaces in an Update File A leading space in the: State field will error out as an Invalid State Code. Agency ID, Agency Site ID, Action, Record Type, Debtor TIN fields will error out and reject the record as having invalid information. (If there are leading spaces in the fields above, the record will not process.) Last Name field causes the name control to be incorrect – limits offsets Address, city, first name, middle initial and agency debt number fields are treated as a space and placed in the first byte of that field. “LJ” means Left Justified and the information should start in the left most field!!!!