dwight vigna education department

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



2

Collection Performance



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%



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%



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


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



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



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



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



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



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%



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%



PCA Collection Performance



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Collection PerformanceCPCS #5-11 Avg. - Unrestricted



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Collection PerformanceQuarterly CPCS #5-11Avg. – Small

Business



Default PortfolioProjections



Portfolio CharacteristicsSeptember 2013• Size: $55,886,286,405

192013 Knowledge


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%



TOP Processing



The New Faces of TOP



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


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



The New Face for Mandatory Assignment



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



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!



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



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



New Contracts



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



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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

33

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



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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



35

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



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Questions?

dwight vigna education department

Documents

r knowledge symposiumnovember

florida7regular fy13

florida8top fy13 fy12ga

florida10awg fy13 fy12ga

florida6fy13 recovery

recovery rate wo consols

fsa overall collection

year basis