Collingswood, NJ: MyGovWatch.com has made available for download a free copy of a report the U.S. Department of Treasury (Treasury) provides annually to the U.S. Congress on Federal non-tax government receivables and debt collection activities of U.S. government agencies.
MyGovWatch.com offers subscribers insider access to the past, present, and future of government and student loan contracting, allowing users to know what’s out for bid now, learn why and how different buyers picked their vendor(s) last time, and find out about future purchases in advance to include the names of key decision makers. In 2014, MyGovWatch.com determined that two-thirds of government and student loan procurements are real opportunities.
Highlights of the data included in this year’s report indicate:
- Delinquent, non-tax debt decreased during Federal fiscal year 2014, from more than $212 billion to $139.3 billion, a decrease of $73.2 billion (34%) compared to FY 2013. The decrease was primarily driven by a U.S. Department of Education (ED) revision to its methodology for calculating the amount of delinquent debt reported as indicated in an endnote within the report.
- The U.S. Department of Education’s total portfolio increased 15% during the same period, to $874.3 billion. Reported delinquencies decreased by 39.9%, to $102.6 billion; ED delinquencies still account for 74% of all Federal non-tax delinquencies.
- Treasury reported that Private Collection Agencies (PCAs) collected $157.6 million during the same period for all Federal agencies represented in the report.
The cover letter touts how the Bureau of the Fiscal Service collected a record $6.9 billion “at a relatively small cost to the Federal government — $53.16 are collected for every $1 spent.” The letter does not mention how this represents an 8% decrease in the return on investment delivered by primarily in-house Federal government resources and infrastructure, comparing FY2013 to FY2014. What additional billions may be collected by outsourcing a greater portion of receivables management to the private sector is not part of the scope of the report, which also does not attempt to quantify the lost revenue in dollars Federal agencies make minimal efforts to collect, such as tax delinquencies.
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