GFEBS Debt Management Exam 2025
Questions and Answers
Treasury Reporting: Reason Status Codes - --Answer --Reason Status codes
assist with the preparation of the TROR. Reason Status codes indicate the state of
the debt throughout the debt lifecycle and assist the accounting system with
determining how to categorize the debt.
Changes in the reason status code occur through business events or are manually
entered into the accounting system. These changes also occur via interfaces from
entitlement and revenue systems
When is interest applied? - --Answer --Interest is applied 30 days after the
debit notice due date (i.e., day 31). Additional interest will accrue for each 30 day
period until payment is received. The interest calculation program is automatically
executed on a daily basis, but only updates the account every 30 days. In the
process of fully collecting a debt that includes principal, interest, fees, and penalties
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,the remittances received are first applied to reduce penalties, fees, interest, and
then principal.
How is interest applied? - --Answer --The Run Interest Calculation Program
is run automatically. It can be manually run by the Debt Management Processor if
needed. Interest accrues continually until the debt is collected or written off.
Who determines the applied interest amount? - --Answer --The U.S.
Treasury requires the Current Value of Funds Rate (CVFR) to be used as the
interest rate. When the debt record is created the interest rate (%) is assigned to the
accounts receivables record. The rate is fixed for the life of the debt.
CVFR - --Answer --Current Value of Funds
Fees - --Answer --are assessed to cover the additional costs incurred in
handling a debt beyond the date on which payment was due. They are applied only
if payment is not made by the due date specified on the billing form and / or
demand letter. The DoD components calculate fees based upon actual costs
incurred. If the actual cost is not available, fees may be determined by historical
costs or by the cost analysis method that supports determination of the charge.
Penalties - --Answer --are charges on delinquent debt to discourage
delinquencies and encourage early payment of the debt in full. The rate to be
assessed is set by law at more than six percent per year and is assessed on the
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, portion of a debt remaining delinquent for more than 90 days. The charges will
accrue and be assessed from the date of delinquency.
Who processes installment plans and when? - --Answer --If a debtor
requests an installment plan and Defense Finance and Accounting Services
(DFAS) receives the request before or by the due date, the required documents are
evaluated to determine whether the customer meets the requirements for an
installment plan.
The Debt Management Processor receives the installment plan decision and if the
installment plan request is approved, enters the required information in GFEBS
Installment plans guidelines - --Answer --First, installment guidelines include
documentation from the debtor that he / she is financially unable to pay in a lump
sum.
Second, installment plans require monthly payments with an overall repayment
period not to exceed 3 years, unless an exception is granted.
Last, installment payments should be at least $50 each month.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
Questions and Answers
Treasury Reporting: Reason Status Codes - --Answer --Reason Status codes
assist with the preparation of the TROR. Reason Status codes indicate the state of
the debt throughout the debt lifecycle and assist the accounting system with
determining how to categorize the debt.
Changes in the reason status code occur through business events or are manually
entered into the accounting system. These changes also occur via interfaces from
entitlement and revenue systems
When is interest applied? - --Answer --Interest is applied 30 days after the
debit notice due date (i.e., day 31). Additional interest will accrue for each 30 day
period until payment is received. The interest calculation program is automatically
executed on a daily basis, but only updates the account every 30 days. In the
process of fully collecting a debt that includes principal, interest, fees, and penalties
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,the remittances received are first applied to reduce penalties, fees, interest, and
then principal.
How is interest applied? - --Answer --The Run Interest Calculation Program
is run automatically. It can be manually run by the Debt Management Processor if
needed. Interest accrues continually until the debt is collected or written off.
Who determines the applied interest amount? - --Answer --The U.S.
Treasury requires the Current Value of Funds Rate (CVFR) to be used as the
interest rate. When the debt record is created the interest rate (%) is assigned to the
accounts receivables record. The rate is fixed for the life of the debt.
CVFR - --Answer --Current Value of Funds
Fees - --Answer --are assessed to cover the additional costs incurred in
handling a debt beyond the date on which payment was due. They are applied only
if payment is not made by the due date specified on the billing form and / or
demand letter. The DoD components calculate fees based upon actual costs
incurred. If the actual cost is not available, fees may be determined by historical
costs or by the cost analysis method that supports determination of the charge.
Penalties - --Answer --are charges on delinquent debt to discourage
delinquencies and encourage early payment of the debt in full. The rate to be
assessed is set by law at more than six percent per year and is assessed on the
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, portion of a debt remaining delinquent for more than 90 days. The charges will
accrue and be assessed from the date of delinquency.
Who processes installment plans and when? - --Answer --If a debtor
requests an installment plan and Defense Finance and Accounting Services
(DFAS) receives the request before or by the due date, the required documents are
evaluated to determine whether the customer meets the requirements for an
installment plan.
The Debt Management Processor receives the installment plan decision and if the
installment plan request is approved, enters the required information in GFEBS
Installment plans guidelines - --Answer --First, installment guidelines include
documentation from the debtor that he / she is financially unable to pay in a lump
sum.
Second, installment plans require monthly payments with an overall repayment
period not to exceed 3 years, unless an exception is granted.
Last, installment payments should be at least $50 each month.
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
