GFEBS DEBT MANAGEMENT EXAM
2025 QUESTIONS AND ANSWERS
Treasury Reporting: Reason Status Codes - ANS 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? - ANS 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 the remittances received are first applied to reduce penalties, fees,
interest, and then principal.
How is interest applied? - ANS 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? - ANS 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 - ANS Current Value of Funds
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, Fees - ANS 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 - ANS 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 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? - ANS 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 - ANS 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.
True or false: Government employees are subject to interest, fee, and penalty charges assessed
on debt to the government that are overdue. - ANS True
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2025 QUESTIONS AND ANSWERS
Treasury Reporting: Reason Status Codes - ANS 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? - ANS 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 the remittances received are first applied to reduce penalties, fees,
interest, and then principal.
How is interest applied? - ANS 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? - ANS 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 - ANS Current Value of Funds
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, Fees - ANS 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 - ANS 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 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? - ANS 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 - ANS 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.
True or false: Government employees are subject to interest, fee, and penalty charges assessed
on debt to the government that are overdue. - ANS True
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