GFEBS Debt Management Exam
Questions With Correct Answers
Treasury |Reporting: |Reason |Status |Codes |- |CORRECT |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? |- |CORRECT |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 |the |remittances |received |are |first |applied |
to |reduce |penalties, |fees, |interest, |and |then |principal.
How |is |interest |applied? |- |CORRECT |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? |- |CORRECT |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 |- |CORRECT |ANSWER✔✔-Current |Value |of |Funds
Fees |- |CORRECT |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 |- |CORRECT |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 |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? |- |CORRECT |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 |- |CORRECT |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.
Questions With Correct Answers
Treasury |Reporting: |Reason |Status |Codes |- |CORRECT |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? |- |CORRECT |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 |the |remittances |received |are |first |applied |
to |reduce |penalties, |fees, |interest, |and |then |principal.
How |is |interest |applied? |- |CORRECT |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? |- |CORRECT |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 |- |CORRECT |ANSWER✔✔-Current |Value |of |Funds
Fees |- |CORRECT |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 |- |CORRECT |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 |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? |- |CORRECT |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 |- |CORRECT |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.
