Immediately upon receipt of an invoice for goods or services provided by a federal government agency, or other notification that a state agency owes money to a federal agency, state agencies should make every effort to make payment to the federal government in a timely manner or contest the billing.

If a notice of unpaid debt is received by a state agency, the notice will provide the amount, type of debt owed, and the federal agency who referred the debt to the Department of Treasury for collection. If the state agency believes the debt collection notice was issued in error or is erroneous, the state agency should immediately contact the U.S. Treasury and the federal agency that referred the debt for collection. Affected state agencies are responsible for resolving federal billing issues. Neither the Department of Treasury nor OSC can resolve issues regarding debts owed to federal agencies.

In the event that a Treasury offset is taken, a notice is sent to the state agency that had funds taken notifying them that a portion of their payment was applied to a NYS debt. A copy of this notice must be immediately scanned and emailed to the Federal Payment Management Team at [email protected].

Additional Information

See the Department of Treasury - Financial Management Service website for more information about the Treasury Offset Program. Included on the website is a list of awards that are exempt from the Treasury Offset Program.

https://fiscal.treasury.gov/fsservices/gov/debtColl/dms/top/debt_top.htm

Questions about state administered federal drawdowns that have been reduced by the Treasury Offset Program or about this procedure may be referred to the OSC Bureau of State Accounting Operations, Federal Payment Management Team at [email protected].

Guide to Financial Operations

REV. 07/11/2022