OSHA Instruction FIN 8.1 OCT 1 l986 Office of Management Data Systems

Subject: Debt Collection Act: Area Office and National Office Responsibilities and Procedures for Notifying Employers and Processing Cases.

A. Purpose. This Instruction implements the Debt Collection Act of 1982 (DCA), assigns responsibilities, and establishes procedures for the notification of employers and referral of unpaid debts to the National Office.

B. Scope. This instruction applies OSHA-wide. This policy does not apply to State-Plan States.

C. References. The following references are applicable for this Instruction.

1. OSHA Instruction CPL 2.45A, Field Operations Manual (FOM). Chapter VI, Section C.

2. OSHA Instruction ADM 1-1.12A, Integrated Management Information System (IMIS) Forms Manual.

3. OSHA Instruction ADM 1-1.13, Operator Skills Manual for the IMIS.

4. The Debt Collection Act of 1982, Public Law 97-365.

5. U.S. Department of Labor (DOL) Regulations, 29 CFR Part 20.

D. Cancellation. This instruction cancels OSHA Notice FIN 8. dated February 10, 1986.

E. Action. Regional Administrators shall ensure that Area Directors comply with the requirements of this instruction.

F. Background. The Debt Collection Act of 1982 (Act.) provides additional authority to Federal agencies to collect monies owed the Federal government. Effective March 8, 1985, the Department of Labor issued regulations (29 CFR Part, 20) implementing these and other provisions of the Act relating to debts. Unpaid penalties assessed under the Occupational Safety and Health Act are considered as debts.

OSHA Instruction FIN 8.1 OCT 1 1986 Office of Management Data Systems

1. The Debt Collection Act and Department of Labor regulations require specifically that:

a. Debtors be assessed interest at the current annual rate established by the U.S. Treasury accruing from the date the debt became due.

b. Debtors be charged the administrative costs for demand letters which are sent as a result of nonpayment of debts.

c. Debtors be assessed a delinquent charge of 6% a year (0.5% a month) if the amount due remains unpaid for more than three (3) months accruing from the date the penalty became delinquent (i.e., four (4) months from the date it became due).

2. In addition, the Debt Collection Act and Department of Labor regulations provide for the referral of debts to private debt collection firms, disclosure to commercial credit reporting agencies and notice to the Internal Revenue Service (IRS) if debts are not paid.

3. Earlier instructions, policies and procedures in this area described a decentralized process under which the field had responsibility for continued interface with employers for the collection of debts and assessment of interest, delinquent fees and administrative costs. This instruction provides for a process under which Area Offices will refer delinquent accounts to the Office of Management Data Systems (OMDS) after notifying employers of the provisions of the Debt Collection Act and after sending a demand letter to employers if they fail to remit payment within one month of the penalty due date.

G. Definitions. the following are the main terms of the Debt Collection Act.

1. Penalty Due Date. All penalties are due when they become a final order. For OSHA the penalty due date and final order date are synonymous. Refer to the FOM for policy on determining the penalty due date (final order date).

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OSHA Instruction FIN 8.1 OCT 1 1986 Office of Management Data Systems

2. Interest. Interest shall be assessed if a debt has not been paid within one month of the date on which the debt became due and payable (penalty due date). The rate of interest is currently 8% a year (0.67% a month). Interest shall accrue on a monthly basis from the date the penalty became due.

3. Administrative Costs. Administrative costs refer to the additional costs incurred by the agency in its attempt to collect the unpaid debt. At present, the only administrative cost is $15.00 for each demand letter sent.

4. Delinquent. A debt is considered delinquent if it has not been paid within one month of the penalty due date.

5. Delinquent Charges. The Debt Collection Act refers to "penalty charges". In order to avoid confusion, the term "delinquent charge" will be used in this notice to refer to the annual penalty charge of 6% a year (0.5% a month) that is assessed when the debt has not been paid within three (3) months of the date it became delinquent.

6. Repayment Plans. Repayment plans are written agreements entered into by OSHA and an employer under which the employer is to remit payments in specified installments in accordance with a specified schedule. If a satisfactory repayment plan is entered into within one month of the penalty due date, interest will not be assessed provided the repayment plan schedule is maintained.

7. Partial Payment. Partial penalty payments do not constitute a bona fide repayment plan. If an employer makes a partial penalty payment and there is no agreed upon repayment plan in effect, a demand letter is to be sent and interest assessed on the unpaid penalty balance.

8. Case Transfer Criteria. To transfer a case from an Area Office to OMDS it must meet the following criteria.

a. The amount of outstanding penalty due is $100 or more.

b. A demand letter has been sent to the employer and this information has been reported to the IMIS.

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OSHA Instruction FIN 8.1 OCT 1 1986 Office of Management Data Systems

c. The statute of limitations (5 or more years calculated from the penalty due date) has not passed.

d. None of the alleged violations, abatement dates or proposed penalties are in contest.

e. At least one month has elapsed since the first demand letter was sent to the employer.

f. The penalty due date has been reported to the IMIS.

g. All information required for transfer of a case to OMDS has been verified against the case file by the Area Office.

H. Responsibilities.

1. Area Directors. Area Directors are responsible for:

a. Notifying employers of the provisions of the Debt Collection Act by including the Notice in Appendix A with Citations issued for alleged violations of the Occupational Safety and Health Act.

b. Sending a demand letter one month after the penalty due date if payment has not been received or a satisfactory repayment plan has not been agreed to by that date. See Appendix B for a copy of the demand letter which is to be sent by Area Offices.

c. Entering into repayment plan agreements with employers consistent with policies prescribed in the FOM.

d. Calculating and assessing interest and administrative costs for sending the demand letter as stated in the FOM.

e. Maintaining accurate records and updating the IMIS to reflect interest and administrative costs assessed by the Area Office, date(s) of demand letter(s), date transferred to OMDS, modifications to penalty amounts, penalty due dates, payments received, repayment plans, and cases referred to the Solicitor.

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OSHA Instruction FIN 8.1 OCT 1 1986 Office of Management Data Systems

f. Referring eligible cases to the Office of Management Data Systems (OMDS) if payment has not been received or if a repayment plan has not been entered into within one month from the date the demand letter referenced in paragraph H.1.b. above was sent to the employer. Only eligible cases as defined in paragraph G.8. shall be referred to OMDS.

g. Preparing cases for transfer to OMDS by verifying the accuracy of the information and working with OMDS to reconcile any apparent discrepancies between information transferred and information on the IMIS Host Data Base.

h. Notifying OMDS by telephone whenever payment is received by an Area Office on a case which has been transferred to OMDS and forwarding the check to:

U.S. Department of Labor - OSHA Office of Management Data Systems Delinquent Accounts Collection Post Office Box 2422 Washington, D.C. 20013

NOTE: Area Offices SHAll NOT enter information into the IMIS on payments received after a case has been transferred to OMDS.

i. Updating case files based on information received from OMDS and closing cases when appropriate.

Pursuing cases through the Solicitor when efforts by the debt collection firm have been unsuccessful and the Directorate of Field Operations (DFO) has determined that the Area Office should pursue the case through litigation and updating the IMIS Micro and Host Data Bases after cases have been transferred back to the Area Office for litigation.

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OSHA Instruction FIN 8.1 OCT 1 1986 Office of Management Data Systems

k. Contacting employers who have failed to comply with the terms of a repayment plan; sending such employers the Default On Repayment Plan letter in Appendix C and referring the case to OMDS if the employer fails to remit payment or enter into a new satisfactory repayment plan within one month of the date of the letter. See Appendix C for the letter to be used when an employer defaults on a repayment plan.

NOTE: No interest charges or charges for the Default On Repayment Plan letter shall be assessed by Area Offices in cases where an employer defaults on a repayment plan.

2. Office of Management Data Systems (OMDS). OMDS is responsible for:

a. Verifying data on eligible cases transferred from Area Offices before they are accepted for further action.

b. Working with Area Offices to reconcile any discrepancies between information reported via microcomputer and information on the IMIS Host Data Base.

c. Sending another demand letter to employers on cases transferred from Area Offices.

d. Calculating and assessing interest, administrative costs and delinquent charges on cases transferred from Area Offices to OMDS. This includes cases where an employer has defaulted on a repayment plan agreement and has failed to remit payment or enter into a new agreement after being contacted by the Area Office.

e. Processing all payments received by OMDS and forwarding payments daily to the Office of Financial Management (FINOSH) for deposit.

f. Referring cases to a debt collection firm if an employer does not remit payment within one month of the date of the demand letter from OMDS.

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OSHA Instruction FIN 8.1 OCT 1 1986 Office of Management Data Systems

g. Reviewing and reconciling reports received from the debt collection firm.

h. Updating the IMIS Host Data Base on each case transferred by Area Offices to OMDS to reflect payments received, waivers (write offs) or cases transferred back to the Area Offices for referral to the Solicitor for litigation.

i. Producing computer reports for FINOSH and other offices for use in responding to OMB, DOL, and OSHA internal review.

j. Providing Area Offices with computer printouts on a monthly basis showing the final status of cases transferred to OMDS (e.g. write offs, collections).

k. Developing computer tapes on delinquent accounts for reporting to commercial credit reporting agencies.

l. Providing a listing to FINOSH of uncollected accounts and amounts owed for use by FINOSH in issuing 1099-G's to the IRS and employers.

m. Providing Area Offices with copies of checks received from employers by OMDS and other related documents for Area Office case files.

n. Coordinating with the Directorate of Field Operations (DFO) on the status of cases referred to OMDS and the debt collection agency and updating IMIS files to reflect actions recommended by OMDS or the debt collection agency and decided upon by DFO.

o. Maintaining records and files on each case transferred from Area Offices.

p. Accomplishing programming as may be required to comply with the requirements of the Debt Collection Act.

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OSHA Instruction FIN 8.1 OCT 1 1986 Office of Management Data Systems

q. Calculating the interest and other charges to be assessed when an employer defaults on a repayment plan entered into by an Area Office or DFO and does not enter into a new satisfactory repayment plan.

r. Responding to inquiries from employers regarding penalties owed or questions regarding the Debt Collection Act and cases transferred from Area Offices to OMDS.

s. Forwarding invoices received from the debt collection firm to FINOSH together with reports or other documentation for payment by FINOSH to the debt collection firm.

t. Arranging for preparation of Claims Collection Litigation Reports (CCLR) by the debt collection firm on cases to be referred to the Solicitor for litigation.

3. Office of Financial Management (FINOSH): FINOSH is responsible for:

a. Verifying payments received from employers and forwarded to FINOSH by OMDS.

b. Depositing payments forwarded by OMDS to FINOSH in the OSHA lockbox or Mellon Bank as appropriate.

c. Establishing and maintaining liaison with the U.S. Treasury on funds on deposit with the U.S. Treasury resulting from debts collected by the debt collection firm and available for payment of services provided by the debt collection firm.

d. Verifying monthly invoices received from the debt collection firm with information provided by OMDS and Deposit Tickets (SF 215C) received from Treasury.

e. Issuing payments to the debt collection firm from monies collected by the debt collection firm and on deposit in the OSHA account maintained by the U.S. Treasury.

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OSHA Instruction FIN 8.1 CH-1 JUN 22 1987 Office of Management Data Systems

f. Maintaining accurate records of OSHA funds on hand with the U.S. Treasury and disbursements made from those funds to the debt collection firm.

g. Providing interpretations of the provisions of the Debt Collection Act.

h. Advising OMDS of any unhonored checks.

i. Advising OMDS of disbursements to the debt collection firm.

j. Preparing reports for OMB, the Department and the U.S. Treasury as may be required, based upon computer reports generated by OMDS.

k. Advising Regional Directors, Area Directors and OMDS of changes in the rate of interest set by the U.S. Treasury which are to be used in calculating and assessing interest.

l. Issuing 1099-G's to employers and to the IRS as appropriate.

4. Directorate of Field Operations (DFO). DFO is responsible for:

a. Establishing policies for Area Offices to follow on waivers (write offs), determination of penalty due dates and criteria for repayment plan agreements.

b. Reviewing and deciding upon recommendations made by OMDS or the debt collection firm regarding compromising of debts, write offs, repayment plans and cases referred for litigation and advising OMDS of these decisions.

c. Advising Regional Administrators and Area Offices of cases to be referred to the Solicitor for litigation and forwarding Claims Collection Litigation Reports (CCLR) prepared by the debt collection firm to Area Offices.

d. Entering into Repayment Plans with employers on cases which have been transferred from Area Offices to OMDS.

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OSHA Instruction FIN 8.1 CH-1 JUN 22 1987 Office of Management Data Systems

5. State Plan States.

a. State plan States are responsible for maintaining effective performance in penalty collection and records maintenance as an important element of an "at least as effective" program. the Federal Debt Collection Act and the procedures of this instruction, however, do not directly apply to State plan States.

b. Appendix F of this instruction describes penalty related reports which are available from the micro computers. Depending upon the degree of similarity between a State's and OSHA's debt collection systems, some of the reports may prove useful in state debt tracking.

I. Area Office Procedures. Detailed procedures for Area Offices to follow in carrying out their responsibilities under the Debt Collection Act are provided in Appendix D.

J. Interest Calculation Table. A table to assist Area Offices in calculating interest is provided in Appendix E.

K. Reports Supporting Debt Collection. Appendix F briefly describes penalty related reports available from the micro computers which may assist in debt collection activities.

David C. Zeigler Director Administrative Programs

Distribution: National, Regional and Area Offices 18(b) States with Micros Area Office Clerks

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OSHA Instruction FIN 8.1 OCT 1 1986 Office of Management Data Systems

Appendix A

N O T I C E

Pursuant to the Debt Collection Act, of 1982 (Public Law 97-365) and regulations of the Department of Labor (29 CFR Part 20), effective March 8, 1985, the Occupational Safety and Health Administration is required to assess interest, penalties, and fees to cover the administrative costs of collecting delinquent penalties for violations of the Occupational Safety and health Act.

Interest charges are assessed at an annual rate determined by the Secretary of the Treasury. This rate is currently _______%.

Interest shall accrue from the date on which the citation and penalty (as proposed or adjusted) become a final order of the Occupational Safety and Health Review Commission (that is, 15 working days from your receipt of the citation and proposed penalty, unless you mail a notice of contest). Interest charges shall be waived if the full amount owed is paid within 36 calendar days of the final order.

After 30 calendar days, the debt shall be delinquent unless a satisfactory payment arrangement has been made. Agencies of the Department of Labor are required to assess the administrative costs of recovering delinquent debts. If the debt remains delinquent for more than 90 calendar days, an additional penalty of six percent (6%) per annum shall be assessed accruing from the date that the debt became delinquent.

To avoid additional charges, please remit payment promptly to this Area Office for the total amount of the uncontested penalties shown on the citation. Make your check or money order payable to: "DOL-OSHA." Please indicate OSHA's Inspection Number and Reporting ID (see citation) on the remittance.

Sincerely,

_____________________________________ Date:___________________

Area Director

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OSHA Instruction FIN 8.1 OCT 1 1986 Office of Management Data Systems

Appendix B

DEMAND LETTER

(Date) Inspection No: ____________

Company Name Reporting ID: ____________

Street Address City, State, Zip Code Due Date: ____________

Dear

A notification of payment due for penalties assessed under the Occupational Safety and Health Act was sent to your firm on (date). Payment was due on the date shown above and our records show that full payment has not yet been received. Unless payment is already in the mail, the unpaid balance shall be deemed delinquent.

Pursuant to the Debt Collection Act of 1982 (Public Law 97-365) and regulations of the Department of Labor (29 CFR Part 20), effective March 8, 1985, the Occupational Safety and health Administration is required to assess interest, as well as delinquent and administrative charges for overdue penalties. Interest on the unpaid balance which accrues at an annual rate of

___ percent a year from the date the payment became due has been assessed. In addition, the administrative cost of $15.00 which has been incurred for this collection letter in order to recover the amount due has also been assessed. If the total amount due, including penalty, interest and administrative costs is not paid within one month of the date this letter is received, the matter will be referred to the National Office of the Occupational Safety and Health Administration in Washington, D.C. for further action. The National Office will assess additional interest and administrative charges. If the penalty is delinquent for more than three (3) months, a delinquent charge of six percent (6%) a year, accruing from the date that the debt became delinquent, will also be assessed.

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OSHA Instruction FIN 8.1 OCT 1 1986 Office of Management Data Systems

Further, you should be aware that, pursuant to the provisions of the Debt Collection Act, it is the policy of the Department of Labor and the Occupational Safety and Health Administration to disclose information concerning delinquent claims to commercial credit reporting agencies, to utilize the services of private debt collectors and to report information on unpaid debts to the Internal Revenue Service. To preclude exercise of the authorities discussed above and to avoid incurring additional charges, please remit the total amount due as indicated below:

A review of our records indicate that you have paid: $_______________.

The current unpaid balance of the total penalty $_______________. assessed is:

The current total of interest accrued is: $_______________.

The current total delinquent charge at the $_______________. (6%) annual rate is:

The current total charge to cover administrative $_______________. costs is:

TOTAL AMOUNT NOW DUE $_______________.

If you have recently submitted a payment covering the total amount of the penalty due, please disregard this notice. If you are unable to submit full payment at this time, or if you have any questions, please contact me immediately.

Sincerely,

Area Director

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OSHA Instruction FIN 8.1 OCT 1 1986 Office of Management Data Systems

Appendix C

DEFAULT ON REPAYMENT PLAN

(Date) Inspection No: _______________

Company Name Reporting ID: _______________

Street Address City, State, Zip Code Due Date: _______________

Dear

A plan for repayment of penalties assessed under the Occupational Safety and Health Administration was entered into with your firm on __date__. You have failed to comply with the terms of that agreement and have also failed to remit the outstanding balance due or enter into a new repayment plan. Accordingly, this matter will be referred for further action to the National Office of the Occupational Safety and health Administration in Washington, D.C. unless payment of the outstanding balance is received or a new repayment plan agreement is entered into within one month of the date this letter is received.

If you fail to remit payment or enter into a new repayment plan agreement, interest and other charges which accrued but were not collected under the defaulted agreement will be added to the outstanding balance. You will be liable for payment of additional charges as well as the outstanding balance. Further, you should be aware that pursuant to the provisions of the Debt Collection Act, it is the policy of the Department of Labor and the Occupational Safety and Health Administration to disclose information concerning delinquent claims to commercial credit reporting agencies, to utilize the services of private debt collectors and to report information on unpaid debts to the Internal Revenue Service. To preclude exercise of the authorities discussed above and to avoid incurring additional charges, please remit the total outstanding penalty due as indicated below:

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OSHA Instruction FIN 8.1 OCT 1 1986 Office of Management Data Systems

A review of our records shows that:

The original penalty amount was: $_______________.

You have paid: $_______________.

     The total outstanding                 $_______________.
       penalty due is:

If you have recently submitted a payment covering the total outstanding penalty due, please disregard this notice. If you are unable to submit full payment at this time and wish to enter into a new repayment plan agreement or if you have any questions, please contact me immediately.

Sincerely,

Area Director

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OSHA Instruction FIN 8.1 CH-1 JUN 22 1987 Office of Management Data Systems

Appendix D

AREA OFFICE PROCEDURES FOR DEBT COLLECTION

A. Basic Debt Collection Information. When a case enters the debt collection process, certain information must be available in the IMIS. Key inspection and penalty data must be in the Area Office microcomputer system. Any changes to these data fields must be entered when they occur to maintain current and accurate information in the microcomputer and host databases.

1. Citation and Debt Collection Notice Issuance. A field office issues a citation by entering OSHA-1B and OSHA-1B(IH) information into the microcomputer. The assembled citations are sent by certified mail, return receipt requested, to the employer with the citation transmittal letter and the Notification of the Provisions of the Debt Collection Act. Use standard inspection formletter "a" or "l".

2. Penalty Due Date.

a. Green Card Returned. When the green card is returned, the Penalty Due Date is calculated in accordance with FOM policy and entered in item 44, Penalty Due Date, on the OSHA-167I screen. (See Figure D-1.) For Failures to Abate (FTA's), create an OSHA-167I using the original inspection number (not the follow-up) and enter the FTA Penalty Due Date in the field provided for it on the third screen of the OSHA-167I. (See Figure D-2.)

b. Green Card Not Returned. If the latest green card is not returned, calculate the penalty due date based on the latest citation issuance date. Add three days for mailing to the estimation of the due date.

c. Changes in Due Date. If the date the penalty is due changes for any reason, the office must report that change in the appropriate field on the OSHA-167I screen.

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OSHA Instruction FIN 8.1 CH-1 JUN 22 1987 Office of Management Data Systems

3. Citation Changes. If the penalty amounts or violations change for any reason, the office must enter the changes into the micro-computer via the OSHA-166.

B. Exemptions from Normal Debt Collection Procedures.

1. Approved Repayment Plan. The office may enter into an approved repayment plan with the employer in accordance with FOM policy. Debt collection proceedings shall not be initiated so long as the employer meets the terms of the agreement. Partial payments that are part of an approved payment plan exempt the employer from debt collection proceedings.

a. Reporting the Repayment Plan. The installment dates agreed to in the repayment plan must be entered on the OSHA-167I screen, item 45, Installment Dates. Only use these fields for an approved payment plan.

b. Payments. Payments against the plan should be reported as any penalty payment would be reported. See paragraph C, Payments.

c. Failure to Meet the Payment Plan Schedule. If the employer fails to meet the terms of the repayment plan, proceed according to the following instructions.

(1) Default Letter. The Office shall send a payment plan default letter (see Appendix C) to the employer. Use the standard inspection formletter "n" on the micro-computer to generate the letter. No interest or administrative charges shall be assessed with this letter. Enter an OSHA-167I on the microcomputer to indicate that this letter has been sent. In the Interest/Administrative Information on the OSHA-167I, enter Additional Fee Type of "1" for penalty or "2" for FTA penalty, enter zero for the Amount, and enter the date the letter was sent in Additional Fee Date. If there is no response from the employer within one month of the date sent, then refer the case to the National Office DCAT team for collection.

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OSHA Instruction FIN 8.1 CH-1 JUN 22 1987 Office of Management Data Systems

(2) One Month Day Waiting Period. The Office shall wait one month for a resolution of the case. The payment plan may be renegotiated during this period.

(3) No Resolution After One Month. If after one month the case has not been resolved in some way, the Office shall turn the case over to the National Office for collection. See paragraph E.2.

2. Contested Cases. On receipt of an employer's notification of contest, the Office forwards the case file to the Regional Solicitor. The information concerning what was contested and when shall be entered in the microcomputer via the OSHA-166. Debt collection proceedings shall not be initiated if any single violation, abatement date or penalty is contested. Debt collection proceedings only resume after the contest is resolved.

3. Writing off Penalties. In addition to exemptions, an Office may write off penalties. Reference the Field Operations Manual for policy on write-offs.

C. Payments. Money transactions must be reported via the OSHA-163 as follows.

1. Payments Received in Timely Manner. When a payment is received, the office shall report it via an OSHA-163 on the microcomputer. The OSHA-163 printed by the microcomputer will be sent with the checks to the Lock Box. For FTA's, report the payment against the original inspection, not the follow-up.

2. Refunds and Unhonored Checks. While the case is still under the control of the Office, the Office shall report refunds or unhonored checks by entering the OSHA-163 (marked Refund or Unhonored Check) on the microcomputer.

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OSHA Instruction FIN 8.1 CH-1 JUN 22 1987 Office of Management Data Systems

3. Payments Received After the Case is Turned Over to the National Office. If a payment is received after the case has been turned over to the National Office for collection, the Office shall telephone the OMDS Debt Collection Accountability Team (DCAT) at FTS 523-6286 as soon as possible to report the payment and shall forward the payment to OMDS. The Office shall keep a photocopy of the check in the case file with an indication of when the check was sent to OMDS. Do not enter the payment on an OSHA-163 and do not send the check to the Lock Box.

The check itself shall be annotated with the inspection number and forwarded to OMDS on the day of receipt to the following address:

Occupational Safety and Health Administration Delinquent Accounts Collection Post Office Box 2422 Washington, D.C. 20013

4. Payments Received After the Case is Returned to the Office. Submit an OSHA-163 through the microcomputer and forward the check to the lock box depository if payment is received at the Office after the case has been returned from the National Office.

D. Penalty Status. The IMIS microcomputer system has been redesigned to incorporate two fields for penalty status, one for the original penalty and one for the FTA additional penalty. Item 49 on the OSHA-167I has been renamed Penalty Status and is used for the status of the original penalty. (See Figure D-1.) A new field has been added at the end of screen 3 of the OSHA-167I for the status of FTA penalties; this new field is called FTA Penalty Status. (See Figure D-2.)

These fields allow the office to track the final status of debts without having to enter all the Information generated by the National Office during debt collection.

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OSHA Instruction FIN 8.1 CH-1 JUN 22 1987 Office of Management Data Systems

The following codes shall be recorded in each field to indicate the final resolution of the efforts to collect the debt.

a = Written off by Area Director/Regional Administrator b = Written off by Solicitor c = Paid at field level d = Written off by National Office e = Paid at National level

Complete the penalty status field only after the final actions by the area office have been taken to collect all monies owed by the employer. This field should reflect the final status of the case, not an interim payment status. Further details on when to use these fields is discussed below.

Note that the fields are not automatically updated when payments are received. If an office wishes to use the fields in the inspection file for local reports, the fields should be updated with a "c" when a payment in full is recorded on the OSHA-163. The database field names are ins_pen_status and ins_fta_status and the values are stored as upper case letters.

E. Past Due Penalties.

1. All or Part of Penalty Outstanding One Month after Penalty Due Date. If, one month after the Penalty/FTA Penalty Due Date, any part of the penalty is still outstanding and none of the exemptions in paragraph B above apply, the office will send a demand letter to the employer.

a. Calculating Interest. One month's interest shall be calculated using the current rate set by Treasury. See Appendix E for calculating interest.

b. Generating the Letter. Use the standard inspection formletter "m" on the microcomputer to create the demand letter.

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OSHA Instruction FIN 8.1 CH-1 JUN 22 1987 Office of Management Data Systems

c. Reporting the Information. The information related to the letter and the interest shall be reported through the IMIS via the Interest/Administrative Information on the OSHA-167I screens.

                                         For interest
                                          /
                                         /      /Interest calculated on the
               Add'l Fee Type        : i       / outstanding penalty.
               Add'l Fee Amount      : $00.00
               Add'l Fee Date        : date ----Ending date used in the
               Add'l Fee Written Off :          interest calculation (one
               Reason Fee Written Off:          month from Penalty Due Date).

                                       For the first penalty dunning letter.
                                        /
                                       /      / Administrative charge for
               Add'l Fee Type       : 1      /  letter.
               Add'l Fee Amount     : Appropriate letter cost.
               Add'l Fee Date       : date --- Date the letter was sent.
               Add'l Fee Written Off  :
               Reason Fee Written Off :

If the FTA Penalty is overdue, report the administrative charges against the original inspection (not the follow-up; as follows:

/ For interest on the FTA penalty. / / / Interest calculated on the Add'l Fee Type : f / outstanding FTA penalty. Add'l Fee Amount : $00.00 Add'l Fee Date : date --- Ending date used in the Add'l Fee Written Off : interest calculation Reason Fee Written Off: (one month from FTA Penalty Due Date).

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OSHA Instruction FIN 8.1 CH-1 JUN 22 1987 Office of Management Data Systems

/ For the FTA dunning Letter / Add`l Fee Type : 7 / Administrative charge for letter. Add`l Fee Amount : Appropriate letter cost. Add`l Fee Date : date --- Date the letter was sent. Add`l Fee Written Off : Reason Fee Written Off :

2. All or Part of Penalty Unpaid One Month After Demand Letter Sent. If all or part of the penalty is still unpaid one month after the demand letter was sent to the employer, the Director shall determine whether to write off the outstanding penalty or to pursue the collection of the debt.

a. Debt Written Off. The outstanding debt may be written off in accordance with FOM policy.

(1) Penalty Written Off. If all or part of the outstanding original penalty is written off, enter an "a" in Penalty Status, Item 49 on the OSHA-167I. If all or part of the outstanding FTA Penalty is written off, enter an "a" in FTA Penalty Status on screen three of the OSHA-167I. Completion of this field will automatically write off any Interest or Administrative fees as well as any unpaid penalty.

(2) Interest or Administrative Fees Written Off. There are very few circumstances under which interest and/or administrative fees may be properly written off without also writing off at least part of the original penalty. This is true since any payment must first be applied to the administrative fees and the interest, not the penalty.

If a circumstance arises where the Office believes that only the interest or administrative fees should be written off and none of the penalty, call the OMDS DCAT at FTS 523-6286. OMDS will update the microcomputer and host, if necessary.

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OSHA Instruction FIN 8.1 CH-1 JUN 22 1987 Office of Management Data Systems

If the interest and administrative fees were charged in error, any amount reported to the IMIS should be deleted; the monies should not be written off. Call OMDS DCAT for assistance.

b. Debt Pursued. The Office will turn over to the National Office eligible cases for which the debt will be pursued.

First, the Office must verify essential information and forward any changes to the host. Second, once this is completed, a modified OSHA-1 must be submitted officially transferring control of the Debt Collection process on the case to the National Office. Control will be automatically transferred once these two steps are properly completed; no documents will be sent through the mail.

One month must elapse after the first demand letter is issued before transferring a case. For older cases where more than one letter was sent, one month must elapse after the last demand letter was sent.

NOTE: All cases tuned over to the National Office must be entered into the IMIS microcomputer. If the case being forwarded has not previously been entered, enter the OSHA-1 and all pertinent OSHA-167I penalty and debt collection information. It is not necessary to enter the OSHA-1B's, although the Debt Collection Accountability Team may contact the Office to confirm the accuracy of the data on file at the host.

The following actions must be taken to turn over a case to the National Office.

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OSHA Instruction FIN 8.1 CH-1 JUN 22 1987 Office of Management Data Systems

(1) Verify Essential Information. Verify the following information against the most accurate source.

Establishment Name Site Address Mailing Address where Demand Letter should be sent Name of Controlling Corporation Penalty/FTA Penalty Due Date Letters Sent Assessed Penalty/FTA Penalty for each Violation Penalty Payment(s) Received Employer Phone Number

NOTE: Collection of FTA Penalties should be associated with the original inspection, not the follow-up.

A Case Audit Report can be used for debt collection verification. It shows what information is currently on the microcomputer. The micro data should be compared to actual case file documents to verify data accuracy.

(a) Incorrect Establishment Name or Address. If the name or address is incorrect, correct the record through Establishment Modification. The new software update CMP 1.0 no longer requires that a modified OSHA-1 be sent to the host. Changing the name or address through Establishment Modification updates the microcomputer and the host.

(b) Incorrect Penalty Due Dates. No penalty due date on any open case today should be before September 1, 1985 when the debt collection procedures began. Any penalty due date before that date should be changed to the date on which the first debt collection letter was sent.

(c) Other Information Incorrect. If any of the other required information is incorrect, submit the proper forms, e.g. OSHA-166 or OSHA-167I, to update the IMIS.

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OSHA Instruction FIN 8.1 CH-1 Office of Management Data Systems

NOTE: Make sure that all letters and interest fees are accurate. Do not combine letter/interest updates and the transferring of cases on the same EOD/SOD cycle. After an EOD/SOD cycle has processed all updates without any errors, create the OSHA-1 Mod to transfer the case.

(2) Case Ready for National Office to Pursue Dept. When the above information has been verified and the case is ready to be turned over to the National Office, submit a modified OSHA-1 containing the employer's telephone number and specific information in Optional information.

(a) Add Employer Telephone Number. Create an OSHA-1 mod. In the field titled Collection Phone # immediately under the CSHO Job Title on screen three, (Figure D-3), enter a telephone number at which the employer can be reached. Include the Area Code.

(b) Determine the Total Outstanding Penalty. Determine the total outstanding penalty and/or FTA additional penalty. Reflect any changes to assessed penalties and any payments made. Exclude unpaid interest and administrative charges. These will be recalculated by the host computer.

(c) Complete Optional Information Fields. The office shall enter the following in OptionaI Information:

For Penalties:

Type ID Value

                          N       12   Outstanding Penalty Amount
                                       (enter NNN.NN)
                          N       13   Date Turned Over for Collection
                                       (enter MM/DD/YY using slashes)

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OSHA Instruction FIN 8.1 CH-1 JUN 22 1987 Office of Management Data Systems

For FTA Penalties:

Type ID Value

                          N      14   Outstanding Additional Penalty Amount
                                      (enter NNN.NN)
                          N      15   Date Turned Over for Collection
                                      (enter MM/DD/YY using slashes)

(d) Submit all Modifications to Host. Once all items in (a) - (c) above have been entered, submit the OSHA-1 to the host by pressing F3.

NOTE: Cases being referred to the National Office for debt collection must be transmitted via EOD and accepted by the host within 7 days of the date recorded in Optional Info N13. Any OSHA-167I with a date more than 7 days in the PAST will be rejected.

(3) Reconciling the Microcomputer and Host. When the above record is sent on EOD, the host will calculate an unpaid penalty balance based on the violation and payment records in the host database and compare that value to the outstanding penalty reported by the microcomputer.

(a) Outstanding Penalties Disagree. If the values disagree, the OSHA-1 will reject and a message will be returned to the microcomputer indicating that fact. The message will include what the host has calculated as the unpaid penalty. The Office will have to work with the OMDS DCAT staff to determine where the discrepancy lies. Correcting the discrepancy may require action on the part of the microcomputer operator and/or OMDS DCAT staff.

(b) Outstanding Penalties Agree. If the microcomputer and host agree in their determination of outstanding penalties, the OSHA-1 will be accepted and the National Office will proceed with debt collection actions against that employer.

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OSHA Instruction FIN 8.1 CH-1 JUN 22 1987 Office of Management Data Systems

(c) National Office Control. Once the form containing the Telephone Number and Optional Information entries is accepted by the host, control of the Debt Collection process rests with the National Office. Any forms submitted by the Office which attempt to modify penalty, contest or payment Information will be rejected by the host.

(d) Office Responsibility. The Office's responsibility for tracking penalties is assumed by the National Office until such time as the case is returned paid or the case is returned for further collection action with the Solicitor.

The case shall remain open until the collection activity is completed. Responsibility for closing the case will rest with the Office.

F. Case Returned to Office. The Office shall be notified by the National Office of the outcome of its debt collection efforts. This information shall be sent in a one-page report for each inspection. It will include all the information related to the collection activities conducted by the National Office and debt collection firm. This report shall be filed in the official case file.

The Office must update the Penalty Status and FTA Penalty Status fields on the microcomputer with the current status of the case once it is returned from the National office. This will bring local records up to date and ensure the accuracy of future delinquent case reports. The detailed information need not be entered into the microcomputer. It will be stored in the host database by OMDS and will be available to Offices via reports and/or queries.

1. Penalty Paid. If the debt is collected in full, use the Penalty Status (Item 49) field on the OSHA-167I to report that the original penalty has been collected, or the FTA Penalty Status field to report that the additional penalty has been collected. Use the code of "e" for Paid at the National Office. If the information relates to an FTA Penalty, use the original inspection number, not the follow-up.

Close the case if all other criteria for closing have been met.

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OSHA Instruction FIN 8.1 CH-1 JUN 22 1987 Office of Management Data Systems

2. Penalty Not Paid.

a. Debt Shall Not Be Pursued. If the debt has not been collected and a decision has been made not to pursue collection further, update the microcomputer by entering a "d" in Penalty Status, item 49, on the OSHA-167I. If the debt is for an FTA Penalty, use the original inspection number and update the FTA Penalty Status field with a "d".

If the case is partially paid and partially written off, use the codes for collection waived to update these fields. Close the case if all criteria for closing have been met.

b. Debt Shall be Pursued Through Litigation. The Directorate of Field Operations (DFO) will advise the Office whether to pursue the debt through litigation.

(1) Case Forwarded to Solicitor For Collection. If the Office has been instructed to pursue the case, forward the case file together with the Claims Collection Litigation Report (CCLR) to the Regional Solicitor for collection. The CCLR shall be provided to the Office by DFO.

Update the microcomputer by entering the date the case file was sent to the Solicitor in Item 22, Date File to Solicitor, of the OSHA-167I screen. In Item 23, Reason Sent, enter a "c" for Penalty Collection.

(2) File Returned from Solicitor.

(a) Payment Received. If payment is received by the Solicitor, the Office must update the IMIS using both the OSHA-163 and the Penalty Status/FTA Penalty Status fields.

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OSHA Instruction FIN 8.1 CH-1 JUN 22 1987 Office oF Management Data Systems

If the Solicitor forwards the check to the Office, the Office should process an OSHA-163 as usual and forward appropriate copies to the Lock Box Depository. If the Solicitor processes the payment and notifies the Office, create an OSHA-163 on the microcomputer to indicate that the payment has been made; do not forward a copy of the OSHA-163 to the Lock Box.

Update the Penalty Status and/or FTA Penalty Status fields on the OSHA-167I screen by entering a "c" to indicate that the penalty was paid at the field level. Close the case, if applicable.

(b) Payment Not Received. If the Solicitor is unable to obtain payment, enter a "b" in the Penalty Status and/or FTA Penalty Status fields on the OSHA-167I to indicate that the collection has been waived by the Solicitor. Close the case, if applicable.

c. Debt Pursued in Event of Bankruptcy. In cases of bankruptcy, each Area Office should follow the bankruptcy claim filing procedures they have established. This claim should include all penalties, interest, delinquent fees and administrative costs assessed against the company as of the bankruptcy date.

The Office must complete a OSHA-167I form on the microcomputer to transmit the necessary information. Complete the Close Case section, if all abatements have been completed, enter an "a" in item #49 Penalty Status and/or FTA Penalty Status to indicate the collection waived by the Area Office and add the following to Optional Information:

Type ID Value

N 17 Date of Bankruptcy

(enter MM/DD/YY using slashes)

At such time that any money is received from the claim, the office should create an OSHA-163 to reflect the amount received.

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OSHA Instruction FIN 8.1 CH-1 JUN 22 1987 Office of Management Data Systems

Figure D-1

OSHA-167I, Screen 2

.......................................................................... .CASE FILE PREPARATION OSHA-167I Page 2 of 3 . . 13. Citation No: ^^ ^^ ^^ ^^ ^^ ^^ ^^ . . 14. Last Contact Date : ^^/^^/^^ . . 15. Last Contest Date : ^^/^^/^^ PMA . . 16. Tracking 1 : ^^/^^/^^ 18. Date Rqst Rcvd : ^^/^^/^^ . . Tracking 2 : ^^/^^/^^ 19. Incomplete/Send Ltr : ^ . . Tracking 3 : ^^/^^/^^ 20. Insp Required? (y/n): ^ . . Tracking 4 : ^^/^^/^^ 21. PMA Action Date : ^^/^^/^^ . . . .PENALTY INFORMATION . . 44. Penalty Due Date : ^^/^^/^^ . . 45. Installment Dates . . a. Next Payment : ^^/^^/^^ . . b. Final Payment : ^^/^^/^^ . . Number Installments : ^^ . . 49. Penalty Status : ^ (a-e) . .INTEREST/ADMINISTRATIVE INFORMATION (F6 to exit) . . Additional Fee Type : ^ (1,7,i or f) . . Additional Fee Amount : $^^^^^^^.^^ . . Additional Fee Date : ^^/^^/^^ . . Additional Fee Waived : $^^^^^^^.^^ . . Reason For Fee Waived : ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ . . (Total Number Entries : ^^ ) . . . ..........................................................................

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OSHA Instruction FIN 8.1 CH-1 JUN 22 1987 Office of Management Data Systems

Figure D-2

OSHA-167I, Screen 3

.......................................................................... .SOLICITOR CASE OSHA-167I Page 3 of 3 . . 22. Date to Solicitor : ^^/^^/^^ . . 23. Reason Sent (a-f) : ^ 33. Warrant Return Due : ^^/^^/^^ . . 24. File Returned 34. Denial Withdrawn : ^ . . From Solicitor : ^ 35. Subpoena Rqst Withdrawn : ^ . . 25. Solicitor Number : ^^^^^^^^^ Warrant Rqst Withdrawn : ^ . . 26. Attorney . . Assigned : ^^^^^^^^^^^^^^ CONTESTED INSPECTION . .SUBPOENA INFORMATION 36. Docket Number : ^^^^^^^^ . . 27. Antic Subpoena Rqstd :^^/^^/^^ 37. Union Status Granted : ^ . . Type (a or b) :^ 38. Date Notice of Sett. : ^^/^^/^^ . . 28. Subpoena Rqstd :^^/^^/^^ 39. Signed Stipul Rcvd : ^ . . Type (a or b) :^ 40. Hearing Held : ^ . . 29. Signed Subpoena Recd :^^/^^/^^ 41. Decision Date : ^^/^^/^^ . . Not Approved :^ Decision Type : ^ . .WARRANT INFORMATION 42. Appealed : ^ . . 30. Antic Warrant Rqstd :^^/^^/^^ 43. Contest Closed : ^ . . 31. Warrant Rqst SOL/AG :^^/^^/^^ . . Not Requested :^ FTA PENALTY INFORMATION . . Authorization (a or b):^ FTA Penalty Due Date : ^^/^^/^^ . . 32. Warrant to Court :^^/^^/^^ FTA Penalty Status : ^ (a-e) . . Date Unknown :^ . . Granted/Denied(a or b):^ . . . ..........................................................................

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OSHA Instruction FIN 8.1 CH-1 JUN 22 1987 Office of Management Data Systems

Figure D-3

OSHA-1, Screen 3

.......................................................................... .OSHA-200 DATA OSHA-1 Page 3 of 3. .31. Year: ^^^^ 32. Not Avail: ^ 33. LWDI Rate: ^^^^^ . .34. Occupational Injury/Illness Cases . . 1) ^^^^ 2) ^^^^ 3) ^^^^ 4) ^^^^ 5) ^^^^ 6) ^^^^ . . 7a) ^^^^ b) ^^^^ c) ^^^^ d) ^^^^ e) ^^^^ f) ^^^^ g) ^^^^ . . 8) ^^^^ 9) ^^^^ 10) ^^^^ 11) ^^^^ 12) ^^^^ 13) ^^^^ . . . .35. Scope of Insp : ^ (a-d) . .36. No. Days Visited : ^^^ . . . .WARRANT INFORMATION CLOSED CASE . .37A.Antic Warrant : ^ 44A. Close Case : ^ . . B.Antic Subpoena : ^ Date Case Closed : ^^/^^/^^ . .38. Date Denied : ^^/^^/^^ B. No Citations Issued : ^ . .39. Date Re-Entered : ^^/^^/^^ 45. Reason No Inspection : ^ (a-i) . .40. Date Re-Denied : ^^/^^/^^ 46. Close Confer Date : ^^/^^/^^ . .41. Date Re-Entered : ^^/^^/^^ . . CSHO Job Title : ^^ . .OPTIONAL INFORMATION (F6 To Exit) . .42. Type : ^ Collection Phone # : ^^^_^^^_^^^^ . . ID : ^^ . . Value : ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ . .43. Total Entries : ^^ . . . ..........................................................................

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OSHA Instruction FIN 8.1 CH-1 JUN 22 1987 Office of Management Data Systems

Appendix E

MONTHLY DEBT COLLECTION CHARGES

DOL-OSHA-OMDS 02/26/87 (RSRMCHRG) U. S. D E P A R T M E N T O F L A B O R MONTHLY DEBT COLLECTION CHARGES

INTEREST CHARGES FOR ONE MONTH BASED ON 7% RATE PER ANNUM

THIS CHART CAN BE USED TO ASSIST IN COMPUTING INTEREST CHARGES WHEN NO PAYMENT HAS BEEN RECEIVED BY THE DEBTOR, OR WHEN A BALANCE IS STILL OUTSTANDING. THE CALCULATION USED IS: INTEREST= PRINCIPLE X 7% DIVIDED BY 12

DEBT 05 10 15 20 25 30 35 40 45 50 55 60 65 INTEREST 0.03 0.06 0.09 0.12 0.15 0.17 0.20 0.23 0.26 0.29 0.32 0.35 0.38

70 75 80 85 90 95 100 0.41 0.44 0.47 0.50 0.52 0.55 0.58

DEBT 105 110 115 120 125 130 135 140 145 150 155 160 165 INTEREST 0.61 0.64 0.67 0.70 0.73 0.76 0.79 0.82 0.85 0.87 0.90 0.93 0.96

170 175 180 185 190 195 200 0.99 1.02 1.05 1.08 1.11 1.14 1.17

DEBT 205 210 215 220 225 230 235 240 245 250 255 260 265 INTEREST 1.20 1.22 1.25 1.28 1.31 1.34 1.37 1.40 1.43 1.46 1.49 1.52 1.55

270 275 280 285 290 295 300 1.57 1.60 1.63 1.66 1.69 1.72 1.75

DEBT 305 310 315 320 325 330 335 340 345 350 355 360 365 INTEREST 1.78 1.81 1.84 1.87 1.90 1.92 1.95 1.98 2.01 2.04 2.07 2.10 2.13

370 375 380 385 390 395 400 2.16 2.19 2.22 2.25 2.27 2.30 2.33

DEBT 405 410 415 420 425 430 435 440 445 450 455 460 465 INTEREST 2.36 2.39 2.42 2.45 2.48 2.51 2.54 2.57 2.60 2.62 2.65 2.68 2.71

470 475 480 485 490 495 500 2.74 2.77 2.80 2.83 2.86 2.89 2.92

DEBT 505 510 515 520 525 530 535 540 545 550 555 560 565 INTEREST 2.95 2.97 3.00 3.03 3.06 3.09 3.12 3.15 3.18 3.21 3.24 3.27 3.30

570 575 580 585 590 595 600 3.32 3.35 3.38 3.41 3.44 3.47 3.50

DEBT 605 610 615 620 625 630 635 640 645 650 655 660 665 INTEREST 3.53 3.56 3.59 3.62 3.65 3.67 3.70 3.73 3.76 3.79 3.82 3.85 3.88

670 675 680 685 690 695 700 3.91 3.94 3.97 4.00 4.02 4.05 4.08

DEBT 705 710 715 720 725 730 735 740 745 750 755 760 765 INTEREST 4.11 4.14 4.17 4.20 4.23 4.26 4.29 4.32 4.35 4.37 4.40 4.43 4.46

770 775 780 785 790 795 800 4.49 4.52 4.55 4.58 4.61 4.64 4.67

DEBT 805 810 815 820 825 830 835 840 845 850 855 860 865 INTEREST 4.70 4.72 4.75 4.78 4.81 4.84 4.87 4.90 4.93 4.96 4.99 5.02 5.05

870 875 880 885 890 895 900 5.07 5.10 5.13 5.16 5.19 5.22 5.25

DEBT 905 910 915 920 925 930 935 940 945 950 955 960 965 INTEREST 5.28 5.31 5.34 5.37 5.40 5.42 5.45 5.48 5.51 5.54 5.57 5.60 5.65

970 975 980 985 990 995 1000 5.66 5.69 5.72 5.75 5.77 5.80 5.83

OSHA Instruction FIN 8.1 CH-1 JUN 22 1987 Office of Management Data Systems

Appendix F

MICRO REPORTS TO SUPPORT DEBT COLLECTION

A. The Case Audit Report includes detailed violation and penalty payment data showing the status of a single inspection identified by the user. Refer to the Reports Documentation Manual for the IMIS, Volume 1, Micro Reports for more information.

B. The Debt Collection Report prints out a list of cases which require further action by the local office. This information can be used to trigger debt collection activities and provides the user with information necessary for the proper control and tracking of the debt collection process. For more information, refer to the Reports Documentation Manual for the IMIS, Volume 1, Micro Reports.

F- 1

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