Debt Collection

Air Force Efforts To Collect Debts From Former Service Members Gao ID: AFMD-86-48BR April 30, 1986

In response to a congressional request, GAO provided information on the Air Force's efforts to collect debts former service members owed it.

GAO found that: (1) during the past 5 years, debts increased significantly; (2) collection rates fluctuated and then decreased; (3) enlistment/reenlistment bonuses paid to ineligible service members accounted for the majority of the debts; and (4) the Air Force is designing a new accounts-receivable system, which it expects to implement by November 1987. GAO also found that: (1) receivables from enlistment/reenlistment bonuses will most likely increase in the future because the Air Force will increase the amount of bonus paid upon reenlistment from 50 percent to 75 percent; (2) the Air Force identifies many debts when members leave the service early; (3) the Air Force has contracted with collection agencies to recover delinquent funds; and (4) the Air Force plans to offset debts against income tax refunds.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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