Section 320.60  State Agency Internal Offsets

a)         State agencies shall develop internal procedures whereby agency-initiated payments to its debtors may be offset without referral to the Comptroller's Offset System (Ill. Rev. Stat. 1986 Supp., ch. 15, par. 155(d)).

b)         These procedures must include the following standards:

1)         A specified point at which a claim must be entered into the system; for example, claims more than $500 and over 120 days past due.  This point will vary by agency and nature of the receivables.

2)         Procedures for notifying the debtor of the amount and reason for a deduction.

3)         Procedures for removing a claim from the system.

4)         A procedure for reporting to the Comptroller whenever an offset is made between two different funds within the agency; this report must include:

A)        The name and Comptroller-assigned number of the fund to which the debt is owed;

B)        The amount owed;

C)        The name and Comptroller-assigned number of the fund from which the offset deduction was made;

D)        The amount deducted; and

E)        The date of the deduction.