Functionality of the Debt Management Collection System 2

We reported that FSA did not always accurately assess the operational status of the fully or partially operational functions, processes, and subprocesses. We also noted that FSA did not sufficiently document its validation assessments. As a result, there was a risk that FSA did not accurately assess the operational status of additional DMCS2 functions, processes, and subprocesses reported as fully or partially operational. We also found that FSA did not provide consistent and effective instructions to servicers to correct inaccurate loan balances in DMCS2 and, as a result, inaccurate loan balances remained in DMCS2. Finally, we reported that FSA did not adequately oversee debt accounts in DMCS2 that were not assigned to a private collection agency and, as a result, there was no assurance that debt accounts were properly processed in DMCS2.