Performance Agreements -- Loan/Debt Collection Program

7. Establish performance agreements on each major loan and debt
collection program. (2)

The key element in the new approach to federal credit management and
debt collection should be the negotiation, between each agency and OMB,
of performance agreements for each major loan and debt collection
program. Basic agreements should be established and then updated
annually. Agreements should include a description of the agency's
strategies for using debt collection tools for each of its major
programs.

The negotiated performance agreements should identify quantifiable
program results and financial management performance indicators to which
program managers would be held accountable. Goals established in the
performance agreements should be specific to each loan and debt
collection program, in recognition of the differences in risk for each
program. The accuracy of the reported results should be attested to by
auditors as part of the audits of financial statements of these
programs.