Student Accounts Receivable. November 28, 2007 Presented by: Claire Arnold, CPA

Transcription

1 Student Accounts Receivable Georgia Department of Audits November 28, 2007 Presented by: Claire Arnold, CPA

2 Student Accounts Receivable Board of Regents Policy Manual Section states All tuition and fees are due and payable upon registration. Exceptions to the time of payment are as follows: An institution may defer tuition and fees up to the amount authorized for a specific academic term for students whose fees are guaranteed and will be paid by an outside agency under a documented agreement with the Institution An institution may defer tuition and fees up to the amount of the aid granted for a specific academic term for students who have an institution administered loan or scholarship in process An institution may defer tuition and fees up to the limit stated in the certificate or other document for a specified academic term for foreign students who have a certificate or other acceptable documented evidence that payment will be made after a statement of charges from the student has been presented for payment

3 Student Accounts Receivable Granting of Credit: Receivables for tuition established while waiting for financial aid funds or scholarship funds from third parties on behalf of the student can be established. Students who have not paid or whose financial aid has not been affirmed by the add/drop date should be dropped from class rolls.

4 Student Accounts Receivable Aging and Analysis: Although student accounts receivables for tuition and fees should be kept current, they should be reported on the aging report that is submitted to the University System Office.

5 Student Accounts Receivable Collections: Due process should be followed in the collection of student receivables. Students should be given written notice about the nature and the amount of the outstanding obligation. If financial aid funds, scholarship funds, or guaranteed third party payment are not authorized for the student and he/she cannot pay the tuition, the student should be dropped from class.

6 Student Accounts Receivable All Students having student accounts receivable with a balance older than 90 days must have services withheld until the balance is paid. (transcripts, registering for additional classes, graduation, etc.)

7 Uncollectible Accounts OCGA Section : Allows for uncollectible accounts receivable of $3,000 or less to be written off by institutions of the Board of Regents of the University System of Georgia

8 Uncollectible Accounts Receivable The legislation required the development of appropriate standards to provide a mechanism to consider before any obligation is administratively write-off

9 Uncollectible Accounts Receivable Collection of receivables is a primarily responsibility of the institution Adequate information concerning the age of the outstanding balance is essential Student Accounts Receivable due date should be considered the first day of class Aging information must be collected, maintained, reported and acted upon in a standardized manner.

10 Due Diligence Due Diligence must be completed by the institution: 2 nd Billing (Copy of the Original Invoice at 30 days past due) 3 rd Billing (Past Due Stamp on Original Invoice at 60 days past due) 4 th Notice (Dunning Letter Final Notice) Amounts not collected through routine follow-up should be referred to a collection agency for further collection efforts Levels of effort in record keeping and collection must be commensurate with collection value

11 Uncollectible Accounts Receivable Write-Off After due diligence has been completed by the institution, the institution must summarize these uncollectible accounts receivable in the prescribed format and request permission for the write-offs from the State Accounting Office (SAO). Letter approving write-offs will be provided by the SAO Georgia Department of Audits will review due diligence performed by the institution during their annual review to ensure that accounts receivable should be written off by the Institution

12 Uncollectible Accounts Receivable Write-Off Write-off of receivables is based upon the aggregate of the debtor, not an individual transaction.

13 Auditor Review Review of Student Accounts Receivable Listing TGRRCON reconciliation by fund and account to the general ledger Due Diligence Documentation Reserve for Uncollectible Accounts Receivable Listing Write-Off Approval Letter from State Accounting Office Polices and procedures related to student accounts receivable

14 QUESTIONS?