Departmental Business Management Guide - Accounts Receivable

Contents

• Overview
• University Guidelines
• Internal Controls
• Departmental Responsibilities
• Resources

Overview

Accounts Receivable are amounts due to the University for goods or services that have been provided, but the payment has not been received. Examples include tuition and fees, sponsored projects, student loans, library fines, and parking tickets. It is preferred that University departments accept payment before or upon delivery of a good or service. However, under certain circumstances, it may be necessary to provide a good or service prior to a payment.

University Guidelines

Accounts receivable are processed through the University’s Central Accounts Receivables system, maintained by the Controller’s Office Student Financial Services department. A department wishing to maintain their own accounts receivable must provide the Controller’s Office with evidence of efficiencies and the ability to comply with State law and University policies.

All charges uncollected after 120 days will be deemed uncollectible by the University and sent to a third party collection agency where a 33 1/3% fee will be added to the total amount owed. After a period of two years, charges are no longer actively collected; however, they are still owed to the University and a hold remains on the account. Only the President or his designee can approve the write-off or settlement of uncollected accounts owed to the University.

Internal Controls

• Employees with the responsibility for maintaining and billing accounts receivable should not have responsibility for collecting payments or making deposits.
• Ensure accuracy and completeness of accounts receivable. A detailed list of accounts receivable must be maintained and reconciled on a monthly basis.
• Ensure access to accounts receivable systems and data are restricted to authorized personnel.
• Staff members who handle accounts receivable records must be trained and understand the University's Cash Management policies.
• Ensure the control and security of all cash collections.

Departmental Responsibilities

• Submitting accounts receivable to the Controller’s Office within 30 days of the original charge.
• Maintaining departmental written procedures for establishing, recording, adjusting and reconciling receivable transactions.
• Ensuring employees who are assigned accounts receivable duties are trustworthy and adequately trained.
• Ensuring accurate and timely reconciliations of charges and payments on accounts receivable.
• Ensuring corrections, especially charge adjustment transactions, are properly authorized and processed by the appropriate staff.
• Ensuring bills are accurately prepared and delivered timely.
• Maintaining a billing status and an aging schedule for all receivables.

Resources

• University Policy OP-D-2-B – Cash Management
• Student Financial Services
• Accounts Receivable Forms

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