Integrated CSU Administrative Manual

CSU POLICY

Section:  GENERAL ACCOUNTING

Section 3000 Policies

Policy Number:  3131.01

Policy Title: Accounts Receivable Collections

Policy Effective Date: January 1, 2012

Last Revision Date: October 6, 2011
(see revision history)

POLICY OBJECTIVE

It is the policy of the California State University (CSU) that collection efforts be pursued on debts and accounts receivable balances that are valid and past due. Each campus must prepare written procedures that implement this policy.


POLICY STATEMENT

This policy applies to all types of receivables, including student receivables, employee, related party and general.

Campus procedures must describe the collection efforts applicable to each type of past due receivable. In addition, campus procedures must identify the materiality threshold below which collection efforts will not be pursued.

Campuses are expected to utilize all reasonable collection methods including direct contact, collection agencies, legal actions and Franchise Tax Board refund offsets, subject to federal and state laws covering collection practices. Note that the State allows recovery of debts by offset against tax refunds even after the State statute of limitations has expired.

Employee receivables generated from payroll overpayments may be collected using payroll deduction only when the repayment method and terms are expressly agreed upon in writing by the employee and the deduction would not reduce the employee’s wage below minimum wage for any period covered within the terms of the repayment schedule. Payroll deduction may not be used to collect payroll overpayment receivables from an employee’s final paycheck.

Student Receivables:

Term-specific student accounts receivable prescribed collection activity (30/60/90 day notification) will commence no later than the end of the term for which the funds were due.

Campuses must identify and establish due diligence processes and materiality thresholds and define collection procedures on term-based student accounts receivables and any other student debts.

Prior to the prescribed collection activity, clear, timely, and ongoing notification of due dates and student account balances must be conducted by each campus. Some valid methods include: email, messaging, letters, billings, texts, announcements and any web-based methodologies. Each campus is encouraged to utilize holds and enrollment cancellation to manage current term student accounts receivable.

Each campus is authorized to withhold services (such as transcript requests or course registration) as a collection tool when appropriate, including the period after which an account balance has been written-off.


Benjamin F. Quillian
Executive Vice-Chancellor/Chief Financial Officer

Date: October 31, 2011




APPLICABILITY AND AREAS OF RESPONSIBILITY

 

REVISION HISTORY

 

RESOURCES AND REFERENCE MATERIALS

Useful Guidelines:

Related Principles:

 

Sound Business Practices:

Laws, State Codes, Regulations and Mandates:


COGNIZANT OFFICE(S)

CO Manager:

Ms. Kelly Cox
Associate Director, Financial Services – Accounting
CSU Office of the Chancellor
kcox@calstate.edu


Subject Expert:

Ms. Lisa Chavez

lchavez10@csla.calstatela.edu


Affinity Group:

FOA http://foa.calstate.edu

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