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)
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.
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.
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.
Executive Vice-Chancellor/Chief Financial Officer
Date: October 31, 2011
APPLICABILITY AND AREAS OF RESPONSIBILITY
RESOURCES AND REFERENCE MATERIALS
Executive Order 1000 – http://www.calstate.edu/EO/EO-1000.html
Executive Order 812 - http://www.calstate.edu/EO/EO-812.pdf
ICSUAM 3132.01 – Write off of Uncollectible Accounts Receivable
ICSUAM 3601.01 CSU Travel Policy – G001 Procedures and Regulations
CSU Mandatory Catalog (http://www.calstate.edu/AcadAff/codedmemos/AA-2011-02-Attachment.pdf )
Sound Business Practices:
Laws, State Codes, Regulations and Mandates:
California Government Code Section 12419 - http://www.leginfo.ca.gov/cgi-bin/waisgate?WAISdocID=97054127985+1+0+0&WAISaction=retrieve
Title 5 California Code of Regulations, Section 42380 - Debts Owed California State University
Title 5 California Code of Regulations, Section 42381 - Withholding of Services for Non-Payment of Debts - http://ccr.oal.ca.gov/linkedslice/default.asp?SP=CCR-1000&Action=Welcome
Federal and State Fair Debt Collection Practices Act -http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf
COGNIZANT OFFICE(S)CO Manager:
Ms. Kelly Cox
Associate Director, Financial Services – Accounting
CSU Office of the Chancellor
Ms. Lisa Chavez