ÖгöÉÙ¸¾ÊÓƵ

(Last Modified on April 3, 2019)

Prompt billing for reimbursement of expenses or charges arising from services provided under various agreements is essential for effective management of accounts receivable. Information must be maintained on the status of all unbilled accounts to ensure that all actions necessary for the preparation of the bill have been taken as required, which will allow the bill to be issued as expeditiously as possible.

Implicit in the extension of credit by an institution is the intention that payment will be made in full upon receipt of a bill.

10.2.1 Billing and Collections

(Last Modified on July 1, 2024)

Any debt owed to a unit of the ÖгöÉÙ¸¾ÊÓƵ should be linked to a specific debtor with appropriate documentation identifying the name of the debtor, the amount due, the nature of the debt and the date payment is due. Per State Accounting Office (SAO) guidelines, state organizations are required to:

• Prepare and send bills in a timely manner (monthly).
• Billing invoices should include amount due, organizational contact information and remittance requirements.
• Proceed with third party collection efforts if internal billing efforts are ineffective.
• Discontinue services to delinquent customers, including students.
• Place a hold on diplomas until outstanding amounts are collected from students.

Note: For billing purposes due date is defined as follows:

1. 1) For student accounts, the due date is generally the final day of drop/add.
   2) For non-student accounts, the due date is generally thirty (30) days after the invoice date.
   3) For institutions operating under approved payment plans, due dates will correspond to terms of payment plan approved by ÖгöÉÙ¸¾ÊÓƵ Chief Financial Officer.
   4) For student accounts, where approved aid has been withdrawn, the due date maybe modified in order to give the student and institution an opportunity to locate other payment arrangements. The revised date should not extend beyond 10 days from the date aid was withdrawn. If the due dates cannot be changed in the accounts receivable subsystem, any modifications would have to be tracked manually by the institution.
   

Presidents and chief business officers are authorized to file actions in small claims court for the collection of debts over which they have administrative control.

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10.2.2 Aging Accounts Receivable

(Last Modified on April 3, 2019)

Institutions are required to properly age accounts receivable to assist in the determination of collectability. Adequate information concerning the age of outstanding accounts receivable is essential for proper overall control of accounts receivable process. Therefore:

1. Aging information must be collected, maintained, reported, and acted upon in a standardized and consistent manner.
2. Levels of effort in record keeping and collection must be commensurate with collection value.
3. Outstanding invoices must be collected as expeditiously as possible, but the cost(s) of collection should not exceed the expected revenue. Cost of collection efforts should be monitored to ensure that costs do not exceed obligation due.

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10.2.3 Analysis and Reporting

(Last Modified on April 8, 2019)

The BANNER accounts receivable subsystem should be reconciled on a daily basis, if practical. However, each institution must, at a minimum, reconcile accounts receivable on a quarterly basis as required by SAO. The BANNER subsystem must be reconciled to the People Soft general ledger. This is generally accomplished using three reports (TGRAGES, TGRRCON and ZGRAGES). The TGRAGES, which is by person and detail code should support the TGRRCON which is a summary report in BANNER. ZGRAGES, which is a ITS modification from baseline BANNER, is also available for the reconciliation process because it provides detail by student and fund. ZGRAGES may be more useful than TGRAGES because it can be downloaded into excel. These reports should be ran concurrently to ensure proper reporting. The final part of the reconciliation is to then verify that the TGRRCON reconciles to the People Soft trial balance.

If an institution uses a subsystem other than BANNER to maintain accounts receivable activity, those receivables must also be reconciled, aged and maintained by person/vendor. Also, if the subsystem generates aging and reconciliation reports other than TGRAGES, ZGRAGES and TGRRCON, those reports must be maintained as discussed above and transferred to the ÖгöÉÙ¸¾ÊÓƵ Office of Fiscal Affairs as required by the schedules below.

Each institution is required to submit the TGRRCON, including evidence supporting reconciliation with the general ledger, to the ÖгöÉÙ¸¾ÊÓƵ Office of Fiscal Affairs as follows:

Date of Analysis	Due Date
September 30th	October 31st
December 31st	January 31st
March 31st	May 1st
June 30th	August 1st

Each institution is also required to properly age accounts receivable per SAO requirements. Institutions are required to submit an aging analysis (TGRAGES, ZGRAGES or equivalent) that reconciles to the general ledger to the ÖгöÉÙ¸¾ÊÓƵ Office of Fiscal Affairs on a semi-annual basis. The aging analysis must be submitted as follows:

Date of Analysis	Due Date
December 31st	February 10th
June 30th	10 days after submission of AFR

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