10.4 Other Accounts Receivable Issues
10.4.1 Death of a Debtor
(Last Modified on April 9, 2019)
A claim against the estate of a Georgia resident must be prepared in accordance with specific regulations and filed within six (6) months after first publication of notice to creditors. Therefore, in order to assure that the ÖгöÉÙ¸¾ÊÓƵÖгöÉÙ¸¾ÊÓƵ™s interests are fully protected, help from the institutionÖгöÉÙ¸¾ÊÓƵ™s general counsel or the system office, as appropriate, is to be sought whenever an institution receives notification that a person owing money to the institution has died. Potential claims against deceased nonresidents are to be referred to the institutionÖгöÉÙ¸¾ÊÓƵ™s general counsel for guidance. All tuition and fees shall be refunded and the revenue transaction reversed in the event of the death of a student at any time during the academic session. Refer to Section 7.3.5.2, Death of a Student in the BOR Policy Manual for additional information.
10.4.2 Bankruptcy
(Last Modified on April 19, 2019)
Upon receipt of any Notification of Bankruptcy, where an institutional account is involved, cease communication with individual or company that has filed for bankruptcy. Contact institutionÖгöÉÙ¸¾ÊÓƵ™s general counsel to determine how to proceed with the uncollectible account.
If a studentÖгöÉÙ¸¾ÊÓƵ™s account is discharged through bankruptcy, the institution is required to remove charges and any related holds from the studentÖгöÉÙ¸¾ÊÓƵ™s account with limited exceptions. Some student accounts receivable may be considered non-discharged debt, such as student loan obligations, including Perkins, Health Professions, and certain institutional loans with promissory notes, installment payment plan debt and Title IV overpayments.
Upon receipt of final determination of bankruptcy from the United States Bankruptcy Court, the debt will either be discharged and subject to write-off of debt, or portions thereof, may be reinstated. This should be determined with advice from legal counsel.
10.4.3 Loan Funds
(Last Modified on April 9, 2019)
When loans advanced from loan funds are determined to be uncollectible and have been approved for write-off, they are to be written off against the specific fund from which the loan has been advanced. If funds are not available in the specific loan fund, the institution should look for other resources, either from institution or related affiliated organization(s) to absorb the write-off. Operating funds would not be an appropriate source of funding.
10.4.4 Non-Sufficient Funds (NSF) ÖгöÉÙ¸¾ÊÓƵ“ Returned Checks
(Last Modified on April 9, 2019)
When returned check fees have been collected from the writer of a NSF (bad) check, the amount should be recorded as income of the fund receiving the credit when the receivable was established. Institutions may charge NSF fees as appropriate to cover costs associated with processing NSF checks.
The cost of collections effort may be recorded as an expense of the same fund. Due to de-minimis nature of this activity and to expedite processing, institutions may choose to record all NSF fees in fund 10600.
If institution has received NSF checks from a student/vendor and collected on that NSF check, then the institution may still accept checks from that student/vendor; however, if the institution receives a second NSF check from that same student/vendor, the institution will no longer accept checks from that student/vendor.
| Note: | If a student, with an NSF hold on their account, enrolls in a subsequent fiscal year, the institution must decide if sufficient time has elapsed to accept checks from the student. However, no checks may be accepted from the student until all old outstanding balances, including NSF amounts, are paid in full. Checks may be accepted from a third party on behalf of the student. Each institution must develop a policy on time frame to accept checks for re-enrolling students. If no policy is adopted, then checks may not be accepted from these students. |
Institutions experiencing significant credit card charge-backs may determine that is appropriate to charge fees for those returned charges. If so, it is recommended that guidance provided in the first two paragraphs of this sub-section be followed.
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