Minnesota West Policies

Chapter 7 - Finance

7.20.2 Accounts Receivable Procedure

When

Campus Business Office Staff

College Business Office Staff

Three to fours weeks prior to beginning of semester

Mail fee statements to all students.

  • Use invoice message #10.
  • Prior to mailing the fee statements, check them for correct tuition rates, appropriate parking fees, and accurate calculation of amounts listed.  Notify the Business Manager of any problems.
  • Double check the parking fees of faculty/staff members that are registered for classes.  Adjust parking fees accordingly.
  • Highlight the due date and invoice message, which states the payment due date, the availability of a payment plan, and the date that the $30.00 late fee will be applied to unpaid accounts.

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceed with corrections as appropriate.

On-going prior to and throughout semester

  • After the initial mailing of fee statements, continue to print and monitor campus' AR list for additions and revisions.  Mail fee statements to students with new or revised fee statements.  It's important that fee statements be mailed for late start classes.
  • With proper backup documentation, process parking waivers.

 

 

 

 

 

 

 

 

 

 

 

 

All other waivers will be processed as received from the campuses with adequate documentation (i.e., test outs, Alliss grants, program related, student officer stipends).

1st - 12th day of semester

Post signs throughout campus, put flyers in student mailboxes, and/or put messages in the weekly campus newsletter reminding students that:

·>        payment of tuition and fees is due on the 13th day of the semester or must have payment plan arrangements.

·>        $30.00 late fee will be added to unpaid accounts on the 14th day of the semester.

 

 

9th day of semester

Obtain from the bookstore, student charges and enter these receivables on the student accounts.

 

 

10th day of semester

Transfer applicable student accounts to responsible third party.

 

 

As third party invoices are printed

Submit invoices to third parties.

  • Use invoice message #9.
  • Send subsequent billings monthly.

 

 

 

13th day of semester

Tuition and fees are due no later than the thirteenth class day of the semester.

 

 

14th day of semester

Fax AR0011GR (AR list) to college business office crossing off accounts that involve deferments, payment plans and late start classes.

  • Authorizations are required for deferments.

 

15th day of semester

No late fee charges are to be added or removed by campus staff.

Add $30.00 late payment fee to accounts.

To remove a late fee from a student's account, he/she must file a petition.  If the petition is approved, the fee will be removed.

Petitions will be considered only if submitted within 30 days of the date the late fee was added to the student's account.

15th day and throughout semester

 

Follow collection procedure on "student" responsible accounts either through payment or submission to MCE.

  • Send letter #1 on the 16th day into the semester.
  • After 10 calendar days, send letter #2.
  • After two weeks, send letter #3.
  • Half-way into collection letter #3, ask campus Administrator to visit with students, reminding them that they may no longer attend classes once their account is submitted to MCE.

·>  An option is to set up a payment plan contract.

  • After 21 days of mailing letter #3, submit the account to MCE.
  • Notify student that they've been administratively withdrawn due to lack of payment

·>  Send copy to Administrator to forward to advisor.

 

45th day after date of third party invoice

 

 

Add $30.00 late fee charge to unpaid third party account/s and begin three-step collection letter procedure.

 

 

 

 

Throughout semester

Keep the college business office staff informed of:

·>        changes, such as amounts remaining after deferments expire, amounts remaining after third party pays or financial aid awards were applied.

·>        late start classes.

·>        activity regarding any accounts that have been submitted to MCE.

 

It is against state statute to execute payment plan terms once an account has been submitted to MCE.  Please direct students to make payment arrangements directly with MCE.

 

Keep campus business office staff informed of status of their campus' accounts.

 

 

 

 

 

 

 

Communicate with MCE any non-MCE activity on accounts that have been submitted to them for collection.

Return of Federal Funds/Students Withdraws

 

Follow collection procedure as outlined above either through payment or submission to MCE, except for the collection visit by the campus Administrator.

 

Write-offs:

Monthly, as correspondence is received from MCE, individual accounts that are returned as uncollectible will be written off. The write-off process removes the amount from accounts receivable, but does not eliminate the debtors obligation to the college.

 

Annually, in May, a review of all accounts under the amount eligible for submission to MCE will be reviewed for potential write-off. The write-off will be determined by collection efforts, amount, age of receivable, etc.

 

Exceptions:

  1. FBM accounts
    FBM staff responsible for collection until account reaches point to send collection letter #3.
  2. CT accounts
    CT staff responsible for collection until account reaches point to send collection letter #3.
  3. Payment plans
    Campus business office staff responsible for collection until account reaches point to send collection letter #3. Note:  Once a student is delinquent on a scheduled payment, send them a letter noting such and asking them to "catch" up within two weeks.  Should that timeframe expire without payment being made, contact the college business office staff to send collection letter #3.
  4. Third party accounts
    Campus business office staff notify college business office of third party accounts unpaid 45 days after date of initial invoice. College business office staff will add late fee and begin the three-step collection letter mailing procedure.
  5. Resale accounts
    Campus business office staff notify college business office of resale accounts unpaid 30 days after date of initial invoice. College business office staff will add late fee and begin the three-step collection letter mailing procedure.
  6. Emergency loans (only item on customer's account)
    Campus business office staff notify college business office if loan not paid by agreed upon date. College business office staff will add late fee and begin the three-step collection letter mailing procedure.

Distribution:
Campus Bookstores
Campus Business Offices
College Business Office
CT Support Staff
Campus Administrator's
Dean of Student Services
Provost
Business Manager
Vice-President of Administration
FBM Office Staff

 

Approved by: Ron Wood, President
Date: July 1, 2003
History & Revision:
Draft:  Dec. 2001
Revised Draft:  May 2002, August 2002, December 2002