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Policy 503.2
Policy 503.2


== Introduction ==
== Purpose ==
 
This policy controls the oversight requirements and authority as they relate to university accounts receivable. Oversight of these functions primarily relates to assessment of charges, billing, payment acceptance, and collection of monies that are due to or belonging to The University and to The State of North Carolina. The Vice Chancellor of Finance and Operations maintains authority in the enforcement of the university’s accounts receivable plan to maintain compliance with state statute and other relevant regulations.


== Scope ==
== Scope ==


This policy applies to all persons employed by the State of North Carolina acting on behalf of Appalachian State University as well as all students (prior, current, or future) until such time as it is amended.


== Definitions  ==
== Definitions  ==


=== Definition phrase or word ===
3.1 “Agency” or “ State Agency” - should be interpreted as Appalachian State University
: Definition summary
 
3.2 NC OSC – North Carolina Office of State Controller
 
3.3 NC OST – North Carolina Office of State Treasurer
 
3.4 SEDCA – State Employee Debt Collection Act


3.5 SODCA – Set Off Debt Collection Act


== Policy and Procedure Statements  ==
3.6 Student Account Standards - UNC Office of Business Compliance Standards


'''Procedure 1 - Receipting and Depositing Funds'''
3.7 Current Student Non Payment - Current students are students actively enrolled in a current or future term. Current students who owe balances to the University will have penalties applied based on the Student Accounts Standards and Procedures Manual.


'''Procedure References''' - Refer to the various Policy Statements in this Section for additional information.
== Policy Statements ==


'''Procedure Description''' - All departments and offices receiving Appalachian State University related monies must receipt the money when it is received, give the payer a copy of the receipt, and deposit all money received with the Cashier within twenty-four (24) hours - - see exception in Cashier Procedure Statement 2 . Receipting of money can be accomplished with handwritten receipts from a Cashier's receipt book or a cash register.
'''4.1 Student Accounts Receivable Billing'''


'''RECEIPTING WITH A CASH REGISTER'''
4.1.1 '''State-supported institutions of higher education required to charge tuition/fees.''' The University Office of Student Accounts shall assess Tuition and Required Fees based on rates approved by both the UNC Board of Governors and those approved by the Chancellor and Appalachian State Board of Trustees.


'''Procedure''' - When cash registers are used in a cash receipting operation, a cash receipting system is tailored to suit the particular situation. This system should be followed closely, and no changes should be made without the prior approval of the Cashier's Office.
4.1.2 '''Tuition & Fee Waivers''' - Waivers or discounting of tuition and fees for courses receiving academic credit, including providing unfunded scholarships, are prohibited, excepting the following:
#Faculty and Staff Waivers
#Disabled/Deceased Emergency Worker Personnel Waiver
#Senior Citizen Waiver/Audit


Even though the systems will differ from operation to operation, the following general steps are necessary in any cash register receipting operation:
4.1.3 '''Residency for Tuition Purposes''' - Specific standards for determining resident status for tuition purposes are set forth in North Carolina General Statute section 116-143.1.


*Ring sale on cash register.
4.1.4 '''Payment of Tuition and Fees''' - Tuition & Fees shall be charged by the semester/term and are due and payable in advance at the beginning of each semester. Payment-in-full alternatives options are provided in the Student Accounts Standards and Procedures Manual. Additionally, prior to completing a course and taking final examinations at the close of each semester/term, students must settle all account balances with the Office of Student Accounts. Payments must be made in US Dollars.
*Take customer's money and return any applicable change.
*Give customer the cash register tape produced.
*At the end of the business day, remove all the money from the cash drawer and separate the imprest change fund from the day's receipts. The imprest change fund must consist of coin and currency only and be the exact amount assigned to the register.
*Prepare any required cash report, reconciling any cash shortage or overage.
*Prepare deposit and take it to the University Cashier within twenty-four (24) hours or the following workday.
*If the funds must be stored overnight, secure them in a safe or vault.


'''RECEIPTING WITH UNIVERSITY THREE-PART CASH RECEIPTS'''
4.1.4.1 '''Returned Payments''' - In the case of a returned payment, such as a check payment or electronic check payment, a fee may be charged that is consistent with NCGS 25-3-506.


'''Procedure Description'''
4.1.4.2 '''Disputing a Card Payment''' - Unless in the case of legitimate fraud as identified by a police report from an appropriate agency and jurisdiction, disputing a payment made to the student’s account may result in a fee equal to that charged to the University, and/or having a course(s) canceled in the current or future term, and/or losing the privilege to pay via any method other than a certified check drawn on a US Bank.


*Obtain a book of University Three-Part Receipts from the Cashier.
4.1.5 '''Current Students-Non Payment''' Current students are students actively enrolled in a current or future term. Current students who owe balances to the University will have penalties applied based on the Student Accounts Standards and Procedures Manual.
*Use receipts in strict numerical order.
*If a receipt must be voided, write "VOID" across it and retain all three (3) copies in the receipt book.
*When money is received, complete a cash receipt indicating the following information in the applicable labeled blanks:


'''Date''': The date money is received.
4.1.6 '''Third Party Billing''' - The University accepts a variety of payments from third parties. If a third party fails to make payment based on the timelines outlined in the Student Accounts Standards and Procedures Manual, the obligations to the University are once again placed with the student and it is the student’s responsibility to pay the balance, unless otherwise agreed upon in writing in advance.


'''Received From''': The name of the person making payment.
4.1.7 '''Contracts and Grants Receivable & Billing''' - The Controller’s Office shall ensure compliance with UNC Business Process Standards for UNC Contracts & Grants Standards for sponsored projects. Additionally, the University will follow all state and federal rules, codes, and law as it relates to sponsored programs.


'''Address''': The address of the person making payment, if needed for later reference.
4.1.8 '''Departmental Accounts Receivable'''


'''Dollars $''': The amount of money received.
4.1.8.1 Before engaging with a customer where a receivable may become necessary, the department must first obtain minimum identifying information (NCOSC 200.5). This is required to be able to follow state mandated collection procedures.


'''For''': The purpose for the payment.
4.1.8.2 Any department that engages in accounts receivable on behalf of the University must be able to, and upon request provide, an aging report to the University Controller’s Office upon request to comply with the NC Statewide Accounts Receivable Program identified in NCGS 147-86.22. The aging categories shall be based on the requirements of the NC Statewide Accounts Receivable Program.


'''Account, Amount of Account, Amount Paid, Balance Due''': These blocks are used only if payment is being received on an outstanding account. List the appropriate amounts in the respective blocks.
'''4.2 Policy and Procedures Development''' - Appalachian State University is responsible for collecting accounts receivable for a variety of types of customers. The University will follow the NC Office of State Controller (NC OSC) policy 200.2 in developing procedures for compliance with state and federal law as well as all NC OSC policies related to accounts receivable. Procedures are found in the Accounts Receivable Manual.


'''How Paid, Cash, Check, Money Order''': List the amount paid by each medium of exchange.
'''4.3 Receivables Systems''' - The University will follow NC OSC Policy 200.3 and should ensure that accounting and financial Management Systems are adequate to properly account for, record, and manage receivables.


'''By''': The signature or initials of the person receiving the payment.
4.3.1 '''Other Receivables Systems''' - Unless approved in advance by the University Controller, all university accounts receivable must be kept in the school designated ERP (Ellucian Banner Finance).


*Remove the original or top copy of the receipt and give it to the payer.
'''4.4 Collection of Receivables''' - The University will implement techniques for collection of accounts receivable that follows NC OSC 200.4 which requires utilizing state and federal statutes, as well as UNC Policies.
*If payment has been made by check, endorse the check with the receiving department's name as soon as it is received.
*Departments who have a '''RECEIPT BOOK AGREEMENT''' on file in the Cashier's Office must remove the second copies of the receipts from the book and prepare for the deposit as described in a. through f. This must be done at least once each calendar week. More frequent deposits, daily if necessary, must be made at any time cumulative receipts exceed $250.00.


Departments who do not have a RECEIPT BOOK AGREEMENT on file in the Cashier's Office must at least once a day, remove the second copies of the receipts from the book and prepare the deposit as described below:
'''4.5 Minimum Identifying Information''' - The University will obtain, at a minimum, prescribed information on prospective debtors as identified in NC OSC 200.5.


*If an imprest change fund is used in the receipting operation, remove all the cash, except the amount of the change fund, from the cash container.
'''4.6 Collection Techniques used for Delinquent Accounts Receivable''' - Past due accounts receivable techniques listed in NC OSC 200.6 may be used to collect debts. Additionally for student and employee debts, additional techniques may be used.
*Wrap large amounts of coins in bank coin wrappers, and write the department's name on the wrappers.
*Run an adding machine tape on any checks or list the amounts of the checks if an adding machine is not available. Make sure all checks are endorsed with the department's name.
*Determine the total amount of money represented by the receipts and the total amount of money. Reconcile any difference.
*List the following information on a slip of paper to accompany the deposit:


The budget code(s) to which the funds are to be deposited, and the amount applicable to each
'''4.7 Past due Account Collection Guidelines''' - The university will use the guidelines found in NC OSC 200.7.


The amount of the total deposit
'''4.8 Interest and Penalty Fee''' - The University will follow the NC OSC Policy 200.8 Interest and Penalty Fee Policy.


A note of explanation if the deposit is not in balance with the total of the receipts covered. Deposit any cash overage with the Cashier.
'''4.9 Provision of State Services to Delinquent Debtors''' - The University will develop procedures that follow NC OSC 200.9. This includes “procedures to ensure that no student having any outstanding past-due accounts with that institution is allowed to enroll for the next term.”


Take the money, receipt copies, and deposit information to the Cashier's window on the second floor of the John Thomas Academic Support Building.
4.9.1 Additionally, the University will establish procedures to collect student accounts receivable balances. These procedures will include, at a minimum, the standards established by the UNC Business Compliance Standards for Student Accounts.


The Cashier will complete and validate a two-part Appalachian State University Receipt and give the person making the deposit the original.
'''4.10 Referral to the Attorney General’s Office''' - The University will follow NC OSC Policy 200.10 - Referral to the Attorney General’s Office.


'''CLASS/ORGANIZATION RECEIPT FORM'''
'''4.11 Allowance for Doubtful Accounts''' - The University will follow NC OSC 200.11 which requires the establishment of an allowance for doubtful accounts that ensures the University is not overstating accounts receivables balances for financial reporting.


'''Procedure Description'''
4.11.1 Departments must properly account for doubtful accounts and submit any receivables that based on aging should be written off to the Controller by the end of May for each Fiscal Year.


*Student name may be printed or typed.
'''4.12 Write-off of Uncollectible Accounts''' - The University will follow NC OSC 200.12 as it relates to the accounting write-off for delinquent accounts.
*The original of this form must be turned into the Cashier's Office along with the money for deposit.
*A carbon copy of this form should be filed in the department with a copy of the Cashier's validated receipt attached.
*All cash collected must be deposited with the University Cashier within twenty-four (24) hours of its receipt, or not later than the following work day.
*If the "Amount Paid" column is not in agreement with the amount shown on the Cashier's validated receipt, attach a note of explanation to the carbon copy of the form.
*This form is for one-time collections of class/organization receipts. Recurring transactions require the use of the University three-part receipts.
*This form is available through the Cashier's Office, 262-2113.


'''Procedure 2 - Request for Authority to Establish Receipts Collection Point'''
4.12.1 Except in cases of bankruptcy or circumstances approved by the Vice Chancellor of Finance and Operations, a write off remains a valid debt and must be paid before future goods or services are provided.


Procedure Description - Any department requiring a cash collection point must complete a "Request for Authority to Establish Receipts Collection Point" form. When approved this form will provide the department and the Controller's Office with the necessary documentation to collect funds as required by N.C. General Statutes 14 7-77, Daily Deposit of Funds to Credit of Treasurer.
4.12.2 Departments must properly account for doubtful accounts and submit any receivables that based on aging should be written off to the Controller by the end of May for each Fiscal Year.


Date of Request : Date submitted to the Controller's Office.
4.12.3 The following approval and/or notification is required for a Write-Off of Uncollectible Accounts:
#$0.01 - $9.99 Accounts shall receive a past due letter when 1-30 days past due, then a second and final letter when 31-60 days past due. After 61+ days the account is deemed uncollectable and no further collections efforts are required and the account may be written off once necessary approvals have been obtained from the Vice Chancellor of Finance and Operations.
#$10.01 - $50.00 Accounts shall receive a past due letter when 1-30 days past due, then a second and final letter when 31-60 days past due. After 61+ days the account is deemed uncollectable and no further collections efforts are required. The account may be written off once approvals have been obtained from the Vice Chancellor of Finance and Operations.
#$50.01 - $50.01 and above Accounts shall receive a past due letter when 1-30 days past due, then a second final letter when 31-60 days past due. If no response is received, the debt will be reported to the Department of Revenue (DOR) for Set Off Debt collection pursuant to the NC Set Off Debt Collection Act, N.C. Gen. Stat. § 105A-1, et seq. and referred to the Attorney General (“AG”). A “hold” shall be placed on the account in the Banner System and individuals will not be able to register for classes, receive a transcript or diploma. After the account has been with the AG for a period of 60 days the AG will advise the campus of next steps regarding the collection of debt, which may include write off, litigation, referral to a collections agency, or other remedies as allowed by law. After all collection efforts have been exhausted and the account is deemed uncollectable, all accounts $50.01 to less than $1,000.00 may be written off upon approval by the Vice Chancellor of Finance and Operations.
#Accounts over $1000 - Accounts shall receive a past due letter when 1-30 days past due, then a second final letter when 31-60 days past due. If no response is received, the debt will be reported to the Department of Revenue (DOR) for Set Off Debt collection pursuant to the NC Set Off Debt Collection Act, N.C. Gen. Stat. § 105A-1, et seq. and referred to the AG. A “hold” will be placed on the account in the Banner System and individuals will not be able to register for classes, receive a transcript or diploma. After the account has been with the AG for a period of 60 days the AG will advise the campus of next steps regarding the collection of debt, which may include write off, litigation, referral to a collections agency, or other remedies as allowed by law. After all collection efforts have been exhausted and the account is deemed uncollectable, Accounts of $1,000.00 and above will be written off upon approval of the Vice Chancellor of Finance and Operations. After approval, the Controller’s Office will provide notification, as an informational item, to the Appalachian State University Board of Trustees at the next scheduled Board of Trustee Meeting..


Requesting Department/Unit : The name of the Department which will be responsible for the cash collection, receipting and depositing the funds.
4.12.4 '''Accounts for Deceased Students:''' An unpaid account belonging to a deceased student may be written off with the approval of the Vice Chancellor of Finance and Operations, or their designee, upon notification from the Dean of Students Office or with other appropriate documentation. These accounts do not have to be aged to be written off. The write off of accounts for a deceased student will be documented and added to the list of University accounts written off filed in the Student Accounts Office.


Campus Location of Receipts Collection Point : The actual location where the funds will be collected.
4.12.5 '''Legal Action against debtor.''' The chancellor must approve any and all requests for legal action. Legal action is intended to identify any actions requiring the services of a local attorney and or involvement in local court proceedings. Attempted collection via collection agencies authorized by The State of North Carolina are not considered legal action for purposes of this policy.


Name and Campus Address of Primary Individual Responsible for Collection Point : The person and his or her campus address that will be at the collection point and responsible for the funds at the collection site.
4.12.6 '''Exceptions to Write and Collection Policy.''' Accounts receivable of New River Light and Power and student organizations funded through the student allocation fund are not covered by this policy.


Name and Campus Address of Individual(s) Responsible for Collecting and Depositing Receipts : The names and campus addresses of persons that are accountable for the collection and depositing the funds in accordance with the policies and procedures outlined in the Cashier's Section, Policy 2, of the RESOURCE MANUAL .
4.12.7 '''Notification of Bankruptcy''' Upon receipt of any Notification of Bankruptcy where a University Account is involved, immediately all communication with the individual or company shall cease. All documentation should be sent to the University Controller’s Office who will notify the Office of General Counsel who will provide guidance in addressing collection efforts.


State the need to collect receipts : Describe the activity that requires the collection of funds.
'''4.13 Refunds of Accounts Receivable Balances (Student)''' - A refund occurs when a reduction in charges is credited to an account. The University Registrar manages withdrawals and course drop (reduction in schedule) processes. Students wishing to drop a course or withdraw from a semester/term should consult the Office of the University Registrar, The Office of Student Financial Aid, and The Office of Student Accounts for information related to implications both academically and financially related to the drop or withdrawal. For academic policies related to dropping courses or withdrawing from the semester/term, reference Withdrawal Policy 406.1.


Give an estimate of the amount of anticipated collections on a daily basis : As accurately as possible, determine the amount of funds to be collected each day.
4.13.1 '''Tuition and Required Fee Refund'''


Accounts/Activities and General Sources of Receipts Collected : If an account number in which to deposit the money collected has been established, please list the account number and the account name. If an account has not been established, contact the Controller's Office for additional instructions. If the existing account number is sufficient, another is not needed just because the collection point is new.
4.13.1.1 '''Refund for Withdrawal Policy''' Students who withdraw from a semester/term before the first day of classes will receive a credit for the tuition and fees charged for those courses. Beginning on the first day of classes for the semester/term, students who withdraw from the semester/term may receive a prorated credit of tuition and required fees.


After the form has been completed, the person originating the request should sign his or her name and title, date and telephone number.
4.13.1.2 '''Refund for Course Reduction (Course Drop)''' If students reduce their class schedules during the Drop/Add period, 100% of the difference in tuition and fees between the original and revised schedules will be credited to their accounts unless the student remains at full time status.


When approved, the Controller will sign, date and return the form to the responsible person.
4.13.1.3 '''Tuition and Required Fee Refund Appeals.'''


The responsible person will take the form to the Cashier's Office where they should be issued a Cashier's Receipt Book. All money should be receipted at the time it is received.
To be eligible to appeal, a student must have already dropped or withdrawn from the course(s) appealed. Appeals without documentation supporting an extraordinary hardship, despite responsible handling, beyond the student’s control will be declined.


After completion and approval of the form "Request for Authority to Establish Receipts Collection Point", the Controller's Office will send a copy to the Cashier's Office and the Office of Internal Audits for inclusion with other collection points on file. The collection point will be subject to cash counts and reviewed periodically by the Internal Auditors and the State Auditors.
Tuition Appeals Committee shall include: 7 members consisting of 4 faculty and 3 staff. The four faculty shall represent four different colleges. The three staff shall represent the Learning Assistance Program, Office of Financial Aid, and Office of Transfer Services. The Registrar and a representative from The University Controller’s Office shall serve as ex-officio members. When available, The Associate Vice Chancellor for Enrollment Management and Associate Vice Chancellor of Finance and Operations will convene the first meeting and facilitate the selection of a chair, or co-chairs, from among the voting members of the committee. The committee reports to the provost and executive vice chancellor.


This committee shall be responsible for: reviewing and making decisions on appeals for Fixed Tuition Guarantee and tuition and fee refunds. Additional responsibility includes the consideration of hardship of any kind which, despite responsible handling, resulted in the substantial disruption or interruption of the student’s pursuit of a degree.


== Additional References ==
== Additional References ==


== Authority ==
UNC Policy 600.4 (SetOff Debt Collection)
 
UNC Policy 1000.1 (Tuition Rates)
 
UNC Policy 1000.2 (Tuition Waivers)
 
UNC Policy 1000.4 (Course Auditing)
 
Faculty Senate Tuition Appeals Committee 7.3.4.13
 
ASU Accounts Receivable Manual
 
ASU Student Accounts Standards and Procedures Manual
 
== Administrative Unit Contact ==
 
Finance and Operations-Office of the Controller


828-262-2030


== Contact Information ==
[https://finops.appstate.edu Finance and Operations]


== History ==


== Effective Date ==
Revised 2/27/24


== Revision Dates ==
[[Category:Contents]]
[[Category:Business Operations]]
[[Category:Cashier]]

Latest revision as of 14:23, 7 March 2024

Policy 503.2

Purpose

This policy controls the oversight requirements and authority as they relate to university accounts receivable. Oversight of these functions primarily relates to assessment of charges, billing, payment acceptance, and collection of monies that are due to or belonging to The University and to The State of North Carolina. The Vice Chancellor of Finance and Operations maintains authority in the enforcement of the university’s accounts receivable plan to maintain compliance with state statute and other relevant regulations.

Scope

This policy applies to all persons employed by the State of North Carolina acting on behalf of Appalachian State University as well as all students (prior, current, or future) until such time as it is amended.

Definitions

3.1 “Agency” or “ State Agency” - should be interpreted as Appalachian State University

3.2 NC OSC – North Carolina Office of State Controller

3.3 NC OST – North Carolina Office of State Treasurer

3.4 SEDCA – State Employee Debt Collection Act

3.5 SODCA – Set Off Debt Collection Act

3.6 Student Account Standards - UNC Office of Business Compliance Standards

3.7 Current Student Non Payment - Current students are students actively enrolled in a current or future term. Current students who owe balances to the University will have penalties applied based on the Student Accounts Standards and Procedures Manual.

Policy Statements

4.1 Student Accounts Receivable Billing

4.1.1 State-supported institutions of higher education required to charge tuition/fees. The University Office of Student Accounts shall assess Tuition and Required Fees based on rates approved by both the UNC Board of Governors and those approved by the Chancellor and Appalachian State Board of Trustees.

4.1.2 Tuition & Fee Waivers - Waivers or discounting of tuition and fees for courses receiving academic credit, including providing unfunded scholarships, are prohibited, excepting the following:

  1. Faculty and Staff Waivers
  2. Disabled/Deceased Emergency Worker Personnel Waiver
  3. Senior Citizen Waiver/Audit

4.1.3 Residency for Tuition Purposes - Specific standards for determining resident status for tuition purposes are set forth in North Carolina General Statute section 116-143.1.

4.1.4 Payment of Tuition and Fees - Tuition & Fees shall be charged by the semester/term and are due and payable in advance at the beginning of each semester. Payment-in-full alternatives options are provided in the Student Accounts Standards and Procedures Manual. Additionally, prior to completing a course and taking final examinations at the close of each semester/term, students must settle all account balances with the Office of Student Accounts. Payments must be made in US Dollars.

4.1.4.1 Returned Payments - In the case of a returned payment, such as a check payment or electronic check payment, a fee may be charged that is consistent with NCGS 25-3-506.

4.1.4.2 Disputing a Card Payment - Unless in the case of legitimate fraud as identified by a police report from an appropriate agency and jurisdiction, disputing a payment made to the student’s account may result in a fee equal to that charged to the University, and/or having a course(s) canceled in the current or future term, and/or losing the privilege to pay via any method other than a certified check drawn on a US Bank.

4.1.5 Current Students-Non Payment Current students are students actively enrolled in a current or future term. Current students who owe balances to the University will have penalties applied based on the Student Accounts Standards and Procedures Manual.

4.1.6 Third Party Billing - The University accepts a variety of payments from third parties. If a third party fails to make payment based on the timelines outlined in the Student Accounts Standards and Procedures Manual, the obligations to the University are once again placed with the student and it is the student’s responsibility to pay the balance, unless otherwise agreed upon in writing in advance.

4.1.7 Contracts and Grants Receivable & Billing - The Controller’s Office shall ensure compliance with UNC Business Process Standards for UNC Contracts & Grants Standards for sponsored projects. Additionally, the University will follow all state and federal rules, codes, and law as it relates to sponsored programs.

4.1.8 Departmental Accounts Receivable

4.1.8.1 Before engaging with a customer where a receivable may become necessary, the department must first obtain minimum identifying information (NCOSC 200.5). This is required to be able to follow state mandated collection procedures.

4.1.8.2 Any department that engages in accounts receivable on behalf of the University must be able to, and upon request provide, an aging report to the University Controller’s Office upon request to comply with the NC Statewide Accounts Receivable Program identified in NCGS 147-86.22. The aging categories shall be based on the requirements of the NC Statewide Accounts Receivable Program.

4.2 Policy and Procedures Development - Appalachian State University is responsible for collecting accounts receivable for a variety of types of customers. The University will follow the NC Office of State Controller (NC OSC) policy 200.2 in developing procedures for compliance with state and federal law as well as all NC OSC policies related to accounts receivable. Procedures are found in the Accounts Receivable Manual.

4.3 Receivables Systems - The University will follow NC OSC Policy 200.3 and should ensure that accounting and financial Management Systems are adequate to properly account for, record, and manage receivables.

4.3.1 Other Receivables Systems - Unless approved in advance by the University Controller, all university accounts receivable must be kept in the school designated ERP (Ellucian Banner Finance).

4.4 Collection of Receivables - The University will implement techniques for collection of accounts receivable that follows NC OSC 200.4 which requires utilizing state and federal statutes, as well as UNC Policies.

4.5 Minimum Identifying Information - The University will obtain, at a minimum, prescribed information on prospective debtors as identified in NC OSC 200.5.

4.6 Collection Techniques used for Delinquent Accounts Receivable - Past due accounts receivable techniques listed in NC OSC 200.6 may be used to collect debts. Additionally for student and employee debts, additional techniques may be used.

4.7 Past due Account Collection Guidelines - The university will use the guidelines found in NC OSC 200.7.

4.8 Interest and Penalty Fee - The University will follow the NC OSC Policy 200.8 Interest and Penalty Fee Policy.

4.9 Provision of State Services to Delinquent Debtors - The University will develop procedures that follow NC OSC 200.9. This includes “procedures to ensure that no student having any outstanding past-due accounts with that institution is allowed to enroll for the next term.”

4.9.1 Additionally, the University will establish procedures to collect student accounts receivable balances. These procedures will include, at a minimum, the standards established by the UNC Business Compliance Standards for Student Accounts.

4.10 Referral to the Attorney General’s Office - The University will follow NC OSC Policy 200.10 - Referral to the Attorney General’s Office.

4.11 Allowance for Doubtful Accounts - The University will follow NC OSC 200.11 which requires the establishment of an allowance for doubtful accounts that ensures the University is not overstating accounts receivables balances for financial reporting.

4.11.1 Departments must properly account for doubtful accounts and submit any receivables that based on aging should be written off to the Controller by the end of May for each Fiscal Year.

4.12 Write-off of Uncollectible Accounts - The University will follow NC OSC 200.12 as it relates to the accounting write-off for delinquent accounts.

4.12.1 Except in cases of bankruptcy or circumstances approved by the Vice Chancellor of Finance and Operations, a write off remains a valid debt and must be paid before future goods or services are provided.

4.12.2 Departments must properly account for doubtful accounts and submit any receivables that based on aging should be written off to the Controller by the end of May for each Fiscal Year.

4.12.3 The following approval and/or notification is required for a Write-Off of Uncollectible Accounts:

  1. $0.01 - $9.99 Accounts shall receive a past due letter when 1-30 days past due, then a second and final letter when 31-60 days past due. After 61+ days the account is deemed uncollectable and no further collections efforts are required and the account may be written off once necessary approvals have been obtained from the Vice Chancellor of Finance and Operations.
  2. $10.01 - $50.00 Accounts shall receive a past due letter when 1-30 days past due, then a second and final letter when 31-60 days past due. After 61+ days the account is deemed uncollectable and no further collections efforts are required. The account may be written off once approvals have been obtained from the Vice Chancellor of Finance and Operations.
  3. $50.01 - $50.01 and above Accounts shall receive a past due letter when 1-30 days past due, then a second final letter when 31-60 days past due. If no response is received, the debt will be reported to the Department of Revenue (DOR) for Set Off Debt collection pursuant to the NC Set Off Debt Collection Act, N.C. Gen. Stat. § 105A-1, et seq. and referred to the Attorney General (“AG”). A “hold” shall be placed on the account in the Banner System and individuals will not be able to register for classes, receive a transcript or diploma. After the account has been with the AG for a period of 60 days the AG will advise the campus of next steps regarding the collection of debt, which may include write off, litigation, referral to a collections agency, or other remedies as allowed by law. After all collection efforts have been exhausted and the account is deemed uncollectable, all accounts $50.01 to less than $1,000.00 may be written off upon approval by the Vice Chancellor of Finance and Operations.
  4. Accounts over $1000 - Accounts shall receive a past due letter when 1-30 days past due, then a second final letter when 31-60 days past due. If no response is received, the debt will be reported to the Department of Revenue (DOR) for Set Off Debt collection pursuant to the NC Set Off Debt Collection Act, N.C. Gen. Stat. § 105A-1, et seq. and referred to the AG. A “hold” will be placed on the account in the Banner System and individuals will not be able to register for classes, receive a transcript or diploma. After the account has been with the AG for a period of 60 days the AG will advise the campus of next steps regarding the collection of debt, which may include write off, litigation, referral to a collections agency, or other remedies as allowed by law. After all collection efforts have been exhausted and the account is deemed uncollectable, Accounts of $1,000.00 and above will be written off upon approval of the Vice Chancellor of Finance and Operations. After approval, the Controller’s Office will provide notification, as an informational item, to the Appalachian State University Board of Trustees at the next scheduled Board of Trustee Meeting..

4.12.4 Accounts for Deceased Students: An unpaid account belonging to a deceased student may be written off with the approval of the Vice Chancellor of Finance and Operations, or their designee, upon notification from the Dean of Students Office or with other appropriate documentation. These accounts do not have to be aged to be written off. The write off of accounts for a deceased student will be documented and added to the list of University accounts written off filed in the Student Accounts Office.

4.12.5 Legal Action against debtor. The chancellor must approve any and all requests for legal action. Legal action is intended to identify any actions requiring the services of a local attorney and or involvement in local court proceedings. Attempted collection via collection agencies authorized by The State of North Carolina are not considered legal action for purposes of this policy.

4.12.6 Exceptions to Write and Collection Policy. Accounts receivable of New River Light and Power and student organizations funded through the student allocation fund are not covered by this policy.

4.12.7 Notification of Bankruptcy Upon receipt of any Notification of Bankruptcy where a University Account is involved, immediately all communication with the individual or company shall cease. All documentation should be sent to the University Controller’s Office who will notify the Office of General Counsel who will provide guidance in addressing collection efforts.

4.13 Refunds of Accounts Receivable Balances (Student) - A refund occurs when a reduction in charges is credited to an account. The University Registrar manages withdrawals and course drop (reduction in schedule) processes. Students wishing to drop a course or withdraw from a semester/term should consult the Office of the University Registrar, The Office of Student Financial Aid, and The Office of Student Accounts for information related to implications both academically and financially related to the drop or withdrawal. For academic policies related to dropping courses or withdrawing from the semester/term, reference Withdrawal Policy 406.1.

4.13.1 Tuition and Required Fee Refund

4.13.1.1 Refund for Withdrawal Policy Students who withdraw from a semester/term before the first day of classes will receive a credit for the tuition and fees charged for those courses. Beginning on the first day of classes for the semester/term, students who withdraw from the semester/term may receive a prorated credit of tuition and required fees.

4.13.1.2 Refund for Course Reduction (Course Drop) If students reduce their class schedules during the Drop/Add period, 100% of the difference in tuition and fees between the original and revised schedules will be credited to their accounts unless the student remains at full time status.

4.13.1.3 Tuition and Required Fee Refund Appeals.

To be eligible to appeal, a student must have already dropped or withdrawn from the course(s) appealed. Appeals without documentation supporting an extraordinary hardship, despite responsible handling, beyond the student’s control will be declined.

Tuition Appeals Committee shall include: 7 members consisting of 4 faculty and 3 staff. The four faculty shall represent four different colleges. The three staff shall represent the Learning Assistance Program, Office of Financial Aid, and Office of Transfer Services. The Registrar and a representative from The University Controller’s Office shall serve as ex-officio members. When available, The Associate Vice Chancellor for Enrollment Management and Associate Vice Chancellor of Finance and Operations will convene the first meeting and facilitate the selection of a chair, or co-chairs, from among the voting members of the committee. The committee reports to the provost and executive vice chancellor.

This committee shall be responsible for: reviewing and making decisions on appeals for Fixed Tuition Guarantee and tuition and fee refunds. Additional responsibility includes the consideration of hardship of any kind which, despite responsible handling, resulted in the substantial disruption or interruption of the student’s pursuit of a degree.

Additional References

UNC Policy 600.4 (SetOff Debt Collection)

UNC Policy 1000.1 (Tuition Rates)

UNC Policy 1000.2 (Tuition Waivers)

UNC Policy 1000.4 (Course Auditing)

Faculty Senate Tuition Appeals Committee 7.3.4.13

ASU Accounts Receivable Manual

ASU Student Accounts Standards and Procedures Manual

Administrative Unit Contact

Finance and Operations-Office of the Controller

828-262-2030

Finance and Operations

History

Revised 2/27/24

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