Accounts Receivable

Accounts Receivable

Revised: August 11, 2014,  July 1, 2007

Also refer to Signature Authority Policy

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Table of Contents

Accounts Receivable Policy
Accounts Receivable Defined
Collection Effort Defined
Collection Procedure
Collection Responsibility
Accounts Receivable Write-off
Allowance for Doubtful Accounts Defined
Allowance for Doubtful Accounts Calculation Procedure
Allowance for Doubtful Accounts Calculation Responsibility
Additional Information

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Accounts receivable policy

Accounts receivable must be reviewed on at least a monthly basis by the responsible collecting department (see below). Collection efforts on all receivables begin after the account is 30 days past due (this does not apply to currently enrolled students who must make financial arrangements with the respective campus business office). The University calculates an allowance for doubtful accounts in accordance with generally accepted accounting principles. Accounts are turned over to a collection agency when internal collection efforts are deemed unsuccessful. Written approval is required to forgive past due debts. See table below for debt forgiveness thresholds.

Accounts receivable defined

Amounts due to the University from external sources. Accounts receivable categories include student accounts, non-student receivables, clinic receivables, and loans receivable.
Note: Amounts due between University campuses or departments are not accounts receivable.

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Collection effort defined

Communication seeking payment for past due accounts. Communication may be written or oral.

Note: Document the content of all oral collection communications.

Collection procedure

The collection procedure for University receivables are:

Days Past Due	Action
30, 60, 90	Reminder letter and/or telephone call informing of past due status.
> 90 days	Send final demand for payment letter. Advise customer that account will be turned over for collection. Submit to collection agent within 10 days.

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Collection responsibility

The individual(s) responsible for collections depend upon the type of receivable:

If...	Then...
Student receivables	Director, Student Business Services (Stockton)
	Director Financial Administration (Sacramento accounts)
	Director for Fiscal Services (San Francisco accounts)
Student Loans	Director, Student Business Services (Stockton)
	Director Financial Administrations (Sacramento accounts)
	Director for Fiscal Services (San Francisco accounts)
Dental clinic receivables	Clinic manager
Other	Billing campus, school, department

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Accounts Receivable Write-off

The following thresholds apply to Accounts Receivable write-off:

Approval Level Required

If...	Then...
Dental Clinic	Assistant Dean Clinic Services
All others	- Director, Student Business Services (Stockton accounts)
	- Director Financial Administration (Sacramento accounts)
	- Director for Fiscal Services (San Francisco accounts)

• Debt Amount:$2,500 - $15,000

 Approval Level Required

If...	Then...
Dental Clinic	Dean, Dugoni School of Dentistry
All others	- Associate Vice President for Business & Finance (Stockton accounts)
	- Assistant Dean, Administrative Affairs (Sacramento accounts)
	- Dean (San Francisco accounts)

• Debt Amount: > $15,000

Vice President for Business & Finance

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Allowance for doubtful accounts defined

Amount of outstanding receivables that the University estimates it will not recover.

Allowance for doubtful accounts calculation procedure

The allowance for doubtful accounts calculation is done, at a minimum, annually as part of fiscal year end processes (June 30). Follow the procedure below to calculate this allowance:

Step	Action
1	Review detailed aged accounts receivable balance by account type (student, non-student, clinic, loan) and category (1-30 days past due, 31-60 days past due, 61-90 days past due, > 90 days past due).
2	Determine from historical records the total amount written off for each account type.
3	Determine what percentage this amount represents for each category.
4	Apply this percentage to fiscal year end balances by account type and category to determine overall total.
5	Submit calculations to Controller for review and posting to financial statements. Year end calculation (i.e., June 30 calculation) is due no later than July 10 each year.

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Allowance for doubtful accounts calculation responsibility

The individual(s) responsible for calculation of the allowance for doubtful accounts are:

Type	Responsibility
Student accounts receivable	Director, Student Business Services (Stockton)
	Director Financial Administration (Sacramento accounts)
	Director for Fiscal Services (San Francisco accounts)
Loans receivable	Director, Student Business Services (Stockton)
	Director Financial Administration (Sacramento accounts)
	Director for Fiscal Services (San Francisco accounts)
Dental clinic receivables	Director for Fiscal Services, Dugoni School of Dentistry

Additional information

All receivables report under the Controller's Office.

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