This section provides guidelines to assist departments in developing procedures to properly manage receivables.
• Prescribe accounts receivable policy and procedure guidelines.
• Provide information and technical assistance to departments regarding receivables.
• Assist departments in establishing meaningful receivable allowance accounts and in determining past-due accounts to be written off.
• Submit lists of delinquent accounts to the State Department of Taxation to insure University participation in the state Debt Set-Off program.
• Coordinate collection activity of outside collection agents.
• Prepare a quarterly report of the University's receivables for submission to the state comptroller.
• Provide services or makes assessments and prepares billing forms to be sent to the debtor and University cashier, using the standard JMU Invoice. Exceptions must be approved by the Assistant Vice President for Finance for use of alternate billing forms. The standard JMU Invoice is located on the web at http://jmu.edu/ubo/departmental/Invoice.xls.
• Monitor individual receivables of the departments and provide written confirmation of monthly Accounts Receivable reconciliation to University Business Office.
• Maintain adequate collection procedures for department receivables.
• Provide accountability and aging of accounts receivable to aid in preparation of annual financial report.
• Determine if outstanding receivables are collectible, to assist in meaningful reduction of past-due receivables.
• Refer accounts 90 days past due to external collection agents, or to University Business Office for inclusion in the state Debt Set-Off program, as appropriate.
Receivable - Any amount owed to the University. Receivables include loans and notes receivable, as well as amounts due for services and goods provided, for tuition and fees, and other obligations, from students, from employees, from other agencies, and institutions, and from the federal government for grants and contracts.
Accounts Receivable - Amounts owed to the University or department of the University by individuals or organizations (other than state agencies and institutions) for goods and services rendered, tuition and other fees, and other obligations.
Interagency Receivables - Amounts owed to the University by another agency or institution of the Commonwealth of Virginia for goods and services provided or any other type of transaction.
Loans/Notes Receivable - Amounts loaned to individuals or organizations other than state agencies and institutions.
Grant and Contract Receivables - Expenditures/expenses that have been incurred under a grant or contract but have not been reimbursed. Grant and contract receivables reimbursed through another state agency or institution should be reported as interagency receivables.
Other Receivables - Receivables due from employees, such as travel and salary advances, and any other amounts owed to the University for which a category has not been provided on the receivables summary report.
Past-Due Receivables - Receivables for which payment has not been received by the due date.
Delinquent Account - Receivables for which payment has not been received within 90 days after the due date.
Void - The invalidation or nullification of a cash receipt or rebate document before the document has been recorded.
Allowance for Doubtful Accounts - A contra-asset account that is credited with an estimated amount of un-collectible receivables. This account is offset against gross receivables so that net receivables reported by the agency are not overstated.
Write-off - A transaction to remove from the University's financial accounting records an account that management has determined to be un-collectible. This does not discharge the validity of the receivable, by compromising or settling the debt owed, in any manner.
Recoveries on Accounts Written Off - Amounts collected on accounts that have previously been written off.
• Provides goods or services or assesses fines or penalties at approved rates.
• Prepares, within 5 working days of providing the goods or services, a pre-numbered invoice addressed to the customer. See subsection .810 for form preparation instructions.
• Transmits the original invoice to the payee, one copy to the Cashier's Office, and retains the departmental copy.
• Transmits completed corresponding Deposit Transmittal Form(s) with a copy of the Invoice(s) to the Cashier's Office.
• Records the receivable by posting the invoice to the department's account in the Financial Information System (FIS).
• Compile accounts receivable information, prepares a quarterly report of the University’ receivables, and submits it to the state comptroller. (see .section .700)
• Maintain accurate records of unpaid invoices for continued accurate, timely billing on a monthly basis.
• Deposit remittance for departments, posts the payment to the department's account, and transmits a copy of the receipted deposit transmittal to the department.
• Reconciles monthly accounts receivable printout received from the Cashier's Office to the department’ receivable records.
• Provides written confirmation of reconciliation and reports rebates and adjustments other than timing differences to the Cashier's Office within 10 days of printout receipt.
Although the Assistant Vice President for Finance has ultimate responsibility for University receivables, applicable departments are responsible for maintaining a system to adequately manage their receivables.
The departments receivable system should:
• Bill accounts on a timely basis, whether the receivables are due from private entities, the federal government, or state agencies and institutions. Accounts should be billed no later than five (5) working days after the date goods are provided or services rendered, unless contractual requirements specify other billing terms or billing terms are in accordance with industry standards. Payment terms should be 30 days after billing unless contractual requirements specify otherwise or payment terms are in accordance with industry standards. Provisions should be made for billing uncollected items on a monthly basis.
• Maintain an accurate record of transactions affecting each account receivable with a control account summarizing each type of receivable.
• Provide an aged trial balance of receivables including realistic estimates of doubtful accounts; information relative to the collection of past-due accounts; and properly accounting for receivables written off. This information should be available to management upon request.
• Maintain a record of year-end receivable balances, presenting receivable information comparable with prior year's reports.
• Recognize and report receivables in accordance with generally accepted accounting principles by establishing adequate internal controls to maintain the integrity of the accounts receivable system.
Collection procedures, as outlined in the billing instructions in subsection .500, should be followed during the first 60 days after payment due date or until previous payment arrangements have been dishonored. Where the department has other procedures to secure payment (such as refusal to allow course registration, refusal to issue diplomas or refusal to issue licenses), it may elect to retain the account pending the results of such procedures. After this period collection procedures should continue as follows:
.610 Refer Accounts to Private Collection Agency
After 60 days past the payment due date, if satisfactory payment arrangements have not been made with the debtor, an account less than $3,000 should be referred to a private collection agency under contract with the University. The debtor must be notified in writing that the account will be referred for outside collection.
The collection costs charged by the collection agency should be added to the balance submitted to the agency. The University Business Office can supply the name and address of each collection agency.
.620 Refer Accounts to the Office of the Attorney General (OAG)
After 60 days past the payment due date, if satisfactory payment arrangements have not been made with the debtor, an account greater than $3,000 should be referred to the Claims Section of the OAG. Copies of all information available on the account should be included. The collection costs charged by the OAG should be added to the balance submitted. The University Business Office can supply the address and referral information for the OAG.
.630 State Debt Set-Off Program
The Commonwealth has instituted a program under which amounts owed by delinquent debtors to state agencies may be claimed through the debtor's state tax refund. Departments should submit a list, to the University Business Office, of accounts receivables, which are 60 days past due and do not have satisfactory payment arrangements. The list should provide the debtor's name, social security number, and amount due. Accounts referred to collection agencies should be included unless regular payments are being made on the account. University Business Office will report amounts collected under this program to the department after notification has been received from the Department of Taxation. The department should forward documentation of amounts collected under this program to any outside collection agent that is also handling the debt.
.640 Vendor Debt Set-Off Program
This program allows state agencies to claim vendor payments of one state agency to satisfy debt owed by the vendor to another agency. Debts may be sent to the Department of Accounts at any time during the year in which they become delinquent. Debtor information should include; debtor name, social security number or vendor ID, and amount owed. Documentation of amounts collected through this program should be forwarded to any outside collection agent that is also handling the debt.
Departments shall prepare a summary report of receivables as of June 30. University Business Office will send the Financial Reporting office reports listing the department's receivables as they appear on the University subsidiary ledger to the department by July 15 of each year. The department is responsible for verifying the accuracy of these receivables by comparing the accounting reports to departmental records. The department should then prepare and submit a summary report, which agrees to the adjusted total arrived at above, to University Business Office by August 1. This summary report should include an aging schedule which presents "receivables not past due" and "past due receivables". Receivables not past due are those receivables that are not presently due for collection or are currently due but have not passed the payment due date. Past-due receivables are those receivables that have not been paid by the due date. For reporting purposes these should be broken down as "1-30 days", "31-60 days", "91-120 days", "121-180" days, "181-1 year" and "over 1 year" past due.
.810 JMU Invoice
This form is used by departments to bill customers for goods provided/services rendered. Requests to use alternative invoice forms must be approved by the Assistant Vice President for Finance prior to use.
Forms are available online .
Original - Person/agency billed
Copy - University cashier
Copy - Departmental use
Following are detailed instructions for the preparation of the JMU Invoice. Enter only the following information listed below.
Invoice Number: Consecutive numbering code agreed to by the University Cashier and department.
Invoice To: Enter the name and address of person/agency billed.
Student/Corporate ID: Enter the name of the person or agency that received the goods or services if different than name entered in "Invoice To". When invoicing a student, enter the student's ID number.
Date: Enter the date the invoice is completed.
Description of Charges: Enter a description of services or goods provided.
FIS Code: Enter the Department ID number (See Section 2010, "Department Numbers") and Account number (See Section 2020, "Revenue Account Codes and Definitions") that should receive the payment.
Amount: Enter the amount to be paid for each item listed.
Total Due: Enter the total amount due from payee.
JMU Department: Enter the department name.
Person: Name of the person responsible for the department's transactions.
Phone Number: Enter the department's telephone number.
Fax Number: Enter the department's fax number.
MSC: Enter the department's mail stop code.
DO NOT alter information in the "Remit Payment to" section.