**INACTIVE POLICY**

For Current Policies:
Policy Table of Contents

 

                      UNIVERSITY OF VIRGINIA
           FINANCIAL AND ADMINISTRATIVE POLICIES MANUAL



TITLE:  CREDIT AND COLLECTION                        POLICY: IV.E.1x 
 
                                                    
Overview

Departments, support service units , and auxiliary enterprises may,
under cer--tain circumstances, be authorized to extend credit to
faculty, staff, stu--dents, and businesses outside the University
for the services they provide.

Support service units include all activities of the University
which provide to the various divisions of the University, and
coincidentally, to faculty, staff, students, and businesses outside
the University, services that might be purchased from commercial
sources but, for reasons of convenience, costs, or control, are
more effectively provided by a unit of the University.  Support
service units include photocopy, photographic and duplicating
services, glass blowing and machine shops, publication units and
other similar activities.

Auxiliary enterprises include all activities of the University
which exist for the primary purpose of furnishing a service to
faculty, staff, and students for a fee which is related to the cost
of the service.  The general public may, incidentially, be served
by some auxiliary enterprises.  Auxiliary enterprises include
Dining Services, Housing, Athletics, Newcomb Hall Bookstore,
Parking and Transportation and other similar  activities.

Where the extension of credit is authorized, the primary
responsibility for the collection of receivables rests with the
department or activity granting credit.  Under certain
circumstances, the University Bursar will continue collection
efforts.

Authority to Extend Credit

No department, support service unit, or auxiliary enterprise shall
extend cre--dit to faculty, staff, students, or businesses outside
the University without the prior approval of the University Bursar.

Restrictions on the Extension of Credit

In general, all services provided by departments, support service
units, and auxiliary enterprises to faculty, staff, students, and
businesses outside the University should be rendered on a cash
basis.

The University Bursar may grant special permission to render
service on a charge basis where the Bursar determines that it is in
the overall best interest of the University.

                                                                   
Collections Policy

University departments, support service units, and auxiliary
enterprises that extend credit must follow established University
billing procedures.

Any accounts in excess of $1.00 which remain outstanding after the
activity has complied with University billing procedures should be
referred to the University Bursar's Office for further collection
activity.

Once a past due account has been referred to the University
Bursar's Office, no further collection action should be taken by
the activity nor should further credit be granted to delinquent
debtors until the account has been paid.
      Subsequent payments on the account may be accepted ONLY by
      the University Bursar's Office.

NOTE:  Accounts referred to the Bursar's Office for collection must
contain a valid debtor's identification number in positions 60-68
of the departmental referral record (see Procedure 4-6).  Valid
debtor identification members include:
          Student Identification Number,
          Social Security Number, and
          Federal Employer Identification Number (FEIN).

See also Procedure 4-5, "Processing Delinquent Accounts."

See also Procedure 4-6, "Completing Departmental Referral Form 
(UT-267)."

See also Procedure 4-7, "Completing Accounts Receivable Adjustment
Form (UT-266)."

Delinquent Accounts Collections Policy:  Overview

The Bursar is responsible for all delinquent account collections,
except Health Services Foundation and Hospital accounts.

See above section, "Collections Policy."

Delinquent accounts are divided into four categories as follows:

     Student/under $50.

     Student/$50 and over.

     Non-student/under $50.

     Non-student/$50 and over.

Delinquent Accounts:  Financial Suspension Actions

Student delinquent accounts of $50 or more (or accounts accumulated
to this amount) will result in a financial suspension action in the
following sequence:

      The Bursar's Office issues a notice to the student at the
      student's official address as recorded by the Registrar.  The
      Bursar's Office also notifies the student's dean.

      The student must pay his/her obligation by the payment due
      date to avoid financial suspension.

      Once suspended, the student must repay all past due debts and
      submit a written petition to be reinstated.

      Suspended students cannot register for subsequent semesters
      until reinstatement has been completed.

Delinquent Accounts:  Other Collection Actions

Other collection actions possibly used on any category of
delinquent account include:

      Hold on grade transcripts for current and former student
      debtors.

      Debt referral to third party collection agency.

      Reporting debt to a credit bureau.

      Set-off of debt against State of Virginia Income Tax refund.

      Litigation (bring suit) against debtor.

Bad Debt Write Off Policy

The Bursar is responsible for initiating bad debt write off (except
for Hospital accounts which are subject to Hospital collection
policy).

To write off a bad debt, the following steps will be followed:

      The Bad Debt Committee will recommend write off to the
      Executive Vice President and Chief Financial Officer.         
              
      The Executive Vice President and Chief Financial Officer will
      approve or disapprove write offs of accounts under $50. 
      Accounts $50 and over will be recommended to The Board of
      Visitors for write off.                                       
                  
      The Bursar is responsible for notifying departments of
      accounts approved for write off.

      Accounts recommended for compromise, settlement, or discharge
      under current statutes must be referred to the President
      through the Legal Adviser.

Traveler's Checks/Advances

To be assured of receiving the reimbursement in time to pay the
travel card bill when due, one should submit the reimbursement
request within one week after incurring the charge on the travel
card.

See also Policy VI.B.10, "American Express Travel Card."

Employee Salary Advances

Employees are normally paid on the day following the end of the pay
period worked.  However, new employees who begin work during the
pay period may not receive a paycheck at the end of the first pay
period because there is not sufficient time to complete all forms
necessary for processing a regular paycheck.

A special salary advance check will be issued to those employees
who will not receive a regular paycheck.  This is a salary advance
and is NOT SALARY.  The salary advance is computed at 70% of the
expected gross earnings for the first pay period worked.  This
should approximate the amount that would have been received after
the first pay period less deductions for taxes and fringe bene--
fits.  The first regular paycheck will be the gross earnings for
the first two pay periods less deductions for taxes, fringe
benefits, and the amount of the salary advance.

Departmental Advances

Departments may obtain special cash advances from the University
Bursar's Office under circumstances where departments with only
State accounts are required to make expenditures that normally
would be made against State funds earlier than normal processing of
State invoices would permit.


ISSUED BY:                                                 04/03/89

University Bursar              4.5.1.1