Issued: April 3, 1989
Owner: University Comptroller
Latest Revision: March 3, 2000
CREDIT AND COLLECTION
**ACTIVE BUT UNDER REVISION**
This policy is currently under revision at the University. Although the statements herein reflect enforced policy guidance, please contact the "Owner" listed above if you have questions about how this policy applies to your office. The statements herein are to be used as general guidance until the policy has been revised and added to the University Policy Directory. Thank you.
This policy describes the general guidelines for extending credit to University faculty, staff and students, or to businesses outside the University.
2.0 Policy [Top]
Departments, support service units , and auxiliary enterprises may, under certain circumstances, be authorized to extend credit to faculty, staff, students, 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, University Bookstore, Parking and Transportation and other similar activities.
2.2 Authority to Extend Credit
No department, support service unit, or auxiliary enterprise shall extend credit to faculty, staff, students, or businesses outside the University without the prior approval of the Associate Comptroller, Revenue Collections.
2.3 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 Associate Comptroller may grant special permission to render service on a charge basis where it is in the overall best interest of the University.
2.4 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 Revenue and Collections Office for further collection activity. Once a past due account has been referred to the Revenue and Collections 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 Revenue and Collections Office.
NOTE: Accounts referred to the Revenue and Collections Office for collection must contain a valid debtor's identification number in positions 60-68 of the departmental referral record (see Procedure 5-3). Valid debtor identification members include: Student Identification Number, Social Security Number, and Federal Employer Identification Number (FEIN).
See also Procedure 5-2, "Processing Delinquent Accounts."
2.5 Delinquent Accounts Collections Policy: Overview
Student Accounts and Accounts Receivable is responsible for all delinquent account collections, except Health Services Foundation and Medical Center accounts.
See above section, "Collections Policy."
Student delinquent accounts will result in a registration block and transcript hold being placed in on the student's account in the Integrated Student Information System (ISIS).
2.6 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.
2.7 Bad Debt Write Off Policy
Student Accounts is responsible for initiating bad debt write off (except for Medical Center accounts which are subject to Medical Center 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 Operating Officer.
The Executive Vice President and Chief Operating Officer will approve or disapprove write offs.
Student Accounts is responsible for notifying departments of accounts approved for write off.
2.8 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."
2.9 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 benefits. 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.
2.10 Departmental Advances
Departments may obtain special cash advances from Accounting Services 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.
3.0 Definitions [Top]
4.0 References [Top]
5.0 Approvals and Revisions [Top]
Previous version in effect from 4/3/89 to 3/3/00 available in policy archive.