UNIVERSITY OF VIRGINIA
          FINANCIAL AND ADMINISTRATIVE PROCEDURES MANUAL
                                    


TITLE:  PROCESSING DELINQUENT ACCOUNTS             PROCEDURE:  4-5 

                                                                   
                                                                   
Policy Reference:    IV.E.1

Purpose

To document the procedures for processing delinquent accounts.

Note: All costs of collection will be absorbed by the debtor, or 
      the referrer if the debtor has no obligation for collection  
      costs.

Note:  Hospital patient receivables are not part of this procedure.

Instructions

    Responsibility                          Action                  
       
Department                1.   Issues a minimum of two bills before
                               account is 60 days past due.

                          2.   Forwards delinquent accounts to     
                               Accounts Receivable Section.  See
                               Procedure 4-6 "Completing
                               Departmental Referral Form (UT-
                               267)."Accounts Receivable

                          3.   Prepares and mails the first Section
                               University bill.

                          4.   Places a hold on grades transcript
                               for current and former students if
                               total outstanding obligations are $5
                               or more.

                          5.   Blocks registration of individuals
                               with outstanding obligations who
                               attempt to enroll as students.

                          6.   Suspends currently enrolled students
                               and places a hold on their 
                               transcripts, if total of outstanding
                               obligations totals $50 or more.

                          7.   Refers accounts to the State for
                               offset against State income tax
                               refunds under the set-off debt
                               collection process.


                                                                   
    Responsibility                          Action                 

Accounts Receivable       8.   Reports debtors to credit bureaus,
                               Section if deemed cost effective.

                          9.   Refers account to a collection
                               agency, if deemed cost effective.

                          10.  Initiates litigation action against
                               debtors, if deemed cost effective.

                          11.  Disposes of delinquent account by
                               collection or write-off.  See also
                               Policy IV.E.1, "Credit and
                               Collection."


                                                                   
ISSUED BY:                                                 09/01/88

University Bursar              4.5.2