Accounts Receivable Policy

General

McNeese State University, in fulfillment of its mission as a public educational institution, may extend credit to students, employees (for travel), and other third parties under contractual agreements. While such credit arrangements may pose repayment risks, the University is committed to managing accounts receivable responsibly and in accordance with sound financial practices.

Purpose

This policy establishes guidelines to ensure proper internal controls over the management, recording, and collection of accounts receivable across the University.

Scope

This policy applies to all University employees involved in the billing, management, or collection of accounts receivable, including but not limited to student accounts, employee receivables, grants, contracts, and miscellaneous receivables.

Objectives

• To outline standardized procedures for managing accounts receivable;
• To reduce financial risk associated with uncollected receivables; and
• To provide accurate and timely information to support University financial oversight.

Audit

Accounts receivable activities are subject to audit by the University’s Office of Internal Audit and by the Louisiana Legislative Auditor as part of the state’s biennial review process.

Student Billing and Recording

Registration

Students may register for courses through Banner Self-Service or with the assistance of department advisors. At the time of enrollment in classes, students’ invoices are available online, and accounts receivables are recorded in the University’s student and financial records system. Either signed financial aid authorization forms, payments-in-full, or fee deferral arrangements with the required down payment must be received by the Office of Administrative Accounting by the fee payment deadline.

Installment Plan

To assist students who do not participate in financial aid, qualifying students may avail themselves of the University’s installment plan, which allows tuition payments to be delayed until later in the semester. A minimal down payment is required.

Payments

Students have the option of paying online with either a check or a credit/debit card, or they may pay the University directly via drop box, mail, or in person at the Cashier’s Office. If payment-in-full or fee deferral arrangements have not been made by the due date, the students’ classes may be purged from the system, at which time the corresponding receivables are removed from the student and financial records system.

Schedule Changes

Schedule changes are allowed through the deadline stated on the academic calendar. At the end of this period, payment is due for increased amounts resulting from schedule changes. The Office of Administrative Accounting then performs an individual account analysis, and students with outstanding balances and no installment plan down payment may have classes purged from the system, at which time all charges are reversed from their student account and the corresponding receivables are removed from the system.

Student Accounts Receivable

Student accounts receivable generally consists of balances for tuition and fees, McNeese Team Store charges, meal plans, parking fines, library fines, and other miscellaneous fees. When student accounts become delinquent, appropriate registration and transcript holds are placed on the student’s account. Delinquent accounts more than $200 and 180 days old are reviewed and a final statement of account is mailed to the last known address advising the student that their account will be placed for collection with the attorney general’s office within 45 days. At that time, the student has an opportunity to pay in-full, make payment arrangements, or dispute the charges. After 45 days, the unsettled accounts are electronically sent to the attorney general via secured channels. Once the account has been turned over to the attorney general, all University internal collection efforts are stopped, and the account must be paid through the attorney general’s office.

Other Accounts Receivable

Employee Receivables

The only types of employee receivables at McNeese State University are related to outstanding travel advances and McNeese Team Store charge accounts. The outstanding travel advances are monitored by the travel accountant. This employee contacts departments and requests travel documentation to clear the travel advance. The McNeese Team Store charge accounts are monitored by the McNeese Team Store and reconciled to the general ledger by the Office of Administrative Accounting.

Grants and Contracts

Reimbursement-based grants/contracts are invoiced by the grant accountant per agreement terms. Receivables are recorded at fiscal year-end and assumed to be fully collectible—no allowance for doubtful accounts is applied.

Miscellaneous

Other miscellaneous receivables consist of a variety of billings ranging from clinical services, insurance billings, farm activities, and athletic contracts. These receivables are typically not recorded in the general ledger unless an outstanding balance remains at fiscal year-end. If a balance is still due at that time, the comptroller will record the appropriate entry in the general ledger.

Reporting

A quarterly accounts receivable report is submitted electronically to the Office of Statewide Reporting and Accounting Policy, in compliance with Louisiana R.S. 39.79 and SA-96-45. This report includes receivable aging, collection activity, and write-offs with explanatory notes for any variances.

An allowance for doubtful accounts is recorded annually in the general ledger using the following percentages:

• 10% of balances < 1 year old;
• 60% of balances > 1 year old; and
• 100% of balances in bankruptcy.

Adjustments to the allowance are made at the close of each fiscal year based on current receivable trends.

Communication

This policy is distributed via the University Policies webpage.