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 via Banner Self-Service or with an advisor. At registration, invoices are made available online, and accounts receivable entries are recorded in the student financial system. To retain enrollment, students must submit either:

• Full payment;
• A completed financial aid authorization form; or
• A fee deferral agreement with the required down payment.

Installment Plan

Students not receiving financial aid may qualify for an installment plan, which allows tuition payments to be spread throughout the semester with a minimal initial payment.

Payments

Payments may be made online via e-check or credit/debit card, or in person/by mail through the Cashier’s Office. Students who fail to make arrangements by the payment deadline risk having their classes purged and corresponding receivables removed from the system.

Schedule Changes

Changes to course schedules are permitted through published deadlines. Any increased charges from schedule adjustments must be paid promptly. After the deadline, students without an installment plan and outstanding balances may have their schedules purged and charges reversed.

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.