30.04 Collection of Receivables Updated: October 31, 2001
1. Authorized Receivables
While extension of credit is generally prohibited by the State, the following receivables have been authorized.
1.1 Student Fee Receivables – all fees, fines and charges assessed to students
1.2 Grant & Contract Receivables – all grants and contracts awarded on a reimbursement basis
1.3 Third Party Billings for Student Fee Receivables – all contract billings to third parties for the
payment of certain student fees.
1.4 Employee Travel Advances Receivable – all travel advances issued to employees in accordance
with University policy.
1.5 Employee & Visitor Fines – all parking fines, library fines, and returned check fees assessed to
employees and other third parties. [Note: Student fines addressed in 1.01]
1.6 Utility Receivables for campus vendors – all utility (e.g. electricity, gas, water, a/c, telephone,
etc.) Reimbursements assessed to contract vendors on campus.
1.7 Retiree Group Insurance Receivables – all billings to retirees for their portion of their retiree
group insurance premiums.
1.8 Prairie View A&M Research Foundation Receivables – all expenses (e.g. payroll, telephone,
etc.) paid by the University for the Research Foundation and billed on a reimbursement basis.
2. Recording of Receivables
All student receivables are entered into SIS+ and all other receivables are entered into FAMIS.
2.1 All student fee receivables are assessed in the University’s student information system (SIS+).
The requisite fee rate tables are maintained by the Fiscal Office. All student fines are initiated
by the applicable department and submitted to the Treasury Services Office into SIS+.
2.2 All grant and contract receivables are initiated by the Restricted Funds Office and recorded by
journal entry in the University’s financial information system (FAMIS).
2.3 All third party billings for student fee receivables are initiated by written letter or contract and
entered into both SIS+ (payment of student fees) and FAMIS (establishment of receivable from
2.4 All employee travel advance receivables are entered into FAMIS.
2.5 All employee and visitor parking fines are initiated by the University Police Department and
entered into FAMIS.
2.6 All utility receivables from vendors are initiated by the Physical Plant and Telecommunications
Departments and entered into FAMIS.
2.7 All billings for the retiree’s portion of their group insurance premiums are entered into FAMIS by
way of automated feed from the B/P/P system.
2.8 All authorized payments for the Prairie View A&M Research Foundation are initiated by entry into FAMIS.
3. Billing of Receivables
3.1 All student fee billings are issued at registration to the student. Reminder notices are issued
prior to the second and third installment due dates. Additional billings are issued monthly.
3.2 Most federal grants and contracts provide for electronic drawdowns of reimbursements and
thus, no billing is required. Certain State grants provide General Revenue appropriation
transfers which the University may expend against and thus, no billings are required.
Reimbursement billings for all other grants and contracts are issued in letter form to the
granting agency generally on a monthly basis.
3.3 All employee and other third party receivables are billed monthly.
4. Reporting of Receivables
4.1 A detail listing (IBMR052) of employee and third party receivables is provided to the Manager of
Treasury Services, Controller, Assoc. Vice President for Finance and Administration, and Vice
President for Finance and Administration on a monthly basis for review.
4.2 A detail listing (IBMR050) of departmental (i.e. telecommunications, utilities, university police,
etc.) receivables is provided to each respective billing department for their information, review
and assistance in collection.
4.3 An aged listing of student fee receivables is reviewed at the end of each fiscal year in
connection with adjusting the allowance for uncollectibles and preparation of the annual financial
5. Other Collection Efforts
5.1 Students are not allowed to register for a semester until they have paid their prior balance
(including balances written off) in full. Exceptions must be approved by Controller.
5.2 Students are dropped from enrollment if they do not meet the minimum required installment
payment by the census date.
5.3 The Vice President for Finance and Administration writes letters to employees and third parties
to assist in clearing delinquent accounts.
5.4 All student receivables that are one year old are turned over to a letter writing service. All
student receivables that are two years old are turned over to collection agencies.
5.5 Employee’s travel reimbursements are held until all outstanding debts to the University are paid.
5.6 Individuals leaving the employment of the University are required to process their Employee
Clearance Form through Treasury Services, where they are reminded of their outstanding debt
to the University.
5.7 Requests for refunds from TRS or ORP are not processed until all outstanding debts are cleared.
5.8 Except for certain utilities, services may be discontinued when an account becomes 180 days
delinquent. Action will be taken by the applicable department, subject to their vice president’s approval.
6. Write Off of Receivables
6.1 The University uses the allowance method for accounting for uncollectible student fee
receivables. At the end of each fiscal year, the University determines its allowance for
uncollectible student receivables as follows:
Age Estimated Uncollectible
0 – 1 year old 80%
1 – 2 year old 100%
6.2 After the estimated uncollectible is determined, the allowance for uncollectible is adjusted so
that it equals the estimate. The offset to this adjustment is bad debt expense which is allocated
to the various student fee accounts on a pro-rata basis.
6.3 All student receivables that are over 2 years old are written off the books by reducing the
receivable and the allowance for uncollectible. [Note: All write-offs are still tracked until paid.]
6.4 When a written off receivable is subsequently collected, the receivable and allowance are
reinstated and the payment is posted.
6.5 The University writes off receivables from non-students after all collection efforts have been
exhausted and the applicable department requests the write off. All write-offs of non-student
receivables must be approved by the Vice President for Finance and Administration.
Contact: Manager of Treasury Services
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