Memorandum #214 Accounts Receivable Collection and bad Debt Management Policy

Revised:  August 15, 2024
Date of Issuance: April 5, 2001
Revised Date of Issuance: February 5, 2009
                                                                                       Approved By: Board of Trustees
Policy Owner: AVP, Accounting and Controller

I. Student Tuition

Tuition is due each semester prior to the start of classes and if accounts are not paid in full by published payment deadlines, the student schedules may be cancelled. The College offers several payment options including payment plans. Please visit the College’s website for details on the payment options.
If payments are not received in full by November 25th for Fall and April 25th for Spring, the students will be prevented from registering for subsequent terms and the accounts may be referred to a collection agency or agencies for follow up. This may involve contacting (or attempts at contacting) the defaulters over a 45-day period.
Students not paid in full after initial follow-up by the agency will be assigned to a more aggressive level of collection  efforts that may conclude in legal processes and credit reporting.

II. Third Party Tuition Billings

Through various Divisions and Offices, the College enters into agreements with a broad range of business and industry clients that involve a variety of arrangements for the delivery of credit and non-credit instruction. Payment terms can range from standard tuition rates per student (employee) to a lump sum for the total activity. These arrangements routinely involve written agreements that include billing arrangements for tuition, fees and books. Individual student accounts are credited and a receivable is established with the business and industry client. Upon the completion of registration (and textbook and supplies arrangement), an invoice is issued to the client, which usually occurs mid-way through the instructional process, term or semester.

• All third party agreements are to include billing terms that either require payment upon receipt of College invoice or Net 30 payment term.

• Registration of students for subsequent semesters is contingent upon payment for the current term.

• If payment is not received by the end of the academic year, every effort shall be made to resolve and collect the outstanding balance.

• Accounts associated with past due balances will be referred to a collection agency or agencies for collection.

III. Employee Computer Loan Program

As part of the College's staff development initiative, a computer loan program is offered to College employees who are able to purchase computers for the home. In the event an employee separates from the College, payment of outstanding balances will be accelerated through unused vacation, cash payment or a new payment agreement not to exceed one year. Accounts that are 30 days past due may be referred to third party collection agency or agencies.

IV. Forgivable Loan Program

Repayments of loans not forgiven shall follow procedures consistent with Memorandum #206 Forgivable Loan Policy. Accounts that are past due may be forwarded to a third-party collection agency.

 V. Other Vendor Receivables

The College will engage in other program-related activities that include accounts receivable relationships.

• Repayments shall be per agreement. In the absence of an agreement, payment will be due upon receipt of invoice.

• If payment is not received by the end of the academic year, relationship with the client may be suspended.

• Accounts associated with suspended relationships may be referred to an outside collection agency or agencies for aggressive collection.

VII. Bad Debt Write-off

When accounts go unpaid after exercising all due diligence, the receivable will be written off as uncollectable.

• Individual accounts with balances of $10,000 or greater require Board of Trustee approval prior to write-off.

• In any event when an individual account balance of $100,000 or more becomes 90 days past due, the Board of Trustees must be notified.