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Policies and Procedures

Policy 503 – Accounts Receivable

Effective
January 23, 2004
Last Updated
July 1, 2010
Responsible University Officer
Assistant Vice Chancellor & Controller
Responsible Unit
Accounting Services

Policy Statement

All appropriate and cost effective actions to collect accounts receivable shall be taken, with the objective to sustain proper management of University receivables held by campus units. All accounts receivable should be billed monthly. A concerted effort should be made to collect accounts including the current amount due applicable to installment payments. Departments should send follow up notices on uncollected accounts.

Each department should maintain records and supporting documentation for their accounts receivable. The University is required by law to establish internal policies and procedures for the management and collection of accounts receivable and be consistent with the statewide policies and procedures adopted by the Office of the State Controller (OSC).

Reason for Policy

To ensure that the University is paid for goods and services rendered, by maintaining accurate billing and timely collection for services provided by the departments, ensure compliance with applicable state and federal laws; ensure fairness for both the debtor and the University.

Exclusions

None

Special Situations

None

Procedures

  • 503.1 - Collecting Past Due Accounts Receivable (non-student)
  • 503.2 - Writing Off Uncollectible Accounts

Additional Information

Frequently Asked Questions

Q: When is an account considered deliquent?
A: An account is considered deliquent if it is at least 60+ days in arrears or past due, and no arrangements have been made by the debtor to satisfy the obligation.

Q: Are indigent care accounts and contractual adjustments (with UNC Physicians and Associates) considered a debt to the University?
A: If an account is determined to be an indigent care account or a contractual adjustment, then that portion of the account is no longer classified as a receivable or debt to the University and, therefore, the procedures to account for uncollectible receivables do not apply.

Related Data

North Carolina Office of State Controller - Statewide Accounts Receivable Program
North Carolina General Statute 147-86.21, State agencies to collect Accounts receivable in accordance with statewide policies.

Contacts

SUBJECT CONTACT TELEPHONE FAX E-MAIL
Accounts Receivable Accounting Services --Cash Management 919-962-1601 919-962-3306 cash_management@unc.edu

History

Revised:
July 1, 2010