INVOICE RECEIVABLES MANAGEMENT PROCESS
Section 85.54 of Office of Financial Management requirement states:
"Written procedures are to be developed and followed to ensure that
past due receivables are followed up promptly and in a manner that is
cost-effective for the overall collection program. These procedures are
to provide for the full range of collection procedures to be used as
appropriate, including issuance of statements and dunning letters,
phone and personal interviews, filing of suits and liens, referral to
private collection agencies or letter services, etc."
Late fees will be applied at 31 days in accordance with SAAM (State
Administrative and Accounting Manual) regulations.
Our billing servicer, Heartland/ECSI, formerly Campus Partners sends
past due notices to customers at 60 and 90 days based on the date of
the invoice. Customers receive a final notice at approximately 120
days warning them that their account must be paid in full within 14
days.
To ensure the records with Invoice Receivables are current and
accurate, all departments on the Invoice Receivables contact list will
be sent a listing of outstanding invoices on a quarterly basis. This will
be done in February, May, August and November. If there are any
discrepancies in the list please contact us at invoices@uw.edu.
Departments can also be sent a list of invoices that are past due on a
monthly basis. This list can be used if the department wants to follow
up with their customers prior to the 60 day past due notice being sent.
Departments that contact their customers if the invoice has not been
paid in 30 days have the strongest results in receiving payment.
If there are any needed corrections, adjustments should be sent to
invoices@uw.ed. Contact us if you are interested in getting monthly
lists of past due invoices.
Once an invoice has been 120 days past due, SFS will attempt to
contact the customer to get payment. When an invoice is 120 days
past due the department should send a copy of the invoice to
invoices@uw.edu. Also provide the vendor’s name, address, phone
number and email address. The most current information and any
contact name at the business or organization would be very helpful.
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An invoice will be considered uncollectible at 180 days and the
department will be notified to remove that account from its list of
receivables. Records on these debtors should continue to be maintained,
and it is recommended that further credit should not be granted.
WRITE-OFF PROCEDURES
Departments should document, in writing, the criteria to determine
which receivables are uncollectable and write-offs should be based on
these criteria.
Several criteria justify write-offs:
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The debtor cannot be located, nor can any of the debtor's assets
The debtor has no assets and no expectation of having any in
the future
The debt is disputed and the agency has insufficient
documentation to pursue collection efforts
The debt is discharged in bankruptcy and there is no guarantor
or successor
The debtor has died and there is no estate or guarantor
After the account is written off, the accounting records pertaining to
the debtor's account should be maintained in accordance with the
department's approved records retention schedule.
Once an account has been written off, it should be promptly reviewed
by management to ensure consistency with written criteria in
accordance with the following guidelines (the amounts below represent
the total for all outstanding invoices for a single debtor):
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Amounts Up to $1,000---Reviewed and approved by I/R advisor
at SFS.
Amounts $1,000 to $5,000---Reviewed and approved by the SFS
director.
Amounts $5,000 and over---Reviewed and approved by the
Associate Vice President of Research & Student Accounting.
BANKRUPTCY NOTICES RECEIVED ON ACCOUNTS
SFS is the coordinating office for the University of Washington regarding
bankruptcy cases. All legal forms, letters, or inquiries regarding
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bankruptcies for Invoice Receivables customers should be forwarded to
invoices@uw.edu.
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