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Application Of Credit Terms & Receivables Management

RECEIVABLES MANAGEMENT

Introduction

Accounts receivable include reimbursements due from state and federal sponsors of externally funded research, patient billings, accrued income on investments, tuition, fees and various other receivables. In order to effect early conversion of these receivables to cash and minimize credit losses, each branch must maintain a diligent program for managing receivables. The management function consists of granting credit, billing accounts, effecting collection, analyzing outstanding accounts (aging), and providing for bad debts. This chapter outlines the policies and procedures pertaining to these management functions.
I. POLICY GUIDELINES

The procedures set forth in section II are based on the following policy concepts:

A. GRANTING OF CREDIT
The granting of credit is not a primary function; therefore, credit will be granted only as indicated below1:

1. Credit Granted to Students

Credit is granting to students in accordance with existing policies pertaining to student loans and deferred payment of fees. Credit is also granted to students as required for the administration of fines and the assessment of additional fees that may be determined to be applicable after a student registers.

2. Credit Granted to Employees

Credit is granted to employees in connection with Mortgage Origination Program (MOP) Loans
and Supplemental Home Loan Program (SHLP) loans and employee emergency loans.

3. Credit Granted to Staff

Credit is automatically granted to faculty and staff for travel advances. Travel advances to non-Organization personnel may be granted only in
1. Regents Standing Order states that except as otherwise specifically provided in the Bylaws and Standing Orders, the President is authorized to execute on behalf of the Corporation all contracts and other documents necessary in the exercise of the President’s duties, including documents to solicit and...