503 - University of North Carolina at Chapel Hill Policy on Accounts Receivable

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.

Policy Statement

All appropriate and cost-effective actions to collect accounts receivable must 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.

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) and UNC General Administration Business Compliance Program procedural guidelines. Each department must maintain records and supporting documentation for their accounts receivable. Departments must charge interest and penalties as outlined in N.C. General Statute (N.C.G.S) § 147-86.23, engage in skip tracing of debtors (N.C.G.S. § 147-86.24), report debts to the Setoff Debt Collection Program (N.C.G.S. § 147-86.25) through UNC-CH Accounting Services or directly to the NC Department of Revenue as established, and provide quarterly reports to UNC-CH Accounting Services for required reporting to the State Controller (N.C.G.S. § 147-86.26).

Exclusions

None

Special Situations

None

Procedures

• Finance Procedure 503.1 - University of North Carolina at Chapel Hill Procedure on Collecting Past Due Accounts Receivable (non-student)
• Finance Procedure 503.2 - University of North Carolina at Chapel Hill Procedure on Writing Off Uncollectible Accounts
• Finance Procedure 503.3 - University of North Carolina at Chapel Hill Procedure on Managing a Notification of Bankruptcy

Additional Information

Frequently Asked Questions

Q: When is an account considered delinquent?
A: An account is generally considered delinquent 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 Faculty Physicians) 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

• Finance Related Data 503.1rd - UNC Procedural Guidance on Collection of Past Due Accounts and Write-Offs
• North Carolina Office of State Controller, Statewide Policies, Section 200 - Accounts Receivable
• North Carolina General Statute § 147-86.21 - State agencies to collect Accounts receivable in accordance with statewide policies
• North Carolina General Statute § 147-86.22 - Statewide Accounts Receivable Program
• North Carolina General Statute § 147-86.23 - Interest and Penalties
• North Carolina General Statute § 147-86.24 - Debtor Information and Skip Tracing
• North Carolina General Statute § 147-86.25 - Setoff Debt Collection
• North Carolina General Statute § 147-86.26 - Reporting Requirements

Contacts

History

Revised:

• February 18, 2016: Added Link for new Procedure 503.3.
• June 29, 2015: Updated information collecting accounts.
• July 1, 2010