Accounts receivable are monies due to the University, which have not yet been received. Amounts owed to the University include tuition and fees, sponsored projects, student loans, travel loans, parking tickets and fines, petty cash loans, etc.
The university's general policy is to apply the Commonwealth of Virginia's policies, standards, and limitations to all accounts receivable transactions, regardless of the source of funds. All receivables are to be processed through the university's central receivable system (managed by the Virginia Tech Bursar's Office).
The University is required to take all appropriate and cost effective actions to aggressively collect accounts receivables and the University is required to withhold services to those who refuse to pay their debts.
The University Controller has the ultimate responsibility for the management, reporting, and collection of the university's accounts receivables.
The overarching goal is to minimize the number and amount of past due and delinquent accounts receivable on an ongoing basis, and to minimize the annual write-off of accounts receivables.
Ensuring that a system is in place to record and safeguard all cash receipts properly until they are deposited
Ensuring that departmental records and procedures are reviewed periodically
Ensuring employees who are assigned cash handling duties are trustworthy and trained adequately in the appropriate procedures (written procedures should be available to these employees)
Ensuring that the department manager or designee reviews the procedures on a periodic basis to ascertain compliance
Ensuring that all cash receipts are deposited in a timely fashion (within 24 hours of receipt) and that documentation of cash receipts and deposits is maintained in good order for the period specified in University procedures
Ensuring the appropriate sales tax is collected for all taxable transactions, and state sales tax returns are completed and mailed to the Controller’s Office in a timely manner (by the 10th day of the month following the period covered by the return)
Ensuring adequate reconciliation procedures are performed to verify that all cash received was properly deposited and recorded in the Banner Finance system
Accounts receivable reconciliation (including cash reciepts reconciliation) should be performed on a monthly basis.
The employee who reconciles the department’s deposits to the appropriate departmental fund(s) must be someone other than the employee who receives and processes the cash receipts.
Departments should avoid retaining cash receipts over nights, weekends, holidays if large sums of money are involved or if the facilities do not provide adequate physical security.
Departments should use University security personnel to transport large deposits.
Departments must retain copies of university deposit tickets and bank deposit tickets in good order for the time period stated in the university’s records retention schedule.
