FIACCT 06-02_03 – Receivables – FINET – exempt agencies – past due receivables

Effective: July 1, 1998
Revised: December 1, 2019
Reviewed: December 1, 2019

Purpose

This policy describes how FINET exempt agencies should deal with past due Receivables.

Background

FINET-exempt agencies are state agencies that have been granted a written exemption from tracking their Receivables on FINET by the Division of Finance and the Office of State Debt Collection (OSDC). These exempt agencies will track their Receivables on their own internal receivable system. However, exempt agencies are subject to Division of Finance and OSDC policies and procedures relating to collection of Receivables.

Policy

A. FINET-exempt agencies will follow Division of Finance and OSDC policies and procedures for collection of past due Receivables.

B. Unless granted an exemption in writing by OSDC from turning past due Receivables over to OSDC, FINET-exempt agencies will forward their past due Receivables to OSDC after the Receivable is 61 days past due. OSDC will then place the past due Receivables with a private sector collector for up to one (1) year.

C. Exempt agencies will follow the FINET Exempt – Write-Offs and Allowances policy in this section of the manual to determine if a past due Receivable is uncollectible and what action to take for uncollectible Receivables.

Procedures

Responsibility

Action

Agency

Pursue collection efforts on past due Receivables for 60 days. Comply with Division of Finance and OSDC policies and procedures for collection of past due Receivables.
Once the Receivable is 61 days past due, forward all supporting
documentation related to the past due Receivable to OSDC. Contact OSDC for details on transferring these past due Receivables to OSDC.
For Receivables turned over to OSDC, leave the past due Receivable open on the internal receivable system, and do not adjust the quarterly FINET summary entry.

OSDC

Pursue collection of the Receivable until payment in full is made or until conditions for write-off have been met. See FIACCT 06-02.04 Exempt – Write-offs and Allowances for more information.