6-4: Accounts receivable subsystems

Effective: July 1, 1998
Revised: July 2, 2026
References: Utah Code 63A-3-502, Admin Rule 21-1, 6-1: Receivables general policies and procedures, 6-5: Year-end receivables, 6-6: Past due receivables, 6-7: Payment plans for receivables, 6-8: Write-offs and allowances, 13-4: Returned checks and debit card chargebacks

Purpose

This policy outlines the requirements for agencies to request and maintain a subsystem for accounts receivable outside of Vantage Financial.

Definitions

Agency – Any agency, board, bureau, commission, office, department, or other administrative subunit of the executive, legislative, and judicial branches of state government.

GovOps – The Department of Government Operations.

OSDC – The Office of State Debt Collection.

RE – Receivable transaction in Vantage Financial that debits receivable balance sheet accounts and credits either a revenue or an expenditure (for expenditure reimbursements), based on the coding block entered.

State finance – The GovOps Division of Finance

Policy

A – Agencies must meet the requirements for using a subsystem

1 – Agencies must get a written exception and approval from the state finance director and OSDC manager to use a subsystem instead of Vantage Financial for their accounts receivable.

1a – Agencies must not request exceptions for federal grants because they are required to be recorded in Vantage using REs. See state finance policy 6-1: Receivables general policies and procedures section D.

1b – Agencies must renew their written exceptions every 3 years, or sooner if they make significant changes in their subsystems. State finance and OSDC may revoke any exception for noncompliance or significant changes.

2 – For state finance and OSDC to consider granting an exception, agencies must provide documentation showing that:

Vantage Financial doesn’t meet the specific requirements of their accounts receivable activity;
their subsystem has adequate financial internal controls over the recording and collection of receivables, including separation of duties; and
their subsystem maintains sufficient accounting records and controls, including transaction detail, audit trails, aging reports, system security, and approval processes.

3 – Before agencies can use an accounting subsystem, state finance must review the system’s internal controls to ensure they meet state requirements.

4 – Agencies must notify state finance of significant changes to their subsystems, related processes, or internal controls, which may require reevaluation or reapproval.

5 – Subsystems are subject to audit.

6 – Agencies and state finance must keep documentation of approved exceptions and maintain and update the documentation in compliance with this policy and state records retention requirements.

7 – At a minimum, agencies must comply with all applicable state finance receivable policies when they use a subsystem, including policies related to billing, collections, returned checks, write-offs, payment plans, and referrals to OSDC.

7a – Agencies should work with state finance and OSDC to establish procedures for properly recording subsystem receivables.

7b – Agencies with approved subsystems that want to delay referrals to OSDC through payment plans or other means must get a written exception specific to the delay. This exception must be distinct from the subsystem exception, although both may be documented within the same written approval. See state finance policy 6-7: Payment plans for receivables.

8 – Vantage Financial is the official system of record. Agencies with exceptions may only use subsystems for operational purposes and must reconcile their data in Vantage Financial for recordkeeping purposes.

B – Agencies must record and reconcile their subsystem receivable data in Vantage Financial

1 – Agencies must ensure that all receivable activity recorded in their subsystems is accurately reflected in Vantage Financial, including adjustments, write-offs, and collections.

2 – Each month, agencies must at least record the subsystems’ summarized receivable data in Vantage Financial.

2a – Agencies must record receivable activity using summarized or detailed data by using either an approved system interface or manual entry. Agencies must work with state finance to ensure their chosen method accurately records their receivable activity and meets state finance requirements.

2b – Agencies must keep detailed, transaction-level supporting documentation for their subsystems’ summarized receivable data. Agencies must attach this documentation to manual entries in Vantage Financial.

2c – Agencies must keep documentation for interfaced transactions readily available for review or audit.

3 – At least monthly, agencies must reconcile their subsystem data with the Vantage Financial amounts, document their review, and promptly resolve any differences.

C – Agencies must follow Finance receivables policies

1 – Agencies with approved subsystems must comply with all applicable state finance receivable policies, including:

6-5: Year-end receivables;
6-6: Past due receivables;
6-7: Payment plans for receivables;
6-8: Write-offs and allowances;
13-4: Returned checks and debit card chargebacks; and
13-5: Credit and debit card payments.

2 – Agencies must perform write-offs in their subsystems according to state finance policy 6-8, including the applicable required thresholds and OSDC coordination. Agencies must include write-offs in the monthly summaries recorded in Vantage Financial (see section B).

2a – Agencies must get the approvals required by policy 6-8 for all write-offs, including:

agency management approval for all write-offs;
approval from the OSDC manager for write-offs of a $100 or more; and
approval from the state finance director or designee or the assistant state comptroller for write-offs of $50,000 or more.

2b – Agencies must receive and document the above approvals through their subsystem processes or other formal methods since they don’t process their write-offs through Vantage Financial WO transactions.

2c – Agencies must keep documentation supporting write-off activity, including approvals and justifications, and make it readily available for review or audit.

3 – Agencies must manage returned checks and debit card chargebacks in their subsystem to achieve the same financial outcome state finance policy 13-4 requires, including:

reversing the original payment;
re-establishing the receivable when appropriate;
applying applicable service charges and collection costs; and
recording these charges and costs to the appropriate OSDC coding when entering them in Vantage Financial.

3a – Agencies must follow the returned check and debit card chargeback timelines detailed in state finance policy 13-4, including requirements for notice, collection costs, and OSDC referrals.

3b – Agencies must maintain documentation that supports returned checks and chargebacks and keep it readily available for review or audit.

3c – Agencies must ensure their summarized receivable activity in Vantage Financial accurately reflects all returned checks and chargebacks from their subsystem.

4 – Agencies must maintain all receivables documentation in compliance with state records retention requirements.