6-6: Past due receivables

Effective: July 1, 1998
Revised: July 2, 2026
References: Utah Code 63A-3, Admin Rule 21-1, 6-7: Payment plans for receivables, 6-8: Write-offs and allowances, 13-4: Returned checks and debit card chargebacks, 13-5: Credit and debit card payments

Purpose

This policy explains how to handle past due receivables and use Vantage Financial settings to help collect them.

Definitions

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

Depository bank account – A bank account approved, opened, and tracked by the Office of State Treasurer where agencies deposit money that is then transferred to the main bank account of the state treasurer.

Dunning message – A notification a business sends to a customer to collect an overdue payment or to inform them of a failed transaction.

GovOps – The Department of Government Operations.

OSDC – The Office of State Debt Collection.

Past due – An amount due with an outstanding balance after 30 days of the invoice date or 30 days of the due date for non-invoiced payments.

Payment plan – A documented agreement between an agency and a customer that allows repayment of a receivable balance over time according to defined terms.

Performing payment plan – A payment plan in which payments are received as agreed and the customer remains in communication with the agency.

RE – Receivable transaction in Vantage Financial used to record and track amounts owed to the state.

Receivable – An amount due for which payment has not been received.

State finance – The GovOps Division of Finance.

Policy

A – Agencies must identify and refer past due receivables

1 – Agencies must monitor receivable aging at least monthly to promptly identify past due balances.

2 – Agencies must consider a receivable as past due when they haven’t received full payment within 30 days of the invoice date or within 30 days of the due date for non-invoiced receivables.

3 – Agencies must make collection efforts on past due receivables for 60 calendar days. Collection efforts should include, as applicable:

issuing follow-up invoices, statements, or dunning notices;
contacting the customer by email, phone, or written correspondence;
verifying customer contact and billing information; and
documenting all collection activities and responses.

4 – If agencies aren’t successful with their collection efforts after 60 days (90 days from the initial invoice date), they must refer the receivable to OSDC by updating the reason code on all affected accounting lines of the RE to “OSDC-COL”.

4a – Referring a receivable to OSDC for collection isn’t a write-off. Because agencies still own the asset, they must continue to monitor the collectibility of these receivables until OSDC’s collections efforts are exhausted. Agencies must follow state finance policy 6-8: Write-offs and allowances to determine when a receivable actually qualifies for a write-off.

4b – Agencies may delay referral to OSDC if they have an approved payment plan. See state finance policy 6-7: Payment plans for receivables.

5 – Agencies must not refer receivables owed by the federal government to OSDC. Instead, agencies must continue internal collection efforts until the receivable is fully resolved.

6 – See state finance policy 13-4: Returned checks and debit card chargebacks for referring returned check REs to OSDC.

B – Agencies may request a written exception to delay referral to OSDC

1 – Agencies may request a written exception from state finance and OSDC to delay referring receivable balances that are more than 60 days past due to OSDC. State finance and OSDC may grant an exception when an agency can show that internal collection efforts are likely to be more effective than referral to OSDC or when customer-specific practices (such as extended payment cycles exceeding 90 days) justify delayed referral.

1a – Written exceptions aren’t needed for receivables with approved payment plans in compliance with 6-7: Payment plans for receivables. Written exceptions only apply to defined categories of receivables or groups of customers that meet specific criteria.

1b – Written exceptions aren’t required for federal receivables because they aren’t subject to referral to OSDC.

2 – Agency finance directors must submit written exception requests to the state finance director (or designee) and the OSDC manager for approval.

3 – Agencies’ written requests must include the following:

a clear, detailed justification for the request;
the divisions and programs to which the exception applies;
a detailed description of the types of receivables covered;
an explanation of the collection methods the agency will use to monitor and pursue outstanding balances;
a description of how receivables will be recorded and reconciled in Vantage Financial (such as individual transactions, subsystem summaries, or year-end accruals); and
the extended timeframe the agency will use for internal collection efforts before referral to OSDC.

4 – Agencies must renew their written exceptions every 3 years or when circumstances affecting the terms of the exception change significantly.

4a – Agencies must promptly notify state finance of any significant changes that may affect the terms or appropriateness of an approved exception.

5 – State finance and OSDC may revoke an approved exception at any time due to noncompliance or significant changes.

6 – Agencies and state finance must keep documentation of approved exceptions and ensure it’s updated in compliance with this policy. Agencies must keep the documentation in compliance with state records retention requirements.

C – Agencies with approved exceptions for continued internal collection must continue collection efforts

1 – Agencies with approval to keep receivables for continued internal collection must continue to perform and document their reasonable collection efforts.

2 – Agencies must actively monitor the receivables they’re collecting internally and evaluate their collectibility at least quarterly.

3 – Agencies must refer receivables to OSDC if their internal collection efforts are unsuccessful according to the criteria in the written exception. The only exception to this is if a receivable is determined to be uncollectible as outlined in state finance policy 6-8: Write-offs and allowances sections C1 and C2.

D – Payments for OSDC-referred receivables must be entered and coded correctly

1 – If agencies send a receivable to OSDC for collection and then receive a payment within 5 business days, they must deposit the payment into their depository bank account and record the cash receipt (CR) transaction in Vantage Financial with the correct bank account code.

1a – Agencies must reference the receivable (RE) transaction in the CR and notify OSDC of the receipt, so OSDC can make the necessary system adjustments.

2 – If agencies send a receivable to OSDC for collection and then receive a payment after 5 business days, they must deposit the payment into their depository bank account and record the cash receipt (CR) transaction to the specific OSDC account coding in Vantage Financial:

Department 150
Fund 2105
Unit 5020
Revenue 2930
Appropriation Unit 2105

2a – The CR must not reference the original receivable or any other agency transaction. Instead, agencies must enter the RE number that the payment should be applied to in the accounting line field, “Line Description”. OSDC will then apply the payment to the receivable and to any fees and charges, as applicable.

3 – Any late charges and/or interest that agencies apply to the receivable must strictly adhere to all applicable laws and administrative rules referenced at the top of policy.

E – OSDC is responsible for the collections settings in Vantage Financial

1 – OSDC is responsible for establishing the Vantage Financial system-wide default settings for the content and timing of dunning messages and collection letters.

1a – Agencies may request permission from OSDC to override these system-wide defaults and configure their own customized settings.