BURSAR’S DIVISION ACCOUNTS RECEIVABLE

The Accounts Receivable Department is responsible for the control, collection and maintenance of all related records concerning money due the University from goods sold or services rendered by certain University departments, including some credit card sales, sponsor billing for student account balances, returned checks and specific cost for reimbursable type agreements. Summary of Major Accomplishments Receivables and Write-Offs In Fiscal Year 2011, accounts with a balance of $3,000 or less were written off for a total write-off of $96,973.96 ($60,691.43 from reserve and $36,282.33 from surplus accounts). The reserve for uncollectible accounts decreased by $56,302.25 (8%) from FY 2010 to FY 2011. In FY 2011, the University recovered 8% of the reserved balance that can be attributed to a number of student accounts that were previously reserved. Of the accounts the Accounts Receivable Department manages directly, 35 (non- student) returned item accounts ($9,002.28) and 37 Veterinary Medicine accounts ($35,263.90) were sent to collections for the first time. Forty-one Veterinary Medicine accounts ($60,130.67) were sent to a second collection agency. In addition, Accounts Receivable assisted various departments with sending their past due accounts to collection; these amounted to five accounts totaling $1,236.20. Retiree Benefits Beginning in June 2009, certain terminated employees became eligible for government assistance in paying their COBRA insurance premiums. The ex-employees, if eligible, are only responsible for 35% of their premiums. The remaining 65% is offset to a payroll account that is used to credit payroll taxes owed. To allow for accurate reporting, the Accounts Receivable system reports the full premium due for each COBRA assistance-eligible account, and then manual adjustments are made to the paper statements mailed each month. Manual entries are made in the system to reflect the payments and the credits for the remaining portion. Credits for the 65% are only done once payment has been received. The department was working on automating this process and was hoping to complete the project in FY 2011; however, the assistance program is being phased out, and the process will no longer be needed. Collections During FY 2011, the Bursar’s Office recognized a 16% recovery rate on student account balances reserved. This recovery success doubled both in percentage and dollars. Recovery on these accounts has improved now that past due accounts are being sent in a timelier manner. Accounts Receivable will strive to increase this recovery rate with the aid of another collection agency for second placements in FY 2012 and will also revise who receives its first-time placements.

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Summary of FY 2012 Goals Collection Procedures An emphasis continues to be placed on the collection of all outstanding receivables. In addition to collection of receivables currently managed centrally, the department hopes to improve collection procedures with the rest of campus in the coming year. The University is pursuing adding a third collection agency to assist with the collection efforts being made on our uncollectible accounts. In FY 2012, an increased effort will continue to be made in the collection of loan receivables. The Accounts Receivable department will work closely with the Loan Department to assess the status of outstanding student loan receivables. Current collection procedures and laws will be reviewed to determine how best to handle these accounts. Accounts Receivable also plans to send staff members to some conferences/workshops that will assist with training in this arena. Retiree Benefits The Board of Regents has adopted a policy for University System schools to place all retirees on automatic bank draft in FY 2012. While Accounts Receivable will work with Human Resources to accomplish this with retirees, it is important to note that some will not be eligible due to being non-banked or having repetitive returns. At some time there was discussion about deducting the retiree benefit premiums from the retiree’s monthly retirement check; however, Accounts Receivable has no further updates at this time regarding this possibility. Accounts Receivable System It will be imperative to implement a new receivable system for campus-wide use in order to move forward in realizing efficiencies in collection efforts. Accounts Receivable has assisted Accounting as that department works with Collegiate Project Services to evaluate the health of the University’s financial systems and consider the best option for implementing a new system. Options being considered include rewriting an existing system, purchasing third-party software, or working with an open source code to write a new system. Accounts Receivable is hopeful that a decision will be made in the coming year so the direction will be known. The timing of this project will be interesting, as the Bursar’s Office and Student Accounts will already be involved in the planning phase for adopting Banner for their student records campus-wide solution. It will be important for Accounts Receivable to remain engaged with Accounting as the system’s needs are evaluated. Student Account Receivables In addition to programming needs, the Bursar’s Office/Accounts Receivable staff has observed an increase in the number of return checks for payment on tuition and fees/student account balances over the past fiscal year as a means to avoid schedule cancelation. The Bursar’s Office has received approval to proceed with a second cancelation which is to begin in Fall 2011. It is important that students not receive grades without paying accounts in full; otherwise, due to the change in bankruptcy laws, it is unlikely that the University will ever be able to collect these funds. Historically, the University used to process a second cancelation and was able to avoid this situation upon the implementation of the student account system

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Statistical Information Below is the aged analysis as of June 30, 2011 for receivables maintained by the Accounts Receivable Department.

THE UNIVERSITY OF GEORGIA UNIVERSITY RECEIVABLES SUMMARY - AGED

ANALYSIS

June 30, 2011

TOTAL CURRENT 30-60 60-90 OVER

RECEIVABLES MONTH DAYS DAYS 90 DAYS

I. CURRENT FUNDS

A. EDUCATIONAL AND GENERAL

1. RESIDENT INSTRUCTION

PHYSICAL PLANT $ 206,305.65 $ 158,340.80 $ 12,380.88 $ 5,837.00 $ 29,746.97

BUSINESS SERVICES 5,822.96 5,275.60 5.12 542.24 0.00

OTHER SALES AND SERVICES 2,352,046.41 2,122,869.20 34,802.42 14,319.37 180,055.42

RETURNED CHECKS 16,396.32 3,447.91 115.00 528.96 12,304.45

RETURNED CHECKS SERVICE CHARGE 1,830.11 241.75 60.00 180.00 1,348.36

2. COOPERATIVE EXTENTION SERIVCE

OTHER SALES AND SERVICES 0.00 0.00 0.00 0.00 0.00

2. MARINE EXTENSION

OTHER SALES AND SERVICES 0.00 0.00 0.00 0.00 0.00

3. VETERINARY TEACHING HOSPITAL

VETERINARY CLINIC 267,673.75 38,427.12 6,796.27 5,168.08 217,282.28

B. AUXILIARY ENTERPRISES

OTHER SALES AND SERVICES 0.00 0.00 0.00 0.00 0.00

TOTAL CURRENT FUNDS 2,850,075.20 2,328,602.38 54,159.69 26,575.65 440,737.48

TOTAL ACCOUNTS RECEIVABLE $ 2,850,075.20 $ 2,328,602.38 $ 54,159.69 $ 26,575.65 $ 440,737.48

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Exhibits summarizing statistical data are presented on the following pages: Exhibit 1 - Accounts Receivable Collection Period FY 2010 Exhibit 2 - Accounts Receivables as of June 30, 2010 Exhibit 3 - Other Receivables as of June 30, 2010 Exhibit 4 - Accounts Receivables Turnover Exhibit 5 - Student Accounts Receivables as of June 30, 2010 Organization Chart

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EXHIBIT 1

EXHIBIT 2

-

10

20

30

40

50

60

StudentAccount

Benefits Vet Clinic Non StudentRtn Items

Days

A/R Avg Collection PeriodFY11

CURRENT MONTH

76%

30-60 DAYS2%

60-90 DAYS2%

OVER 90 DAYS20%

A/R Accounts as of June 30, 2011Benefits, Vet, and Non Student Return Items

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EXHIBIT 3

EXHIBIT 4

CURRENT MONTH

92%

30-60 DAYS2%

60-90 DAYS0%

OVER 90 DAYS

6%

Other Receivables as of June 30, 2011Other A/R accts including A/R manual billings

-

5

10

15

20

25

30

35

40

45

StudentAccount

Benefits Vet Clinic Non StudentRtn Items

Tu

rno

ver

A/R Turnover

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EXHIBIT 5

CURRENT MONTH

69%

30-60 DAYS9%

60-90 DAYS2%

OVER 90 DAYS20%

Student Accounts Receivable at June 30, 2011

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Assistant BursarTherese Hodges

BURSAR’S DIVISIONACCOUNTS RECEIVABLEORGANIZATION CHART

Sr. Accounting TechAnn Smith

Senior AccountantSusan Caldwell

Loan Collection Officer IILena Anglin

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