646  Collection of Accounts Receivable

Approved by President
Effective Date: September 13, 2018
Responsible Division: Business and Finance
Responsible Office:  Business and Finance
Responsible Officer:  Associate Vice President, Business and Finance

I. Purpose

This policy establishes the process regarding collection of accounts receivable at Middle Tennessee State University (MTSU or University).

II. Definition

Disposable earnings. That part of the earnings of an individual remaining after the deduction from those earnings of any amounts required by law to be withheld.

III. General

A.  This policy applies to the collection of all accounts and notes receivable by MTSU. The University shall, to the maximum extent practicable, require payment in advance for all services and goods, to avoid the creation of receivables.

1.  MTSU Policy on the Payment of Fees. Policy 640 Payment of Student Fees and Enrollment of Students requires, with limited exceptions, that all assessed fees be paid in advance by a student before he/she is considered enrolled for any academic term.

2.  Types of Receivables. Accounts and notes receivable may be generated from programs and activities including, but not limited to:

a.  Student loan programs;

b.  Traffic and parking fines;

c.  Library fines;

d.  Bad checks;

e.  Contracts;

f.  Property rental; 

g.  Damage, loss, or liability to the institution by others; and 

h.  Financial aid adjustments.

3.  Security Deposits. The University is authorized to require any person to post a deposit or security bond, or provide appropriate insurance, to offset potential obligations to the University arising from programs or activities.

4.  Statute of Limitations. Pursuant to T.C.A. § 28-1-113, there is no time limit on the University’s authority to collect receivables, unless otherwise expressly provided by statute.

IV. General Collection Procedures

A.  Billing. Collection efforts should begin no later than thirty (30) days after the obligation has been incurred, or other fixed due date.

1.  The University may negotiate alternative payment arrangements with debtors when such arrangements offer the best prospect of collecting the debt.

2.  An account becomes delinquent based on payment criteria established by the University for the type of debt involved.

3.  Debts from students are classified as delinquent once a student fails to enroll in a subsequent fall or spring semester, where the provisions of the record holds, in Section IV.D. below, apply. Other types of debt become delinquent based on the contract or other terms of agreement.