IV:04:14 Collections from Employees

Amounts due from employees are recorded as receivables for traffic tickets issued, bad checks returned by the bank, and other reasons. An employee may also owe the University for a loan or other receivable incurred while a student here.

I. STUDENT LOANS

Employees are expected to repay their student loans promptly when due. Amounts overdue will be considered employee receivables and are covered by this policy.

II. BAD CHECKS

An employee's check made payable to the University which is subsequently dishonored by the bank must be made good by the employee immediately. The University Bursar's Office will notify the employee by letter when a check is returned. If two checks are returned for an employee within a twelve month period, notice will be given to all appropriate offices that check cashing privileges are no longer available on campus for the employee for a period of one year. After three checks have been returned, the employee is notified by letter and permanent notice is given that check cashing privileges are no longer available. Refer to Section V (Collections) of this policy for collection procedures.

III. TRAFFIC TICKETS

Employees who receive traffic tickets which they think should be voided may appeal to the University Traffic Committee for a decision. The University Traffic Committee has authority to recommend to Parking Services that a ticket written to an employee be voided.

IV. RECORDING OF RECEIVABLES

Information on all identified receivables is entered into the accounting records daily. Invoices are prepared soon after the end of each month for all recorded receivables and provided to the appropriate employees.

V. COLLECTIONS

A. After an employee has been notified of an outstanding balance, a notice of intent to withhold is sent to the employee by registered or certified mail, or personally delivered. The notice informs the employee of the amount alleged to be owed and specifies the employee may elect to pay the debt in full, authorize the amount to be withheld from his/her paycheck, or contest the intent to withhold through an institutional or Tennessee Uniform Administrative Procedures Act (TUAPA) hearing. The employee has 15 calendar days to notify the Business Office, in writing, of his/her intent.

B. Collection of travel advances is covered in MTSU Policy IV:04:09 Comprehensive Travel Regulations.

VI. LIMITATIONS

Deductions will not exceed state garnishment laws.

Revisions: November 4, 1980; April 7, 1983; July 21, 2005; March 4, 2011.

Cross-references: MTSU Policy IV:04:09 Comprehensive Travel Regulations