| 1. |
Policy |
| 1.1 |
All commercially practical means will be taken to recover outstanding debt due to the University. The Director, Financial Services will be responsible for ensuring that debt recovery action is taken where necessary. |
| 1.2 |
Debt may be referred to the University's debt collection agency and legal action may be taken to recover outstanding debt. Costs incurred by the University through the use of its debt collection agency may be added to the value of the outstanding debt being recovered. |
| 1.3 |
Debt will only be written off when eh reasonable attempts at recovery have been undertaken. The Director, Financial Services will determine whether to recommend that a debt be written off. Resources Committee approval is required for the write off of a debt over $5,000. The Executive Director of Administration is authorised to approve debt write off for amounts up to and including $5,000. |
| 1.4 |
The University may enter into debt repayment installment plants when this is deemed to be appropriate by the Director, Financial Services or the Manager, Enrolment and Student Finance or the Cashier's Supervisor, in the case of a Student Loan. |
| 1.5 |
The University will not provide goods or services to a defaulting debtor. |
1.6
|
The University's periodic financial report provided to Resources Committee will include summary level debt reporting. |
2.
2.1 |
Risks and Controls
The following risks related to outstanding debt need to be managed:
(a) loss of revenue to the University in the event of non-payment of debt
(b) reduced investment revenue to the University due to delayed receipt of funds
(c) increased administrative workload related to debt recovery
The following controls will be put in place to manage the risks associated with outstanding debt:
(a) invoicing of debtors will be conducted in a timely manner
(b) follow up of debts will be conducted in a timely manner
(c) payment arrangements will be negotiated where appropriate
(d) the University's debt collection agency and legal action will be used where appropriate
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3.
3.1 |
Procedures
Student Debt
3.1.1 Provisions relating to student debt are set out in the Students with Outstanding Debt Policy. Student Finance will ensure that invoices relating to student debt are issued in a timely manner. Student Finance is responsible for the follow up of outstanding student debt, including from sponsors.
3.1.2 Follow up of sponsor debt will occur on an at least monthly basis after the census date. Where debts are unpaid for more than 120 days after the due date, the matter will be referred to the Director, Financial Services. Following this, provision set out below in 3.2.3 to 3.2.5 will apply.
3.1.3 Student Finance will provide regular reports to the Director, Financial Services regarding student debt. This will include sponsor debt.
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| 3.2 |
Sundry Debtors
3.2.1 An invoice will be issued as soon as practicable in accordance with contract conditions or other arrangements.
3.2.2 If a debt is unpaid one month after the due date, a statement will be issued, which will include copies of any invoices for over $50,000. Statements will be issued on a monthly basis until the debt has been paid in full. Additional follow up action will be taken when deemed appropriate.
3.2.3 Further contact with the debtor will be made prior to a decision being taken to refer the debt for debt collection and/or legal action.
3.2.4 Where information is received that payment of the debt is doubtful, a doubtful debt expense and provision will be activated in the relevant University account. In any event, where debts are unpaid for more than 120 days after the due date, a doubtful debt expense and provision will be activated in the relevant University account.
3.2.5. In cases where a decision is taken to refer the debt for debt collection and/or legal action, the person responsible for the relevant University account will be informed.
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| 3.3 |
Debt Write Off
3.3.1 Debt will be reviewed by the Director Financial Services for write off at least annually and recommendations will be prepared in sufficient time for write off to be approved prior to year end.
3.3.2 The relevant Cost Centre is responsible for covering any deficit that may arise as a result of a debt write off.
3.3.3 In cases where a student debt is written off, the sanctions set out in the Students with Outstanding Debt Policy will remain in place until the debt is paid.
3.3.4 Debt recovery action may be reinstated for debts which have been written off if this is deemed appropriate by the Director, Financial Services.
3.3.5 A register of debts which have been written
off will be maintained by the Accounts Supervisor, or nominee. The
register will record the details of the debt, the authority
for write off and any subsequent action to re-instate the
debt.
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