Procedure 5.10.01

Part 1. Purpose

To ensure an efficient and effective collection of all debts owed to the College.

Part 2. Types of Accounts Receivable

Application Fees: An application fee is assessed to each student record when the admission transaction is completed by the Admissions Department.

College Store Purchases: Approved students with financial aid, scholarships, and third-party funding sources may charge books, supplies, course materials, parking, and prepaid bus passes from the campus bookstore. Bookstore personnel verify funding as appropriate and obtain student authorization as acknowledgement of debt.

Continuing Education: Charges are generated for open enrollment courses through the automated registration process. Students acknowledge financial responsibility at the time of registration. Responsibilities are divided between Continuing Education and Business Office as appropriate.

Course Fees: Charges are generated through the automated registration process. Students acknowledge financial responsibility at the time of registration. Responsibilities are divided between Academic Affairs, Records Department, and Business Office as appropriate.

Customized Training: Income Contracts are generated in the enterprise resource planning system (ERP) by Continuing Education / Customized Training and invoiced by the Business Office. The invoice is generated and mailed by Business Office billings personnel.

Grants: The Grants Manager (Principal Investigator or Business Office) forwards appropriate documentation to the Business Office accompanied by a Request for Invoice form. The Business Office generates an invoice and completes billing activity.

Late Fees: The Business Office posts late fees to student accounts per college Policy 5.05 Tuition and Fees. The Business Office posts charges to student accounts.

Non-student Charges: The Business Office invoices all non-student charges for services or products. The requesting party is required to forward copies of appropriate documentation and a Request for Invoice form to the Business Office. Examples of charges include but are not limited to facility rental, event management, equipment rentals, parking fees, and printing services.

Service Fees: Charges tied to a specific course are automatically assessed to a student account per registration transaction. The Business Office posts transactions for specific services requested by a student (e.g. Check Stop Payment Fees, Transcript Fees, Student ID Fees).

Part 3. Collection Activities

The Vice President of Finance and Operations will designate staff to follow a structured timetable for collection activities including billing intervals, record holds, past-due notices, and referrals to collection agencies. All collection activity undertaken for each account should be documented in the ERP.

The approved procedures for billing and collection activities are as follows:

Student Fee Statements: Fee statements are available via the student portal and hard copies can be printed/mailed on request.

Drop for Non-Payment: The College reserves the right to drop students for non-payment at the start of each term. The Business Office, Financial Aid Office, and Records Department work together to complete this process.

Business Office Holds: The Business Office places holds on student accounts with past due balances above $500 and not at collections to ensure collections and reduce exposure to additional uncollectible revenue. Students with Business Office Holds may not receive a transcript nor register for additional courses at the College.

Collection Letters: The Business Office emails periodic notifications to students of past due balances, including a Dunning email.

Collection Statutory 20-Day Notification: The Business Office mails the required notification letter (State of Minnesota Statute 16D.11) to all students who owe a balance at the end of the term. This letter alerts the student they will be referred to a collection agency for collection if payment is not received within 20 days.

Collection Agency Submission: The Business Office calculates and submits unpaid student balances to the appropriate collection agency for collections. Student records are flagged in the ERP and all invoicing from the College is stopped.

Revenue Recapture: The Minnesota Department of Revenue (MDOR) files a Revenue Recapture claim for each referred student on behalf of the College. Unpaid balances returned to the College by MDOR should be referred directly to Revenue Recapture as appropriate.

Invoices: The Business Office provides invoices to non-college groups for charges incurred, third-party billings, grants, and Customized Training Income Contracts throughout the fiscal year. Reminders and past due notices are sent as necessary until receivable is collected. Non-college groups that fail to respond to collection notices will be referred to collections as required by State of Minnesota Statute 16D.11. The one exception is other State of Minnesota Agencies.

Accounts Receivable Aging: Minneapolis College’s Business Office prepares an aging of all accounts receivable amounts and reviews collection trends annually.

Part 4. Waivers, Refunds, and Writing-Off Uncollectible Accounts

The College will periodically, but no less than annually, write off accounts receivable deemed to be uncollectible in the ERP. Uncollectible accounts are no longer recognized as accounts receivable for management and financial reporting purposes.

The College will cancel or adjust accounts receivable if appropriate. An accounts receivable may be canceled or adjusted because the institution is not entitled to collect the money, or because the debtor qualifies for a waiver or refund (College Policy 5.08 Tuition and Fees). An accounts receivable may not be canceled to avoid write-off procedures.

The approved procedures for waivers, refunds, and writing off uncollectible accounts are as follows:

Employee Waivers:

Employee Tuition Waivers are approved by Human Resources and posted in the ERP by the Business Office. Qualifying Minnesota State Colleges and Universities employees may request Employee Tuition Waivers per the conditions outlined in their Bargaining Unit Contract.

Petition for Refund:

Minnesota State Colleges and Universities Board of Trustee Policy 5.12 allows refunds of tuition and fees for situations involving College Error, Significant Personal Circumstances, Medical Condition, and Death of Student. See College Policy 5.06 for further information.

The Business Office approves and processes Petitions for Refund. The Financial Aid Office and Records Department are consulted for specific information relating to the petition. The appropriate dean or vice president is consulted in cases involving college errors.

Allowance for Doubtful Accounts:

Minneapolis College’s Business Office will calculate an Allowance for Doubtful Accounts each fiscal year for financial reporting purposes.

Write-Offs:

The Business Office will periodically, but no less than annually, write off accounts receivable deemed to be uncollectible. Designated staff will prepare a list of accounts identified for write-off. The Vice President of Finance and Operations will approve the write-offs and designate staff to complete the entries.

A debt is considered uncollectible when it meets one of the following criteria:

1. All reasonable collection efforts have been exhausted.
2. The cost of further collection action will exceed the amount recovered.
3. The debt is legally without merit or cannot be substantiated by evidence.
4. The debtor cannot be located.
5. The available assets or income, (current or anticipated), are insufficient.
6. The debt was discharged in bankruptcy.
7. The applicable statute of limitations for collection of the debt has expired.
8. It is not in the public interest to pursue collection of the debt.
9. The debt has been compromised, in the best interests of the State.

Determining that the debt is uncollectible does not cancel the legal obligation of the debtor to pay the debt, except as under criteria 3, 6 and 9 of this list.

Reinstating Previously Written Off Receivables:

The College will accept payment for accounts receivable previously written off. The Director of Finance will designate staff to reinstate the previously written-off accounts receivable in the Minnesota State Colleges and Universities ERP system to record the payment and deposit funds to the appropriate accounts.

Owner(s) Title: Vice President of Finance and Operations

Date of Adoption: 12/27/2005

Date of Implementation (if different from adoption date): Changes approved on 12/13/2023 will be implemented with the approval of the full revisions of the College’s finance section in May 2025.

Date Last Reviewed: 5/1/2025 (Limited Review)

History and Subject of Revisions: 5/1/2025 (Limited Review), 12/13/2023 (Comprehensive Review. Part of revisions across all finance policies. Substantive changes throughout. Streamlined wording, combined content from other policies, updated information to more accurately reflect practices.), 1/3/2019 (Non-substantive changes), 12/27/2005 (Adopted)

Regulatory Authority (e.g. Minnesota State policy, federal or state law): State of Minnesota Statute 16D.11; Minnesota State Colleges and Universities Board of Trustee Policy 5.12