Policy 5.10

Part 1. Purpose

To ensure the careful management and effective collection of all debts owed to the College.

Part 2. Definitions

The following definitions apply to this policy and its supporting procedures:

Accounts Receivable: Any obligation arising from a consumer transaction. Accounts receivables are the result of various types of financial transactions including but not limited to student tuition, fees, personal service fees, library and parking fines, short term loans, continuing education open enrollment courses, customized training, reimbursement method grants as well as from sales of products and services.

Account Cancellation: An account that has been canceled or adjusted because the College is not entitled to collect the money.

Account Write-offs: Accounts receivable that have been deemed to be uncollectable.  A write-off does not eliminate the legal obligation to pay.

Debt: All amounts owed to the College including but not limited to debts for tuition, fees, loans, sales of goods and services.

Debtor: An individual, business, non-profit organization, or any other public or private entity, including a state, local, or federal government, or an Indian tribe, that is liable for a debt or against whom there is a claim for a debt.

Minnesota Department of Revenue Collections: A division within the Minnesota Department of Revenue, Minnesota Department of Revenue Collections is a state-run collection management service. As required by State of Minnesota Statute 16D.04, sub. 2, accounts receivable must be referred to Minnesota Department of Revenue Collections for collection.

Student: An individual is considered a student once the Admissions Department has processed their Application for Admission. Additionally, individuals who register for non-credit courses offered by the College are considered students. (Open item:  visiting students – does this definition encompass visiting students.

Part 3. Management of Accounts Receivable

All accounts receivable activities must be documented and, as appropriate, recorded in the Minnesota State enterprise resource planning system (ERP). The student or other debtor must acknowledge the debt at the time an account is created. The acknowledgment must be either in writing or, with automated registration processes, by a positive action that indicates that the debtor is accepting the terms and conditions for payment. The receivable must be entered into the ERP at the time the amount is first established or within a reasonable period afterwards.

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

Date of Adoption: 12/27/2005

Date of Implementation (if different from adoption date): The revisions approved on 12/13/2023 will be implemented with all other financial policy revisions once the final one was approved May 2025.

Date Last Amended: 5/1/2025 (Limited)

History and Subject of Revisions: 5/1/2025 (Limited Review), 12/13/2023 (Comprehensive Review. Substantive changes. Renamed policy. Removed Authority section. Removed collection activity, writing off uncollectable accounts, and restoring previously written accounts receivables sections due to redundancy with system policy. Refined wording moved language elsewhere), 1/3/2019 (non-substantive changes), 12/27/2005 (Adopted)

Regulatory Authority (e.g. Minnesota State policy, federal or state law): MN Statute 16D.04, sub. 2