Policy 701 Accounts Recievable

Working document, draft changes

Adopted by: 9/15/04 Reviewed: 1/12
Developed by: HR Reviewed by:
Contact Person: Revised by: HR 2/2012
POLICY 701 ACCOUNTS RECEIVABLE
I. PURPOSE
This policy outlines the procedures for collection of tuition, child care bills, lunch accounts and for the processing of worthless checks.
II. GENERAL STATEMENT OF POLICY
Every effort is made to collect tuition payments/child care bills and to recover the amount due for worthless checks before remitting to a collection agency.
GUIDELINES 701 ACCOUNTS RECEIVABLE
I. DEFINITION
 Bills for tuition are mailed on the 25th of the month and are considered due by the 10th of the month.
 Bills for child care are mailed by the 5th and due by the 20th of the month.
 Worthless checks are considered worthless due to insufficient funds or an overdraft.
II. PAST DUE LETTERS AND COLLECTION PROCEDURES
A. Past Due Notice
In the event a bill remains unpaid after the due date, the office staff will send a reminder letter informing the student’s parent or guardian of the amount past due, the due date, and the expectation of payment on the next business day.
B. 15-Day Past Due Notice
In the event a bill remains unpaid 15 days after the due date, a reminder letter signed by the Head of School will notify the student’s parent or guardian by letter of the amount past due, the due date, and the fact that the obligation has not been paid. The letter will also invite the parent or guardian to contact the office to arrange a payment schedule within 10 days. The letter will also inform the parent that continued failure to pay the past due amount MAY result in removal of the child from school and/or referral of the matter to a collection agency.
C. 30-Day Past Due Notice
In the event a bill remains unpaid after 30 days and in the absence of a payment schedule, the Head of School or designated staff member:
1. Will notify the parent or guardian to discuss the dismissal of his/her child from Children’s House or child care service.
2. Upon approval of the Head of Schools the child or children may be dismissed from the Children’s House or denied child care services.
3. Will send the bill and applicable collection fees to a collection agency.
III. WORTHLESS CHECKS
When Bluffview receives a check returned from the bank due to insufficient funds the school will notify the parent to make the check good or collection procedures as defined above will be followed.


IV. LUNCH ACCOUNTS
1. Students need to maintain positive balances in their lunch accounts.
2. Notices of account balances are sent home weekly.
3. If the account balances is below zero, students will be offered a sandwich and milk until the account balance is positive.