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Cash Management Plan

Controller's Office Policy CO 02 10

Statutory Policy

North Carolina law, Chapter 147-86.10 of the General Statutes, requires that "all agencies, institutions, departments, bureaus, boards, commissions and officers of the State...shall devise techniques and procedures for the receipt, deposit and disbursement of moneys coming into their control and custody which are designed to maximize interest-bearing investment of cash and to minimize idle and nonproductive cash balances."

Plan Administration

The State Controller, with the advice and assistance of the State Treasurer, the State Budget Officer, and the State Auditor, is charged with developing and implementing a uniform statewide plan to carry out the cash management policy for all State agencies, departments, and institutions. This Statewide Cash Management Plan outlines the policies, duties, responsibilities, and requirements for cash management within State government on a broad basis. �鶹���� (�鶹����P) Controller, who reports directly to the Senior Associate Vice Chancellor of Finance, with advice and assistance of the Office of the State Controller and State Auditor has the responsibility to prepare a cash management plan that meets both the requirements of the Statewide Plan and the unique cash management needs of the �鶹����P. The plan will be submitted to the Office of the State Controller for approval. The State Auditor, as a part of the annual financial audit, will determine if the University of North Carolina at Pembroke is in compliance with the Statewide Cash Management Plan.

Plan Requirements

Cash Management over Receipts:

The objectives of cash management over receipts are to use diligence in collecting funds owed to the State, to provide internal control over cash and cash equivalents, and to expedite the movement of monies collected into interest bearing accounts. To accomplish these objectives, all plans adopted will include these rules:

1. Except as otherwise provided by law, all funds belonging to the State of North Carolina, and received by an employee of the State in the normal course of their employment shall be deposited as follows:

    

   1. All monies received shall be deposited with the State Treasurer pursuant to G.S. 147-77 and G.S. 147-69.1.
   2. Monies received in trust for specific beneficiaries for whom the employee-custodian has a duty to invest shall be deposited with the State Treasurer under the provisions of G.S. 147-69.3

2. Monies received shall be deposited daily in the form and amounts received, except as otherwise required by law.

The University cashier’s office is the central depository and the office of record for all University receipts.  Due diligence is exercised for proper receipting of University monies to ensure accuracy, timeliness and adherence to University and State guidelines pursuant to G.S. 147-77.  Internal control policies are followed to ensure proper practices are employed throughout the University including receipting privileges, official endorsement and safeguarding of monies. 

Cash reports are provided to the cashier’s office to help receipt the funds to the correct fund and account.  The daily deposit time at local banks is 2 P.M.  Any deposits to the State Treasurer’s accounts at a bank must be deposited by 2 P.M. and appropriately certified.  Moneys received after 2 P.M. must be safeguarded overnight.  Suggested methods of safeguarding are putting the money in a safe or in a cabinet or desk that is locked for that night.  Any department that receipts money at a satellite location/non cashier’s office must make deposits weekly if their collected receipts do not exceed $150. 

Departments that accept credit card payments must do a deposit daily.  All credit card sales made before 3:00 PM must be closed out and included on that day’s deposit.  Any credit card sales made after 3:00 PM will be included in the next business day’s deposit.

Any checks received via U.S Mail are receipted into the cashiering system once they arrive.  They are subsequently scanned and added to the check register log.

A processing fee of $25 is charged for each returned check.  When a check has been charged back to �鶹����P, a letter notifies the maker of the check that they must pay the face amount of the check plus the service charge within a specified time frame.

In accordance with the Office of the State Controller (OSC), Cash Management Control System (CMCS) and University policy, electronic wire receipts from outside sources are processed within daily deposit rules, included in certifications of deposit and recorded in University ledgers upon receipt.

When monies are deposited in error, one of the following is done: 

• If the error is found in the same month and involves only one bank account, a receipt correction will be made by debiting the monies out of the incorrect fund and crediting the appropriate fund.
• If the error is found after the month it was originally receipted in, a journal entry is done rather than a receipt correction.
• If funds are deposited in the wrong bank account at any time, the receipt is charged to the bank clearing fund and a transfer of funds will be executed via CMCS.

Funds received in advance for future academic terms are receipted to a “Funds Held” account, a temporary holding account, until funds can be receipted to the appropriate term.

A system of internal control is maintained by periodic unannounced cash counts, providing methods of secure handling of monies, and segregation of duties.

Cash Management of Receipts and Billing:

3.  Monies due to a State agency, department or institution from other governmental agencies or from private persons shall be promptly billed, collected, and deposited.  All agencies, departments, and institutions will establish accounts receivable management policies and procedures.  These policies and procedures will incorporate the statewide accounts receivable policies and procedures ( ), in accordance with G.S. 147-86.21, and be included as a part of the University’s cash management plan. 

Periodic emails notifying students that a balance is due are designed to maximize collections within the enrollment periods while ensuring that no student having an outstanding past due account is allowed to enroll for the next term or receive a diploma, or transcript.

The University’s account receivables are interfaced with the general ledger system, aged in accordance with OSC’s requirement and properly accounted for when estimating doubtful accounts and subsequently written off when deemed uncollectible.

The University incorporates the statewide accounts receivable procedures, in accordance with G.S.  147-86.21 for collection of receivables, employee debts, overpayments and miscellaneous billings.  The University collection policy incorporates all cost effective and appropriate actions to collect accounts receivable.  Past due billings are turned over to the Attorney General’s office, collection agencies, and/or Department of Revenue for setoff debt collection once the account is in arrears greater than 60 days.  The University will use skip tracing services to aid in student collections.

In accordance with G.S. 147-86.23, the University charges interest at the rate established pursuant to G.S. 105 241.21 on a past due account receivable from the date the receivable was due until paid.  The University adds a late payment penalty to a past due account receivable of no more than ten (10%) of the account receivable.  The Department of Revenue provides the current interest rate being charged.  The University policy is located at  .

Billing Procedures

4. Unpaid billings, of $50 or greater, due to the University shall be turned over to the Attorney General for collection no more than 60 days after the due date of the billing.  The University may handle these unpaid bills pursuant to the debt collection procedures identified in the previous item.

At the completion of registration for each upcoming term, bills are generated and electronically sent to registered students and authorized users.  The billing packet includes costs for the registered period, date the payment is due and additional information pertinent to the term of enrollment.  New students who fail to make payment are dropped from the semester after several attempts have been made to contact them.  Enrolled students and former students who have not met their payment obligations have holds applied to their student account which denies other services from being performed until payment is made.  After unsuccessful attempts to collect the payment, collection procedures are implemented.

Additional collection techniques are used as accounts become aged in delinquency.  Those techniques are referrals to the N.C. Attorney General’s Office; issuance of University promissory notes; additional billing; and referrals to the N.C. Department of Revenue Setoff Unit as well as state contracted Collection Agencies.  Accounts referred to the Attorney General’s Office must be $50 or greater and have a delinquency greater than 60 days.  University promissory notes involve working with debtors negotiating repayment plans to satisfy the indebtedness prior to being submitted to a collection agency.  A schedule of payments is provided to the debtor.

N.C Department of Revenue Setoff Unit referrals are entered at least monthly.  However, during the first four months of the year referrals are submitted bi-weekly.  Claim listings are sent to the University from the Setoff Unit and are receipted to a clearing account until the required 30 days appeal process.  Debtors are sent a letter from the University advising them of the debt and they have 30 days to contest the claim in writing or in appearance.  In order to recover the costs incurred in setting off funds against Setoff Program Agency debts, G.S. 105 A-13 allows the Department of Revenue to charge a fee.  The fee is deducted from the debtor’s income tax refund and the remaining refund is applied against their debt.

After all attempts to collect the debt have failed and the account has become aged, the Bursar will review the accounts and deem those accounts uncollectible.  The uncollectible accounts are written off prior to the close of the fiscal year.

5. Federal funds received for major federal assistance programs that are governed by the Cash Management Improvement Act of 1990, must be drawn in accordance with the current State/Federal Agreement.  Funds are drawn down to minimize the time elapsing between the transfer of funds from the United States Treasury and the disbursement of funds.  Funds are deposited with the State Treasurer when received within one business day.  Such funds are separately maintained and identified in the funds of the University as Federal Funds.

6.  All federal fund draws should be timed so that funds are on deposit with the State Treasurer no more than two business days prior to the disbursement.  Federal funds are drawn on a reimbursable basis.  Requests for funds are completed via internet.  When funds are received, the bank calls to inform the Grants Accountant that the requisitioned funds have been deposited.  The Grants Accountant then informs the cashiers of the incoming deposit and the funds are receipted to the appropriate accounts.  The bank will fax a copy of the deposit received so the University will have the proper documentation.

7. State Agencies shall accept electronic payments (credit/debit cards [merchant cards] and electronic fund transfer (EFT)), in accordance with G.S. 147-86.22, to the maximum extent possible and consistent with sound business practices.  The University must submit a business plan to the State Controller for evaluation prior to the acceptance of electronic payments.  The University utilizes the Master Service Agreement (MSA) for electronic payment processing.  Policies and procedures are established to facilitate the use of electronic payments.  These policies and procedures incorporate the statewide electronic payment policies and procedures ( ) and included as a part of the University’s cash management plan. 

The processing of a payment by credit/debit card shall be no slower than the processing of payment by check for the actual deposit of funds to a state account.  All monies received shall be deposited with the State Treasurer pursuant to G.S. 147-77 and G.S 147-77 69.1.

All credit card transactions must be settled daily (except for weekends and banking holidays).  This daily settlement requirement includes University breaks and extended holidays.  Weekend transactions must be settled Monday morning. 

The University accepts Visa and MasterCard credit cards, certifies deposits when received at the Department of State Treasurer and utilizes a separate bank account to facilitate timely processing and certification.  The University accepts payments via credit and debit cards with the use of internet applications for student payments of tuition, fees and charges.  The University utilizes the electronic funds transfer services with SunTrust Bank for merchant card services acquired through the State Controller’s Master Service Agreement (MSA).  Departments cannot negotiate their own contracts with credit card processing companies.  All merchant accounts for accepting credit cards must be approved by the Bursar and participate in the State’s MSA.

The cost of the services secured through the MSA for outbound electronic transfers are paid with University’s institutional funds for all non-payroll transactions.  The University reserves the right to charge transaction fees for electronic inbound credit card transactions, however, at this time, no fees are being charged.  Transaction fees for student online payments are retained by the third-party vendor (TouchNet) and are not received by the University. 

The University adheres to appropriate security and privacy requirements and complies with all general statutes for timely completion of security assessments as required by OSC and with the Payment Card Industry (PCI-DSS).  PCI-DSS are national standards from the Card Association and apply to all organizations anywhere in the country that process, transmit or store credit cardholder information.  The University and all departments that process payment card data have a contractual obligation to adhere to the PCI-DSS and for annually certifying their continued compliance by submitting the PCI-DSS Self-Assessment Questionnaire (SAQ) appropriate to their credit card activities.  All computer security measures which include physical security, logical application controls, transmission security and firewall utilization have been met.  Individual credit card information is confidential.  Failure to maintain strict controls over this data could result in unauthorized use of credit card data. 

For merchant card transactions and electronic funds transfers, the owner’s data is stored and protected in accordance with industry standards. No account information is disclosed and available only to administrative staff as part of their job responsibilities.  �鶹����P does not receive any owner data, owner’s data is stored with our third party payment processor.  For point of sale transactions, the University adheres to both applicable State law (G.S. 14-113.24) and the Payment Card Industry Security Standards pertaining to printing of account numbers and expiration dates of cards on the cardholder’s copy.  The receipt only prints the last four digits of the account number.  Merchant card approval is received electronically in real time.

Inbound transactions, utilizing merchant cards as a method of payment through the web, generate a confirmation that the transaction has taken place by showing the account balance (student accounts) or providing an electronic confirmation to the user. 

Merchant credit card disputes are resolved by the University with the credit card user and with the assistance of the merchant card service provider.  All changes resulting from credit card disputes are supported by fully detailed information.

The University accepts Electronic Funds Transfers for authorized prepayments of inbound funds as established by the Office of the State Controller and receipted by University authorized CMCS users.  The funds are then properly certified.  The University is enrolled in the electronic fund transfer for drawdowns for federal agencies that allow funds to be received electronically.

In addition to adhering to these guidelines, University plans employ proven techniques, which improve cash handling.  Some of these techniques include:

• Reassignment of personnel, or the hiring of temporary personnel, when this proves cost effective, to accelerate the processing of remittances during peak periods.
• Utilization of cash concentration banks.
• The use of remittance processing equipment when justified by the volume of deposits.
• Establishing billing schedules which are both efficient and lead to earlier receipt of monies due to the State.
• Timing deposits in order to receive current day credit in accordance with schedules available from the State Treasurer.

Cash Management over Disbursements

The objective of managing disbursements is to maintain funds in interest-bearing accounts for the longest appropriate period of time. This allows the State to realize the maximum earning potential on its funds. This is not intended to encourage late payment or have a negative impact on relationships with firms who, in good faith, supply goods and services to the State. The following rules apply for cash management over disbursements:

1. Monies deposited with the State Treasurer remain on deposit with the State Treasurer until final disbursement to the ultimate payee.   The University disbursing accounts are protected by positive pay.  All Department of State Treasurer accounts are also protected by positive pay. 

2. Cash disbursements made through the University’s financial system, Banner, contain internal controls.  The first of which is the duplicate invoice verification process.  If the invoice has previously been entered into the system (by any payment method) the system will not accept it a second time. 

Cash disbursements are made according to vendor terms after proper approvals.  Data is entered and is held until the due date on the invoice.  Funds are requisitioned from the State Treasurer prior to the release of checks and as needed to cover disbursements.  Reports are analyzed prior to a check run to determine availability of funds.  Bond requisitions are approved once a week.  Requisitions on any check written using bond funds should be submitted by Thursday, no later than 11:00 A.M.  After requisitioning bond funds, the check must be written and mailed within hours.

All biweekly and monthly payrolls are prepared in accordance with University, State and Federal regulations and transfers to the respective disbursing and payroll deduction accounts are made on the due date for such payments.

Payroll disbursements are processed through the Automated Clearing House (ACH) for all employees with the exception of those individuals that did not provide bank account information in advance of the first check or termination pay for employees.  Employees that have not provided bank account information timely are issued a check.   The State of NC payroll disbursing account is also protected by positive pay.  

The University uses the State Controller’s Cash Management Control System (CMCS) for the requisition of funds to cover disbursements and for intra- and inter-agency transfers as directed by the State Controller and State Treasurer.  Funds equal to the amount of checks drawn daily are requested by 10 A.M the next business day.  The checks are released when notification is received the funds have been deposited. 

Both Bank 10 (Institutional funds) and Bank 3 (State Funds), must be reconciled each month.  The State Treasury account is solely comprised of State budgeted funds.  The disbursing technician only requisitions amounts that are actually spent each month.  In order to reconcile the State Treasury account to Banner, any outstanding deposits should be added to the balance of the month per the bank statement.  Any outstanding checks should be subtracted from it.  The institutional trust account is comprised of funds that are not State-budgeted funds.  These monies remain in a Short Term Investment Fund (STIF) account at the State Treasury.  The Institutional Trust account is reconciled to Banner each month by obtaining the balance per the bank statement, adding the outstanding deposits and transfers in, less outstanding checks and transfers out.  The grand total should agree with the balance per the General Ledger Group Summary Report.

3. As provided in Section 147-86.10, the order in which appropriations and other available resources are expended shall be subject to the provisions of the Executive Budget Act, G.S. 143-27, regardless of whether the State agency disbursing or expending the monies is subject to the Act.

4. Federal and other reimbursements of expenditures paid from State funds shall be paid immediately to the source of the State funds.

5. Billings to the State for goods received or services rendered shall be paid neither early nor late but on the discount date or the due date to the fullest extent practicable.

6. Disbursement cycles are established to the extent practicable so that the overall efficiency of the warrant disbursement system is maximized while maintaining prompt payment of bills due. In order to avoid disbursing account overdrafts, warrants will not be released before adequate funds have been requisitioned by the University and approved and deposited to the applicable disbursing account by the OSC.

The financial system does not produce warrants for invoices until the due date specified.  Time is allowed to sort and mail checks so vendors and others will receive University checks as payment becomes due.  Payments to the same payee are combined on one check.  Prior to mailing out warrants, the Disbursing Technician must verify that both the check and invoice are the same amount.  The verification process should also include ensuring the account number on the invoice is the same as the account number on the check.

7. Electronic Funds Transfer (EFT) should be used for certain payments between State and local units, vendors and employees when it is determined to be mutually beneficial to both parties.  The University utilizes EFT for certain payments between State and local units, vendors, and employees.  Transfers include payments for payroll direct deposits, payroll taxes, employee benefit programs, and intra-agency services.  Authorized users of CMCS, upon approval by the Controller, request EFT for payment of the obligation on the due date.  As a condition of employment, permanent employees are required to receive their pay as a direct deposit.  Student and temporary employees are strongly encouraged to have their pay direct deposited. 

8. State administered procurement cards are used to provide employees with food, lodging, and other applicable subsistence in emergency situations.  For OSC policy, refer to: ( )

9. “Delegation of Disbursing Authority” agreements are kept current. Regardless of whether changes have occurred since the last submission, “Delegation of Disbursing Authority” agreements are submitted annually for OSC approval.
   
    

Techniques helpful in controlling disbursements include:

1. Establishing special procedures for making large disbursements such as social security and federal withholding tax remittances to ensure that payment is made on the due date and not before.

2. Managing inventory and supply levels to stock the minimum necessary to conduct business without disruption.

Receipting/Depositing Collected Monies Policy

Controller's Office Policy CO 08 95

Purpose: Procedures for the receipting and depositing of collected monies to maintain Financial Control.

Scope: Applies to all employees or organizations acting on behalf of �鶹����.

Policy: All funds collected at locations outside the Cashier's Office, with the exception of �鶹����P approved receipting equipment currently in the Bookstore, GPAC, and University Center, shall be receipted by �鶹����P receipt books and deposited with the University Cashier's Office.

Procedures for the use of receipt books:

1. �鶹����P receipt books and endorsement stamps are issued to employees by the Cashier’s Office. The employee who is issued a receipt book will receive a copy of this policy and also sign a copy of the policy accepting personal responsibility for the receipt book and the collections until the receipt book is returned to, and the monies are receipted in, the Cashier's Office. If multiple books are needed, and sufficient justification is provided, the employee signing for the books will remain personally responsible for all books, regardless of who actually issues the receipts.

2. Money collected should be kept in a secure location and no personal checks shall be cashed out of or expenses paid from receipt money. Employees shall not commingle personal monies with receipt book monies.

3. Receipts must be completed with date, name of person paying, amount, what is being paid (fax, transcript, etc.) and the signature of the employee collecting the money. Receipts must be written in the receipt book so that all three parts of the treated receipts are completed at one time and are identical. The three-part receipts are distributed as follows:

(a) The white copy (original) is given to individual making payment.

(b) The pink copy is attached to the deposit form that is filed with the Cashier's validated receipt. Receipts are to remain in numerical order.

(c) The yellow copy remains attached in receipt book

4. Checks must be restrictively endorsed at the time of receipt using the stamps provided by the Cashier’s Office.

5. Credit Card receipts must be accompanied by credit card information. Payment by credit card shall be noted on the applicable receipts.

6. All 3 parts of voided receipts must be left in the receipt book -- white, pink, and yellow -- clearly marked VOID on all 3 parts with the signature of person voiding the receipt and the signature of the supervisor/advisor with a brief explanation. If the white copy is not with the voided pink and yellow copies, the department will be charged with a shortage for the amount of the receipt.

7. Receipts shall be deposited in the Cashier's Office at least weekly and no later than 3 p.m. on Friday. Any day that receipts consist of $150.00 or more in CASH (not including checks), a deposit must be made that day for all receipts. This procedure must be followed even if it requires deposits every day.

8. A completed deposit forms include date, fund and account numbers, amount, description of type of funds receipted (transcript, fax, etc.), total deposited, person making the deposit, comments if desired, ending receipt number from prior deposit, from and to receipt numbers covered by this deposit, and a breakdown of type of collections – total cash and checks with a subtotal before adding credit cards followed by a grand total.

9. Receipt books issued for special events will be returned when the deposit is made at the Cashier's Office, but no later than the first work day after the event. If an exception is needed, please request this in advance.

10. Receipt books/collections are subject to periodic audits by the Internal Auditor and the Office of State Auditor as well as the examination by the Cashier’s Office at the time of deposit and book return.

11. By �鶹����P Executive Order, the Controller is required to report non-compliance of any cash management policy to the appropriate vice chancellor, the Chancellor, and the Vice Chancellor for Business Affairs. This reporting will be by copy of an email sent to the employee not in compliance.

12. Certification of employee receiving �鶹����P receipt book:

Signature _________________________________

Date _________________________________

Get the Depoist Form here!

Returned Check Policy

Controller's Office Policy CO 89 01

Purpose: To explain the University's policy and procedures for returned checks

Scope: Applies to all University students, University employees, and non students

Policy: Collection of returned checks using State mandated due diligence

All returned checks will be forwarded to the Cashier's Office. Upon receiving a returned check, the Bursar will determine whether a student or non-student wrote the check and will have the check posted to the correct account. If the check was written by/for a student, it will be posted to the student account by social security number. If a non-student wrote the check, it will be posted to Non-Student Returned Checking using the ID #000-00-0001.

After the returned check has been posted, the cashier will redeposit those checks marked \"insufficient funds\" that have been returned by the bank.

When the check has been charged back to �鶹����P, the maker will be notified by letter that he or she must pay the face amount of the returned check as well as a $25 service charge for each returned check. If payment is not received within ten days, further action must be taken. A second letter is sent to the maker of the check informing him/her that unless the check is paid within ten days the matter will be turned over to the judicial process by signing a warrant.

A second returned check will result in the lost of check writing privileges for the remainder of the fiscal year. If the check is for/from a student, the maker of the check is also informed that administrative holds will be placed on his/her student account. The holds will prevent any future registration to the University and prevent issuance of any transcripts from the University. The student will be withdrawn from the University only at the direction/approval of the Vice Chancellor of Business Affairs. With the exception of State employees who are required by law to pay obligations to the State or be terminated from employment, when the returned check does not exceed $11.00 and the check is not for/from a student, collection efforts should not be taken beyond the initial letter to avoid mailing and other costs related to collecting small sums.

Claims for delinquent accounts will be filed through the provisions of the Set Off Debt Collection Act and State Employee Collection Act. A warrant could also be filed with the courthouse. After a warrant has been filed, payment will be accepted only from court officials. Returned checks are written off one year after warrants are issued.

A student with an unpaid balance at �鶹���� Pembroke will not be allowed to enroll for the next term. Current financial aid will not be used to pay prior semester balances.

For more information please refer to the following:

Student Account Collection Policy

Controller's Office Policy CO 07 08

1. Purpose

1.1 To ensure proper collection actions for a student that has incurred a debt with the university. �鶹���� must abide by the statewide accounts receivable program policies listed by the Office of the State Controller (OSC) and the Office of the Attorney General’s Collection Section.

2. Scope

2.1 Per NCGS §147-86.22 the State Controller, in conjunction with the Office of the Attorney General (OAG), shall establish policies and procedures to govern techniques for collection of accounts receivable. These techniques shall include use of credit reporting bureaus, judicial remedies authorized by law, and administrative setoff by a reduction of an individual’s tax refund pursuant to NCGS §105A, or a reduction of another payment, other than payroll, due from the State to a person to reduce or eliminate an accounts receivable that the person owes the State. For the purposes of this policy, �鶹���� Pembroke utilizes the websites for the North Carolina Department of Justice - Office of the Attorney General and the Office of the State Controller.

3. Policy 3.1 Accounts Receivable Collection Policy.

3.1.1 All accounts will go through the following procedure:

Age of Accounts	Account balances that are less than $10.00 will be written off based on state policies
1-30 days past due	Mail first past-due letter Electronic Bill Receive a promise to pay.
31-60 days past due	Mail second and final past-due letter Electronic Bill Refer to Attorney General's Office.
61 + days past due	Complete appropriate submittal forms and send to the Attorney General's Office, or the agency legal counsel. Refuse additional service to the delinquent debtor where this does not conflict with Federal and State laws. After 45 days from date sent to Attorney General’s Office, a decision will be made on how to proceed with account. Account may be assigned to a state contracted collection agency. At least twice a month a list will be submitted to the Department of Revenue for tax set off proceeding to satisfy the debt owed to the university.
	A student with an unpaid balance at �鶹���� Pembroke will not be allowed to enroll for the next term. Current financial aid will not be used to pay prior semester balances.

 

3.2 Interest and Late Fees

Accounts will be considered past due if the debt is remaining outside of the current semester and the student is not currently enrolled. According to the State of North Carolina General Statute 147-86.23, a state agency shall charge interest at the rate established pursuant to G.S. 105-241.1(i) on a past due account receivable from the date the account receivable was due until it is paid.  The late fee shall be 10% of the outstanding debt.

Interest shall begin to accrue on all delinquent accounts at the time the account was due and continue to accumulate until the delinquent portion of the account is satisfied.  The North Carolina Department of Revenue’s established current interest rates will be utilized for interest charges.

3.3 Disputing a Late Penalty and Interest

If you are charged the one-time late payment fee and interest and have extenuating circumstances that warrant a review of the fee and charge, a written appeal request along with supporting documentation may be submitted to the Bursar within 45 days.  Failure to dispute the penalty and late fee within the timeframe will be considered an acknowledgement by the student that they are aware of the fee and accept the charges.  Disputing a late fee does not guarantee that the fee will be removed.  Submitting a written request for removal only means that the penalty and fee is being disputed and that the Bursar will review the student’s account to assess the appeal validity.  If the Bursar deems the penalty and interest fees to be legitimate, the student will be required to pay it.

3.4 �鶹���� (�鶹����P) utilizes a third party vendor, AMS/SallieMae TuitionPay, for payment arrangements. This vendor will allow payment arrangements for current or future term balances.

3.5 For accounts that are to be assigned to a collection agency, the Student Account’s Office will allow a six (6) month payment arrangement. The student must sign a promissory note and the payments will be, at a minimum, the remaining balance divided into six equal payments with the first payment due the date of the payment arrangement.

4. Procedure

4.1 Office of the Attorney General’s Guidelines

4.1.1 The OAG is the primary agency responsible for the provision of all legal services and advice related to the collection of accounts receivable. For detailed procedures regarding submission of past-due accounts, please contact the OAG or the appropriate legal counsel.

4.1.2 Cash Management for the State [NCGS §147-86.11(e)(4)]. For monies received or to be received, the statewide and �鶹����P’s cash management plan shall provide at a minimum that unpaid billings due to a state agency shall be turned over to the Attorney General for collection no more than 60 days after the due date of the billing.

4.1.3 If, within the first 60 days, it is apparent that collection of an account will not be secured without legal assistance or that compromise of the claim is justified (i.e., a formal settlement is to be made by the OAG, with part of the debt paid and the remainder discharged), the account shall be forwarded immediately to the OAG or the appropriate agency legal counsel.

4.1.4 Where the debtor is paying a debt in periodic payments satisfactory to the agency, the account may be retained beyond 60 days, until the account is satisfied.

4.1.5 The debtor must be afforded thirty (30) days in which to repay the debt. All account receivables submitted for collection should be reviewed to ensure that the statute of limitations has not run. The statute of limitations will be three (3) years on most account receivables. If the promissory note or contract is “under seal” there is a ten (10) year statute of limitations. On federal loans (Perkins) there is no statute of limitations. Outstanding past due account receivables greater than $10 and less than $50 do not require additional collection procedures after the dunning letter process is complete and may be written off as approved by management in accordance with the university’s write off policy, documented as to justification and approved by management. Accounts equal to or greater than $50 should be reported to the Department of Revenue for Set Off and should be reported to the Attorney General’s office. The Attorney General’s office will advise the campus of next steps regarding collection of debt, such as write off, lawsuit, referral to a collections agency or other.

4.1.6 Pursuant to NCGS §75-55 and NCGS §58-70-115, once an account is turned over to a collection agency �鶹����P cannot charge the collection agency fee to a debtor. �鶹����P, however, may still charge the statutory rate of interest and the late penalty fees to the debtor.  4.2 Setoff Debt Collection Act/Tax Setoff

4.2.1 Mandatory State Usage [NCGS §105A-3(b)]. A State agency must submit a debt owed to it for collection under this Chapter unless the State Controller has waived this requirement or the State agency has determined that the validity of the debt is legitimately in dispute, an alternative means of collection is pending and believed to be adequate, or such a collection attempt would result in a loss of federal funds. The State Controller may waive the requirement for a State agency, other than the Department of Health and Human Services or a county acting on behalf of that department, to submit a debt owed to it for collection under this Chapter if the State Controller finds that collection by this means would not be practical or cost effective. A waiver may apply to all debts owed a State agency or a type of debt owed a State agency. The Collection Section will submit debtor information to the N.C. Department of Revenue for debts owed to the N.C. Department of Justice through the Setoff Debt Collection Act. Other State agencies should register with the Department of Revenue and the State Controller’s Office (unless the State Agency Creditor has previously been registered) in order for each Agency Creditor to submit its delinquent accounts to the Department of Revenue for setoff debt collection.

1. 1. 1. Review for accounts should start on October 1 for tax setoff due date of December 1.

4.2.3 Acknowledgement letters must be sent to debtors within 10 days of notification that the setoff has occurred.

4.3 Bankruptcy

4.3.1 If �鶹����P receives a Notice of Bankruptcy, �鶹����P must immediately cease all collection efforts. Most Agency Creditors will receive Chapter 7 (Asset Case or No Asset Case) or Chapter 13 (See Attachments 34, 35, and 36). The Agency Creditor is prohibited from engaging in collection activity against the debtor and certain co-debtors as listed under 11 U.S.C. § 362 - Automatic Stay.

4.4 Write-off of UncollectibleAccounts

4.4.1 Accounts should be written off when all collection procedures, including those required by the OAG, have been conducted without results and management deems the accounts uncollectible. Accounts due from individuals or vendors must be submitted to the Department of Revenue for setoff debt proceedings at least once prior to write off. After write off, these accounts shall continue to be submitted to the Department of Revenue for debt setoff proceedings. 4.4.2 Any account over six months aging and inactive will be included in the doubtful allowance. Any account over one year aging and all state policies and procedures have been followed will be written off. 4.4.3 However, OSC requires that the reasons for writing off an account and compliance with write-off policy must be adequately documented. Such documentation must be readily available for audit. 4.4.4 Accounts that are written off as uncollectible require that the university reimburse the State for uncollected tuition. As a result, the university’s limited budget will be negatively impacted, possibly reducing support services to students in good standing.

4.5 Accounting for Receivables Written Off

4.5.1 Uncollectible accounts may be written off of financial accounting records and no longer recognized as collectible receivables for financial reporting purposes, but the legal obligation to pay the debts still remains. Accounts written off remain debts to the agency until discharged by the OAG or collected. 4.6 Accounting for Uncollectible Receivables Written Off 4.6.1 For any uncollectible receivable of more than $25.00 that has been written off, a summary level record of the accounts sufficient to substantiate the debt is to be retained indefinitely or until the debt has been collected or discharged. 4.6.2 For uncollectible receivables of $25.00 or less that have been written off, such records must be retained for two years. A record of accounts written off must be maintained and reported to the OSC on a periodic basis, to be determined at a later date. 4.6.3 If an account is determined to be an indigent care account or a contractual adjustment, the account is no longer classified as a receivable/debt of the agency and, therefore, the procedures to account for uncollectible receivables do not apply. Agencies should adhere to applicable indigent care regulations.

A student with an unpaid balance at �鶹���� Pembroke will not be allowed to enroll for the next term. Current financial aid will not be used to pay prior semester balances.

For more information please refer to the following:

 

POL 07.55.02 

Student Refund Policy

 

Authority: Chancellor

 

History: 

• First Issued: May 15, 2002
• Revised: April 23, 2012, July 11, 2012, March 18, 2014, November 21, 2017
• Last Revised: June 26, 2019

 

Additional References:

• Office of the Controller
• �鶹����P Housing and Residence Life Handbook
• �鶹����P Policy 07.55.01 – Student Debt Collections
•  

 

Contact Info: Student Accounts/Cashier’s Office, 910-521-6855

 

1. PURPOSE

 

1.1 The Student Refund Policy is used to determine a student's eligibility for a refund when there is a change in the student's status regarding tuition, required fees, housing, and food services (i.e., withdrawal, drop in hours, moving on or off campus, etc.) in accordance with the published refund schedule. Any refund is calculated on a term by term basis and based on the effective date in the Banner system. On occasion, a request for a refund may be unusual and/or extreme or the request may be unresolvable at the appropriate level.

 

1.2 Additionally, guidance for other student charges such as Tuition Surcharge and Late Payment Penalties have provisions for waiving or appealing the charges given specific, unique circumstances and/or based on “good cause.”

2. SCOPE

2.1 This policy applies to all current and incoming new students of �鶹���� (�鶹����P).

3. OUTSTANDING STUDENT ACCOUNT BALANCES

 3.1 Any refund that a student becomes entitled to shall first be applied to outstanding financial obligations owed to the university. To be eligible for a refund, a student must withdraw from all classes for that term. Only withdrawing from one or more classes, will result in a W grade for the course; but there will be no refund given if you have other courses on your record.

4. TUITION AND FEES  

4.1 Withdrawals. Tuition and fees, including room and board will be refunded per the following schedules, provided a student officially withdraws from the university.

4.1.1 Fall and Spring Semesters 

4.1.1.1 Through the first week of classes (five class days starting the first official day of classes for the university) tuition and required fees will be refunded at 100 percent.

4.1.1.2 The second week of classes (six to ten consecutive class days) tuition and required fees will be refunded at 75 percent.

4.1.1.3 The third and fourth week of classes (eleven to twenty consecutive class days) tuition and required fees will be refunded at 50 percent.

4.1.1.4 The fifth and sixth week of classes (twenty-first to thirtieth consecutive class days) tuition and required fees will be refunded at 25 percent.

4.1.1.5 Beginning with the seventh week of classes (thirty-first consecutive class day) refunds will not be considered.

4.1.2 First and Second Summer Sessions and Non-Traditional Courses.

4.1.2.1 Through the first week three days of classes (three class days starting the first official day of classes for the university) tuition and required Full Time Equivalent (FTEs) will be refunded 100 percent.

4.1.2.2 The fourth through the eighth day of classes tuition and required FTEs will be refunded at 75 percent.

4.1.2.3 The ninth through the twelfth day of classes tuition and required FTEs will be refunded at 50 percent.

4.1.2.4 During the third week of classes (thirteenth consecutive class day) refunds will not be considered. �鶹����P begins counting days with the first official day of classes for each semester and summer session, as described above in 4.1.1 and 4.1.2. For online accelerated 7-week classes, �鶹����P begins counting days with the first day of each particular class.

4.1.3.1 Online Accelerated 7-week sessions

4.1.3.2 The first three class days, tuition and required fees will be refunded at 100 percent

4.1.3.3 The fourth through the seventh class-day, tuition and required fees will be refunded at 75 percent.

4.1.3.4 The eight through the twelfth class-day, tuition and required fees will be refunded at 50 percent.

4.1.3.5 Beginning with the thirteenth class-day refunds will not be considered.

4.1.4.1 Winter Session and Maymester

4.1.4.2 The first two class-days, tuition and fees will be refunded at 100 percent.

4.1.4.3   The third and fourth class-days, tuition and fees will be refunded at 75 percent.

4.1.4.4 The fifth and sixth class-days, tuition and fees will be refunded at 50 percent.

4.1.4.5 Beginning with the seventh class-day, refunds will not be considered. To be eligible for a refund from Winter Session and/or Maymester, a student must withdraw from all classes for that full term.  For Winter Session, the student must withdraw from all Spring term courses.  For Maymester, the student must withdraw from all Summer I courses.

4.2 Reducing Hours. Students who officially drop from full-time to part-time status or those who drop to a lower block of credit hours will receive a refund equal to the difference between the amount paid and the charge for the block of hours for which the student is officially registered at the end of the registration (drop-add) period. Refunds for withdrawing or reducing hours will be processed after the registration period. A refund will only be issued for reducing hours or dropping a class while still attending other classes at the university, if the reduction or the class drop is completed during the drop/add period.

4.3 Please allow two weeks for processing of any refund. All refunds are subject to the above noted time limitations. Students who receive Title IV financial aid are subject to separate federal refund regulations governing such aid. A student receiving financial aid may not receive a refund until the Financial Aid Office determines if any funds from an awarding agency must be returned. Changes in the number of hours a student is enrolled may have an effect on eligibility for aid and may result in a student having to repay all or a portion of the aid. Generally, students withdrawing from the institution may owe a repayment of all or some portion of the financial aid received. Students who have specific questions should contact the Financial Aid Office for additional information.

4.4 Students Receiving Military Tuition Assistance Funds. 

4.4.1 Any unearned military tuition assistance (TA) funds will be returned to the Department of Defense (not the student) on a proportional basis through 60 percent portion of the period for which the funds were provided. TA funds are earned proportionally during an enrollment period, with unearned funds returned based upon when a student stops attending. �鶹����P will recalculate TA eligibility for students who fail to attend, drop out, withdraw (officially or unofficially), or are dismissed prior to completing greater than 60 percent of the enrollment period.  

4.4.2 The amount of unearned tuition assistance will be calculated from the first official day of classes to the last day of classes (inclusive of final exam week) for any given enrollment period. Recalculation is based on the percent of aid earned using the following formula: 

Number of days completed

 = % of TA earned

Total Days of the course (start to end date)

4.4.3 TA benefits will be recalculated in the same manner as a Title IV recalculation.  Therefore, to determine how the calculation is performed, please see the Refund Distribution section above. Students will still be liable for the cost of their Tuition and Fees, regardless on the amount of TA funds that must be refunded to the Department of Defense.  

4.4.4 In instances when a Service member stops attending due to a military service obligation, �鶹����P will work with the affected Service member to identify solutions that will not result in a student debt for the returned portion. 

4.4.5 A student’s official withdrawal date is used as the last date of attendance and to calculate earned percentage of TA funds. A student’s official withdrawal date is determined by using the last date of attendance documented and submitted to the Office of the Registrar. 

 APPEALS  

5.1 Tuition and Fees

5.1.1 Individuals wishing to appeal the percentage of refunds they are eligible to receive must initiate the request in writing to the Registrar’s Office and are encouraged to include any and all documentation they believe to be relevant to the appeal. Appeals can be submitted in person or via email. All documents submitted for an appeal are retained for audit purposes by the Registrar or his/her designee, along with documentation of the appeal outcome. Changing your mind about college, poor academic performance, disciplinary withdrawal, or not receiving expected financial assistance are considered to be the result of personal choices and actions and will not be considered for a refund appeal after the above noted time limitations. Failure to comply with published deadlines or regulations is not a serious and compelling reason to seek a refund and will not be approved.

5.1.2. Students withdrawing after fifty percent of the semester or term has expired will not be considered for a refund, regardless of the reasons(s) necessitating the withdrawal.   

5.1.3 Requests for refunds submitted later than one year after the end of the semester/term for which the refund request is made will not be considered, regardless of reason(s).

5.1.4 Refunds are generally not approved when withdrawal or reduction in course load is caused by the following:

5.1.4.a. Personal reason(s); 

5.1.4.b. Ignorance of publicized rules and regulations; 

5.1.4.c. Circumstances within the student's control; and 

5.1.4.d. Failure of student to fulfill responsibilities. 

5.1.5 Refund Consideration.  In general, a refund of tuition and required fees due to a withdrawal or reduction in course load before fifty percent of the semester or term has expired is approved if the request was caused by any of the following circumstances.

5.1.5.1 Death of student. Should the death of a student occur during a semester or session in which no academic credit is received, �鶹����P will refund 100% of the tuition and required fees paid for that particular semester or term.

5.1.5.2 Being called to active military duty or the reassignment to a new active duty station.  If a student is involuntarily called to active military duty or is an active member of the armed forces and is transferred to a new permanent duty station preventing the student from completing the semester or term and receiving no academic credit, pending verification of orders, �鶹����P will refund 100% of the tuition and required fees for that particular semester. For instances in which a student volunteers for active military duty or requests to withdraw due to circumstances relating to a national emergency, consideration for a full refund of tuition and fees will be determined on a case by case basis. A full refund for textbooks purchased for the semester in progress is available through the university bookstore by presenting the textbooks, the receipt, and a copy of the applicable military orders. A per diem refund of room rent in a campus residence facility will be issued based on the student’s official check-out date. Also, board fees will be prorated from the opening date of the dining hall for the term. Unpaid account balances will be subject to a payment plan formulated with the student along with no collection actions during a deployment.

5.1.5.3 Documented serious medical reasons. �鶹����P may limit the financial liability of a student who becomes unable to complete his/her course work and officially withdraws from the university before academic credit is received as a direct result of a serious medical condition, pending the submission and review of pertinent medical records and supporting documentation.

5.1.5.4 Death or serious illness of immediate family. Due to the death of or the serious illness of an immediate family member necessitating the withdrawal of a student before academic credit is received, �鶹����P may refund up to 100% of the tuition and required fees paid for that particular semester or term.

5.1.5.5 Verifiable circumstances completely beyond the student’s control that result in extreme or unusual hardship to the student (i.e. Catastrophic calamity; natural or otherwise). Notwithstanding any other provisions for refund, on rare occasions, when a student has withdrawn or reduced course load due to unforeseen circumstances totally beyond the student's control, under conditions in which the denial of refund would cause unreasonable and extreme hardship, �鶹����P may limit the financial liability of a student, provided that no academic credit is received. 

5.1.5.6 Substantive error on the part of the university. Substantive error on the part of �鶹����P will be corrected and, if appropriate, refunded in a timely fashion. Any university penalty charges assessed as a result of the error(s) will be reversed. 

5.1.6 Notification of Appeal Determination. Decisions will be final and will be communicated to the student in writing (or via email) and will be disseminated internally as necessary and externally upon written request and in accordance with federal and state guidance related to release of student data.

5.1.7 Retro-Withdrawals. In those instances where nonattendance is verified and a retrowithdrawal is granted, or in those instances where the associate vice chancellor for enrollment grants a retro-withdrawal, tuition and fee charges will be adjusted in accordance with the university’s established refund processes.

 5.2 Late Payment Penalty

5.2.1 A student is charged the one-time late payment fee and interest if the debt is remaining outside of the current semester and the student is not currently enrolled. According to a state agency shall charge interest at the rate established pursuant to on a past due account receivable from the date the account receivable was due until it is paid.  The late fee shall be 5% of the outstanding debt.  

5.2.2 The Student Accounts/Cashier’s Office is the initial point of contact for submitting an appeal of the late payment penalty, as the penalty is assessed as a function of collection activity. Disputing a late fee does not guarantee that the fee will be removed.  Submitting a written request for removal only means that the penalty and fee is being disputed and that the Bursar will review the student’s account to assess the appeal validity.  If the Bursar deems the penalty and interest fees to be legitimate, the student will be required to pay it. Appeals must be in writing and students are encouraged to include any and all documentation they believe to be relevant to the appeal, which can be submitted in person or via email to student.accounts@uncp.edu.  All documents submitted for an appeal are retained for audit purposes by the Bursar or his/her designee documenting the outcome of each appeal.

5.2.3 Time Limitations. A written appeal request along with supporting documentation may be submitted to the Bursar within 45 days of the effective date of the charge.  Failure to dispute the penalty and late fee within the timeframe will be considered an acknowledgement by the student that they are aware of the fee and accept the charges. Once any past due balance – including the late payment penalty is paid – no requests for waiving a late payment penalty will be accepted or considered.

5.2.4 Late Payment Penalty Waiver Consideration.allows for waiving the late payment penalty with good cause. Criteria similar to that of the refund appeals are applied in determining if good cause is shown as follows:  

5.2.4. a. military service obligation;

5.2.4.b. serious health debilitation

5.2.4.c. disability; or

5.2.4.d. other extraordinary hardship.

5.2.5 Notification of Appeal Determination.  Every student that files an appeal will be notified in writing of the outcome within 30 days of the date of determination.

 ROOM DEPOSIT

6.1 Students who resided on campus prior to the Fall 2020 Semester and paid a housing deposit will be refunded the housing deposit (less damages and/or any other financial obligations owed �鶹����P) provided the resident submits written cancellation by November 30, preceding the spring semester and by May 31, preceding the fall semester. Established residents must follow checkout procedures as detailed in the to ensure an appropriate refund of the room deposit.

Receipting/Depositing Collected Monies Policy

Controller's Office Policy CO 08 95

Purpose: Procedures for the receipting and depositing of collected monies to maintain Financial Control.

Scope: Applies to all employees or organizations acting on behalf of �鶹����.

Policy: All funds collected at locations outside the Cashier's Office, with the exception of �鶹����P approved receipting equipment currently in the Bookstore, GPAC, and University Center, shall be receipted by �鶹����P receipt books and deposited with the University Cashier's Office.

Procedures for the use of receipt books:

1. �鶹����P receipt books and endorsement stamps are issued to employees by the Cashier’s Office. The employee who is issued a receipt book will receive a copy of this policy and also sign a copy of the policy accepting personal responsibility for the receipt book and the collections until the receipt book is returned to, and the monies are receipted in, the Cashier's Office. If multiple books are needed, and sufficient justification is provided, the employee signing for the books will remain personally responsible for all books, regardless of who actually issues the receipts.

2. Money collected should be kept in a secure location and no personal checks shall be cashed out of or expenses paid from receipt money. Employees shall not commingle personal monies with receipt book monies.

3. Receipts must be completed with date, name of person paying, amount, what is being paid (fax, transcript, etc.) and the signature of the employee collecting the money. Receipts must be written in the receipt book so that all three parts of the treated receipts are completed at one time and are identical. The three-part receipts are distributed as follows:

(a) The white copy (original) is given to individual making payment.

(b) The pink copy is attached to the deposit form that is filed with the Cashier's validated receipt. Receipts are to remain in numerical order.

(c) The yellow copy remains attached in receipt book

4. Checks must be restrictively endorsed at the time of receipt using the stamps provided by the Cashier’s Office.

5. Credit Card receipts must be accompanied by credit card information. Payment by credit card shall be noted on the applicable receipts.

6. All 3 parts of voided receipts must be left in the receipt book -- white, pink, and yellow -- clearly marked VOID on all 3 parts with the signature of person voiding the receipt and the signature of the supervisor/advisor with a brief explanation. If the white copy is not with the voided pink and yellow copies, the department will be charged with a shortage for the amount of the receipt.

7. Receipts shall be deposited in the Cashier's Office at least weekly and no later than 3 p.m. on Friday. Any day that receipts consist of $150.00 or more in CASH (not including checks), a deposit must be made that day for all receipts. This procedure must be followed even if it requires deposits every day.

8. A completed deposit forms include date, fund and account numbers, amount, description of type of funds receipted (transcript, fax, etc.), total deposited, person making the deposit, comments if desired, ending receipt number from prior deposit, from and to receipt numbers covered by this deposit, and a breakdown of type of collections – total cash and checks with a subtotal before adding credit cards followed by a grand total.

9. Receipt books issued for special events will be returned when the deposit is made at the Cashier's Office, but no later than the first work day after the event. If an exception is needed, please request this in advance.

10. Receipt books/collections are subject to periodic audits by the Internal Auditor and the Office of State Auditor as well as the examination by the Cashier’s Office at the time of deposit and book return.

11. By �鶹����P Executive Order, the Controller is required to report non-compliance of any cash management policy to the appropriate vice chancellor, the Chancellor, and the Vice Chancellor for Business Affairs. This reporting will be by copy of an email sent to the employee not in compliance.

12. Certification of employee receiving �鶹����P receipt book:

Signature _________________________________

Date _________________________________

Get the Depoist Form here!

Deposit Form

deposit_form.xls