Policy 5:12 - University Collections | South ��ֱ�� State University

Policy Contact: Accounts Receivable Office

Purpose
This policy implements SDBOR Policy 5.21 and sets forth the guidelines for collection of accounts with accounts receivable balances at the University.
Policy
1. This policy pertains to student, employee, vendor, and customer receivables including, but not limited to, tuition and fees, institutional student loans, traffic fines, library fines, daycare, housing fines, student health and other student charges of whatever kind or character; except that student obligations arising from participation in federal student financial aid programs shall be collected in the manner specified under federal regulation.
2. A commercial or vendor account shall become delinquent 45 days after the established due date. A student account shall become delinquent when a balance remains after the established deadlines. The debtor shall be informed that if the account is not satisfied in full or appropriate arrangements made by the due date, the account shall be handled as follows:
  1. All student accounts with an accounts receivable balance of $250 or more shall have a hold placed on them as soon as they become delinquent. The hold will prevent the student from registering, adding or dropping classes.
  2. All student accounts with an accounts receivable balance less than $250 shall have a hold placed on them when the debt becomes over 180 days delinquent or, the student is no longer enrolled at the University, whichever is first.
  3. A hold shall not be removed until the account is satisfied in full. The Director of Student Accounts, successor or designee, has sole discretion to authorize a temporary suspension of a hold based on communication with the student regarding a plan to resolve the outstanding balance.
  4. For all commercial or vendor accounts that become delinquent, the University shall discontinue their services until accounts are paid in full.
  5. University departments may submit unpaid student charges to the Director of Student Accounts, successor or designee, for addition to a student account with appropriate documentation, including a record of at least three (3) contacts to the debtor, with at least two (2) of them being in writing. Once added to a student account, these charges may trigger a hold.
3. Collection of student, commercial or vendor accounts shall proceed according to the following schedule:
  1. Accounts less than $250:
    1. Accounts that are less than $250 shall be handled in accordance with the applicable collection procedures maintained by the University Accounts Receivable Office or Cashier’s Office, which shall consist of a minimum of three (3) contacts to the debtor, with at least two (2) of them being in writing.
    2. When the University’s collection efforts are exhausted, the account may be referred to a collection agency under contract with the University or to the State of South ��ֱ��’s Obligation Recovery Center. Debtors will be responsible for all collection fees incurred including, but not limited to, attorney fees and court costs. Collection agencies will also report the incident to the three (3) major credit bureaus.
    3. When collection efforts are exhausted and the account is at least two (2) years but not to exceed five (5) delinquent, the account will be submitted to the State Board of Finance to be written off in accordance with procedures established by the State Board of Finance. Exceptions may be granted by the Vice President for Finance and Budget, successor or designee, for accounts which have been delinquent for five (5) years or more.
    4. The hold shall remain on a debtor’s record even after the account is approved for write-off, which will prevent the debtor from receiving services from the University or other SDBOR institutions until the debt is satisfied.
  2. Accounts that are $250 or more:
    1. Accounts that are $250 or more shall be handled in accordance with the applicable collection procedures maintained by the University Accounts Receivable or Cashier’s Office, which shall consist of a minimum of three (3) contacts to the debtor, with at least two (2) of them being in writing, one (1) by registered mail. The collection process on accounts of $250 or more shall be completed within 180 days from the date the account became delinquent.
    2. When the University’s collection efforts are exhausted, the account shall be referred to a collection agency under contract with the University or to the State of South ��ֱ��’s Obligation Recovery Center. Debtors will be responsible for all collection fees incurred including, but not limited to, attorney fees and court costs. Collection agencies will also report the incident to the three (3) major credit bureaus.
    3. When collection efforts by the Obligation Recovery Center have been exhausted and the account has been referred back to the University, the account will be submitted to the State Board of Finance for write-off in accordance with procedures established by the State Board of Finance.
    4. The hold shall remain on a debtor’s record even after the account is written off, which will prevent the debtor from receiving services from the University or other SDBOR institutions until the debt is satisfied.
4. University employee debts to the University may be satisfied through voluntary or involuntary deductions from salary, or they may be referred to a collection agency.
  1. University employees shall be billed for debts to the University in the same manner as others who owe monies to the University.
  2. Where University employees fail to respond to demands for payment, the University may refer the matter to a collection agency, or it may:
    1. Notify the debtor-employee that their monthly salary will be reduced to cover the amount owing, plus interest, beginning with the salary earned during the month following that in which the notice is sent.
    2. The notice sent to debtor-employees shall fix a time for an informal meeting between the Vice President for Finance and Budget, or designee, and the employee to discuss the debt and its resolution.
      1. The meeting shall be scheduled no later than ten (10) working days prior to the date of the first deduction.
    3. If the debtor-employee contacts the University in response to such notice, the University may work out mutually acceptable terms for the use of salary deductions to repay all sums owing.
    4. If the debtor-employee fails to respond to the notice, or if no mutually acceptable agreement is reached, the University may recoup its claim from the debtor-employee’s salary beginning with the installment payable for services provided during the month following that in which the notice was sent.
    5. Deduction from salary may be in such amounts needed to satisfy the debtor-employee’s obligations to the University; provided that the deductions from salary shall comply with the priorities and limitations on deductions from wages established by SDCL Ch. 21-18.
  3. Debtor-employees may challenge such deductions under grievance procedures established in SDBOR policy.
    1. If an employee succeeds in showing the deductions have been improper, the University shall make a lump sum payment of the amount deducted, plus interest from the time of the deduction.
5. The University is authorized to assess interest on delinquent accounts at the Category F specified in SDCL § 54-3-16.
Responsible Administrator
The Vice President for Finance and Budget, or designee, is responsible for the annual and ad hoc review of this policy. The University President is responsible for approval of this policy.

Approved by President on 10/17/2014. Revised in accordance with SDBOR Policy 5:21; Approved by President on 02/26/2016. Revised; Approved by President on 10/06/2020. Revised; Approved by President on 02/02/2022. Revised; Approved by President on 09/15/2022. Revised 01/30/2024 (clerical). Revised; Approved by President on 09/16/2024.

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