Accounts Receivable Collections Administrative Rule Page 4
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131.20
RULE
The State of Colorado will maximize timely and efficient collection of moneys due the State.
2.00
REQUIREMENTS OF STATE AGENCIES AND PARTICIPATING INSTITUTIONS OF HIGHER
EDUCATION
2.10
Designated Responsibility
Each Participating Entity shall designate an individual or position responsible for the collection and
referral of its accounts receivable and as a primary point of contact for Central Collection Services. A
Claimant State Entity’s responsible individual or primary point of contact may initiate requests for write-off,
release, or compromise of accounts, but the request must be approved by the Claimant State Entity
controller or highest financial officer per Section 4.00 of this rule.
2.20
Accounting Requirements
Timely billings and collection follow-up procedures are essential for an effective accounts receivable
collection program. Accounting procedures at Claimant State Entities shall provide for:
.01
Prompt billing of amounts due the State and shall include interim billings when the Claimant State
Entity controller determines the interim amount is material, the interim billing is allowed by the
agreement with the debtor, and the State’s benefit from interim billing exceeds the cost of the
interim billing.
.02
A monthly aged trial balance, or aging report, of all accounts receivable that agrees to the
balances in the subsidiary ledger and when reduced by accounts written-off to date equals the
control account in the General Ledger. The aging report shall identify those accounts receivable
that required referral to Central Collection Services during the month or required other follow up
procedures.
The State Controller’s Fiscal Procedures Manual provides additional guidance on recording,
.03
allowancing, and reporting accounts receivable.
2.30
Determination of Payment Plan
At the earliest feasible time after an account becomes past due, the Claimant State Entity levying fines or
providing goods, services, or moneys loaned shall establish with the debtor a definite schedule for
repayment of the account receivable. The arrangements for repayment shall be reasonable and timely,
and the debtor, guardian, responsible party, or signer/co-signer, shall be advised in plain language of
his/her obligations under the plan and shall acknowledge his/her obligations in writing. A debtor’s failure
to comply with the repayment plan activates the follow-up collection procedures specified in Section 2.50.
A Claimant State Entity may not establish a payment plan with a debtor after the requirement for referral
of the debt to Central Collection Services. See section 2.60 of this rule.
2.40
Credit Information
Participating Entity records for each debtor shall include the following items of information to the extent
they can be obtained with reasonable due diligence:
.01
Social Security Number and/or Federal Employer Identification Number.
.02
Current home and work address.
.03
Current home and work phone number.
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