La. Admin. Code tit. 4 § XIII-105
Current through Register Vol. 50, No. 11, November 20, 2024
Section XIII-105 - Collection Process Overview, Objective, and Policy GuidelinesA. The following procedures are very general and broad for the purposes of identifying area of concerns and general concentration.1. Collection Process Objectivesa. To establish and implement a collection policy and procedure that the Cash Management Review Board has approved.b. To identify delinquent accounts.c. To pursue delinquent accounts by creating collection letters that are tailored to the agency/department's need.d. To apply late charges and interest to delinquent accounts.e. To interface with other software to enhance the intercepting of payments.f. To provide an updated customer account balance for any collection activity:i. payments or NSF checks.g. To provide the ability to write off uncollectible accounts with proper authority and documentation, debt is still owed to the state.h. To establish and maintain internal controls.2. Collection Process a. Begins when the debt is recognized or the service is completed. The agency/department shall provide an invoice or statement in a timely manner to the debtor.b. Different messages would appear on the statement according to the status of the account to remind the customer of the amount owed to the state, any payments and/or adjustments made since the last printed statement.c. Apply interest and/or late charges as statutorily prescribed.d. With the proper documentation and approval, write off from the financial statements any account that is deemed uncollectible after following the procedures outlined in §107. B The debt is still owed to the state.3. Collection Follow-Up Procedures a. Policies and procedures are established and implemented at the agency/department that were approved by the Cash Management Review Board.b. Send a minimum of one follow-up billing statement to debtor. The scheduled billing cycle shall be designated by agency/department.c. Send second billing statement to debtor with a warning (dunning) message explaining the action that will be taken within a scheduled billing cycle from the first statement.d. Third billing statement notifies the debtor that the account has been forwarded to a collection agency or attorney general's office within a scheduled billing cycle from the second statement.e. Course of Action after the Third Billing Statement i. Discontinue service and notify debtor by letter that service has been discontinued, if applicable to the agency/department.ii. The agency/department will continue to collect amounts by all available means- private collection agency, debt offset, etc.f. Further Action (discretion of agency/department policies and procedures approved by Cash Management Review Board).i. Agency/department's secretary or undersecretary may approve the account to be written off or continue to collect (agency's discretion).ii. Agency/department may continue its collection process or assign the account to a collection agency.iii. Follow-up with the attorney general's office or collection agency on the status of the account.g. If appropriate, contact past due customers by telephone at any time during the collection process to ensure collection.4. Allowance for Doubtful Accounts a. Each agency/department should establish an allowance for doubtful accounts to ensure that the agency/department's receivables are not overstated for financial reporting purposes.b. The allowance method used shall be established by the agency/department with the Cash Management Review Board approval. However, the amount should be based upon historical data or other pertinent information relative to the receivable. Sound accounting theory must be used at all times.La. Admin. Code tit. 4, § XIII-105
Promulgated by the Office of Governor, Division of Administration, Office of Statewide Reporting and Accounting Policy, LR 28:2347 (November 2002).AUTHORITY NOTE: Promulgated in accordance with R.S. 39:88.1 through 39:88.4 and Act 904 of Regular Session 2001.