Details

Policy

Purpose

1. To establish guidelines to which credit is extended to students as well as external customers in the course of College business.
2. To manage the collection risk of the College.
3. To manage the extension of credit within various departments and define responsibilities.
4. To keep cost of collecting accounts receivable to a minimum and maximize cash flow.

Scope

1. Applies to all departments that provide goods and/or services to customers or are involved with invoicing, sales, services and student assessments.

Procedure

1. All departments that provide goods and/or services to customers or are involved with invoicing sales, services are required to utilize the Accounts Receivables request for invoicing through Jira for the invoicing process.
2. Student assessments are administered in accordance with Policy 2000-1-2 Registration. Where a student does not pay their fees before the completion of the term, the Office of the Registrar sends a reminder notification that fees are due. Should the fees remain unpaid a financial hold will be placed on the student, and collection proceedings may be initiated. Until the student’s account is cleared, the student will be denied access to facilities and services, including but not limited to, registering in future terms, attendance at graduation ceremonies, and the receipt of credentials including transcripts.
3. The responsibility for extending credit to customers of the College has been delegated to the Department, with appropriate support services provided by Finance Department. The Research Grant Award Holder is responsible for credit extended on their grants with appropriate support services provided by the Research Department and Finance Department.
4. The decision to grant credit to a customer will involve the following considerations:
   1. Capacity for payment;
   2. Credit worthiness;
   3. Historical payment of records;
   4. Dollar value of transaction, terms;
   5. Customer's reputation
5. It is recommended, where possible, that a formal contract or written agreement be signed whenever goods or services are provided and credit is granted. A copy of the formal contract/agreement is to be attached to the invoice requisition request in Jira. If no formal contract/agreement is provided, then other documentation or explanation is required to be provided.
6. Invoices are due on demand. Any arrangement to extend credit terms must be in writing with specific credit terms shown on the face of the invoice. All departments must receive prior approval from Finance before extended credit terms are offered.
7. Invoices beyond thirty-days (30) may be charged interest of the annual percentage interest rate as disclosed on the original invoice. Implementation of interest charge shall be conducted following notice to customer on status of account. Notice to customer is the responsibility of the department.
8. Collection of customer accounts receivable is the ultimate responsibility of the department providing the good or services with support from Finance using normal collection procedures. If a customer contests a charge, the department providing the goods or services will be responsible for resolving the contested item.
9. Collection of student accounts receivable is the ultimate responsibility of Financial Services.
10. In the absence of legitimate disputes, credit privileges will be withdrawn where customers have not responded to collection notices to discharge outstanding debts.
11. Uncollected customer accounts receivable balances will be charged back to the initiating department after all internal means of collection have been exhausted. This action will normally be initiated by Finance after consultation with the department involved.
12. Uncollected student accounts receivable balances will be written off to a global account.
13. Uncollectible accounts will be forwarded through Finance to an external collection agency for further collection, including legal action if necessary. Any amounts that may be eventually collected will be returned to the issuing department, net of service fees charged by the collection agency. Forwarding of accounts to external collections shall follow written notice to customers on status of accounts. Notice to customer is the responsibility of the department.
14. When invoices are outstanding beyond the standard thirty-day (30) period, the College reserves the right to deduct those outstanding amounts against payment that are otherwise owing to the College to the customer, which have arisen from commercial transactions such as consulting fees, accounts payable invoices, expense claims, etc.
15. Conflict of Interest: departments are required to notify Finance in writing of a potential conflict of interest when an employee has or could be seen to have the opportunity to inappropriately benefit from the authority, knowledge or influence derived from his/her position; or to pass on said information to anyone else for the purpose of reaping benefit. This include having personal financial dealings with an individual or company whose business with the College involves the employee’s sphere of responsibilities. For more details, please refer to the College’s Conflict of Interest policy.