This policy is designed to establish the techniques and procedures to properly and aggressively account for, record, manage, and collect receivables necessary to ensure appropriate and cost-effective actions. This policy applies to all employees, officers and contractors doing business with GBPLD.
Requirements- GBPLD defines Accounts Receivable as an asset reflecting an amount owed that has not been received; may include amounts due from individuals, private entities, the federal government, local governments and municipalities, and other state departments and organizations. Receivables may include amounts due for delivered goods and services, reimbursement of expenditures (e.g. costs incurred under grants or contracts), taxes, fees, fines, loans, and other miscellaneous circumstances.
- GBPLD will recognize and report receivables in accordance with generally accepted accounting principles (GAAP). Generally, the recognition of receivables is tied to the recognition of revenue. If payment is not received when the revenue recognition occurs (i.e. revenue is earned), then a receivable should be recorded.
- GBPLD will ensure written procedures exist for all accounts receivable and collection activities. Procedures should address preparing invoices, recording receivables, collecting the accounts, recording payments, adjustments to receivables, and follow-up on delinquent accounts.
- GBPLD will ensure responsibilities for maintaining detailed accounts receivable records are segregated from collections and general ledger posting.
- GBPLD will maintain an accurate record of receivables transactions; automated systems should be utilized where practical to facilitate processing and reconciliation.
- GBPLD will ensure the billing and collection of all receivables is performed promptly as part of an effective cash management program and will use measurable goals and standards to monitor collection performance.
- GBPLD will ensure invoices are generated and sent at least monthly; payment terms should be indicated on the bill.
- GBPLD will ensure charges for goods, services, fees, etc. are based on approved rates as authorized by the appropriate state/federal authorities (where applicable).
- GBPLD will ensure active efforts must be made to collect on accounts that are past due; and document actions taken to collect on delinquent accounts.
- The Director of Finance will approve write-offs or other reductions of receivables (where allowable).
- Project lead will periodically issue statements to Finance, which show the status of the account and activity, including outstanding unpaid invoices and recent payments.
- Finance will record accounts receivable in a manner to permit an analysis of the aging of such receivables (e.g. <30 days, 30-60 days, etc.).
- Finance will review credit balances before a refund is issued.
- All employees, upon suspicion of fraud or theft, will immediately notify the appropriate personnel (i.e. Executive Management Team, Library Board).
(3/2024)