BURSAR S DIVISION ACCOUNTS RECEIVABLE

Transcription

1 Summary of Major Accomplishments BURSAR S DIVISION ACCOUNTS RECEIVABLE Transition of Student Receivables to the Student Account System Due to the student accounts system implementation, several procedures in Accounts Receivable and the Accounts Receivable system were either modified or eliminated. For example, returned checks from students are now posted to the centralized student account system and the student notified immediately by . This change has shortened the aging of these student receivables and streamlined the process considerably. Previously, students were mailed invoices and the collection process for bad checks required the student to mail payment or appear in person. Staffing Changes With the retirement of the Department manager in November 2002 and one other staff member in December 2002, the decision was made to transfer the University insurance processing from Accounts Receivable to Administrative Services. The implementation of the student account system and the transfer of the insurance responsibilities removed much of the workload in this department and allowed the two remaining staff members to focus on functions such as: retiree insurance billing, GSFIC receivables, Veterinary Clinic receivables and other miscellaneous University receivables. The downsizing of the Department presented an opportunity to place management responsibility under the manager of the Student Accounts Department. Given the loan collection experience of the Student Accounts manager and the close relationship of the two departments with student receivables, this change was a good fit for both departments. Increased Georgia State Financing and Investment Commission Receivables With the increased volume of construction on-campus, the number of projects funded through the Georgia State Financing and Investment Commission (GSFIC) has grown. In FY2002 there were 92 projects, representing remaining project balances of $5,883,000, and in FY2003 the number had increased to 99, representing $21,869,000 in remaining project balances. During FY2003, the accounting for GSFIC projects was converted to restricted accounts, which provided the ability to adequately track budget, expenses, and changes in budget. These accounting changes have resulted in improved billing and collection on these receivables. Improved Billing and Reporting The Accounts Receivable Department also improved its billing and report functions. Invoices were converted from a statement folded and stuffed in an envelope to pressure-seal statements. Reports prepared by mainframe programs are no longer printed, but instead, are prepared as PDF files and transmitted to the Department server for storage and retrieval. C-127

2 UNIVERSITY ACCOUNTS RECEIVABLE SUMMARY - AGED ANALYSIS June 30, 2003 TOTAL CURRENT OVER RECEIVABLES MONTH DAYS DAYS 90 DAYS I. CURRENT FUNDS A. EDUCATIONAL AND GENERAL 1. RESIDENT INSTRUCTION STUDENT RECEIVABLES PHYSICAL PLANT 256, , , , , BUSINESS SERVICES 11, , , COMPUTER CENTER 5, , GEORGIA INSITUTE OF TECHNOLOGY MEDICAL COLLEGE OF GEORGIA EMPLOYEE BENEFITS INSURANCE 498, , , , , ATHLETIC - BUTTS MEHRE 29, , ATHLETIC - COLISEUM PENDING WRITE OFF PROPERTY INSURANCE OTHER 745, , RETURNED CHECKS 100, , , , , RETURNED CHECKS SERVICE CHARGE 4, , , RETURNED CHECKS LATE CHARGE MARINE EXTENSION OTHER VETERINARY TEACHING HOSPITAL VETERINARY CLINIC 689, , , , , B. AUXILIARY ENTERPRISES STUDENT RECEIVABLES 22, , TOTAL CURRENT FUNDS 2,364, ,471, , , , II. PLANT FUNDS GA STATE FIN. & INVEST. COMMISSION 4,345, ,780, , , , TOTAL ACCOUNTS RECEIVABLE $6,710, $4,252, $838, $249, $1,369, Summary of FY Goals Improved Collection Procedures Other than student receivables, Veterinary Clinic bills compose the largest amount of the University s receivable balances. Collection procedures for veterinary collections are currently under review and improved processes and procedures are planned for FY2004 implementation. In addition, the Department is researching the use of a new collection agency with experience in veterinary collections at other Veterinary Schools, such as Auburn University. C-128

3 Student Accounts and Accoun ts Receivable Manager Student Aid Disbursement Loan Collection & Accounting Accounts Receivable Sr. Acctg. Asst. Sr. Acctg. Asst. Acctg. Asst. Acctg. Asst. Acctg. Asst. Acctg. Asst. Acctg. Asst. Accountant I Accountant III Accountant III Sr. Secretary Accountant II Loan Collection Officer II Loan Collection Officer I Accountant I Sr. Acctg. Asst. Reception Computer Support Office Manager Data Collection Coordinator Accounting Assistant Accounting Assistant Sr. Secretary C-129

4 Summary of Major Accomplishments Student Account System BURSAR S DIVISION BURSAR S OFFICE After two years of research, design, planning, and programming, the student account system, a centralized billing and collection system for processing student charges and payments, was implemented on April 1, Prior to implementation, the billing and collection of student tuition/fees, residence hall rent, and food service plans was decentralized across campus. With the student account system, students can apply financial aid (loans, grants and scholarships) and make other payments (cash, check, and credit card) to tuition and fee charges, residence hall charges, meal plan charges, chemistry lab fees, SEVIS fee (international students) and other charges. In the future, additional university charges will be processed through the student account system-for example, lab and supply fees, parking permits, parking tickets and family housing charges. The University also benefits from the student account system. Examples of increased efficiencies include: All billing statements and payment reminder notices are ed to the student s UGA account. Bills are not mailed. The University benefits from reduced postage and printing costs and students receive more timely billing information. Students have on-line access to their account in OASIS and can process credit card and financial aid payments to their account on the computer. Payment processing is now centralized in the Bursar s Office, eliminating duplication of tasks associated with multiple payment locations. For instance, with the student account system a student can make one credit card payment for his account balance. The University reduces credit card transaction costs and provides a one-stop payment service to students. Each charge or payment electronically processed to the student account is accumulated and updated to the accounting system with an electronic JV, therefore eliminating a significant number of manual journal vouchers. During implementation, the Division marketed the new system to the University community. In addition to information and training sessions conducted for UGA personnel, Bursar s Office/Student Accounts personnel informed the student body using several methods: modification of the Bursar s/student Accounts website, notification, postcards, campus-wide distribution of flyers, advertisement on campus transit buses, notices and articles in the Red and Black, and announcements on the UGA student portal and Channel 15. The following charts illustrate the number of charge and payment transactions processed through the student account system since its implementation in April 2003: C-130

5 Student Account System Charge and Payment Activity For the Period of April 2003 thru June 2003 CHARGES PAYMENTS Charge # Transactions Dollar Amount Payment Method # Transactions Dollar Amount Tuition and Fees 442,977 $ 71,910, Cash/Check 2,750 $ 2,649, Housing 6,955 6,899, Credit Card 6,597 5,192, Food Services 3,429 3,474, Financial Aid 14,679 11,637, Sevis Fees 1,810 61, Bill to Sponsor , Chemistry Lab Fees 2,679 31, Charge to UGA Account 1, , Deferred Charges , Deferments , Financial Aid Repayments , Payroll Deduct , Returned Checks and Late Fees 2, , Total 461,665 $82,781, Total 25,791 $20,239, At June 30, 2003, the system contained the following student receivables: Student Accounts Aging Analysis As of June 30, 2003 Current >30 Days >60 Days >90 Days >120 Days Total Tuition and Fees 53,621, , , ,636, Housing 6,421, ,421, Food Services 2,984, ,984, Sevis Fee 18, , Chemistry Lab Fees 20, , Due from Sponsors 508, , Deferment Charges 31, , Pending Payroll Deductions 29, , Returned Checks and Late Fees 24, , , , Financial Aid Overawards 200, , TOTAL 63,860, , , , , ,890, Updated Cashiering System The Bursar s Office worked with programmers in Finance and Administration to design and build an updated cashiering system for use by the Bursar s Office and other cashiering operations on-campus. The updated system possesses all the functionality of the legacy system, but is updated as an Access database and is web-enabled. The system will provide enhancements in the form of electronic data storage, query and report writing and electronic data retrieval. Such information was previously available, but only in paper format. The new system will allow for data entry of credit card sales for electronic upload to the Accounting system and will eliminate the need for credit card sale batch header preparation and entry by Information Systems Scheduling. In June C-131

6 2003, the upgraded system was tested in a parallel environment with the legacy system. Final testing and implementation of the new system will occur early in FY2004. The number of electronic fund transfers processed by the Bursar s Office continues to grow. During FY2003, $606,142,000 was received by incoming wire transfer or ACH. The following chart illustrates the growth in cash receipts (cash, check, and electronic funds transfers), from 1999 to 2003: Amount of Cash Receipts $1,200,000, $1,000,000, $800,000,000 $600,000,000 $400,000,000 $200,000,000 $0 Fiscal Year Credit Card Processing With the retirement of the Accounts Receivable Department manager in November 2002, the decision was made to transfer the credit card processing functions from Accounts Receivable to the Bursar s Office. The credit card processing functions and revenue recognition closely mirror the cashiering/banking functions performed in the Bursar s Office. This transition was seamless and with implementation of the updated cashiering system, credit card sales can be posted to the accounting system in a more streamlined manner. With over 150 University departments accepting credit cards, the University processed over $66,000,000 in credit card sales in FY2004. Units with the highest percentage of credit card receipts in FY2003 were: Student Accounts, Housing, Food Services, the Georgia Center, and the Veterinary Clinic. E-commerce continues to be a popular method of sales, and currently, ten University units utilize this method of transacting business. The University added two new e-commerce merchant numbers in FY2003. C-132

7 The following graph illustrates the growth in net credit cards sales from 1999 to 2003: Net Credit Card Sales $80,000,000 $70,000, $60,000, $50,000, $40,000, $30,000,000 $20,000,000 $10,000,000 $0 Fiscal Year Banking Items As a result of the Wachovia/First Union merger, all banking customers in Georgia were converted to new Wachovia systems in February This conversion required some adjustments for the University. All Wachovia account numbers changed from 8 to 13 digits. It was necessary to provide revised account and routing information to all commerce partners that transact business with the University by electronic funds transfer. Additionally, the Bursar s Office coordinated with AIS and the Payroll Department to adjust the direct deposit banking records of all UGA employees and petty cash custodians with Wachovia accounts to allow update of UGA systems. The Department also worked with Staff Benefits/Human Resources to open a new account with BankFirst in South Dakota for processing payment to BankFirst on Benny Card transactions. In January 2003, the University issued a Benny Card to each employee enrolled in the Med-Flex savings plan. Employees use the Benny Card, which is actually a credit card, for medical expenses that they would have normally submitted for reimbursement against their Med-Flex account. The University remits payment to BankFirst on a weekly basis via wire to fund the settled card expenditures from the prior week. C-133

8 Short-term Investment Income As the Federal Reserve Board continued to lower interest rates in 2003, earnings on short-term investments were significantly reduced compared to prior years. The University continued to invest in the Government Money Market Account at Wachovia, Georgia Fund 1, the Board of Regents Short-Term Fund and callable agency notes such as Federal Home Loan Bank, Federal Home Loan Mortgage Corporation and Federal Farm Credit Banks. The following schedule reflects the net earnings and distribution of earnings for the past three years on short-term investments: Fund FY2003 FY2002 FY2001 Plant Funds $2,939,910 $3,950,013 $6,045,189 Auxiliary Enterprises 998,225 1,421,629 2,502,075 Agency Funds 23,868 22,638 40,045 Student Activity Funds 24,682 47, ,741 Loan Funds 142, , ,267 Endowment Funds 151, ,640 1,129,399 Total $4,281,251 $5,732,371 $10,601,716 Endowment Growth The Bursar s Office administers 185 University endowment funds which provide general support for the University, student scholarships and loans, salary supplements and other funding as provided for in the individual trust agreements. There were no new endowment funds established in FY2003. The largest portion of these funds is invested with Trusco Capital Management under a plan approved by the Board of Regents. This market appreciation accounts for the growth in endowment funds during FY2003. The following graph reflects the growth in the endowment funds from : Growth in Endowment Funds $40,000, $35,000, $30,000, $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 Fiscal Year C-134

9 Summary of FY Goals Finalize Implementation of Upgraded Cashiering System Testing of the cashiering system at Student Activities and the Ramsey Center will be completed in early October 2003 and final implementation of the new cashiering system is scheduled for mid-october Controlled Disbursement and Online Treasury Manager for Suntrust Payroll Account In May and June 2003, the Division worked with the Payroll Department, AIS and Suntrust Treasury Services to create a new bank account at Suntrust that will provide positive-pay service. Additionally, the University will use the newly-created Suntrust On-line Treasury Manager, (web-based banking software), to monitor payroll account information and to resolve positive-pay issues. The new account and positive-pay service will be implemented with the July 3, 2003 payroll and will help the University decrease its risk exposure to fraudulently created checks presented to the payroll bank account. Student Accounts-Phase II The largest component of Phase II for the student account system is electronic banking for students. This will allow the University to direct deposit financial aid and other refunds to the student s bank account and allow the student to select electronic bank debit as an on-line payment method. Additional projects included in Phase II are the inclusion of lab and supply fees on the student account, improved s to students, and enhancement of the on-line bill presentation in OASIS. The design and planning phases for Parking Services charges and Family Housing charges will commence in FY2004. Truncation of Credit Card Numbers With the ever increasing risk of credit card fraud to consumers and as a result of recent legislation, the Bursar s Office will initiate conversion of credit card processing hardware on-campus to machines that truncate the credit card number printed on the receipt. Current state law requires that all new machinery truncate the credit card number and all existing equipment must be converted to new equipment by The Bursar s Office will begin the conversion process on-campus starting in December 2003, with total conversion to be completed by December UGA at Tifton The College of Agriculture will matriculate 21 students in a new undergraduate program in Tifton, Georgia starting in fall This program will require unique student fee assessment and the Student Accounts/Bursar s Office will work closely with the business office of Abraham Baldwin Agricultural College (ABAC) in Tifton, since ABAC will provide services to UGA students at that location. UGA will collect the fees from students and remit those fees to ABAC. Additional programming and coordination with C-135

10 ABAC is needed regarding financial aid disbursement and UGA students enrolled as transients at ABAC. Student Records Coding Project The Bursar s Office is serving on a committee to evaluate coding of specific student data in the student records system. Currently, the student records database does not contain enough information on the student s program or degree objective to meet the needs of various campus units (Office of Student Financial Aid, Registrar, Bursar s Office/Student Accounts). With the onset of expanded learning (i.e., distance learning, degrees offered at locations other than Athens), data has not kept pace with the needs of the departments and the required reporting/record processing. The committee will prepare an assessment of the situation and a proposal for the Provost. This project will be time-consuming and will require resources, yet it is critical to the continued success of student service functions on this campus. Without a revised coding system, tasks such as fee assessment, awarding and disbursing financial aid, and reporting for tuition revenue will become extremely difficult. C-136

11 Bursar s Office Manager Accountant III Accountant I Accountant I Sr. Accounting Asst Sr. Accounting Asst Sr. Accounting Asst Accounting Assistant Accounting Assistant C-137

12 Summary of Major Accomplishments Student Account System BURSAR S DIVISION STUDENT ACCOUNTS DEPARTMENT Like the Bursar s Office, the Student Accounts Department was integrally involved with the planning and implementation of the student account system. The Department and students will realize improvements with the student account system, especially in the following areas: Since loans, grants and scholarships can be applied to costs other than tuition and fees, fewer financial aid remainder checks will be prepared, reducing the workload on the Accounts Payable Department and decreasing the cost of printing and mailing checks. Financial aid payments to the student account are electronically recorded and used to prepare journal entries that can be balanced and reviewed, then updated to the accounting system, eliminating the need for manual preparation of the journal voucher. Deferment of payment based on financial aid in process is now recorded directly to the student s account, eliminating the transfer of data to the Accounts Receivable system, and therefore, eliminating additional manual procedures to pay these receivables once the financial aid is ready for disbursement. Repayment of financial aid due to over-award situations can now be posted as a charge to the student s account. This eliminates manual preparation of invoices to students. Students are ed the day these charges appear on their account, and the rate of payment on these over-awards has increased dramatically. Updated Loan Collection Software Student Accounts personnel initiated an update of the loan collection software. The software vendor upgraded the software which required purchase of a new server, training and data migration to the new system. The update began Spring 2003 and will be completed in FY2004. The updated software will provide enhanced features for loan collection as well as a new ACH payment option for borrowers. Increased Loan Collections Student loan interest rates were lowered so drastically in FY2003 that student loan consolidation became very attractive to borrowers. The Department experienced a 27% increase in student loan collections due to students consolidating their Perkins loans, payable to UGA, with other subsidized and unsubsidized student loans. This resulted in excess cash in the Perkins loan program, which translates to an increased availability of loan advances to students in the award year. Since interest rates remain low, continued loan consolidations are expected in FY2004. C-138

13 The following graphs illustrate activity on loan funds advanced and collected by the University for the period : Federal Perkins Loans, University Trust Funds, and Emergency Loan Funds Student Loan Advances $2,500,000 $2,000, $1,500, $1,000,000 $500,000 $0 Fiscal Year Federal Perkins Loans, University Trust Funds, and Emergency Loan Funds Student Loan Collections (Principal & Interest) $ 4,000,000 $ 3,500, $ 3,000,000 $ 2,500, $ 2,000,000 $ 1,500,000 $ 1,000,000 $500,000 $- Fiscal Year C-139

14 Federal Perkins Loans, University Trust Funds, and Emergency Loan Funds Student Loans Outstanding $14,000,000 $12,000, $10,000, $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Fiscal Year Common Origination for Pell Grants and Federal Direct Loans In preparation for the award year and the U.S. Department of Education implementation of common origination procedures (data processing file requirements for federal aid), the Student Accounts Department made several changes to the data processing systems for Pell Grants and PLUS loans. The changes to Pell Grant requirements were mostly programming in nature. For the PLUS loan program, the Department began using the PLUS Loan Master Promissory Note in June In using the Master Promissory Note, parents who apply for PLUS loans will only need to sign one note to cover all PLUS loan disbursements while the student is enrolled at UGA. The University already uses Master Promissory Notes for student subsidized and unsubsidized loans. The Master Promissory Note concept reduces the number of notes a borrower must sign during their UGA career and, in turn, reduces the number processed by the staff and forwarded to the loan processor. Growth in Amount of Financial Aid Disbursements The Student Accounts Department disburses federal and state funded loans, grants and scholarships as well as University and privately funded scholarships and loans. During FY2003, loans, grants and scholarships disbursed to student accounts and mailed as C-140

15 remainder checks to students were $149,118,801, presenting a 3% increase over FY2002. The following graph illustrates the growth in financial aid disbursement from : Loans, Grants, Scholarships, and Student Deposits Disbursed $155,000,000 $150,000, $145,000,000 $140,000, $135,000, $130,000, $125,000,000 $120,000,000 $115,000,000 Fiscal Year Summary of FY Goals Finalize Implementation of Upgraded Software for Loan Collection The final testing stages and resulting full implementation of the upgraded loan collection system will be completed in FY2004. By December 2003 Student Accounts anticipates offering automated ACH debit as a new payment method for borrowers who make monthly loan payments to the University. GLB Act As a requirement of new FTC legislation effective May 23, 2003, the University is adopting an Information Security Program for highly critical and private financial information, such as student loans and student accounts. This security program is required to protect all data covered under the Gramm-Leach-Bliley Act (GLB Act). The Student Accounts Department, as well as the remainder of the Bursar s Division, is working with other University departments to finalize the University s Information Security Program, and will complete a self-study to identify and assess physical risks to student financial information. Additionally, the Bursar s Division will be subject to a security audit of all of its electronic information systems, which will be performed by the University s Chief Information Security Officer. C-141

16 Electronic Signature for Federal Direct Loan Promissory Notes The Student Accounts Department successfully tested an electronic promissory note signature system with a few students during FY2003; however, this process will not be fully implemented until FY2004. Under this electronic feature, students will be able to complete their subsidized and unsubsidized loan promissory notes on the web. This will increase efficiency for students and for the Student Accounts staff in terms of collecting promissory notes and delivery of the notes to the federal processor. Multi-Institutional Functionality Based on discussions with Board of Regents staff, it is anticipated that System schools will soon be required to enter into agreements with other System schools to allow for transient registration. This will necessitate programming changes in the Office of Student Financial Aid, the Registrar s Office and Student Accounts. The Bursar s Division will be working closely with those offices to develop procedure and implement programming changes. C-142