FEE RETRIEVAL POLICY & PROCEDURE

Transcription

1 Castlemaine Steiner School & Kindergarten FEE RETRIEVAL POLICY & PROCEDURE Number of pages: 7 Appendices: 1 Forms: Fee Agreement Application Date prepared: July 2017 Status: APPROVED Approved/adopted by: Date approved/adopted: 16/08/2017 Review by: July 2019 Review date Monitored by: Business Manager Document location: X:\Policies & Procedures\POLICIES\FINAL DRAFT(for consultation)\policies word doc\.docx Sourced from/author: Neil Bowker Related documentation: DOCUMENT HISTORY Version Date Nature of Amendment IMPLEMENT- ATION/ COMMUNIC- ATION Version Date Method Notes Castlemaine Steiner School & Kindergarten Page 1

2 PURPOSE AIMS The Fee Retrieval Policy and Procedure states Castlemaine Steiner School & Kindergarten s position on the collection of school fees, and sets out the process for fee retrieval. Through the implementation of the Fee Retrieval Policy and Procedure CSSK aims to collect school fees in a timely and fair manner, taking into account the financial sustainability of the school, individual circumstances of families, and the wellbeing of children. This policy establishes a framework to: Enable a transparent and consistent approach in relation to the payment of fees for all families at the school; Ensure and maintain the timely payment of school fees to a standard better than industry benchmarks; Minimise the resources required for debt management; Monitor and report on fee retrieval performance. DEFINITIONS AND/OR LEGISLATION RATIONALE Relevant Legislation Competition and Consumer Act 2010 Policies and Procedures to be read in conjunction with this policy This policy should be read in conjunction with other relevant school policies, in particular: Fees Policy Finance Policy School fees accounts for 36 percent of school income. It is important for the financial sustainability of the school that there are effective and efficient processes in place to ensure that school fees are paid on time and in full. It is equally important to recognise that the financial capacity of families varies between families and over time, so payment processes need to be flexible to accommodate this. This Fee Retrieval Policy is designed to balance the financial needs of the school with fairness to families and community expectations of the school. POLICY The school will have in place procedures to minimise fee default at all stages of the enrolment, billing, payment and collection process. The procedures will enable: Parents/guardians to: o Clearly understand their responsibilities for payment of fees; o Understand the billing process; o Know options for payment of fees; o Know if their account is in arrears; o Understand the consequences of non-payment of fees; Relevant staff to o Understand the system for administration of fees and fee retrieval; o Deal with non-payment of fees; o Maintain confidentiality in regard to financial matters. Castlemaine Steiner School & Kindergarten Page 2

3 PROCEDURE 1. Admission As a minimum in regard to fees, during the admission process for each child admitted to the school, the parents / guardians must: pay an Entry Bond on offer of enrolment; sign their acceptance of the Conditions of Admission; be given published materials setting out the fees and their obligations for paying the fees; if the child is the family s first child at the school, have an appointment with the Business Manager to ensure they understand their obligations and have an opportunity to ask questions. Conditions of Admission The Conditions for Admission must state that the signatory / signatories of the form accept liability in regard to all school fees including application fee, entry bond, tuition fees, additional charges, administration fees, debt collection fees and other fees and charges. Where more than one signatory applies, signatories are jointly and severally liable for all fees and charges. Wherever possible both parents should sign the Conditions for Admission form. Published Materials Published materials must be made available to parents during the admission process setting out: Current school fee rates for each year level; Other fees and charges; Late payment charges; Discounts such as sibling discount; Assistance for financial hardship; School s rights and obligations in regard to fee increases; Billing process; Payment options; Default process and consequences; Bond refund conditions on withdrawal. Business Manager Meeting The Business Manager will ensure that all finance related information has been received and signed off as read and understood by parents. Castlemaine Steiner School & Kindergarten Page 3

4 PROCEDURE 2. Postadmission The policy relating to fees, charges, discounts and assistance is set out in the Fees Policy. The Fees Policy and the Fee Retrieval Policy are closely interrelated. In particular the affordability of fees affects the level of late payments and non-payment of debts, while the timely and complete collection of fees reduces the need to increase fees. Any change to the fee structure and levels therefore needs to take into account the impact of the change on fee retrieval. The school will provide reasonable notice to parents of any change in finance arrangements that may impact on them. PROCEDURE 3. Billing and Payment School fees will be invoiced in advance each term prior to the start of the term. Additional charges will be invoiced in arrears and added to the school fee invoice. The School will accept payment by Direct Debit, EFT into the designated bank account, credit card, cheque, or cash. Invoices are payable in full by the Friday of Week 3 of the term being invoiced unless the debtor has entered into an alternative arrangement with the School. Alternative arrangements can be a Fee Agreement, Direct Debit Request, of notice of late payment. Fee Agreement A debtor can enter into a Fee Agreement with the school on the Fee Agreement Application Form signed by the debtor and approved by the Business Manager. The Fee Agreement will encompass any arrears and fees for the period of the Fee Agreement. Current fees and charges should generally be cleared by the end of each term or may be averaged out and cleared by the end of each year. At the discretion of the Business Manager where there is evidence of financial hardship, the instalments can be calculated to allow deferring part payment by weighting payments beyond the end of the current term but before the end of the current year, or beyond the end of the current year provided that this is not longer than the period of enrolment of the child(ren). Direct Debit Request (DDR) Payment by DDR is an arrangement whereby a debtor gives permission to the School to collect an agreed amount of funds from the debtor s bank account or credit card on a recurring basis. Where the DDR is to cover current fees only, the debtor may complete a DDR form without a Fee Agreement. Where the DDR is to cover any arrears or extend payment beyond the current school year, the DDR form must be accompanied with a Fee Agreement and is subject to approval by the Business Manager. Notice of Late Payment A debtor may notify the school by phone or that their payment will be late without the requirement to submit a Fee Agreement, as long as the payment is no more than four weeks past the due date. For periods of more than four weeks a Fee Agreement is required. PROCEDURE 4. Departing Families Families leaving the school will be billed for any uncharged fees before their children s last day where possible. A final invoice showing additional charges accrued during the term and the final balance will be sent to the parents in the last week of school for: Castlemaine Steiner School & Kindergarten Page 4

5 students completing Class 8 without any current siblings remaining at the school, students being withdrawn before completion of Class 8 without any current siblings remaining at the school. Any new charges added to the final invoice will be payable three weeks after the child s withdrawal from the school. Overdue balances remain payable immediately. Departing families may request or be offered a number of fee agreement options if they are unable to settle their account in full by the due date: Payment by DDR of 12 monthly payments of one twelfth of the balance or 26 fortnightly payments of one twenty-sixth of the balance; Payment by DDR of 36 equal monthly payments or 78 equal fortnightly payments of the outstanding balance plus a premium of 9.38% of the initial outstanding balance, representing an annual interest rate of 5.9% of the declining balance In cases where evidence is provided of significant financial hardship, a debtor may request to have an alternative fee agreement considered for a temporary period of up to twelve months, to be reviewed at the end of the period. Additional support under the School s Fees Policy, such as Fee Assistance, may also be requested. PROCEDURE 5. Default Current Families on Payment by Invoice Parents of current students who are not on a Fee Agreement or DDR and have not paid their invoice in full by the due date will undergo the following process in order to obtain payment or Fee Agreement: Due Date: SMS reminder Due Date + 1 week: SMS, and mail or reminder Due Date + 2 weeks: Phone, and mail or reminder, with notification that late fee may apply if not paid Due Date + 3 weeks: Phone or SMS for appointment with Business Manager Last week of term: The account will be considered to be in default. Notification by letter that enrolment may be suspended, and $25 late fee applied First week of following term: Account referred to Principal for decision whether to suspend child(ren) and refer account to debt collector. Principal will take into account whether any extenuating circumstances exist that justify continuing the enrolment of the child(ren). Current Families on Fee Agreement Payments for current students who are on a Fee Agreement will be monitored to ensure that Fee Agreements are adhered to. Action for minor variances from the fee agreement will be at the discretion of the Business Manager, and may include a reminder, request to catch up, deferral, or no action. The account will be considered to be in default for parents on a fee agreement when: Weekly or fortnightly payments fall behind by an amount totalling two payments without notice; or Monthly payments fall behind by two weeks or an amount totalling one payment without notice. When an account is in default the process for current families on a fee agreement shall be: Immediately an account becomes in default the debtor will be notified and given one week to rectify the default, which may involve payment in full of arrears or renegotiation of the fee agreement. The debtor will be further advised a late fee will be applied after one week if the account is not rectified; One week after default, if the account has not been rectified a $25 late fee will be Castlemaine Steiner School & Kindergarten Page 5

6 applied to the account, the Fee Agreement will be cancelled and the whole balance will become due. The debtor will be advised of the late fee and the cancellation of the Fee Agreement and given a further week to pay in full or renegotiate a new Fee Agreement. Two weeks after default if neither of these actions have occurred, the debtor will be given an appointment with the Business Manager. Four weeks after default if there is no satisfactory resolution the Account will be referred to the Principal for decision whether to suspend child(ren) and refer account to debt collector. The Principal will take into account whether any extenuating circumstances exist that justify continuing the enrolment of the child(ren). Former Families The criteria for default for former families is the same as for current families, above. When an account is in default the process for former families shall be: Immediately an account becomes in default the debtor will be notified and given one week to rectify the default, which may involve payment in full of arrears or renegotiation of the fee agreement in line with Section 4 above. The debtor will be further advised of the consequences of remaining in default; One week after default, if the account has not been rectified a $25 late fee will be applied to the account. The debtor will be advised of the late fee and given a further week to bring their payments up to date or renegotiate a new fee agreement in line with Section 4 above. The debtor will be further advised of the consequences of remaining in default; Two weeks after default if the account remains in arrears, the account will be referred to the school s debt collection agency, who shall manage the account thereafter. The costs of debt collection will be passed to the debtor. Castlemaine Steiner School & Kindergarten Page 6

7 APPENDIX A Date: FEE AGREEMENT APPLICATION Applicants name(s) Phone contact: Address: Name(s) of children at school: This application relates to: 1. an amount of $ currently outstanding. 2. remainder of this year s school fees of approx. $ 3. next year s school fees of approx. $ 4. other The amount outstanding will be paid to the school by the following arrangement: I/we request that the school agrees to accept payment of fees by the payment schedule below: OR Instalment amount $ Payment frequency Weekly Fortnightly Monthly How do you intend to pay Number of instalments Direct Debit please complete DDR form overleaf EFT Cheque School office Commencing on / / Finishing on / / I/we understand that this application must be authorised by the Business Manager and is binding when accepted by the school. In line with the School s Fee Retrieval Policy failure to adhere to this payment schedule without communication with the School and subsequent arrangements with the Business Manager may result in cancellation of the enrolment and referral to the school s debt collector at the debtor s expense. (to be signed by parent(s)/guardian(s)/person(s) responsible for fee payments) Authorised by the Business Manager Date Fee Agreement Application 2017 v1a