not mobile

Business Procedures Manual

10.6 Control Standards

Print friendly

10.6.1 Maintenance of Records

Physical Security

The physical paperwork providing proof of the receivable, and the computerized records recording the receivable and the continuing balance, should be stored according to current Records Retention Standards published by the State of Georgia. Even though records retention standards may allow destroying of paper documents and related electronic records after a certain period of time, institutions should be diligent in protecting all physical paperwork and electronic records that provide proof of the receivable. These paper documents providing proof of receivables may be very valuable in future collections, and may be checked during audits by state and internal auditors. If electronic archiving of data systems will destroy or make inaccessible these receivable records, then the institution should print and file this information for use.

Reference Numbers

All source documents will carry reference numbers that will appear in the computer-produced records. These reference numbers will be consecutive within each of the document series involved. The numbered documents will be filed in the Accounting office, or will be available for review by the Accounting office.

Breakdown of Control Standards

Any material breakdown of the record-keeping capability will be reported in writing to the Vice Chancellor for Fiscal Affairs.

return to top


10.6.2 Reconciliation and Review

Aged listing of individual receivable balances will be prepared at least quarterly and will reflect the results of billing and collection follow-up activity. Management above the level responsible for supervising the billing and collection follow-up function will review old dated balances. The Accounting office will ensure that subsidiary ledger records (including those maintained outside the Accounting office) are reconciled to the control account balances at least quarterly.

return to top


10.6.3 Division of Responsibility

Personnel responsible for the following activities will be functionally divided and the divisions maintained as follows:

  1. Establishment of credit.

  2. Recording of charges.

  3. Recording of cash collections. Only cash collection stations will record cash, and the recording of cash will be the only function related to receivables performed by cash collection stations.

  4. Approval of write-off requests and other types of non-cash credits, such as cancellations. Non-cash credits will be approved by management levels above the supervisors of the functional divisions involved.

  5. Processing of documents. Input data will not be originated by computer facilities and operations personnel.

  6. Accounting.

    • All control account input will be approved and transmitted to computer facilities and operations by the Accounting office.
    • A subsidiary record of balances written-off as uncollectible will be maintained.
  7. Billing. Billings to individual debtors will be accessible only to billing activity personnel.

  8. Collection follow-up. Input data will not be originated by collection follow-up personnel.

return to top