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Meeting Minutes: Regents Advisory Committee on Accounts Receivable (RACAR)

Date: March 19, 2004
Location: Macon State College
Attendees: See Attachment A (PDF)

This was a joint meeting of the RACAR and RACSFA committees. The meeting was called to order by Donja Tripp (Chair of RACAR) and Pat Simmons (Chair of RACSFA).

Joint Session Agenda Items

HOPE Scholarship Program-Legislative Changes

Bill Flook from the Georgia Student Finance Commission provided information about HOPE changes proposed by both the House and Senate.

HOPE Invoicing

Bill Flook and Bob Lahl from the Georgia Student Finance Commission, provided information about the HOPE Invoicing project. A state audit questioned the way HOPE funds are disbursed to schools. An electronic invoicing system is the solution.

The current funding system uses the allocation method. This method works as follows:

  • Schools can request funds as early as 13 days prior to term begin date up to the amount of their allocation.
  • Schools report disbursements within 45 days.
  • If awards are greater than allocation, the allocation is increased.
  • School retains any excess funds until year-end reconciliation.

The new Invoicing system will work as follows:

  • Invoicing will be electronic through the Surfer System.
  • Schools can submit invoices as early as 15 days prior to term begin date.
  • Invoice will list each student.
  • System schools must break out tuition, fees and books.
  • Funds disbursed to schools within two business days of invoicing.
  • Schools can control disbursement method. The default method is immediate disbursement, but each individual school has the option to turn is off the default and turn back on.
  • Supplemental invoices and adjustments can be submitted anytime during the current term.

Reconciliation will occur at the end of each term. This term reconciliation means that the school acknowledges GSFC's disbursement figures. This will be an electronic acknowledgement by the school's Financial Aid Director. Funds for future terms will not be disbursed by GSFC until prior term reconciliation is complete. There will also be a final year end reconciliation.

There are two pilot schools using the new invoicing system: Kennesaw State and Dalton State. The new invoicing system will be implemented statewide for Fall 2004. There are several scheduled test files exchanges and training sessions statewide. The testing of the Surfer System will start the end of March and go through May 14th. The GSFC is committed to making this new system work. Schools should direct all questions and requests to Amanda at OIIT.

Summary of Electronic Invoice using the Surfer System:

  1. Surfer Sign on.
  2. New main menu option = Hope Invoice.
  3. File Process
    1. School sends file to GSFC
    2. GSFC sends response file back to school
  4. Surfer gives several invoicing options
    1. Lock and Unlock disbursements
    2. Cannot lock/unlock if GSFC has locked it (if locked contact Bill Flook)
  5. On main menu there is a "Inbox", click to FTP file.
  6. View Download Reports
    1. Files will be date/time stamped
    2. Allows you to send multiple files within one day
    3. Files are processed within 1 hour for response back to the school
    4. Multiple report types generated, can pull reconciliation files
    5. Will also get list file for all students contained in the EFT

Schools also have ability to make adjustments to their data in Surfer. However, the preferred method is electronic file exchange. If you make on-line corrections you must ALSO go to your system and make corrections.

To resolve name issues, GSFC will take data and do SSN match, if no match then go to name; if no match, go to date of birth. If one of the 3 matches, GSFC will process the record and update. If none of the 3 match, record will be rejected. Search mechanism allows for search by name, SSN, etc.

Bob Lahl asked for school feedback on Invoicing System on SURFER. He is open to suggestions for making it workable and easy for schools to use. After Bob's presentation there was time for questions/discussion:

  1. Schools expressed concerns about how Banner is pulling the data to create the invoice. User documentation and test pieces are to be sent to schools during the schools beta test period. OIIT is still working on the reconciliation piece.
  2. Schools asked how to invoice on students with military waivers, both instate and out of state.
  3. Schools requested a state-wide reconciliation tool which can be used by all schools.

Multi-Institutional Functionality (MIF)

Tonya Lam from BOR Office provided an update on MIF. Prior to presentation of those details she gave a brief update on ssn conversion. Has your campus made plans for conversion? The USG website http://www.usg.edu/usgweb/sitcap/gabest_banner/dd/SSN to Unique ID Project Plan.pdf provides documentation for ssn conversion. Schools must get approval from the BOR for their conversion plans. Send a copy of the campus plan to Randall Thursby at BOR.

Tonya Lam provided a MIF timeline/handout. Please refer to Attachment B (PDF). MIF is a high priority at the BOR.

First document on specifications should be delivered April 2004 and MIF group will convene to analyze and review.

  • Beta test sites will be solicited in April 2004.
  • September - December 2004 will be beta testing period.
  • January - March 2005 will be used to work out bugs and write documentation.
  • March 2005 is proposed time for the system to be available for production at all institutions.

Discussion and questions followed the presentation of the timetable.

  1. A brief summary of MIF was given. The MIF intent is that aid is awarded at the home institution. Registration for all credits will be at the home campus. The student bill will be generated at the home campus, paid at home campus, and at term end, funds will be exchanged between home campus and campus providing instruction. Refunds and Return of Title IV will be made based on credits at both home and host institutions.
  2. What will be the rates charged for transient hours? There will be a tiered rate based on institution type. There is a subcommittee on fee assessment that will make a formal proposal. Initial thoughts are that the 12 hour cap will not apply, student will be charged for home campus hours plus the transient hours at the tiered rate, plus a $10/hour fee for each hour of transient credit. Questions such as fees normally charged by the home institution (e.g. technology fees, course fees, etc) are still under discussion.
  3. What can campuses do to get ready for MIF? An ombudsman was established on each institution (i.e. the person established for this purpose at time of semester conversion). At some institutions this is the Registrar at other institutions it may be an Academic Affairs representative. MIF project information can be found at the project management website, SITCAP, http://www.usg.edu/usgweb/sitcap/.
  4. There were questions about start and end dates for Vocational Rehab and VA benefits. BOR is planning to use guidelines established for Ecore with theses 3rd parties.
  5. BOR has contacted agencies such as the US Department of Education and SACS regarding MIF and the University System. GSFC has also been contacted regarding HOPE issues.

Post Secondary Options (PSO)

Reimbursement at 73.5% for Spring 2004 is still questionable. Funding for 2005 is also questionable.

Regents Remediation Coursework

Earlier in the year the BOR advised schools to exclude hours enrolled in Regents remediation coursework for the purposes of financial aid disbursement. BOR has written a proposal to the US Department of Education, which would allow federal aid to be disbursed. BOR is waiting to hear back on this proposal. Until a conclusion is reached, schools cannot disburse federal aid on enrollment in remediation hours.

Data Collection/Data Warehousing

Collection of financial aid data in the data warehouse is already done annually. Collection of fee waiver data from A/R will commence for summer 2004. The SIRS contact at each school becomes the Academic Data Collection contact.

To provide the fee waiver data in the required format, schools will need to map their fee waiver codes to the BOR listing of fee waiver codes.

BOR is asking schools to look at their FARS report and explain abnormalities and inconsistencies. Send comments to: Anoush.Pisani@USG.EDU.

Concept behind the data warehouse is that tools will be developed so schools, in addition to BOR, can get the data and use as needed.

Miscellaneous
The Regents Opportunity Grant will no longer exist.

The committee members adjourned for lunch. After lunch, RACAR and RACSFA members met separately.

RACAR Afternoon Session Agenda Items

Write-Offs

Changes in state legislation effective July 2003 will impact write-off and reserve procedures at system schools. There is no direction yet regarding journal entries for write-off in PeopleSoft. This is expected in the year-end training later in the spring.

Schools are still required to perform due diligence on collections and document such. Valdosta State requested state audit to provide definitions on due diligence. State Audit representatives were hesitant to provide definitions but did not want to take it to the extent of Perkins due diligence.

It was suggested that perhaps RACAR should request some official guidance on definitions of due diligence, etc. from state audit or BOR Central Office.

N. Georgia College stated they were sending accounts three months old to collections and if not collected, recalling them within a specified period of time. Another school suggested that procedures could be implemented whereby students sign statements, at the time of admission, that they understand their responsibility for paying their account and that unpaid debts are subject to collection efforts, etc.

Donja Tripp said she would research and gather all information and report back to the RACAR members.

Tuition Payment Plans

At the December 2003 RACAR meeting the question of school interest in payment plans was addressed. A vote was taken to determine the level of interest before further discussion was held with the BOR. The vote results were:

Number of schools interested in plans that are "Pre-payment Plans" - 11
Number of schools interested in plans that are "Post-payment Plans" - 7
Number of schools not interested in either plan - 14

Based on the voting results, this issue is tabled.

Outsourcing Refunds

Tamara Lane from State University of West Georgia provided some information on their experience using Higher One to disburse refund checks/ACH to students. Kennesaw State is also using Higher One.

Tamara reported that the students love it. The school started this process in January 2004. The quickest disbursement method is when the student chooses to have the funds deposited into their Higher One Account (which is a MasterCard debit card). A paper check takes approximately 5-7 days and ACH takes 3-5 days.

In January 2004 they had about 4,000 disbursements to make. Aid is not disbursed until the last day of drop/add, so first file was not sent to Higher One until after drop/add. It took three times to get the file to Higher One but students still got their funds earlier than if the school had made the disbursement. About 63% chose disbursement to their Higher One Account, 24% chose paper check, 9% selected ACH, and 4% did not activate their card. There is a 60-day time out period, if students don't activate. Then Higher One sends the funds back to the school and the school disburses.

Higher One charges the institution $3/paper check and a replacement fee if student looses their Higher One card. Eventually the Higher One card will be the campus card for students and for faculty/staff/payroll.

Rita Adams from Kennesaw State reported their experience with conversion to Higher One in February 2004. About 26% of students have not activated their card and it will be difficult to motivate students to do so until summer.

Schools cannot default the student to paper check. Some students complained to Clark Howard that the school was forcing them to use Higher One, but since students are given a choice regarding disbursement method, the students could not substantiate the claim.

State University of West Georgia is not completely happy with customer service but Higher One is working on it. Auditors at SW Georgia and Kennesaw State approved of this disbursement process.

Gramm-Leach-Bliley Act

Holley Schramski provided information on the Gramm-Leach-Bliley Act (GLBA) that addresses the security of non-public financial information. Under a second set of regulations the Federal Trade Commission adopted under GLBA, effective May 2003, institutions of higher education must implement a comprehensive written information security program that outlines the school's compliance with GLBA. Schools must have a written information security program, appoint a program coordinator, must identify information security risks (administrative, physical and technology risks) and must have a plan to eliminate those risks and monitor compliance with the policy.

Good information on GLBA and sample written information security documents can be found at the following websites:

Several USG schools also have information security plans on their websites. Emphasis was placed on the importance of completing a risk assessment campus-wide but especially in the Bursar/Student Accounts office given the extent of sensitive data these offices deal with on a daily basis.

Part of Term Functionality for Refunding

Rich Loftus requested that anyone with functional documents on "part of term refunding procedures" provide them to either he or Amanda. They are working with SCT to provide a solution for these refunding issues.

Other Fee Assessment Items

Banner Version 5.6 and 6.0
Rich Loftus reminded schools that version 5.6 is not mandatory, but if you convert there are a few steps to complete before moving to 5.6. Version 6.0 is mandatory and the upgrade must be completed by the end of December 2004.

Fee Assessment Training
Fee Assessment training will be held at Macon State in April. The fee assessment module has new fields for distance education and you can charge by instructional method, this integrates with WebCT. BOR has approved a distance education differential. Donja Tripp asked schools to email unique fee assessment situations that can be used for training.

Transition from PeopleSoft A/R detail to Banner A/R detail for all Receivables
A/R in Banner will now be used as the subsidiary ledger for all school receivables. All A/R reports will come from Banner. The goal is to not use the PeopleSoft A/R intermediary table BOR_detail. Valdosta State said that getting rid of that table could cause problems. Georgia State has made this transition and it is working well.

Rich Loftus reminded schools that state auditors will be expecting the A/R detail to equal the accounts receivable balance in the accounting module. If the detail does not tie to the balance, the auditors will issue a finding.

Credit Card Processing
BOR is reviewing a contract with Touchnet to provide gateway, webcheck(ACH), and off-site housing of card data for system schools. If the Touchnet solution is adopted, OIIT will no longer support GaNet.

Other A/R functions
There has been discussion on how to improve billing and payment processing for retiree health insurance. Some schools currently offer electronic debit for retirees (ACH). There is some discussion that TRS could offer payroll deduct instead of schools billing and collecting it.

Other Business

According to RACRA bylaws, new officers are elected at the spring meeting. Since RACRA was established in December 2003, Rich Loftus made a motion that the current officers be retained until Spring 2005. Tracy Martin seconded the motion. The Committee voted in favor of the motion.

Minutes from the Fall 2003 meeting were approved.

There were no additional old business items to discuss.
No new business items were presented.

In closing Donja Tripp encouraged RACAR members to use the RACAR listserv to ask questions and share information. To post your question or other information, email: RACAR@LISTSERV.UGA.EDU.

The meeting was adjourned.

Minutes submitted by Holley Schramski, Secretary.

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