Meeting Minutes: Regents Advisory Committee on Accounts Receivable (RACAR)
Date: April 12, 2006
Location: Clayton State University
Meeting was called to order by Debbie Powell, Chair.
The meeting of the Regents Advisory Committee on Student Accounts Receivable was convened at 1:15 p.m. Clayton State University by Debbie Powell, Chair, following a joint session with corresponding committees on financial aid and on registration and admissions (see agenda).
There was a discussion of the Board of Regents contract with Higher One as a third-party servicer for student refunds. It was pointed out that the contract makes Higher One’s service an option for system institutions, not a requirement. While some institutions already contracting with Higher One were very positive about the service’s efficiency, saving of staff time and high levels of student satisfaction, others complained of the fee structure: $5.00 per refund check issued ($10.00 in some cases), $5.00 for each refund reversal, and $15.00 billed to the institution for the replacement of each lost debit card. The offsetting income from use of the Higher One debit card is negated if students use the card to withdraw all of their cash immediately. It was noted that institutions can be billed for card replacement for a student who has graduated if the student continues to use Higher One’s banking services. It was suggested that schools using Higher One’s services who are interested in the contract BOR has negotiated get in contact with Mike McClearn at the BOR for more details.
In response to a question from Rich Loftus, it was determined that no system unit has yet implemented the Georgia BEST model for direct deposit, which is based on long-standing practice at Georgia Tech, Georgia State and the University of Georgia. It was noted that a potential problem with the model is the presence of personal banking information in the institution’s database. Lisa McCleary reported that at the University of Georgia direct deposit is hosted by Touchnet, eliminating the need for local storage of banking information.
Rich Loftus led a discussion of the BOR requirements for the reserve and write off of uncollectible accounts. Some expressed the opinion that the requirement to reserve receivables after 120 days is unreasonable. Rich noted that the Business Procedures Manual’s reference to accounts “probable for collection” leaves some room for interpretation. It was pointed out that auditors will accept a list of receivables as backup for the reserved amount.
Rich Loftus pointed out a conflict between the scheduling of the year-end training conference at the end of April and the need to produce month-end reconciliation reports dated April 28. He stated that the Regents audit staff will accept reports dated May 1.
The group entered into a more detailed discussion of the new University System contract with Pearce and Pearce for student insurance, which had been addressed earlier in the joint meeting. The insurance is mandatory beginning in the coming fall semester for certain students, including international students, graduate assistants, graduate students receiving waivers of all tuition, and undergraduates in programs requiring health insurance. It was stated that the Board of Regents wants the annual premium to be charged to student accounts in Banner in two installments, one for the fall semester and one for spring and summer. Students attending only summer classes will be charged a pro-rated portion of the spring/summer fee. Students who withdraw from all classes will not receive a refund but will remain covered for the paid period. Schools will be required to provide the insurer with a preliminary roster within 60 days of the beginning of the semester and a file roster within 90 days. The contract requires that the insurer receive 80 percent of the total premium within 60 days of the beginning of the semester. Students will be allowed to request a waiver from the insurance requirement based on criteria agreed on by the insurer and the Regents. The request will be filed on the insurer’s website and will receive a response within 24 hours. Many details are unknown, and Carol Payne offered to take the lead in exploring some of the issues.
Amanda Marshall noted that OIIT is aware of the requirement and hopes to provide tools to help institutions administer it, but is facing a tight production schedule and little lead time. She recommended that the group develop a best practice, and Ms. Powell appointed Tamara Lane, Rita Adams, Susan Crozier, Carol Payne, Dana Turner, Kay Owens, Van Hope, Penny Hunter, Amanda Marshall, Karen Nunn and herself to serve on a committee to begin that process.
The group was asked if the new HOPE/Title IV on-line student authorization is functioning as intended by enabling the issue of HOPE Books checks in the full amount for those students who do not provide authorization. North Georgia and Georgia College reported that they are still getting a reduced amount. There were also reports of student confusion. Amanda Marshall noted that the application of payments process has been rewritten to accommodate the on-line waiver and should function properly.
In response to an agenda item, the group was directed to the Banner form SLARASG as a means to post monthly rental charges on student accounts.
Carol Payne reported that Georgia Tech has gotten approval from auditors for a 60/40 division of summer revenues between current and future years.
The nominating committee recommended Lisa McCleary, University of Georgia, to serve as chair; Julian Veal, Augusta State University, as vice-chair; and Jackie Lovejoy, Gordon College, as secretary. The recommendations were approved by the group unanimously.
There being no further business, the meeting was adjourned.