Section 10 Introduction
(Last Modified on April 3, 2019)
The University System of Georgia (USG) operates in a complex business environment whereby revenues are generated from exchange and non-exchange transactions. Effective management of any accounts receivable resulting from these revenue generating activities is important to the financial health of the USG.
Article VII, Section IV, Paragraph VIII of the State of Georgia Constitution provides as follows:
- “The credit of the state shall not be pledged or loaned to any individual, company, corporation, or association.”
By virtue of this constitutional provision and related Attorney General Opinions, departments and agencies of State government, including the USG, are limited as to the extension of credit terms and must be judicious in the extension of billing terms and management of accounts receivable.
In order to effect prompt collection of outstanding receivable balances and minimize credit losses, each institution must maintain a diligent program for managing accounts receivable. The management function consists of the granting of credit only when allowable, prompt billing for accounts, analyzing outstanding accounts (aging), implementing and maintaining collection procedures, and providing for uncollectible balances.
This Section establishes guidelines for the establishment, management, and collection of accounts receivable. Each institution must comply with regulations regarding billing, collections, and write-off of uncollectible accounts.↑ Top