SECTION: GENERAL INDEX: A-7
SUBJECT: REPORTING INDEBTEDNESS TO THE STATE
COMPTROLLER
POLICY
This policy establishes procedures to be followed by
departments for the reporting of delinquent debtors to the Texas Comptroller of
Public Accounts (“Comptroller”) in compliance with
Reporting indebtedness to the
Comptroller places the debtor "on hold" with all State of
The Department of Business
Services’ Bursar’s Office at the University of Houston-Victoria (“Bursar’s
Office”) will be responsible for reporting indebtedness to the Comptroller for
students and non-students, ensuring that records are updated throughout the
year as payments are received, and timely release of holds after a debt has
been paid in full.
DEFINITIONS
Application to Report Indebtedness (Form 74-188) - A form filed by a state agency or the University with
the Comptroller, which makes application to report indebtedness qualifying for
treatment under Texas Government Code 403.055. (See References Section for a link to this form.)
On Hold - Designation given
to debtors whom a state agency or university has reported to the Comptroller as
delinquent.
PROCEDURES
Application to Report Indebtedness
The Bursar’s Office is responsible for completing and submitting applications in accordance with the Comptroller’s requirements. The Comptroller will assign a three digit code for use by the University for reporting various types of indebtedness through the Texas Identification Number System (TINS). See the Comptroller’s website at https://fmx.cpa.state.tx.us/fmx/pubs/hold_guide/index.php for requirements.
Criteria for Placing a Debtor on Hold
Depending upon whether the debtor is a student or a non-student, individuals or other entities with any type of indebtedness to the University will have a hold reported to the Comptroller in accordance with the procedures set forth below.
Student Criteria - Prior to applying a new hold, the student will be mailed a minimum of two collection notices via certified mail to his or her last known mailing address, each approximately thirty days apart. The envelope must bear the notice, “Address Correction Service Requested”. During this period, the debtor will be offered the option to complete a repayment plan agreement. If a repayment plan agreement is not arranged within this period, the debt will be turned over to the collection agency and the Bursar’s Office will apply the state hold. The liability reported will include the original debt the student incurred plus any institutional late fees or penalties. The liability reported will not include any fees imposed by third party collection agencies. Additionally, should a student subsequently default on a repayment agreement, the student will immediately be placed on hold and the debt will be turned over to collections.
Non-Student Criteria – Prior to requesting a hold, the department holding the obligation should make reasonable efforts to collect the debt. Those efforts should include sending a letter (via certified mail return receipt requested) informing the individual that if the debt is not satisfied within fifteen calendar days from the date of the letter (hereinafter referred to as the “Due Date”), the debt will be treated as a delinquent debt and will be reported to the Comptroller. If the debt is not satisfied by the debtor on or before the Due Date, the department will contact the Bursar’s Office who will then follow the proper procedures in applying the delinquent debt. The department will then send a second letter to the individual within 30 days after the Due Date, which will inform the individual that the debt has now been treated as a delinquent debt. The second letter will also inform the individual that if he or she fails to satisfy the debt within 15 calendar days from the date of the second letter, the matter will be referred to the University’s legal department, the Office of the General Counsel. The second letter must be sent via certified mail and the envelope must bear the notice “Address Correction Service Requested.” If the debt is not satisfied within 15 days from the date of the second letter, the department will send a copy of the two above-referenced letters and all supporting documentation regarding the debt and any correspondence with the debtor to the Office of the General Counsel for further handling.
Consequences of Being
Placed on State Hold
Individuals
and Other Entities
Individuals or other entities placed on hold will not be eligible to receive or engage in the following activities with a state agency or state public university as long as the person remains on hold:
·
Reimbursement of out-of-pocket expenses;
·
Travel
or Operation Payments;
·
Contracting
with any state agency unless the contract requires the agency’s payments under
the contract to be applied directly toward eliminating the person’s debt or
delinquency.
Additional Consequences Applicable to Students
A student on hold will also have a financial hold (or stop) placed
on his or her account with the University when the unpaid debt was originally
due. A financial stop has various
consequences:
·
Possible withholding of State Financial Aid (Federal Disbursements
are not affected)
·
Inability to enroll in classes at UHV or any other
·
Inability
to receive transcripts.
·
Financial
holds paid by means of personal check are not lifted until the personal check
has cleared the banking process. Financial holds paid by cash, cashier’s check,
money order, or credit card are lifted within 24 hours;
·
Late
payment service fees may be assessed to the account;
·
Credit
and grades for work done may be held and grades may be changed to “W” for students who fail to pay by the end
of the semester;
·
Degrees
may be delayed or not conferred until financial obligations have been
satisfied;
·
Non-payment
by the end of the semester and after written attempts to collect have failed will
result in transfer of the student’s account to an outside collection agency
with assessment of additional collection fees;
·
The
delinquency will be reported to the credit bureau which may adversely affect
the debtor’s credit worthiness.
Assignment of Responsibility
Within the Bursar’s Office, the staff accountant will be
responsible for establishing payee hold records in TINS for both student
delinquent debtors and non-student debtors reported by departments. The following information will be transferred to or entered
in TINS for each debtor placed on hold:
• USAS screens (PHDSUP = setup; PHDCHG = change; PHDREL =
release)
• Texas Identification Number (11 digits)
• Agency Number (UHV = 765)
• Reason Code (three digits)
• Name of debtor
• Hold Effective Date (date the debt was originally due)
• Liability amount
Maintaining
Payee Hold Records
The Bursar’s Office will maintain payee hold records and semiannually monitor and reconcile balances owed by debtors placed on hold. The TINS will be updated by the Bursar’s Office staff accountant to reflect the remaining balance after each payment received by the debtor.
The debtor will not be released from hold until the entire original debt, including any institutional late fees, has been paid in full. When the amount owed has been paid in full, the Bursar’s Office staff accountant will release the hold from TINS.
If a student’s reported debt balance is collected in full by the Comptroller while the student’s account is at a collection agency, the Bursar’s Office will send written notification to the collection agency stating that the debtor’s balance has been collected by the state, and request that collection activity cease and that the account be closed. Any payments received by the collection agency from the debtor after the account has been closed will be sent to the University without any reduction for collection fees. The Bursar’s Office will initiate refunds to the student for overpayments.
REFERENCES
Application to Report Indebtedness (Form 74-188)
http://www.window.state.tx.us/taxinfo/taxforms/74-188.pdf
Approved:
Signature Obtained 03/25/08
Tim Hudson, Ph.D. Date
President
Originating Department: Business Services Department
Next Review Date: January 2011