University of Illinois System
Policies & Procedures

5.4.2 Collect Delinquent Accounts Receivable

Policy Statement

The University of Illinois System is subject to and complies with the Illinois State Collection Act of 1986 and the Statewide Accounting Management System (SAMS) Subsection 26: Accounts Receivable Reporting. These laws require the system to follow the state's clearly defined collection process for delinquent accounts.

University Bursar performs the steps below for units that use Banner AR. However, units that do not use Banner AR must still comply with these requirements.

Collection agencies are paid on a contingency basis for amounts collected, and this collection expense is charged to your unit.

Procedure

To collect delinquent accounts receivable:

  1. Make every effort through internal activities to collect payment in full:
    • Locate, analyze, and verify current customer addresses and phone numbers (skip trace).
    • Send past-due notices to the customer by mail, email, or phone.
    • Place receivable balances of $1,000 or more with the Illinois Comptroller's State Offset System when they are delinquent for 180 days. The State Offset System deducts the amount owed from Illinois wages, tax refunds, lottery winnings, and other state payments.
  2. Place accounts with an external collection agency when internal collection efforts have failed. The agency:
    • Repeats internal collection activities
    • Evaluates the cost effectiveness of litigation and makes recommendation to the system
  3. If the agency is unable to collect the account within one year, recall the account from that agency and place it with a second agency. The second agency:
    • Repeats internal collection activities
    • Evaluates the cost effectiveness of litigation and makes recommendation to the system
  4. If the second agency is unable to collect the account within one year, recall the account from that agency and place it with a third agency. The third agency:
    • Repeats internal collection activities
    • Evaluates the cost effectiveness of litigation and makes recommendation to the system
  5. If the third agency is unable to collect the account within one year, recall the account from that agency and write it off:
    • Review and certify all write-offs for less than $1,000.
    • Submit to the State of Illinois Attorney General's Office for approval of all write-offs of $1,000 or more.
    • Write off all accounts approved for write off and request that the Illinois Comptroller's Office remove them from the State Offset System as applicable.

Additional Resources

Illinois State Collection Act of 1986
Statewide Accounting Management System (SAMS)
Allowance for Uncollectible Accounts
Contact University Bursar (aroperations@uillinois.edu) to request collection assistance for older accounts that were not billed in Banner AR.

Last Updated: May 23, 2019 | Approved: Senior Associate Vice President for Business and Finance | Effective: March 2010