1. Non-Student Accounts Receivable Julie Justice East Carolina University

2. Non-Student, Non-Patient A/R  Non-Student-  Not billed through Cashier’s Office  Non-Patient  Not billed through Division of Heath Sciences Depositary Services (HSDS)  Debtors include:  Individuals  External organizations  Businesses/vendors  Other state agencies

3. University Hospitals/ Division of Health Sciences  Collection Agencies: Unless it can be shown not to be cost effective, agencies and institutions shall contract with collection agencies to collect past-due accounts. The State has contracted through the Office of the Attorney General, with outside collection agencies to collect all statewide account receivables with the exception of University hospital accounts and UNC physicians and associates.  Refusal of Services: Agencies and institutions shall develop internal policies and procedures for delaying or withholding certain state services to persons who refuse to pay their debts. This policy shall not be interpreted to be in conflict with the policies of any State-supported hospital and shall not be the basis of denying necessary mental health or medical assistance or other similar services deemed necessary under Federal or State laws to any individual.  Interest and penalties. § 147-86.23: A State agency shall charge interest at the rate established pursuant to G.S. 105-241.21 on a past-due account receivable from the date the account receivable was due until it is paid. A State agency shall add to a past-due account receivable a late payment penalty of no more than ten percent (10%) of the account receivable. A State agency may waive a late-payment penalty for good cause shown. If another statute requires the payment of interest or a penalty on a past-due account receivable, this section does not apply to that past-due account receivable. This section does not apply to money owed to the University of North Carolina Health Care System or to East Carolina University's Division of Health Sciences for health care services, to the North Carolina Turnpike Authority for money owed to the Authority for tolls, or to the North Carolina State Health Plan for past-due account receivables related to premiums and claims payments.  Use of AG’s § 147-86.11: The University of North Carolina Health Care System and East Carolina University's Division of Health Sciences may turn over to the Attorney General for collection accounts owed by patient  REINSTATEMENT OF HOSPITAL SETOFF DEBT COLLECTION AGAINST TAX REFUNDS AND LOTTERY PRIZES SECTION 12I.4.(a) G.S. 105A-2(2) reads as rewritten: "(2) Debt. – Any of the following: following, except as limited in sub-subdivision (f.) of this subdivision:  f. For any school of medicine, clinical program, facility, or practice affiliated with one of the constituent institutions of The University of North Carolina that provides medical care to the general public and for The University of North Carolina Health Care System and other persons or entities affiliated with or under the control of The University of North Carolina Health Care System, the term "debt" is limited to the sum owed to one of these entities by law or by contract following adjudication of a claim resulting from an individual's receipt of hospital or medical services at a time when the individual was covered by commercial insurance, Medicaid, Health Choice, Medicare, Medicare Advantage, a Medicare supplement plan, or any other government insurance."  SEDCA: § 143-553: Conditional continuing employment; notification among employing entities; repayment election.  (a) All persons employed by an employing entity as defined by this Part who owe money to the State and whose salaries are paid in whole or in part by State funds must make full restitution of the amount owed as a condition of continuing employment; provided, however, that no employing entity shall terminate for failure to make full restitution the employment of such an employee who owes money to the University of North Carolina Health Care System or to East Carolina University's Division of Health Sciences for health care services.

4. Required by Law  Office of State Controller and Office of Attorney General requirements  Under G.S. §147-86.21:  State agencies are responsible for collecting accounts receivable owed  State agencies shall develop policies and procedures for the management and collection of accounts receivable that are consistent with statewide policies and procedures adopted by the State Controller  State agencies shall provide the State Controller a complete report of the agency’s accounts receivable at least quarterly or more frequently as required by the State Controller

5. Current vs Delinquent  Determined by department policies  Due date/terms of invoice  Grace period as defined by management  An extended time period as stated in a loan or Promissory Note  Once an account is considered delinquent and past due, the account in now subject to formal collections.

6. Collection Techniques  Formal Demand Letters  Submission to the OAG via the NCDOJ web Portal  Collection Agencies  Set Off Debt Collections (SODCA)  State Employees Collections (SEDCA)  Simple interest charged at rate established by the North Carolina Department of Revenue (NCDOR)  Late payment penalties of 10%

7. General Collections Flowchart

8. Current Employee Flowchart

9. Employed at Another State Agency

10. Vendor Collections Flowchart

11. Write-Offs  Under G.S. §147-86.21  Accounts should be written off an agency’s financial accounting records when all collection procedures, including those required by the Office of the Attorney General (OAG), have been conducted without results and management deems the accounts uncollectible.  Written-off for financial purposes vs written-off for collection purposes

12. Provision of State Services to Delinquent Debtors  Under G. S. 147-86.21 and G. S. 147-86.23  Except when prohibited by law or legal contracts, persons or entities with accounts that are past due or have been written off due to non-payment should be denied additional goods or services until payments to the University have been received or resolved.

13. Quarterly and Annual OSC Receivable Report