1. DEFINITIONS
    1. Accounts receivable means money owed by customers to the District in exchange for goods or services that have been delivered or used, but not yet paid for.
    2. Formal collection means having formally authorized, by the submission of requisite information, the District’s contracted collection agency to pursue collection of an account receivable.
    3. Informal collections means the efforts by District employees to pursue collection of an account receivable prior to turning a debt over for formal collection.
  2. GENERAL STEMENTS OF POLICY
    1. The Director of Food Services is responsible for the collection of unpaid lunch balances. The staff and fiscal administrator at each school is expected to assist the Director of Food Services as outlined under part 3. Informal Collection Efforts.
    2. The Board recognizes the need to maintain positive relationships with the students, their parent(s)/legal guardian(s) and patrons of the District. With this in mind, fiscal administrators have discretion with regard to informal collection efforts. However, at a minimum, fiscal administrator are to ensure the steps outlined under part 3. Informal Collection Efforts are taken to collect unpaid accounts receivable.
    3. Fiscal administrators shall ensure that notes about informal collection efforts and copies of associated letters are kept on file.
    4. When a student with unpaid fees or lunch balances transfers or advances to another school within the District, the fiscal administrator at the school of exit shall ensure that all requisite information regarding the account receivable is forwarded to the school of entry. The fiscal administrator at the school of entry shall continue informal collection efforts.
    5. Fiscal administrators are authorized to implement monthly payment plans for unpaid student fees in the event a parent(s)/legal guardian(s) is unable to pay the full amount due of an account receivable.
      1. The terms of such payment plans should be in writing and signed by both the fiscal administrator and the parent(s)/legal guardian(s).
      2. It is recommended that such payment plans require a $25 minimum monthly payment. As long as the monthly payments are made on time, it is not necessary to include the debtor in further informal collection notices and efforts. If, however, a debtor fails to make a monthly payment, informal collection notices and efforts should resume.
      3. Interest is not to be charged under monthly payment plans except as expressly authorized by the Business Administrator on a case by case basis.
  3. INFORMAL COLLECTION EFFORTS
    1. Unpaid Lunch Balances – Each student’s lunch account balance shall be reviewed on a weekly basis. If at the time of the review, an individual student’s balance is:
      1. Between 3 meals remaining and negative $10, the lunch secretary/kitchen manager is to verbally inform the student to let their parent(s)/legal guardian(s) know that money needs to be put into their lunch account.
      2. Between negative $10 t $20, the kitchen manager is to send a letter home with the student informing the student’s parent(s)/legal guardian(s) that money needs to be put into their student’s lunch account. The letter should include helpful information such as how to apply for the free/reduced lunch program, how to pay for meals, etc.
      3. Between negative $20 to $30, the kitchen manager is to provide the information to the principal who is to place a phone call to the parent(s)/legal guardian(s) requesting that the unpaid lunch balance be paid in full.
      4. Between negative $30 to $35, the kitchen manager is to prepare and send a letter, to be signed by the principal, to the student’s parent(s)/legal guardian(s) informing them that the unpaid lunch balance needs to be paid in full.
      5. Between negative $35 to $40, the kitchen manager is to prepare and send a certified letter, to be signed by the principal, to the student’s parent(s)/legal guardian(s) notifying them that the unpaid lunch balance needs to be paid in full to avoid negative repercussions that could include 1) formal collections which would result in additional costs and 2) suspension of meal service.
      6. Above negative $40, the Director of Food Services is to prepare and send a certified letter to the student’s parent(s)/legal guardian(s) notifying them that they have 30 days to resolve the matter in full to avoid negative repercussions that could include 1) formal collections which would result in additional costs and 2) suspensions of meal service.
  4. FORMAL COLLECTION
    1. An account receivable must be delinquent for more than 90 days before the debt may be submitted for formal collection. (See 63A-3-302)
    2. For unpaid negative lunch balances – Soon after the 30 days referred to in the letter at part 3.A.6. have passed, the Director of Food Services shall initiate formal collection.
    3. Formal collection for unpaid student fees and unpaid negative lunch balances is initiated by sending a certified letter, signed by the appropriate fiscal administrator, to the parent(s)/legal guardian(s) notifying them that unpaid amounts due will be pursued through formal collections if not paid within 10 days from the date of the letter.
    4. Soon after 10 days have passed, the appropriate fiscal administrator shall ensure that the requisite information is provided to the District’s contracted collection agency for formal collection. Once this has been done:
      1. Fiscal administrator should exercise caution with regard to answering questions that should be directed to the collection agency so as to not unduly interfere with collection efforts.
      2. Payment of the debt should not be accepted at the school or any district office unless expressly approved by Accounting on a case by case basis. All payments must otherwise by made directly to the collection agency.
    5. Fiscal administrators have discretion to recall an unpaid amount from the District’s contracted collection agency if there is a compelling reason to do so. The reason for any such recall shall by documented and kept on file.

Adopted by Tintic School Board : 6/19/2017

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