BURSAR 102 WORKSHOP

Monday, June 14, 20152015 NYSOBBA Annual Conference

White Plains, NY

PresenterSusan E. Kirwan

SUNY PotsdamNYSOBBA Northeast Regional Director

Discussion OutlineResponsibilitiesCollectionsPayment Plans/Institutional LoansCustomer Service & CommunicationsRecord RetentionQ & A

ResponsibilitiesDirector Level: Internal Controls/workflow Policy and procedures Cash handling Segregation of duties Data integrity/security Process improvement/mapping Special programs Reporting, AOR, FISAP, Third Party contractors

ResponsibilitiesDirector Level: Work with Auditors (internal, external, federal, state) Conduct audits of time sheets, accounting reconciliations SAS 112 requirements Petty cash and change funds Credit card oversight, PCI compliance

ResponsibilitiesDirector Level: Staffing/training/talent selection Mentoring Succession Job descriptions/Evaluations/ Discipline/Corrective Action Technology awareness Financial Aid/Registrar/academic relationships

ResponsibilitiesPolicy and Procedures Checklist: Do I know who is responsible? What if I’m not available? What is the actual workflow? Can I be consistent without one? Can I train without one? Who can approve what? How do I deal with exceptions? Do I have a ‘Plan B”? (disaster recovery)

ResponsibilitiesAccounting and Reconciliation Checklist: Does my data move appropriately through the system? Do I have an independent financial analyst responsible for

reconciliation? Do I have audit proof cash handling procedures? How do I handle errors? Journal entries? Can I minimize systems /process and still account for all

transactions? Am I in compliance with Federal/State/University approved

methods? (record retention, cash handling)

ResponsibilitiesSegregation of Duties Checklist: Is my organizational chart truly functional? Do all users have appropriate levels of responsibility? ( i.e. does the

customer service desk also take cash?) Do all users have appropriate levels of security? (Service and

technical) Who has the keys? Who has access to hardware and software? Do I have an escalation chart for emergencies?

Payment Plans/Education LoansTruth In Lending: Regulation Z, which implements the Truth in Lending Act (TILA) adds disclosure

and timing requirements that apply to creditors (institutions) making private education loans for educational expenses. The HEOA (Higher Education Opportunity Act) requires that institutions obtain a self-certification form signed by the customer prior to them accepting the loan.

Congress enacted the Truth in Lending Act (TILA), 15 U.S.C. 1601 et seq., to regulate certain credit practices and promote the informed use of consumer credit by requiring uniform disclosures about its costs and terms .Under TILA section 128, creditors must provide TILA disclosures to consumers in writing before consummation of certain closed-end credit transactions.

http://www.nacubo.org/documents/initiatives/Private_Education_Loan_TILA_Checklist.pdf

Payment Plans/Education Loans

Payment Plans that comply with TILA: Must be paid-in-full by the end of the semester; Must be payable in four or fewer payments Must not charge interest; Must not include a "finance charge”; May include an "application fee" if charged to all applicants,

regardless of whether or not the application is approved (make this payable before the application form is processed);

May include a fee for late payments.

Payment Plans/Education LoansEducation Loans that comply with TILA: Terms:

-Must be paid-in-full in less than 90 days; or-Must be paid-in-full in less than 1 year and must not include an interest charge;

Fees:-May include an application fee;-May include a fee for late payments

These rules apply differently to non-institutional creditors, including auxiliary service corporations and foundations. If a campus has agreements that allow an outside creditor to make TPPs, ELs or other non-Title IV loans to students, it should include language that clearly places the burden of complying with HEOA, TILA and Regulation Z (12 CFR part 226) on that outside creditor.

Payment Plans/Education LoansPayment Plans:External Outsources to third party companies

-Installment plans are offered interest-free and require an enrollment fee. Since these plans are not considered loans, no credit check is required.

Internal Requires upkeep of enrolled students Requires record of missed payments and/or late payments

-Can be a costly alternative to external plans depending upon the number of enrolled participants

CollectionsManaging Receivables:

Not everyone will pay their bills in a timely manner!

Timely Billing

Facilitate Timely Payment

Strong Customer Service

Enrolled vs. Not Enrolled

CollectionsEnrolled: Monthly billing

Reminders (Email)

Holds (Registration, Transcript, Diploma)

Cancellation

Late Fees

CollectionsCancellation: PROS: Can be VERY effective Can free up seats for paying students CONS: ANGRY Complaints Can impact retention Requires a lot of communication and special handling

CollectionsConsiderations: When to cancel? Before classes start After classes start Who to cancel? Past Due balance? Unpaid balance Thresholds? Returned Payments?

CollectionsNo longer Enrolled: Holds (Registration, Transcript, Diploma) Late Fees Letter(s) and/or Call(s) Refer to Collection Agency/AG’s Office Credit Reporting Legal Action Bad Debt Write-Off

Customer Service & CommunicationService Philosophy: Key Factors

–School Culture, Current Management, Partner Departments, Your team, Your experience and personal philosophy

Who is served

–Students and parents

–Other Departments

Customer Service & CommunicationWhere does Customer Service fit:

Customer Service is part of everything you do!

Starts with getting the transactions right.

It’s impacted by the structure of your location.

The tone is set upon admission.

People get ugly about money.

Customer Service & CommunicationProviding Service:Incoming Contacts Department Email, Phone, Walk Up Inquiry Levels Level One – basic Level Two – requires some special knowledge Level Three – very complex Hot Potatoes Training On-Job-Training, Reference Materials, Classes/Seminars

Customer Service & CommunicationThe Best Service is Proactive:Help Students and Parents Help Themselves! Put it on the web Communicate Leverage Your Partners

-Chancellors/President’s Office

-Admissions/Financial Aid

-Community and High School Partnerships

Customer Service & CommunicationCommunication: Online Bill/Student Account Information -Web Presence -University/College Publications -Proactive Emails to Target Populations Refund Check Notification Cancellation Warning Hold Notice Bill Notification

Customer Service & CommunicationCommunication: Online Bill/Student Account Information Bill Display Amount Due Display Transactions Financial Aid Pending Title IV Permissions Direct Deposit Set up 1098T electronic delivery Checklists Hold Information

Record RetentionRecords Retention: NYS Archives Rule - www.archives.nysed.gov/a/records/mr_retention Federal Financial Aid – 3 years after graduation (Problem for us > five

and seven years in NYS) Perkins has a few different rules Your own college policies – usually an office or employee who is the

Record Retention Officer

A Word to the Wise - Do Not Save Anything Any Longer Than You Have To – You’ll Avoid A Lot of Issues!

Q&AYou will never find a more helpful and generous group of people to work with, than your colleagues in NYSOBBA – at any time, pop into the listserv and ASK! There is a wealth of information available – there is always at least one person who can help – usually more!

Thank you for attending!

Questions?