2.07—Employee Debt

Effective: 03/16/2011
Senate Proposal: No
Responsible University Officer: Vice President for Finance
Responsible Office: Financial Services and Operations

Policy Statement

Employees are expected to be prompt in the payment of their personal debts owed to the University for any University service(s)/good(s) purchased by the employee. The following may occur if an account is delinquent:

• Non-payroll reimbursement due the employee will be applied to the outstanding balance.
• Discipline action may be taken by either the Chief Human Resources Officer and/or employee's supervisor.

Policy Requirements

If full payment was not provided at the time of the purchase, the University's service/goods provider and/or Financial Services and Operations will send a notice of the debt with a payment due date to the employee.

Reason for Policy

For the University to collect personal debts from employees.

Related Policy Information

If the debt is outstanding and no repayment schedule has been established after the payment due date, any non-payroll reimbursement due the employee will be applied to the outstanding balance.

At the employee's request, the Financial Services and Operations Office will arrange a meeting whereby the employee will be provided an opportunity to review the documentation of the indebtedness and provide documentation (evidence) to dispute the debt. A representative of the University's service/goods provider may be present at the meeting to answer questions. At that time any adjustment to the debt will be processed and/or a repayment schedule will be established for any outstanding balance.

If the account has not been addressed in any of the above options and over 90 days have passed without payment or a payment plan arranged, or if payments are missed on an established payment plan, the case may be referred to the Chief Human Resources Officer and/or the employee's supervisor for action which may include discipline for violation of this policy.

Contacts

Definitions

Employee Debt - An amount owed to the University, by an employee, for a purchase of a University service and/or good for personal use.

Outstanding Debt - An amount owed to the University that was not paid at the time of purchase.

University Service(s)/Good(s) - Includes but is not limited to: parking permits; parking fines; purchases of goods or rentals; Telcom; payment for tuition; fees of housing; library fines; travel advances; personal checks submitted for cash; checks that are returned unpaid by the financial institution; and any erroneous payment to the employee.

Responsibilities

Accounts Receivable Office - When required:

• Submits, to the employee, the total amount due for a purchase of University service(s)/goods to the employee.
• Arranges a meeting between the employee and University's service/goods provider; and acts as a mediator between the two for outstanding debts of more than 60 days, and where no good faith effort has been made to pay the outstanding debt.
• Refers the debt to the Chief Human Resources Officer and/or the employee's supervisor for outstanding debts of more than 90 days, and where no good faith effort has been made to pay the outstanding debt.
• Submits to the Collections Manager to have non-payroll reimbursement due the employee applied to the outstanding balance.

Director, Human Resources - Reviews the outstanding debt and documentation of events for prompt payment from the employee and determine the level of discipline for nonpayment.

University Employee - To make full payment for a purchase of University service(s)/good(s). If full payment can not be made at the time of purchase, then the employee is to establish a repayment schedule with Accounts Receivable in the Financial Services and Operations department. If the employee finds a discrepancy with the outstanding debt, the employee provides documentation to dispute the debt.

University's Service/Goods Provider - Once the service/goods have been purchased, submits the total amount due to the employee or the Accounts Receivable office for submission to the employee.

Adoption Date

Revisions