Accounting Procedures Handbook

ACCOUNTS RECEIVABLE 11.4 ASSETS I. OVERVIEW The Board of Education of Wicomico County has Accounts Receivable consisting of rental receivables, health insurance receivables due from retirees, and receivables for students living out of county. Amounts due from the schools are billed to reflect various transactions paid by the Board on behalf of the schools. Facilities Rentals – The Board rents its facilities to various users. The Board invoices the users and books the receivable. Retiree’s Health Insurance – Board retirees are permitted to continue their health insurance coverage through the Board’s plan. The retirees are invoiced for their share of the premium. Out of County Students - This represents students who attend Wicomico County schools but would not normally reside in the county. These students may be in a foster care situation that does not allow them to attend school in their county of residence. The Board must invoice those counties to be reimbursed for the costs of providing services to these students. II. CONTROL OBJECTIVES • To record and report the Board’s accounts receivable in accordance with generally accepted accounting principles. • To ensure that all receivables are accurately calculated and invoiced. • To ensure that all receivables are posted accurately and timely. • To ensure that all receivables are consistently managed, collected, and written- off, as applicable. • To consider and estimate an allowance for doubtful accounts, as deemed necessary by management. III. PROCEDURES A. Facilities Rentals 1. Usage Rentals • Accounting Associate I (AA) receives check for $20 processing fee from user in advance of rental. o AA locates Quote created by Facilities Dept. in the billing program. o AA prints Quote and converts to an Invoice. • AA prints 2 copies of invoice. Send one copy to the renter and place one copy in the current invoices binder. o AA notes all information on the Rental Report Excel Spreadsheet. 2. Custodian and Utility Bills • Accounting Associate I (AA) receives custodian and utility billing information from payroll. o AA holds info for 2 weeks after last rental date (until next pay date).