Accounts Receivable and Revenue Collection

I. PURPOSE

To establish guidelines to promote effective control over, and proper accounting of revenues from external sources and the related accounts receivable.

II. POLICY

It is the policy of New York Medical College (“the College”) that the Controller’s office is notified of all invoices sent on behalf of the College to allow for the establishment of accounts receivable and that all cash receipts go directly to the Cashier’s office for deposit.

III. SCOPE

This policy applies to all individuals working for or on behalf of the College who invoice for goods or services that were provided by the College and that receive cash receipts on behalf of the College.

IV. DEFINITION

Cash receipts encompass all incoming payments received by the College or on behalf of the College through various channels, including cash, wires, checks, money orders, and credit card.

Accounts receivable represent debts owed to the College for goods or services that the College has sold or provided to its customers, including employees. 

V. PROCEDURES

1. All invoices prepared on the College’s behalf must include the following items at a minimum:

a. Description and price of the goods and/or services purchased.

b. Statement that payment is to be mailed directly to the Cashier's Office, along with a remittance copy of the invoice.

c. The College's general ledger account number (Fund, Organization, Account and Program codes (FOAP)) to be credited.

d. The total amount due.

e. The date the invoice is due, which will normally be upon receipt.

f. Contact person for any billing questions.

2. The Controller’s Office should be made aware of all invoices being sent on the College’s behalf. A copy of the invoice should be sent to the Cashier via email at cashier@nymc.edu.

3. Payments (cash, check, money order) received by the Dean's Office, Development Office, Restricted Funds department or any other College department shall be taken to the Cashier's Office for deposit on the day received. The forwarding of payments to the Cashier's Office and bank deposit should not be delayed to prepare an acknowledgement letter. A photocopy of the check should be used for that purpose.

4. In certain situations (i.e. clinical research studies) where payment is received based on something other than an actual invoice (i.e. submission of research data), it is the department’s responsibility to send all necessary information to the Controller’s Office via cashier@nymc.edu. This should include: the contact for payment, amount, date, description of good or service provided, and the College’s general ledger account number (FOAP) to be credited.

5. All checks should be payable to "New York Medical College". Third party checks shall not be accepted by the Cashier's Office. They will be returned to the sender. All electronic payments should include an invoice number or some other reference that will allow the Controller’s office to properly identify the payment.

6. Departments are required to exert every effort to collect all delinquent receivables. If a receivable is deemed uncollectible by the Department, the Department should reach out to the Controller’s office to determine next steps.

7. Departments that regularly have outstanding accounts receivable must keep adequate documentation, which includes individual account balances. If departments believe they have accounts receivable and have never notified the Controller’s Officer, they should do so immediately.

VI. EFFECTIVE DATE

This policy is effective immediately.

VII. POLICY MANAGEMENT

Executive Stakeholder: Vice President and Chief Financial Officer
Oversight Office: Controller