REVENUE AND ACCOUNTS RECEIVABLE

POLICY STATEMENTS

This policy provides guidance on how to properly classify and record university operating revenue. Operating revenue is defined as that which is received from the university’s normal, mission-related operations. All revenue recognition activities must align with the institution’s mission to provide high-quality education and services while adhering to regulatory requirements and best practices. This commitment ensures accountability, integrity, and the trust of stakeholders.

Revenue is the income a company receives as a result of its business activities, typically through the sale of goods or services, rents, and other sources. In the case of universities, the most common forms of revenue are from tuition, contributions, contracts and grants, government appropriations, and auxiliary operations.

Generally accepted accounting principles dictate that the University must use accrual-basis accounting. This accounting method requires that revenue must be recognized in the period in which it is earned, not necessarily when the cash is received. Revenue is considered earned when the university has substantially met its obligation to be entitled to the benefits represented by the revenue.

All contributions will be recorded in accordance with GAAP. Contributions are recorded as pledged or received and must be credited to the appropriate revenue lines as presented in the annual budget and coded as designated in the Chart of Accounts.

PROCEDURES

The university has five principal operating revenue streams, which generally adhere to the recognition principles articulated above, but may also have additional and/or unique requirements for how the funds are accounted for and administered. BAU has following revenue streams:

1. Tuition
1.1. Degree Program Tuition
1.2. Non-Degree Program Tuition

2. Accommodation
2.1. Facility Rentals
2.2. Student Housing
2.3. Student Housing Fees

3. Grants and Contracts
3.1. Private Gifts, Grants and Contracts
3.2. Government Grants and Contracts

4. Auxiliary Enterprises

5. Fees
5.1. Mandatory Fees
5.2. As Applicable Fees
5.3. Application/Admissions Fees
5.4. Other Fees (Educational)

To ensure compliance with this policy, the following procedures must be followed:
• Revenue Identification: Departments must identify and classify revenue sources accurately based on the established recognition criteria.
• Documentation Submission: All supporting documents (e.g., agreements, receipts, records) must be submitted to the Finance Office within five business days of the transaction.
• Review and Approval: The Finance Office will review submitted revenue details for accuracy and compliance with the policy. Any discrepancies must be resolved within 10 business days.
• Recording and Reporting: Approved revenue transactions will be recorded in the financial system promptly. Monthly reports will be generated and shared with relevant departments for review.
• Annual Training: Departments responsible for revenue generation must attend annual training sessions on revenue recognition practices and updates to this policy.

Generally accepted accounting principles dictate that the University must use accrual basis accounting. This accounting method requires that revenue must be recognized in the period in which it is earned, not necessarily when the cash is received. Revenue is considered earned when the University has substantially met its obligation to be entitled to the benefits represented by the revenue. Contractual adjustments or sales discounts should be recorded as a reduction of revenue, not an expense.

Understanding that it may be impractical to comply with every accounting principal related to revenue, it becomes the responsibility of each operating unit of the university, under the general guidance of the CFO, to determine and document adequate business processes and internal controls to adhere to these principles in all material ways.

Materiality

Materiality is the accounting concept that permits the noncompliance of another accounting guideline if the amount is insignificant. Operating units should evaluate the dollar threshold at which the reliability, relevance and completeness of financial information would be compromised. Decision makers should keep in mind that materiality is cumulative – an omission of $100 may be immaterial, but a hundred instances of a $100 omission would not be. An operating unit’s materiality threshold, along with the methodology for its determination, should be documented.

Tuition and Fees:
• Revenue from tuition and fees is recognized over the academic term for which the tuition applies.
• Refunds and withdrawals are accounted for in accordance with the university’s refund policy.

Grants and Contracts:
• Grants with specific performance obligations are recognized as revenue when the related obligations are satisfied.
• Unrestricted grants and contributions are recognized as revenue when received or when an enforceable agreement is in place.
• For cost-reimbursable grants, revenue is recognized as allowable costs are incurred.

Contributions and Donations:
• Contributions without donor restrictions are recognized as revenue when received.
• Contributions with donor restrictions are recognized as revenue when the restrictions are met.
• Pledges are recognized as revenue if they represent an unconditional promise to give.

Auxiliary Services:
• Revenue from auxiliary services is recognized when the services are provided or the goods are delivered.
• Payments received in advance are recorded as deferred revenue and recognized as the services are rendered.

Endowment Income:
• Revenue from endowment investments is recognized based on the spending policy approved by the university’s board of trustees.
• Restricted endowment income is recognized in accordance with donor-imposed restrictions.

Deferred Revenue:
• Revenue received in advance of meeting recognition criteria must be recorded as deferred revenue. It will be recognized as revenue when the related academic term or service period occurs, or performance obligations are satisfied.

Multi-Element Arrangements
• For transactions involving multiple deliverables, revenue should be allocated to each component based on their standalone value and recognized separately when the respective obligations are satisfied.

DEFINITIONS

–

EXCEPTIONS

None

POLICY STATEMENT

Tuition, applicable fees, and other charges are assessed to students, on a credit basis for degree seeking students and on session basis for non-degree students. Degree students pay each semester for the total credits they plan to take in that given semester.

Tuition and mandatory semester fees of degree programs are recommended by the President and approved by the Board of Trustees. Tuition of non-degree programs and all other fees and charges are approved by the President.

By paying tuition or enrolling in or attending classes, a student agrees to all of the terms in the above paragraph and this policy.

PROCEDURES

Students must be registered, and all current balances and prior term balances must be paid in full at the time of application. In case of errors or inquiries about their bill, students will need to send a written statement to BAU Finance Office ([email protected]). They should include their full name, student number, and description of why they believe the billing statement is in error. Students will remain obligated to pay the parts of their bill not in dispute, but they will not have to pay any amount in dispute until such time as the University either corrects the error or explains why BAU believes that the bill was correct. During the same time, BAU may not take any action to collect disputed amounts or report disputed amounts as delinquent.

Students may request financial records by contacting the Finance Office or digitally on MyBAU through the student’s personal page. Financial records are available to the student after completing a FERPA Release Form. Financial records are never withheld from the student and are always made available.

The Finance Office provides billing statements that are accessible to students, through the student information management system (MyBAU). It is a student’s affirmative responsibility to review their bill and ensure that it is paid by the established deadline. The Finance Office maintains a website with information on deadlines, explanations of fees assessed, payment plans, setting up payments by third parties, and other information. Regardless of the method or source of funding a student intends to or has used to finance their tuition and other charges, the financial obligation belongs to the student. An overdue outstanding balance may subject students to registration holds and further consequences up to administrative withdrawal from enrolled courses.

A student with a balance on his/her account on the billing date of any month will receive a monthly statement with the amount owing designated as the new balance. Payments are due on or before the due date listed on the bill. Payments, credits or changes received or made after the bill date will be reflected on the student’s online statement immediately and can be accessed from the student portal (MyBAU).

Full payment of any previous obligations is due prior to registration. Any student’s account that has a delinquent balance will not be allowed to participate in course registration for a future semester until the account is paid in full. The online billing statement available at the beginning of each semester will itemize your payment obligations to BAU including, but not limited to, the following: tuition, course fees, mandatory semester fees, etc. The statement will also itemize any credits known at the time due you for the semester, such as overpayments by you in previous semesters. Any changes in your financial obligations to the University, caused by a change in schedule will reflect immediately on the online billing statement.

Payment of all tuition and fees becomes an obligation when you register at Bay Atlantic University (known as “BAU” and “The University”). BAU requests you carefully review and become fully knowledgeable of all disclosures before you submit your Financial Responsibility Agreement.

If students re-take any classes for any reason or exceed the total number of credits required for a degree, they will be obligated to pay for those courses in full and tuition assistance/scholarship will not be applied to those credits.

Students may not register for classes for an upcoming semester unless they are in financial good standing. BAU offers two payment options: Upfront payment and payment plan. Students can select to pay with a payment plan by signing a Financial Responsibility Agreement during registration. Students who select the payment plan are required to carefully review and become fully knowledgeable of all disclosures on the Financial Responsibility Agreement, which constitutes an entry into a promissory note once submitting it to BAU.

Admission Confirmation Deposit and Tuition Deposit Fees that are paid by applicants will be entered into the related Deferred Accounts on the General Ledger and credited towards tuition when the applicant registers for classes. These fees are non-refundable. The deposit accounts are recorded as revenue if the applicants do not register in the semester of application or the following two semesters.

DEFINITIONS

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EXCEPTIONS

None

POLICY STATEMENT

Payments to the University can be made either online or at the Finance Office using the following methods:

• Cash
• Check
• Debit or Credit Card
• Zelle
• Paypal
• International Wire Transfer

Payments to the University can be made either upfront during the semester course registration date or in installments.

PROCEDURES

Payment Methods
Acceptable forms of payment and the procedure for each form is described below:
• Cash: Cash is only received at the Finance Office. Students should not send cash payments through the mail.
• Check: Made payable to “Bay Atlantic University” with the student’s ID number written on the front. Previously endorsed checks are not accepted. Checks must be payable in US dollars with an intermediary bank in the U.S. Checks may be mailed to Bay Atlantic University, Attention: Accounts Receivable at 1510 H St NW Washington, DC 20005, or hand delivered to the Finance Office.
• Debit or Credit Card: Debit and credit card payments (MasterCard, Visa, Amex, Discover) are accepted at the Finance Office and online at https://bau.edu/tuition-fees. Students can also fill out the Credit/Debit Card Authorization Form and send the form to the Finance Office by email to charge the card for one time. Students should specify what they are making the payment for (e.g., courier fee, deposit payment for tuition, etc.), and include their Full Name and Application ID.
• Zelle Payment: Students should include their Full Name and Application ID in the memo or notes section to ensure proper identification of the payment.
• Paypal: Students can use the QR Code at https://bau.edu/tuition-fees to start their payment via PayPal. Students should specify what they are making the payment for (e.g.: Admission Confirmation deposit, deposit payment for tuition, etc.)
• International Wire Transfer: Students can use the University wire information and email the bank confirmation statement to [email protected]. Students should specify what they are making the payment for (e.g., courier fee, deposit payment for tuition, etc.), including their Full Name and Application ID.

Payment Options
• Upfront Payment: Payments can be made upfront during the semester course registration dates published on the webpage for each academic year. 5% discount is offered for upfront payment option.
• Payment Plan: BAU offers a payment plan as an alternative to paying the bill by splitting the balance into convenient monthly payments, with no added interest. BAU reserves the right to calculate installments based on account balances at the time of enrollment. The general practice is to offer three installments, 40% of the balance in the first, 35% of the balance in the second, and 25% of the balance in the third installment date. It is the participant’s responsibility to monitor their accounts and installment amounts. A $25 late fee per credit is assessed for each late or insufficient payment. Accounts missing two or more payments will be canceled from the plan and full payment becomes due immediately. Any additional account balance remaining after the final payment due date becomes due immediately per university guidelines.
• Any initial international student who paid the Tuition Deposit Fee, will pay the remaining amount in two (2) installments; the first installment (50% of the semester balance) during the semester course registration days and the second installment (50% of the semester balance) on the 2nd installment day of the semester they are enrolled in.

Autopay
If students prefer a payment plan option, they can autopay their installments through debit and credit cards. Automatic payments are deducted from their credit/debit card on the payment days until the semester balance is paid in full. Students should fill out the Credit/Debit Card Recurring Payment Authorization Form and send it to the Finance Office by email so that the card can be charged automatically on the installment dates.

DEFINITIONS

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EXCEPTIONS

None

POLICY STATEMENT

Only tuition payment is refundable. Fees are non-refundable. The document processing, admission confirmation, and tuition deposits, which are credited towards tuition upon registration, are non refundable.

The policies, requirements, course offerings, schedules, activities, mode of instruction, tuition, fees, facilities, services, operations, offerings, faculty, administrators, and calendar of the University, its schools, departments, and programs are subject to change without notice at any time at the sole discretion and judgment of BAU. Such changes may be of any nature, including, but not limited to the elimination of the school, programs, classes, or activities; the modification or cancellation of scheduled classes or other academic activities; and the relocation of or modification of the content, modality, format or location of any of the foregoing. Any such changes shall be made consistent with federal, state, and other applicable regulations or standards concerning accreditation and other regulated University and program requirements. BAU shall not be responsible for the refund or credit any portion of tuition, fees, or other charges paid or owed, in the event of any changes, but it may do so in its discretion. BAU assumes no liability for interruption, cessation, or modification of classes or other activities due to public health, safety, or security concerns, fire, flood, weather, strike, war, pandemic, act of God, or other unforeseen events, or force majeure.

PROCEDURES

If a student elects to withdraw from specific course(s) or withdraw completely from the University, the refund schedule below will be used to determine any outstanding financial obligation for which the student may be responsible.

The student is responsible to submit a written request of course/University withdrawal to the Finance Office to initiate the refund process by filling out the Refund Request Form.

In general, BAU will refund the tuition in the same manner as it was received by BAU (credit card payment, bank wire transaction, or check). The bank transaction fee will be deducted from the total. BAU will only refund to the organization or person who made the original payment unless written consent is provided by the organization or person in question.

The time of the refund can take up to 45 calendar days.

DEFINITIONS

–

EXCEPTIONS

None

POLICY STATEMENT

BAU is committed to making higher education more affordable and accessible. To achieve this, BAU offers tuition assistance and scholarship programs. All programs are strictly used for tuition payments and do not cover fees or living expenses and other charges. BAU publishes updated information on tuition assistance and scholarships, eligibility to apply and requirements for maintaining the tuition assistance and scholarship.

All prospective and current students may apply for a scholarship or tuition assistance, regardless of their nationality, enrollment status (part-time or full-time), or academic history.

The tuition assistance and scholarships are awarded as a total amount, to be applied per credit upon course registration during the study of the student at the University.

The President has the authority to approve any new tuition assistance and scholarship program to support the mission suggested by the Academic Department or the Growth Office.

Tuition assistance and scholarships are entered as discounts in revenue, not as expense.

PROCEDURES

All prospective and current students may apply for a scholarship or tuition assistance, regardless of their nationality, enrollment status (part-time or full-time), or academic history. In awarding such, BAU takes financial need into consideration, but the award system is based primarily on merit (demonstrated academic achievement or other personal accomplishments). Tuition assistance and scholarships are determined by the Scholarship Committee, which meets weekly (biweekly during holiday seasons) to review applications and award for the following academic semester. Application results are emailed to all applicants.

During the admissions process, if BAU discovers any instance of plagiarism, the use of AI writing assistance, or any deliberate dishonesty in any part of the application, the scholarship or tuition assistance will be automatically rejected. BAU reserves the right to withdraw any previously granted tuition assistance or scholarship decision if such violation is detected at a later stage.

The following tuition assistance and scholarship programs; the Admissions Office evaluates the applications and offers the appropriate program to the applicant.
• D.M.V. Tuition Assistance: BAU will offer tuition assistance to students from the metropolitan D.C. who are admitted to the University to help reduce the burden of student loans, thus, eliminating the need to apply for federal financial aid.
• Merit-Based Tuition Assistance: This is awarded based on Standardized Exam scores like SAT and ACT (not required, but encouraged), GPA, letters of recommendation (not required, but encouraged), and tuition assistance application essay.
• New Generation Tuition Assistance: All students who apply to BAU may be automatically reviewed/verified by the Admissions Team and/or Scholarship Committee to receive the New Generation Tuition Assistance.
• Institutional Agreements: BAU makes agreements with governments, embassies, government officials, NGOs, private companies, and other educational institutions (BAU Global, Mentora College, etc). During the student’s application process, they can consult with the admissions officer to see if there is an institutional agreement signed with their institution.
• Alumni receive tuition assistance if they pursue a second degree with BAU.
• Employees receive tuition assistance. See 5.63 Staff Tuition Assistance Program Policy
• Global Scholarship Exam: BAU organized a Global Scholarship Exam (GSE) in select countries in collaboration with the related ministries and partner education institutions. The purpose of GSE is to select highly accomplished students to offer scholarships depending on exam scores.
• James Wormley Scholarship: This scholarship is named after Washington DC’s prominent 19th century African American entrepreneur and educator, will be awarded to one (1) high achieving student from DC’s Public and Public Charter schools to attend BAU. Throughout the student’s degree, they will be required to participate in the spectrum of events, academic requirements, and research required for this scholarship.

Tuition Assistance and Scholarship Re-Evaluation:
Undergraduate students who complete 15 credits and graduate students who complete 9 credits at BAU after their initial scholarship or tuition assistance was granted can request a re-evaluation by submitting their application to the Scholarship Committee. The applications are reviewed within twenty-one (21) business days.

Requirements in Maintaining Tuition Assistance and Scholarships:
Students who earn tuition assistance or scholarship of any category should meet the following criteria to maintain the scholarships:

1) Continuously enroll in courses to meet graduation requirements (unless taking an approved Leave of Absence), and
2) Maintain a minimum Cumulative Grade Point Average (CGPA) of 2.0 (undergraduate) and 3.0 (graduate) for any semester, and
3) Avoid any disciplinary action for any reason.

BAU aims to use tuition and scholarship funds carefully for students who need support. Therefore, if a student withdraws from the enrolled program to transfer to another institution, the student is required to pay the tuition assistance/scholarship amount back to BAU for all course credits completed so that BAU can allocate it for the use of other students.

If students re-take any classes for any reason or exceed the total number of credits required for a degree, they will be obligated to pay for those courses in full and tuition assistance/scholarship will not be applied to those credits.

DEFINITIONS

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EXCEPTIONS

None

POLICY STATEMENT

Education is a priority at Bay Atlantic University and an educated workforce is one of the university’s most valuable assets. The Staff Tuition Assistance Program is designed to support and encourage employee development through formal education, with a priority on the attainment of baccalaureate or master’s degrees at Bay Atlantic University.

Employee Eligibility

To be eligible for tuition assistance:

1. Employees in Good Standing: qualify after 90 days of employment must not be on performance probation and should be in good financial standing with the university.

2. The employee is required to go through the regular admission process and meet the relevant university admission requirements, including meeting semester application and credential deadlines.

Tuition Assistance Tiers

Duration

The tuition assistance program is valid only during the time of employment. If the semester or session has already started when the employment is ended, the tuition assistance is maintained until the end of the session/semester.

PROCEDURES

1. The employees must submit the application for staff tuition assistance program to the HR Department.

2. Once approved, the employee and bursar and registrar will be notified of the acceptance for tuition
assistance.

DEFINITIONS

Employees “In Good Standing”: Qualifying employees for program must not be on job probation (3 months), on performance probation and should be in good financial standing with the university as described in the Academic Catalog.

Regular, full-time eligible employees: A university employee employed to work 100% FTE (40 hours per week) for a period of 90 days or longer.

Regular, part-time eligible employees: A university employee employed to work 50% FTE (20 hours per week) for a period of 90 days or longer.

EXCEPTIONS

None

POLICY STATEMENT

GAAP requires the financial reporting of revenues and expenses related to the summer academic term to be reported in the fiscal year in which the services are performed and the expenses are incurred. When summer sessions cross fiscal years, student related fees revenue and related expenses for the summer academic term should be split between the two fiscal years based on the timing of when services are performed and when expenses are incurred.

PROCEDURES

The process for allocating the revenues to the two fiscal years should be calculated each year based on the number of days in the summer semester that falls into each fiscal year. Revenues to be allocated include the following:
• Current year tuition/fee revenues
• Current year Deferred Revenue
• Financial aid expense (reduction of Deferred Revenue)

DEFINITIONS

Deferral: accounting term that means to defer or to delay the recognition of certain revenues until a later date.

Deferred Revenue: a liability that refers to revenue that has not yet been earned but represents products or services that are owed to the customer.

EXCEPTIONS

None

POLICY STATEMENT

Financial good standing and a university record clear of holds are required for students to receive services. Services including, but not limited to, transcript issuance, diploma release, class registration (add, drop, withdrawal, etc.), and housing will not be provided to students with a financial balance due or a hold of any kind on their record. Holds are based on outstanding obligations and may be financial.

PROCEDURES

Students who are noncompliant with payments will be immediately suspended from all services.

Failure to meet financial obligations to the University will result in other collection procedures, which include account referral to credit reporting bureaus, private collecting agencies, DC Office of Tax and Revenue, and Office of Attorney General. Past-due accounts are subject to garnishments, liens, judgments, and withholding money from tax refunds.

In addition to late fees and interest, delinquent accounts will be assessed additional collection costs up to thirty (30) percent of the past due balance, reasonable attorney fees, and other administrative costs. Once an account is referred to a collection agency, payment must be made to the agency, not the University.

If a student’s financial obligation is not fulfilled, BAU is authorized to do the following until the money owed is paid:
1) Students are not allowed to register for courses or attend classes if financial obligations are not met. In addition, students with outstanding financial obligations will not be cleared for graduation or receive official transcripts or diplomas.
2) BAU withholds the release of the student’s academic records or any information on the records.
3) If the student’s account remains delinquent, BAU reserves the right to terminate enrollment and administratively withdraw the student.
4) All payments are subject to a late fee per credit. The late fee will apply only to the tuition and installment fees. Other fees will be deducted before applying payment for tuition. A Return Check Fee will be charged for each returned check.

In the documented event of prolonged illness, accident, or death in the immediate family (parents, siblings, children, or spouse) or other special circumstances that make it impractical to complete the program, BAU will work toward a settlement that is reasonable and fair to both parties.

DEFINITIONS

–

EXCEPTIONS

None

POLICY STATEMENT

Generally Accepted Accounting Principles (GAAP) require the University to make every effort to collect receivable balances, to evaluate and write off receivables determined to be uncollectible and to estimate and record receivable amounts that will become uncollectible in the future. This policy provides guidance on evaluating and accounting for the uncollectible portion of accounts receivable including writing off of uncollectible receivables and calculating an uncollectible receivable estimate.

This policy provides guidance for management of and accounting for uncollectible receivables and applies to the University’s portfolio of student accounts on tuition, various fees, books, supplies, housing and fines.

PROCEDURES

Accounts Receivables officers monitor aging of student installments and receivables. Generally, receivable outstanding balances should be paid within thirty (30) days. If any unpaid balance exceeds thirty (30) days, the Accounts Receivables officers should contact the student to request payment. They maintain contact with students via regular phone calls, emails, and if necessary, classroom visits to ensure collection of receivables.

At the end of each semester, the Accounts Receivable submits a report to the CFO that lists student accounts to be referred to an outside collection agency together with necessary financial information on each student (i.e. student transcript, student invoices, student learning agreements and financial responsibility agreements, student contact information). CFO requests semi-annual reports from the collection agencies.

Accounts Receivable office fills out the Request for Accounts Receivable Write Off Form at the end of each fiscal year and submits for the reviewal of the CFO. The CFO reviews the form and submits the write off schedule to the President to write-off balances after exhaustion of collection efforts.

The CFO is responsible for the year-end review of campus accounts receivable activity and reversing any write-offs for amounts subsequently collected.

Collections

A receivable becomes past due if payment is not received by the payment due date. A concerted effort should be made to collect accounts, including the current amount due applicable to installment payments.

Collection actions may include but are not limited to: sending additional notices, making phone calls, reporting the account to the credit bureau, or referring the account to an outside collection agency. Any efforts to collect overdue accounts receivable performed by University employees must be documented. These efforts must be conducted according to the provisions of the Federal Fair Debt Collection Practices Act.

By signing the Financial Responsibility Agreement upon course registration, students agree that if they fail to pay their student account bill or other monies owing to BAU by the scheduled due date and fail to make acceptable payment arrangements to bring their account current, the University may pursue litigation against them, transfer their account to a collection agency and/or report any delinquency to credit bureaus(s). In addition to their balance, students agree to pay the University’s cost and fees, including attorneys’ fees and cost of collections agencies which will be calculated based on the amount of the outstanding account balance, up to the maximum amount permitted by applicable law. If a lawsuit is filed to recover an outstanding balance, students agree that they will also be responsible for any costs associated with the lawsuit such as court costs.

Write-Offs of Uncollectible Accounts

While routinely executing collection procedures some receivables will be determined to be uncollectible. Accounts should be written off the University’s financial accounting records when all collection actions have been completed and management determines the receivable to be uncollectible. The University usually offers two (2) years after an account is submitted to a collection agency to decide an account being uncollectible and is responsible for consistently performing write off of receivables. Accounts over three years old is written off. This ensures a stable and reasonable receivable balance, is an important element in reporting accurate financials, achieving reporting consistency and usefulness during the year, and reflecting the true net realizable value of the University’s accounts receivable. Amounts written off are no longer reflected in the University financials and are no longer used in calculating the Allowance for Uncollectible Accounts.

Allowance for Uncollectible Accounts

The process of calculating the estimate for uncollectible balances requires a rational estimate that follows GAAP. The University will use the allowance method in which estimates of the uncollectible accounts are applied as a percentage to the revenues earned. This allows for the allowance of uncollectible accounts to match with the revenue, which adheres to the matching principle in GAAP.

The estimate the University will use is based on historical data on collections for each type of receivable. The goal in recording the Allowance for Uncollectible Accounts is to show, as accurately as possible, the net realizable value of accounts receivable on the University’s financial statements. The CFO is responsible for establishing the allowance calculation that is necessary for compliance with standards.

The allowance calculation will use a balance sheet method in which accounts are put into buckets by age to create an Aging Report. The age of the receivable and history of collections must be utilized to arrive at an estimated uncollectible percentage. A new percentage will be calculated annually for fiscal year-end reporting and shall be reflective of the collectability of accounts and applied to the outstanding accounts receivable balance at fiscal year-end. The Allowance for Uncollectible Accounts will be updated at fiscal year-end to reflect the estimated uncollectible amounts based on the calculation.

DEFINITIONS

Student Accounts Receivable – amounts owed by a student as a result of enrolling in classes at the University. This may include amounts for tuition, various fees, books, supplies, housing and fines.

Write-off of Uncollectible Accounts – the process to remove an amount owed to the University from the receivable balance after a thorough collection process is followed and it is determined the balance will not be paid. The balance is no longer considered an asset and is not reflected in the financial statements.

Allowance for Uncollectible Accounts—a reasonable estimate, based on historical collections or other reasonable rationale, of the amount of accounts receivable that will become uncollectible. This amount is reflected as a contra-asset on the statement of net position.

Aging report— Receivable aging begins at the time the debt is incurred or the date of the last payment depending on the type of receivable. An aging report is a list of accounts receivable grouped and summed based on the age of each receivable.

EXCEPTIONS

None

POLICY STATEMENT

The University will follow U.S. generally accepted accounting principles (GAAP) in the preparation of its annual financial statements. BAU records and reports all outstanding accounts receivable as of June 30 of each fiscal year to ensure compliance with GAAP as it relates to receivables.

University departments are responsible for invoicing and collecting monies due for sales and services provided to non-University customers.

PROCEDURES

Invoicing
When students register for classes, any applicable tuition and fees are created automatically on Quickbooks via the course registration module on MyBAU. The following information is included on the invoice that will be sent to the customer:
a. Invoice date
b. Customer name
c. A description of the goods or services provided
d. Total dollar amount owed
e. Appropriate payment terms
f. Remit address

Accounts Receivable Office can also create invoices manually on Quickbooks for transactions that are not on the course registration module and for other services. The same information should be included as discussed above.

Accounts Receivable Office should make reasonable attempts to collect outstanding receivables. Refer to 5.68 Collectibles, Write-Offs and Allowance for Accounts Receivables Policy.

Recording a Payment

Payments should generally be remitted directly to the Accounts Receivable Office. When the Office receives payment via cash or check, a Cash Receipt should be completed on Quickbooks referencing the invoice number in the description field, adding a copy of the invoice to the document.

When payments are received by ACH or wires, the department is responsible for claiming all payments in Quickbooks.

DEFINITIONS

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EXCEPTIONS

None

POLICY STATEMENT

The university is committed to safeguarding cash receipts through robust internal controls and transparent processes. All cash-handling activities must comply with this policy to mitigate risks of theft, fraud, or mismanagement and to ensure proper recording and reporting.

The accounts receivable will prepare all bank deposits with duplicate deposit slips. CFO makes the bank deposits. Each deposit ties out to the cash receipts/ accounts receivable journal and lists the total cash deposited on the bank deposit slip and on the carbon copy of the deposit slip. The CFO compares the bank deposit total to the cash receipts/accounts receivable journal total and reconciles any differences before deposit

PROCEDURES

Collection of Cash Receipts:
• All cash receipts must be recorded immediately upon receipt using pre-numbered receipts
• Receipts must include the payer’s name, date, amount, and purpose of the payment.

Safeguarding Cash Receipts:
• Cash must be stored in a secure, locked location (e.g., a safe or lockbox) until deposited.
• Access to cash storage locations must be restricted to authorized personnel only.

Depositing Cash Receipts:
• All cash receipts must be deposited at the designated depository once a week or when more than $10,000 has been collected.
• Deposits must be accompanied by a detailed deposit slip and reconciled against the receipt records.
• The final week of the fiscal year, all cash must be deposited before the 30th of June.

Recording Cash Receipts:
• Cash receipts must be recorded in the university’s financial system within one business day of deposit.
• Departments must reconcile their records regularly with the university’s central financial system to ensure accuracy.

Reporting Irregularities:
• Any discrepancies, losses, or suspected thefts must be reported immediately to the CFO.
• Investigations will be conducted following the university’s established protocols.

Training:
• Employees responsible for handling cash receipts must complete mandatory cash-handling training provided by the university.
• Training sessions must be conducted annually or as necessary when procedures are updated.

The accounts receivable maintains a manual cash receipts/accounts receivable journal. The journal lists the date received, payer, invoice number where applicable, amount of each receipt. Amounts received through out-of-office collections procedures are entered in the cash receipts/accounts receivable journal with appropriate receipt number references. Cash receipts which lack a receipt number are entered with the words, “Cash payment,” or “Cash Donation.”

Each receipt entered in the QuickBooks cash receipt/accounts receivable journal is then spread to the appropriate column on the journal to indicate accounts receivable payment, direct mail donation, sale of curriculum, workshop registration, etc. The accounts receivable adds and proofs the pages of the journal, reconcile with student information systems and enter to the QuickBooks journal.

DEFINITIONS

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EXCEPTIONS

None

POLICY STATEMENT

Bay Atlantic University generates accommodation revenue through facility rentals, student housing fees, and student housing room fees.

This policy establishes the principles and criteria for renting university spaces to external organizations or individuals to ensure alignment with the institution’s values, mission, and community standards, the approval process of student housing fees and room fees.

Facility Rentals

The University is committed to maintaining the integrity and primary purpose of its facilities as centers of learning, research, and community engagement. To that end, the rental or use of University spaces by third parties is permitted only when the following conditions are met:

1. Trustworthy Organizations: The University reserves the right to evaluate and approve third-party renters based on their reputation, past conduct, and alignment with ethical standards. Renters must demonstrate a track record of responsible operations and comply with all applicable laws and university policies.

2. Prohibition on Alcohol Sales: Events or activities involving the sale of alcoholic beverages are strictly prohibited within university facilities under third-party rental agreements. This policy supports the University’s commitment to fostering a safe, inclusive, and family-friendly environment.

3. Alignment with Educational and Related Purposes: Priority will be given to organizations engaged in educational, cultural, scientific, or community-based initiatives. Renters must clearly demonstrate that their intended use of the space supports educational or mission-driven purposes that are consistent with the values of the university.

Student Housing Fees and Room Fees

The University manages student housing properties that offer a variety of room types and associated fees. These rooms may be rented to students, employees, guests of the University, and other individuals not affiliated with BAU. Non-BAU applicants, such as students from other universities, interns, or similar individuals, are subject to a thorough review process. In the event of limited room availability, priority will always be given to BAU students.

The President has the authority to identify the facility rental amounts, student housing fees, and student housing room fees.

PROCEDURES

Facility Rentals

All rental agreements are subject to review and approval by the President. The University retains the right to deny rental requests that do not meet the established criteria or that pose potential risks to the University community. Any breach of the terms outlined in this policy may result in immediate termination of the rental agreement and potential disqualification from future facility use.

Payments for Student Housing Room Fees

Payments are due on the 1st day of every month. Tenants may submit payment through Zelle, or the online payment portal. Cash and payments by check are also accepted in the Finance Office located on the 9th floor of the Bay Atlantic University campus. If a resident’s account is not resolved by the 5th day of the month, they will be charged a late fee, and that fee will increase by certain amounts every five (5) days.

If the resident does not resolve their account by the 15th of the month, they will be asked to vacate the property.

DEFINITIONS

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EXCEPTIONS

None