Sponsorship Management

Sponsorship Management

SUMMARY

The Sponsorship Management Policy establishes the University's approach to ensure the efficient management, processing and collection of student fees and charges for all the University’s Sponsored students. The Procedure provides further information on key responsibilities in order to ensure that sponsorship debts are recovered in an efficient and timely manner.

POLICY

PurposeTo ensure the efficient management of processing and collection of student fees and charges for all the University’s Sponsored students.

Overview

This policy covers the key aspects of processing fees for Sponsored Students from the time the Sponsor is set up in the University’s student system (Student One), to the collection of fees and to the steps taken by the University to recover unpaid fees.  This policy is to be read in conjunction with the Sponsorship Management Procedure.
 
This policy aims to clarify the requirements for invoicing and collecting fees/charges from Sponsored Students by:
  • providing details of the documentation required from prospective Sponsors
  • information regarding sponsorship financial amounts providing direction in invoicing and collecting fees from Sponsors
  • outlining the steps to be taken when the fees/charges become overdue.

This policy is designed to ensure the University meets the requirements of the NSW Public Finance and Audit Act 1983 (as amended) and the International Accounting Standards specifically with regard to the recording of monies owed to the University and debt management.

DEFINITIONS

Sponsor: an External Sponsor or an Internal Sponsor.

External Sponsor:  an external entity that undertakes to pay or guarantees the payment and/or settlement of student fees and charges either partially or in full for a specified period, eg AusAid

Internal Sponsor: a Macquarie University faculty and/or office that undertakes to pay or guarantees the payment and/or settlement of student fees and charges, either partially or in full.

Sponsored Student:  a student whose fees are either partially for fully paid for or guaranteed by a Sponsor. 

Finance System:  the University’s finance system from time to time (currently Finance One).

Student System: the University student record system from time to time (currently Student One).
ScopeThis policy is applicable to all Sponsored Students.

Policy

The University will establish and monitor the systems and processes necessary to manage payment of fees and/or charges by a Sponsor.
DOCUMENTATION
The University will require the Sponsor to provide the following written documentation to Office of Financial Services (OFS):
  • name and contact address including the name of a contact person with whom OFS can liaise on a regular basis throughout the duration of the sponsorship
  • study program and/or unit(s) being sponsored
  • proportion of fees and charges to be paid by the Sponsor (e.g. 100%, 50%) or specify a fixed amount of sponsorship
  • names and Macquarie University student identification numbers of all Sponsored Students
  • duration of the sponsorship, and
  • Finance System account for Internal Sponsors.

CREDIT TERMS
All sponsorship amounts must be paid to the University within 30 days after an invoice is generated.

GENERATING AN INVOICE
All invoices/statement of charges for Sponsors, in respect of their Sponsored Students’ fees and charges, will be raised through the Student System.

ACCOUNTABILITY
All outstanding Sponsor debts will be recorded in the Finance System.

A Sponsor is liable for all the debt of its Sponsored Students.  The University will determine how to allocate payments made by Sponsors of multiple Sponsored Students in circumstances where the Sponsor fails to make full payment.

The University will allocate payments received to total debt owing.

GENERATING A CREDIT
All credit adjustments will be processed through the Student System after approval by the Chief Financial Officer (CFO), or their nominated representative.

DEBT RECOVERY
The recovery of outstanding debts of Sponsors will be the responsibility of the OFS in consultation with faculties, departments and offices.

The recovery of outstanding debts will be carried out in accordance with the approved procedure and the Fee Rules stated in the University’s Calendar of Governance, Legislation & Rules.

DOUBTFUL DEBTS
Reporting Requirement
The University will provide for doubtful debts in its annual accounts in accordance with Accounting Standard AASB 139.

Timing
The provision for doubtful debts will be reviewed on an annual basis and adjusted accordingly to reflect the risk of non-recovery of outstanding monies.

Methodology
The provision for doubtful Sponsor debts will be based on specific student debts where the student is no longer enrolled in a program at the University.

Review
The methodology used to calculate the provision for doubtful debts will be reviewed on an annual basis to ensure it represents a reasonable estimate of risk to the University based on historical data obtained.

BAD DEBTS
The University will write-off any bad debts on a regular basis, with a minimum of once a year, after all attempts to recover the debt have been exhausted.

Approval
All requests for bad debt write-offs will require the approval of the Chief Financial Officer.

Accounting
All bad debts that have been written-off will be written back to the cost centre that received the credit when the invoice was raised, unless otherwise authorised by the Chief Financial Officer.

Reporting
All bad debts written off will be reported to the Finance and Facilities Committee as detailed in the Sponsorship Management Procedure.

RESPONSIBILITIES
The Chief Financial Officer will be responsible for administering this Policy on behalf of the University. 

COMPLIANCE AND BREACHES
The University may commence applicable disciplinary procedures if a person to whom this policy applies breaches this policy (or any of its related procedures).

Policy Information

Contact OfficerAssistant Director, Revenue Services, Office of Financial Services
Manager Revenue Services, Office of Financial Services
Date Approved7 December 2012
Approval AuthorityDeputy Vice-Chancellor and Chief Operating Officer
Date of Commencement7 December 2012
Amendment History

29 May 2017 - updated Approval Authority from Deputy Vice-Chancellor and Chief Operating Officer to Chief Operating Officer and Deputy Vice-Chancellor.

Date for Next ReviewAugust 2014
Related Documents

Debt Management Policy
Debt Recovery - Student Debtors Procedure
Sponsorship Management Procedure (see tab above)

Governance, Legislation and Rules:  Fee Rule 12 Accounting Standard AASB 139
Policies / Rules Superseded by this PolicySponsorship Management Policy approved 1 January 2009
KeywordsSponsorship, Sponsored Student, External Sponsor, Internal Sponsor

PROCEDURE

Purpose

To outline the responsibilities associated with the management, collection and processing of sponsorship owing to the University. To ensure that sponsorship debts are recovered in an efficient and timely manner in accordance with the University’s Sponsorship Management Policy.

Procedure

This procedure is to be read in conjunction with the Sponsorship Management Policy.  Terms used in this procedure have the same meaning as in the policy.

This procedure requires actions by the following: The following steps must be taken for each Sponsored Student.
  • receive a signed financial guarantee from their Sponsor on the Sponsor’s letterhead
  • set up the Sponsor in the Student System
  • review Sponsors’ aged debtors report on a regular basis to ensure that University Fee Rule 12 is applied to all Sponsored students
  • consult relevant University office/department before referring the indebted External Sponsor to the University debt collector for further recovery
  • write-off bad debts.

Manager Revenue Services, Office of Financial Services

SET UP NEW SPONSORReceive and process the letter of guarantee from the Sponsor, confirming the acceptance of financial liability for the Sponsored Student(s) and the specified period.

Enter details of the Sponsor in the Student System. For a new Sponsor update the relevant student records. For an existing Sponsor, check and update the forwarding address, contact personnel and email details.

Associate Sponsored Student to the relevant Sponsor in the Student System. INVOICE AND COLLECT FEES AND CHARGES
Send invoice and supporting documents to the address nominated by the Sponsor. This includes a statement of charges for all outstanding debts, an invoice for each Sponsored Student. Invoices will be sent in the University’s standard billing times:
  •  1 April for First Half Year
  •  1 September for Second half Year.

Review and analyse monthly aged sponsor debt report.

Send reminder email notices for all debts outstanding two weeks past the due date stated on the statement of charge notice. Send a copy to relevant office/department for information and advice.

If the Sponsor fails to respond within 14 days of the reminder email being sent, advise the respective Sponsored Student of the consequences of non-payment by the Sponsor.

If after 21 days from the date of the original reminder email there is no response from the Sponsor, sanction the respective Sponsored Student in accordance with Fee Rule 12, after consultation with relevant office/department.

RECOVER DEBTS
As a last resort, the University may engage its debt collector for recovery of its debts owed by External Sponsors.

Engage Debt Collector
Forward debts equal to or greater than $100 to the University’s debt collector for recovery after assessment by Assistant Director, Revenue Services, OFS in consultation with relevant University office/department.
Take Legal Collection OptionReview debts equal to or greater than $1,000 with the Assistant Director, Revenue Services, OFS, and in consultation with relevant office/department, to determine if the debt is to be pursued through the courts as a last opportunity for recovery.

WRITE OFF BAD DEBTS
Once approval is received from the Chief Financial Officer, write-off the bad debt.

Process write-off sanction in the Student System.
Assistant Director, Revenue Services, Office of Financial Services

OBTAIN DEBT WRITE-OFF APPROVAL
Make all reasonable attempts to recover the debt. Only then forward a request to write-off the debt to the Chief Financial Officer for approval.

REPORT TO FINANCE AND FACILITIES COMMITTEE
Report all bad debts that have been written off to the Finance and Facilities Committee:
  • amounts less than $5,000 –  twice a year in summary form
  • amounts of $5,000 or more  – to the next Committee meeting and each subsequent Committee meeting in detail until the debt is paid or written off.
Chief Financial OfficerConsider, and if appropriate, approve the proposal to write-off bad debt.

Procedure Information

Contact officerManager, Revenue Services, Office of Financial Services
Date Approved7 December 2012
Approval Authority

Chief Operating Officer and Deputy Vice-Chancellor

Date of Commencement7 December 2012
Amendment History

29 May 2017 - updated Approval Authority from Chief Financial Officer to Chief Operating Officer and Deputy Vice-Chancellor.

Date for Next ReviewAugust 2015
Related DocumentsSponsorship Management Policy
Debt Management Policy
Debt Recovery-Student Debtors Procedure
Fee Rule 12
KeywordsSponsorship, Sponsor, Sponsored, Student, Debt
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