DIXIE STATE COLLEGE OF UTAH

POLICIES AND PROCEDURES MANUAL


Section: 6-Administration

Policy No: 6

Approved: 4/26/96
Revised: 9/27/02

Policy: PERSONAL CHARGE ACCOUNT POLICY-BOOKSTORE

6-6 PERSONAL CHARGE ACCOUNT POLICY-BOOKSTORE

6.1 POLICY

6.1.1 All full-time faculty and staff may purchase items at the college bookstore and charge the amount to a personal charge account.

6.1.2 At the end of each month, the accounts will be reconciled to eliminate any billing errors.

6.1.3 For any account exceeding $300.00, the customer will be required to sign a payroll withdrawal form giving authorization to withdraw money from their monthly paycheck to pay on the individual account. The amount paid must exceed any monthly interest charges.

6.1.3.1 A 10% payment on the unpaid balance will be due monthly.

6.1.4 The maximum amount any employee can charge will be $3,000.00.

6.1.5 Any employee not making a payment within a six month period will lose the privilege of charging and the account will be suspended until the account is paid.

6.1.6 The bookstore director will decide if the account will be reopened

6.1.7 All amounts owed on an account will be due and payable in full on the termination or resignation of an employee from the college.

6.1.8 Any legal fees and collection costs will be paid by the employee.

6.2 PROCEDURES

6.2.1 The customer will be assigned an account number.

6.2.2 Charges will be made on a 3-part sales slip.

6.2.3 A copy will be given to the customer.

6.2.4 A copy will be retained for the use of the bookstore accounts receivable department in entering information on each persons account on the computer and then filed according to invoice number.

6.2.5 A copy will be stamped and placed in each customerís file.

6.2.6 At the end of each month, the accounts will be reconciled to eliminate any billing errors.

6.2.7 A statement will be printed and sent to all customers on the first of each month.

6.2.8 The terms will be net 30 days.

6.2.9 Any bill going past the net 30 days will be charged a monthly interest fee (APR - Annual Percentage Rate) as set by the Bookstore Director and Auxiliary Accountant.

6.2.9.1 The APR (Annual Percentage Rate) may vary yearly depending on current market trends. The APR will be reviewed at the end of each fiscal year and will be determined by comparing the rates of local banks, credit unions, and merchants for credit cards and revolving accounts. An approximate mean or median rate will then be selected. The APR will be published on the employee's monthly statement.

6.2.10 An aged trial balance report will be generated every month and analyzed by the bookstore director and college controller.