200.6 - Statewide Accounting Policy - Use of Specific Collection Techniques

Policy Area:  Accounts Receivable
Policy Sub Area:  N/A
Authority:  GS 147-86.21 and GS 147-86.22(c)
Effective Date:  7/1/1995
Last Revision Date:  N/A
Policy Owner/Division:  Statewide Accounting


Collection techniques used by state agencies may include:

  • Credit Bureaus: Use the credit bureaus to report past-due accounts, gain information on past-due accounts, and where applicable, determine the credit potential of a prospective account. Statewide contracts with collection agencies require that the collection agencies use credit bureaus. 
  • Collection Agencies: Unless it can be shown not to be cost effective, agencies and institutions shall contract with collection agencies to collect past-due accounts. The State has contracted through the Office of the Attorney General, with outside collection agencies to collect all statewide account receivables with the exception of University hospital accounts and UNC physicians and associates. 
  • Voluntary Payroll Deductions, Liens, and Judgments: When such measures are deemed to be cost effective, agencies shall obtain voluntary payroll deductions of debtor’s wages, liens against debtor’s assets, or judgments from the court in an effort to collect the funds due. Voluntary payroll deductions must be in writing and signed by the debtor. 
  • Administrative Offset: instructions on the use of the individual income tax setoff program. Agencies are encouraged to establish an internal setoff procedure to match agency accounts receivable with agency accounts payable. General Statute 143-552 "State and Certain Local Educational Entity Employees, Nonsalaried Public Officials, and Legislators Required to Repay Money Owed to State" provides agencies a vehicle to collect accounts receivable owed by State employees.



Accounting Guidance


Related Documents (Memos/Forms)


Revision History

  • None to date