Section 320.30  Standards for Aging of Accounts Receivable

a)         In order for an agency to effectively estimate the collectibility of its receivables and properly focus collection efforts, each outstanding receivable due the State must be "aged" relative to its formal due date.  A receivable is considered "current" (not past due) prior to the passage of its formal due date.  When the debtor's due date passes without full payment, the debt becomes "past due" and must be aged according to the number of days beyond the due date that the debt has been outstanding.

b)         For purposes of aging and reporting outstanding receivables, the following aging periods will normally be used:

Past due:  1-30 days

31-90 days

91-180 days

181 days-one year

Over one year

c)         When the above aging periods do not serve an agency's management needs, other reasonable aging periods may be utilized and shall be reported to the Comptroller.  Such other aging periods may be utilized where the different aging period is suited to the monitoring of that receivable, e.g., where specific statutory or administrative provisions preclude action until the completion of a "waiting period".  Also, in some instances a separate aging category will be determined by the agency to be necessary. For example, if an agency cannot begin collection efforts for a six-month period after the debt becomes past due, a separate category of aging should be set up for these receivables.