Financial Services

Credit Control Policy

The provision of credit to an organisation or individual should only occur if they have a history dealing with the University, or if the Business Unit is satisfied with the customer's good standing (for example, government departments).

Policy statement

  • If a Business Unit wishes to waive the need for a credit application on a new customer, then in addition to completing the authorisation section, they must note that they have waived the need for the credit application. This waiver must be authorised by Band 5b delegated officer.
    New customers otherwise are required to complete an Application for Credit Form, which, along with a request to create a new customer completed by the Business Unit, will be processed centrally to establish a trading account. A credit check will only be carried out if requested by the initiating Business Unit. Credit check costs will be charged to the Business Unit. Regardless of the results of any credit checks the risk for providing credit will remain with the Business Unit at all times.
  • It is recommended Business Units conduct credit checks in all cases where the organisation or individual is not well known or has not any past dealings with the University. We suggest Level 1 checks for amounts to $10,000, Level 2 checks for amounts to $50,000 and a Level 3 check for amounts over $50,000. Costs vary from $50 to several hundred dollars depending on the level of detail requested. For further information regarding credit checks, contact Financial Services, Revenue.
  • Upon receipt of a properly completed Application for Credit and Request to Create a New Customer Form from a Business Unit, Financial Services (Revenue) will verify on the AR system whether a trading account already exists for the customer and check the details on the request form are accurate and meet the minimum requirements for a customer to be created. If no customer account exists, Financial Services (Revenue) establish a new trading account and advise the Business Unit.

Note: The cost of establishing trading accounts, extending credit, credit management and processing payments make it uneconomic for the University to create new trading accounts and provide credit for amounts under $200. Where sums involved are under $200 it is recommended that payment for any goods or services be negotiated/obtained upfront and customers issued with a tax/invoice receipt (available in book form from Financial Services). Ad hoc credit card payments can also be accepted if the customer completes the appropriate credit card authorisation form.

Key controls

  • Ensure credit and collection policies are in writing.
  • Conduct credit checks on new credit customers.
  • Regularly review a report of outstanding invoices and have a second independent person review the same report.
  • Have transactions, such as non-cash credits and write-offs of bad debts cross-checked.
  • Ensure there is a well-documented and strict policy for the follow-up of overdue accounts.
  • Review credit balances on a regular basis.