STATE OF WISCONSIN
DEPARTMENT OF HEALTH AND FAMILY SERVICES
DIVISION OF MANAGEMENT AND TECHNOLOGY
BUREAU OF FISCAL SERVICES
TOPIC: Section 4--Receivables 2.0
EFFECTIVE DATE: 12/5/94
TITLE: Debt Collection Policies--External Parties
REVISION DATE: 01/23/02
AUTHORIZED BY: Cheryl Thompson, Deputy Director
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Accounts receivable are created when a liability to a DHFS unit occurs.
Ordinarily, this occurs when a DHFS unit issues an invoice for goods or
services provided to any organization or recipient. Many other circumstances
also create receivables, such as:
Amounts due DHFS as a result of advances or payments under
contracts to counties, nursing homes or other agencies where the
spending is less than the advances or payments.
Amounts due DHFS as a result of audit findings which reflect
unused advances or reimbursements in excess of allowable costs.
Overpayments, or payments in error, to vendors or providers.
Any other circumstance where an obligation of money is due DHFS.
Division and institution management and staff should rely upon these policies
and procedures in their operation and oversight of receivable activities.
Bureau of Fiscal Services (BFS) staff should use these guidelines in their
monitoring of collection activities and to assure proper documentation when
journal vouchers are submitted as part of a write-off request.
Note: The provisions in this directive do not apply to the operations or
accounts of the Billing and Collections Unit, Bureau of Fiscal Services (BFS).
It is the Department's policy to maximize revenues through timely and
systematic collection efforts and to apply cost-benefit principles to the
collection of receivables. Effective collection efforts are essential to
proper receivable management. Minimum collections of receivables shall be:
Billed Timely. Invoices are to be prepared as soon as it is determined
a receivable is due DHFS, following the procedures set forth in SECTION
4, RECEIVABLES 1.0 (Billing Procedures).