UNIVERSITY STEPPING UP COLLECTION OF STUDENT DEBT

Southeast Missouri State University has begun to pursue more diligently every dollar owed by students.

The university's Board of Regents met Wednesday and approved the 1991 financial report.

The regents did not discuss the Nov. 5 election defeat of Proposition B, a $385 million tax-and-reform package for education.

At its meeting, the board approved the financial statements and audit report for the year ending June 30, 1991.

As part of the report, regents learned that the university wrote off $362,920 as uncollectible debt. Another $383,624 was listed as debts "doubtful" to be collected.

In all, the university collected $1.4 million in accounts receivable, the report shows.

The $383,624 which could be collected is a fairly small percentage of that total, but Ken Dobbins, vice president for finance and administration, said that with state funding cuts, every dollar counts.

"We cannot really afford to write these off," Dobbins said.

The university has started a more active collection effort this semester. To that end, a new student receivables and collection department has been formed.

Dobbins said financial suspension notices were sent in October to students who owed money, instead of at the end of the semester, as in the past.

"We sent out 767 letters, and within two and a half weeks collected $400,000," Dobbins said.

"Some 60 students hadn't filled out their financial aid forms. By sending the letter, we were able to help them get that done and to reduce our expenses."

Regent Lynn Dempster added, "It also helps make the students more responsible."

Dobbins said a committee is reviewing student records, including money students owe the university. Recommendations concerning payment policies, collection practices and payment programs are expected.

He said one recommendation might be to have all students pay something up front. "That way they have made an investment in their education.

"There will not ever be zero bad debt, but it will improve," Dobbins said.

The bottom line of the financial report shows the university spent $406,318 more than it received in the 1991 fiscal year.

The fund balances decreased by $97,547. In fiscal year 1990, fund balances increased by $715,702. The university still has money in reserve.

Dobbins pointed out that state appropriations for Southeast for 1991 totaled $30.7 million. For 1990, the figure was $30.2 million.

Dobbins estimated state appropriations for Southeast for the 1993 fiscal year will be $28 or $29 million.

Loren G. Peterson, with the accounting firm Coopers & Lybrand, explained his firm's audit of the university's finances.

He also pointed out several areas where the university should make changes in its accounting practices.

As a result of the audit, the university is changing its accounting system for the University Foundation. It is also reviewing documentation of endowments.