Delinquent School Meal Account Procedure

The purpose of this procedure is to establish guidelines and provide consistency when a meal account becomes delinquent.

Delinquent Account Criteria

• Individual Account Criteria: Accounts with an outstanding balance greater than $300 for an individual student.
• Family Account Criteria: Accounts with an outstanding balance greater than $500 for a family (multiple students from the same household).
• Ensure that no payment has been made on the account(s) in the last three months.

Review and Documentation of Attempts

• Ensure that multiple attempts to collect payments have been made.  Documentation of these attempts should include:
  • Phone calls, emails, and letters sent to the guardian(s) requesting payment.
  • Payment reminders sent on weekly, including clear communication of the outstanding balance.
  • A final notice letter requesting payment, indicating that the account will be referred to collection if unpaid.
• These attempts must be documented and stored for auditing purposes for 3 years plus the current school year.

Final Notice Issuance

A final notice (via certified mail, email, or other traceable methods) will be sent to the guardian(s) of the student(s) or family with the delinquent account.  This notice will include:

• The amount owed and the date it became due.
• A clear statement that if the balance remains unpaid within 15 days, the account will be sent to collections.
• A contact number or email for payment inquiries or resolution.
• Instruction on how to avoid collections.
• A reminder that referral to collection may affect the guardian’s credit rating.

Payment Arrangement Option

• Before sending the account to collection, offer the option of establishing a payment plan to the guardian(s).
• Specify a reasonable timeframe for the guardian to enter into a payment plan, which may be no more than 15 days from the final notice date.

Prepare the Delinquent Accounts for Referral

• Verify the account balances for accuracy before submitting the accounts to collections.
• Create a detailed list of all the delinquent accounts, including
  • Name(s) of the student(s)
  • Amount owed.
  • Parents/guardian contact information
  • Any prior attempts to collect (including dates and methods)
• Ensure that all necessary documents and records related to collection attempts are compiled and stored.

Referral to Collections

Once the final notice period expires and payment has not been received, send the accounts to the collection agency.  Include all necessary documentation:

• Delinquent account information (names, amount owed, contact information)
• Documentation of prior collection attempts (letters, calls)
• A copy of the final notice sent to the parent or guardian.
• Any payment arrangement discussions if applicable.

Notify Parent/Guardian of Referral

• Notify the parent/guardian (in writing) that the account has been referred to a collection agency.
• Provide the agency’s contact information for them to work directly with the agency on settling the debt.

Monitor Collections Process

• Ensure that the collections agency regularly updates the school district on the status of the accounts.
• Review the progress of debt recovery and ensure that collection efforts are conducted in a compliant manner.
• Follow-up if necessary to ensure the agency adheres to agreed terms.

Record the Outcome

Once the debt is settled, record the outcome of the collection attempt.

Successful Recovery

Mark the account as paid in full and release any remaining balances from the school district records.

Unsuccessful Recovery

Determine whether further steps can be taken.  If the debt is determined to be uncollectible, it may not be absorbed by the non-profit school food service account, but must be restored using non-Federal funds.  These funds may come from the school district general funds, special funding from State or local government, school or community organization or any other non-Federal sources.