Finance > Accounts Receivable
Authorised by Chief Executive Officer
Revised Date: 22 August 2024
Debt Management is the process for ensuring amounts owed are recovered in a timely manner.
This procedure applies where invoices are issued and not paid by the due date.
Kyeema’s principal debtor is the NDIS either directly or via Plan Managers or participant direct. At times the delay in payment relates to issues with delays in new NDIS plans, in which case the following process does not apply.
Payment terms
All invoices are set to be due 14 days from the invoice issue date.
Unpaid debts
Invoices which remain unpaid are to be followed up in the following manner:
•14 days overdue – friendly reminder via email
•30 days overdue – phone call
•45 days overdue – stern written request
•60 days overdue – phone call and written notification of withdrawal of credit until satisfactory arrangements have been made.
•90 days overdue – refer to third party collection agency for amounts over $500.
If payment cannot be made in full, encourage the debtor to enter into a payment plan agreement. The plan needs to be in writing or via email and approved by either the Finance Manager, the Corporate Services Manager or the CEO.
Bad Debts
When all avenues have been exhausted and recovery of the debt is not possible, the following procedure is to be followed:
•By this stage credit to the debtor should have been withdrawn so ensure that the debtor is inactive
•Notify the CEO, the Corporate Services Manager and the FAR Committee the debt is unrecoverable.
•The Finance Manager will remove the debt and make the debtor inactive.
•A record of the debt is to be kept in a Bad Debt Register (electronic) and on the debtor’s file.
Plan Managers
Open lines of communication are to be encouraged with Plan Managers to ensure that funding is available and notification is made when funding is running low.
PACE
With the introduction of the new PACE system Kyeema is unable to either quarantine a participant’s funds or see how much funding is available. This makes Kyeema vulnerable.
If Kyeema provides service it is the responsibility of the participant to pay when an agreed support is provided but funds have been exhausted by another provider.