The board of trustees recognizes the importance of ensuring accounts receivable are collected in a timely, fair, and cost-effective manner. This policy applies to all accounts receivable, provided that collections of unpaid school lunch charges will follow the requirements of Policy 771.
DEFINITIONS
“Account” means all charges that are affiliated with a specific person, entity, or address. An account may include a single student at an address or may include multiple students at a single address.
“Collection Agency” means a firm with a permit issued pursuant to Idaho Code §26-2201 et seq. retained by the district pursuant to a written contract to collect debts owed to it by any person.
“Debt” means and includes all amounts owing to the district on an account or accounts, including a reasonable fee for debt collection services payable to the collection agency.
“Delinquent” means a debt that shows a balance owed beyond its due date.
“Reasonable Attempt” means that the district has notified the debtor, either by mail, electronic mail, telephone or in person, of the existence of the debt and that the district is attempting to collect the debt and any information obtained will be used for that purpose.
COLLECTION PROCEDURES
The following process may be used by district staff to collect outstanding debts:
1. Student charges, fees or other charges are entered into the district’s student account billing system or other appropriate billing system. Charges are due within 30 days of the transaction; all charges not paid within 30 days are considered delinquent.
2. When an account becomes delinquent, a first written notice will be provided to the account holder that includes the amount due, the nature of the debt, the date the payment was due, and a new date by which payment must be made before the district engages in further attempts to collect.
3. If the debt is not paid by the date specified in the notice provided under paragraph 2 above, the district will provide a second written notice repeating the information from the first notice, inviting the parent to make a partial payment and enter into a payment plan by a specified date.
4. If the debt is not paid or a payment plan is not entered into by the date specified in the notice provided under paragraph 3 above, the district will provide a final written notice that includes the information set forth in the “Notice” section below. In no case will a debt be assigned to the collection agency unless the district has made reasonable attempts to advise the account holder of the debt and at least 30 days have elapsed from the time such notice was attempted. The district will maintain a record of all attempts to notify the debtor of the existence of the debt.
5. If the account is remitted to the district’s contracted collection agency, the collection agency may pursue the debt via efforts that are defined by either a memorandum of understanding or service agreement, which agreement may be reviewed and approved by the board of trustees or its designee.
6. After 12 months any amount remitted to the collection agency which is deemed to be uncollectable may be written-off by the district. However, if after that time the charges are collected the amount may be reentered, and the account cleared of the collected sum.
7. Delinquent accounts may be charged additional fees, including interest, to cover the costs of collections, which fees shall be governed by the district’s agreement with the collection agency. In no case will any fees exceed 33% of the unpaid debt per account.
8. No debt will be remitted to collections if there is a good faith effort to clear the account by the account holder.
9. Charging to student accounts is limited to the elementary level. Payments at the secondary level are on a pay-as-you-go method.
NOTICE
At least one (1) notice sent pursuant to this policy shall be in writing and shall state:
1. The amount of the debt;
2. That unless the debtor, within thirty (30) days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the district;
3. That if the debtor notifies the district in writing within the 30-day period that the debt, or any portion thereof, is disputed, the district may obtain verification of the debt and a copy of such verification may be mailed to the person by the district; and
4. That the district may employ a debt collection agency to collect a debt, which may result in additional costs to the debtor if the debtor fails to pay the debt.
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LEGAL REFERENCE:
Idaho Code Sections
33-512 – Governance of Schools
33-701 – Fiscal Year; Payment and Accounting of Funds
33-705 – Activity Funds
67-2358 – Collection of Public Debts; Fees
ADOPTED: October 15, 2025
AMENDED: