BATON ROUGE – State Treasurer John Kennedy wants the state to take an active approach in collecting the more than $1 billion it is owed.
The Cash Management Review Board met May 29 to discuss how the state can do a better job of collecting the $1.1 billion in accounts receivable that are 180 days past due.
“The bottom line is the state can do a better job of managing its receivables, especially now when we are faced with crippling budget cuts to health care and higher education,” Kennedy said. “The state wouldn’t even be facing some of these problems if we aggressively pursued uncollected debts.”
All state agencies and related departments are required by law to report information on accounts receivable and debt owed to the state on a quarterly basis.
Uncollected receivables include various fees and licenses such as university and health care bills that are owed to the state and have not been paid.
In the most recent State of Louisiana Receivables Report prepared by the Division of Administration for the quarter ending June 30, 2008, $1.1 billion in receivables is reported as being more than 180 days past due. Of this amount, the division recognizes a certain percentage of write-offs and permits agencies to label some debts as uncollectible.
Kennedy proposed that the Cash Management Review Board take jurisdiction over uncollected receivables and begin to take an active role in pursuing all available options for collecting money owed to the state.
The board consists of the Treasurer, Commissioner of Administration and Legislative Auditor.
“We need to go after these debts that are owed to the state and stop allowing such a large amount of money to be written off as uncollectible,” Kennedy said. “We have sufficient monies to deliver services to the people in our state who need help if we prioritize our spending, do a better job of managing the money we already have, and collecting the money that is owed to us.”
