Collection of Employee Debts – LR 306.1

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University of Arkansas at Little Rock
Policy Name: Collection of Employee Debts
Policy Number: LR 306.1
Effective Date: April 15, 2022
Revised Date: June 30, 2022; April 5, 2010; April 15, 2005
Most Recent Review Date: June 17, 2022


This policy provides guidance for collection of amounts owed to UA Little Rock by current or former employees.


Arkansas law (Ark. Code Annotated §19-2-305) requires state agencies and institutions to “diligently and actively pursue the collection of their accounts and notes receivable.” Possible actions taken to collect balances due may include, but are not limited to:

  1. Contacting the debtor by phone or by letter (including electronic mail);
  2. Referring the account to a licensed collection agency; and
  3. Pursuing setoff of the debt against income tax refunds owed to the debtor.

Additionally, University of Arkansas Board Policy 405.2 establishes the university’s authority to collect amounts due from employees.


Periodically, it may become necessary to take action against current or former employees to collect debts owed to UA Little Rock. Such debts arise from circumstances including, but not limited to, overpayment of employee compensation, excess travel reimbursements, educational expenses such as tuition and fees, personal campus services, or personal expenditures erroneously reimbursed from university funds.

Any employee owing a debt to the university must repay, or make arrangements to repay, all amounts owed immediately after receiving notification that the debt exists. For debts arising from employment related circumstances, the chair/department head of the employing department, the vice chancellor of the employing department and the vice chancellor for finance and administration shall be jointly responsible for enforcement of this repayment requirement. For debts arising from educational expenses of an employee, the vice chancellor for finance and administration shall be responsible for enforcement of this repayment requirement.

Standard debt collection practices of the university, including those actions outlined in Arkansas law (Ark. Code Annotated §19-2-305), will be followed in the event the employee does not make satisfactory repayment arrangements.

Pursuant to Arkansas law (Ark. Code Annotated §25-1-124), the Vice Chancellor for Finance and Administration shall report to the Arkansas Legislative Audit division a loss of university funds greater than $1,500 within 5 business days of discovering a loss of university funds.

Procedures for Collection of Employee Debts

Source: Arkansas law (Ark. Code Annotated §19-2-305), UA Board of Trustees Policy 405.2
Status: Active
Approved By: Chancellor Christina Drale
Custodian: Office of Finance and Administration