Minnesota Department of Transportation

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MnDOT Policies

Accounts Receivable

MnDOT Policy #FM016
Revised: May 31, 2023

View/print signed policy (PDF)

Please go to the MnDOT Org Chart to find specific contact information: Org Chart.

Responsible Senior Officer: Deputy Commissioner/Chief Administrative Officer
Policy Owner: Controller/Director, Office of Financial Management
Policy Contact: Cash and Collections Unit Supervisor

Policy statement

The Minnesota Department of Transportation (MnDOT) must follow internal processes to collect on accounts receivable debt as directed by Minnesota Statutes §16D.04.


MnDOT must establish and maintain internal processes for managing all accounts receivable related activities including:

  • How to establish new customers in SWIFT;
  • How to establish new accounts receivable in SWIFT;
  • Where and how customer data will be stored to ensure security measures are established and followed to safeguard private data;
  • Methods to investigate and address issues or concerns;
  • Clear and appropriate collection process, including referring debt over 120 days past due to the Department of Revenue;
  • Routinely reviewing delinquent accounts to ensure sufficient and consistent collection efforts have been attempted;
  • Routine analysis of the collectability of seriously delinquent accounts and provide uniformity to the approval process to write off a debt;
  • Periodically reassessing and updating the allowance for doubtful accounts estimates;
  • Quarterly and year-end accounts receivable reporting;
  • Calculating accounts receivable estimates for year-end reporting, if applicable;
  • Identify and write off uncollectible debts, including maintaining documentation on justification for the write off ensuring compliance with 16D.09 and MMB Statewide Operating Policy #0504-01: Debt Collection Process and Actions; and
  • Report write-offs of $100,000 or more to the legislature.

Internal or Mitigating Controls

MnDOT internal processes must ensure adequate internal or mitigating controls as follows:

  • An employee creating invoices shall not handle deposits.
  • Credit invoices and write offs must be approved according to user roles established in SWIFT which do not conflict.
  • Employees may only approve credit invoices and write offs up to their authorized level of authority.
  • MnDOT must maintain an ongoing report of all write offs and the reason for the write off.
  • Files and records must be secure, accessible to authorized personnel, and maintained according to the MnDOT Record Retention Schedule.
  • All accounts receivable balances must be reconciled by receivable type and receivable system at least once each calendar quarter.

Reason for policy

MMB Statewide Operating Policy #0501-01: Managing and Reporting of Accounts Receivable requires agencies with accounts receivable activity to establish internal policies and procedures to address the level of risk for each type of receivable account. It also requires each state agency to establish adequate controls in policy and practice to address their specific circumstances. Management must be mindful of errors or irregularities in receivable accounts should any exist. Internal policies should include performance measures and unusual variances in the measures and the activities and variances should be investigated and appropriate steps should be taken to address any issues or concerns identified.

MMB Statewide Operating Policy #0504-01: Debt Collection Process and Actions requires state agencies to establish internal policies and procedures for determining when a debt is uncollectible, and for approving and writing-off the debt. These policies and procedures should consider the incremental cost of collecting the debt against the benefit of collection.

MMB Statewide Operating Policy #0102-01: Internal Control System adopts the United States Government Accountability Office, Standards for Internal Control in the Federal Government, also known as the Green Book, as the criteria to design, implement, and operate an effective system of internal control across the executive branch and within individual executive branch agencies. Accountability and separation of duties are integral to internal controls. Both must be established in policy and practice to safeguard the billing and collection of debt owed to the state.

This policy ensures:


All MnDOT employees must comply with MnDOT policies.

Key stakeholders with responsibilities under this policy include:

  • Office of Financial Management
  • Offices and districts


Accounts Receivable

Financial claims against customers for services, products, fines, loans, taxes, and other assessments, for which payment has not been received.

Annual Comprehensive Financial Report (ACFR)

Report that includes the financial statements for the State of Minnesota, and the disclosures necessary to accurately present the financial condition of all state funds and the state component units for the previous year. (See Annual Comprehensive Financial Report)


Payments (cash, checks, money orders, electronic payment, etc.) received that are owed to MnDOT for services, property, products, fines, loans, taxes, or other assessments.

Secure Location

A location free from risk or loss, such as a secure locked drop box, local safe, or secure cabinet that has sound internal controls with appropriate access, if a safe is not available.


Office of Financial Management

  • Establish and maintain internal processes for managing all accounts receivable related activities.
  • Ensure billing requests are processed through the state system (SWIFT).
  • Promptly take collection steps on overdue invoices.
  • Write-off uncollectible debt based on criteria set by MMB in Statewide Operating Policy #0504-01: Debt Collection Process and Actions.
  • Prepare quarterly and yearly accounts receivable reporting for MMB.
  • Make revenue reports available to offices and districts.
  • Reconcile receipts between SWIFT and the state’s financial institution.
  • Develop internal agency procedures and training for proper processing of accounts receivable.
  • Provide training for offices and districts about accounts receivable.

Offices/Districts handling their own billing and/or collections

  • Consult and coordinate with the Central Office Cash and Collections Unit to develop and manage billing, collection, and write-off processes.
  • Complete the Cash Receipt Form and forward cash and checks to the Office of Financial Management – Cash and Collections Unit for deposit within one business day of receipt.
  • Ensure receipts tracked in non-SWIFT systems are posted and reconciled at least monthly.

Offices/Districts not handling their own billing and/or collections

  • Ensure prompt submittal of requests for billing to the Office of Financial Management to expedite billing and prompt customer payment.
  • Complete the Cash Receipt Form and forward cash and checks to the Office of Financial Management – Cash and Collections Unit for deposit within one business day of receipt.
  • Implement sound internal controls to safeguard the employee and state resources.

Policy Owner (Controller/Director, Office of Financial Management)

  • Review the policy every two years, or whenever MMB changes the Statewide Operating Policy, to ensure the policy remains up-to-date.  
  • Ensure procedures, training, and documents associated with the policy remain current.
  • Monitor state, federal, enterprise, agency, or other requirements that apply to the policy or procedures.
  • Consult with the Office of Chief Counsel to ensure the policy and procedures remain compliant with all state, federal, enterprise, agency, or other requirements.
  • Ensure that necessary approvals by state or federal agencies are obtained before changes to the policy or procedures are implemented.
  • Work with the Policy Coordinator to revise the policy and/or confirm its accuracy.
  • Communicate policy revisions, reviews, and retirements to stakeholders.

Resources and related information



History and updates


December 30, 2014


  • Policy 2.90-2 - Administration No. 90-2: Accounts Receivable
    • Effective: November 30, 1990


  • First Revision: May 31, 2023

Policy Review

This policy's next scheduled review is due May 2025.