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Going Paperless with Student Refunds A win-win for everyone

TACCBO ConferenceJune 12, 2013

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• Diane Novak, CPA • Associate Vice Chancellor, Accounting• Lone Star College System for 8 years• Responsible for Accounting, General Ledger,

Financial Reporting and Student Financial Services.

• Previously Internal Audit Director at LSCS

Your Presenter

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Lone Star College System• 78,000 credit students, total enrollment of

90,000.• Added 30,000 students in past five years• Six colleges, five centers, two University

Centers.• Largest institution of higher education in the

greater Houston area.• 2012 – 2013 operating budget $278 Million.• PeopleSoft Student, Finance and HR

systems.

LSCS Fast Facts

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• Prior to 2011, we used Datatel Colleague ERP student system.

• Student refunds were issued by paper check only. Loan proceeds were issued on stored value cards.

• We used the transition to PeopleSoft as an opportunity to streamline and update our processes.

Time for a Change

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• Direct deposit program began spring 2011.• Marketing Campaign.• Signage and email blasts to students

“Receive your money in 3 days vs. 2 weeks”.

• Advertised in admissions, business offices and financial aid offices.

• Goal by year 3 is 80% participation.

Direct Deposit Program

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• 28,000 refunds = $28M• Paper check = 92%, • Stored Value Card = 8% (Loans)

Fall 2010

8%

92%

Electronic Paper Check

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• 46,590 Refunds = $61M• Paper check = 64%• Direct Deposit = 36%

Fall 2011

36%

64%

Electronic Paper Check

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• 48,000 Refunds = $71M• Paper check = 34%• Direct deposit = 66%

Fall 2012

66%

34%

ELECTRONIC PAPER CHECK

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• 46,000 Refunds = $68M• Paper check = 29%• Direct deposit = 71%

2013 to Date

71%

29%

ELECTRONIC PAPER CHECK

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• Partnered with TouchNet for eRefunding.• Students can enroll on-line via their myLonestar

account.• Banking info is stored on TouchNet’s site not

LSCS database.• TouchNet sends students an email letting them

know their refund was processed.• Other TouchNet products – cashiering, payment

gateway and payment plans.

Third Party Partner

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• Cost savings from fewer printed and mailed checks. (Est. $100k in 2012)

• Fewer returned checks in mail due to bad addresses.

• Student receives money in

3 business days.

WIN – WIN !

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• Happy students = Happy business office