7.0   Bad Debt Expense Write-Off

7.1     Bad debt Write-Offs will be compiled and submitted by the SRBS to the University Comptroller on an annual basis. Accounts Receivable will be considered uncollectable and removed from the general ledger after all customary efforts to collect have been exhausted or the balance does not warrant ongoing collection action. The following Write-Off criteria has been established by the University Comptroller.  

    • The account will have been referred to at least one collection agency and/or litigated.  
    • Student and Non-student Accounts Receivable determined to be uncollectible are to be written-off when they become two (2) years old as of 6/30/xx  (current year), and has not recorded payment activity within twelve (12) months prior to 6/30/xx  (current year).
    • Student Loan Accounts determined to be uncollectible are to be written-off when they become three (3) years old as of 6/30/xx  (current year), and has not recorded payment activity within twelve (12) months prior to 6/30/xx  (current year).
    • Sponsored Program Accounts Receivable that are two (2) years old as of 6/30/xx  (current year) will be identified by the Director of Sponsored Program Services and reviewed with the Comptroller for inclusion in the annual Write-Off.  This review pertains to both governmental and industrial sponsored accounts.
    • Regardless of the age of the account; legal notification that an account balance has been discharged through bankruptcy or notification of death of the debtor, will result in the balance being be written off immediately.
    • All Accounts Receivable that are written off with the exception of bankruptcy and death, are still considered due and payable in full by the debtor.
    • Student Financial Holds and court-ordered judgments, with the exception of bankruptcy and death, will remain in effect until the bad debt Write-Off balance is either cancelled or paid in full.

7.2     SRBS will report annually to the University Comptroller bad debt Write-Offs for all campuses. Consistent reporting of the annual billing assessment and bad-debt expense for all campuses is necessary to ensure the monitoring of collection effectiveness. SRBS will communicate bad debt Write-Off reporting requirements to all campuses annually. 

 

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