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University Write-Off Policy

Write-offs are submitted by the Collections Manager-Accounts Receivable to the Manager of University Collections each year after year-end closing is complete. Generally, each account has been referred to at least one collection agency and/or small claims court prior to write-off consideration. In addition, student debtors are encumbered.

Student and non-student receivables determined to be uncollectible, are eligible to be written off when they become two (2) years old as of 7/1/xx (current year).

Exceptions

  1. Legal notification that account balances have been discharged through bankruptcy or legal notification of death of the debtor:

    Regardless of the age of the account and upon appropriate legal notification, the account balance discharged through bankruptcy or the account balance that exists upon notification of death of the debtor will be submitted for write-off as of 7/1/xx (current year). If these receivables are billed in the Centralized Accounts Receivable System, a code (50) will be placed in the system indicating they are ready for write-off. Accounts Receivable will assure that this information is pulled from the system and appropriately included in the write-off document. If these receivables are established outside of the Centralized Accounts Receivable System, the department must submit a memo to the Manager of University Collections. This memo will be filed in the annual write-off file and included with the annual write-offs as of 7/1/xx (current year).

  2. Forgery/Police Cases:

    Cases of forgery, involving the Police, may be submitted for write-off prior to the two (2) year stipulation only if accompanied by Police reports and full documentation of the case. It must also be determined whether there is any possibility of recovery.

  3. Active Account:

    If an account has recorded payment activity within four (4) months prior to 7/1/xx (current year), the account should not be considered for write-off.

    However, if the University Collections Office determines additional payment activity is likely and no payment activity has been recorded within the last four (4) months, the account should not be considered for write-off. A listing of these accounts and the amount due will be forwarded to the Comptroller for review.

  4. Staff Members:

    A suit should be filed in Small Claims Court against staff members incurring $100 or more. Staff members owing less than $100 should have been referred to a collection agency. Comptroller approval will be required to write-off staff member accounts with balances of
    $100 or more.

  5. Sponsored Program Accounts:

    Sponsored Program account receivables that are two (2) years old as of 7/1/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.
Governmental Accounts:
This section applies to governmental accounts such as USDA, State of Indiana, County Extension Offices, and universities that are not included in the Sponsored Program Services fund range 500-694. Governmental receivables that are two (2) years old as of 7/1/xx (current year) will be identified by the Manager of University Collections and reviewed with the Comptroller on a case-by-case basis for inclusion in the annual write-off.