300.5 Bad Debt/Write Offs
WRITE-OFF OF UNCOLLECTIBLE ACCOUNTS RECEIVABLE: At the time of Write-off:
- The receivable is no longer included in the general ledger and no longer reported as a receivable in the financial statements.
- The institution has stopped active collection efforts. Depending on the nature of the write-off, the receivable may still be sent to the Oregon Department of Revenue for offset.
- The amount of the write-off is still tracked in the receivables accounting system to alert when to reinstate the receivable when a debtor requests services (e.g., transcripts and subsequent enrollment) in the future.
Required allowance for doubtful accounts for receivable accounts that are older than five years is part of the year end adjustment to the allowance for doubtful accounts. Specific accounts in Banner SIS are not written off as part of the adjustment.
WRITE OFF SCHEDULE: PSU shall develop a schedule that is used to support the write-off of accounts receivable items. The supporting schedule shall show written approval for write off. The schedule should include the following information:
- Date
- Institution
- Fiscal Year
- Name of Debtor
- Amount Owed by Debtor
- Acceptable Reason for Write-Off
| Reason | Description |
|---|---|
| No Assets in Foreseeable Future | The debtor does not and will not, for the foreseeable future, own nor have the right to own assets from which the debt could be collected. |
| Collection Costs Equal or Exceed Debt | It is reasonably estimated that cost of collecting the debt would equal or exceed amount owed. |
| Deceased Debtor and No Assets | The debtor is deceased, and there are no assets in the estate from which the debt could be collected. |
| Defunct Corporation | The debtor is a corporation which is not, and for the foreseeable future will not be, engaged in any income-producing activity or is no longer incorporated, and has no assets from which the debt could be collected. |
| Uncollectible in Foreseeable Future | The agency is and will be, for the foreseeable future, unable to collect the debt from the debtor or anyone owing the debtor or any assets of the debtor. |
| Bankruptcy | These debts have been discharged in a bankruptcy proceeding. |
| Exhausted efforts | Written evidence that all reasonable efforts have been made to collect the debt, such as collection notices and assignments. |
| Assigned to the U.S. Department of Education | These debts are NDS/Perkins Loans. |