Section: GENERAL ACCOUNTING
|Section 3000 Policies|
Policy Number: 3132.01
Policy Title: Write Off of Uncollectible Accounts Receivable
Policy Effective Date: April 1, 2011
Last Revision Date: October 6, 2011
(see revision history)
It is the policy of the CSU that debts and accounts receivable balances determined to be uncollectible be written off in a timely manner. Each campus must prepare written procedures that implement this policy.
Campus procedures must describe:
- How debts and accounts receivable balances are determined to be uncollectible
- The process for approving the write off of uncollectible balances.
Campus procedures must provide that debt and accounts receivable balances determined to be uncollectible must be written off by the close of the fiscal year. Reserves for doubtful accounts should be established based on type of outstanding debt and expectations of repayment. (See Guidelines section reference below.) In general, any receivables that remain outstanding after one year should be written off the books.
Campus procedures must require that the Chief Financial Officer (CFO) approve the write off of balances $5,000 and more. The CFO must delegate in writing authority to approve the write off of balances below $5,000.
The write-off of uncollectible balances in funds held by the State Treasurer and accounted for by the State Controller must follow the process outlined in the State Administrative Manual.
Benjamin F. Quillian
Executive Vice-Chancellor/Chief Financial Officer
Approved: October 31, 2011
APPLICABILITY AND AREAS OF RESPONSIBILITY
RESOURCES AND REFERENCE MATERIALS
Executive Order 616 - http://www.calstate.edu/EO/EO-616.pdf
Executive Order 731 - http://www.calstate.edu/EO/EO-731.pdf
Executive Order 1000 - http://www.calstate.edu/EO/EO-1000.html
Sample Policy on Allowance for Doubtful Accounts – GAAP Manual, Sec. 9, Exhibits1-23 http://www.calstate.edu/sfsr/GAAP/Manual2011/index.shtml
Coded Memo FS 2009-02 - http://www.calstate.edu/FinancialServices/codedmemos/2009/FS2009-02.pdf
Sound Business Practices:
Laws, State Codes, Regulations and Mandates:
- Education Code 89750.5(c) - http://www.leginfo.ca.gov/calaw.html
- Title 5 California Code of Regulations, Section 42380 - Debts Owed California State University - http://ccr.oal.ca.gov/linkedslice/default.asp?SP=CCR-1000&Action=Welcome
COGNIZANT OFFICE(S)CO Manager:
Ms. Kelly Cox
Associate Director, Financial Services – Accounting Department
CSU Office of the Chancellor
Ms. Lisa Chavez