Write offs Policy - Northern Michigan University
Write offs Policy
Purpose: Establish guidance on removing uncollected accounts receivable from University records.
Applicability: All Faculty, Staff, and Students
Before an account may be written off, it must be determined to be uncollectible. Accounts may be determined uncollectible based on any of the following criteria:
1. Notification from the Michigan Department of Revenue, the University's legal counsel, or a professional collection agency that the account is uncollectible.
2. Notification from the appropriate court that the individual or business has been declared bankrupt.
3. Notification of the death of the individual.
4. The account is over 120 days delinquent, has a balance of $25 or less, and is considered uncollectible by Financial Services.
5. The account is over one-year delinquent, has a balance of over $25, and is considered uncollectible by Financial Services.
Once an account is determined to be uncollectible, the account will be written off as follows:
1. Accounts with a balance of $25 or less will be written off with the approval of the Controller or the Vice President for Finance and Administration.
2. Accounts with a balance greater than $25 will be written off upon the recommendation of the Controller and with the approval of the Vice President for Finance and Administration.
Any account that is written off will receive no future services from the University, unless the debt is paid or arrangements for payment are made with the University Collections Department.
|Oversight Unit:||CONTROLLERS OFFICE|