Managing Receivables and Account Write-Off

Directive Statement

Departments should develop guidelines in the management of receivables, whether student or other.  These guidelines should protect university resources and ensure that management goals and objectives are achieved.  Departments should develop guidelines in the management of outstanding receivables, which includes periodic monitoring, to ensure that outstanding accounts receivable balances are appropriately monitored for collections.

A receivable becomes past due if payment is not received by the payment due date.  If concerted reasonable collection effort has been made, and no further collection is foreseen, it is understood that invoices may be written off if they meet the following criteria:

• Invoice age is one year old from the date of issuance
• Invoice age is over one year and if the customer filed for bankruptcy

At no time is a department allowed to waive an uncollectable debt without submitting a write-off request to the Auxiliary Accounting Office.  Departments may not reduce or cancel payments due from customers.  This not only includes unpaid invoices, but also includes returned checks that have not been repaid.

Reason for Directive

University regulations (UF-3.042) require departments to use due diligence and exert every effort in the collection of all accounts.  The President or the President’s designee may write-off or settle any uncollectible account owed the University.

Who must comply?

All UF Departments that bill for goods/services.

Procedures

Departmental guidelines for the management of receivables should include, at a minimum:

1. Written policies and procedures for the recording and collection of accounts receivable
2. Adequate internal controls to ensure the proper separation of duties and safeguarding of assets
3. A reporting system that accurately reports information
4. Ability to determine compliance with policies, plans, procedures, laws, and regulation
5. A periodic review of aged accounts receivable

Delinquent Accounts

Delinquent accounts, that are not satisfied after the University has exercised a reasonable collection effort, can be placed with an approved collection agency.

The following approved collection agencies can be used:

1. Coast Professional, Inc.
2. Collecto, Inc.
3. Conserve
4. Enterprise Recovery Systems, Inc.
5. General Revenue Corporation
6. National Collection Systems
7. NCO Financial Systems
8. Todd, Bremer and Lawson
9. Williams and Fudge
10. Windham Professional

Information on how to contact the collection agencies may be obtained by calling Bursar, Collection Department at 352-392-0766.

Use of an agency other than those listed above should be documented with the approval of Procurement or other relevant authority, and the department accepts the responsibility of performing any contract monitoring, such as obtaining current bond insurance, for contracted collection agencies.

Write-Off

Accounts receivable write-offs must be compiled by the departments and submitted to the Auxiliary Accounting Office on an annual basis. Auxiliary Accounting Office will communicate write-off reporting requirements to all Fee-for-Service Educational Activity (FSEAs) annually in May of every year.

An Accounts Receivable worksheet can be used to report write-off details and provide supporting documentation.  The Auxiliary Accounting Office will report annually to the University Controller and Vice President and Chief Financial Officer the receivable write-offs for all units. Consistent reporting of the annual billing assessment and bad-debt expense for all units is necessary to ensure the monitoring of collection effectiveness.

Reminder: Bad debts resulting from FSEA operations are federally unallowable expenses.

Last Reviewed

Last reviewed on 03/20/2024

Resources

Uncollectible Accounts Write-Off 

Contacts

Auxiliary Accounting: (352) 294-7236

Bursar Collection Department: (352) 392-0766

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