Accounts Receivable Collection and Write-Offs | Clover Park Technical College
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Accounts Receivable Collection and Write-Offs



This policy is to provide adequate controls, audit trails, prompt recording, collection, follow-up and remedy of delinquent accounts receivable. (OFM SAAM-Receivables: Collection procedures 85.54)


A. Definitions:

Receivables: Receivables are the amounts to be collected from private individuals, businesses, agencies, accounts or other governmental units. Clover Park Technical College will promptly record receivables when the asset or revenue recognition criteria have been met or the underlying accounting event has occurred and the amount is determinable. (OFM SAAM 85.54.10)

Past due: A receivable shall be determined to be past due when payment is not received within thirty (30) days of the invoice date.

B. Collections:

Thirty (30) days outstanding from the original invoice date, second notices will be generated and sent to the debtors.

Sixty (60) days outstanding from the invoice date on invoices greater than or equal to $50, debtors will be placed on Unusual Action status and sent a third and final notice, indicating their account may be sent to collections if it remains unpaid. If the debtor is a student with amounts owing of less than $50 in a quarter, the debt will be placed on Unusual Action status prior to registration for the subsequent quarter.

Thirty (30) days following the third and final notice being mailed, the invoice series has been completed. If the invoice has not been paid in full and the debt is greater than or equal to $50 and has become ninety (90) days past due, debtors will be sent to collections for further action.

Other placements on Unusual Action Status: Students are placed on Unusual Action at the time that Library invoices are processed. Students are placed on Unusual Action at the end of the current month for unpaid Daycare invoices. Students with unofficial charges are placed on Unusual Action within 60 days of the charge. No invoices are generated for unofficial charges; past due statements are mailed to students after 30 days.

Upon placing an account on Unusual Action status, the college need not provide any further services of any kind to such individual (staff, student or former student). If a person is denied a request for service due to an outstanding debt, they will be notified that the services will not be provided until the debt is satisfied. The notification will include a copy of WAC 495C-122 which states their right to an adjudicative proceeding.

The college will document all efforts made toward the collection of receivables and interest will be charged on past due receivables in accordance with OFM SAAM 85.54.50.

NSF checks: The College sends a letter to notify customers when a check is returned for non-sufficient funds. The amount of the NSF check is entered in customer accounts, along with a returned check fee. The customer is placed on unusual action and services to the customer will not be provided until the debt is paid. NSF debts that are not paid may be sent to collections after the appropriate procedures outlined above are complete.

C. Write-Offs:

When it has been determined by the Controller that collection efforts by the Finance Department will not result in payment of the amount due, the account will be considered uncollectible and removed from the financial records. The Controller is responsible for determining that due diligence has been exercised in attempting to collect receivables.

Uncollectible amounts up to $2,500: The Controller identifies and authorizes the accounts to be written off. Documentation for write offs should include the collection procedures followed and the reasons the account is considered uncollectible.

Uncollectible amounts over $2,500: Consult the Attorney General’s Office (AG). The AG will be consulted to ensure that cost-effective methods to collect the receivables have been exhausted. The AG either provides authority to write off the account or recommends further collection activity by the College.

On a monthly basis the Controller will provide the Vice President of Finance & Budget or designee a record of all amounts written off during the month.

Accounts that meet one or more of the following criteria may be written off:

  • Accounts returned by a collection agency as uncollectible.
  • The debt has been discharged in bankruptcy.
  • Accounts that are over three years old.
  • Accounts owed by companies no longer in business. Accounts owed by a debtor who has died.
  • Residual amounts under $25.00; collection amount is insufficient to warrant collection efforts.
  • Costs exceed benefits of further collection procedures.
  • Disputed accounts with insufficient documentation to pursue collection efforts.

Other reasons considered on a case-by-case basis considering the type of debt, how long the debt has been outstanding and the debtor’s status.

Collection attempts for students who are currently enrolled should be pursued and not written off except where prohibited due to bankruptcy or other special circumstances.

Accounts that have been turned over to a collection agency should not be written off unless it has been determined that the possibility of collection is remote.

All Unusual Action status on a student’s account shall remain in effect until the obligation has been paid. When the receivable has been written off, the Unusual Action status may be removed from the account.

Delinquent accounts of employees will result in notification of supervisors, administrative action, and possible payroll deductions.


Adopted: 2010

Revised:  N/A