The procedure outlined below is intended to ensure that proper approval is obtained in advance of executing write- offs, and that each request is based on fully documented good faith efforts to collect the account (i.e. due diligence). This procedure does not pertain to loans administered under the Federal Perkins Student Loan Program. Show
A. SUMMARY OF ADMINISTRATIVE PROCEDURE 1. Approval: The authority
to approve the write off of uncollectible accounts is vested in the Chief Financial Officer (CFO) at each campus. All decisions to write off an account must be based on review of documented collection efforts demonstrating that due diligence has been exercised. All write-offs must be approved in advance by the CFO, or his/her designee, at each campus. a. For balances less than $10 no collection work is necessary before writing off balances, but CFO or designee advance approval is still required. For balances of $10 or more but less than $100, the collections department must make at least 2 good faith efforts to collect by letter or telephone. For balances of $100 or more, at least 3 good faith efforts to collect must be made and documented. 4. Requests for Write-Offs: If it is determined that further collection action would not be productive, and after appropriate consultation with the referring office, the complete record of the account and collection actions will be forwarded by the collections department to the Campus CFO, or his/her designee, for write-off approval. B. DETAILED OPERATING PROCEDURES for UNH, UNHL and UNHM accounts (Students or Commercial) 1. Delegation of Authority: As an administrative convenience, the UNH authority to write-off individual accounts up to $1000 as well as all balances of deceased students, and any balances discharged by federal or state courts under bankruptcy petitions, has been delegated to the Director of Business
Services. a. UNH Business Services will make at least 2 good faith efforts to collect, by letter and/or telephone, as appropriate in each case. 5. Balances of $1000.00 or over: When the account is 90 days in arrears, UNH Business Services will assume collection responsibility. It is the originating department's responsibility to notify UNH Business Services on a timely basis, and provide all relevant background materials. a. UNH Business Services will make at least 3 good faith efforts to collect by letter and/or telephone as appropriate. 6. Balance write-off procedures: Upon approval of the Director of Business Services or Associate Vice President for Finance and Administration, the Director of Business Services will effect the following actions: a. A "Credit & Collections Write-Off" (CCWO) credit amount will be entered into the Banner system to write-off the account against the Banner reserve for doubtful accounts fund. 7. Reports a. A quarterly report of all accounts written off will be provided to the Associate Vice President for Finance and Administration for review. The official version of this information will only be maintained in an on-line web format. Any and all printed copies of this material are dated as of the print date. Please make certain to review the material on-line prior to placing reliance on a dated printed version. Who should approve authorization of write offs of uncollectible accounts?1. Approval: The authority to approve the write off of uncollectible accounts is vested in the Chief Financial Officer (CFO) at each campus.
Who of the following is the one responsible for the authorization of write off of accounts receivable?Explanation - Authorization of write-offs should be made by a department independent of recording or authorization duties pertaining to accounts receivable. The accounts receivable department maintains the accounts receivable records; the credit department approves credit for customers.
Which of the following best represents a key control for ensuring sales are properly authorized when assessing risks of material misstatement for sales?Which of the following best represents a key control for ensuring sales are properly authorized when assessing risks of material misstatement for sales? Sales orders are sent to the credit department for approval.
Which audit procedure is most effective in testing sales for overstatement?Sales and Assets accounts tend to be overstated by management to have a good financial statement that is appealing to investors. This overstatement can be revealed using vouching.
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