COLUMBUS CONSOLIDATED GOVERNMENT
Write Off Policy
Effective Date: April 3, 2007
Background: To ensure strong fiscal management policies, the proper controls
over revenues are imperative in accounts receivable management and general
oversight over various revenue sources. When government services are
provided on credit, a need is generated to set up a receivable and thereafter,
a process to collect the receivable. It is incumbent on management to set up
proper controls for the receivables.
Sound financial management principles include the establishment of an allowance
for doubtful accounts. Efforts should be made to pursue the timely collection
of delinquent accounts. When such accounts are deemed uncollectible, they
should be written off from the financial statements.
Purpose: To establish uniform guidelines for determining accounts
receivable which should be considered as bad debts and written off. This is to
account for uncollectible receivables in accordance with Generally Accepted
Accounting Principles (GAAP) and provide a fair representation of the accounts
receivable in the Columbus Consolidated Government?s financial statements.
Policy:
Each department and agency of the Columbus Consolidated Government responsible
for accounts receivables shall prepare and review an aged receivable report as
often as necessary, but at least annually at year-end, to determine if any
delinquent accounts should be written off as bad debts.
Each department and agency of the Columbus Consolidated Government shall
prepare and submit to the Columbus City Council a report requesting any account
determined as uncollectible to be written off not included in any of the
specific instances in this policy. This report shall be done at least annually
during the year-end process and submitted to the Columbus City Council for
approval. An annual report will also be provided to the Columbus City Council
outlined all write offs that met the specific requirements of this policy.
Both reports will include name, type of account, transaction date, write-off
amount and reason for write-off.
The City Manager shall have the authority to write off and clear as
uncollectible any general amount receivable meeting the following criteria:
- Debtor is deceased
- Debtor is physically incapacitated to the extent or probability of his/her
ability to pay the debt is doubtful and can be supported by written
documentation
- Debtor is incarcerated
- Delinquent accounts received back from collection agency as uncollectible
- Bankruptcy
- Foreclosures
- Litigation agreements
- Not productive or cost effective to sue a debtor
- Accounts up to $100 where sufficient evidence shows account is uncollectible
to include records of telephone calls, copies of correspondence.
- Previously adopted write off provisions
Lot cleanings - If a property is in transition from seller to new buyer, a lien
for lot cleanings may be written off with documentation from the originating
department.
Ambulance ?
Contractual Write Off?s: Required by all Government agencies. A contractual
write off is a percentage of the allowable amount billed to each agency. This
contractual write can be different for each agency.
Medicare
Medicaid
Tricare/Champus
Active Military
Veteran?s Administration
Rutledge State Prison
WellCare
Peach State
Worker?s Compensation: In some cases, Worker?s Comp claims are not paid in
full. In these cases, balances are written off because we cannot bill the
patient.
Jail Transports: All transports from the county jail are written off.
Bankruptcies: Bankruptcies are written off at the time we receive the
discharge of debtor on chapter 7 cases only. Chapter 13 cases are flagged
bankruptcy but not written off at that time because the bankruptcy plans could
include partial or full charges for payment.
Indigent Care: In these cases, patients must provide documentation from the
hospital where they have qualified based on income.
Administrative Write off?s: When the Administration determines the patient
should not be responsible for payment.
Bad Debt: Account where Collector?s have exhausted all means of collections.
Small Balances: Any account where the balance is less than $5.00.
12 Month Spousal Support: When an individual has the courts provide a years
support on outstanding debt due to the passing of a spouse.
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