Bad Debts

Ext: 5741                                                                                                                    Fax: 5144

To: Campus Finance Managers                                    cc: J. Trounson 
                                                                                       J. Revill
                                                                                       K. Lee 

From: P.D. Curnow, Chief Accountant

Date: 30 July 2002


Bad Debts

The following set out the underlying rules concerning whether an irrecoverable debt 
should be: 

            a) Written off under the rules set out in the financial regulations with 
                the debit posted to the bad debt account (category code 6001).

or 
            b) Written back to income, i.e. the debit is posted to where the 
                original credit was posted. 

Rules

            i) Where a service has been provided in any financial year and the debt 
               is deemed to be irrecoverable the debit should be charged to 
               the bad debt account (see (a) above).

            ii) Where no service was provided (e.g. a student never even attended a 
                course) then the debit should reverse where the original credit was 
                posted (see (b) above)