Financial Services

Bad Debts Policy

This policy details how to deal with situations in which repeated requests for a debt that has been incurred but not paid have not been responded to adequately.

Policy statement

In addition to the application of the University's Overarching Revenues and Receivables Policy, the following specific policy requirements are also to be complied with:

  • For those debts which prove to be irrecoverable and require being written-off, the Head of School / equivalent should seek approval for such a write-off through a written request to Financial Services (Revenue).
  • All bad debts must be approved by the Senate for write-off.
  • For further information regarding the writing-off of bad debts, contact Financial Services (Revenue).

Key controls

  • Segregation of duties: responsibilities for billing (raising invoice) adequately segregated from those for collection, deposit of funds and credit issuance.
  • Reviewing and approving of credit notes as per University Financial Delegation.
  • Prompt investigation of credit issuance and disputes with billing amount.
  • Establishment of a documented Revenues and Receivables procedures and controls to ensure all staff know the processes they are expected to follow.
  • Periodic review and approval by legislative bodies of rate of taxes, fines, fees, programs of tax exemption, rate schedules and the like.
  • Regular review on delinquent accounts and take prompt action to collect or consider them for write-off on a timely basis.
  • Retention of records for audit purposes.