Debt should only be written-off if it is genuine and due, and it has been established it is not possible or economic to recover, having completed all previously listed activities in this section. Uncollectible debts, including those in respect of sponsored research activity, will be an expense against the Institution13.
Debts that are not due (i.e., the related goods or services have not been delivered) should not be written-off as they require a credit memo to be raised against the outstanding invoice.
In accordance with the Finance Regulations14, the following authorities exist to write off bad debts or for part settlement, where all reasonable steps have been taken to recover them:
| Amount of debt (including VAT) | Authorisation level required | Action |
|---|---|---|
| Debtors up to £10,000 | Head of Institution | Complete a ‘Write Off’ form and send to Credit Control team |
| Debtors of between £10,000 and £25,000 | Director of Finance | Complete a ‘Write Off’ form sent with an email containing supporting information |
| Debtors over £25,000 | Finance Committee | Formal paper to be prepared and submitted |
As a guide to the level of supporting information required when submitting a write off request exceeding £10,000 to the appropriate authoriser, you should provide responses to the questions below:
- What were the central issue/s leading to non-payment?
- What actions and escalations were taken and why it is considered unrecoverable?
- What mitigations are in place now to prevent this happening again in the future?
Upon the completion of the above and the receipt of the approved request, Credit Control will action the write off in CUFS. If the invoice being written off was subject to VAT, Credit Control will inform the Tax team, as the VAT may be reclaimable which may decrease the cost to the institution.
13 Financial Regulations 2012, 12.3
14 Financial Regulations 2012, 12.3
Latest version 17 April 2024.