Fayetteville Policies and Procedures  301.0 

Abatement Procedure for Uncollectible Accounts Receivable

Monitoring of Accounts Receivable

University of Arkansas Policy 301.2 requires accounts receivable activity be tracked using the Accounts Receivable System (ARS) managed by the Treasurer's Office, unless Financial Affairs has approved the exception. The Treasurer's office and all units, which have received exceptions, are responsible for monitoring their approved accounts receivable systems.

Determination of Uncollectability

The Treasurer's Office and units approved to manage their own accounts receivable systems are responsible for establishing procedures for the aging and collecting of those accounts. A.C.A. § 19-2-305, established guidance for the various state agencies to abate uncollectible monies owed them. In order to diligently and actively pursue the collection of their accounts and notes receivable, units may choose methods including, but not limited to:

  • Contacting the debtor by telephone or letter within a reasonable time after an account becomes past due.
  • Referral of the account to an external collection agency, to the extent that the cost of such referral does not exceed the maximum costs outlined in A.C.A. § 19-2-305(b)(2).
  • Pursuing set-off of debt against income tax refunds as allowed by A.C.A. §§ 26-36-301 -- 26-36-320.
  • Pursuing other means of collection that are deemed feasible and economically justifiable. 

Abatement of Debt

When the Treasurer's Office and other approved units have completed their collection procedures, the listings of debts determined to be uncollectible are forwarded to Financial Affairs. Financial Affairs combines the lists and collection procedures into a single request for abatement, which is sent to the Chief Fiscal Office of the State of Arkansas.

The Chief Fiscal Officer of the State will notify the University, in writing, when the request for abatement is approved.

All documentation relating to the abatement request is maintained by Financial Affairs and is available for audit review.

Revised June 28, 2017
Reformatted for Web March 31, 2014
Revised November 30, 2011
Revised December, 2002
Revised May, 1998
January 1, 1993