UAMS ADMINISTRATIVE GUIDE
|SUBJECT:||ABATEMENT OF UNCOLLECTIBLE ACCOUNTS RECEIVABLE|
The purpose of this policy is to inform departments within the University of Arkansas for Medical Sciences (UAMS) of the procedures to follow for the abatement of uncollectible accounts receivable. Prudent fiscal policy dictates that uncollectible accounts be written off in a timely fashion and in a manner consistent with State law. Therefore, UAMS will request abatement of all uncollectible accounts on an annual basis.
- Contacting debtor by phone or letter within a reasonable time after an account is deemed delinquent; or
- Referring an account to a licensed collection agency or an attorney for collection with remuneration not exceeding fifty percent (50%) for accounts of $500.00 or less and not exceeding thirty-three and one-third percent (33 1/3%) for accounts in excess of $500.00, except that if an agency is unable to procure the services of a collection agency or attorney for the collection of any account in excess of five hundred dollars ($500.00) or a fee of one-third (1/3) of the amount recovered as authorized herein, the agency may report such a fact to the Legislative Joint Auditing Committee and the Committee may authorize the agency to pay a higher fee for collecting such accounts but not to exceed fifty percent (50%); or
- Pursuing set-off of debt against income tax refunds allowed by Act 372 of 1983 as amended; or
- Pursuing all other available means of collection if deemed feasible and economically justifiable by the state Agency.