Accounting for Uncollectible Accounts (APS 027)

Background

Government Code, Section 403.031(c), reads as follows:

The Comptroller, in consultation with the state auditor and the attorney general, may develop standards and criteria to account for or to reclassify receivables determined to be uncollectible. The standards and criteria developed by the comptroller must comply with generally accepted accounting principles as prescribed or modified by the Governmental Accounting Standards Board or its successors and must provide proper accounting controls to protect state finances. The attorney general shall review and approve the standards and criteria for classification of receivables. Receivables may be reclassified as collectible or uncollectible on a case-by-case basis as determined or approved by the attorney general. The classification of receivables as uncollectible under this subsection does not constitute forgiveness of the debt, and any person indebted to the state remains subject to Section 403.055.

Additionally, Government Code, Section 2107.004, states:

Except as provided by Section 2107.003, not later than the 30th day after the comptroller determines that its efforts to collect a delinquent obligation have failed, the comptroller shall report the uncollected and delinquent obligation to the attorney general for further collection efforts.

OAG Procedures

Agencies are responsible for adhering to the provisions of the Office of the Attorney General’s (OAG) collection procedures found at 1 Texas Administrative Code, Title 1, Part 3, Chapter 59, Section 59.2: Collection Process: Uniform Guidelines and Referral of Delinquent Collections.

Texas Administrative Code

HB 2304, 74th Legislature, Regular Session, allows for the Texas Secretary of State to make the Texas Administrative Code (TAC) available for viewing through their website. See the TAC viewer. For information in the TAC on collections, see Collection Process: Uniform Guidelines and Referral of Delinquent Collections.