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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

General Accounting

Accounting for Receivables Deemed Uncollectable

In determining if a receivable is deemed uncollectable and may be written off an agency’s financial accounting records, first follow the OAG’s collection procedures referenced in Disposition of Uncollectable Accounts in an attempt to collect any past due accounts owed to the agency. Only after your agency and the OAG have followed these procedures without success may a debt be classified as uncollectable and be written off on the agency’s financial accounting records. Per Accounting for Uncollectable Accounts (APS 027) (FPP C.001), a debt is considered uncollectable if it meets any of the following criteria:

  • Agency management determines that the debt is uncollectable and the debt does not meet the agency tolerances approved by the OAG established pursuant to 1 TAC, Section 59.2(b)(8). If an obligation is below the OAG approved tolerance level, it is not referred to the OAG for collection.
  • The OAG determines that further measures to collect the debt are inappropriate.
  • The OAG determines the debt to be uncollectable.

The Comptroller requires the reasons for writing off an account and compliance with the agency’s write-off policy to be adequately documented and such documentation readily available for audit.

Nothing in Accounting for Uncollectable Accounts (APS 027) (FPP C.001) shall be construed to exempt or exclude an agency in any way from the debt collection procedures established by the OAG.

Glenn Hegar
Texas Comptroller of Public Accounts
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