Accounts Receivable Collections Administrative Rule (Page 11 of 13) in pdf

.02

Chapter 2 of the rules of the State Collection Agency Board, and for this purpose, special

collection counsel shall be deemed to be a “debt collector” and a “licensee”,

.03

Any requirement of State or Federal law which is applicable to or has been incorporated in any

agreement which created the debt to be collected, and

.04

Any assignment or transfer of any debt under these rules may be revoked at any time by Central

Collection Services without cause.

In addition, any contract for the collection of Participating Entity debts shall be awarded according to the

provisions of the State Procurement Code, Articles 101 to 112 of Title 23, C.R.S. After contract expiration,

Private Counsel or Private Collection Agencies, by contract, may be allowed to receive ongoing payments

on debts for which payments have been previously received by the Private Counsel or Private Collection

Agency, unless or until the debt is paid in full or recalled by Central Collection Services. Such collections

after expiration of the contract shall be remitted to the State and the Private Counsel or Private Collection

Agency shall be compensated as was previously required prior to the expiration of the contract.

4.00

WRITE-OFF, RELEASE, AND COMPROMISE

Every write-off, release, or compromise of an account receivable must have as its initial step a recom-

mendation for and approval of write-off, release, or compromise by the Controller or highest financial

officer of the Claimant State Entity.

4.10

Write-off of Accounts Receivable

Write-off of accounts receivable are defined in Section 1.05.18 of this Rule and affects only financial

reporting. The criteria for writing-off of accounts receivable are:

.01

Debts of $50 or less may be written off after the Claimant State Entity has completed its 30 day

collection effort and after Central Collection Services has completed one cycle of tax offset

procedures without results. These accounts may be written off without approval from Central

Collection Service or consent of the State Controller. The procedure for writing off debts of $50 or

less is to notify Central Collection Services and the Field Accounting Services Team in the Office

of the State Controller in writing, at least annually at fiscal year-end close or more frequently at

the Claimant State Entity’s discretion, of the total amount and number of accounts written off

under this procedure. A detailed listing of each account and dollar amount shall be maintained by

the Claimant State Entity for audit purposes.

.02

Accounts greater than $50 shall only be written off when they have been determined by Central

Collection Services to be not collectible, and with the approval of the State Controller or delegate.

A Claimant State Entity’s request sent to Central Collections for such approval shall include:

The number of accounts to be written off;

The total dollar amount of the accounts;

For each account a listing of the debtor, the amount, and a brief statement of why the

Claimant State Entity believes the debt is not collectible; and

A statement by the Claimant State Entity’s Controller that the accounts are deemed not

material to the Claimant State Entity’s financial records or financial statements and have

been approved for write-off by the Claimant State Entity Controller.

Accounts Receivable Collections Administrative Rule Page 11

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