Policy Statement

The General Assembly, in Tennessee Code Annotated Section 4-4-120, authorized the Commissioner of Finance and Administration and the Comptroller of the Treasury to establish procedures for the write-off of uncollectible accounts receivable by all state agencies, departments, and institutions which charge the public, create a debt to the state, and maintain accounts receivable. These rules, which have been promulgated by the Department of Finance and Administration and concurred in by the Comptroller, set forth the write-off procedures. These rules recognize that certain amounts of bad debt will occur when accounts receivable are established. Furthermore, in the case of certain accounts receivable it is in the best interests of the State to write off such accounts receivable rather than pursue collection efforts.