Financial Administration Manual

635 - Write-off of Debts or Obligations

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Effective: April 1, 2016
Section: Revenue Cycle
Administrator: Office of the Comptroller General
Applicability: GNWT Departments and Public Agencies

POLICY             

Debts and obligations owed to the GNWT or a Public Agency that do not exceed the threshold stated in the Financial Administration Act (FAA) may be written off by the Financial Management Board (FMB), by a public officer delegated by the FMB, or by the governing body of a Public Agency, in whole or in part, once all reasonable and appropriate action has been taken to collect.

PURPOSE

This policy establishes that the assessment and need for a write-off of debt is to occur after all reasonable and appropriate collection action has been taken.

 SCOPE

This policy applies to the write-off of debts or obligations owed to the GNWT or a Public Agency. The write-off of a debt or obligation does not relieve the debtor of the obligation to repay the debt, nor limit the GNWT or a Public Agency’s rights to collect on the debt.

RESPONSIBILITIES

Deputy Head of a Public Agency

Subject to regulations or delegation authority, may write-off, in whole or in part, a debt or obligation owed to a Public Agency; ensure that all overdue amounts receivable are reviewed to identify potentially uncollectible amounts and determine the need for any write-down or write-off.

Governing Body of a Public Agency

May write-off, in whole or in part, a debt or obligation owed to the Public Agency if it cannot be collected or realized; report amounts written off in the Public Agency’s annual report for the fiscal year.

Comptroller General

May recommend that all uncollectable debts be considered for write-off by GNWT Departments; maintain a record of all amounts written-off in a fiscal year of the GNWT; may approve Interpretation Bulletins associated with this policy.

Deputy Minister

Ensure that all overdue amounts receivable are reviewed to identify potentially uncollectable amounts and determine the need for any write down or write-off; May direct that an asset be written off that does not exceed a value specified in the FAA or the Delegation of Authority Regulations.

Minister

May direct that a debt or obligation owed to the GNWT be written off that does not exceed a value specified in the FAA or the Delegation of Authority Regulations

Financial Management Board

May write-off, in whole or in part, a debt or obligation owed to the GNWT if it cannot be collected or realized; may delegate the authority to a public officer to write-off a debt or obligation owing to the GNWT where the amount to be written off does not exceed $50,000 or value specified in the Delegation of Authority Regulations; may issue a directive respecting the financial management or financial administration of a Public Agency.

AUTHORITIES and REFERENCES

  • Financial Administration Act  (FAA)
    • s. 10 – Board directives
    • s. 60 – Write-off of Assets, Debts and Obligations
    • s. 61 – Effect of Write-off
    • s. 64 – Comptroller General record

INTERPRETATION BULLETINS