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Bad Debt & Write Off Policy
Name of Policy
Bad Debt & Write Off Policy
Policy Number
Financial Affairs
Original Policy Date
Last Revised Date
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  • This policy is to outline the procedure for providing for bad debts (the making of a bad debt provision) and the writing off of bad debts within the University.
  • A bad debt is an outstanding sum of money owed to the University that has not been paid, despite repeated efforts to collect the debt. 


Procedure :

Student Fees Debt

  • After two years of no-show as outstanding balance of PMU students, the Financial Affairs Department will notify the Legal Services Department in order to collect all the outstanding debts.
  • Legal Services has the authority to waive up to 5,000 SR out of the outstanding balance of each case.
  • In case of failure to collect the outstanding debts, the Legal Department has to submit a report to PMU Management in order to decide either to waive the debt or to proceed with further legal action.

Sundry Debtors

  • At the end of each financial year a list of all outstanding sundry debtor accounts are obtained from the computer system.
  • The list is scrutinised to identify those accounts, which are unlikely to be recovered. Factors such as the economic cost of pursuing small debts, the evidence to support the debt and the likelihood of recovery are taking into account in arriving at the provision.
  • The provision is the total of all the accounts were it is unlikely that we will recover the debt.


  • When it is established that the debt is irrecoverable or uneconomic to pursue further the debt will be recommended for write off.
  • The Legal Services Dept together with the Director of Financial Affairs and PMU Rector will approve write off of Bad Debts.