Florida Regulations 69I-71.004: Procedures for Adjustment, Settlement and Recovery of Accounts Receivable
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(1) Each governmental unit shall be responsible for securing full payment for all accounts receivable due to the governmental unit.
(2) Upon accounts receivable being reported to the Department, the Department will notify the governmental unit in writing and direct the governmental unit’s attorney to represent the governmental unit in enforcing settlement, subject to approval by the Department, or payment of the accounts receivable pursuant to Florida Statutes § 17.041(2)
(3) Approval by the Department is not required for the adjustment or settlement by a governmental unit for less than the full amount due for accounts receivable that have not been reported to the Department. Governmental units should establish proper controls and procedures for adjustment and settlement of accounts receivable for less than the full amounts due.
(4) Accounts receivable that have been reported to the Department may be adjusted or settled by a governmental unit for less than the full amount due only upon the prior approval of the Department when the request for approval contains information which shows that the governmental unit made a reasonable effort to collect the accounts receivable and that the expenditure of additional resources of the governmental unit to attempt to collect the accounts receivable would not be in its best interest.
(5) Requests to adjust or settle accounts receivable for less than the full amount due must be submitted to the Department in the form of a resolution stating that the proposed settlement is contingent upon the Department’s approval. The resolution or a copy thereof must be submitted to the Department of Financial Services, Bureau of Accounting, 200 East Gaines Street, Tallahassee, Florida 32399-0354.
(6) Each resolution shall include the following information:
(a) The nature of the transaction or events that created the accounts receivable;
(b) A brief statement explaining why the adjustment or settlement is proper and is in the best interest of the governmental unit under the circumstances, including an explanation of how the adjustment or settlement amount was derived; and
(c) A brief description of steps taken by the governmental unit to collect the accounts receivable, including actions taken by the governmental unit’s attorney. If no actions were taken by the attorney, an explanation must be provided.
(7) The Department will review the resolution and advise the governmental unit of its decision regarding the request.
Rulemaking Authority 17.29 FS. Law Implemented Florida Statutes § 17.041. History-New 2-23-95, Formerly 3A-71.004.
Terms Used In Florida Regulations 69I-71.004
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
(3) Approval by the Department is not required for the adjustment or settlement by a governmental unit for less than the full amount due for accounts receivable that have not been reported to the Department. Governmental units should establish proper controls and procedures for adjustment and settlement of accounts receivable for less than the full amounts due.
(4) Accounts receivable that have been reported to the Department may be adjusted or settled by a governmental unit for less than the full amount due only upon the prior approval of the Department when the request for approval contains information which shows that the governmental unit made a reasonable effort to collect the accounts receivable and that the expenditure of additional resources of the governmental unit to attempt to collect the accounts receivable would not be in its best interest.
(5) Requests to adjust or settle accounts receivable for less than the full amount due must be submitted to the Department in the form of a resolution stating that the proposed settlement is contingent upon the Department’s approval. The resolution or a copy thereof must be submitted to the Department of Financial Services, Bureau of Accounting, 200 East Gaines Street, Tallahassee, Florida 32399-0354.
(6) Each resolution shall include the following information:
(a) The nature of the transaction or events that created the accounts receivable;
(b) A brief statement explaining why the adjustment or settlement is proper and is in the best interest of the governmental unit under the circumstances, including an explanation of how the adjustment or settlement amount was derived; and
(c) A brief description of steps taken by the governmental unit to collect the accounts receivable, including actions taken by the governmental unit’s attorney. If no actions were taken by the attorney, an explanation must be provided.
(7) The Department will review the resolution and advise the governmental unit of its decision regarding the request.
Rulemaking Authority 17.29 FS. Law Implemented Florida Statutes § 17.041. History-New 2-23-95, Formerly 3A-71.004.