Are Loans considered accounts receivable?
Yes. Loans are a form of accounts receivable. More importantly, a delinquency on a loan would likely be a liquidated and delinquent account where payments have become past due and the debt meets the liquidated account definition at paragraph .104(c)(5) or (6) of OAM 35.30.30.PO.
We just have NSF checks, are those liquidated and delinquent accounts?
This depends on your business practices. You will need to consider this issue from two perspectives:
- Are they liquidated - do they meet the Department of Justice Definition for liquidated? (See OAM 35.30.30) Do you create an account to try and collect them?
- Are they delinquent - were they paid on an account that is past due and is still past due? If so, they ARE delinquent.
- Were they paid for a license that you cancel when you learn the check is NSF and then make the applicant re-apply? Then there is no account receivable, and therefore no liquidated and delinquent account... the applicant must start all over with the licensing process.
What is the difference between an "account receivable" and a "liquidated and delinquent" account?
An account receivable is what your agency records when it provides goods or services for a fee where the payment for those goods or services is billed and a due date indicated on the invoice or billing statement.
For some agencies, they recognize an account receivable for fines, taxes, penalties, etc.
An account receivable becomes delinquent when it has not paid by the due date indicated on the invoice or billing statement.
An account becomes liquidated and delinquent when it is an undisputed legal liability of a fixed amount. (See OAM 35.30.30 for a full definition.)
Thus, while all liquidated and delinquent accounts are part of your accounts receivable, not all accounts receivable are liquidated and delinquent accounts.
Should the amount I show on the LFO Liquidated and Delinquent Report match the amount that is shown on the CAFR?
No. Generally they will be very different amounts. At the end of the fiscal year, your agency will supply the total of your accounts receivable for the CAFR. Liquidated and delinquent accounts will generally be a smaller subset of an agency's total accounts receivable, and may be a year or more delinquent.
Comments or suggestions about this webpage can be e-mailed to Gerold Floyd.
Questions about LFO Reporting should be directed to Dallas Weyand, LFO Deputy Fiscal Officer.
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