Harvard University Policy:

Each school should establish a reserve for student receivable bad debts.

5.1 Establishment of Reserves for Student Receivables Bad Debt

As input to Tub's budgeting process, SRO performs an analysis of aged, poor or non-performing accounts. Based on a formula suggested by the Internal Audit department, SRO recommends a reserve for each Tub to cover bad debt. Tubs use these figures in developing annual budgets and create reserves accordingly.

Schools with advice from SRO