University of Virginia Library

The Committee on Bad Debts composed of Messrs. Bryant, Kaulback and the undersigned has
reviewed the loans set forth on Schedule 1, totalling $64,790.93 and recommends that they
be charged off

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For the information of the Board, there is no record that such loan notes have ever been
previously charged off. Some of the loans date back to the period immediately after World
War I. About three years ago an intensive effort was made to collect all of these old
loan notes and some were paid

The Committee on Bad Debts recommends that the student accounts set forth on Schedule 2,
totalling $30,850.65, be charged off. These accounts are of two types. The vast majority
are balances for Virginia veterans which had to be absorbed by the University under an
agreement with the Veterans Administration permitting the University to charge out-of-state
tuition for all Virginia veterans. The Veterans Administration authorized this provided
no Virginia veteran was penalized thereby. The State auditors feel that the Board of
Visitors should authorize these accounts to be charged off, even though they are not
actually an obligation of the student to the University

The balance of the accounts represent accounts running back as far as 1930. An intensive
effort has likewise been made to collect all of these accounts.

Once the Committee disposes of the sizeable backlog of these accounts, the amount to
be charged off each year will be quite small. For example, during the current semester
out of total charges of nearly $1,000,000, only $500 is now outstanding