CPSI 2017 Annual Report

89 SCHEDULE II COMPUTER PROGRAMS AND SYSTEMS, INC. VALUATION AND QUALIFYING ACCOUNTS (In thousands) Description Balance at beginning of period Additions charged to cost and expenses (1) Deductions (2) Balance at end of period Allowance for doubtful accounts deducted from accounts receivable in the balance sheet . . . . . . . . . . . . . . . . . . . 2015 $ 1,253 $ 674 $ (711) $ 1,216 2016 $ 1,216 $ 497 $ 657 $ 2,370 2017 $ 2,370 $ 1,598 $ (1,314) $ 2,654 (1) Adjustments to allowance for change in estimates. (2) Uncollectible accounts written off, net of recoveries. Description Balance at beginning of period Additions charged to cost and expenses (1) Deductions (2) Balance at end of period Allowance for credit losses deducted from financing receivables in the balance sheet . . . . . . . . . . . . . . . . . . . . . . 2015 $ 1,001 $ 236 $ (583) $ 654 2016 $ 654 $ 1,762 $ (218) $ 2,198 2017 $ 2,198 $ 1,823 $ (777) $ 3,244 (1) Adjustments to allowance for change in estimates. (2) Uncollectible accounts written off, net of recoveries. ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None. ITEM 9A. CONTROLS AND PROCEDURES. Evaluation of Disclosure Controls and Procedures We maintain disclosure controls and procedures that are designed to provide reasonable assurance that the information required to be disclosed by us in reports that we file or submit under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is recorded, processed, summarized and reported within the time periods specified in the rules and forms promulgated by the Securities and Exchange Commission, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Because of the inherent limitations to the effectiveness of any system of disclosure controls and procedures, no evaluation of disclosure controls and procedures can provide absolute assurance that all control issues and instances of fraud, if any, with a company have been prevented or detected on a timely basis. Even disclosure controls and procedures determined to be effective can only provide reasonable assurance that their objectives are achieved. As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e)) pursuant to Rule 13a-15 of the Exchange Act. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective at the reasonable assurance level.