Returned Check Procedures
Any checks returned by Ë¿¹ÏÊÓƵ University’s banks as uncollected are sent to Depository Services. Reasons for a returned check may include; non-sufficient funds (NSF), account closed, payor’s signature missing, refer to maker, and post-dated or stale-dated checks.
Depository Services prepares a deposit adjustment, debiting the originating department’s account for the amount of the check. A service fee (currently $30.00 per check) is also assessed.
The adjusting entry and copy of the returned check is emailed to the originating department for collection; physical copies of the check are not available. It is the originating department’s responsibility to notify the check writer and use due diligence to collect the amount of the check and the service charge from the payor. Generally, restitution should be in the form of currency, money order, cashier’s check, or certified check. All chargebacks are made to the chartstring where the check was originally deposited and account code 40704.
When restitution is obtained, the department should prepare a Cash Receipt Ticket (CRT) crediting the same account that was debited by Depository Services.