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Business and Financial Policies and Procedures

10.4.2 Handle Returned Checks (Approved Units Only)

Policy Statement

A unit must first be a cash handling unit to be authorized to assume responsibility for returned check handling. This procedure does not apply if University Bursar handles the unit's returned checks.

Procedure

To handle checks returned to your unit:

University Bursar

Charges the originally credited C-FOAPAL for the amount of the check to the unit, and sends a notification memo (including the JV number and copy of the check) via Protected Email Attachment Application (PEAR) to the unit contact.

Your Unit

  1. Transfer the amount of the unredeemed check from the original C-FOAPAL to your unit's General Ledger NSF Clearing Fund C-FOAPAL.
  2. Comply with University of Illinois System policy and established internal procedures for charging debtor with $25 administrative fee or assuming $25 administrative fee to your department.
  3. Follow your unit's approved written internal procedures to recover the amount of the returned check and the $25 administrative service fee.
  4. Submit the replacement funds, when recovered, to University Bursar on the appropriate Report of Cash Sales, Money Received, or online Department Deposit form. Keep a copy for your unit records. Use the NSF Clearing Fund C-FOAPAL, and the C-FOAPAL you charged in Step #1 and #2.

If you are unsuccessful in recovering the replacement funds within six months of occurrence, you may submit a special collection request to University Bursar Student Loans and Collections (312) 413-0303 or pastdue@uillinois.edu. University Bursar may send it to an external collection agency for action and will not accept requests that are older than six months.

Forms Used in this Procedure

Department Deposit
Instructions for using the Online Department Deposit Form

Paper form:
    Report of Cash Sales (item #11485880) (available for purchase from the Urbana university iStores)

Related Policies and Procedures

10.4.1 Obtain Approval to Handle Returned Checks
10.2.1 Accept Checks as Payment

Additional Resources

University Bursar office locations and hours:
   Urbana-Champaign
   Chicago
   Springfield

Last Updated: July 7, 2020 | Approved: Senior Associate Vice President for Business and Finance | Effective: February 2008

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