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Business and Financial Policies and Procedures

10.4.1 Obtain Approval to Handle Returned Checks

Policy Statement

University Bursar recovers and collects all returned checks received and deposited by cash handling units. If University Bursar exhausts all reasonable collection efforts (e.g., in-house, outside agency, state offset), and a returned check is uncollectible, it is included in University of Illinois System-level write-off approvals and protocol. Any unpaid portion of the original returned check amount will be charged back to the original unit at the time of write-off.

University Bursar may grant permission for some authorized cash handling units to assume responsibility for any/all returned check handling and related recovery activities. The decision to do this would apply to all cash handling units within a college, unit, or administrative level. The units will also assess and retain the $25 administrative service fee.

Regardless of what a unit decides, if a check is returned from the bank and University Bursar determines the unit did not process it according to the policies and procedures in 10.2.1 Accept Checks as Payment, it may be returned to the unit to recover funds.

Procedure

To obtain approval to handle returned checks:

  1. Develop written procedures and internal controls that are in compliance with the requirements in 10.2.1 Accept Checks as Payment and 10.1.2 Implement Internal Controls for Handling Cash and/or Checks, including your procedures for handling returned checks.
  2. Submit a copy of your procedures to University Bursar Cashier Operations requesting approval to handle returned checks. Submit a Returned Check Handling form to University Bursar.
  3. University Bursar reviews your procedures and submitted Returned Check Handling form. If approved, you will receive an email confirming approval for your unit to handle returned checks.

Forms Used in this Procedure

Returned Check Handling

Related Policies and Procedures

10.2.1 Accept Checks as Payment
10.1.2 Implement Internal Controls for Handling Cash and/or Checks
10.4.2 Handle Returned Checks (Approved Units Only)

Additional Resources

Unit Cash Handling Procedures - Sample Template
University Bursar office locations and hours:

   Urbana-Champaign
   Chicago
   Springfield

Last Updated: July 13, 2020 | Approved: Senior Associate Vice President for Business and Finance | Effective: February 2008

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