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Business and Financial Policies and Procedures

10.4.1 Obtain Approval to Handle Returned Checks

Policy Statement

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

USFSCO 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 $30 administrative service fee.

Regardless of what a unit decides, if a check is returned from the bank and USFSCO 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 for recovery.

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.
  2. Develop written procedures for handling returned checks.
  3. Submit a Returned Check Handling form to USFSCO Business Operations. Attach copies of your procedures which will be kept by USFSCO.
  4. USFSCO reviews your procedures. If they approve, USFSCO sends an email confirming your unit's decision 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

USFSCO office locations and hours:
   Urbana-Champaign
   Chicago
   Springfield

Last Updated: January 15, 2019 | Approved: Senior Associate Vice President for Business and Finance | Effective: February 2008

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