| Title: | Returned Check Policy |
|---|---|
| Policy Owner: | Office of the Bursar |
| Applies to: | Faculty and Staff |
| Campus Applicability: | UConn Storrs and Regional Campuses |
| Effective Date: | August 19, 2014 |
| For More Information, Contact | Office of the Bursar |
| Contact Information: | (860) 486-4830 |
| Official Website: | http://bursar.uconn.edu/ |
PURPOSE
The purpose of this policy is to ensure compliance with state guidelines on processing and accounting for returned checks. (State of CT Accounting Manual, Receipts, Section 4.1).
APPLIES TO
This policy applies to all departments receiving checks on behalf of the University as well as all customers and students paying the University for goods and/or services.
POLICY STATEMENT
Checks deposited by the University and then returned by the bank for insufficient funds or any other reason are the responsibility of the depositing department to recover any money still owed to the University. The department or student is charged back, including any bank fees as applicable.
ENFORCEMENT
The Office of the Bursar charges customers/students a $25 fee for a check returned by the bank for any reason. The Office of the Bursar will notify students with multiple returned checks that check payments will no longer be accepted and all future payments must be made in the form of money order, certified or cashier’s check or Western Union wire payment. For non-student returned checks, it is the department’s responsibility to pursue collection of the funds and fees with the customer, and the individual department has the discretion to accept future checks.
PROCEDURES/FORMS
The Office of the Bursar Cash Operations unit is notified by the bank if a check is returned to the University. Cash Operations sends the notification to the appropriate depositing department. It is the department’s responsibility to then submit the appropriate entry in the general ledger system to reflect the returned payment. Cash Operations approves the entry based on the debit to the University’s bank account.
POLICY HISTORY
Revisions: Reviewed; Procedures updated, January 24, 2022