|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|
REASON FOR POLICY:
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).
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.
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.
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 cash, money order, certified or cashier’s check or wire transfer. 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.
The Office of the Bursar deposits all checks made payable to the University. Payroll overpayments and medical premiums are excluded as these are not deposited through KFS, but to Core-CT. Any returned checks are coded as adjustments to Core-CT. If the payer’s bank returns the check, Cash Operations then charges the amount of the returned check to the departmental account credited with the deposit. Cash Operations returns the check to the department with a letter informing the department that its departmental account has been charged for the returned check. Cash Operations sends the notification letter and a copy of the check to the department the day they receive the returned check.