Section: GENERAL ACCOUNTING
|Section 3000 Policies|
Policy Number: 3102.06
Policy Title: Returned Items
Policy Effective Date: April 1, 2011
Last Revision Date: May 6, 2011
(see revision history)
It is the policy of the CSU that all returned items be processed and resolved in a controlled and timely manner. Each campus must prepare written procedures to implement this policy.
Cash Equivalents (Money Orders, Travelers Checks, Cashier Checks and Certified Checks) and Checks:
- Physical security and accountability for returned cash equivalents and checks must be maintained during the processing of the returned item.
- A non-cashiering unit is to provide processing of returned cash equivalents and checks.
- Cash equivalents and checks that are deemed to be uncollectible are to be returned by the depository bank to the designated non-cashiering unit.
- A returned cash equivalent or check must be redeemed by guaranteed funds. For the purpose of this policy, guaranteed funds are any form of payment where a surety guarantees performance on the obligation.
- The person maintaining the inventory of returned cash equivalents and checks must not handle the cash received to redeem the returned items.
ACH (Automated Clearing House/ E-Checks):
- ACH returned to the campus must be controlled during the processing of the returned item.
- A non-cashiering unit is to provide processing of returned ACH items.
- ACH transactions that are deemed to be uncollectible are to be returned by the depository bank to the designated non-cashiering unit.
- The person approving the request to write-off uncollectible ACH debits must not maintain the inventory of returned ACH debits.
- A returned ACH debit must be redeemed by guaranteed funds.
- Campuses shall establish controls to prevent and detect alterations to electronic ACH data.
Credit/Debit Card Charge-backs:
- Credit/Debit card charge-backs are to be returned by the Merchant Card processor to the designated non-cashiering unit.
- Cashiers must not be involved in the returned Credit/Debit Card chargeback, although they can be involved in defending the chargeback.
- A returned Credit/Debit Card chargeback must be redeemed by guaranteed funds.
- The personnel processing returned Credit/Debit Card charge-backs must not handle the cash received to redeem returned Credit/Debit Card charge-backs.
- The person who approves the request for write-off of uncollectible Credit/Debit Card charge-backs must not maintain the inventory of returned Credit/Debit Card charge-backs.
- Counterfeit currency returned by the bank are recorded as a cash shortage and referred to campus university police department.
Benjamin F. Quillian
Executive Vice-Chancellor/Chief Financial Officer
Approved: February 4, 2011
APPLICABILITY AND AREAS OF RESPONSIBILITY
- January 31, 2014 (Annual Review conducted with no change to policy.)
- April 1, 2011 (Initial Issuance Date)
RESOURCES AND REFERENCE MATERIALS
Sound Business Practices:
Laws, State Codes, Regulations and Mandates:
COGNIZANT OFFICE(S)CO Manager:
Ms. Jean L. Gill
CSU Office of the Chancellor
Ms. Gay Kvilhaug
Ms. Nancy Suarez
Director, Student Financial Services
Ms. Gina Curry
Director & University Bursar
Ms. Cora Wong
Director, Student Financial Operations
Ms. Caryl Vickers-Harper
Assistant Director & University Cashier
Student Accounts Receivable (SAR)