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 (not coin or currency) and Checks:
- Physical security and accountability for returned cash equivalents must be maintained during the processing of the returned item.
- A non-cashiering unit is to provide processing of returned check items.
- Cash equivalents that are deemed to be uncollectible are to be returned by the depository bank to the designated non-cashiering unit.
- A returned cash equivalent 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. Examples include cashier’s checks or money orders.
- The person maintaining the inventory of returned cash equivalents 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
- April 1, 2011 (Initial Issuance Date)
RESOURCES AND REFERENCE MATERIALS
Sound Business Practices:
Laws, State Codes, Regulations and Mandates:
COGNIZANT OFFICE(S)CO Manager:
Mr. Robert Eaton
Senior Director, Financing and Treasury
CSU Office of the Chancellor
Ms. Gay Kvilhaug
Ms. Maribeth Bradberry
Ms. Nancy Suarez
Director, Student Financial Services
Ms. Jan Burnham
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)