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CSU POLICY

Section 3000 Policies

Policy Number:  3102.06

Policy Title: Returned Items

Policy Effective Date: April 1, 2011

Last Revision Date:  
(see revision history)

POLICY OBJECTIVE

It is the policy of the CSU that each campus must establish written procedure to process and resolve all returned items in a controlled and timely manner.

POLICY STATEMENT

Cash Equivalents (non-coin & currency) and Checks

• Cash equivalents returned to the campus must be controlled 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 returned Cash Equivalents.
• Physical security and accountability for returned cash equivalents must be maintained. 

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 chargebacks 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 chargebacks must not handle the cash received to redeem returned Credit/Debit Card chargebacks.
• The person who approves the request for write-off of uncollectible Credit/Debit Card chargebacks must not maintain the inventory of returned Credit/Debit Card chargebacks.

Counterfeit Currency

• Counterfeit currency returned by the bank are recorded as a cash shortage and referred to campus university police department. 

APPLICABILITY AND AREAS OF RESPONSIBILITY

 

REVISION HISTORY

 

RESOURCES AND REFERENCE MATERIALS

Useful Guidelines:

 

Related Principles:

 

Sound Business Practices:

 

Laws, State Codes, Regulations and Mandates: