Creighton University

Accounting Procedures

PROCEDURE TITLE:

Returned (NSF) Checks from the Bank

PROCEDURE NUMBER:

GAPR 04

RELATED POLICY STATEMENT(S):

None

DATE ISSUED: 

July 1, 1993

DATE REVISED:


OVERVIEW

 

When a check that has been received and deposited by the University is returned by the bank because the issuer has insufficient funds in their account, specific steps must be taken to ensure that the "bounced" check is properly accounted for and that follow-up collection efforts are made with the original check issuer.

REQUIRED FORM(S)

 

None

PROCESSING STEPS

 

By arrangement with the banks, insufficient funds (NSF) checks are typically returned by the bank to the attention of the Controller. The Controller's Office will then contact the department originally depositing the check to obtain accounting distributions to be charged for the returned check. After the appropriate entries have been made by the Controller's Office, the NSF check will be returned to the department, since they have the primary responsibility for following up and collecting the monies due to the University. When the monies are collected, they should be deposited in accordance with standard procedures discussed elsewhere in this manual.