QUICK REFERENCE GUIDELINES FOR “RETURNED CHECK(S) PROCESSING”
NSF Check(s):
Returned & Collected In The Same Month
Processing Procedures:
Look for returned checks and/or returned check payment/recovery fee on bank statement(s)
Do not “receipt” recovery fee
Post $3.50 recovery fee in SchoolFunds Online (SFO):
Journal Entry- Bank Interest/Other Credits (use general funds acct 706.000 as ‘post to’ account)
Click ‘Preview Button/Review Entry’
If Preview is correct, click ‘Post and Generate Final Proof Button’
Maintain ‘Journal Entry Proof Sheet’ with documentation files
No further action is required
Returned & Collected In A Different Month
Look for returned checks and/or returned check payments on bank statement(s).
Check collection service’s website for NSF maker’s name, check number, and check amount**
When NSF check funds have not been recovered by the collection service, do not use returned check(s) as a
“RECONCILING ITEM(S)”. Enter check as journal entry in SFO (please refer to pg. 12, item #2 of your School
Accounting Procedures Manual)
Print ‘Returned Check Not Repaid List’ and include as part of Month End Report documents
When NSF check funds have been recovered by collection service, the bank statement should reflect the automatic
deposit (Please refer to pg. 12, item #3 of your School Accounting Procedures Manual for instructions on posting
NSF repayments).
Do not “receipt” recovery fee.
Instead, post $3.50 recovery fee in SFO (please refer to section 1 above)
Returned by NSF Collection Service* as
Uncollectable (“Closed” or “No” Account)
Initiate following step if and/or when collection service efforts have failed and check(s) has been returned to the
Send the check issuer a“10- day demand letter,” requesting repayment by cash or money order, signed by principal,
sent certified return mail (please see sample letter on pg. 11 of your School Accounting Procedures Manual).
A $25.00 returned check fee must be charged and collected by school, with fee receipted in SFO and deposited with
the daily deposit.
Request(s) For Write-Off(s)
Initiate after all collections/recovery efforts have failed.
Complete a Request for Writing Off Returned Check Form (FIN-F031) signed by principal and submitted, along
with all appropriate support documentation, to the Chief Financial Officer for approval.
All checks still appearing on your Returned Checks Not Repaid List, two years or more outstanding at the start of
each fiscal year, July 1, 2XXX should be submitted for write off. However, recovery efforts should continue for
checks for students still enrolled at your school regardless of check age or amount.
Returned check(s) for student(s) no longer enrolled at your school must be submitted for write-off, regardless of
amount.
Note: Update ‘Returned Check Not Repaid List’ by removing “write-offs” from check list.
*Collection Service, Bottom Line: Contact – Monica Stanley
Phone: 1-877-891-5422
**Website: www.nsfdeposit.com/login.html