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CRM 204 - Check Processing

This subject details only those standards relating to checks presented in payment for goods or services or as a gift to the University. See CRM 702 - Check Cashing for standards relating to checks accepted for cashing.

Accepting Checks:

Subject to limitations or exceptions stated below, checks are accepted by the University in payment for goods or services provided.

Foreign Checks - Foreign checks (checks written on non-U.S. banks or for amounts other than U.S. dollar values) are accepted on account only, subject to an amount in U.S. dollars that can be collected in exchange. Should the amount collected be in excess of the amount owed then a refund will be given to the payor. If the amount collected is less than the amount owed, the payor will be billed for the difference (CRM 304 - Foreign Funds - Exchange and Deposit).

Checks Accepted for More Than Amount of Sale- Personal and company checks are accepted for the amount of sale only.

Checks Accepted for More Than Amount of Sale- Subject to authorization from a cashier supervisor and subject to the limits on amounts as determined by Campus Business Services, these checks are acceptable for more than the amount of sale:

  • Cashiers Checks
  • Certified Checks
  • Money Orders
  • Travelers Checks
  • University Checks
  • Government Checks

Conditions for Acceptance:

To be accepted, each check presented must:

  • Be payable to the University of Missouri. This includes a check payable to an individual who must restrictively endorse in payable to the University of Missouri.
  • Be current dated - not post dated or not stale dated over six months or shorter period if noted on the face of the check.
  • Be properly signed or endorsed by the presenter.
  • Be in agreement as to numeric and written amounts. (See Discrepancy Between Numeric and Written Amounts below.)
  • Be legibly written in ink or typed.
  • Be written or presented by a person not on the bad check list.
  • Have Federal Reserve routing codes printed as part of the MICR encoding at the bottom of the check. The routing codes printed in the upper right hand corner are no longer required by the Federal Reserve and are not always printed on the checks. The routing codes will be separated from the other numbers in the MICR line by a small, centered rectangle followed by two small squares, one above the other. The location within the MICR line may vary, but the symbol described above will precede and follow the routing code.
  • Not be altered or grossly mutilated.
  • Not have any unreasonable restrictions placed on the face which excessively limit its application.
  • Contain sufficient information to permit tracing the presenter (e.g. address, telephone number, etc.).

Verifying Presenter Identification:

Identification Required - Some form of identification, preferably one having a picture, must be checked to verify the identification of each presenter of a check. This is done when cashing a check or when the check is for more than the amount of sale and change is to be given. Note - The Cashier verifying the identification must initial the check.

Restrictive Endorsement and other Information Required:

On All Checks Accepted- All checks accepted by the University must be restrictively endorsed immediately upon receipt:

FOR DEPOSIT ONLY

TO THE CREDIT OF

THE CURATORS OF THE

UNIVERSITY OF MISSOURI

BANK ACCOUNT #

Account Name & Number for department

that delivered check

The University account name and number can be hand written on the back of the check, while the rest of the restrictive endorsement should be stamped or typed on the check. All the information that is included must stay within the 1.5 inches provided for first endorsement on the back of the check.

Note - The department accepting the check must be designated by name and the Cashier by assigned number or other suitable code such as an initial.

On Checks Accepted for More Than Amount of Sale - This information must be entered before the restrictive endorsement on all checks accepted for more that the amount of sale:

For Cash $Amount of cash given*

*Initials of person receiving cash

Discrepancy Between Numeric and Written Amounts:

When the numeric and written amounts on a check do not agree, a new check should be requested. If a corrected check cannot be obtained, steps must be taken to insure collection of the correct amount:

If Written Amount Is Correct - The correct amount is entered above the numeric amount and circled.

If Numeric Amount Is Correct - The correct amount must be guaranteed by entering the following on the front of the check:

University of Missouri guarantees the
amount of this check to be $(Amount)
(Signature)
Manager or Authorized Representative


Checks Jointly Payable to University and General Contractor:

These checks are to be processed by Campus Business Services.

Canceling a University Endorsement:

Only those employees authorized by Campus Business Services (Office of the Treasurer for UM System) may cancel a University endorsement.

Method of Cancellation -

  • A line is drawn through the endorsement and the words "Endorsement Canceled" are typed across the erroneous endorsement.
  • The authorized individual canceling the endorsement signs and dates the cancellation.

Special Endorsements:

For Scholarship and Miscellaneous Loan Program Checks Jointly Payable to Student and University -This endorsement is used when the student does not owe money to the University and is entitled to the full amount:

PAY TO THE ORDER OF
(Student's Name)
THE CURATORS OF THE
UNIVERSITY OF MISSOURI
(Authorized Representative's Signature)

 

Authority to Use Special Endorsements - Only those employees authorized by the Office of the Treasurer as recommended by Campus Business Services may use these special endorsements.

Revised: 04-04-06