UNIVERSITY OF PITTSBURGH PROCEDURE 05-06-04
CATEGORY: FINANCIAL AFFAIRS
SECTION: Funds Management
SUBJECT: Processing and Endorsement of Checks
EFFECTIVE DATE: August 25, 1989
To establish the procedure for standardization of the endorsement of checks made
payable to the University of Pittsburgh, or others as authorized by the Comptroller, for
payment of goods and/or services. This procedure implements the Expedited Funds
Availability Act, for which the Federal Reserve System has established regulations that
restrict the placement of the endorsement of checks.
This procedure is applicable for the following:
- Checks made payable to the University of Pittsburgh, or others as authorized by the
Comptroller, in payment for goods and/or services
- To all University units that accept such checks for payment and endorse them for
deposit in the Cashier's Office or directly in the bank
Restrictive Endorsement: The method of affixing an endorsement to a check or money
order using a rubber stamp to limit its use to deposit in a University bank account. The
endorsement must include the words FOR DEPOSIT ONLY, and the name of the
Check Payment - Pay To The Order of
All checks accepted in payment for goods and/or services must be made payable to the
University of Pittsburgh, or other payees as approved and authorized by the Comptroller.
The University of Pittsburgh must be the principal payee.
Example 1: Make checks payable to:
University of Pittsburgh
Western Psychiatric Institute and Clinic; or
University of Pittsburgh WPIC
Example 2: Make checks payable to:
University of Pittsburgh
Pittsburgh Cancer Institute; or
University of Pittsburgh PCI
Federal Reserve System Endorsement
The Expedited Funds Availability Act requires the standardization of endorsement of
checks received by the University in payment for goods and/or services. Failure to
follow the requirements of the regulations that the Federal Reserve System has
established for check endorsement may result in the bank refusing to accept for
deposit checks that do not meet the Federal Reserve System standards.
University Auditor's Endorsement Requirements
University Auditors require that the University unit Restrictive Endorsement stamp be
put as soon as possible on any checks received for payment of goods and/or services.
Third Party Checks
All checks received by any University unit must be made payable to: University of
Pittsburgh. Checks made to any other payee must be approved and authorized by the
Comptroller. Third party checks should be avoided, and may be accepted only if they
are made payable to the University, or other authorized payee.
The total field allowance for placement of endorsements permitted by the Expedited
Funds Availability Act is 1-1/2 inches. Refer to Exhibit A, Figure B, for illustration of the
Endorsements by Units Authorized for Direct Deposit
University units that are authorized by the Comptroller to deposit receipts directly in the
bank may use the entire endorsement field of 1-1/2 inches for the restrictive
endorsement. Refer to Exhibit A, Figure B.
Endorsements by Units Processing Deposit of Receipts Through the Cashier's Office
The University Cashier's Office endorsement requires 1-1/4 inches of the 1-1/2 inch
endorsement field, leaving a balance of 1/4 inch for the unit endorsement stamp. The
unit restrictive endorsement stamp is limited to a maximum of 1/4 inch. For the proper
placement of the unit restrictive endorsement stamp refer to Exhibit A, Figure B. The
unit campus address and any other identifying information such as account numbers
should be placed on the front of the check in the suggested locations as indicated in
Exhibit A, Figure A.
Refusal By The Bank To Accept Checks
Checks sent to the bank for deposit that do not meet the requirements established by
the Federal Reserve System for endorsement of checks, may result in the bank's
refusal to accept such checks for deposit, or that the University assume any liability for
which the bank may become liable because of its inability to process checks that do not
comply with the endorsement requirements.
Exhibit A - Endorsement and Information Fields
Policy 05-06-04, Processing and Endorsement of Checks