UNIVERSITY OF PITTSBURGH POLICY 05-06-04

CATEGORY:              FINANCIAL AFFAIRS
SECTION:                  Funds Management

SUBJECT:                 Processing and Endorsement of Checks

EFFECTIVE DATE:   August 25, 1989

PAGE(S):                   2

I.    SCOPE

      This policy establishes the requirements for the acceptance and endorsement of checks

      that are used in payment for University goods and/or services.

II.   POLICY

      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

      University Endorsement of Checks Accepted for Payment

      In compliance with the Expedited Funds Availability Act, the Federal Reserve System

      has initiated regulations that strictly limits the placement of endorsements on the reverse

      side of the check.  The check endorsement field is limited to a maximum of 1-1/2 inches.

      Checks Processed for Deposit Through the University Cashier's Office -- The Cashier's

      Office endorsement stamp requires 1-1/4 inches of the total field which allows only 1/4

      inch for placement of the unit endorsement.  University auditors require that all checks

      received in payment should be endorsed as soon as possible with a restrictive

      endorsement For Deposit Only stamp, in the 1/4 inch endorsement field.

      University checks submitted to the bank for payment that are improperly endorsed and

      exceed the maximum allowable endorsement field of 1-1/2 inches may be refused for

      deposit by the bank.  The bank may require that the University assume any liability for

      which they may become obligated because of their inability to process checks that do not

      comply with the Federal Reserve System endorsement regulations.

      Third party checks will be accepted only if they are made payable to the University of

      Pittsburgh, or other payees as approved and authorized by the Comptroller.

      Checks Processed for Direct Deposit in the Bank -- Checks that are received by University

      units that are authorized by the Office of the Comptroller to deposit receipts directly in the

      bank may use the maximum endorsement field of 1-1/2 inches.

III.  REFERENCE

      Procedure 05-06-04, Processing and Endorsement of Checks