UNIVERSITY OF PITTSBURGH POLICY 05-06-04
CATEGORY: FINANCIAL AFFAIRS
SECTION: Funds Management
SUBJECT: Processing and Endorsement of Checks
EFFECTIVE DATE: August 25, 1989
This policy establishes the requirements for the acceptance and endorsement of checks
that are used in payment for University goods and/or services.
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.
Procedure 05-06-04, Processing and Endorsement of Checks