Financial Policies

FN08 Refunds

Policy Status: 

Active

Policy Steward: 

Office of the Corporate Controller

Contents:

PURPOSE:

To outline the University's Policy on all refunds, except tuition refunds and other refunds covered by specific University policies or procedures, with the following exceptions:

EXCEPTIONS:

Bursar Refunds:

  • Including refunds for tuition, room and board, general deposits, student account credit balances, etc.

Credit Card Refunds:

  • Refunds by cash are not permitted. Refunds by check are permitted only when a credit cannot be issued through the original credit card processing resources. Refer to Policy FN07 and specific procedures for information that applies specifically to credit card refunds.

Interdepartmental Refunds:

  • When merchandise or services are transacted between University departments via an Interdepartmental Charge/Credit (IDCC) or by direct billing, refunds must be settled via an IDCC or by a direct billing CREDIT (Journal Voucher).

Coin-Operated Machines:

  • Refer to procedure #CR2063 for information that applies specifically to coin-operated machine refunds.

PERMITTED REFUNDS:

A cash or check refund (dependent upon restrictions stated in this policy) may be issued if the original transaction of merchandise or services was paid by cash or check, if the request for a refund is made within a reasonable time of the original transaction, and if evidence of the original transaction is available (e.g. presentation of a sales receipt or availability of departmental sales records to confirm the transaction). If the original transaction of merchandise or service was paid by check, a 1 week waiting period (for the check to clear the bank) should be adhered to before a refund is processed.

RETAIL OPERATION:

If an area of the University exchanges merchandise or services with the public for payment on a regular basis more than one day a week and credits the revenues to an 08-XXX-XX Budget (or the operation is documented in a procedure published by Systems and Procedures), that activity shall be referred to for the purpose of this policy as a "retail operation." Refer to Policy FN14 for additional information.

A retail operation may issue a cash refund of $100 or less directly to a customer if a Cash Refund Receipt (form GF1.15a or suitable facsimile approved by Systems and Procedures) is completed, signed by the supervisor, and retained in accordance with the instructions in GURU.

All refunds (See specific "Exceptions" above) greater than $100 to be issued by retail operations are processed on a Refund Request (form GF1.5) in accordance with the instructions in GURU. A University check will be issued to the person named on the request form. A retail operation may use the Refund Request for all refunds if it so chooses.

NON-RETAIL OPERATION:

All other activities not under the above definition of a retail operation shall be considered as "non-retail."

A non-retail operation may issue a cash refund of $10 or less directly to a customer if a Cash Refund Receipt (form GF1.15b) is completed, signed by the supervisor, and retained in accordance with the instructions in GURU. If current revenues are not adequate, additional sources of cash for the refunds may be a Petty Cash Fund (if available) or the Cash Operating Fund.

All refunds (See specific "Exceptions" above) greater than $10 to be issued by non-retail operations must be processed on a Refund Request (form GF1.5) in accordance with the instructions in GURU. A University check will be issued to the person named on the request form. A non-retail operation may use the Refund Request for all refunds if it so chooses.

REFUNDS BY MAIL:

All refunds not issued in person must be processed via the Refund Request form.

OPTION OF NO REFUNDS:

Both a retail or a non-retail operation may adopt a local policy of no refunds. If an operation selects not to issue refunds, then a statement indicating the "no refund" policy must be clearly posted at the point of transaction, or appear on the sales receipt. Despite any no refund policy, merchandise must meet warranty of merchantability requirements. Defective merchandise must either be replaced or a refund must be issued.

CREDIT SLIP PROHIBITION:

It is prohibited to issue any kind of a credit slip (except gift certificates and refund certificates issued according to Procedure # CR2052, Accounting For Coupons and Gift Certificates) to an individual in lieu of a refund with the intent of having the individual redeem the credit slip at a later time.

FURTHER INFORMATION:

For questions, additional detail, or to request changes to this policy, please contact the Office of the Corporate Controller.

Effective Date: January 16, 1996 
Date Approved: January 16, 1996 
Date Published: January 31, 1996 (Editorial changes- September 25, 2013)

Most recent changes:

  • September 25, 2013 - Editorial changes to reflect current operations, and to reflect the addition of policy steward information, in the event that there are questions or requests for changes to the policy.

Revision History (and effective dates):

  • November 15, 2010 - Editorial changes to "Exceptions," Credit Card Refunds, to bring things into sync with FN07 verbiage on the handling of refunds for credit card sales.
  • June 14, 2006 - Revision History added.
  • June 8, 2005 - Editorial changes to eliminate "General Forms Usage Guide" references, and to add the correct links for the forms referenced in the policy.
  • January 16, 1996 - Removed reference to Bookstore and reorganized for GURU.
  • August 18, 1992 - Major revisions.
  • July 25, 1986 - Renumbered and relocated from Policy CS-8, dated 7-25-83 (Cash and Sales section is now the "Financial" section)
  • June 1, 1982 - Retyped without change from Commonwealth Campus Policy CS-9 (September, 1978) and University Park Policy CS-6 (September, 1966)