When the District or school receives a check that, when deposited, is returned marked "insufficient funds", the District may allow such checks to be redeposited. If the checks are returned for insufficient funds a second time, however, it should be considered worthless and steps must be taken to recover the funds. In addition, an adjusting entry must be posted to the transaction journal to reduce the amount of funds recorded as having been received. The District or school will provide an opportunity for the payer to make proper payment or to arrange for a satisfactory payment schedule. If payment is not received within thirty (30) days, the payment schedule is not adhered to, or the monies do not appear to be collectible, the Board of Education authorizes the principal or Treasurer to take appropriate action against the student and/or the parents and/or the maker of the check, if other than the student or parents. This includes not only recovering the face value of the check but all bank fees, court costs or other charges incurred by the school as a result of the check.

When the funds are recovered, a receipt is to issued for the total amount recovered and the total is to be deposited in the appropriate depository account.

If any checks are determined to be uncollectible, the District or school is to file an annual report with the chief school business official showing the names of the individuals from whom the checks were received and the total amount that has not been collected. A file should be maintained for each individual to show the actions taken.

WV State Board of Education Policy 1224.1