Service Charge on Returned Checks: Administrative Memo A-4

ADMINISTRATIVE MEMORANDUM

COUNTY OF SAN MATEO

NUMBER: A-4

SUBJECT: Service Charge on Returned Checks

RESPONSIBLE DEPARTMENT: Controller

DATE: August 2, 1993

Procedures–Returned Check Charge (Government Code Section 6157)

Effective July 1, 1993, the Board of Supervisors, by Resolution No 57330, established returned check charges as follows:

a) Returned check in payment of taxes: $35.00

b) Returned check for fines, fees, licenses, and other payments: $25.00

The charge must be identified separately from other revenue on the department receipt, deposit, permit, cash book, and cash statement. The revenue for these charges should be deposited in the General Fund #OOOl to the credit of Revenue Account #9911. (Due to the special accounting requirements, the Hospital Enterprise Funds, Water District Funds, and the Library Fund should deposit the returned check charges in their respective fund.)

Departments should include in their advice letters to the makers of returned checks the fact that the County has imposed a service charge of $25.00 or $35.00, whichever is appropriate.  (The code provides that this charge “may be added to and become part of any underlying obligation” other than real property taxes.)

The transfer of any uncollectable account to Revenue Services should include the $25.00 returned check charge.