Budget and Finance Policy and Procedure Office
A Division of The Office of Budget and Finance
A Division of The Office of Budget and Finance
This procedure implements Policy FN08 Refunds by defining operational steps, approval levels, documentation requirements, and processing standards for issuing refunds. In the event of a conflict, Policy FN08 Refunds governs.
Exhibit B: Policy-Procedure Crosswalk shows how the requirements of Policy FN08 Refunds correspond to the sections of this procedure.
This procedure applies to all University units that collect payments and may need to issue refunds to customers, suppliers/vendors, or other external payors.
Refunds involving certain financial activities may require review or approval from specialized administrative offices, including the Bursar, Research Accounting, or other governing offices.
Activities excluded from this procedure are identified in Policy FN08 Refunds exception section.
Before initiating a refund request, units must verify that the transaction meets the requirements of Policy FN08 Refunds.
Refunds apply only to the return of funds to an external payor. Internal accounting corrections must be processed using journal entries and are not considered refunds.
Transactions governed by other policies or processes must be handled under those requirements.
Refunds below the minimum threshold established in Policy FN08 Refunds will not be processed.
Certain refund transactions may be governed by separate University requirements. Refunds involving sponsored awards, gift funds, dining operations, campus card programs, or other restricted activities must be reviewed and processed in accordance with the requirements established by the administrative office responsible.
Units must ensure documentation exists to support the original transaction and refund request. Acceptable documentation may include:
Refund requests must comply with the timing requirements established in Policy FN08 Refunds - Permitted Refunds.
Requests submitted after the allowable timeframe require approval from the unit head or designee and written justification.
Exceptions may apply when required by:
Refunds for payments made by check or eCheck may not be issued until the payment clearance period established in Policy FN08 Refunds has passed.
Refunds must be issued to the original method of payment whenever possible, consistent with the requirements of Policy FN08 Refunds.
If the original payment method cannot be used, the reason must be documented.
Units that meet the definition of retail operations must process refunds in accordance with Policy FN08 Refunds. Approval requirements for retail refunds are defined in Exhibit A: Refund Authorization Matrix.
Retail units may issue:
All cash refunds must be recorded and included in daily reconciliation.
Units that do not meet the definition of retail operations must process refunds through the University financial system using the established refund workflow. Approval requirements for non-retail refunds are defined in Exhibit A: Refund Authorization Matrix.
The Central Procurement Accounts Payable team reviews the request and issues the refund payment.
Refund checks are typically issued within 7-10 business days after approval.
Refunds for credit card transactions must be processed through the same payment system used for the original transaction.
Cash or check refunds for credit card purchases are prohibited unless permitted under Policy FN07 Electronic Payments: Credit Cards.
If a credit transaction is rejected by the card processor:
Processing timelines are operational standards established to support timely and consistent application of policy requirements.
Once a complete refund request is received:
| Refund Type | Expected Processing Time |
|---|---|
| Cash POS | Immediate |
| Retail refund by check | 7 - 10 business days |
| Non-retail refund (SIMBA) | 10 business days |
| ACH/direct deposit refund | 3 - 5 business days after disbursement |
Complex refunds requiring investigation may take up to 60 days.
Units must notify the requester if processing exceeds expected timelines.
Units may adopt a no-refund policy if:
Exceptions are limited to:
If fraud, suspected fraud, or disputed transactions are identified involving credit card or accounts payable transactions, the following actions must be taken:
No refund may be issued during an active fraud investigation.
Monitoring activities support compliance with the fraud escalation and oversight requirements defined in Policy FN08 Refunds.
Units that process refunds must periodically review refund activity for unusual patterns.
Examples include:
Suspected irregularities must be reported to the appropriate oversight office (i.e., Merchant Management or Central Procurement Accounts Payable teams by submitting a Procurement Assistance Request).
Central Procurement Accounts Payable will produce quarterly reports identifying:
refunds greater than $1,000
repeated refund patterns
outstanding refund holds
Exceptions to the requirements of this procedure must comply with Policy FN08 Refunds.
Requests for exceptions must be submitted in writing and include clear business justification, supporting documentation, and an assessment of any financial or compliance risks.
All exceptions require prior approval from the Associate Vice President for Budget and Finance & Controller or designee.
Approved exceptions must be retained with the refund documentation and made available for audit or review upon request.
| Roles | Responsibilities |
|---|---|
| Departments and Units |
Departments and units must:
|
| Central Procurement Accounts Payable Team |
The Central Procurement Accounts Payable Team is responsible for:
|
| Merchant Management |
Merchant Management is responsible for:
|
| Retail Operations |
Retail Operations are responsible for:
|
All refund activities must follow the requirements of Policy FN00 Financial Governance and Internal Controls (pending) to ensure proper financial oversight, separation of duties, and protection of University assets.
The individual preparing a refund request may not be the same individual who approves the refund. The individual approving a refund may not be the same individual who processes the refund payment. Units must maintain appropriate separation of duties to prevent a single individual from controlling all stages of the refund process.
Refund approvals must be obtained in accordance with the requirements established in Exhibit A Refund Authorization Matrix. The Authorization Matrix defines the minimum authority required based on refund type and dollar amount. Units may establish more restrictive approval requirements but may not reduce the approval requirements established in Exhibit A.
Nothing in this procedure is intended to expand or override the requirements of Policy FN08 Refunds.
Violations of this procedure must be reported through the reporting channels defined in Policy FN08 Refunds.
Failure to follow this procedure may result in corrective action in accordance with Policy FN08 Refunds and applicable University policies.
Refund activities may be reviewed by the Office of Budget and Finance, Internal Audit, or other authorized oversight offices.
Units must support these reviews and maintain accurate refund records.
Refund documentation must be retained in accordance with:
Additional questions may be directed to the Office of Records Management.
For questions, additional details, or to request changes to this procedure, please contact the Policy and Procedure Office by submitting a Technical Support Request form.
June 3, 2026