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School system loses nearly $1,000 to bad checks

By Sarah Newell Williamson | Hickory Daily Record

Published: August 13, 2008

NEWTON - Newton-Conover City Schools decided to implement a new program to recover money after losing nearly $1,000 through bounced checks for student lunches.

During the 2007-08 school year, the child nutrition department received 80 checks from accounts that didn't have sufficient funds to pay them, said Vickie Rowe, director of child nutrition for the school system. Those checks totaled $1,297.80. Although the school system tried to recover the money, it only managed to get $365. During the 2006-07 school year, Rowe said, 50 checks bounced.

When parents send checks to pay for students food but don't have the funds to back them up, it can be a lot more costly for the parent, Rowe said. Bad checks are usually run twice by the school system's bank, First Citizens Bank, for $35 each time at the check writer's expense. Checks are usually run another two times at a check writer's own bank if he doesn't bank at First Citizens. This can cost one person up to $140 for one bad check, Rowe said.

Newton-Conover City Schools' Board of Education members voted unanimously at their meeting Tuesday night to implement the Federal Automated Recovery System. Using this system, FARS automatically repays the school system the insufficient funds for the check and will work with the person who had insufficient funds to collect the money, Rowe said. They do this using credit cards, payment plans, certified checks and other methods so the school system doesn't have to worry about it.

Using FARS, checks will be run once at First Citizens Bank, for $35, before being sent to FARS. FARS will run the check once for $25. The check will not be sent to the customer's own bank for a processing fee. They will instead contact the customer to work out a monetary payment.

Currently, 52 other school systems in North Carolina utilize the free program, including Hickory Public Schools and Community Schools of Catawba County.