Certain times of the year, departments may receive refundable deposits for items such as room keys and lockers. Since the University owes the depositor when they have fulfilled the requirements for returning the deposit, these deposits are considered a liability.
However, to address situations when the requirements are not met (i.e., key is lost or not returned), departments should have a key fob/key policy that addresses when deposits are forfeited (e.g., within 6 months after the end of the required period of time).
Note: This policy should be communicated to the depositor (e.g., student) at the point when they pay the refundable deposit.
When it is determined that a deposit will not be refunded, either because the deposit has been forfeited OR the depositor has left the University, the department will need to: