Stop Payment Procedures
|
| Reissues |
| University checks, which are lost, stolen, mutilated or over 6 months old (stale) will be replaced when authorized by Cash Control department. |
| Steps are as follows |
|
If you have the original check fill out the check return form. Using this form saves the University the fee for entering a stop payment. If you do not have the check enter the check data into the stop payment & reissue form.
Cash Control verfies that the check is outstanding and places a stop payment (bank) request on the check.
If the check is stale the check has been cancelled by the bank and it will be reissued out of a clearing account. For checks that are not stale Customer Service cancels the check (internal) and reissues a new check.
If a check is paid, and is no longer outstanding, the check cannot be reissued. A copy of the cashed check will be forwarded to the department for review. If forgery is suspected contact Cash Control immediately. See I-550 Check Forgery of University Checks.
|
| For specific policies related to payroll checks refer to the Paycheck Mailing and Reissue Process. |
Related Accounting Policies:
I-540 Stop Payments and Reissue of Disbursement Checks (non-payroll)
I-541 Stop Payment and Reissue of University Payroll Checks
|
|
| Cancellations |
| A check cannot be cancelled if payment is due. If you are unable to locate the payee mail the unclaimed check to FMS Customer Service. A cancel is required if a check is payable to the wrong payee or is the wrong amount. After six months checks are considered stale and are cancelled by the disbursement banks. |
| Steps are as follows |
|
If you have the original check fill out the check return form. Using this form saves the University the fee for entering a stop payment.
If you do not have the check enter the check data into the stop payment & cancel form.
Cash Control verfies that the check is outstanding and places a stop payment (bank) request on the check. If the check is stale the check has been cancelled the funds will be disbursed out of a clearing account.
Customer Service cancels the check (internal) and the funds are refunded to the original account and object code.
If a check is paid, and is no longer outstanding, the check cannot be cancelled. A copy of the cashed check will be forwarded to the department for review. It is the department's responsiblity to recover the funds and if forgery is suspected contact Cash Control immediately. See I-550 Check Forgery of University Checks. |
| For specific policies related to payroll checks refer to the Overpayment Procedures. |
Related Accounting Policies
I-520 Cancellation of University Checks (non-payroll) |
|
| Stale Checks |
| Outstanding checks over six months old are considered stale and are cancelled automatically by the bank. The procedures remain the same except all disbursements are entered by Cash Control through DVs (reissues) and DIs (cancels). |
| A check cannot be cancelled because it is stale and the reason for the payment is unknown. Funds will be held by FMS until a proper reason for reissue or cancellation can be identified. |
| Vist the Check FAQ for more information. |
|
| NOTE: Checks are not cancelled at exact six month intervals. A check remains outstanding sometimes throughout the whole month. Internal controls do not allow for cancellation and reissues of checks after EXACTLY six months and if Cash Control alerts your department of this situation you will have to cash the original check or wait until the following month for reissue or cancellation.
|
