Payments
Policy
FIACCT 05-24_10 Payments – Check/Warrants – Undeliverable Warrants
Effective: April 3, 2000
Revised: January 1, 2015
Reviewed: January 1, 2015
Purpose
This policy defines the policies and procedures for handling FINET vendor payment warrants, payroll warrants, and state tax refund warrants that are not deliverable by the post office.
Background
State mail that cannot be delivered by the US Post Office is returned to State Mail Services. State Mail Services then returns it to the agency shown in the return address portion of the envelope.
Policy
A. FINET vendor payments and state tax refunds that cannot be delivered will be returned to the Division of Finance.
B. Payroll warrants that cannot be delivered will be returned to the agency mailing the payroll warrant. If the agency is unable to locate the employee, the warrant must be submitted to the Division of Finance.
C. The Division of Finance will hold warrants that cannot be delivered until they stale date, one year after the date of issue.
D. The Division of Finance will report stale dated warrants to Unclaimed Property. Unclaimed Property will attempt to locate the payee.
E. The agency should report to Division of Finance, Financial Reporting, any warrants held at June 30
Procedures
FINET Vendor Payment Warrants
State Mail Services
Return undeliverable FINET warrants to the Division of Finance.
Division of Finance
Record the undeliverable warrant in the Payment Tracking System by
changing the Returned Check indicator flag to Y. File warrants numerically.
Send a copy of undeliverable FINET warrants to the agency that issued the warrant.
Agency
If available, provide the Division of Finance with the correct address for the FINET warrant.
Division of Finance
Mail the warrant to the correct address if provided. In the Payment Tracking System, change the Returned Check indicator flag to N and enter a note indicating the correct address. Correct the FINET Vendor File if necessary.
Report to Unclaimed Property any warrants that have not cleared the bank within one year from the date of issue. Destroy any undeliverable warrants that have stale dated.
State Tax Refund Warrants
State Mail Services
Return undeliverable state tax refunds to the Division of Finance.
Division of Finance
Record the undeliverable warrant in the Payment Tracking System by changing the Returned Check indicator flag to Y. File warrants numerically.
Mail the warrant to the correct address if provided. In the Payment Tracking System, change the Returned Check indicator flag to N and enter a note indicating the correct address.
Report to Unclaimed Property any warrants that have not cleared the bank within one year from the date of issue. Destroy any undeliverable warrant that have stale dated.
State Tax Commission
Direct inquiries about lost state tax refunds to the State Finance Division.
Payroll Warrants
State Mail Services
State Mail Services Return undeliverable payroll warrants to the agency that mailed the payroll warrant.
Agency
Determine the appropriate address for returned payroll warrants. Submit any undeliverable payroll warrants to the Division of Finance.
Division of Finance
Record the undeliverable warrant in the Payment Tracking System by
changing the Returned Check indicator flag to Y. File warrants numerically.
Mail the warrant to the correct address if provided. In the Payment Tracking System, change the Returned Check indicator flag to N and enter a note indicating the correct address.
Report to Unclaimed Property any warrants that have not cleared the bank within one year from the date of issue. Destroy any undeliverable warrants that have stale dated.