Payments
Policy
FIACCT 05-24_30 Payments – Checks/Warrants – Canceling and replacing FINET, State Tax, and Payroll Warrants
Effective: April 3, 2000
Revised: January 1, 2015
Reviewed: January 1, 2015
Purpose
This policy defines the policies and procedures for canceling and replacing FINET vendor payments, state tax refunds, and payroll warrants that cannot be located or have been mutilated.
Background
A payee or agency may report a lost or mutilated FINET vendor payment or state tax refund warrant to the Division of Finance. Employees may report a lost or mutilated payroll warrant to their agency. These warrants will be canceled and replaced.
When FINET vendor payment warrants are canceled and replaced, the entry debits Cash (0010) and sets up a liability in account (5100). The replacement warrant reverses this entry through automated disbursements. No accounting entry is made to the fund originally charged. The replacement warrant is identical to the original warrant. If the address on the original is incorrect, the replacement warrant will be mailed in an envelope to the address on the form.
When a tax refund is canceled and replaced through the Payment Tracking System, the funds are credited to the Finder Fund (8021). The Finder Fund is charged when these warrants are replaced. No accounting entry is made to the original fund.
When a payroll warrant is canceled and replaced, no accounting entry is made to the original fund.
Policy
FINET Vendor Payments
A. If a FINET vendor payment is reported to be lost, the agency should determine whether the warrant is still outstanding and whether the warrant has been returned by the post office as undeliverable. If the warrant has been returned by the post office, it should be mailed to the correct address.
B. If the warrant is still outstanding and has not been returned by the post office, a Lost Check Replacement Form, FI 12, should be completed by the payee or agency and submitted to the Division of Finance, Disbursement Section. If the address on the original warrant is incorrect, the address on the replacement form should be corrected.
C. After the form is submitted to the Division of Finance, Disbursement Section, the warrant will be canceled and replaced.
State Tax Refunds
A. If a state tax refund warrant is reported lost, the Division of Finance, Disbursement Section should determine whether the warrant is still outstanding and whether the warrant has been returned by the post office as undeliverable. If the warrant has been returned by the post office, it should be mailed to the correct address.
B. If the warrant is still outstanding and has not returned by the post office, complete a Lost Check Replacement Form, FI 12, and mail it to the payee. If the address on the original warrant is incorrect, correct the address on the replacement form.
C. After the form is submitted to the Division of Finance, Disbursement Section, the warrant will be canceled and replaced.
Payroll Warrants
A. Employees must report lost payroll warrants to their agency.
B. The agency should locate the warrant number and complete a Form FI 13, Immediate Payroll Warrant Replacement. When the form is completed and signed, send it to the Division of Finance, Accounting Operations Section.
C. The Division of Finance, Accounting Operations will replace the check with a manual warrant.
Procedures
FINET & State Tax Refund Warrants
Payee or Agency
Report the lost FINET or state tax refund warrants to the Division of Finance.
Division of Finance
Determine if:
The warrant has cleared the bank
The warrant was returned by the Post Office as undeliverable
The warrant was intercepted in the Finder System
The warrant has stale dated
The warrant has been canceled
If any of these statements are true, report that information to the payee. If the warrant was returned as undeliverable, mail the warrant to the correct address. If none of these statements are true, complete a Lost Check Replacement Form, FI 12, and mail to the payee.
Payee of Agency
Sign the FI 12 form and return to the Division of Finance.
Division of Finance
When the FI 12 form is returned, verify the information and determine that the warrant is still outstanding. Cancel the lost tax refund warrant in the Payment Tracking System. The FINET warrant is canceled in FINET or Payment Tracking System depending on which fiscal year it was issued.
Replace the warrant:
FINET warrants for the current fiscal year are replaced by rescheduling the AD. This reschedules the warrant and produces a duplicate of the original warrant. For previous fiscal years it is canceled in the Payment Tracking System and then replaced by entering a new payment in FINET.
Income Tax Refunds are replaced by entering a new payment in FINET.
Payroll Warrants
Payee
Report a lost payroll warrant to the agency.
Agency
Locate the warrant number and complete an Immediate Payroll Warrant Replacement Form, FI 13. Sign the completed form and submit or fax (801-538- 3562) the form to the Division of Finance, Accounting Operations Section.
Division of Finance
Determine if:
The warrant has cleared the bank
The warrant was returned by the Post Office as undeliverable
The warrant has stale dated
The warrant has been canceled
If any of these statements are true, report that information to the agency.
Division of Finance
If the warrant is still outstanding, replace the warrant immediately with a manual warrant.