Payments
Policy
FIACCT 05-24_40 Payments – Checks/Warrants – Canceling Agency Warrants
Effective: April 3, 2000
Revised: January 1, 2015
Reviewed: January 1, 2015
Purpose
This policy provides information about how state agencies can use the Payment Tracking System (PTS)
to cancel warrants that were issued by their own agency systems. (See the Payment Tracking System (PTS) – Overview policy in the PAYMENT section of the manual for additional information about the PTS system.)
This policy does not apply to FINET warrants, payroll warrants, or state tax refunds. To cancel FINET warrants contact Disbursing at 801-538-3200. For additional information on canceling FINET warrants see the policy on Canceling FINET, State Tax, and Payroll Warrants policy in this section of this manual. To cancel payroll warrants contact State Payroll at 801-538-3056.
Background
Sometimes a warrant is issued in error, is issued for the wrong amount, is made out to the wrong payee, is lost in the mail, or has other problems. These incorrect or lost warrants must be canceled on PTS so that the State’s warrant clearing bank will be notified and the warrant will not be honored if someone tries to
cash it. In addition, canceling the warrant on PTS ensures that the warrant will not go to State Unclaimed Property and be disbursed to the original payee. (Not all feeder system warrants go to Unclaimed Property when stale dated.)
A FINET Journal Voucher (JV) must be processed to account for a canceled warrant. This JV can be done
through PTS and automatically interface with FINET, or it can be done with a paper JV document sent to the State Division of Finance (Finance).
For help canceling a warrant on PTS or processing the related JV, please contact the Finance Help Desk
at 801-538-9690.
Definitions
Feeder System
Reason Code
Default feeder coding block
Custome coding block
A system which generates payments to individuals, vendors, or
organizations on behalf of state agencies. A feeder system regularly
sends payment transaction information to PTS. Feeder systems include, but are not limited to, ORS, Human Services, Health, Workforce Services, Tax, Payroll, FINET, etc.
A two-digit number tied to an explanation for why a warrant is canceled. For example, Department request for cancel or Never received by vendor. A reason code must be selected when canceling a warrant on PTS.
The reason codes and related descriptions are maintained in a table on PTS. Reason codes can be added and deleted depending upon agency needs. The Division of Finance maintains the Reason Code Table.
Contact the Payment Reconciliation Accountant at Finance to add or
change a reason code on PTS.
Use the default feeder coding block if all warrants issued by your
agency’s feeder system are originally charged to the same FINET coding block.
The default coding block is a FINET coding block used by PTS to
generate a Journal Voucher (JV) to account for a canceled warrant. Each feeder system on PTS has its own default coding block. The PTS user canceling the warrant cannot change this coding block. The JV generated by PTS will increase (debit) cash and decrease (credit) the default coding block. To find out what the default coding block is for a feeder system, contact the Payment Reconciliation Accountant at Finance.
Use the custom coding block if the warrant you are canceling was originally charged to multiple coding blocks, or if your agency’s feeder system warrants are not all charged to the same coding block.
This custom coding block is similar to the default feeder coding block, but the PTS user who is canceling the warrant may modify the decrease (credit) side of the JV. Only authorized PTS users may use this option. Up to 23 lines of FINET coding may be added, as long as the total amount of the added lines equals the amount of the warrant being canceled. The debit side of the Journal Voucher cannot be changed and will increase (debit) cash.
Policy
A. The Division of Finance (Finance) is responsible for giving agency personnel access to PTS for the purpose of canceling agency warrants.
B. Finance is responsible to provide monthly reports to agencies showing what cancelations have been
processed.
C. State agencies are responsible for canceling on PTS incorrect or lost warrants issued by their feeder systems.
D. State agencies are responsible for making sure appropriate FINET accounting entries are processed for their feeder systems’ canceled warrants.
Procedures
Agency
Fill out the Payment Tracking System (PTS) Department Access Request Form, SA 07, sections 1 and 5. Send the signed original to the Financial Information Systems (FIS) Security Administrator at Finance.
Contact the Finance LAN Administrator to obtain the client software for PTS. Install this software on the appropriate agency personnel’s computer.
Division of Finance
Set up appropriate PTS security access for authorized agency personnel. This security will be for the agency’s feeder system only. Assign a user ID and initial password.
Provide monthly reports for cancelations processed by agencies.
Provide PTS client software to the agency LAN administrator.
Maintain the Default Coding Block Table for each feeder system.
Maintain the Reason Code Table. Make changes and additions to this table as needed.
Agency
To cancel incorrect or lost warrants on PTS do the following:
1. Log onto PTS by double clicking on the PTS icon on your computer.
Then enter your PTS user ID and password in lower case.
2. From the menu bar select Payment Maintenance and choose the
Open/Add a Payment option.
3. Select your feeder system’s code from the scroll bar if not already
selected, enter the number of the warrant to be canceled, and select
Warrant for the payment method if not already selected.
4. Information about the selected warrant will be displayed. Review this information, especially the warrant number and amount, to make sure you have selected the warrant you wish to cancel. Then select the Cancel the Warrant button.
5. The following message will appear: “Are you sure you want to cancel this warrant?” If you want to continue, select Yes. If not, select No.
6. A FINET JV must be processed for every warrant that is canceled on
PTS. This JV can be processed by PTS or can be done by sending a paper JV document to Finance.
JV Processed Manually
1. If you wish to have PTS process the required JV, skip to the JV Processed Through PTS section below. If you choose not to do the JV in PTS, select the Apply button.
2. The Reason Code Table will appear. Select a reason code that describes why you are canceling the warrant, and then select OK.
3. A message will appear confirming that the warrant has been canceled.
4. Fill out Form FI 35, FINET Journal Voucher, and send the original JV
document, along with documentation showing that the warrant(s) have been canceled on PTS to Finance, attention Payment Reconciliation Accountant. The JV should debit cash in the appropriate fund and credit the appropriate coding block(s). Normally, the credit coding on this JV will be the debit coding block used when the warrant was issued. JVs should be sent to Finance by the end of the month after the warrant is canceled. All JVs need to be processed in the proper fiscal year before yearend deadlines.
JV Processed Through PTS
1. To have PTS process the required JV, select the Coding Blocks button.
2. Determine which of the two coding block options to use—the Default Feeder coding block or the Custom coding block. For more information about these two options see the Definitions section of this policy.
3. To use the Default Feeder coding block, select the Default Coding Block button. The debit and credit lines are displayed and cannot be changed. Next, press the Apply button.
4. The Reason Code Table will appear. Select a reason code that describes why you are canceling the warrant, and then select OK.
5. A message will appear confirming that the warrant has been canceled.
6. To use the Custom coding block, select the Custom button. The debit line cannot be changed. The credit line, however, can be changed, or up to 23 lines can be added. To add a line, right-click while in the gray area underneath the JV Credit Coding Block line and select Insert. All lines must have the same fund, and the total amount of the added lines must equal the amount of the warrant being canceled.
If more than one fund needs to be used it is necessary to do a manual JV. After the coding block information is changed or added, select the Apply button. The JV numbers are automatically assigned and will appear after the Apply button is selected.
7. The Reason Code Table will appear. Select a reason code that describes why you are canceling the warrant, and then select OK.
8. A message will appear confirming that the warrant has been canceled.
9. If at any time when in the Reason Code Table you decide not to
continue, select the Cancel button. This simply takes you back to the
Cancel Screen. If you do not want to continue with the warrant
cancellation process, you can select the Exit button. You will receive a
message that says, “You are about to exit without saving changes. OK?” You can select OK, which takes you out of the warrant cancellation process for this particular warrant. At this point you may select another warrant to cancel or exit PTS. If you select Cancel you will go back to canceling this particular warrant.