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Category:
Financial


Responsible Office:

Procedure Title:
Outstanding Check Outreach and Escheatment (Un-cashed Checks)

Document Number:
7401

Effective Date:
April 25, 2023


This procedure item applies to:
State-Operated Campuses
System Administration

Table of Contents
Summary

Process
Forms
Related Procedures
Other Related Information
Authority
History
Appendices

Summary

This is the State University of New York supplement to the Office of the State Comptroller’s (OSC) operational advisory # 8 State Check Outreach regarding un-cashed state checks.


Process

I.    The period for negotiating checks drawn from bank accounts of any funds of the State is one year.  The unpaid checks over a one-year period are considered abandoned property by the State.

A.  Campuses are responsible for doing the outreach for un-cashed check amounts from the campus sole custody accounts, as well as, transferring the funds to the Office of Unclaimed Funds (OUF) to the Abandoned Property Fund after the one-year period has elapsed.

 1.   For other uncashed checks, OSC performs the outreach for refunds issued out of the Comptroller’s Refund Account and for payroll checks. The Department of Tax and Finance Treasury performs the outreach for Vendor, Employee Expense and SSI/SSP checks issued out of the General Checking account.

II.   Outreach for checks greater than $20 is explained below. Notification is not required for checks less than $20.

A.  by first class mail, no less than 90 days prior to the applicable reporting date; April 30th. The letter notifies the payee that the proceeds of the uncashed check(s) will be turned over to the Abandoned Property Fund unless the check is cashed, or a claim is made to the issuing campus for a replacement check.

 First class mailings are not required where:

1.   the campus does not have an address for the payee, or

            2.   the campus can demonstrate that the only address on file is not the payee’s current address.

B.  by certified mail – return receipt requested, a follow up mailing for any check with an amount greater than $1,000. This must be sent to a payee not less than 60 days prior to the applicable reporting date; April 30th.

 Certified mailings are not required if:

1.   the check is claimed by the payee, or

2.   the first-class mailing is returned as undeliverable by the Post Office.

III. Replacement Checks due to Outreach

A.  When an outreach letter is returned by the payee, it is sent to the campus responsible for the original issuance.

B.  Once a replacement check has been requested due to the outreach process, it is important for campuses to follow the steps outlined in Chapter XIV.1.  Outstanding Check Outreach and Escheatment in the OSC Guide to Financial Operations. Based on which bank account the original check was paid from.

            • Comptroller’s Refund Account Outreach

For the reissuance of an uncashed check, agencies must follow the guidance prescribed in Chapter XII, Section 9.G - Reissuing or Cancelling a Refund Check

• Payroll Account Outreach

            OSC will reissue upon receipt of a signed outreach letter from the payee.

            • Vendor, Employee Expense or SSI/SSP General Checking Account Outreach

For the reissuance of an uncashed check, agencies must follow the guidance prescribed in Chapter XII, Section 9.C - Reissuing or Cancelling a Vendor, Employee Expense or SSI/SSP Check.

•  Agency Sole Custody Account Outreach

For the reissuance of an uncashed check, agencies must follow the guidance prescribed by their specific agency policies.

IV. For further information on transferring funds to OUF, please refer to the OUF website at www.osc.state.ny.us/ouf.

V.  Once these funds are transferred to OSC’s OUF, the University is no longer liable for payment and subsequent claims of unpaid funds must be directed to OSC for payment. 

 


Forms

There are no forms relevant to this procedure.


Related Procedures

There are no related procedures relevant to this procedure.


Other Related Information

In support of this procedure, the following references to additional resources for related information are included:

Reporting requirements for uncashed checks can be obtained by going to the OSC’s web site

OSC’s Operational Advisories State Check Outreach Advisory #8 and #9

OSC’s The Guide to Financial Operations:

      Chapter XIV. Special Procedures 1. Outstanding Check Outreach and Escheatment

      Chapter XV.10 Uncashed Checks




Authority

Where applicable, this section contains references to the authority governing this procedure:

Per OSC Operational Advisories: State Check Outreach Advisory #8 and #9 and OSC’s The Guide to Financial Operations Chapter XIV. Special Procedures 1. Outstanding Check Outreach and Escheatment, the authority governing this procedure is Chapter 62, Part P of the Laws of 2003 amended Section 102 of the State Finance Law and Section 1315 of the Abandoned Property Law, as well as, adding section 1422.


History

Amended April 25, 2023 to align with OSC procedures.

 


Appendices

There are no appendices relevant to this procedure.