This procedure is utilized when a check (payroll or accounts payable) has been lost, stolen, or rendered non-negotiable because of mutilation. When these situations arise, a stop payment is processed and a replacement check is generated, as documented below.
Requests for stop payments are made to Accounting Operations or Payroll, typically by phone, but requests are also accepted by mail (inter-office and U.S. mail) and email.
For requests made by phone, a Stop Payment Information Form (Exhibit "A") is completed to obtain the appropriate information and document the request. Once the pertinent information is obtained, all Stop Payment Information Forms are forwarded to Accounting Operations for further processing.
For mail and email requests, the requestor is required to provide the same information as that acquired/recorded for phone requests. A copy of the mail/email request will suffice (in lieu of a Stop Payment Information Form) as the support document for that request. Any additional information needed to process the request will be noted on the mail/email request, as applicable. Like the Stop Payment Information Form, mail/email requests must be directed to the Accounting Operations Supervisor.
Accounting Operations verifies the check is still outstanding by checking the Outstanding Check List. Next, the Mellon Bank Telecash System will be accessed via the Internet, and a check history obtained. Once verified that the check in question is indeed outstanding, Accounting Operations enters the stop payment information (check number, date, amount, payee name) into the Telecash System to prevent the check from being negotiated. Once this information is provided, the Telecash System replies with a confirmation number acknowledging the successful transmitting of the stop payment information. Accounting Operations writes this confirmation number on the corresponding Stop Payment Information Form (Exhibit "A") or email request, as applicable, in preparation for the issuance of a new check (see Replacement Check Processing).
Once the stop payment transaction has been completed, the Accounting Operations Supervisor prepares a Stop Payment Request (Exhibit "B"). Next, a Special Request for Check is prepared per IBIS instructions to initiate the issuance of a replacement check. Copies of the Stop Payment Information Form (Exhibit "A") and the Stop Payment Request (Exhibit "B") will be forwarded to the Accounting Operations central desk as paper backup supporting the SRFC. Once generated, the replacement check is returned to Accounting Operations. The new check number is recorded on the corresponding Stop Payment Information Form (Exhibit "A") or mail/email request, as applicable. The replacement check is then mailed to the appropriate Payee/Payee Department, or held for pick-up, per the instructions specified by Payee/Payee Department.
A JVCN is processed by Accounting Operations per IBIS instructions in those cases where a new check is not to be issued. This would occur in those situations where funds are to be returned to the originating department.
For each stop payment transaction, copies of the Stop Payment Information Form (Exhibit "A") and the Stop Payment Request (Exhibit "B") are retained by Accounting Operations, files by Payee name.
Financial Reporting will be responsible for monitoring/detecting any exceptions which may arise (e.g., a lost check being cashed, forgery,etc.), and notifying Accounting Operations if such exceptions occur.
The Financial Officer is responsible for ensuring that procedures pertaining to the accountability and safeguarding of all cash receipts, cash funds, and other assets are established and followed in accordance with approved University policies and procedures. Regular audits relating to advances, cash, travel, equipment accountability, and other expenditures provide a means to protect University assets. The Financial Officer is responsible for working with Internal Audit when audits are being performed in the administrative area, as well as performing an annual audit that is submitted to the Assistant Controller.
Record retention must be managed in accordance with Policy AD35 - University Archives and Records Management, and records schedules approved by the Records Management Advisory Committee, Office of General Counsel, and Office of the President. These retention requirements are the University's retention criteria, either derived or based upon federal, state, and local statute or regulations, industry standards, and business needs. Retention beyond recommended time periods require justifiable reasons and warrant review by the Records Management Officer or designee. All documents must be maintained in such a manner so as to provide ease of access for review, and to provide a suitable audit trail for all transactions.
- Documents subject to a Legal Hold (see AD35, Legal Hold). A legal hold will remain in effect until it is released in writing by the Office of General Counsel.
- Documents under audit or review, either internally or externally. The retention period extends until released by the Corporate Controller's Office. The Financial Officer will be notified regarding any accounts which are under audit; the Financial Officer will be responsible for contacting the department.
Additional questions may be directed to the University Archivist or the Records Management Officer.
For questions, additional detail, or to request changes to this procedure, please contact the Supervisor, Accounts Payable.
Date Approved: 4/13/2017
Most recent changes:
- Revision 4 - dated 4/13/2017
Revision History (and effective dates:)
- Revision 3 - dated 9/13/06 (updated to reflect current operations)
- Revision 2 - dated 9/22/99 (revised to reflect current operations; title changed to "Stop Payment Processing")
- Revision 1 - dated 6/7/87
- Original - 04/07/70 (entitled "Replacement of Payroll Checks").