Office of the New York State Comptroller  
      Home || Press Releases || Audits || Retirement || State Finances || Local Government || Reports || NYC Oversight || Pension Fund

New York State Accounting System User Procedures Manual

Volume Name
CONTROLS AND SPECIAL PROCEDURES
Volume
XI
Date
2/29/08
Section Name
Special Procedures - Replacement/Exchange of Checks
Section
7.0100

     This section describes procedures and identifies forms needed for the replacement of lost or stolen checks and exchange of certain types of checks drawn on bank accounts either in the joint custody of the Comptroller and the Commissioner of Taxation and Finance or in the sole custody of the Comptroller.

REPLACEMENT OF CHECKS

     The procedure for obtaining a replacement for a lost or stolen check issued by the State’s Central Accounting System depends on whether the check was issued from a Joint Custody bank account (e.g. Payroll and vendor checks) or a sole custody account of the Comptroller (e.g. refunds).

A. Joint Custody Bank Account (e.g. NYS General Checking Account)

1) Immediately call the Depository Control Unit of the Division of the Treasury, Department of Taxation and Finance at (518)474-6232, and submit Request Form (TD-346) to:

Depository Control Unit
Division of the Treasury
Department of Taxation and Finance
PO Box 22119
Albany, NY 12201-5119

The TD-346 may also be faxed to (518) 473-9163.

2) The Depository Control Unit will research the status of the check to determine whether the check has been cashed. If the check is cashed, a photocopy of the check will be ordered and the photocopy will be mailed to the agency to be forwarded to the payee for verification of the endorsement.

3) Upon Treasury's receipt of the TD-346:

a. If the check is still outstanding, the proper lost check application form will be sent to the agency. The agency should forward the form to the payee for completion or the agency may complete the form on behalf of the payee – provided a written request has been received from the payee.

4) If the endorsement is a forgery, the agency must request an Affidavit to Support Claim of Forged or Improper Endorsement (TD-342.2) from the Depository Control Unit by resubmitting Treasury form TD-346. The TD-342.2 should be completed and signed by the payee, notarized and returned to the Depository Control Unit.

Any joint custody checks that are routed from Treasury to a State agency and are deemed undeliverable by the agency should be returned to the Division of the Treasury within thirty days of the check date. This will allow adequate time for the agency to find a better address for the payee or make a final determination that the check is undeliverable. Agencies must return undeliverable checks to:

Remittance Control Unit
Division of the Treasury
Department of Taxation and Finance 
PO Box 22119
Albany, NY 12201-5119

Any check returned to the Division of the Treasury as undeliverable by an agency or by the Post Office will be retained for up to 60-days from the check date, at which time the check will be destroyed. Prior to the destruction of the check, agencies can contact the Division of the Treasury in writing at the above address, requesting that the check(s) be remailed to a better address. After the check is destroyed, agencies will need to request a duplicate check, which can be issued for up to one year from the original check date. Duplicates can be requested using the TD-346.

After one year, the check will be canceled and the proceeds of the cancellation will be turned over to the State’s Abandoned Property Fund, pursuant to Section 102 of the State Finance Law. Payees must contact the Office of Unclaimed Funds (1-800-221-9311) or visit the State Comptroller’s website at: http://www.osc.state.ny.us/ouf/index.htm for further instructions on how to claim their money.

B. Sole Custody Bank Account (e.g. Comptroller's Refund Account)

1) Immediately call OSC's Tax Accounting Section - Refund Unit at (518)486-1230 and request that a 'stop payment order' is placed on the check.

2) Identify the account name, check number, date, amount and payee.

3) Follow up with a written request for the stop payment to:

Tax Accounting Section - Refund Unit
Bureau of State Accounting Operations
Office of the State Comptroller
110 State Street - 9th Floor
Albany, NY 12236

The written request must include the account name, check number, date, amount and payee.

4) The bank will notify the Tax Accounting Section as to whether the check has been cashed.

a. If the check has not been cashed, an Application by Individual, Corporation, or Association for Issuance of a Duplicate Check (AC209) will be sent to the payee. The application form must be completed by the payee and returned to the Tax Accounting Section for processing. Once a completed application is received, a duplicate check is usually prepared and mailed to the payee within 14 days.

b. If the check has been cashed, a photocopy of the check will be sent to the payee.

5) If the endorsement is a forgery, a written request should be sent to the Tax Accounting Section for an Affidavit to Support Claim of Forged Endorsement (AC1551). The AC1551 should be completed, signed by the payee, notarized and returned to the Tax Accounting Section.

Any check returned to the Office of the State Comptroller as undeliverable by an agency or the Post Office will be retained for 60 days, at which time the check will be destroyed. Until destruction of the original check, agencies can contact the Bureau of Accounting Operations at (518) 486-1230, requesting the check be remailed. After destruction, agencies will need to request a duplicate check, which can be issued for up to one year from the original check date. This request must be made in writing and sent to the Tax Accounting Section.

After one year, the check will be canceled and the proceeds of the cancellation will be turned over to the State’s Abandoned Property Fund, pursuant to Section 102 of the State Finance Law. Payees must contact the Office of Unclaimed Funds (1-800-221-9311) or visit the State Comptroller’s website at: http://www.osc.state.ny.us/ouf/index.htm for further instructions on how to claim their money.

EXCHANGE OF CHECKS

     When a check has been issued but there is a need to correct the name of the payee it is necessary to exchange the check. There are two different procedures for exchanging checks, depending upon the type of check to be corrected.

A. Other Than Personal Service Checks

Checks for other than personal service may be exchanged ONLY if the payee is deceased. To exchange a check for an other than personal service payment, prepare a Report of Check Exchange (AC1476). Prepare a separate AC1476 for each check to be exchanged.

The original check and the AC1476 should be submitted to:

Revenue Processing Section
Bureau of State Accounting Operations
Office of the State Comptroller
110 State Street - 9th Floor
Albany, NY 12236

Checks that include overpayments to payees (e.g. incorrect amount) or incorrect spelling of payee names, can only be exchanged through the Comptroller’s Refund of Appropriation Expenditure procedures that are contained in Volume IV, Section 5 of the Revenue - User Procedure Manual and published on the Comptroller’s website at:

http://www.osc.state.ny.us/agencies/accmanual/index.htm

B. Payroll Checks

Refer to the Agency Payroll Manual for procedures on exchanging payroll checks due to incorrect amount and/or payee.