Reissuing or Cancelling a Refund Check
SECTION OVERVIEW AND POLICIES
The purpose of this section is to provide guidance to Business Units regarding refund checks (i.e. checks issued from the Comptroller’s Refund Account) that are returned and/or need to be reissued. These checks can be easily identified by examining the face of the check. The heading reads: State of New York, Comptroller State of New York, Refund Account. Refund checks also contain a letter “P” or “W” in the upper right hand corner and will contain one (1) signature by the State Comptroller. Vendor checks have two signatures on the check – one from the State Comptroller and one from the Commissioner of Tax and Finance.
Occasionally, the Post Office may return a check because of an incorrect address. Other times, a vendor may request that a check be reissued because it was mutilated, lost, stolen, or never received. In addition, an individual can return a check to the Business Unit (BU) and request the check be reissued to a different payee due to the death of the original payee. Depending on the reason the check is returned, various actions may be necessary by the vendor, Business Unit (BU), and the State Comptroller’s Office. These actions will result in reissuing the check with appropriate changes, if necessary, or closing the voucher and reversing the accounting entries.
Process and Document Preparation:
- Business Units should monitor report NYTR1652 (Stale Payments) daily to ensure that all returned checks are replaced, reissued, or cancelled timely. BAO is not responsible for notifying the Business Unit when a payment has been returned by the Post Office and marked stale in SFS. Business Units should utilize NYTR1652 to routinely identify returned checks and Business Units should contact the affected vendors as soon as possible.
- Business Units can determine if a check has been reissued by completing the following steps:
- Sign in to SFS and navigate to SFS Financials > Accounts Payable > Vouchers > Add/Update > Regular Entry
- Click the Find an Existing Value tab
- Enter the Business Unit and Voucher Number in to the respective fields and click Search
- Navigate to the Payments tab
- On the dark blue Payment Information line, click ‘View All’
- Scheduled Payment 1 contains the payment information for the cancelled check
- Scheduled Payment 2 contains the payment information for the reissued check
- In the event the Post Office returns an undelivered check to the Business Unit, the check must be returned to:
Remittance Control Unit
110 State Street
Albany, NY 12236
- If the Business Unit and/or Vendor do not act upon a check within one year, the funds will be turned over to the OSC’s Bureau of Unclaimed Funds.
- The Business Unit should inform the payee not to deposit or cash an original check after a request for replacement has been initiated. The original check will be cancelled and therefore returned by the bank. As a result, the payee could incur non-refundable bank fees.
Guide to Financial Operations