UNCASHED OR UNCLAIMED AGENCY CHECKS - 8042
Uncashed checks are issued by agency/department but remain uncashed by the payee. Unclaimed checks are returned to an agency/department for which the payee cannot be located. Agency checks are checks issued from an agency/department's account that may have Revolving Fund, General Cash, or Trust Fund Cash.
Agency checks have a one-year period of negotiability. Agency Trust Fund Cash checks may have specific law provisions requiring a different period of negotiability.
Agencies/Departments shall send a Stop Payment Request form, STD 432, to the State Treasurer's Office (STO) for all uncashed checks issued from the agency/department's centralized State Treasury System (CTS) checking account timed to arrive at least one week before the end of the one year of negotiability. The STO may stop the payment of stale dated checks only through the receipt of stop payment requests from agencies/departments. For stop payment procedures, see SAM Section 8045. Agencies/Departments shall record cancellation transactions to the appropriate disbursement register or the revolving fund Cash Book. For information on the revolving fund Cash Book, see SAM Section 8150.
Agencies/Departments shall issue stop payment notices as the banking institution requires for those bank accounts outside the CTS.
Agencies/Departments shall perform the following for unclaimed checks or upon STO confirmation of a stop payment request for uncashed checks:
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| Type of Checks | Process for Uncashed or Unclaimed Checks |
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Revolving Fund checks |
If reimbursement to the revolving fund has not been received, cancel the checks and credit the amounts back to the revolving fund. If reimbursement to the revolving fund has been received, cancel the checks and remit the amount to an escheat revenue account in the fund that established the revolving fund. |
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General Cash checks |
Cancel the checks and remit the amount to an escheat revenue account in the fund from which the checks were drawn. |
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Agency Trust Fund checks |
Cancel the checks and credit the amounts back to the depositors’ or special trust accounts unless otherwise provided in the trust agreement or statute under which the trust was established. |
Agencies/Departments shall maintain a subsidiary ledger of all amounts credited to and disbursed from the escheat revenue accounts.
Claims made by payees within two years of the check cancellation date shall be processed by filing a claim against an escheat revenue account. For those amounts credited in the current fiscal year, the claim shall be filed against the current year escheat revenue account. For those amounts credited in a prior fiscal year, the claim shall be filed against the prior year escheat revenue account. The State Controller’s Office shall process the claims regardless of the balances in the escheat revenue accounts.
Expenditure claims made by payees more than two years after the check cancellation date shall be processed in the same manner as claims against a reverted appropriation. For information on paying from a reverted appropriation, see SAM Section 8422.12.
Revenue refund claims made by payees more than two years after the check cancellation date shall be processed in accordance with SAM Section 8240.