Staledated Checks (BF-6, Rev.3)CITY OF DELRAY BEACH
ADMINISTRATIVE POLICIES AND PROCEDURES
DEPARTMENT:
SUBJECT:
REVISION:
APPROVED BY:
PURPOSE
Finance
Staledated Checks
POLICY NUMBER:BF-6
SUPERSEDES:BF-6,Rev.2
ce R.Moore,ICMA-CM,City Manager
The purpose of this directive is to set forth policy regarding staledated checks in accordance with Chapter
717 of the Florida Statutes.
POLICY
BF-6.1.Policy;
On a monthly basis,the outstanding check report for both claims (vendor checks)and payroll will be
reviewed for checks that have not been cashed within 90 days.A notification letter or memo will be sent to
each payee or employee detailing the check number,date,and amount of check that is outstanding.If
there is no response to a notification letter,any check less than $10.00 (FS 717.117(2)(h)will be voided
and transferred to a miscellaneous income account.Payroll checks less than $1.00 will be voided.
Staledated claims checks of $10.00 or more will be voided and transferred to an unclaimed check account.
Any staledated payroll checks of $1.00 or more will be voided and transferred to an unclaimed check
account.The amount in the unclaimed check account will be remitted to the Office of the Comptroller in
accordance with Chapter 717 of the Florida Statutes.
BF-6.2 Procedure for Handling Non-Deliverable and Staledated checks;
All checks that need to be voided must be directed to the Payroll Administrator.In her extended absence,
checks are to be directed to either the Accountant or the Assistant Finance Director.
A.Checks received from Utility Customer Service as Non-Deliverable Utility Deposit Refunds.
1.Check address,zip code,forwarding address,etc.for more current address.
2.Check to see if refund can be transferred to another utility account
3.If check is less than $10.00,void,change account number from 441-0000-202-14.00 to a
miscellaneous income account,441-0000-369-99.00.
4.If check is $10.00 or more,void,change account number from 441-0000-202-14.00 to unclaimed
check account,441-0000-220-14.00.
5.All checks transferred to an unclaimed check account must be entered on a spreadsheet that
would include name,address,check amount,check number and type.The layout must include
name,address,check amount,check number and type.The layout must include all necessary
information required by the State Comptroller.
Staledated Checks
BF-6
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6.Unclaimed utility deposit refund checks are to be remitted to the State Comptroller annually and
in accordance with Chapter 717,Florida Statutes.
8.Outstanding Claims Checks
1.Be sure outstanding checks have been reconciled to the general ledger.
2.Although checks are staledated if over 90 days,send letter to payee (vendor)if check remains
outstanding for 60 days.Notification letter informs payee that check has not been cashed and
provides a section to have check reissued.
3.If notification letter is returned with a request to reissue,request stop payment from bank.Once
bank has placed stop payment,use the "void and reissue"option on the disbursement menu.In
the comment portion of the screen,key in "replaced check #_"
4.If notification letter is not returned,or returned as non-deliverable,request stop payment from
bank.Once bank has placed the stop payment,if under $10.00,void check to miscellaneous
income (xxx-0000-369-99.00)following instructions above.If check is $10.00 or more,void and
transfer to unclaimed checks (xxx-0000-220-14.00).
5.Maintain database of voided checks that have been posted to unclaimed check account.
Database to include name,address,check number,amount,type,(utility deposit refund,payroll
or vendor check),non-deliverable,transferred to another account,etc.
6.Unclaimed property report has to be filed by calendar year to the State Comptroller in a format
specified by the State.All unclaimed checks,including utility deposits and payroll checks,are to
be remitted after a one year dormancy period in accordance with FS 717.112 and 717.113.
7.At the end of the calendar year,120 days prior to remitting unclaimed checks to the
State,a letter must be sent to each payee,advising them that all unclaimed checks must
be sent to the State.
C.Outstanding Payroll Checks
1.Be sure outstanding checks have been reconciled to the general ledger.
2.Although checks are staledated if over 90 days,a memo is sent to an employee ifthe
check has not been cashed in 60 days.Notification memo informs employee that the
check has not been cashed and provides a section to have check reissued.
3.If the payroll check is under $1.00,the check is voided after 90 days.
4.The City makes every effort to contact employees or ex-employees regarding staledated
checks.Checks of $1.00 or more are not voided and transferred to unclaimed checks
until all options have been exhausted.