SECTION OVERVIEW AND POLICIES

The purpose of this section is to provide guidance to agencies 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: 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 signature by the State Comptroller. Vendor checks will contain the letter “A” in the upper right hand corner and have two signatures on the check – one from the State Comptroller and one from the Commissioner of Tax and Finance. For additional information regarding vendor checks that are returned or need to be reissued, see Section 9.C – Reissuing or Cancelling a Vendor, Employee Expense, or SSP Check of this Chapter.

Occasionally, the Post Office may return a check because of an incorrect address. Other times, a payee may request that a check be reissued because it was damaged, lost, stolen or never received. In addition, an individual can return a check to the agency 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, the payee and the agency must take various actions to cancel the original check and reissue if needed.

STOP PAYMENT PROCESS

Agencies must enter stop payment requests directly in the SFS and should refer to the following handbook and job aids in SFS Coach for guidance on submitting stop payment requests for refund checks:

• Handbook: Agency Stop Payment Request
• JAA-AP205-034: Creating a Stop Payment Request for Agency Sole Custody P Warrant Checks
• JAA-AP205-035: Creating a Stop Payment Request for OSC Sole Custody W Warrant Checks
• JAA-AP210-035: Inquiring Upon Stop Payment Request
• JAA-AP210-036: Cancel a Stop Payment Request

To ensure a stop payment request is processed the same day as it is entered, agencies must submit the request by 6pm so that it can process in SFS nightly batch. If a stop payment request is submitted after 6pm, it may take an additional business day to process. 

Agencies will choose one of three Stop Payment Actions in the SFS:

For assistance in determining the appropriate action to take on a refund check, please see the Reissuing or Cancelling a Refund Check Flow Chart. 

METHODS TO LOOK UP REFUND INFORMATION

Look Up Stop Payment Request Status

After submitting a stop request, a user can view the request status by navigating to Accounts Payable > Payments > Cancel/Void Payments > Agency Stop Payment Request and entering criteria to find an existing value. Agencies should use the following values if looking up multiple refund checks at once:

• Bank Code: 10001
• Bank Account: 1202 for “P” checks or 1203 for “W” Checks

The search results will provide information including which user requested the stop, the date of the request, and the status of the request. (Note: If the search only produces one result, the stop request page will automatically open. To view the user which entered the request, click “Return to Search” at the bottom of the request page and view the user listed in the search results.) 

Agencies can also view information from the agency stop payment request page in the SFS by running the NY_AGY_STOP_PAYMENT_REQUESTS query. To run the query, navigate to Reporting Tools > Query > Query Viewer and enter the following required fields:

• Business Unit
• Stop Request From and To Date
• Set ID: SHARE
• Bank Code: 10001
• Bank Account: 1202 for “P” checks or 1203 for “W” checks

Stop statuses are as follows: 

Look Up Check Status

Agencies can determine if a single check has been cashed, stopped, staled or escheated by completing the following steps:

• SFS Navigation: Accounts Payable > Review Accounts Payable Info > Payments > Payment.
• Enter the check number in the From Ref ID field and click Search.
• The Payment Date is the date the check was issued out of SFS.
• The Reconcile Date is the date the bank file was reconciled in SFS, which is typically one business day after the check was cashed or stopped at the bank.
• The Payment Status and the Reconciliation Status will tell you if the check has been cashed, stopped, staled or escheated as follows:

Look Up Check Reissuance Status

Agencies can determine if a check has been reissued by completing the following steps:

• SFS Navigation: Accounts Payable > Vouchers > Add/Update > Regular Entry.
• Select Find an Existing Value.
• Enter the Business Unit and Voucher ID into the respective fields and click Search.
• Navigate to the Payments tab.
• On the Payment Information line, click View All.
• Scheduled Payment 1 contains the payment information for the original, cancelled check.
• Additional Schedule Payment rows will identify subsequent cancel/re-issue payment actions as they occur, in chronological order.

ADDITIONAL INFORMATION

Checks Returned by the Post Office (Stale Payments)

If a refund check is returned to OSC as undeliverable by the Post Office, OSC’s Remittance Control Unit (RCU) marks the check as ‘Stale Dated’ in SFS and destroys the check. Agencies are responsible for monitoring the NY_NYTR1652_AGY_QRY (Stale Payments) query and contacting payees for updated information to ensure that all returned checks are replaced, reissued, or cancelled timely. 

To run the NY_NYTR1652_AGY_QRY:

• SFS Navigation: Reporting Tools > Query > Query Viewer
• Enter the ‘From Date’ and ‘End Date’
• SetID: SHARE
• Bank Code: 10001
• Bank Account: 1202 for “P” checks or 1203 for “W” checks

To reissue a check to a new address, the agency must select ‘Close for address change’ in the SFS. The check will be cancelled, the voucher will be closed, and the accounting will be reversed. Once this is completed, the agency must submit a new single payment refund voucher in the SFS with the updated address.

Paid Over Stops

A paid over stop check occurs when a stop payment request has been entered into SFS but could not be completed at the bank due to timing, as the check was cashed the same day as the stop request. In these instances, the stopped transaction will appear as reconciled in SFS, however the payment will be recorded with a new, manually recorded payment line or voucher to correct the accounting and no additional payment will be issued. Agencies will be notified of this by OSC via e-mail to the individual who submitted the stop request in the SFS. The Agency Stop Payment Request page will also be updated to flag the check as a paid over stop.

Check Copies

If a payee never received their check but it shows as paid and reconciled (cashed) in SFS, the agency can complete form AC3337 by checking “Provide Copy of Cashed Check to Agency” and email it to [email protected]. OSC will send the agency a copy of the cashed check to provide to the payee. If the payee declares the check to be cashed fraudulently, follow the forgery claim process below.

Forgery Claims

If a payee declares a check to be fraudulently cashed the agency must update AC 1551 (Affidavit to Support Claim of Forgery Endorsement) with the check information and submit it to the payee. The payee must return the completed form to the agency with a notarized signature.

The agency must then complete form AC 3337 by checking “Submit Forgery Claim to Bank” and email it to [email protected] with a copy of the notarized AC 1551. OSC will forward the affidavit to the issuing bank, who will collaborate with the depositing bank to render a decision on the claim.

• If the bank denies the claim, they will provide the reason for the denial which will be forwarded to the agency. If the payee protests the denial, the agency must email [email protected]. OSC will contact the bank to determine the next step for the payee to take on a case by case basis.
• If the banks determine the claim is a valid forgery, a credit will be applied to the Comptroller’s Refund Account. OSC will notify the agency when the credit has been received. The agency must then notify the payee of the bank’s decision and submit a new single payment voucher through SFS to issue the payee a new refund check.

The fields listed in the following table provide the unique coding to use when submitting a single payment voucher for approved refund forgery claims. The agency's revenue will not be debited for this payment.

Refunds Misapplied at the Depositing Bank

Occasionally a refund check that is deposited by the payee will be misapplied at the depositing bank. The check will show as cashed at the bank and in SFS even though the intended payee did not receive the credit. The depositing bank will recoup the funds from where they were misapplied and credit the Comptroller’s Refund Account. In order to issue the payee a new check the agency must submit a new single payment voucher in SFS upon notification from OSC of the misapplied payment.

The fields listed in the following table provide the unique coding to use when submitting a single payment voucher for misapplied refunds. The agency's revenue will not be debited for this payment.

Deceased Payee

If a check must be replaced due to the death of the intended recipient, the agency must obtain from the next of kin or the estate, the following:

• A completed form AC934 (Next of Kin Affidavit) if the check is not payable to estate.
• A copy of the death certificate.
• A written request to exchange the check.

Once the agency receives this documentation and deems it to be valid for reissuing the check, the agency must cancel the original check by selecting ‘Payee not entitled’ in the SFS. The check will be cancelled, the voucher will be closed, and the accounting will be reversed. Once this is completed, the agency must submit a new single payment refund voucher in the SFS to pay the next of kin.

Uncashed Checks

Pursuant to §102 of the State Finance Law, all refund checks issued out of the Comptroller’s Refund Account that remain uncashed one year from the date of issuance shall be paid into the Abandoned Property Fund. See Chapter XIV.1 - Outstanding Check Outreach and Escheatment of this Guide.
 

Guide to Financial Operations

REV. 06/17/2025