* February 2019 VOLUME 5, CHAPTER 7: “U.S. TREASURY …

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Financial Management Regulation

Volume 5, Chapter 7 * February 2019

VOLUME 5, CHAPTER 7: "U.S. TREASURY CHECKS"

SUMMARY OF MAJOR CHANGES All changes are denoted by blue font.

Substantive revisions are denoted by an asterisk (*) symbol preceding the section, paragraph, table, or figure that includes the revision.

Unless otherwise noted, chapters referenced are contained in this volume.

Hyperlinks are denoted by bold, italic, blue, and underlined font.

The previous version dated January 2017 is archived.

PARAGRAPH All

070301

070301 070301

EXPLANATION OF CHANGE/REVISION Updated hyperlinks and formatting to comply with current administrative instructions.

Removed Government Printing Office (GPO) Form 2431, Print Order-Department of the Treasury Checks and Proofs. This form is obsolete. Updated the paragraph to reflect the current form(s) to submit for Treasury check orders.

Updated the paragraph to change the minimum quantity of check orders from 1,000 to 100 per the GPO guidance.

PURPOSE Revision

Deletion

Revision Revision

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Financial Management Regulation Table of Contents

Volume 5, Chapter 7 * February 2019

0701 GENERAL ..................................................................................................................... 6

070101. 070102. 070103.

Overview .............................................................................................................. 6 Purpose ................................................................................................................. 6 Authoritative Guidance ........................................................................................ 6

0702 POLICY ......................................................................................................................... 6

070201. 070202. 070203. 070204.

Drawing and Dating Checks ................................................................................ 6 Negotiability......................................................................................................... 7 Evidence of Payment............................................................................................ 7 Federal Nontax Payments .................................................................................... 8

0703 PROCUREMENT OF TREASURY CHECKS ............................................................. 8

*070301. 070302. 070303. 070304. 070305. 070306. 070307.

Ordering ............................................................................................................... 8 Check Types......................................................................................................... 8 Check Features ..................................................................................................... 9 Emergency Checks............................................................................................. 10 Receipt of Treasury Checks ............................................................................... 10 Transfers Between Disbursing Officers ............................................................. 11 Security, Storage, and Issuance of Blank Checks .............................................. 11

0704 ISSUANCE OF TREASURY CHECKS ..................................................................... 13

070401. 070402. 070403. 070404. 070405.

Check Preparation .............................................................................................. 13 Check Print Requirements.................................................................................. 13 Erasures and Alterations .................................................................................... 15 Record of Checks Issued .................................................................................... 15 Supporting Documents....................................................................................... 15

0705 CHECK SIGNING MACHINES ................................................................................. 15

070501. Machine Specifications ...................................................................................... 15 070502. Signature Media ................................................................................................. 16

0706 PROMPT DELIVERY OF CHECKS .......................................................................... 18

070601. 070602. 070603. 070604. 070605.

General ............................................................................................................... 18 Safeguarding and Handling................................................................................ 18 Delivery by Mail ................................................................................................ 19 Outside the Continental United States (OCONUS) ........................................... 19 Delivery by Designated Third Parties ................................................................ 20

0707 EXCHANGE-FOR-CASH CHECKS.......................................................................... 21

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Volume 5, Chapter 7 * February 2019

070701. 070702. 070703. 070704. 070705.

General ............................................................................................................... 21 Preparation and Handling................................................................................... 21 Cash Belonging to Deceased or Missing Persons .............................................. 21 Exchange-for-Cash Checks Returned as Not Required ..................................... 22 Exchange-for-Cash Checks Lost, Stolen, or Destroyed..................................... 22

0708 CHECK ISSUE DISCREPANCIES ............................................................................ 23

070801. 070802. 070803. 070804. 070805. 070806. 070807. 070808. 070809. 070810.

Adjustment of Duplicate Checks ....................................................................... 23 FMS Form 5206, Advice of Check Issue Discrepancy...................................... 23 SF 1219, Statement of Accountability Adjustments .......................................... 24 Overdrafts........................................................................................................... 25 Underdrafts......................................................................................................... 26 Discrepancies ..................................................................................................... 28 Disbursing Officer Requested Adjustment to the Check Issue Detail ............... 28 Erroneous Information Reported on the FMS 5206........................................... 29 Relief of Liability............................................................................................... 29 Internal Control Report for FMS Forms 5206 ................................................... 29

0709 SPOILED AND VOIDED CHECKS........................................................................... 30

070901. 070902. 070903. 070904.

Spoiled Checks................................................................................................... 30 Voided Checks ................................................................................................... 31 Storage................................................................................................................ 31 Disposition ......................................................................................................... 32

0710 AVAILABLE CHECK CANCELLATIONS .............................................................. 32

071001. 071002. 071003. 071004. 071005. 071006.

General ............................................................................................................... 32 Exceptions .......................................................................................................... 32 Undeliverable Checks ........................................................................................ 33 SF 1098, Schedule of Canceled or Undelivered Checks.................................... 34 Disposition of Canceled Available Checks........................................................ 34 Claims for the Proceeds of Canceled Available Checks .................................... 35

0711 UNAVAILABLE CHECK CANCELLATIONS ........................................................ 35

071101. 071102. 071103. 071104. 071105. 071106. 071107. 071108.

General ............................................................................................................... 35 DD Form 2662, Recertified Payment Register .................................................. 36 SF 1184, Unavailable Check Cancellation......................................................... 36 Claims of Non-receipt, Destruction, Loss, or Theft ........................................... 37 DD Form 2660, Statement of Claimant Requesting Replacement Check ......... 37 Daily Advice of Status (DAS) ............................................................................ 38 Payments, Accounting Claims, and Enhanced Reconciliation System.............. 39 Authorization to Issue Recertified Payments ..................................................... 39

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Financial Management Regulation Table of Contents (Continued)

Volume 5, Chapter 7 * February 2019

071109. 071110. 071111. 071112. 071113. 071114. 071115.

Accounting for Recertified Payments ................................................................ 41 Preparation and Disposition of Replacement Checks ........................................ 44 Check Forgery Insurance Fund (CFIF) .............................................................. 45 Processing Forgery Claims ................................................................................ 45 Collections of Double Negotiations ................................................................... 47 Relief of Liability for Uncollectible Illegal or Improper Payments................... 48 Separation of Duties ........................................................................................... 48

0712 TREASURY CHECKS CANCELED UNDER LIMITED PAYABILITY ................ 49

071201. 071202. 071203. 071204. 071205. 071206. 071207. 071208.

General ............................................................................................................... 49 Treasury Check Payability ................................................................................. 51 Treasury Check Claimability ............................................................................. 51 Limited Payability Check Cancellation Process ................................................ 51 Reversals of Limited Payability Cancellation Credits ....................................... 51 Accounting for Limited Payability Cancellation Credits or Reversals .............. 52 Claims of Nonpayment of the Underlying Obligation....................................... 53 Claim Processing................................................................................................ 54

0713 HOLDER-IN-DUE-COURSE ..................................................................................... 55

071301. 071302. 071303.

General ............................................................................................................... 55 Processing Holder-in-Due-Course Claims ......................................................... 55 Lost-in-Transit Check Procedure ....................................................................... 56

0714 CHECK ISSUE REPORTING..................................................................................... 56

071401. 071402. 071403. 071404. 071405. 071406. 071407.

General ............................................................................................................... 56 Submission Requirements .................................................................................. 56 Disbursing Office Responsibility for Quality of Data Submitted ...................... 57 Voided Checks ................................................................................................... 58 Checks Issued Report (Report 72) ..................................................................... 58 Check Issue Reconciliation ................................................................................ 59 SF 1179, Month End Check Issue Summary ..................................................... 61

0715 CHECK ISSUE ADJUSTMENTS............................................................................... 62

071501. SF 1219 Reporting ............................................................................................. 62 071502. Error Adjustments .............................................................................................. 62

Figure 7-1. FMS Form 5206, Advice of Check Issue Discrepancy ......................................... 63

Figure 7-2. OF 1017-G, JV for Prior Month Checks Issued .................................................... 64

Figure 7-3. OF 1017-G, JV for Check Issue Overdraft ............................................................ 65

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Financial Management Regulation Table of Contents (Continued)

Volume 5, Chapter 7 * February 2019

Figure 7-4. Notification of Check Issue Correction ? D.O. Requested.................................... 66

Figure 7-5. Sample Certificate of Destruction ......................................................................... 67

Figure 7-6. Sample Affidavit and Indemnity Agreement for Lost Treasury Check ................ 68

Figure 7-7. Checks Issued Report - Report 72 ......................................................................... 69

Figure 7-8. Comparison of Checks Issued ? Detail Reported .................................................. 71

Table 7-1. Check Issue Discrepancies ...................................................................................... 73

Table 7-2. DO's Check Issue Reporting and Check Reconciliation Checklist......................... 74

Table 7-3. DFAS Sites' Responsibilities for Check Issue Reporting and Reconciliation........ 75

Table 7-4. Samples of Corrective Actions for Check Issue Discrepancies .............................. 76

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