Subject:

Reissuing Fraudulently Cashed Checks

Reference:

Guide to Financial Operations (GFO), Chapter XII.9.C –Reissuing or Cancelling a Vendor, Employee Expense, or SSI/SSP Check

Guidance:

A vendor may request New York State reissue a check because the check was stolen and cashed by a party other than the payee. In such instances, the vendor must complete an affidavit. The paying and cashing banks will review the affidavit and collaborate to render a decision on the claim. If the banks determine the claim is a valid forgery, a check will be mailed to New York State Treasury.

NYS Treasury will notify the agency when the check has been received so the agency can submit a refund of appropriation. Agencies must submit the refunds of appropriation immediately upon notification. Once the agency sees the refund of appropriation has been approved, the agency should repay the vendor as soon as possible with a new voucher through SFS to ensure the vendor receives its money timely. For more information, please refer to the Guide to Financial Operations, Chapter XII, Section 9.C –Reissuing or Cancelling a Vendor, Employee Expense, or SSI/SSP Check.