Subject:

State Check Outreach

Guidance:

Payees that receive State checks for $20.00 or more and do not negotiate those checks within one year of issuance will receive a State Check Outreach letter advising them to negotiate the check or request a replacement check from the issuing Agency. These letters notify payees that the proceeds of an uncashed check will be turned over to the OSC Office of Unclaimed Funds if action is not taken to negotiate the payment or seek a replacement check. Historically these letters have been sent annually for the preceding calendar year.

Beginning February 2025, payees will receive the outreach letter approximately 12 months after the check was issued. This monthly processing cycle will result in Agencies receiving requests to replace or cancel checks throughout the year rather than once a year. The new process will spread out the volume of letters making it easier for Agencies to manage their workloads. 

Second outreach letters will be sent via certified mail for any uncashed check greater than $1000 in February of the second year following check issuance.  This letter notifies the payee to negotiate the check or request a replacement check from the issuing Agency. If these steps aren’t taken, the funds will be turned over to the OSC Office of the Unclaimed Funds on April 30th. 

It is important that Agencies reissue any checks due to recipients or cancel any inappropriate payments upon returned letter from payee so that recipients do not receive a second letter. Once the funds have been escheated to the Office of Unclaimed Funds no future Agency action will be allowed.

For more information regarding the escheatment process see the Guide to Financial Operations, Chapter XIV Section 1 – Outstanding Check Outreach and Escheatment.

Information regarding the standard check replacement process for Comptroller’s Refund Account checks can be located in Chapter XII Section 9.G – Reissuing or Cancelling a Refund Check.

Information regarding the standard check replacement process for General Checking Account checks can be located in  Chapter XII Section 9.C – Reissuing or Cancelling a Vendor, Employee Expense, or SSP Check.