Each year an outreach and escheatment must be completed for all checks that remain uncashed one year after the year of issuance. All checks that remain uncashed after the outreach process must be turned over to the Abandoned Property Fund by the applicable reporting date required by the Office of the State Comptroller’s (OSC) Office of Unclaimed Funds (OUF). NYS issued checks are required to be reported by April 30th each year.

Outreach

Abandoned Property Law §1422 requires New York State to perform certain payee notification requirements for checks that have gone uncashed for one year or more. 

OSC performs outreach for refund checks issued out of the Comptroller’s Refund Account and for payroll checks. The Department of Taxation and Finance (DTF) Treasury performs the outreach for Vendor, Employee Expense and SSP checks issued out of the State’s General Checking account. These notification letters are sent to the payee directly and require no agency action.

Business Units are responsible for performing the outreach for all checks issued out of their agency sole custody accounts.

Notification Process

For checks with a value over $20 that remain uncashed for one year after issuance, the State is required to attempt to notify the payee:

• by first class mail, no less than 90 days prior to the applicable reporting date; April 30^th of the second year following the calendar year of issuance. The letter notifies the payee that the proceeds of the uncashed check(s) will be turned over to the Abandoned Property Fund unless the check is cashed, or a claim is made to the issuing agency for a replacement check.
  First class mailings are not required where:
  • the agency does not have a valid address for the payee, or
  • the agency can demonstrate that the only address on file is not the payee’s current address.
• by certified mail – return receipt requested, a follow up notification mailing for any check with an amount greater than $1,000. This must be sent to a payee not less than 60 days prior to the applicable reporting date; April 30^th of the second year following the calendar year of issuance.
  Certified mailings are not required if:
  • the check is claimed by the payee since the original notification, or
  • the first-class mailing notification attempt was returned as undeliverable by the Post Office.

For additional information on the outreach for Refund, Payroll, Vendor, Employee Expense and SSP checks see Operational Advisory 8 – State Check Outreach.

Replacement Checks due to Outreach

When an outreach letter is returned by the payee, it is sent to the agency responsible for the original issuance.  The address used to notify the agency responsible is the address associated with the department code used in the original voucher authorizing payment. It is the responsibility of each business unit to ensure the addresses of all associated departments are current in SFS.  Information on updating the Departmental addresses can be obtained by contacting the SFS Helpdesk.

Signed outreach letters that are returned by the payee should be treated as a written request for reissuance of a check that agencies would see in the normal course of business.

Once a replacement check has been requested due to the outreach process, it is important for agencies to follow the steps below based on which bank account the original check was paid from.

• Comptroller’s Refund Account Outreach
  For the reissuance of an uncashed check, agencies must follow the guidance prescribed in Chapter XII, Section 9.G - Reissuing or Cancelling a Refund Check.
• Payroll Account Outreach
  OSC will reissue upon receipt of a signed outreach letter from the payee.
• Vendor, Employee Expense or SSP General Checking Account Outreach
  For the reissuance of an uncashed check, agencies must follow the guidance prescribed in Chapter XII, Section 9.C - Reissuing or Cancelling a Vendor, Employee Expense or SSP Check.
• Agency Sole Custody Account Outreach
  For the reissuance of an uncashed check, agencies must follow the guidance prescribed by their specific agency policies.

Escheatment

Pursuant to §102 of the State Finance Law, the amounts of all uncashed checks and prepaid cards issued by or on behalf of the State for more than one year from the date of issuance shall be paid into the Abandoned Property Fund. The funds must be turned over by the applicable reporting date pursuant to OUF; April 30^th of the second year following the calendar year of issuance.

OSC will complete this transfer for the Comptroller’s Refund Account and payroll checks. DTF Treasury will complete this transfer for Vendor, Employee Expense and SSP checks. 

Business Units are responsible for transferring the funds from their agency’s sole custody accounts once the required information is transmitted to OSC OUF. Each business unit which has been authorized to open and maintain a sole custody account must:

1.  notify recipients of uncashed checks, 
2.  report abandoned property to OSC Office of Unclaimed Funds and 
3. transfer those monies from the sole custody account to the unclaimed property fund, in accordance with the above information and OUF procedures.

For current escheatment dates for Refund, Payroll, Vendor, Employee Expense and SSP checks see Operational Advisory 9 – Current Year Escheatment. Escheatment of Agency Sole Custody Funds issued during the applicable calendar year should follow this same timeline

Once the proceeds of the uncashed payments for the year have been transferred to OUF, all future claims related to these proceeds shall be referred to OUF.

For further information on transferring funds to OUF, please refer to the OUF website at https://www.osc.state.ny.us/unclaimed-funds. Questions can be directed to OUF at the Contact Us web link /unclaimed-funds/claimants/contact-us.

Guide to Financial Operations

REV. 01/14/2025