Supplier Checks - Stop Payment/Stale Dated | KCTCS

Administrative Procedures

Supplier Checks - Stop Payment/Stale Dated

Policy Number: 5.4.24-P

Current Effective Date: 09/01/2017

Original Effective Date: 07/01/2010

Revision Dates: 07/01/2010, 07/01/2013, 09/01/2017

Revision Number: 3

Revision Summary: Prior Business Procedure 4.27

Responsible Official: Director of Procurement to Payment

References:

1. Purpose

To address stop payment and stale dated check reissuance for students, suppliers, and non-employees.

2. Scope

This procedure applies to all KCTCS employees.

3. Stop Payments

3.1

Stop payment requests cannot be reversed once they are submitted.

3.2

Stop payment requests should not be made on checks less than 14 days old from the issue date.

3.3

The following steps are required to stop a payment for a check that has been issued to a student, supplier, or non-employee. 

  1. The business unit will notifyKCTCS Office of Procurement to Payment Services to implement a stop payment and provide the following information:
    1. Payee
    2. Check number to have payment stopped.
    3. Date and amount of the check. 
    4. Reason the stop payment has been requested.
  2. KCTCS Office of Procurement to Payment Services will work withKCTCS Office of General Accounting Services to process the stop payment and add documentation toPeopleSoft.
    1. Accounting entries are automatically created in PeopleSoft for stop payments. 
  3. Reissued checks, if required, will be processed as follows: 
    1. If the original payment method was ACH, the reissue payment will be changed to a check, until banking information is updated.
    2. Upon updating banking information, all future payments will revert back to the ACH method.
    3. If the reissued check was previously escheated, the check will be reissued using the chartfield string of 21000, 44300, 01, 700020, 01000, 00.

4. Stale Dated Checks

4.1

After 180 days of non-activity on issued checks, KCTCS Office of General Accounting Services will consider these checks to be stale dated.

  1. On the 15th of the month, KCTCS Office of General Accounting Services will prepare a list of outstanding vendor checks with issue dates greater than 180 days and forward the list to KCTCS Office of Procurement to Payment Services.
  2. KCTCS Office of Procurement to Payment Services will contact the vendor and let KCTCS Office of Financial Services know if those checks are ready to be stale dated.
  3. KCTCS Office of General Accounting Services will void the checks in PeopleSoft. 
  4. KCTCS Office of General Accounting Services will forward the list of stale dated checks to the KCTCS Office of Treasury Services, which will then void the stale dated checks with the banking institution.
  5. KCTCS Office of General Accounting Services records escheated checks semi-annually to account 44300.