Administrative Procedures

Lost or Stolen Payroll Funds

1. Purpose

This procedure outlines the process for reporting lost or stolen payroll checks, requesting replacement of lost or stolen funds, and electronic direct deposit breach protocol.

2. Scope

This procedure applies to all KCTCS employees.

3. Reporting

3.1

Lost or Stolen Checks:

1. Lost or stolen payroll checks are to be reported immediately and in writing to the local payroll office. The local payroll office will also report the loss to the KCTCS Office of Payroll Services immediately and in writing.

4. Requesting Fund Replacement

4.1

Replacing lost or stolen funds: 

1. A signed stop payment form shall be sent to KCTCS Office of Payroll Services.
   
   
2. A stop payment will be issued.
   
   
3. If the check has not been cashed, a replacement check will be issued to the employee and will be sent to the college business office unless otherwise directed.
   
   
4. If the check has been cashed, the employee shall file a police report and provide a copy to KCTCS Office of Payroll Services.
   1. KCTCS Treasury Services will submit a request to KCTCS’s bank for investigation. 
   2. After the bank has investigated the claim, if the employee is found faultless, funds will be returned to KCTCS and a replacement check will be issued to the employee.

5. Direct Deposit

5.1

Fraudulent activity resulting in a misdirected deposit:

1. If employees know or suspect that their direct deposit account information has been compromised resulting (or potentially resulting) in their payroll deposit being diverted away from their account:
   1. Employees shall:
      1. Notify their local payroll department immediately, who will contact KCTCS Office of Payroll Services and report the incident. 
      2. File a police report on the potential fraudulent misdirection of funds and provide a copy of the report to KCTCS Office of Payroll Services.
      3. Immediately reset their KCTCS PeopleSoft login credentials.
   2. KCTCS Office of Payroll Services will:
      1. Report the incident to KCTCS Technology Solutions, the KCTCS Office of General Counsel, and KCTCS Audit Services. 
      2. Request a recall of the payment in an attempt to recover the funds. 
      3. Immediately deactivate the employee’s direct deposit account until updated information is provided and KCTCS’s administrative system is confirmed.
      4. Report the loss of funds to the KCTCS Director of Asset Management and Space Utilization to request reimbursement from the insurance carrier when applicable.
         
         
2. If KCTCS is able to recover the employee’s payroll funds via the recall process, a paper check will be issued to the employee for the amount of the funds recalled.
   
   
3. Exceptions regarding issuance of a paper check to the employee for the funds that were misdirected and not recovered are to be requested through the KCTCS Vice President for Administrative Services.