VI. Financial procedures

07/06/2018

C. Returned, voided, or lost checks

Checks may be returned to the local branch by the Post Office, if they are undeliverable as addressed, or by the payee because of an incorrect dollar amount. The receipt and disposition of returned checks must be documented.

1. Returned checks

Tracking returned checks. Account for all returned checks on the AFS 260, Post Office or Client Returned Check, per instructions on page 2 of the form.

• Place all returned checks in a locked filing cabinet or a safe;
• Notify the case worker when a check has been returned to the local office.
• Note: The case worker must give written authorization to release a check or to cancel the check.

2. Void returned checks.

Checks may be voided if:

• The check is still in the branch and should not have been issued; or

• The check has been returned to the branch.

The signature must be canceled to void the check. The signature plate custodian will:

• Stamp CANCEL over the seal and signature. DO NOT cover the amount, case number, or other identifying information;

o If there is not a CANCEL stamp available, the signature plate custodian must write VOID with indelible black ink, such as a black Sharpie, across the entire check face;

• The signature portion of the check is removed and destroyed

Send the canceled check to Salem. Canceled checks are returned to Salem Central Office using the form MSC 297, Canceled Check Transmittal form. Complete the MSC 297 as instructed on the form and attach the canceled check to the form.

Mail the completed MSC 297 and checks to:

Department of Human Services

IC/Forgery Services

500 Summer St. NE, E85

Salem, OR 97301-1082

See VI.D. to cancel a revolving fund check.

3. Replacement of lost checks

• Adult Foster Home and homecare worker checks are replaced by the APD Provider Relations Unit; see the CEP Specialist Training Manual;

Payee must complete an MSC 138A, Affidavit Concerning Lost Check form and have his/her signature notarized; see MSC 138A instructions.

Outstanding checks. If the lost check shows as OS (outstanding) on the DHR mainframe screen RCIQ, it can be replaced by the following procedure:

• Obtain a completed MSC 437, Authorization of Cash Payment form;
• Complete an MSC 138A, Affidavit Concerning Lost Check form;
• Call DHS Forgery Services at 503-945-5640 for a payment alert number for the MSC 134A and MSC 437.

o Forgery Services reviews information on the MSC 138A for replacement;

• Mail the original DHS 138A to:

DHS Forgery Services

500 Summer St. NE, E85

Salem, OR 97301

• Note: If the consumer marks they have endorsed the check, it cannot be replaced.

Paid checks. If check shows as PD (cashed) on the DHR mainframe screen RCIQ review and follow procedure DHS-040-003-01.

· Call DHS Forgery Services at 503-945-5640 for a payment alert number and forgery packet;

· DO NOT REPLACE the check.

Forgery Services and the State Police will determine if check was forged. Investigation can take 6-8 weeks. If forgery is determined, Forgery Services will notify appropriate unit to replace.

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