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magnetic-ink-charactacter recognition field. Any box of
check stock that bears evidence of tampering must be
opined and the checks counted individually. If any
checks are missing or defective, the procedures
prescribed in the Department of Defense Financial
Management Regulation (DODFMR) — Disbursing
Policy and Procedures, Volume 5, must be followed.
DISTRIBUTION AND
CANCELLATION OF
GOVERNMENT CHECKS
Normally, a government check is prepared and
issued to the payee. The disposition of the majority of
government checks will fall in this category. At times,
however, some government checks issued to payees
must be canceled.
NORMAL DISTRIBUTION PROCEDURES
Afier preparation, a government check is delivered
to its payee or to a designated address by regular mail.
That is the normal, basic distribution process.
Registered mail is not necessary for this process. In the
normal distribution process, however, all DOs must
make certain payroll checks are handled according to
the following regulations:
Mailed no earlier than 3 workdays before payday
Dated no earlier than the day the pay is due
NOTE: Hand distribution of payroll checks prior
to payday is prohibited.
CANCELLATIONS OF GOVERNMENT
CHECKS
Previously, you learned that a government check is
canceled because it is no longer negotiable by the payee.
You also read about the different categories of canceled
checks. In the following paragraphs, you will read
about the cancellation processes for these checks.
Spoiled Checks
As explained previously, a spoiled check is a check
that is replaced by a control check bearing the same
disbursing symbol and serial number. A check maybe
classified as spoiled and replaced with a control check
under the following conditions:
It represents a valid payment.
It is in the possession of the DO.
It was misprinted or mutilated during the issue
process.
It was returned by the payee as uncashable
because of a defect in the check itself.
At times, a payee may present a large enough
portion of a mutilated check so that the check number,
issuing symbol, date, and amount can be positively
identified. In these cases, the check should be treated
as a spoiled check.
When a check is spoiled, no reference will be made
on the record of checks drawn that a control check, per
se, has been issued. That is because the serial number
of the spoiled check will be the same as the serial
number of the control check and that particular serial
number will already appear on the record of checks
drawn.
All spoiled checks must be rendered
non-negotiable. This is done by typing or stamping
the following statement on the face of the
check: S P O I L E D - NOT NEGOTIABLE;
REPLACEMENT ISSUED UNDER CONTROL
NUMBER
DOCUMENTATION.— The DO must use a
Spoiled/Control Check Record, DD Form 2661, to
mantain a record of spoiled checks and the control
checks used to replace them. The DD 2661 will be
retained for 14 months from the check issue date, after
which time it may be destroyed. An example of a DD
2661 is shown in figure 4-2.
DISPOSITION.— A (least once each quarter, the
DO must destroy all spoiled checks locally by shredding
or incinerating them.
Method.— If the checks are destroyed by
shredding, the fragments can be no larger than .25 inch
in width and 3.5 inches in length. If they are destroyed
by burning, the checks must be completely burned.
Certificate of Destruction.— Whenever spoiled
checks are destroyed, a Certificate of Destruction must
be prepared in an original and one copy. It must include
the following information:
The complete mailing address of the disbursing
office
The date and method of destruction
The DSSN
The serial number of each check
4-6
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