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CANCELLATION REQUIREMENTS
Unavailable checks that are reported to the DO as
lost; stolen; mutilated (to the degree that the payee,
issuing DSSN, or check serial number cannot be
identified); or not received by the payee must be
canceled.
When entitlement to payment exists, an unavailable
check may be replaced by a new check called a
recertified check. Each recertified check must bear a
new check serial number. All recertified checks must
be vouchered and recorded as disbursements.
UNAVAILABLE CHECK CANCELLATION
FORM
All unavailable checks must be canceled by the
submission of an Unavailable Check Cancellation, SF
1184, to DFAS-CL. A typical SF 1184 is shown in
figure 4-5.
The SF 1184 is required for the cancellation of each
unavailable check regardless of the particular
circumstances involved. Whether or not the check was
lost, stolen, mutilated, or not received or whether or not
the payee is entitled to a recertified check, an
unavailable check must be canceled by submission of
an SF 1184.
Even in the case of bulk losses, each original check
must be canceled by the submission of an SF 1184.
DFAS-CL will consolidate the input for submission to
the U.S. Treasury. The U.S. Treasury will send credits
or charges resulting from the receipt of an SF 1184 or
the cashing of a canceled check directly to DFAS-CL.
REPLACEMENT PROCEDURES
DOs may issue recertified checks as replacements
for original checks at any time starting with the
submission of the SF 1184 and continuing, as in the case
of a forged check, until the U.S. Treasury recovers the
proceeds. The DO’s judgment and the circumstances
associated with each unavailable check will govern
when the recertified check is actually issued.
AUTHORIZATION TO ISSUE
RECERTIFIED CHECKS
The U.S. Treasury has delegated the authority to the
DOD to issue recertified checks to replace any check
originally issued by a DOD DO. This authority
includes checks that were lost, stolen, or destroyed both
in transit and after receipt by applicable payees. DOs
ultimately carry out this authority.
Disbursing Officer’s Responsibilities
The authority to issue recertified checks rests solely
with the DO. Before making this decision, a DO must
use good judgment in examining the conditions of each
case. The following are some examples of conditions
the would require a DO to make such decisions:
Unavailable checks with high monetary values
Payees involved in adverse actions that could
result in early discharge or termination
Nonpermanent employees who have no vested
retirement benefits or sustained work history at
the issuing activity
The DO must consider several issues in making a
decision. First, is the payee able to make restitution in
case of double negotiation? Second, can the payee be
contacted as long as 4 months after the reissue of a
recertified check? And third, what is the possibility of
offsetting a double negotiation against money, other
than salary, due the payee? In any case, whether or not
to issue a recertified check is based on the DO’s
judgment. In all cases, the DO is held responsible for
his or her decision.
Conditions for Refusal
The DO must be able to recognize cases in which
the payee must be refused reimbursement for an
unavailable check. A DO must refuse to issue a
recertified or replacement check under the following
conditions:
If the original check was not issued by the same
DSSN issuing the recertified check
If the original check was endorsed by the payee
when it was lost
If the payee of the original check is not entitled
to the proceeds of the check
If the payee died before the original check-issue
date
If the 6-year statute of limitations has passed
If the payee has an outstanding obligation
against which the payment can be offset
If the original check is 12 or more months (over
1 year) old
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