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SCHEDULE OF CANCELED OR
UNDELIVERED CHECKS
The collection voucher used for an undeliverable
check is the Schedule of Canceled or Undelivered
Checks, SF 1098. On the SF 1098, each undeliverable
check will be credited to the appropriation and subhead
originally charged.
Required Information
The SF 1098 must be prepared in triplicate. For
each undeliverable check, the following data should be
shown in the appropriate space provided in the body of
the SF 1098:
Month and year of issue
Check serial number (and DSSN if other than the
DSSN shown in the heading of the form)
Name of payee
Amount of check
Accounting data credited
The spaces at the bottom of the SF 1098 will be left
blank.
Distribution of the SF 1098
The SF 1098 is prepared in triplicate. The original
and one copy of this form will be submitted with the
financial returns. The remaining copy will be retained.
Accounts Involved
If the proper appropriation to be credited cannot be
determined immediately, the amount of the check
should be collected into suspense account 17F3875.
The SF 1098 should include all the information
available about the identity and location of the payee of
the check. If after 1 year the appropriation is still not
determinable, the funds will be transferred to Treasury
miscellaneous receipt account 171060.
Claim Processing
Claims for undeliverable checks that were canceled
will be paid by the disbursing office that made the
collection. The disbursement will be made on an SF
1034 and charged to the appropriation that was charged
on the SF 1098. Reference will be made to the original
check by serial number; amount; DSSN; and the month,
year, and account in which the undeliverable check was
collected. A record of the claim and disposition shall
be entered on the DD 2658.
CUSTODY PROCEDURES WHEN
DISBURSING OFFICERS ARE
DETACHED
When a DO is detached without a relief, special
procedures are associated with the custody and
disposition of undeliverable checks at the time of
detachment.
When a DO is detached and disbursing operations
for the ship or activity are assumed by another ship or
activity, the successor activity will assume custody of
the undeliverable checks for processing.
When a DO is otherwise detached without a relief,
such as in the case of the decommissioning of a ship,
the undeliverable checks will be taken up as a collection
and deposited without regard to the 60-day holding
period. The record of undeliverable checks will be
turned over to the office designated to settle the
accounts of the detached DO.
UNAVAILABLE CHECK
CANCELLATIONS
An unavailable U.S. Treasury check is defined as a
properly vouchered and issued check that is not held by
the DO or the payee. As a senior DK, you should be
able to identify some specific requirements involved in
the cancellation of unavailable checks. You should be
especially aware of the requirements involving the issue
of replacement checks.
TIME LIMITS
The following time limits apply to the cancellation
of unavailable checks and claims by payees for
replacement checks:
The payee must report the loss, theft, or
mutilation within 6 years from the date of issue or the
claim is barred by the statute of limitations for claims
against the government.
When the original check is more than 1 year old,
certain procedures will be followed for its cancellation.
(We discuss these procedures at the end of this chapter.)
When the original check is less than 1 year old,
specific procedures will be used for its cancellation and
replacement. We examine these conditions in greater
detail in the following sections.
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