106 Check Distribution Policy

Date: May 1, 2018

Check Pick Up: As of 5/1/2018, Accounting Services will only release checks to the payee or a certified check custodian. Any person requesting a check must present a valid photo ID at the time of pick up. To request a check for pick up by a custodian, a signed Check Custody Agreement must be submitted with the payment request.

Check Custodians and the Check Custody Agreement: Staff may become a check custodian for a check or set of checks by submitting a signed Check Custody Agreement. An agreement or copy of the agreement must be submitted with each payment request (DP, PIR, Invoice, and Payment Upload). This handling exception requires written justification explaining the business reason(s) for doing so in addition to the authorizing signature of the Divisional CFO. Check custodians are personally responsible for check security and safekeeping until the check is distributed to the payee. A check custodian alternate may also be named.

Check Distribution Log: Each custodian is provided with a Check Distribution Log with their checks. The checks are counted to confirm all checks were received at the department and signed off on the log. As checks are distributed, the payee should sign the log and the custodian or alternate should write their name and the date distributed. Checks that are mailed should have “mailed” written in the payee signature field. Check Distribution Logs must be returned to Accounting Services within 30 days of the check date.

Check Intermediary Form: In the event a check custodian must hand off a check to an intermediary custodian for delivery to a payee, a Check Intermediary Form must be completed by the check custodian, intermediary custodian, and signed by the payee for each check. Check Intermediary Forms are returned to Accounting Services with the Check Distribution Log.

Check Custodian Audit: There will be an annual audit of check custodians to review proper timeframe from check pick up date to cashed, authorized chain of custody of the check, proper secure storage, documentation of checks given out, internal controls and violation of agreement and fraud. A sample of 5 checks will be reviewed as well as department check handling procedures.


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