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XIV.1
Outstanding Check Outreach and Escheatment

 

Each year an outreach and escheatment must be completed for all checks that remain uncashed one year after the year of issuance. All checks that remain uncashed after the outreach process must be turned over to the Abandoned Property Fund by the applicable reporting date required by the Office of the State Comptroller’s (OSC) Office of Unclaimed Funds (OUF). NYS issued checks are required to be reported by April 30th each year.

 

Outreach

 

Abandoned Property Law §1422 requires New York State to perform certain payee notification requirements for uncashed checks. OSC performs the outreach for refunds issued out of the Comptroller’s Refund Account and for payroll checks. The Department of Tax and Finance (DTF) Treasury performs the outreach for Vendor, Employee Expense and SSI/SSP checks issued out of the General Checking account. Business Units are responsible for performing the outreach for all checks issued out of their agency sole custody accounts.

 

For checks over $20 that remain uncashed one year after the year of issuance, the State is required to attempt to notify payees:

 

 

For current year outreach dates for Refund, Payroll, Vendor, Employee Expense and SSI/SSP checks see Operational Advisory 8 – State Check Outreach.

 

Replacement Checks due to Outreach

 

When an outreach letter is returned by the payee, it is sent to the agency responsible for the original issuance.

 

Signed outreach letters that are returned by the payee should be treated as a written request for reissuance of a check that agencies would see in the normal course of business.

 

Once a replacement check has been requested due to the outreach process, it is important for agencies to follow the steps below based on which bank account the original check was paid from.

 

 

Escheatment

 

Pursuant to §102 of the State Finance Law, the amounts of all uncashed checks and prepaid cards issued by or on behalf of the State for more than one year from the date of issuance shall be paid into the Abandoned Property Fund. The funds must be turned over by the applicable reporting date pursuant to OUF; April 30th. OSC will complete this transfer for the Comptroller’s Refund Account and payroll checks. DTF Treasury will complete this transfer for Vendor, Employee Expense and SSI/SSP checks. Business Units are responsible for transferring the funds from their agency sole custody accounts once the required information is transmitted to OSC OUF.

 

For current escheatment dates for Refund, Payroll, Vendor, Employee Expense and SSI/SSP checks see Operational Advisory 9 – Current Year Escheatment.

 

Once the proceeds of the uncashed payments for the year have been transferred to OUF, all future claims related to these proceeds shall be referred to OUF.

 

For further information on transferring funds to OUF, please refer to the OUF website at www.osc.state.ny.us/ouf. Questions can be directed to OUF at 1-800-221-9311 or by e-mail to NYSOUF@osc.ny.gov.

 

 

 

 

Guide to Financial Operations

REV. 05/31/2019