Official Checks and Ordering Process
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Questions and Answers

How many Official Checks can a member obtain for free in a calendar month?

  • Unlimited
  • 3 (correct)
  • 5
  • 2

    • Uncashed Official Checks are considered stale dated after 90 days.

    True

    What must be verified before issuing an Official Check?

    The member's signature and ID.

    Official Checks cannot be made payable to _______.

    <p>Cash</p> Signup and view all the answers

    Match the following terms with their definitions:

    <p>Official Check = Funds are guaranteed unless a stop payment is placed Stop Payment = An exception placed on an Official Check Stale Dated = Considered invalid after 90 calendar days Escheated = Unnegotiated checks after 3 years are turned over to the state</p> Signup and view all the answers

    Which of the following is NOT a method to request Official Checks?

    <p>Via social media</p> Signup and view all the answers

    If a member does not negotiate an Official Check within 90 days, they will receive a notification from the Credit Union.

    <p>True</p> Signup and view all the answers

    What happens to unnegotiated checks after 3 years?

    <p>They are escheated to the state.</p> Signup and view all the answers

    Which of the following checks can be reissued?

    <p>Checks with a status of Issued</p> Signup and view all the answers

    Checks may be stored openly during branch hours.

    <p>False</p> Signup and view all the answers

    What should be done with unused stock during the branch closing process?

    <p>Place in the vault or locked cabinet.</p> Signup and view all the answers

    Official Checks are verified in the ______ Check Manager.

    <p>Symitar</p> Signup and view all the answers

    Which of the following is NOT a step in safeguarding check stock?

    <p>Dispense checks without verification</p> Signup and view all the answers

    Auditing Official Check Stock is required monthly.

    <p>True</p> Signup and view all the answers

    Match the actions with the correct procedures in safeguarding Official Check Stock:

    <p>Checks loaded into the printer = During working hours Newly arrived stock = Opened under dual control Unused stock placed = In vault or locked cabinet Sealed envelopes or bags = Show no signs of tampering</p> Signup and view all the answers

    What should be reviewed when conducting a visual verification of an Official Check?

    <p>Both the front and back of the check.</p> Signup and view all the answers

    Which step involves verifying sufficient funds to cover the check?

    <p>Identify standard procedures</p> Signup and view all the answers

    Members can place stop payments on Official Checks for any reason.

    <p>False</p> Signup and view all the answers

    What is the purpose of the Declaration of Loss form?

    <p>To initiate a stop payment on a lost, stolen, destroyed, or mutilated check.</p> Signup and view all the answers

    Members must sign the transaction receipt using a __________ pad.

    <p>signature</p> Signup and view all the answers

    Match each step of the check disbursement process with its corresponding action:

    <p>A. Verify funds = 1. Create a MARS case for the request B. Run OFAC = 2. Assign case to Operations Services C. Document received item = 3. Print and mail the check D. Disburse the check = 4. Add case comment regarding OFAC finding</p> Signup and view all the answers

    Which of the following must be included on the front of the check?

    <p>Authorized signature(s)</p> Signup and view all the answers

    What action should be taken if the amount exceeds the employee's limit during transaction posting?

    <p>An override is required</p> Signup and view all the answers

    Branch employees may disburse Official Checks without recording the call.

    <p>False</p> Signup and view all the answers

    The back of the check should contain a pre-printed stock number.

    <p>True</p> Signup and view all the answers

    What must members confirm when they sign the file copy of the check?

    <p>They must confirm the 90-day requirement for stop payments, that they received the check, and that the information on the check is accurate.</p> Signup and view all the answers

    What must be endorsed by all parties on the back of the check?

    <p>The check</p> Signup and view all the answers

    The notice on the right side of the front of the check states: '_________ Features included. Details on back.'

    <p>Security</p> Signup and view all the answers

    Which of the following is NOT a characteristic of the front of the check?

    <p>5-line disclosure</p> Signup and view all the answers

    Match the following elements with their correct location on the check:

    <p>Authorized signatures = Front Disclaimer above endorsement lines = Back 5-line disclosure = Back Security warning = Front</p> Signup and view all the answers

    What action should be taken on the Symitar home screen to access the Check Manager?

    <p>Click Navigate &gt; Accounting &gt; Check Manager</p> Signup and view all the answers

    The back of the check contains only one endorsement line.

    <p>False</p> Signup and view all the answers

    What is the first step an employee must take to confirm the Official Check has not been reconciled?

    <p>Use the IC feature in Symitar</p> Signup and view all the answers

    The member must wait 60 days after the original issue date before the Credit Union can reissue the check.

    <p>False</p> Signup and view all the answers

    What must be included when presenting a Declaration of Loss to the manager or supervisor?

    <p>A printout of the IC screen and a Verification of Deposit.</p> Signup and view all the answers

    To reprint an Official Check through Symitar, the check status must first be reset to ______.

    <p>Not Issued</p> Signup and view all the answers

    Which check type should be selected when entering information for a Declaration of Loss?

    <p>Cashiers Check</p> Signup and view all the answers

    Match the step in the reissue process with its description:

    <p>Click EASE OpCon Self Service = Access the reissue function Enter check number = Specify which check to reissue Check your email = Receive confirmation of the reissue Click Submit = Initiate the reissue process</p> Signup and view all the answers

    Second-party statements and third-party indemnification do not require discussion with a manager.

    <p>False</p> Signup and view all the answers

    What risks are associated with third-party indemnification when declaring a loss for an individual?

    <p>Additional risk due to possible fraud or misrepresentation.</p> Signup and view all the answers

    What should you do if the check number is not valid in Check Manager?

    <p>Contact your manager or Fraud &amp; Transaction Analysis</p> Signup and view all the answers

    Check numbers for checks issued by Accounting begin with the prefix 00.

    <p>False</p> Signup and view all the answers

    What is indicated if a check status is Escheated?

    <p>The funds are being sent to the state as unclaimed property.</p> Signup and view all the answers

    If a member's membership is closed, Operations Services may be asked to print an __________ check.

    <p>Official</p> Signup and view all the answers

    Match the prefix to the corresponding issuing department:

    <p>01 = Accounting 00 = Any other department</p> Signup and view all the answers

    Which statement about checking for check status is accurate?

    <p>Only valid statuses are Issued or Escheated.</p> Signup and view all the answers

    To process an Official Check, employees must follow specific steps including entering predefined comments.

    <p>True</p> Signup and view all the answers

    The GL that must be used to process the __________ needs to be provided in the request.

    <p>offset</p> Signup and view all the answers

    Study Notes

    Official Checks

    • Credit Union offers Official Checks; funds are debited when disbursed, except for stop payments.
    • First three checks per calendar month are free; subsequent fees are per fee schedule.
    • Checks are payable to individuals, businesses, or entities. Not payable to cash, bearer, or "for deposit only"; payee field cannot be blank.
    • Checks are valid for 90 days. Those not negotiated within 90 days are considered stale-dated.
    • Payment Services reviews unnegotiated checks and notifies members.
    • Members can reissue checks or have funds credited within 3 years; otherwise, unclaimed checks are escheated to the state.
    • Credit Union is liable if payment is refused (stop payments are exceptions).

    Official Check Order Process

    • Members can request checks via phone, mail, in person, or secure e-mail.
    • Employees follow these steps: identify, process, document, and disburse.
    • Verify sufficient funds, perform OFAC checks, create a case, debit the account, potentially assign task to operations for printing and mailing, attach/index documents, and print/mail.
    • Employees must follow transaction codes (KD or KO); overrides are needed for amounts exceeding employee limits.
    • Branch employees must record member signatures to acknowledge 90-day stop payment requirement, confirm check receipt, and ensure accuracy of check information.
    • Employees may disburse checks for phone requests if MAAP is performed and the call is recorded.

    Official Check Stop Payments

    • Stop payments are only placed as exceptions: lost, stolen, destroyed, or mutilated checks.
    • Members complete Declaration of Loss forms (available in PDF or DocuSign/Symitar). -Must verify the check is not reconciled, re-issued, or escheated.
    • Understand the payee and reason for declaration.
    • Individual payees with third-party risk, high-value companies with potential double payments, and member identification are factors for consideration.
    • Second-party statements, and third-party indemnification are approved on a case-by-case basis
    • Management should discuss matter with member and include a rationale for exceptions, and include documents for verification.
    • Typical wait is 90days before reissuance.

    Reissuing Official Checks

    • To reissue an official check, first reset 'not issued' status via OpCon Self-Service module.
    • Then, follow these steps in Symitar: Click Reissue Checks, Enter check number, enter email address for verification and click Submit, and click OK on completed screen.
    • Checks with numbers that don't exist, issued more than 4 days prior, and not issued by the department cannot be re-issued.
    • Symitar support should be contacted if the "Not Found" or "Can't Reissue" message is returned.

    Safeguarding Official Checks Stock

    • Branches manage a working stock of checks; load checks into printer during work hours.
    • Unused stock is moved to the vault or locked cabinet during closing.
    • Ideally, new stock is opened by two people and placed into sealed envelopes, signed, and dated (25, 50, or 100 per sealed envelope).
    • Stock is kept in secure location (vault/locked cabinet)
    • Checks are counted and recorded monthly

    Auditing Official Check stock

    • Working and vault stock is counted monthly during a cash and negotiable items audit.
    • Starting number, ending number, and total are recorded.
    • Sealed envelopes showing no signs of tampering are not necessary to open. Checks can be stored 25, 50, or 100 per sealed envelope

    Identifying Official Checks

    • Two methods: visual verification and verification in Symitar Check Manager.
    • Always verify checks in Symitar. Visual verification alone is not sufficient.
    • Front of check needs Credit Union information (brand, address, toll-free #, website), 'Pay' as printed check feature, and a security warning.
    • Back of check needs 5-line disclosure, disclaimer above the endorsement lines, and 2 endorsement lines.
    • Checks include authorized signatures following policy, security features, and a pre-printed stock number

    Identifying Official Checks in Symitar

    • Follow steps in Symitar to use the "Search for Check" screen
    • Use Transaction code IC, then next.
    • Enter check number in "Lookup For" field.
    • Checks issued using prefixes (01 or 00) depending on department.

    Operations: Printing Official Checks using a GL

    • If a member's account is closed, Operations Services may print and mail an official check with member information to their last known address.
    • Cases include member name, address, check amount, GL, and offsetting letter.
    • Employees process in Symitar, enter information, print letter and mail check to member.

    Official Checks: Vendor Inventory Control

    • American Solutions for Business (ASB) manages paper stock for official checks.
    • Departments/branches order supplies through ASB link on The Hub.
    • ASB handles orders and ships.
    • Reporting discrepancies to ASB (email) is handled by receiving branch. Receiving branch signs and emails a packing slip for verification of receipt to Operations ASB Reconciliation.
    • Operations Services reviews the acknowledgment and files documentation.

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