Chevron Federal Credit Union Official Checks PDF

Official Checks The Credit Union offers Official Checks. Accounts are debited at the time Official Checks are disbursed, so payees are guaranteed the funds unless a stop payment has been placed as an exception. Contents Ordering Official Checks 2 Auditing Stock...

Official Checks The Credit Union offers Official Checks. Accounts are debited at the time Official Checks are disbursed, so payees are guaranteed the funds unless a stop payment has been placed as an exception. Contents Ordering Official Checks 2 Auditing Stock 4 Stop Payments 3 Identifying Official Checks 5 Reissuing Official Checks 4 Printing from a GL 7 Safeguarding Stock 4 Vendor Inventory Control 7 The Basics The first 3 Official Checks in a calendar month are free. See the Fee Schedule for fees assessed after the first 3 Official Checks. Check Uncashed Account debited disbursed Stale dated for 90 days Official Checks may be made payable to a natural person(s), business, or entity. Checks made payable to a non-member are subject to OFAC verification. Official Checks cannot be made payable to Cash, Bearer, or For Deposit Only. The payee field may not be left blank. Official Checks are valid for 90 calendar days. Checks not negotiated within 90 days are considered stale dated. Payment Services periodically reviews unnegotiated checks and notifies members by letter. Members may request to reissue the check or credit the funds back to their account. After 3 years, unnegotiated checks are escheated to the state. Official Checks are the obligation of the Credit Union, and liability provisions apply if the Credit Union refuses payment of an Official Check. Stop payments are only placed as exceptions – see page 3. Members must be informed of this at the time of disbursal. 1 33.07.00 Created: 10/10/2024 Revised: TBD The Official Check Order Process Members may request Official Checks in person, by phone, by mail, or through Secure Email. Employees must follow the steps below. Contact Mail Phone In Person Secure Email method: Verify the Verify the ID signature using 1. Identify MAAP to Level 3. using standard N/A standard procedures. procedures. A. Verify there are sufficient funds to cover the check. B. Run OFAC on the payee if they are not a member. Operations C. Create a MARS case for the request. Services: 2. Process D. Add a case comment regarding any OFAC finding. perform steps E. Debit the account in Symitar. 1 A, B, D, and E. F. If needed, assign the case to Operations Services for printing and mailing the check. Attach/index the Attach/index the 3. Document See below. 2 N/A received item. recorded call. Operations Operations Branch: print Operations 4. Disburse the Services: print Services or branch: and provide or Services: print Official Check and mail. print and mail. 3 mail. 4 and mail. 1 Use the transaction codes for a check disbursed: KD for CFCU, or KO for Spectrum. Follow the prompts to post the transaction. An override will be required if the amount exceeds the employee’s limit. 2 Branch employees must ask members to sign the transaction receipt using a signature pad. Members must also sign the file copy of the check to: 1) acknowledge the 90-day requirement for stop payments, 2) confirm they received the check, and 3) confirm information on the check is accurate. 3 Branch employees may disburse Official Checks for phone requests if MAAP is performed and the call is recorded. 4 Branch employees must provide the Official Check, check stub, and transaction receipt. Retain the signed copies for daily balancing. 2 33.07.00 Created: 10/10/2024 Revised: TBD Official Check Stop Payments Members may not place stop payments on Official Checks unless a check has been lost, stolen, destroyed, or mutilated. A replacement check is then disbursed if the member wishes. Members must complete a Declaration of Loss (Exchange Items) form for the stop payment. Before proceeding, employees must use the IC feature in Symitar to confirm the Official Check has not been reconciled, reissued, or escheated. The Declaration of Loss form is available in PDF form and can also be generated in DocuSign or Symitar: 1. In Symitar, select Account Servicing in the dropdown menu. 2. Click Forms and Documents. 3. Click Declaration Loss (Exch Items). 4. Enter the check number and select Cashiers Check as the Check Type. 5. Click OK. Understand the payee and reason for the declaration: If an individual, there is additional risk when third-party indemnification is used. If a large company (mortgage company or phone company), there is additional risk due to the potential for a double payment (the lost check and the re-issued check). Identify the member. Second-party statements and third-party indemnification are approved on a case-by-case basis and must be discussed with a manager (or supervisor with delegated authority): Discuss the matter with a manager/supervisor before providing the option to the member. When presenting a Declaration of Loss to the manager/supervisor, include a printout of the IC screen and a Verification of Deposit. Exceptions are rare but may be granted by the manager/supervisor based on the member relationship and dollar amount of the check relative to balances maintained. The case comments should include a rationale for any approval. Typically, the member must wait 90 days after the original issue date before the Credit Union can reissue the check. 3 33.07.00 Created: 10/10/2024 Revised: TBD Reissuing Official Checks To reprint (reissue) an Official Check through Symitar, the check status must first be reset to Not Issued in the OpCon Self Service module. Employees must follow these steps: 1. Click EASE OpCon Self Service in The Hub’s Quick Links section. 2. Click the Reissue Checks button. 3. Enter the check number. 4. Enter your email address for the confirmation email. 5. Click the Submit button. 6. Click the OK button on the Completed screen. 7. Check your email for the confirmation message. The following Official Checks cannot be reissued: Checks with check numbers that do not exist Checks that were issued more than 4 days ago Checks with a status other than Issued Checks not issued by your department Contact Symitar Support if you receive a Check Not Found or Can’t Reissue message. Safeguarding Official Check Stock Each branch keeps a working supply of Official Checks. Branch employees must follow these guidelines to safeguard the stock: 1. Official Checks should be loaded into the check printer during working hours, with the excess supply kept in the vault or a locked cabinet. 2. During the branch closing process, unused stock should be pulled from the printer and placed in the vault or locked cabinet. 3. If possible, newly arrived stock should be opened under dual control. 4. Place newly arrived stock in quantities of 25, 50, or 100 into sealed envelopes or tamper-proof bags. Sign and date the envelopes/bag. 5. Secure the checks in the vault or a locked cabinet. Auditing Official Check Stock The working supply and vault supply of Official Checks are counted and recorded on a monthly basis during the cash and negotiable items audit. When auditing, complete the starting number (lowest number), ending number (highest number), and total on hand. It is not necessary to open envelopes or bags containing Official Checks if the envelope/bag is sealed, is initialed by two employees, and shows no signs of tampering. Checks may be in quantities of 25, 50, or 100 in each sealed envelope/bag. 4 33.07.00 Created: 10/10/2024 Revised: TBD Identifying Official Checks There are two methods for verifying the authenticity of Official Checks: visual verification and verification in Symitar Check Manager. All issued Official Checks are recorded in Symitar Check Manager. Always verify Official Checks in Symitar Check Manager. While there are multiple visual markers to look for, a visual verification is not sufficient. Visual Verification When verifying an Official Check visually, be sure to review both the front and back. The front of the check must have the following characteristics: The Credit Union’s brand-specific name, mailing address, toll-free number, & web address “Pay” as part of the pre-printed check and not as part of the embossed amount A security warning at the center bottom Authorized signature(s) that conform to policy (i.e., the number of signatures and authorized signers) A notice on the right: “Security Features included. Details on back.” The back of the check must have the following characteristics: A 5-line disclosure at the top of one end A disclaimer above the endorsement lines: “Must be endorsed by all parties” 2 endorsement lines Security details enclosed in a text box A pre-printed stock number 5 33.07.00 Created: 10/10/2024 Revised: TBD Identifying Official Checks (cont.) Verification in Symitar Check Manager Follow either series of steps to access the Search for Check screen: 1. On the Symitar home screen: click Navigate > Accounting > Check Manager. 2. On the Teller Transactions screen: enter transaction code IC and press Enter/click the Next button. Press Enter/click the Next button again to select Check Control. 3. On the Search for Check screen, enter the check number in the Look For field and press Enter/ click the OK button to open the Checking Acct Code Number screen If the check number is valid, Check Manager displays the amount and payee information. If the check number is not valid, Check Manager returns a Record Not Found message. Contact your manager or Fraud & Transaction Analysis if this message is returned. Contact your manager or Fraud & Transaction Analysis if the check status is anything other than Issued or Escheated. Contact Operations Services if the status is Escheated. (Escheated indicates the Credit Union is sending the funds to the state as unclaimed property. If there is a date in the Escheat Date field, the funds are with the state.) CHECK NUMBERS Depending on the issuing department, check numbers may include a prefix that does not appear on the physical check: Check numbers for checks issued by Accounting begin with the prefix 01. Check numbers for checks issued by any other department begin with the prefix 00. The prefix 01 must be entered when searching for checks issued by Accounting. Search with and without the prefix if you are uncertain of the issuing department. 6 33.07.00 Created: 10/10/2024 Revised: TBD Operations: Printing Official Checks using a GL If a member is owed funds and their membership is closed, Operations Services may be asked to print an Official Check and mail it to the member's last known address. MARS cases will be assigned to the Operations – General Queue. Cases will include the following information: “Check Request” as the Subject The member's name The member's address The dollar amount of the check The GL that must be used to process the offset A letter for the member Employees must follow these steps: 1. Process the transaction in Symitar. On a blank screen, enter KD GL. Enter the check’s dollar amount. Enter the payee’s name and address. Enter GL. Enter this comment: CHK REQ ATM EXCEP. 2. Print the letter. 3. Insert the letter and check in an envelope and mail it to the member by U.S. Mail. Official Checks: Vendor Inventory Control The following process is followed with the Credit Union’s vendor, American Solutions for Business (ASB), to control paper stock inventory: 1. A department or branch submits an Official Checks order through the ASB link on The Hub. 2. Marketing confirms the reasonableness of the order and forwards it to ASB. 3. ASB prepares and ships the order to the requesting department/branch. 4. The receiving department/branch reports any discrepancies directly to ASB by emailing [email protected]. 5. The receiving department/branch signs the packing slip under dual control (if not a 1- person branch) to acknowledge receipt and that any discrepancies have been reported. 6. The receiving department/branch emails the signed packing slip to the Ops ASB Reconciliation distribution list with any discrepancies noted in the email message. 7. Operations Services reviews the acknowledgment, matches information to the FedEx notification, and files the document. 7 33.07.00 Created: 10/10/2024 Revised: TBD