|STATE OF CONNECTICUT|
THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
MEMORANDUM NO. 96-02
January 5, 1996
TO THE HEADS OF ALL STATE AGENCIES
|Attention:||Chief Administrative Officers, Fiscal Officers, and Business Managers.|
|Subject:||Proper Procedures for the Issuance and Handling of Checks Returned to an Agency.|
Sections 3-112 "Powers and duties" and 3-117 "Claims against the state" of the Connecticut General Statutes prescribe that upon the settlement of any claim against the state, under procedures adopted by the comptroller, the comptroller will draw an order on the treasurer for its payment.
Establish procedures for checks returned to an agency.
The audit release Special Code "14" is restricted to checks returned to agencies which require special handling. Special Code "14" is authorized for the following payments:
Special Code "14" should not be used for Petty Cash (PC), Employee Voucher (XP), and Prepayment (PP) invoices. Document type PC, XP, and PP automatically default to Special Code "34" which are returned to the processing agency.
Because proper internal accounting controls normally require the immediate mailing of checks, Special Code "14" will be closely monitored through the post audit process.
Special Code "99" must be used by paper processing agencies to identify those checks required to be returned to the agency as authorized in section III A. 1, 2, and 3 above.
These types of claims should be combined when processing expenditure batches with "99" marked in the upper right hand corner of the Expenditure Batch Header (CO-19).
Because proper internal accounting controls normally require the immediate mailing of checks, Special Code "99" will be closely monitored through the post audit process.
It is the agency's responsibility in all instances to mail checks timely to their vendors. A check should be mailed within ten  working days from the check issue date.
No check is to be held by an agency pending completion of the vendors contractual obligation.
The Accounts Payable Division will follow-up on all conditions found. Non-compliance by a State agency may cause this Office to revert the agency's processing of all expenditure documents to a pre-audit procedure, possibly slowing the issuance of checks to your vendors.
A compliance review at the agency's site will be conducted for serious or repeat offenses. This review will assess the materiality of weaknesses in the agency's internal control structure and the extent of compliance infractions.
Our office is committed to safeguarding State funds and expediting the processing of all vendor claims. This change in the handling of vendor checks returned to an agency requires constant monitoring.
Any questions or concerns regarding this memorandum or the change in procedure may be directed to the Accounts Payable Division at 566-8978 or 566-3895.
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