Checks deposited by state agencies with the State Treasurer's Office may be returned to the Treasurer’s Office because of insufficient funds, closed accounts or because they are otherwise deemed uncollectible.
These return items are processed as follows:
- Returned checks are deposited twice before the depositing agency is charged for the returned item.
- All return items are charged back to the account the item was originally deposited.
- The State Treasurer's Office will provide the agency with the return item and a charge back letter from Banking Operations with the charge back number, name on the check, check number, amount, and the date the charge back was processed for its reconciliation purposes.
- Once an agency has received this information, it will be responsible for collecting on the return item.
- Once an agency collects on the return item, the collection should be deposited back to the account it was originally deposited to offset the debit.
Note: Agencies that deposit directly to a depository bank are required to exchange the return item with cash, a warrant or an agency voucher at the financial institution.