LDSTechForumProjects

Outstanding checks

This article shows how to handle outstanding checks in a variety of circumstances. Find the circumstance below that most nearly fits the check you are dealing with and follow the instructions.

Note: Church headquarters will now escheat checks that were issued more than 180 ago. Those checks cannot be voided and should not be reissued. If a check was escheated, the payee must contact Church headquarters to get the funds.

You have the check and want to void it

You can void a check issued in the last 179 days. As of February 2011, Church headquarters will escheat all checks that are outstanding 180 or more days.

Follow the instructions below for Voiding a check that have been issued less than 180 days ago.

You want to reissue a check

  1. Look at your most recent Unit Financial Statement to make sure the check has not cleared or been escheated. If it has cleared or been escheated, do not reissue the check.
  2. If the check was written in the current month and has not cleared on the statement, telephone Church headquarters to see if the check is still outstanding. If it has cleared, do not reissue the check.
  3. If the check was issued 90 to 179 days ago and has not cleared, void the check and then reissue it.
  4. If the check was issued more than 180 days ago, Church headquarters will automatically escheat the check. If he payee still wants the funds, they should telephone Church headquarters.

You issued the check to an individual or business but they do not want to cash the check

Make sure the check has not been been escheated. If the check has not been escheated:

  1. Ask the business or individual to endorse the back of the check and give or mail it to you. The endorsement should read: "For deposit only to the account of the Church of Jesus Christ of Latter-day Saints"
  2. Complete a Tithing and Other Offerings slip and deposit the check to the correct category. If it is a Budget category check, write "Budget" on the Other line on the slip and enter the amount there; however, deposit it to Budget.

You issued the check to an individual or business and they lost the check but still want the money

If the check was issued in the last 179 days, follow the steps below. If the check was issued 180 or more days ago, Church headquarters will have escheated the check and it cannot be voided.

  1. Look at your most recent Unit Financial Statement to make sure the check has not cleared. If it has cleared, do not reissue the check.
  2. If the check was written in the current month and has not cleared on the statement, telephone Church headquarters to see if the check is still outstanding. If it has cleared, do not reissue the check.
  3. If the check has not cleared, void the check and then reissue it.

You issued the check to an individual or business and they lost the check and do not want the money

If the check is $50 or less:

  1. Telephone or visit with the check owner to make sure they don’t want the check.
  2. Void the check in MLS.
  3. When the window appears that asks the reason for the adjustment, type that owner does not want the check and the date you contacted the owner (example: Owner does not want check 12/20/08).

If the check is over $50:

  1. Obtain a written and signed letter or note from the check owner stating that he or she no longer wants the funds.
  2. Void the check in MLS.
  3. When the window appears that asks the reason for the adjustment, type that owner does not want the check and the date you contacted the owner (example: Owner does not want check 12/20/08).

You issued the check to an individual or business and after multiple attempts have been unable to contact the payee

If your unit is in the United States:

  • Do not void the check. In February or March of each year, your unit will receive an Outstanding Checks—Annual Report form. List the check on the form and follow instructions on the back of the form. Once the stake sends your report to Church headquarters, it goes through a process that can take several months. During this time, leave the check as outstanding. When it clears, this should show on the Unit Financial Statement.

If your unit is outside the United States:

You issued a fast-offering check and after contacting the business and/or recipient, you have determined that the debt still exists

The fast-offering recipient should work with the bishop on this matter to help him decide whether to reissue the check.

If the fast-offering check will be reissued:

  1. Void the check in MLS.
  2. Reissue the check.

If the fast-offering check will not be reissued:

  • If your unit is in the United States, do not void the check. In February or March of each year, your unit will receive an Outstanding Checks—Annual Report form. List the check on the form and follow instructions on the back of the form. Once the stake sends your report to Church headquarters, it goes through a process that can take several months. During this time, leave the check as outstanding. When it clears, this should show on the Unit Financial Statement.
  • If your unit is outside the United States, void the check in MLS.

You issued a fast offering check and after contacting the business and/or recipient, you have determined that the debt was satisfied by some other means

  1. Void the check in MLS.
  2. Give as the reason for the adjustment, "The debt has been satisfied."

You issued a fast offering check and after multiple attempts you have been unable to contact the business or recipient to see if the debt has been satisfied

  • If your unit is in the United States, do not void the check. In February or March of each year, your unit will receive an Outstanding Checks—Annual Report form. List the check on the form and follow instructions on the back of the form. Once the stake sends your report to Church headquarters, it goes through a process that can take several months. During this time, leave the check as outstanding. When it clears, this should show on the Unit Financial Statement.
  • If your unit is outside the United States, void the check in MLS.

You issued a check to another Church unit

You issued a check and it cleared with 9s in the front of the number, but it is still listed as an outstanding check

Telephone Church headquarters

You issued a check that the payee cashed, but it still is listed as outstanding

This is what is known as a check "Lost in Banking." The Church still owes the money to the bank as long as it has not cleared.

  • If your unit is in the United States, do not void the check. In February or March of each year, your unit will receive an Outstanding Checks—Annual Report form. List the check on the form and follow instructions on the back of the form. Once the stake sends your report to Church headquarters, it goes through a process that can take several months. During this time, leave the check as outstanding. When it clears, this should show on the Unit Financial Statement.
  • If your unit is outside the United States, do not void the check. Continue to leave it as outstanding.

If none of the circumstances listed in this document fit the outstanding check

Contact your administrative office (see Church headquarters).

Voiding a check

Void the physical check

If you still have the check, do the following before voiding the check in MLS. If you do not have the check, go straight to Void the check entry in MLS.

  1. Tear out and destroy the signature lines on the check.
  2. Write "VOID" on the check and any copies of the check.
  3. File the voided check in numeric order with the other expense documents.

Void the check entry in MLS

If you do not have the check in your possession, contact Local Unit Support to:

  1. Verify that the check has not cleared since the last statement
  2. Have the analyst issue a stop payment for the check

In MLS, do the following:

  1. Under Finances, click More.
  2. Under Expenses, click View/Update Expenses.
  3. In the Ref. No. column, click on the check number. The Expense screen displays the details of the check.
  4. Click Void.
  5. Click Continue.
  6. Enter the reason for the adjustment. This will depend upon the situation.
  7. Click OK.

Resources

This page was last modified on 15 February 2012, at 12:17.

Note: Content found in this wiki may not always reflect official Church information. See Terms of Use.