Confusion on the procedure to Void a Check

I would like to verify the procedure for verifying checks currently. Since I have been a clerk/assistant clerk, the procedure has changed a few times. The most recent update that I remember receiving was after an update to MLS said that we no longer are required to contact SLC when we void a check, that MLS will automatically send the information and no further action is required on our end.

These are the steps as I know them for an outstanding check. Please let me know if they are incorrect. I'm only going to mention the situation where voiding the check would be necessary.

1. Contact the payee, verify if they still have the check or not.

2. If the check is unable to be found, write a new check, then void the original check in MLS. Next time MLS transmits to SLC in the void information will be sent and updated in church adminastration's systems.

3. Provide the new check to the payee.


A question came up from another clerk in the stake and they refered to mor recent information that what I was dealing with. In my ward we don't run into many outstanding checks so I wanted to make sure that I had the procedure correct because I had to follow this procedure recently.


Thank you for your time.

werj wrote:I would like to verify the procedure for voiding checks currently. Since I have been a clerk/assistant clerk, the procedure has changed a few times. The most recent update that I remember receiving was after an update to MLS said that we no longer are required to contact SLC when we void a check, that MLS will automatically send the information and no further action is required on our end.

It's true that MLS will transmit the information on voiding a check to CHQ, so you don't need to call for that reason. If you have the check in your possession, you can indeed void it in MLS, cut out the signature block, write VOID on the check, and then once you have done a Send/Receive in MLS, you are done.

However, if you do not have the check in your possession, you still need to call CHQ. If the check has been lost and you are replacing it, there will need to be a Stop Payment order placed, which only CHQ can do. And if the check is not being replaced, you generally cannot void it (in the United States, at least). It will eventually be put on the Outstanding Checks Report. But there are some exceptions to that rule, as well, so the procedure is to always call CHQ if you don't have the check in your possession.

From the the Clerk and Technology web site:

Details:

Wards and stakes are required to report any outstanding (un-cleared) checks to Church headquarters once a year. Un-cleared (or outstanding) checks do not benefit the Church because the Church must remit those funds to each payee’s state according to the state’s escheatment laws.

To simplify the process of this reporting requirement, those responsible for finances are encouraged to complete the following steps soon after receiving each monthly Church unit financial statement.

1. Contact the payees of any outstanding checks to see why they have not cashed or deposited their checks. A sample letter is included at the end of this message that can assist in following up on these outstanding checks in a timely manner.

2. Inform the payees of the requirement for the Church to remit those funds to the state if the check is not cashed or deposited in a timely manner.

3. If a payee still has the check, ask the payee to deposit or cash the check as soon as possible.

4. If a payee wants to donate the check back to the Church, have the payee endorse the check, fill out a donation slip (select only a charitable category, such as Tithing, for the donation), and follow normal donation procedures.

5. If a payee is unable to locate the original check but still wants to be paid or reimbursed, write a replacement check and then void the original check according to the prescribed MLS (Member and Leader Services software) procedures.

6. If you cannot locate the payee or the check is not cleared in a timely manner, the check will need to be included on the outstanding checks form provided by Church headquarters. This form is also available in the “Letters and Policies” download area of this Web site.

Hi I've run into an issue when trying to void a lost check. What happened is as follows:

1. On Aug 23rd 2015 our ward wrote a check for $9.80 for an expense
2. The member lost the check
3. I followed the steps online for voiding checks by going into MLS in the View/Update Expenses section
4. I click on the check number that opens the individual expense - it's status is labeled as "issued"
5. The "Void" button is grayed out and not allowing me to void the check

Two questions, 1) why is the button grayed out; 2) what should I do about getting the lost check paid?

Thanks!

jakenielson wrote:Hi I've run into an issue when trying to void a lost check. What happened is as follows:

1. On Aug 23rd 2015 our ward wrote a check for $9.80 for an expense
2. The member lost the check
3. I followed the steps online for voiding checks by going into MLS in the View/Update Expenses section
4. I click on the check number that opens the individual expense - it's status is labeled as "issued"
5. The "Void" button is grayed out and not allowing me to void the check

Two questions, 1) why is the button grayed out; 2) what should I do about getting the lost check paid?

The button is grayed out because the check is now over 6 months old and has been escheated. That means that the money has been turned over to the state as 'unclaimed'. At this point the member will have to claim the money by contacting the appropriate department in their state. They can contact the General Service Center for directions on how to do this in their state.

jakenielson wrote:Two questions, 1) why is the button grayed out[?]

After 180 days the check escheats and the funds are turned over to the state as unclaimed property. Since the check was written on August 23, 2015, the check escheated sometime around February 19, 2016. The funds no longer belong to the Church. The actions to void the check should have been taken before the check escheated.

jakenielson wrote: 2) what should I do about getting the lost check paid?

Contact the GSC and they will provide specific instruction. (An old link for information I had was Outstanding Checks and Escheatment. I no longer have access permissions so I can't verify it.)

jdlessley wrote:Contact the GSC and they will provide specific instruction. (An old link for information I had was Outstanding Checks and Escheatment. I no longer have access permissions so I can't verify it.)

The link is still valid but it doesn't have any specific contact information and doesn't describe escheatment in much detail. I seem to remember more detail before but I could be wrong .

We recently worked through the process with a member who found a 2014 check and asked if they could still cash it (I told them no since it was already escheated). I sent all the details (check number, member's information) in a finance message from MLS. I received instructions back in a couple of days and the church is requesting the funds back from the state. They said they will mail the member a replacement check from CHQ. They had me mail the un-cashed check to them (instructions may be different if the check is lost).

As assistant clerk - finance, I watch the old un-cashed checks list on the monthly finance statement like a hawk, but my predecessors did not and we have several from the past couple of years I am now trying to clean up. It is much easier to address it in the first couple of months than wait until the escheatment process has already started.

A check written out on July 16, 2017 for rent to one of the members of our ward. The check was never given to the member because he did not bring in the proper documentation. We still have the check in our possession. We went to void the check but now can not void it on MLS because it has been more than 6 months since the check was written. What can be done to void the check.

For a check that old, you'll have to contact support.

Outstanding Checks and Escheatment

joelmyers wrote:A check written out on July 16, 2017 for rent to one of the members of our ward. The check was never given to the member because he did not bring in the proper documentation. We still have the check in our possession. We went to void the check but now can not void it on MLS because it has been more than 6 months since the check was written. What can be done to void the check.

Interesting. That check has appeared as an Action Item on your monthly financial statement from July 2017 through January 2018, and your bishop and clerk have signed that statement every month? That must have been an interesting audit.

joelmyers wrote:What can be done to void the check.

Just to expand on the document russellhltn referenced, the check has now been escheated which means that the church has turned the funds over to the state as unclaimed property. So as far as the law is concerned the money belongs to the member now and mostly like can only be claimed by the member. That's why you can't void it. You'll need to contact local unit support for advice but you may be in a sticky situation. If the money should still go to the member then local unit support can help navigate the process to help get them the money. If they shouldn't have the money, then the only course may be to still have them claim it and ask them to donate it back. Again, you'll need local unit support to give you the options and lead you through the process.

In the future, never cut a check without having the documentation first. But if a check is cut and then the documentation is found to be deficient, void the check if the deficiency can't be remedied within a short time (a week or so).