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HomeMy Public PortalAbout432.5 - Business and Financial Services - Accounting & Control Division - Processing of ChecksAdministrative Services Department Accounting and Control Section 432.5 432.5 SUBJECT: PROCESSING OF CHECKS :1 OBJECTIVE: Standardize and control the acceptance of checks by City Departments. :2 AUTHORITY: This procedure amended by City Council August 14, 2000, Item 6-A. :3 DIRECTION: Comptroller, as an appointed official, serves at the pleasure of the Mayor, and receives direction through the Administrative Services/Management and Budget Director. :4 METHOD OF OPERATION: A. Acceptance of Checks 1. The City's endorsement (deposit stamp) shall be stamped on the back of all checks received for payment. 2. A driver's license or a picture ID must be presented when paying with personal check. 3. Each check shall contain an appropriate documentation of the obligation for which the check has been presented - invoice number, contract number, lien number, permit number, etc. - which will link the check to a specific obligation. 4. It shall be the responsibility of the Department/Bureau/Office receiving each check to ensure that identification information and documentation of the obligation is recorded on each check. 5. When a check is received by mail, the check is logged into a computer database for processing. B. Dishonored/Returned Checks The following action will be taken on the return of a dishonored check: 1. The Revenue Collection Section shall initiate a Certified Letter of Notification to the issuing party requesting immediate restitution. 2. A copy of the letter and check is forwarded to the Department that accepted the check. The Department/Bureau/Office is responsible for taking prompt action to obtain restitution for the dishonored check. 3. Pursuant to section 166.251, Florida Statutes, the City may charge a service fee for dishonored checks in the amount of 5% of the face amount of the check, or the following amount, whichever is greater: (1) $25.00 if the face value does not exceed $50.00 (2) $30.00 if the face value is more than $50.00 but does not exceed $300.00 (3) $40.00 if the face value is more than $300.00. C. Restitution Of Dishonored Check 1. Pursuant to section 832.07, Florida Statutes, the City may turn over the dishonored check and all other available information relating to the incident to Policies and Procedures Manual Page 1 Administrative Services Department Accounting and Control Section 432.5 Policies and Procedures Manual Page 2 the State Attorney for criminal prosecution if payment is not rendered within seven (7) days of the Certified Letter of Notification. 2. If a Department/Bureau/Office determines that a check should not be turned over for collection or prosecution, the appropriate appointed official shall indicate to the Revenue Collection Section in writing within five working days of receipt of the copy of the Notification Letter. 3. The letter to Revenue Collection shall contain the status of current collection efforts and the reasons the said check should not be turned over to the City’s Collection Agency or Legal Affairs Office. :5 FORMS: None. :6 COMMITTEE RESPONSIBILITIES: None. :7 REFERENCE: Florida Statues Chapter 832. This procedure adopted by City Council October 31, 1988, Item 22, A-27; amended June 14, 1993, Item 4-Q; amended August 9, 1993; amended August 14, 2000, Item 6-A. :8 EFFECTIVE DATE: This procedure effective August 14, 2000.