PM 22-02-01-c.

The FCRC and the Warrant Control Unit (WCU) handle reimbursements.

  1. Void the check and make 2 copies when the 2nd endorser turns in the check.
    1. Keep one copy and give the 2nd endorser a copy.
  2. Interview the client about the cashed check.

If a 2nd endorser calls about a check with a stop payment stamped on it and the FCRC does not have a signed Form 98, either:

  • the banking system made an error,
  • the 2nd endorser or their bank sent a copy of the check at an earlier date and the State Treasurer honored the copy, or
  • the State Treasurer stopped payment on the wrong check.

Tell the 2nd endorser to contact the State Treasurer's Office (217/782-4174) to investigate the problem.

Client Admits Cashing the Check

When the client admits cashing the check, the Department will reimburse the 2nd endorser.

  1. Run a Recipient Ledger (PF6) to see if the check was replaced.
    1. Start recovery if the check was replaced.

To reimburse the 2nd endorser:

  1. Send WCU:
    • the check, no copies are accepted, and
    • a memo containing:
      • 2nd endorser's name, full address, zip code, phone number, and name of contact person;
      • the client admitted cashing the check; and
      • if recovery has been started, if the check was replaced.

Client Denies Cashing the Check

  1. Have the client sign 8 copies of Signature Exemplar (Form 1403).
  2. Send the following to WCU:
    • the check, no copies are accepted,
    • one Form 98,
    • 8 copies of Form 1403,
    • a memo including the 2nd endorser's:
    • name,
    • address, including zip code,
    • FEIN number,
    • phone number, and
    • contact person.
    • a report of the findings of the interview with the client including:
    • the client's denial of cashing the check, and
    • whether the check was replaced.

Forgery Investigation

The Forensic Document Examiner checks the endorsement signature. If the examination finds the endorsement signature is a forgery, no reimbursement is approved.

  1. (WCU) Returns the stopped check to the FCRC.
  2. (FCRC) Send the check back to the 2nd endorser telling them the Examiner's decision.

If the examination finds the endorsement signature is genuine, reimbursement is approved. Start recovery if an overpayment has occurred.