Believe it or not, there are some rare times when a township issues cheques that remain uncashed.
Council here approved a policy to deal with such cheques at its Nov. 22 meeting after receiving a report from finance director Mike Givens.
He explained the policy is necessary to have a handle on township finances.
“As a matter of policy, the township attempts to contact payees of unclaimed cheques in order to promote good internal control standards,” he said in his report.
He said if a cheque goes uncashed after 60 days, the finance department begins a follow-up to find out why. Naturally, the larger the cheque, the more work goes into it:
– $1,000 or more, maximum effort, such as phone calls or letters to last known location … consultation with the department originating the transaction, consulting directories, etc;
– $100 to $999, moderate effort, including at last one attempt to contact the payee via phone call or letter;
– $35 to $99, effort made as time permits; and
– Less than $35, no effort made to contact the payee except in certain cases, as determined by the finance department.
The final step, after all else is exhausted, is to stop payment or cancellation of the cheque after 90 days, or after the follow-up has been exhausted.
That will be done at the discretion of the director of finance. Council considered the report by Givens and approved it unanimously.
