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Resolution 2006-115 STATE OF ILLINOIS ) )ss COUNTY OF KENDALL ) RESOLUTION NO. 2006- �1 RESOLUTION APPROVING A CHECK REPLACEMENT POLICY WHEREAS, the City Council of the United City of Yorkville has considered and discussed establishing a policy concerning a check replacement policy, and WHEREAS, the City Council has determined that it desires to establish such a policy, and WHEREAS, the text of the policy the City Council now desires to establish concerning check replacement is set forth on the attached Exhibit "A" which is incorporated herein, and NOW THEREFORE, upon Motion duly made, seconded and approved by the majority of those members of the City Council voting, the Check Replacement Policy is hereby approved by the City Council of the United City of Yorkville in the form set forth on Exhibit "A" attached hereto and incorporated herein. JAMES BOCK ,, JOSEPH BESCO VALERIE BURD c PAUL JAMES DEAN WOLFER MARTY MUNNS ROSE SPEARS c.� JASON LESLIE i Approved by me, as Mayor of the United City of Yorkville, Kendall County, Illinois, this �_ day of , A.D. 2006. MAYOR Passed by the City Council of the United City of Yorkville, Kendall County, Illinois this k a day of , A.D. 2006. ATTEST: ����� CITY CLERK i Prepared by: I John Justin Wyeth City Attorney United City of Yorkville 800 Game Farm Road Yorkville, IL 60560 I i I Check Replacement Policy The purpose of this policy is to define the procedures for the replacement of vendor checks and employee payroll checks that are lost or stolen. I. Vendor Check Replacement Any check that a vendor claims to be lost or stolen must be reported to the Finance department immediately. The vendor must submit a letter requesting a replacement check. Once the letter is received by Finance, a stop payment will be placed on the check. The bank generally requires at least a 72 hour waiting period to determine if the check was cashed. If it has been determined that the check was cashed, the City must make a determination if the vendor cashed the check or if it was cashed fraudulently. The Finance department must follow procedures to follow up if the check was cashed fraudulently. Once a full investigation is completed in reference to a vendor check, the Finance department will reissue a new check to the vendor within 60 days after a claim is filed. II. Employee Payroll Check Replacement An employee must notify the Human Resources division immediately of a lost or stolen payroll check. The employee must submit a letter requesting a replacement check. A stop payment will be issued on the check in question and an investigation will proceed. The bank generally requires at least a 72 hour waiting period to determine if the check was cashed. If it has been determined that the check was cashed, the City must make a determination if the employee cashed the check or if it was cashed fraudulently. The Finance department must follow procedures to follow up if the check was cashed fraudulently. The employee will be issued a replacement pay check the next payroll cycle. The maximum length of time an employee would have to wait for a replacement check is 13 days. At this point, the employee would be encouraged to sign up for direct deposit to avoid this situation from occurring again. There can be an exception for first time offenders. 2 II