Policies

Division     

Administration and Finance

Department

Accounting

Positive Pay

Policy

To prevent check fraud by examining questionable checks on-line and then determining whether each check should be paid or returned. This applies to paper checks only.

Procedure

In November 2007, Worcester State University implemented Positive Pay through Sovereign Bank. With this program, WSU sends files to the bank reporting all checks that have been issued and voided. Sovereign in turn reports questionable checks into the IRIS system for review by WSU personnel and action is taken to approve or deny payment of the check. These exceptions are viewed daily on the IRIS online banking system so that they can be reviewed, and paid/ denied accordingly.

Each time a check-run is processed and released, a file is sent from accounts payable to the bank identifying all checks that were processed in the batch. When exceptions appear in the IRIS system, the Manager of Financial Records & Treasury or an Accountant will review and make a decision on the item.

Voids and Stop Payments

If a check is voided, it needs to be manually entered into the online banking system so Sovereign is aware that the item is no longer valid. If the check requires a stop payment, it is also entered in the online banking system so the check can be stopped. We do a stop if we do not have the check in hand. All stop payments are good for 6 months and after that become “stale dated.”

Approved by

Vice President/Date

Approved by

Cabinet/Date

Revised Date