Forged Checks Procedure

Purpose

This procedure outlines the steps campuses take to prove the endorsement on a check does not belong to the vendor the check was made payable to.

Background

When a vendor claims not to have cashed a check that the Research Foundation believes has cleared, a forgery investigation should take place. Campuses obtain a copy of the cashed check and once it has been determined that the check in question was indeed cashed, the vendor can fill out and submit an Affidavit of Forged Maker/Endorsement to initiate an investigation by Key Bank.

Procedure Overview

The forged check procedure includes the following steps:

Step

Who Does It

Action

1

Campus

Obtain a copy of the check in question.

2

Vendor

Complete an Affidavit of Forged Maker/Endorsement.

3

Campus

Sum bit the form to central office.

4

Central Office

Submits the claim to Key Bank and monitors the claim.

5

Key Bank

Resolves the claim.

6

Campus

Reissues payment to vendor when a claim is approved.

Each step is described in the following sections.

Obtaining a Check Copy

Before a forged check investigation takes place, the campus representative must obtain a copy of the check in question through Key Bank’s KTT (Key Total Treasury) Web site. For details, refer to the Check Copy Procedure.

Completing an Affidavit of Forged Maker/Endorsement

The vendor must complete an Affidavit of Forged Maker/Endorsement. The following table outlines how to complete the form:

Field Name

What to Enter

Key Bank Case #

Leave blank.

Customer Name

Name of the company or person claiming the check was forged.

Customer’s Name

Name of the person at the company filling out the form, including his or her job title, OR the name already entered in the Customer Name field.

I have examined the following

Circle check.

Bearing my signature as

Circle endorser.

Check #

The number of the check in question.

Date

Date on check (the date the check printed).

Amount

Amount of the check in question.

Payable to

Vendor listed on the check in question.

Drawn on

Key Bank.

I first learned of the forgery

The date when it was determined the check was cashed fraudulently.

For the rest of the fields, including the ones pertaining to the filing of a police report

Fill out if applicable. If not applicable, do not leave blank. Write N/A.

Important! The bottom of the form contains a space for a notary public seal. The form MUST be notarized to be considered complete.

Submitting the Affidavit of Forged Maker/Endorsement to Central Office

The vendor must forward the original notarized form to the campus contact. The campus contact then returns the form with a copy of the check to the RF central office.

Submitting the Claim to Key Bank

Central office takes the following steps to submit the claim:

Claim Resolution

Key bank will either deny or approve the claim. If the claim is denied, no refund is made and the campus should notify the vendor.

If the claim is approved, the RF receives a refund. Refer to the next section for details on processing the refund.

Processing a Refund for Approved Claims

The following steps are taken to process a refund when Key Bank approves a forgery claim:

Step

Who Does It

Action

1

Key Bank Specialized Service Group Representative

Notifies central office of the date that the vendor checking account was credited.

2

AP/PO Department at Central Office

Notifies the Cash Receipts department at central office of the exact amount and date of the credit.

3

Cash Receipts Department at Central Office

Resets the payment to Unreconciled in Oracle.

4

AP/PO Department at Central Office

Notifies the campus that the payment can be reissued.

Change History

 

 

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