The AP accountant uses Stop Payment procedures when a payment needs to be canceled. The accountant completes the Stop Payment form (found on the accounting shared drive), including the account number and check number, and sends the form to the accounting supervisor. The supervisor signs the form and sends it to the contracted bank for processing.

The funds are not withdrawn from the account if all of the following occur:

• The contracted bank receives the check (from the person or entity to whom it was made payable, or from a bank on behalf of that person or entity).
• When the contracted bank receives the check, the bank has already received the Stop Payment form.
• The contracted bank receives the check no more than six months after receiving the Stop Payment form. (The stop payment is in effect for six months. However, there is printed text on the check that states it is void after 90 days.)

There are two reasons for a stop payment:

• The payment was sent in error.
• The check needs to be replaced or canceled because it has not been cashed or deposited. See Outstanding Items Procedures, below.

Outstanding Items Procedures

Replacing a Payment

If a check needs to be replaced because it has not yet been cleared (processed through the bank), an AP accountant stops payment on the original check and issues a new check. However, the AP accountant does not do this until at least two weeks after the original check was issued.

Canceling a Payment

If a payment still has not been cleared on the 90th day from the date the original check was issued, the AP accountant voids the item in the child’s account in IMPACT and makes a stop payment.