006.09.1 R1-19-4-403. Warrant Cancellations
AR ADC 006.09.1 R1-19-4-403Arkansas Administrative Code
Ark. Admin. Code 006.09.1 R1-19-4-403
006.09.1 R1-19-4-403. Warrant Cancellations
A warrant must be cancelled when either the warrant contains incorrect information (i.e. vendor name, address, payment amount, etc.) or the vendor loses or does not receive the warrant issued to them for payment. The following procedures supply the necessary information to complete a warrant cancellation whether the warrant is for an outside vendor or for payroll to a State employee. PLEASE NOTE: For a chart reflecting forms that must be submitted in all instances of warrant cancellation actions, please see P1-19-4-403.
Non-Payroll Warrant Cancellation
Department of Finance and Administration-Office of Accounting (DFA-OA) is responsible for the cancellation of all Non-Payroll Warrants. All forms must be sent to DFA-OA where they will be processed and forwarded to the Auditor of State-Warrant Division.
There are two general categories for Non-Payroll Warrant Cancellations, those to be re-issued and not to be re-issued. These categories may include warrants that the agency have in hand or those that are lost or forged.
See: P4-19-4-403b
PLEASE NOTE: Generally, Automatic Clearing House (ACH) warrants cannot be cancelled. ACH Warrants are payments that are made by direct deposit into a vendor's commercial bank account. If an agency requests the cancellation of an ACH warrant and that request cannot be processed, the agency must then contact the vendor for a refund of the ACH warrant. Once the agency receives the refund, a refund to expenditure must be completed and a deposit prepared and sent to the Treasurer of State-Warrant Division to record the receipt of funds for both the prior year and the current fiscal year warrants. Appropriation will be restored for current fiscal year warrants only.
An “Affidavit of Forged Warrant” Form, P2-19-4-403, must be completed by the vendor and submitted to the issuing agency for Non-Payroll Warrant Cancellations when the vendor purports the warrant has been lost or forged. The original “Affidavit of Forged Warrant” must then be sent either by mail, inter-office mail, or personal delivery to DFA-OA-Reconciliation Manager. The “Affidavit of Forged Warrant” will not be accepted by DFA-OA-Reconciliation Manager until the 15th day after the issuance of the warrant. The agency personnel must contact the Treasurer of State-Warrant Division either by phone or by e-mail to verify that the warrant has not been redeemed just prior to the submission of the form.
Upon receipt of the “Affidavit of Forged Warrant” Form, the DFA-OA-Reconciliation Manager will review and enter any action necessary in AASIS (i.e. voiding of warrant, reversal of payment). The “Affidavit of Forged Warrant” will then be delivered to the Treasurer of State-Warrant Division to be held in the event that the corresponding warrant is redeemed. If the Treasurer of State-Warrant Division has the original “Affidavit of Forged Warrant” and the original warrant is redeemed, the Treasurer of State-Warrant Division can then return the warrant and the “Affidavit of Forged Warrant” to the bank to attempt to receive a refund of the moneys. If the commercial bank does not refund the moneys to Treasurer of State-Warrant Division, Treasurer of State-Warrant Division will notify the agency that the warrant was not collectable. It is the agency's responsibility to collect the amount of the warrant from the vendor. If after six months the agency is unable to collect, a claim will be filed with the Claims Commission to reimburse the Treasurer of State from the agency's funds and appropriation.
If the original warrant is redeemed prior to an “Affidavit of Forged Warrant” being filed with the Treasurer of State-Warrant Division and the reissued warrant is also redeemed, the Treasurer of State-Warrant Division will attempt to receive a refund of moneys for the original warrant from the commercial bank. If the commercial bank denies the “Affidavit of Forged Warrant,” the agency will be charged for both the original and the reissued warrant. The agency must then contact the vendor to collect the overpayment. Once the overpayment has been collected, the originating agency will deposit the refund in the originating fund and complete a refund to expenditure. If the original expenditure was for the current year, the general ledger account to use is 6080001000 Refund to Expenditure - Current Year. The agency then must submit a “Refund to Expenditure” Form, P3-19-4-403, to DFA-OA-Reconciliation Manager. The “Refund to Expenditure” Form is then used to adjust the appropriation for the current year. If the original expenditure was for prior year, the general ledger account to use is 6990003000 Prior Year Refunds to Expenditures. There is no adjustment of appropriation for prior year.
Non-Payroll Warrant Cancellation with Reissue
Prior Year
All prior year warrant cancellations with reissue require the Auditor of State-Warrant Division to issue a duplicate warrant. These warrants will reflect the same warrant number and date as the original but will have “Duplicate” stamped on the actual warrant. To cancel a prior year warrant that is being reissued, the agency must submit a “Non-Payroll Warrant Cancellation” Form, P4-19-4-403, P4-19-4-403b, (Instructions) an original “Affidavit of Forged Warrant” Form, P2-19-4-403, and an original “Bond for Reissuing Warrant” Form, P5-19-4-403, to DFA-OA. When a prior year warrant cancellation is submitted with a request for reissue and the Auditor of State-Warrant Division issues a duplicate warrant, no journal entries are made.
Current Year
Current year warrant cancellations can either have a duplicate warrant processed by the Auditor of State-Warrant Division or a new warrant can be issued. Duplicate warrants for current year warrant cancellations will only be processed if an “Affidavit of Forged Warrant” and “Bond for Reissuing Warrant” has been submitted with the “Non-Payroll Warrant Cancellation” Form. Also the agency must note on the “Affidavit of Forged Warrant” that the warrant is, if in fact, a forgery. When a current year warrant cancellation is submitted with a request for reissue and the Auditor of State-Warrant Division issues a duplicate warrant, no journal entries are made.
If a current year warrant is cancelled, a new warrant can be issued by the agency DFA-OA-Reconciliation Manager will notify the agency when the warrant has been cancelled.
If a current year warrant is damaged or unacceptable at a commercial bank, the agency must send the original warrant and the “Non-Payroll Warrant Cancellation” Form to DFA-OA-Reconciliation Manager, and a new warrant will be issued to the vendor by DFA-OA-Reconciliation Manager.
Non-Payroll Warrant Cancellation with Reissue (Continued)
Note: All forms must be submitted to DFA-OA-Reconciliation Manager.
Prior Year Warrant Cancellations with Reissue Forms Needed:
P4-19-4-403- Non-Payroll Warrant Cancellations Form
P2-19-4-403- Affidavit of Forged Warrant (Original)
P5-19-4-403- Bond for Reissuing Warrant (Original)
Non-Payroll Warrant Cancellation without Reissue
Prior Year
For a prior year warrant cancellation (void), the agency must submit a “Non-Payroll Warrant Cancellation” Form, P4-19-4-403, either the original warrant or an “Affidavit of Forged Warrant,” P2-19-4-403, and a “Prior Year Non Payroll Warrant Cancellation Journal Entry” Form, P6-19-4-403, to DFA-OA-Reconciliation Manager. If the moneys were expensed from a fund that is supported by General Revenue and a portion of the moneys should not be reclaimed, a “Prior Year Non-Reclaimable Certification” Form, P7-19-4-403, or http://www.state.ar.us/dfa/accounting/acc_forms.html - funds, must also be submitted to DFA-OA. Instructions for the “Prior Year Non-Reclaimable Certification” Form can be found at P7-19-4-403b. If the “Prior Year Non-Reclaimable Certification” Form is not submitted, all moneys will be reclaimed at month end. Prior year warrant cancellations require journal entries to be created and the warrant to be voided by DFA-OA-Reconciliation Manager. Document type “ZW,” will be used in creating the journal entry. The following entry is made as of current date to the originating fund:
DR 1100001000 Cash in State TreasuryCR 6990002000 Prior Year Warrants Cancelled
The Prior Year Warrant Cancelled general ledger account posting is a non-budget relevant posting that does not reestablish appropriation.
The Business Area is used in the reference field for the posting of the prior year warrant cancellation; the short text will reflect “PY Warrant Cancel” and the text field will contain the warrant number.
If the original payment was from a fund that is supported by General Revenue, an additional entry will be made by DF-OA Funds Group Manager at month end reclaiming the moneys. The agency will need to provide a contact person, phone number (with area code) and e-mail address in the space provided on the “Non Payroll Warrant Cancellation” Form that is submitted to DFA-OA-Reconciliation Manager.
Current Year
For a current year warrant cancellation the agency must submit a “Non-Payroll Warrant Cancellation” Form, P4-19-4-403, and either the original warrant or an “Affidavit of Forged Warrant” to DFA-OA-Reconciliation Manager.
The warrant will be cancelled in AASIS and the original invoice(s) will be reversed by DFA-OA-Reconciliation Manager, if a new warrant is to be issued. A duplicate warrant can be issued for a current year warrant only if the original is reported as a forgery.
Payroll Warrant Cancellation
Department of Finance and Administration - Office of Personnel Management (DFA-OPM) is responsible for the cancellation of all payroll warrants. All forms must be sent to DFA-OPM where they will be processed.
PLEASE NOTE: Generally, ACH warrants cannot be cancelled. ACH Warrants are payments that are made by direct deposit into a vendor's commercial bank account. If an agency requests the cancellation of an ACH warrant and that request cannot be processed, the agency must then contact the employee for a refund of the ACH warrant. Once the agency receives the refund, a deposit is to be made to the originating fund by the agency and a refund to expenditure must be completed to the originating fund to record the receipt of funds for both the prior year and the current fiscal year warrants. Appropriation will be restored for current fiscal year warrants only.
An “Affidavit of Forged Warrant” Form, P2-19-4-403, must be completed by the employee and submitted to the issuing agency for Payroll Warrant Cancellations where the employee is claiming that the warrant is lost or that the warrant has been forged. The original “Affidavit of Forged Warrant” must then be sent either by mail, inter-office mail, or personal delivery to DFA-Office of Personnel Management-Payroll Section (DFA-OPM-PS). The “Affidavit of Forged Warrant” will not be accepted by DFA-OPM-PS until the 6th day after the issuance of the warrant and after the agency contacts the Treasurer of State-Warrant Division either by phone or by e-mail to verify that the warrant has not been redeemed.
Upon receipt of the Affidavit of Forged Warrant” Form, DFA-OPM-PS will review and enter any action necessary in AASIS (i.e. voiding of warrant, reversal of payment). The “Affidavit of Forged Warrant” will then be delivered to the Treasurer of State-Warrant Division to be held in the event that the corresponding warrant is redeemed. If the Treasurer of State-Warrant Division has the original “Affidavit of Forged Warrant” and the original warrant is redeemed, the Treasurer of State-Warrant Division can then return the warrant and the “Affidavit of Forged Warrant” to the bank to attempt to receive a refund of the moneys. If the commercial bank does not refund the moneys to the Treasurer of State-Warrant Division, Treasurer of State-Warrant Division will notify the agency that the warrant was not collectable. It is the agency's responsibility to collect the amount of the warrant from the vendor. If after six months the agency is unable to collect, a claim will be filed with the Claims Commission to reimburse the Treasurer of State from the agency's funds and appropriation.
If the original warrant is redeemed prior to an “Affidavit of Forged Warrant” being filed with the Treasurer of State-Warrant Division and the reissued warrant is also redeemed, the Treasurer of State-Warrant Division will attempt to receive a refund of moneys for the original warrant from the commercial bank. If the commercial bank denies the “Affidavit of Forged Warrant,” the agency will be charged for both the original and the reissued warrant. The agency must then contact the employee to collect the overpayment. Once the overpayment has been collected, the originating agency will deposit the refund in the originating fund and complete a refund to expenditure. If the original expenditure was for the current year, the general ledger account to use is 6080001000 Refund to Expenditure - Current Year. The agency then must submit a “Refund to Expenditure” Form, P3-19-4-403, to DFA-OA-Reconciliation Manager. The “Refund to Expenditure” Form is then used to reinstate the appropriation for the current year. If the original expenditure was for prior year, the general ledger account to use is 6990003000 Prior Year Refunds to Expenditures. There is no adjustment of appropriation for prior year.
Payroll Warrant Cancellation with Reissue
Prior Year
For prior year payroll warrant cancellation, the agency must submit to DFA-OPM-PS a “Request for Reverse Payment Void,” P8-19-4-403, a copy of the “Remuneration (REM) Statement,” “Affidavit of Forged Warrant” and an additional two copies of each form. If the warrant cancellation is considered a forgery, the agency must also submit a “Bond for Reissuing Warrant,” P5-19-4-403. DFA-OPM-PS will forward the “Affidavit of Forged Warrant” to DFA-OA-Reconciliation Manager for the determination of whether a duplicate warrant can be reissued.
If a duplicate warrant is issued by the Auditor of State-Warrant Division, no cancellation is required.
PLEASE NOTE: Should the employee cash the original warrant for which the “Affidavit of Forgery” papers have been signed, criminal charges can be filed against the employee by the individual or business entity that cashed the warrant or accepted it for deposit.
Current Year
For current year payroll warrant cancellation, the agency must submit to DFA-OPM-PS an “Affidavit of Forged Warrant” and attach one copy. If the warrant cancellation is for a forgery, the agency must also submit a “Bond for Reissuing Warrant.” DFA-OPM-PS will forward the “Affidavit of Forged Warrant” to DFA-OA-Reconciliation Manager to make the determination of whether a duplicate warrant can be reissued.
If a duplicate warrant is issued by the Auditor of State-Warrant Division, no cancellation is required.
Outlawed Warrants
Refer to R1-19-4-703 “Outlawed Warrant Process” in this Guide. Questions concerning the outlawed warrant process should be directed to DFA-OA Reconciliation Manager. A list can be provided detailing all warrants that were outlawed by DFA-OA upon request.
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 006.09.1 R1-19-4-403, AR ADC 006.09.1 R1-19-4-403
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