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This chapter provides check inscription requirements and details deposit procedures Government officers use when they receive payments in the form of checks and cash.

Section 2010-Conditions Under Which Collecting Officers Will Accept Checks

Government officers accept checks received subject to collection. If a check cannot be collected in full or is lost or destroyed before collection, the agency making the deposit must obtain the proper payment. Payment by check is not effective until the full proceeds are received.

Section 2015-Inscription on Checks

Remitters should inscribe checks to the order of the specific organization maintaining the account to be credited, not to the Department of the Treasury (Treasury). The payee organization should be sufficiently identified to ensure prompt delivery. However, if a check is made payable to Treasury, the agency should accept and process it immediately. I TFM 5-3000, Section 3030, contains instructions for handling checks received by one agency and made payable to another. Under no circumstances should remitters make checks payable by name to individual officers or employees of the Government.

Section 2020-Record of Checks Deposited

Depositors must keep records of deposited checks. The records should:

• Cross-reference each check to the applicable SF 215: Deposit Ticket.
• Include sufficient detail to process a stop payment and obtain a duplicate check if necessary. More specifically, the record for each check deposited should show:
    - The amount.
    - The name of the drawer.
    - The name of the person from whom received (if other than the drawer).
    - The bank on which drawn.
    - The date drawn.
    - The check number (if cashier's check or similar item).
    - The checking account symbol and serial number (if drawn on Treasury).
    - The serial number (if postal money order).

However, with this method, if a check or checks were lost in transit, the depositing agency must identify each payer to request a replacement check for the lost item(s). This process could represent a loss of time, effort, and expense (stop payment fees).

Therefore, while not required, the depositing agency should make copies of check deposits before dispatch to allow for replacement if the shipment or any part thereof is lost or destroyed in transit. The depositing agency may microfilm, photocopy, or digitally image checks, whichever is most effective based on the volume of items processed.

Then, the depositing agency could use check copies if a deposit is lost in transit. It may submit copies of the actual check to a financial institution for collection, in place of the original checks.

The depositing agency must indemnify the financial institution to which it sends the deposit. The indemnity is a written promise to hold the financial institution faultless if both the original check and the copy are "paid" and to repay the financial institution should the agency receive credit, for what is essentially the same item, twice.

Section 2025-Depositors' Endorsement and Legend on Checks Deposited

2025.10-General Depositaries

Depositors' endorsements (Appendix 1) on checks (including checks drawn to the order of Treasury) deposited at general depositaries for credit to the Treasury's account should include:

• The checking account symbol number and the agency location code (ALC) of either the agency or the Regional Financial Center (RFC), as appropriate (I TFM 5-1000, paragraph 1030.50).
• The words "For credit to the U.S. Treasury."
• The date of endorsement.

2025.20-ALC in the Endorsement of Checks

Depositors must show the same ALC as shown on the SF 215 in the endorsement on checks deposited at general depositaries. The ALC may be either the checking account symbol or the agency or RFC ALC, whichever is applicable (I TFM 5-1000, paragraph 1030.50).

2025.30-Federal Reserve Banks

Depositors' endorsements (Appendix 2) on checks (including checks drawn to the order of Treasury) being deposited at Federal Reserve Banks (FRBs) for credit to the Treasury's account should include:

• The agency name.
• The CA$H-LINK Identification Number (CIN) (Appendix 3).
• The words "For credit to the U.S. Treasury."
• The date of endorsement.

2025.40-CIN in the Endorsement of Checks

Depositors must show the same CIN on the SF 215 and the endorsement on checks deposited at FRBs. The FRB uses the CIN internally to expedite check and return processing.

2025.50-Modification of Endorsement

If a depositor's separate records show when individual checks are deposited, the date in the endorsement may be eliminated. Such endorsement form or content changes must always first be approved by Treasury (see the Contacts page).

Section 2030-Sorting and Listing Deposits to General Depositaries

Depositors need not sort checks deposited with general depositaries, but they must include an adding machine tape or other listing, unless other arrangements have been made by Treasury. General depositaries immediately will credit the account of the U.S. Treasury for items received before the designated close of business deadlines.

Note: Agencies may not deposit Treasury checks at a general depositary. Without exception, agencies must deposit all Treasury checks with the nearest FRB. They must include an SF 215 in the transmittal of Treasury checks to the FRB.

Section 2035-Sorting and Listing Deposits to Federal Reserve Banks

Depositors must prepare check deposits separately. They record commercial checks and Treasury checks each on separate SF 215s when depositing at an FRB. One commercial check and one Treasury check deposit constitute a daily deposit as described in I TFM 5-4000, Section 4020.

2035.10-Cash Deposits

Deposits made at FRBs must not contain cash. Depositors should convert cash to a money order and deposit the money order along with the checks. An agency may request use of a general depositary in the vicinity for handling its deposits, including cash; see I TFM 5-4000, paragraph 4010.10. An agency authorized by Treasury to use a general depositary prepares its deposits per the requirements of the depositary.

2035.20-Check Deposits

The depositing agency must:

• Separate commercial checks from Treasury checks.
• Include an SF 215 with all checks.
• Organize checks in bundles of no more than 400 items.
• Attach an adding machine tape or other listing that details all items in the bundle, the bundle total, and the ALC to the bundle.
• Enclose the bundle in a sealed package with the SF 215.
• Place labels on the outside of the package.

The FRB will credit Treasury's General Account on the date of deposit, if the items are received before the 2 p.m. local cutoff time.

Local Federal Reserve offices have 1-day deferred availability on unsorted/unencoded Government agency deposits. They apply the same published availability to sorted/encoded deposits that the FRBs extend to commercial banks. The local Federal Reserve office gives immediate exception processing to large checks of $100,000,000 or higher. Agencies should call the Banking Operations Branch in the Financial Management Service before submitting any check of $100,000,000 or more in a deposit (see the Contacts page).

The depositing agency forwards check deposits authorized to be made via mail to the FRB's check department at the address provided on the FRB Address List (Appendix 4).

2035.30-Amount-Encoded Magnetic Ink Character Recognition (MICR) Checks

Depositors need not sort checks that are amount-encoded (MICR) before deposit. An adding machine tape or other listing showing individual item and total deposit amounts must accompany the deposit. Depositors depositing more than 5,000 items daily should use amount encoders in their deposit operations. Depositors processing fewer than 5,000 items daily may determine if amount encoding equipment is cost beneficial by evaluating the following:

• The cost of the equipment.
• The FRB's availability and deposit deadlines.
• The FRB's processing cost.
• The internal agency operating efficiency.

For additional information, depositors may contact the appropriate FRB's Check Processing Department at the address provided on the FRB Address List (Appendix 4).

2035.40-Food Stamp Coupon Redemption

Depositors do the following when redeeming food stamp coupons:

• Place food coupons supported by a SF 215 face and top up in packages of 100 of each denomination ($1, $5, and $10).
• Bind each package with a standard paper strap, clearly identifying the depositor's name and location, coupon denomination, and date.
• Do not use tape, rubber bands, or paper clips (they interfere with machine processing).
• Show the number of coupons per denomination and the dollar total for each denomination on the Form Food and Nutrition Service (FNS) 521: Food Coupon Deposit Document.
• Forward the food coupons supported by an SF 215 and Form FNS 521 to the FRB.

Neither the FRB nor the Department of Agriculture is liable for food coupons lost in transit to the FRB. The FRBs immediately credit properly prepared food coupons received by the deadline for Government agency deposits. For further instructions, the depositor should contact the FRB with which it deposits the coupons.

2035.50-Special Sorting Arrangements

Treasury may establish, upon request of the FRB concerned, special sorting requirements (on an individual agency or location basis) for deposits including more than 1,000 items on a daily basis. (See the Contacts page.) The depositors must perform existing special sorting arrangements as applicable.

Section 2040-Counterfeit Currency

General depositaries must surrender to the Secret Service any suspected counterfeit currency deposited to Treasury's General Account. They also must provide depositors with a photocopy of the Secret Service Form 1604: Counterfeit Note Report, and/or any other documentation that accompanied the surrendered currency. Then, the depositors can contact the Secret Service to find out if the surrendered currency was determined counterfeit. Depositors must ensure that the general depositary processes an SF 215 for the amount of surrendered currency that the Secret Service determines is not counterfeit.

Direct inquiries concerning this chapter to:

Banking Operations Branch
Financial Services Division
Financial Management Service
Department of the Treasury
401 14th Street, SW., Room 435-A
Washington, DC 20227
Telephone: 202-874-6900

APPENDICES LISTING

Chapter appendices are only available in PDF version.

Transmittal Letter No. 603

Volume I

To: Heads of Government Departments, Agencies and Others Concerned

1. Purpose

This transmittal letter releases I TFM 5-2000: Checks and Cash Received in Collections. This chapter provides check inscription requirements and details deposit procedures Government officers use when they receive payments in the form of checks and cash.

Note: FMS is phasing out the printed distribution of TFM releases. This update will be the last printed release for this chapter. Users may access the TFM via the Internet at the following website: http://www.fms.treas.gov/tfm/index.html.

Effective December 2001, all TFM releases will be available on the Internet only.

2. Page Changes

Remove
Table of Contents for Part 5 (T/L 576)
I TFM 5-2000 (T/L 530)

Insert
Table of Contents for Part 5
I TFM 5-2000

4. Effective Date

Upon receipt.

5. Inquiries

Direct questions concerning this transmittal letter to:

Banking Operations Branch
Financial Services Division
Financial Management Service
Department of the Treasury
401 14th Street, SW., Room 435-A
Washington, DC 20227
Telephone: 202-874-6900

Date: October 4, 2001

Richard L. Gregg
Commissioner