Escheat at Harvard University

Uncashed checks, also called outstanding checks, are checks issued by Harvard that have not been cashed by the intended payee. If a check remains uncashed for 180 days or longer, it becomes stale and is referred to as a stale-dated check, and banks will decline the check if the payee tries to cash it. If the check remains uncashed for a period of time, it becomes unclaimed property, also known as escheatment.

Taking action to follow up on an uncashed check (to a supplier or a visiting speaker, for example) in a timely manner supports proper stewardship of University funds, and decreases the time and effort needed to track and resolve stale checks.

Each state’s law adheres to different dormancy periods before a check is turned over to the state, therefore Harvard has contracted with a vendor to track and perform escheat requirements, including due diligence notifications and state payments of abandoned property. As a result, departments are no longer required to send due diligence letters.

Although due diligence letters are sent by our third party vendor, your assistance is still needed to identify checks that should be escheated, re-issued or redeposited. To prevent the checks from becoming escheatable, departments need to review any Accounts Payable checks that have not been cashed within 6 months and take action. To facilitate that research, the following tasks should be initiated periodically as indicated below.

Department Tasks

1. Run the Escheat Due Diligence Report dashboard in HART for Escheat Status All Column Values or NULL
2. Confirm services were rendered and the vendor/individual is still due the payment, for checks with a blank escheat status.
3. Research the vendor/individual and verify the following:
   • A duplicate payment was not issued.
   • Services were rendered

After it has been determined whether the check(s) need to be reissued or redeposited:

Reissues:

1. If the check is to be reissued, confirm the vendor and address are active in B2P
2. Complete Check Inquiry Request form
3. Email form to your supervisor for review
4. Email reviewed form to checkinquiryform@harvard.edu with the check number as the subject
5. Save the sent email as backup
6. Save a copy of the form and any back up from the payee

Redeposits:

1. If check is to be redeposited, complete the check inquiry form (see note below)
2. Provide a single 33-digit coding to be credited
3. Email form to your supervisor for review
4. Email reviewed form to checkinquiryform@harvard.edu with the check number as the subject
5. Save the sent email as backup
6. Save a copy of the form and any back up from the payee

Note for Escheat Redeposits:  

• Be aware that escheat check redeposits for checks issued in a prior calendar year to 1099 and 1042S vendors could have tax reporting implications.
  • For 1099-related questions, reach out to AP_CustomerService@harvard.edu.
  • For any 1042S vendors (individual or foreign entity supplier), do not process a check stop & redeposit without a prior review and approval from IPTC Customer Experience & Operations Manager, Maria Van Den Bosch.