OFFICE OF MANAGEMENT & BUDGET
JULY 1, 1993
DIRECTORS OF ADMINISTRATION AND CHIEF FISCAL OFFICERS
CONTACT: RICHARD ANDERSON
The Office of Management
and Budget has provided a service to State
fiscal offices by not mailing appropriation accounting checks under
specific circumstances. The checks are commonly referred to as "HOLD
CHECKS." This circular letter establishes general guidelines for the
processing of hold checks to minimize the possibility of the misuse
of this service.
VALID HOLD CHECKS
Checks should not
be requested to be held as a normal course of
action. The following are valid reasons for requesting that checks
1. Reserve for
garnishments. Not for agency use.
2. Payroll deductions,
salary advances and payrolls which require
3. A travel advance
for a state employee.
4. Closing paperwork
must be signed with the presentation of the
check (e.g. right of way, construction).
5. The payee is
a foreign vendor. Extra postage is needed.
6. A letter or
order form must accompany the check.
7. Inmate wages
and gate money.
8. To save a cash
9. Mailing the
check would cause hardship to the vendor.
10. The payee
must receive the check at the completion of his
performance in accordance with the contract (e.g. entertainers, athletic
11. Other special
Under no circumstances
should fiscal officers use a State check as a
means of coercing vendors to complete or improve their services.
If a fiscal officer is dissatisfied with the performance of a vendor,
the processing of the state invoice at the agency should be delayed
until the problem is resolved.
DISPOSITION OF HOLD
Checks that are
valid holds should be held for the fiscal officer or
business manager of the agency requesting the hold check. It is the
fiscal officer's responsibility to make certain that appropriate
internal controls are maintained within an agency concerning the
disposition of hold checks.
EXCESSIVE HOLD CHECKS
in the opinion of OMB request an excessive number of
hold checks, may be subject to a more detailed review.
are directed to examine their reasons for requesting
hold checks and to eliminate all unnecessary hold check requests.
Appropriate action now will eliminate the need for additional review
by the Office of Management and Budget in the future.
Richard F. Keevey