Financial Policy Handbook 2017

3. Lost or stolen checks (void and reissuance) a. Payee must wait 30 days for replacement of a check. b. A stop payment is only required in cases where risk of loss is considered high or the check is for amount over $1,000 c. Replacement checks may only be requested by the payee listed on the original check. Requests for a replacement check must complete the Replacement Check Request form. 4. Outstanding checks a. A letter will be sent to the payee notifying them of the outstanding check after 90 days outstanding. b. If the payee responds, the old check will be voided and a new check issued to the payee, if necessary, during the next check run. c. Amounts owed to vendors from outstanding and voided checks will be turned over to the Treasurer of the State of Iowa as prescribed by law. SECTION 3 - VENDOR MANAGEMENT The IRS requires the City to issue a Form 1099 reporting certain payments made to individuals and/or organizations other than corporation, governmental agencies, and tax-exempt organizations. Whether a payment is reportable on Form 1099 depends upon the payment amount, payment type and the supplier’s business entity type. Reportable payments include, but are not limited to: independent contractor services, consultant services, professional services (e.g., accounting and legal services), medical services (e.g., lab tests, physician services, billing/collection), commissions to non-employees, rent royalties, copyright payments, prizes and awards to non-employees, honoraria to non-employees, etc., as specified in IRS rules. The IRS allows for an exception to the requirement of producing a Form 1099 for most payments if the supplier’s business type is a corporation (as verified by Form W-9). This is called the “corporate exception.” However, the corporate exception never applies to suppliers that provide medical and legal services. Medical services include: Ambulatory services such as medical technician services, nursing services, physician treatment/care, therapy (all types), lab exams, consultations, billing and collections, but excludes prescriptions.