The purpose of this policy is to provide guidelines for authorizing, processing and distributing checks. It explores the responsibilities of accounts payable (AP) coordinators, who must handle all check distribution tasks after obtaining approval from senior management, specifically the senior vice president (SVP) and controller. The policy mandates specific days for check runs and emphasizes the importance of internal controls to ensure proper processing and authorization. It details the steps for entering invoice dates, creating and reviewing pre-check runs, and addressing any errors.

Additionally, it specifies the authorization requirements based on check amounts, ranging from no manual signature needed for smaller amounts to requiring signatures from the CFO and CEO for larger sums. The policy also includes security measures, such as restricted access to check stock and the accounting of check sequences. Furthermore, it mandates that signed checks be delivered by someone independent of the preparer and initiator for prompt mailing, with copies of invoices and check stubs being filed prior to mailing. This document is essential for maintaining financial integrity and ensuring compliance with organizational standards in the check distribution process.

According to this sample policy:

• The AP coordinator enters the date range for invoices due for payment to be processed within (Insert System Name).
• The AP coordinator will create a pre-check run and review it for reasonableness.
• If a pre-check run error has occurred, the AP coordinator will net out the entire check amount and reissue the check with the appropriate dollar amount.
• The senior vice president (SVP) and controller will review a check preview before processing and distributing checks.