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Warrant Policies
Replacement Warrants

Warrants that have been reported as lost, stolen or forged require a warrant cancellation by the paying agency so that a replacement can be issued.

To comply with Texas Government Code, Section 403.054 and Texas Administrative Code, Section 5.140, a replacement warrant may be issued as a warrant or a direct deposit payment to avoid the risk of another lost, stolen or forged warrant.

This policy applies only to warrants issued via the Uniform Statewide Accounting System (USAS). Payroll warrants issued via one of the statewide payroll systems may only be replaced as a warrant through the payroll system from which it was issued.

To issue a Replacement in USAS… The following fields are required…
By warrant
  • PDT (Payment Distribution Type) Must enter a V.
    • The PDT of V tells USAS to issue a warrant. If the payee is on hold due to a state debt, USAS automatically assigns the PDT of VH, indicating the warrant is a replacement warrant “on hold” due to a state debt.
    • If the payee was not on hold at the time the original warrant was issued but is on hold at the time a replacement warrant is issued, the replacement warrant will be held.
  • PMT DUE DATE must be the same as on the original transaction(s) to avoid late payment interest.
  • VEND/MC (vendor number/mail code) must be the same as on the original warrant.
  • ORIG PMT DATE. Must enter the payment issue date of the original warrant.

The date required in this field ensures compliance with Texas Government Code, Sections 404.046 and 403.054 by ensuring that the replacement void date is the same as the void date of the original warrant.
By direct deposit

If the payee is set up to receive payments by direct deposit, the PDT field must be blank.

  • If a PDT of V or R is used, direct deposit is overridden, and a warrant will be issued.
  • If the payee is on direct deposit and on hold at the time the replacement payment is processed, a warrant will be issued and held at the Comptroller’s office. USAS assigns the PDT of DH to the held warrant.
  • VEND/MC. (vendor number/mail code) Must be the same as on the original warrant.
  • IC (Interest Control) must be R with Reason Code RD, Returned direct deposit or Replacement of warrant by direct deposit, to reject late payment interest. See Interest Control Reason Codes (ICRC).
  • If the original payment included late payment interest, the replacement payment transaction must include the original amount of interest paid using object code 7806 (Prompt Payment Interest).
  • If the replacement payment transaction requires a PMT DUE DATE, use:
    • The original payment distribution date
      –OR–
    • The original PMT DUE DATE.
For returned direct deposit payments

A direct deposit payment may be returned to your agency for various reasons, which may include, but is not limited to:

Replacement Void Date

Gov. Code, Sec. 403.054(c) requires a replacement warrant to reflect the same fiscal year as the original warrant and the void date to be the same as the original warrant.

The following are examples of a USAS transaction to replace a warrant with:

  • An original issue date of 07/08/20 (fiscal 2020).
  • A void date of 08/31/22 (fiscal 2022).
  • A transaction processed in May 2022 (fiscal 2022), the year the original warrant will void.
If the required… Then the replacement void date…
PDT of V and Payment Issue Date of 07/08/20 are entered or submitted to USAS, Will be 08/31/22 (fiscal 2022), which equals the void date of the original warrant, as required by Sec. 403.054(c).
PDT, Payment Issue Date and IC/Reason Code fields are blank, Will be 08/31/24 (fiscal 2024), two fiscal years beyond the original void date of 08/31/22, a violation of Sec. 403.054(c) which would result in an audit finding.

Replacing Warrants Before Void Date

When canceling and replacing outstanding warrants that are scheduled to void each Aug. 31 as listed on the Outstanding Warrants Control Report (DAFR8171), agencies should allow enough time:

  • To issue a replacement warrant before the Aug. 31 void date.
  • For the payee to receive the replacement warrant in the mail before the Aug. 31 void date.
  • For the payee to cash the replacement warrant before the Aug. 31 void date.

Example

On Aug. 24, 2021, a warrant with a void date of Aug. 31, 2021, is canceled and reissued as a replacement warrant. When complying with the replacement warrant requirements above, the replacement warrant also voids Aug. 31, 2021, based on the date required in the ORIG PMT DATE field. This time period only allows one week to mail the replacement warrant and for the payee to cash the warrant before Aug. 31.

If the payee receives and cashes the replacement warrant after Aug. 31, 2021, it will be rejected by Treasury Operations and returned to the financial institution, which may result in a potential charge against the payee.

It is recommended that agencies review their DAFR8171 at least three to six months before Aug. 31 each year. If replacement payments are needed, agencies should consider coordinating a direct deposit payment with the payees to minimize the risk of a lost or stolen warrant or delaying the delivery of the replacement warrant.