Warrant Cancellations and Direct Deposit Cancellations and Reversals
Comptroller’s Office Responsibilities and Agency Responsibilities

Comptroller’s Office Responsibilities

Comptroller’s office staff deposits returned monies from direct deposit reversals to agency accounts when the money is returned through automated clearing house transactions.

Agency Responsibilities

A state agency must maintain communication with employees and staff to ensure that information on salary actions, leave without pay, new hires, terminations and retirements is communicated and processed in a timely manner to prevent errors and the need for warrant cancellations and direct deposit reversals to the greatest extent possible.

If the agency is unable to obtain sufficient information to ensure payrolls process correctly, which would prevent the need for cancellations and reversals, agencies must comply with Comptroller’s office requirements for cancelling warrants or for cancelling or reversing direct deposit of payroll.

If an agency is unable to reverse the direct deposit, or if the warrant was distributed before the error was noted, the payment is invalid and is most likely an overpayment. It is the agency’s responsibility to seek reimbursement directly from the employee. If the agency is unable to recoup the funds, the agency must place the employee on warrant hold as required by Texas Government Code, Sections 403.055(f) and (g).

Source

34 Texas Administrative Code Section 5.13: Paying State Employees Through Electronic Funds Transfers.