UNCLAIMED PROPERTY

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UNCLAIMEDPROPERTY

• OSPS
• Revised May 23, 2008

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WHAT IS UNCLAIMED PROPERTY

• Generally Asset Being Held for a Person or Entity
  Which Cannot be Located or Contacted
  
• For OSPS
• Uncashed Employee Checks
• Uncashed Vendor Checks

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GOVERNED BY

• Oregon Revised Statutes
• Chapter 98.302-.436, 98.991-.992
• Oregon Administrative Rules
• Chapter 141-045
• Included are Definitions, Requirements of
  Holders, Timelines, Record Keeping, and Retention

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MORE INFORMATION

• For more information about Unclaimed Property in
  Oregon, refer to the following website
  
• http//oregonstatelands.us
• Follow links to Unclaimed Property, ORS, OARS,
  Reporting requirements

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WHO IS A HOLDER

• Any person or business entity in possession of
  property belonging to another
  
• Agencies have property in the form of uncashed
  employee and vendor checks
  

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WHEN DOES PROPERTY BECOME UNCLAIMED?

• Each state has its own laws governing Unclaimed
  Property
  
• In general, property is considered unclaimed when
  the holder has not had contact with the owner for
  a specific period of time
  
• Oregon Government and Public Authorities 2 Years

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DORMANT MAY NOT BE REPORTABLE

• Current employees or vendors may not respond to
  due diligence, HOWEVER there is contact The
  item is dormant, but not reportable
  
• Explore options to resolve the outstanding item

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SPECIFIC ITEMS TO NOTE

• OAR 141-045-0010, definitions, e.g.
• Dormant and Inactive basically means no activity
  or owner contact for a prescribed time
  
• Due Diligence is the degree of effort required by
  statute that holders of unclaimed property use to
  locate the owner before remitting to the
  Department of State Lands

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DUE DILIGENCE

• Per Statutes
• Holders of unclaimed property are required to use
  Due Diligence to locate the owner of property
  having a value of greater than 100.00 before
  reporting to Department of State Lands
• For property valued at less than 100.00, the
  holder may elect to perform due diligence

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Oregon Revised Statute 98.311

• Service Charges not generally allowed
• Holder may not deduct a service charge or fee or
  otherwise reduce the owners unclaimed account
  unless specific conditions are met

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REPORTING

• Annually In October
• Holders Shall Report and Deliver to Department of
  State Lands All Unclaimed Property
  
• NAUPA Format Required by Department of State
  Lands for Electronic Filing of Unclaimed
  Property
  
• OSPS Does This

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JULY 1ST

• Around July 1st
• OSPS Will provide each affected agency a list
  showing the checks that have not been redeemed
  for the prescribed time period. The report is
  E701-030-A (Outstanding Checks to be purged from
  Check Recon)
• 2008 Will show a listing of checks prior to
• July 1, 2006.

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REPORT E701-030-A(FIELDS)

• Agency
• Check Number
• Social Security Number
• Name
• Amount
• Issued Date
• Pay Period
• Set Number

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JULY 15th

• Review List and Verify (Each Check)
• Owner has not communicated in writing, nor shown
  interest in the asset
  
• Owner has no other accounts with holder (other
  agencies)

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AUGUST 15th

• Written notice to owner at last known address
  (all checks)
  
• Include a warning that their property will be
  sent to State Lands unless they respond before
  October 1st

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SEPTEMBER 15th

• Accounts greater than 100.00
• Use Due Diligence in trying to locate the owner
• Get creativeGood ideas on locating ownersShare
  with OSPS and other agencies

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DUE DILIGENCE

• Includes, but is not limited to
• Verify Owner is not a current employee (if
  current employee, suggest electronic deposit)
  
• Review telephone books for address and/or
  telephone verification, Search the Internet
  
• Owner is not a well known organization or
  individual (vendor)

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OCTOBER 1ST

• All Checks to be Rewritten Need to be Presented
  to OSPS (Please use the Lost Check form,
  (available on OSPS Website under Forms)
  
• Copy the List and your Backup Documentation and
  Return to OSPS

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TIMELINES

• By October 31st
• OSPS must annually furnish a report for Unclaimed
  Property, in proper format, to Department of
  State Lands.

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AGENCY RESPONSIBILITIES

• Agencies MUST adhere to the timelines and
  requirements
  
• Timelines are tight, work the lists early
• Larger Checks require more effort, start with
  those
  
• Document your efforts, keep three years after
  property is reported

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RESPONSIBILITIES (CONT)

• ORS 293.475 Issuance of Duplicate Checks
• Review checks to be sure they are Unclaimed
  Property (Research may show that some checks may
  need to be cancelled).
  
• Form Statement of Claimant
• Located on OSPS website under Forms/Replace a
  Lost Employee check or Replace a Lost Vendor
  check (same form for both)
  

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LOST CHECK FORM
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DONT FORGET

• It is critical to review and determine the status
  of checks of value greater than 100.00 and to
  use the effort needed to locate the owner
  
• Please process cancels and replacement checks
  once deemed appropriate
  
• No current employee should have funds go to State
  Lands
  

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COMPLETE THE PROCESS

• Finally, send list back to OSPS when completed
  with notes on what was done
  
• Questions or concerns should be directed to
• Kathyron Parsons, 503-378-6777 X243
• EMAIL kathyron.d.parsons_at_state.or.us

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WANT TO MINIMIZE THIS PROCESS???

• Review report provided each month (Check
  Reconciliation File)
  
• Dont let checks become Stale Dated
• By reviewing report monthly you can minimize
  Stale Dated checks in the future

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QUESTIONS OR COMMENTS?