20.22 - Unclaimed Property
Preamble. As specified by the Uniform Unclaimed Property Act and in accordance with IDAPA 35.01.11, “Idaho Unclaimed Property Administrative Rules,” any business or government agency holding funds that haven’t been claimed by an owner for a period of time is required to report any unclaimed property they hold. Each year all businesses and government agencies must review their records to determine whether they have any unclaimed property. Property becomes unclaimed when 1) there’s been no owner-initiated activity for a specified amount of time and 2) attempts to locate the owner have failed.
D. Contact Information
A. Definitions. Unclaimed Property Terms.
A-1. Active/Activity – an action taken on property by the owner, which may include making a payment to or receiving payments from the holder, or taking any action that according to the law is adequate to determine that the owner is aware of the property.
A-2. Due Diligence – the degree of effort required by law that an unclaimed property holder must exert to find the rightful owner before the property is sent to the state. Usually this is in the form of a “Due Diligence Letter.”
A-3. Dormancy Period – the period of time, also referred to as the abandonment period, during which an owner of property does not take action on his property. The dormancy period is determined by the type of property and may vary from one to 15 years.
A-4. Holder – the entity, usually a business or government agency, who controls the unclaimed property until it is transferred to the owner or the state on behalf of the owner.
A-5. Owner – a person having legal or equitable claim to the unclaimed property.
B. Policy. Idaho’s Unclaimed Property law requires that all businesses send written notification to owners who have aggregate unclaimed property with a value greater than $50. These notices, often called “Due Diligence Letters,” must be sent not more than 120 days before filing the unclaimed property report. If the business has evidence that the last known address for the owner is not valid, and can find no forwarding address, the property would be considered unclaimed and should be reported to the state.
B-1. Responsibility. General Accounting will report all unclaimed property accordingly for the dormancy period as determined by the property type from all departments by November 1 of each year for the previous period beginning July 1 and ending June 30.
C-1. The University will try to locate owners prior to reporting their funds to the Idaho Unclaimed Property Program. Using monthly bank reconciliations, Accounts Payable and Payroll staff will determine which payments require a due diligence notification. Written due diligence notices will be sent to the owners within 120 days before filing the unclaimed property report. These notices should identify the owner’s property and inform the owner that his property may be turned over to the Idaho Unclaimed Property Program.
C-2. General Accounting will work with Accounts Payable and Payroll to compile a list from bank reconciliation outstanding payments and returned undeliverable notifications to determine which payments should be forwarded to the state according to the Unclaimed Property Administrative Rules.
C-3. General Accounting staff will submit the holder data file electronically according to Unclaimed Property reporting requirements. The associated payment to the state will be made by Accounts Payable via electronic payment.
D. Contact Information. General Accounting is the primary resource center for this policy and is available to answer specific questions. Questions may be made to firstname.lastname@example.org.