Ever wonder what happens with old uncashed checks or accounts receivable credits?
Non-payroll checks become unclaimed property after three years, payroll checks become unclaimed property after one year. The University is required by law to report unclaimed property and each department needs to do their part to ensure the University complies with unclaimed property laws.
What is Unclaimed Property?
Unclaimed property is any form of abandoned property, such as uncashed checks or remittances, or other tangible financial property that the University is not able to return to the rightful owner. Every state requires that the abandoned property be turned over to the state of last known residence where it is held until the rightful owner can be located. When property is turned over to the state, it is considered escheated.
Who is responsible for complying with state laws on Unclaimed Property?
The unclaimed property function is a service performed for the entire University by Accounting Services, a unit within the Controller's Office. For more than 20 years, Accounting Services has handled the entire escheatment process, which includes sending out due diligence letters, in an attempt to find the rightful owners before funds are turned over to the state of last known residence.
The unclaimed property function automatically reviews unclaimed items recorded in the former legacy systems and the current Enterprise Financial System (includes vendor and employee reimbursement payments, payroll checks, student financial aid refunds, contingent and research payments, Preferred One and Patient Choice payments, and EFS accounts receivable credits).
Any non-payroll related payments or credits greater than two years old that are recorded outside of the former legacy systems and EFS are incorporated into an unclaimed property function once reported to Accounting Services by the respective department.
Unclaimed property does not handle checks/credits less than two years old, with the exception of payroll checks, or unclaimed incoming wire transfers. Unclaimed property also does not handle payroll checks less than one year old.
Am I obligated to report to the Accounting Services any unclaimed property tracked outside of PeopleSoft Financials?
Yes. Any check payments or non-payroll credits two years old or older as of June 30th of the current fiscal year, tracked by departments outside of the former legacy systems or EFS, must be reported. For example, accounts receivable credits or accounts payable-related over payments. Three years is measured by check issuance date, or in the case of credit balances, it is the last owner generated contact on account.
How does the University know if something is Unclaimed Property?
A credit on account or non-cashed check is considered unclaimed property if there has been no owner generated activity on the account or the check has remained uncashed for two years or longer. In the case of payroll checks or balances, one year or older is considered unclaimed.
Who do I call if I am aware of Unclaimed Property?
Please report the information to Accounting Services at email@example.com