Proper management of your unclaimed property liability is truly a year round job. There is no summer break; no winter break; no spring break. There is monthly work to be completed to stay compliant.
So what is coming up this summer? What should you be doing and what could you be doing to stay on top of the increasing demands of this important task of managing your unclaimed property?
Here is a recommended Unclaimed Property Summer Best ‘top 5 list’:
5. Review your current policies and procedures and document them: Attrition is commonplace in the world of unclaimed property. We see it every day! So is the lack of good audit trails and procedure documentation. The person stepping into this role is often inundated with compliance rules and requirements coupled with a lack of internal documentation. Document, document, document!
4. Consider an automation tool to assist with historical tracking: If you are trying to manage this manually, consider a state of the art, web based automation tool with compliance intelligence and comprehensive audit tracking capabilities. If you already have an automation tool in place, now is a great time to review those areas where manual work is still impacting your ability to effectively and efficiently manage the process. There are systems out there that are changing the game and face of unclaimed property compliance. Your team will thank you!
3. June – August Compliance: Several states have state reports or due diligence requirements throughout the summer months. Are you ready?
2. Take a dormant property inventory: Is there a chance you could have dormant property that is not being reported? So many companies think unclaimed property simply takes the form of uncashed checks. The state statutes are much more comprehensive. Now is a good time to do your homework, review the types of properties that your organization could be holding and make sure you are reporting ALL property types.
1. Perform a cost benefit analysis: If you are managing this work inside your organization, what are your internal costs? Would it make sense to consider outsourcing to a team of experts who live and breathe unclaimed property year round? Perhaps outsourcing could be a cost effective way to maintain compliance.
Hope you have an amazing summer!