309.1 - Procedure for Reconciling, Reporting, and Escheating Abandoned Property

Title

University of North Carolina at Chapel Hill Finance Procedure 309.1 - Procedure for Reconciling, Reporting, and Escheating Abandoned Property

Introduction

Purpose

To maintain appropriate fiscal reporting and ensure internal controls are met to prevent fraud, all imprest checking account, payroll account, accounts payable account, and petty cash account custodians must reconcile their accounts and report outstanding liabilities during the previous fiscal year at the conclusion of the current fiscal year to Cash Management. All unclaimed property escheats to the state of residence of the property holder. States have different time frames to escheat unclaimed property and the minimum threshold amount that requires a due diligence letter. North Carolina Escheat Statute (Chapter 116B) requires a one (1) year holding period before unclaimed property can escheat to the State.

Scope of Applicability

All imprest checking account, payroll account, accounts payable accounts and petty cash account custodians of the University of North Carolina at Chapel Hill.

Procedure

Accounting Services, Payroll Services, the Office of Sponsored Research, and Departmental petty cash and imprest checking account custodians will review outstanding checks periodically and report those that are outstanding for more than 360 days to the Cash Management Unit of Accounting Services. Please see the Sample of Time Table to Escheat Unclaimed Property for guidance on reportable dates.

Between 60 and 120 days prior to the check being outstanding for one-year, petty cash and imprest checking account custodians will make a final attempt to contact the payee of the outstanding check. If attempts to contact the payee are successful, the custodian shall void and reissue the check. If attempts to contact the payee are unsuccessful, then the check shall be escheated. All efforts in this process will be documented.

Exceptions

None.

Forms

• Finance Related Data 309.1.1rd - Uniform Escheatable Property Report

Related Requirements

External Regulations and Consequences

• North Carolina Escheat Statute (Chapter 116B), Escheats and Abandoned Property (G.S. § 116B-1 through § 116B-80)

University Policies, Standards, and Procedures

• Finance Policy 309 - Policy on Escheats
• Finance Policy 304 - Policy on Petty Cash Funds
• Finance Policy 306 - Policy on Imprest Checking (Bank) Accounts
• Finance Policy 704 - Policy on Distribution of Checks for Goods and Services
• Finance Procedure 704.1 - Procedure for Distributing Checks

Contacts

Policy Contact

Cash Management Unit of Accounting Services
Email: Cash_Management@unc.edu
Telephone: (919) 962-0036