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 unclaimed property, primarily in the form of uncashed checks issued from university checking accounts to include payroll checks, accounts payable checks, and departmental imprest checking account checks, must reconcile their accounts and report outstanding uncashed checks from 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 accounts, payroll account, and accounts payable account of the University of North Carolina at Chapel Hill.  Additionally, all other unclaimed property reported by departments of the university to include student account credit balances by the Cashier's Office and supplier credit balances by Accounts Payable.

Definitions

Escheat - the succession of abandoned property to the State. It results from the failure of a person legally entitled to the property to make a valid claim against the holder of the property within a prescribed period.

Owner - a person who has a legal or equitable interest in property subject to this Chapter or the person's legal representative. The term includes a depositor in the case of a deposit, a beneficiary in the case of a trust other than a deposit in trust, and a creditor, claimant, or payee in the case of other property.

Person - means an individual, business association, financial organization, estate, trust, government, governmental subdivision, agency, or instrumentality, or any other legal or commercial entity.

Property - means

  1. Money or tangible personal property held by a holder that is physically located in a safe deposit box or other safekeeping depository held by a financial institution within this State or
  2. A fixed and certain interest in intangible property or money that is held, issued, or owed in the course of a holder's business, or by a government, governmental subdivision, agency, or instrumentality, and all income or increments therefrom.

The term includes property that is referred to as or evidenced by:

  1. Money, a check, draft, deposit, interest, or dividend;
  2. Credit balance, customer's overpayment, gift certificate, security deposit, refund, credit memorandum, unpaid wage, unused ticket, mineral proceeds, or unidentified remittance;
  3. Security or other evidence of ownership of an interest in a business association;
  4. A bond, debenture, note, or other evidence of indebtedness;
  5. Money deposited to redeem stocks, bonds, coupons, or other securities, or to make distributions;
  6. An amount due and payable under the terms of an annuity or insurance policy, including policies providing life insurance, property and casualty insurance, workers' compensation insurance, or health and disability insurance; and
  7. An amount distributable from a trust or custodial fund established under a plan to provide health, welfare, pension, vacation, severance, retirement, death, stock purchase, profit sharing, employee savings, supplemental unemployment insurance, or similar benefits.

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.

Sample of Time Table to Escheat Unclaimed Property
Beginning of Fiscal Year End of Fiscal Year Holding Period Due Diligence Period Escheat Date
July 1, 20X1 June 30, 20X2 June 30, 20X3 July 1, 20X3 - September 30, 20X3 November 1, 20X3
July 1, 20X2 June 30, 20X3 June 30, 20X4 July 1, 20X4 - September 30, 20X4 November 1, 20X4
July 1, 20X3 June 30, 20X4 June 30, 20X5 July 1, 20X5 - September 30, 20X5 November 1, 20X5
July 1, 20X4 June 30, 20X5 June 30, 20X6 July 1, 20X6 - September 30, 20X6 November 1, 20X6

Between 60 and 120 days prior to the check being outstanding for one-year, 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

University Policies, Standards, and Procedures

Contacts

Policy Contact

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

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Details

Article ID: 131507
Created
Thu 4/8/21 9:10 PM
Modified
Tue 3/5/24 9:32 AM
Effective Date
If the date on which this document became/becomes enforceable differs from the Origination or Last Revision, this attribute reflects the date on which it is/was enforcable.
06/28/2019 12:00 AM
Issuing Officer
Name of the document Issuing Officer. This is the individual whose organizational authority covers the policy scope and who is primarily responsible for the policy.
Issuing Officer Title
Title of the person who is primarily responsible for issuing this policy.
Cash Manager
Last Review
Date on which the most recent document review was completed.
03/04/2024 12:00 AM
Last Revised
Date on which the most recent changes to this document were approved.
03/27/2023 12:00 AM
Next Review
Date on which the next document review is due.
03/27/2025 12:00 AM
Origination
Date on which the original version of this document was first made official.
06/28/2019 12:00 AM
Responsible Unit
School, Department, or other organizational unit issuing this document.
Finance and Budget