Unclaimed Property

1. Unclaimed Property

2. History of Missouri’s Unclaimed Property Law • 48th State to pass the law • House Bill 1088 – 1984 – original legislation • House Bill 566 – 1993 - Moved to Treasurer’s Office • House Bill 1510 – July 2, 1998 – Abandonment period changed from 7 years to 5 years • Senate Bill 1248 – 2002 – Merged Escheat fund into Abandoned Fund

3. What Is Unclaimed Property? • MONEY • Financial Instruments • Financial Obligations • Safe Deposit Boxes are the only tangible items covered by the statutes.

4. Why Report Abandoned Property? • It’s the Law • Primary Purpose is to Protect an Owner’s Assets • Held in perpetuity for claimants by the State of Missouri

5. Claiming PropertyGovernmental Entities • Search our online database at www.showmemoney.com • Register names using our online email notification system at www.showmemoney.com • Check all names and derivatives of names commonly used by your entity.

6. Claiming Property • Public Relations Issue • Does not look good if the media states that your district is not cashing its checks.

7. Claiming PropertyPersonal • Search names for yourself, family, friends neighbors at www.showmemoney.com • Register names using our online email notification system at www.showmemoney.com • Forward located accounts via email to people that you find accounts for using our unclaimed property notification function.

8. Unclaimed Property Overview: • Returned a record 120,632 accounts totaling $36.3 million in FY11. • Largest amount returned was $6.1 million to one individual. • Over $85 million was reported in FY12. • Currently hold over $700 million in unclaimed assets in more than 4.5 million owner accounts. • The average return is $300. • 1 in 10 Missourians has Unclaimed Property.

9. Major Reporting Requirements of the Law • Identify Unclaimed Property • Perform Due Diligence prior to reporting the property • Report and Remit Unclaimed Property

10. Where to find Unclaimed Property • Outstanding check listings • Dormant account listings • Unidentified remittances

11. Abandonment Rules • All intangible property that is held, issued or owing in the ordinary course of a holder’s business that has remained unclaimed by the owner for more than 5 years after it becomes payable or distributable is presumed abandoned. (3 years for governmental entities)

12. Dormancy Periods • 5 years most all intangible property • 3 years – state agencies, political subdivision, local government entities • 7 years - money orders • 15 years - travelers checks • 1 year - court bonds • 2 years - dissolution of business

13. Cross Referencing Accounts • Accounts are only reportable if the account has no activity and has lost contact. • Cross Reference Accounts. For Example: If a payroll check has gone uncashed check to see if the payee is still employed or is receiving retirement benefits. Use that address to reestablish contact.

14. Due Diligence - What is it? • An attempt to locate the rightful owner of the property prior to reporting the property to the state

15. Due Diligence - What is required? • Mailing a letter to the last known address for property with a value over $50 • Notice sent first class mail within twelve months prior to reporting • Envelope must be marked “Return Service Requested”

16. Due Diligence Requirements (continued) • Efforts must be “reasonable and necessary diligence as is consistent with good business practice”, allow time for owner to respond • Notices and letters sent in the ordinary course of business, first class and “Return Service Requested” regarding unclaimed property satisfy the requirements

17. Reporting Unclaimed Property • Where do you send the report? • State of rightful owner’s last known address • If no address exists on record, State of Holder’s Corporate Domicile • Reciprocity reporting

18. Reporting Dates • School Districts • Report due November 1, using a June 30 cut off

19. Do’s and Don'ts of Reporting Unclaimed Property • Include Owner Detail • Names and last known address of owners • Identifying information • social security number • date of birth • account number • Amounts due owner • New in 2012 – Online holder data entry function

20. Methods to Verify the owner is “Lost” • Customer service telephone calls • Review telephone directories for address information • Perform inquiries via credit rating services and the internet

21. ITEMS TO DOUBLE CHECK • Be as complete as possible when filling out the report form • Make sure report is complete • Perform Due Diligence • Ensure report format matches state’s requirements • Report & Remit by the report due date

22. Missouri’s Unclaimed Property Holder Report • Available via the internet in both forms: www.showmemoney.com • Manual • New in 2012 – Online holder data entry function • Electronic Reporting is requested if reporting over 50 owners • Electronic Reporting is required if granted a filing extension

23. Unclaimed Property Holder Input System:

24. Registration Page

25. Adding New Report

26. Adding Properties to a Report

27. Adding Owner Information

28. Submitting Report

29. Finalizing Report

30. NAUPA • National Association of Unclaimed Property Administrators • Promote the exchange of property and information between states • Promote a better overall understanding of Unclaimed Property • web site - www.unclaimed.org

31. CONTACT INFORMATION Missouri State Treasurer Clint Zweifel Division of Unclaimed Property Post Office Box 1272 Jefferson City, MO 65102-1272 Site:www.showmemoney.com Email: scott.harper@treasurer.mo.gov

32. UNCLAIMED PROPERTY TIPS

33. CLAIMING UNCLAIMED PROPERTY • Look for property by: • District name • Buildings’ names • PTO names • Booster names • How are checks written to you?

34. School District’s Unclaimed Property • Consider all your accounts: • General Operating/Accounts Payable • Payroll • Bond issue accounts • Flexible Spending Accounts – checks written by Provider • Self-Insured Insurance Accounts – checks written by Provider

35. Avoiding Unclaimed Property • Review your outstanding check lists frequently • Quarterly • Annually as part of YE Procedures • Allows you to reissue checks which eliminates reporting

36. Avoiding Unclaimed Property Other Benefits: • No outstanding payroll-related checks • 403b/457 checks • Garnishment checks • Retirement • Taxes • Easier to contact vendor • Have physical paperwork

37. Avoiding Unclaimed Property Other Benefits • Maybe not really unclaimed property – item/service was cancelled and vendor told teacher they “would not cash the check.”

38. Unclaimed Property Tips • Do NOT re-use vendor numbers! • Consider checks without addresses • Athletic Officials • Presenters

39. Unclaimed Property Resources • Sources to find contact information • Former Employees • Human Resources • Separate database from vendor file • Retired Educators Association • PSRS/PEERS • Paying for insurance • Building that originated the check

40. What to Expect • How much is the check? • What was the check for? • When was the check issued? • Why didn’t you contact me before? • “It’s your fault I didn’t cash my check.” • Same names occur.

41. You will also hear . . . • That is when • I moved • I divorced • I had a death in the family • My daughter was married • Some other life event

43. What Information to Include? • Your contact name, phone number & address • I received a letter without a return address • Check Number • Date of Check • Amount of the Check • Invoice Number

44. What Information to Include? • Options to: • Reissue Check • Donate the Check Amount • Change Address or Last Name • Documentation required if name change or death • PROVIDE DUE DATE

45. Timing • November 1- the deadline to submit to the State • Send letters in August • Sept / Oct to reissue checks • Oct to enter unclaimed property holders in the State’s system and submit by Nov. 1

46. QUESTIONS?