Unclaimed Property and Corporate Compliance News

What's in an Unclaimed Property Securities Audit?

A baby with moneyThe dreaded unclaimed property audit has taken a turn for the worse. In the past, many Delaware audits have focused solely on general ledger properties, including payroll, accounts payable, accounts receivable, rebates and gift cards.

New Jersey Proposes Changes to Unclaimed Property Regulations

New Jersey has proposed changes to its unclaimed property regulations. The proposal includes changes to last known address definitions, safe deposit boxes, dormancy fees, and other technical administrative updates. The biggest impact for most holders will come from the changes relating to last known address.

Last Known Address

What Happens to Gift Cards When Companies Go Bankrupt?

Bankruptcy law preempts state laws on gift card protectionsWhen a company sells gift cards to consumers, they exchange cash for a future liability to redeem in the gift card for services or merchandise. However, when a company goes bankrupt, the consumer is often left unable to redeem the gift card for merchandise.

Happy Independence Day!

US FlagsBarganier would like to send a special thank you to all those American veterans who served and are serving our country, especially Patricia and Alan's nephew John, who is currently in Afghanistan.

In honor of the holiday, our offices will be closed on July 4th and 5th. We will re-open on Monday, July 8 with normal business hours.

Please have a safe and enjoyable holiday with family and friends.

First Delaware Secretary of State VDA Program Deadline Approaching

In order to take advantage of the shortest look-back period of the Secretary of State's Voluntary Disclosure program, companies must indicate in writing to the Secretary of State that they intend to enter a Voluntary Disclosure Agreement by June 30, 2013.

Supreme Court Says No to States on Savings Bonds

Photo by smokedsalmon on FreeDigitalPhotos.netToday, the U.S. Supreme Court denied a petition to hear the appeal from several states regarding whether the federal government must turn over unclaimed savings bonds to the states as unclaimed property. The States estimated that the U.S. Treasury had $16 billion in unredeemed savings bonds.

Michigan Bill to Provide Additional Audit Protections

Smash the Piggy BankMichigan HB 4289 would provide holders with greater protections under an unclaimed property audit than current law provides for. Specifically, HB 4289 would require that audits be performed using Generally Accepted Auditing Standards, to the extent applicable to unclaimed property examinations.

Happy Memorial Day!

US FlagsBarganier would like to wish everyone a happy and safe Memorial Day! We would like to take this time to thank everyone who has or is serving in the military and their families. We also remember and honor those that gave the ultimate sacrifice during their service. Thank you!

Minnesota Ramping Up Audit Program

This past week, Patricia Barganier Thorn and Kimberly DeCarrera attended the National Association of State Treasurers’ Treasury Management Symposium. During the unclaimed property portion of the Symposium, Barganier learned that Minnesota has hired a new audit supervisor and is in the process of ramping up its unclaimed property audit program.

What This Means to Holders

Companies are required to report unclaimed property to each state. To enforce compliance, states have statutorily authorized the state administrators to conduct audits. Most administrators have also been authorized to hire third-party auditors to conduct the audits on their behalf.

California Sues Life Insurance Company for Impeding Audit

Photo by smokedsalmon on FreeDigitalPhotos.netCalifornia State Controller John Chiang has sued American National Insurance Company (ANICO) for failing to comply or cooperate with audit requests under a multi-state unclaimed property audit. The lawsuit was filed in Superior Court in Sacramento County.