In a new regular feature, Barganier will be profiling unclaimed property audits that went awry. These audits provide insight into the auditor's methods and motives, as well as stress the importance of ongoing compliance.

What happens when a Delaware Voluntary Disclosure Agreement (“VDA”) goes bad? In the case of Computer Associates, Inc. (“CA”), the VDA is terminated and Delaware opens a full blown audit. CA had an initial VDA estimate of $685,000 in 2005. When CA and Delaware finally settled under litigation in February 2010, CA paid $17,650,000 to the state.

States are increasing enforcement of unclaimed property statutes. Unlike many state compliance areas, there is little guidance from the U.S. Supreme Court or Congress, leaving a wild west feeling to unclaimed property. To help you get a handle on unclaimed property, Barganier and Associates has prepared this Top 10 tips for insurance companies for handling unclaimed property liabilities.

New York has changed the broker that handles securities for the Office of Unclaimed Funds (OUF). Citibank is now the broker of record for the OUF. If your company is reporting securities, please make sure that the account numbers are updated before sending your wire transfer.

All transferred securities must be registered in the name of the Comptroller. Securities that are transferred in any other name will be returned, thus leading to interest assessments.

Currently, there are three bills (and their companions) before the Wisconsin state legislature to modify the Wisconsin Unclaimed Property statutes. These bills were introduced at the request of and with the full support of the State Treasurer Kurt Schuller. Schuller is expecting to see movement on these bills in the next few weeks.

In particular, companies reporting unclaimed property should be interested in SB 296 (AB 419) which would change the mandated interest of 18% to 12% at the option of the Treasurer for late reporting.