Our Unclaimed Property Policy outlines procedures for managing unclaimed or uncashed payments, ensuring compliance with state regulations. This sample defines key concepts such as outstanding checks, uncashed checks and escheatable funds, while detailing the responsibilities of various departments within the organization. It emphasizes timely follow-up on unclaimed payments, mandates the transfer of stale-dated checks, and provides a framework for remitting unclaimed property.

Two samples are included in this tool. Sample 1 focuses on general procedures for handling unclaimed checks and ACH payments. Sample 2 offers a tailored approach detailing specific accounting treatments and reporting requirements. Both samples highlight the importance of accurate record-keeping and documentation to support compliance with state laws, ensuring that the organization maintains financial integrity and accountability in all of its operations.

Sample procedures include:

• Payments that remain uncashed or unclaimed 90 days after the issuance of payment require follow-up.
• Outstanding check accounts are used to hold unclaimed or uncashed payments during the state-mandated holding period.
• At the end of each fiscal year, all checks that have been outstanding for more than one year should be investigated and the source of the payable should be determined.
• Under the laws of most states, the abandoned property is required to be reported and turned over to the state government.