Achieving unclaimed property compliance is no easy feat for companies. With rapidly changing laws that differ for each state, it is no wonder many holders struggle to report their unclaimed property correctly and on time from year to year. However, unclaimed property, can be manageable with proper training, documented procedures, technology and some help from the pros at Dunbar.
Mastering unclaimed property compliance begins with companies understanding they must pay equal attention to people, processes, and technology. . Doing so will help a company streamline the reporting process, minimize risk and become adept at change management as state laws and regulations evolve.
People are, perhaps, the most critical part of the unclaimed property reporting process and those managing this process likely have many other job responsibilities that tend to push their unclaimed property responsibilities “to the side of the desk”.
Since there is such a high cost if holders are found to be out of compliance, , those who manage the process need proper training, well-defined procedures, and the foresight to recognize potential areas of exposure. Such exposure can lead to penalty and interest assessments and multi-state audits. In addition, employees need support and oversight from management, proper internal controls, as well as cooperation and collaboration between various departments to get the job done.
When it comes to getting the job done, well-documented procedures can be a real lifeline for unclaimed property managers. This is especially important in large organizations, where multiple departments, and potentially multiple subsidiaries, must be in
tegrated into the reporting process. Policies and procedures should clearly describe the various property types that could become unclaimed property within an organization, list all statutory deadlines for due diligence and reporting with a timeline to meet the deadlines, speak to the nuances of various states and identify responsible parties for each step in the process. And finally, policies and procedures ensure consistency among the various departments and subsidiaries and can lessen the learning curve for new employees becoming involved in the process.
While technology can certainly eliminate manual processes and reduce risk within the organization, it can also present other challenges for unclaimed property managers.
ERP systems and core systems often do not capture the data points needed to satisfy state reporting requirements. As a result, companies must resort to manual processes and spreadsheets to record the owner and property information required by each state. Involving your information technology team to assist with automation can save time and eliminate some of the risk associated with manual processing.
Companies must understand reaching unclaimed property reporting compliance will likely be a much more difficult and time-consuming process than they initially expected. However, they do not have to attempt to achieve it alone. Dunbar’s consulting team works with organizations to bring people, processes, and technology together. By doing so, Dunbar works to reduce risks, maximize efficiencies, and ensure compliance with unclaimed property laws in all jurisdictions.
Dunbar is a reputable provider of unclaimed property compliance services, offering a comprehensive suite of solutions to help organizations remain compliant with all applicable laws. With a professional team with decades of experience, Dunbar is the ideal choice for businesses seeking a reliable and knowledgeable provider for their unclaimed property compliance needs.
