Spring 2011 issue of Horizons

Don’t Forget About Unclaimed Property Laws! Unclaimed property (sometimes referred to as “abandoned”) refers to accounts held by entities— for-profit or not-for profit—that have had no activity generated or contact with the owner for a one year or longer period. These entities are generally referred to as the “holder.” States have enacted unclaimed property laws that protect funds from reverting back to the holder if the holder has lost contact with the owner. Unclaimed property laws usually instruct the holder to report annually and turn forgotten funds over to state officials, who will then make a diligent effort to find the holder or the holder’s heirs. The dormancy period varies state by state (see the chart below). Most states hold lost funds until the owner is found. Reversing unclaimed property accounts - such as old outstanding checks - through an organization’s statement of activities does not eliminate the obligation to turn over unclaimed property to state officials. Unclaimed reports should be filed annually even if no unclaimed property needs to be returned. This limits the look-back period for state unclaimed property audits. Penalties may apply for the failure to report and remit unclaimed property. CO IL KS MO Unclaimed payroll checks 1 Yr 1 Yr 1 Yr 5 Yr Outstanding gift certificates 5 Yr 5 Yr N/A 5 Yr General Vendor A/P 5 Yr 5 Yr 5 Yr 5 Yr Credit Balance in A/P 5 Yr 5 Yr 5 Yr 5 Yr *Banks or other financial institutions have special dormancy periods Unclaimed property dormancy periods*:

Want to Know More About 403(b) Plans?

In late January, RubinBrown hosted its annual Not-For-Profit Update for our clients and contacts. A number of questions were raised regarding oversight for retirement plans and common plan operating problems. Due to the response, RubinBrown has scheduled a seminar on this topic: 403(b) Plans: Compliance and Administrative Issues May 11, 2011 Two Sessions - morning & afternoon RubinBrown St. Louis Office Register at www.rubinbrown.com

RubinBrown’s Not-For-Profit Services Group As a recognized leader in the not-for-profit sector, we have the resources essential to serve arts and cultural organizations, foundations, private schools, religious organizations, social service agencies and trade and membership associations.

Judy Murphy, CPA - St. Louis Partner-In-Charge Not-For-Profit Services Group judy.murphy@rubinbrown.com 314.290.3496

Chip Harris, CPA - Kansas City Partner Not-For-Profit Services Group chip.harris@rubinbrown.com 913.499.4426

Russ White, CPA, MBA - Denver Partner

Not-For-Profit Services Group russ.white@rubinbrown.com 303.952.1247

www.rubinbrown.com

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