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Abandoned Property1

Division                

 

                                    Administration  And Finance

 

Department

 

                                              Accounting

 

                                Abandoned Property Policy and  Procedure

 

 

 

 

 

Policy

 

 

 

Worcester State University is subject to the Massachusetts Abandoned Property Law (M.G.L.c. 200A), that requires the University to exercise due diligence in attempting to locate owners of certain unclaimed property in its custody - (uncashed payroll checks, disbursement checks, student refund checks valued at $100 or more and outstanding for three years as of June 30 of the reporting year ) - and to make an annual report of its findings.

Procedure

 

 

 

 

1.     After June 30th of the reporting year, acquire and refer to the Commonwealth of Mass Department of Treasurer’s “Reporting Forms and Instructions” for specific regulations and procedures. 

 

2.     Begin the Due Diligence/notification process any time after the end of the given fiscal year – June 30th.   Run a Colleague Accounts Payable and Payroll Outstanding Check Register dated back to the oldest check number outstanding, ending with a date three years as of June 30th of the reporting year.

 

3.     Review Outstanding Check Reports and prepare an initial list of vendors/payees with o/s check amounts $100.00 or greater.  Include voucher number, check number / dollar amount, vendor/payee account number/ID and address for each individual account.

 

4.     Using the “Word” file “Abandoned” begin composing and completing letters of notification to each individual on the list of $100 or more. Note: Grant funds should not be sent to Abandoned Property. The WSU Grant Coordinator will contact the appropriate funder for final disbursement.

 

5.     Mail letters accordingly in order to comply with the 60 days notification before reporting and remitting unclaimed property to the Commonwealth.

 

6.     Each account will be allocated and categorized in an effort to remedy the outstanding item according to the solutions listed below.  

 

A.  A/P Responded – Reissue to Owner – Not Abandoned Property

                        B.  A/R Responded – Reissue to Owner – Not Abandoned Property

                        C.  A/P No Response – Reissue to Boston Abandoned Property

                        D.  A/R No Response – Reissue to Boston Abandoned Property

                        E.  Void Check – Reissue to M03/Prior Yr Refund – Not Abandoned Property

 

7.     Notify Info Tech and Accounts Payable regarding implementation and completion of Abandoned procedures to coordinate process of voiding checks, changing payee names and producing replacement checks.

 

8.     As needed, a new check can be reissued to owners who have properly claimed their property.  Void the original check number(s).  Advise the A/P Dept. that they should arrange to process these series of check runs separately (after they completed their regular-check-runs).   The A/P Dept. will need to back-date with the pertinent voucher issue date range/period.

 

9.     Place a “hold” “Y” on any voucher that you do not wish to print immediately or during an unscheduled or regular-check-run.

 

10.  Void Check numbers to be reissued to Boston for Abandoned Property purposes

 

11.   Advise the A/P Dept.  regarding the open vouchers – it may be necessary to request a hold on any future check runs until further notice from Info Tech.

 

12.  Send Info Tech a list of open voucher numbers and request Payee be changed to Vendor # 0168462, payable to Worcester State College, for all individual accounts that will be reissued to Boston as Abandoned Property.  Colleague will print a separate check for each individual account, voucher and vendor.  NOTE: Later a subsequent single check will be issued from M01 and payable to the Commonwealth for the sum of all individual accounts that will be reissued and submitted to Boston as Abandoned Property. 

 

13.  A list of vouchers number items that are to be invalidated may be combined with the Abandoned Property series or may be completed separately.  Send Info Tech a list of open voucher numbers and request Payee be changed to Vendor # 0168462, payable to Worcester State College, for all individual accounts that will need to be transferred to Cash Receipt M03 – Prior Year Refunds.  This M03 procedure is an effective alternative to the effects of  processing and voiding a prior year voucher expenditure  in the current fiscal year: avoid changing current year budget lines.

 

14.  NOTE: Info Tech will not need to process or change the payee on outstanding vouchers that are to be reissued to the owners that clamed their property.

 

15.  Waite for Info Tech to notify that “payee change” is complete.

 

16.  Once the “payee change” is complete, for the accounts that will be reissued to Boston as Abandoned Property and/or M03 notify Accounts Payable regarding the open vouchers and request a “separate-check-run”.  Instruct to use all “Vendor Types” in an effort to capture all check types: VEND, 1099, STUD, MISC and GOV. 

 

17.  Identify and separate the reissued checks by like items that will be reissued to Boston as Abandoned Property, M03 and the accounts that are to be reissued to the owners that clamed their property.

 

18.  Forward documentation for the Abandoned Property check items to the Bursar with an authorization to post to Cash Receipt “M01” – Unidentified Receipts acct# 1-322-001-70199.

 

19.  Forward documentation for the Invalid Voucher Expenditure check items to the Bursar with an authorization to post to Cash Receipt “M03” – Prior Year Refunds acct# 1-322-400-EEE50.

 

20.  Send check to individuals that claimed their property in the mail.

 

21.  Complete a A/P “Request for Payment Check” form to authorize a check issue and payable to the Commonwealth for all individual accounts that will be reissued to Boston as Abandoned Property.  Charge M01/Unidentified Receipts 1-322-001-70199.

 

22.  Use the “Mass Diskette Reporting System” software program to compile required Abandoned Property information regarding individual property owners. Complete “Form-AP-1 with detail regarding batch amounts using “holder Number” #17945 and get notarized.  ”Submit funds, diskette and form to State Treasurer Office Ashburton Place, Boston by certified mail or overnight UPS. kfl

 

 

 

Approved by Vice President/Date

 

 

Approved by Cabinet/Date

 

 

Revised Date

 

 

 

Last modified at 1/18/2012 1:25 PM  by Quill, Robin