With all the devastation and destruction that has taken place as a result of the hurricane that hit Puerto Rico {‘PR”) recently, there has been some question as to whether or not PR will be able to accept unclaimed property reports in the near term. Salva Doris Valentin, PR’s Unclaimed Property Supervisor, recently announced that their Office will continue to accept unclaimed property reposts and remittances as usual. No disruption has occurred. If you have any questions or need further information please email Salva Doris Valentin at SALVAD@ocif.pr.gov
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Important Update to Delaware Unclaimed Property Reporting
On September 29, 2017, the Delaware Secretary of State (“SOS”) announced an important update regarding the State’s Voluntary Disclosure Agreement (“VDA”) Program.
In two weeks (mid-October), the Delaware Secretary of State office will begin mailing notices to companies who have been identified as likely being out of compliance with Delaware law as it relates to reporting dormant, abandoned or unclaimed property. Companies that do not enroll in the Delaware SOS VDA Program within 60 days of the mailing of this notice WILL BE referred to the Delaware State Escheator for an unclaimed property examination. If an audit notice is issued, the Department of State will have no legal ability to accept a company into the SOS VDA Program.
The SOS VDA Program was put in place to respond to concerns about
Delaware’s ongoing audit program, and to encourage more companies to
come into compliance with their legal responsibilities as they relate to
abandoned and unclaimed property property. Through recent changes in the law, Delaware is providing every company with an opportunity to voluntarily comply prior to being issued an examination notice. Delaware’s SOS is urging all companies to take advantage of this opportunity to enroll in the SOS VDA Program.
For further information or questions on this new initiative Delaware is offering, along with the benefits that accompany it, please contact PEACC at 410.303.5510.
Delaware Voluntary Disclosure Agreement (VDA) Outline
DELAWARE VDA PROCESS OUTLINE
I) Enroll in Delaware VDA
A. Sign and submit Delaware Form VDA-1
II) Compile Delaware Information Request
A. Company history
B. Entities included in VDA
C. Mergers and acquisitions
D. Reporting history
E. Records availability
F. Property types included in VDA
i. Payroll
ii. Accounts Payables
iii. Accounts Receivables
iv. Refunds/rebates
v. Others
III) Scoping
A. Each entity included in VDA
i. Property types
1. Record availability
a. Trial balances
b. Bank recs
c. Outstanding check lists
d. Voided check lists
e. A/R aging reports
f. Other(s)
2. How far back do records exist?
a. Ideally to YEAR 1996
3. Lack of records
a. Estimation used
IV) Review of Records in Detail
A. Detailed review of each property type
B. For each entity
C. Estimation where records do not exist
V) Submit results to Delaware for review
A. Draft report submitted to Delaware
B. Delaware may select a sample to test to support findings
VI) Settlement and Payment
A. Delaware agrees to VDA findings
i. State Form VDA-2 completed and submitted to Delaware
ii. Remittance payment submitted
VII) Other State VDA’s
A. Final exposure for all other applicable States determined