When planning to ensure adequate recordkeeping and reporting cycles for unclaimed property compliance, one item often gets overlooked: staffing. This blog will help you maximize labor resources and avoid staffing issues that can lead to higher liability.
First, determine who is responsible for unclaimed property
In many companies, unclaimed property responsibility falls to a general finance department, such as tax, treasury or accounting. Some companies assign unclaimed property to dedicated compliance departments or industry specific departments, such as Deposit Operations in a bank or the Land/Division Order Department in oil and gas. In a way, it doesn’t matter who does it. The number-one criteria is simply the ability to keep up with the process and report effectively on behalf of the entire organization.
Because unclaimed property originates in different departments throughout an organization, it often is best to assign early process steps to those who best understand where the property comes from. Payroll, for example, best understands outstanding paychecks. After each individual department completes due diligence, remaining outstanding properties are turned over to an assigned department for collected recordkeeping and reporting. An outside advisory company can manage this part of the process, but a company liaison should be provided to gather records from all departments.