Drinker Biddle & Reath at the Forefront of Multi-State Voluntary Review Programs

January 7, 2020

In a recent communication from Drinker Biddle & Reath (“DBR”), one of the state agents for the Delaware Secretary of State’s Unclaimed Property Voluntary Disclosure Agreement Program, we were informed that the states of Missouri and North Dakota have now engaged DBR to serve in a similar capacity as they currently serve for Delaware.

Agreements for the Missouri Voluntary Examination and North Dakota Contractor Assisted Self-Audit were provided by DBR for holder consideration. Similar to the Delaware Voluntary Disclosure Program, these agreements include the following holder requirements:

  • File a final report within two years of agreement execution
  • Disclose the entities reviewed
  • Perform due diligence prior to reporting
  • Assert as to the completeness of records
  • Report past due property for the last 10 report years
  • File annual reports prospectively

With the addition of Missouri and North Dakota to the state agent voluntary review process, we believe it is now more opportunistic than ever for holders to perform a holistic review of their books and records to determine any past due liabilities to all states and jurisdictions. As unclaimed property is at the forefront of the states’ mindset, and with the states having more tools than ever to determine whether companies are in compliance with statutes and to identify audit targets, a proactive approach is always warranted and can generally lead to a much favorable outcome than an audit.

As the review and quantification of historical unclaimed property liabilities is a complex and involved procedure, especially where estimation techniques are being applied, partnering with an unclaimed property professional is recommended. This partnership can provide holders with guidance to determine exposure, or risk, allowing them to be proactive and lessen potential issues. 

Contact Us for a no cost/no risk consultation to discuss Voluntary Disclosure Programs or any unclaimed property questions.

 

 


Categories: Audit & Consulting, VDAs
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