Press Release- Dec. 23, 2014
Delaware Senate Majority Caucus
For immediate release
Contacts: Jesse Chadderdon (302) 744-4282 or (302) 743-0945
Delaware Senate Majority Caucus
For immediate release
Contacts: Jesse Chadderdon (302) 744-4282 or (302) 743-0945
Task Force: State can improve transparency, predictability when dealing with unclaimed property
Delaware should be more transparent and predictable in reviewing and ultimately taking possession of unclaimed property, recommends the Unclaimed Property Task Force in today’s report to the Governor, the President Pro Tempore of the Senate and the Speaker of the House of Representatives.
The State derives revenue from dormant unclaimed properties, which are defined in various ways based on the type of asset in question. Unclaimed property can include: dormant checking and savings accounts; uncashed money orders or cashiers’ checks; unclaimed insurance benefits; mineral royalty payments; safe depository contents; unused gift certificates; dividends, stocks or bonds; utility deposits or refunds.
“This report reflects the intense review of a broad group of stakeholders,” said Sen. Bryan Townsend, D-Newark, who co-chaired the Task Force. “Rulings of the U.S. Supreme Court over the past 50 years have put Delaware in a unique, privileged position within the unclaimed property universe. This report contains important recommendations for what Delaware can do to improve our auditing processes and transparency, while balancing valid revenue considerations with equally valid concerns of various stakeholders."
Although changes have been made in recent years that have helped connect owners and their property prior to the State taking possession, there remains room for improvement, the Task Force found.
Among its other recommendations, the Task Force suggests the Department of Finance draft a manual containing procedural guidelines for unclaimed property audits. It also recommends the General Assembly pass legislation modifying the appeals process to strengthen the role of a third-party reviewer by replacing the Secretary of Finance as the final arbiter in the administrative appeals process with someone from outside the department. Other recommendations seek to achieve more balance in the State’s selection of contract auditors, to place restrictions on high-level employees’ ability to move from their State offices to contract auditors, and to shorten how far back in time the State can go for estimating a company’s unclaimed property liability.
“These recommendations, if fully implemented, will seriously change the Delaware unclaimed property audit process for the better and improve how Delaware is perceived by the national business community,” said Michael Houghton, chairman of the State’s Uniform Law Commission. “Shortening the so-called ‘look back’ period—the number of years involved in the audit—from 34 years to a materially shorter period will be significant. And retooling the appeals process and the statute of limitations for filers, shortening the length of contracts with outside auditors, rebalancing the assignment of work among audit firms to avoid over reliance on one firm, putting public and transparent audit standards in place —these are all critically important changes.
“We now need to work diligently to make these ideas a reality between now and June 30, 2015,” Houghton added.
The full Task Force report is available here.
The 15-member Task Force included a wide-range of stakeholders: members of the General Assembly, Governor’s Office, Department of Finance, Controller General’s Office and members of the legal and audit communities.
The State derives revenue from dormant unclaimed properties, which are defined in various ways based on the type of asset in question. Unclaimed property can include: dormant checking and savings accounts; uncashed money orders or cashiers’ checks; unclaimed insurance benefits; mineral royalty payments; safe depository contents; unused gift certificates; dividends, stocks or bonds; utility deposits or refunds.
“This report reflects the intense review of a broad group of stakeholders,” said Sen. Bryan Townsend, D-Newark, who co-chaired the Task Force. “Rulings of the U.S. Supreme Court over the past 50 years have put Delaware in a unique, privileged position within the unclaimed property universe. This report contains important recommendations for what Delaware can do to improve our auditing processes and transparency, while balancing valid revenue considerations with equally valid concerns of various stakeholders."
Although changes have been made in recent years that have helped connect owners and their property prior to the State taking possession, there remains room for improvement, the Task Force found.
Among its other recommendations, the Task Force suggests the Department of Finance draft a manual containing procedural guidelines for unclaimed property audits. It also recommends the General Assembly pass legislation modifying the appeals process to strengthen the role of a third-party reviewer by replacing the Secretary of Finance as the final arbiter in the administrative appeals process with someone from outside the department. Other recommendations seek to achieve more balance in the State’s selection of contract auditors, to place restrictions on high-level employees’ ability to move from their State offices to contract auditors, and to shorten how far back in time the State can go for estimating a company’s unclaimed property liability.
“These recommendations, if fully implemented, will seriously change the Delaware unclaimed property audit process for the better and improve how Delaware is perceived by the national business community,” said Michael Houghton, chairman of the State’s Uniform Law Commission. “Shortening the so-called ‘look back’ period—the number of years involved in the audit—from 34 years to a materially shorter period will be significant. And retooling the appeals process and the statute of limitations for filers, shortening the length of contracts with outside auditors, rebalancing the assignment of work among audit firms to avoid over reliance on one firm, putting public and transparent audit standards in place —these are all critically important changes.
“We now need to work diligently to make these ideas a reality between now and June 30, 2015,” Houghton added.
The full Task Force report is available here.
The 15-member Task Force included a wide-range of stakeholders: members of the General Assembly, Governor’s Office, Department of Finance, Controller General’s Office and members of the legal and audit communities.
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Press Contacts
Scott Goss
Communications Director
(302) 744-4180
scott.goss@delaware.gov
Dylan McDowell
Communications Assistant
(302) 744-4282
dylan.mcdowell@delaware.gov
Scott Goss
Communications Director
(302) 744-4180
scott.goss@delaware.gov
Dylan McDowell
Communications Assistant
(302) 744-4282
dylan.mcdowell@delaware.gov