An interesting trend is developing in the unclaimed property compliance sector—states are using more contract auditors, which can be unfair to businesses and organizations.
A recent blog post by Moyer & Osibodu discusses this trend and its potential effects on the unclaimed property sector. According to the consulting firm, in many instances, states hire contract auditors to handle out of state audits, as well as to help supplement the regular audit staff. While this arrangement can be beneficial for the states, many businesses may not find the arrangement as beneficial.
In today’s difficult economic climate, states are looking more closely at their revenue streams. Unclaimed property, in all truthfulness, is one of those revenue streams. According to the National Association of Unclaimed Property Administrators, states collectively hold more than $33 billion in unclaimed property. While most states have departments committed to returning unclaimed property to its actual owner, less than 30% on average is returned, allowing cash-strapped states to use unclaimed money to fund various public interest projects.
The best way to avoid an audit—or to ensure that an audit is as worry-free as possible—is to maintain adequate unclaimed property policies & procedures and report all your past due unclaimed property to the state annually as required by law. Chesapeake’s Unclaimed Property Compliance System (UPCS®) offers a powerful automated framework that simplifies the labor-intensive tasks of complying with diverse unclaimed property laws in the various states. UPCS creates a permanent audit trail and transaction log of all activities performed, providing documentation to support efforts to comply with the regulations of all 54 U.S. reporting jurisdictions.
As Moyer & Osibodu will attest, “Nobody likes to be audited, and unclaimed property audits are no exception (because an average audit routinely generates multi-million dollars in assessment).”
For more information, you can contact Chesapeake Systems Solutions by calling 410.356.6805 or visit Chessys.com today! From retailers to banks and financial services organizations to insurance companies, Chesapeake solutions help minimize risk, reduce costs, and maximize profitability.
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