This is a new Policy being introduced to the Department of Finance and UNC campus designed to standardize the escheat processes at the University. It effects all imprest checking account holders.
Business Owner: Brett Kenney, Cash Manager
Accounting Services’ Cash Management Unit holds primary responsibility to escheat University property in cooperation with Payroll Services, the Office of Sponsored Research, Accounts Payable, as well as Departmental petty cash and imprest checking account custodians. The majority of unclaimed property records are uncashed vendor checks. Departments with petty cash or imprest checking accounts are responsible for the proper reconciliation and reporting to Accounting Services of all property disbursed from their accounts that are unclaimed as these payments fall outside the University’s enterprise resource planning software, ConnectCarolina. Accounting Services performs the bank account reconciliation of the University’s main accounts payable checking account and reviews of unclaimed property and escheats unclaimed property. Accounting Services can advise and assist department on the reconciliation of their imprest bank accounts. This policy details the responsibilities of such property, states the scope of property affected and gives specific definitions of items related to this summary.
Accounting Services, Payroll Services, the Office of Sponsored Research, and Departmental petty cash and imprest checking account custodians will review outstanding checks periodically and report those that are outstanding for more than 360 days to the Cash Management Unit of Accounting Services. All imprest checking account, payroll account, accounts payable account, and petty cash account custodians must reconcile their accounts and report outstanding liabilities during the previous fiscal year at the conclusion of the current fiscal year and report year end balances to Cash Management. All unclaimed property escheats to the state of resident of the property holder. Between 60 and 120 days prior to the check being outstanding for one-year, petty cash and imprest checking account custodians will make a final attempt to contact the payee of the outstanding check. If attempts to contact the payee are successful, the custodian shall void and reissue the check. If attempts to contact the payee are unsuccessful, then the check shall be escheated. All efforts in this process will be documented.
An Excel file form will be made available in PolicyStat for departments to record outstanding checks and report them for escheating to Cash Management Services.
Interpretation/Implications of the Revisions
The introduction of this policy will help the University’s Financial systems maintain accurate fiscal reporting and fiscal health by ensuring that encumbered cash amounts are expedited and reconciled in a timely manner, bringing the University into compliance with State law. This policy will also curtail check fraud.
Stakeholders Impacted by the Revisions
All imprest checking account, payroll account, accounts payable account, and petty cash account custodians.