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Steven Swaigenbaum of TPC

AP & P2P Conference 2017 Recap

By: Steven Swaigenbaum Jim Sadik |

Jim Sadik and I recently exhibited and presented at the 2017 IOFM AP & P2P conference in Las Vegas.  AP & P2P connects Accounts Payable executives, leadership and their teams, to focus on issues impacting their departments daily including procurement, payment automation, fraud, and compliance. True Partners was proud to connect with numerous Accounts Payable professionals via our exhibit booth and our interactive session: Accounts Payable & Unclaimed Property: How Reporting Obligations and Audit Tactics Impact AP Departments and Shared Services Centers.

Key Takeaways from the presentation were:

  • Audit tactics continue to require companies to maintain meticulous records
  • Statistical sampling can be utilized to build efficiencies in calculating an unclaimed property liability calculation
  • Shared Services Centers can be helpful in streamlining unclaimed property compliance from a disbursements perspective

We received quite a few questions from session attendees and we wanted to share those with you, in case you might have some of the same questions:

Q: What parameters are auditors utilizing to schedule accounts payable transactions as unclaimed property?

A: Generally, auditors will schedule all voided checks and outstanding checks at 30 days and 90 days from the original issuance date, respectively.  While this is an aggressive tactic, without proper supporting documentation, the presumption is that these transactions represent unclaimed property.

Q: How long should a company maintain supporting documentation, in case a company is ever audited for unclaimed property?

A: While every jurisdiction has its own record retention provision, a general rule of thumb is to maintain accounting, treasury, due diligence and reporting documentation for fifteen (15) years to cover a reporting period of ten (10) years for jurisdictions with a five (5) year dormancy period.  This meets the provisions of both Delaware and the guidelines of the Revised Uniform Unclaimed Property Act (RUUPA).

Q: When undergoing an unclaimed property internal review or audit, should a company focus on the largest dollar transactions first?

A: From a state actuals perspective, yes; the largest dollar items will lend themselves to the largest liability.  Keep in mind however, if your company does not maintain records for the entire review scope, a portion of your liability may be estimated to your state of corporate domicile.  If statistical sampling is utilized, the largest dollar transactions may not necessarily have the greatest impact on a company’s overall unclaimed property exposure.

We had a great time at AP & P2P 2017 and want to thank the IOFM team for putting on a great conference. If you have any questions, please feel free to send me or Jim an email at Steven.Swaigenbaum@tpctax.com or Jim.Sadik@tpctax.com.