The standard practice of the City has been to void outstanding checks and record them as stale after a year from issue date. The original accounts are then credited for the expenditure. The checks with an amount of less than $15.00 are transferred to a revenue account and the rest are transferred into the unclaimed property account until they are either claimed or classified as miscellaneous revenue in due time. The list of unclaimed property is posted to the City’s website monthly and published in the newspaper annually.
State of California Government Code Sections 50050-50056 provide provisions for local agencies regarding unclaimed properties. Section 50050 states in part “money…that is not the property of a local agency that remains unclaimed in its treasury…for three years is the property of the local agency after notice if not claimed or if no verified complaint is filed and served…notice to be published once a week for two successive weeks in a newspaper of general circulation in the local agency.” In order to comply with the acts and conditions required by the code, the following steps were taken:
- Identified all outstanding checks voided from July 1, 2015, through June 30, 2016.
- Verified which checks were legitimate payables and confirmed that they were not replaced or re-issued.
- Compiled names and known addresses of payee, check numbers, dates, amounts, and account numbers charged.
- Charged back original account numbers and credited the unclaimed property liability account to hold the unclaimed funds. Checks with amounts of less than $15.00 were transferred into other revenues.
In July 2019, 99 letters were sent to the last known address of payees to notify them of the unclaimed property. Of the 99 letters sent, only 11 responses were received. It is staff’s recommendation to publish the list of names of the remaining 88 unclaimed accounts held in unclaimed property (see Exhibit A). Any monies not claimed within 60 days after publication of the first notice will become property of the City and will be transferred to the Others Revenues in the issuing fund. The expected publish dates are September 21, 2019, and September 28, 2019, which would result in a final claim date of November 20, 2019.