AP Badge #10: Unclaimed Property-AP Badge #10

AP Badge #10 - PowerPoint

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This WASBO Badge #10 module explains Washington school district responsibilities for unclaimed property—money or intangible property owed to an individual or business that becomes “unclaimed” after a period with no owner contact and after the district makes a good-faith effort to locate the owner. The state’s Unclaimed Property Division (UCP) protects owners’ rights, relieves holders of liability, and benefits the public. Common district sources include uncashed payroll and accounts payable warrants, imprest/revolving fund checks, food service prepaid meal balances, and self-insured workers’ compensation or unemployment checks.<br /><br />School districts must report unclaimed property to UCP annually by October 31. For districts, property is presumed abandoned after one year; checks/warrants issued July 1–June 30 are reported the following year by October 31 (e.g., a June 1, 2023 uncashed warrant is reportable by Oct. 31, 2024). Reports must include all items that have met the dormancy period as of the preceding June 30, including items under $75; there is no minimum reporting threshold (items $50 or less may be aggregated, though itemized reporting is best practice). Districts that reported previously but have nothing to report should file a zero report. Electronic reporting is required (manual entry or spreadsheet upload).<br /><br />Due diligence notifications are required for items over $75 when a valid address exists, sent 60–180 days before the October 31 due date (email permitted with consent). Notifications should include payee name, check/warrant details, amount, return due date, the date it will be turned over to UCP, and district contact information; districts should retain documentation and track items (e.g., via spreadsheet). If the payee responds, the district cancels and reissues; if not, it cancels and treats the amount as unclaimed.<br /><br />Districts may either remit the total to UCP (food service meal balances must be remitted) or retain funds while still reporting; if retained, UCP directs claimants to the district, which pays the owner and provides proof to UCP. Accounting entries vary by option, often using liability account 630 when remitting. Voluntary disclosure is available for districts that have never reported.

Keywords

WASBO Badge #10

Washington unclaimed property

school district holder responsibilities

Unclaimed Property Division (UCP)

uncashed payroll warrants

accounts payable warrants

annual reporting October 31

one-year dormancy period

due diligence notifications over $75

food service prepaid meal balances