BUSINESSES REQUIRED TO REPORT UNCLAIMED FUNDS BY NOVEMBER 1

Ohio businesses in possession of unclaimed funds are required to report them to the Ohio Department of Commerce's Division of Unclaimed Funds by November 1, 1999. The reporting deadline for life insurance companies is May 1 of each year. The only business entities exempt from reporting are some hospitals and government offices.

Businesses, banks, stores, restaurants or any entity that holds unclaimed funds over a certain time period must report these funds to the division. Ohio law requires that all holders (business entities that hold unclaimed funds) review their records each year to determine whether they are in possession of any unclaimed funds and file an annual report of their findings.

Common sources of unclaimed funds include: dormant checking and savings accounts, forgotten rent and utility deposits, uncashed checks (including payroll checks), undelivered stock certificates, uncashed insurance policies, forgotten layaway deposits, and safe deposit box contents.

While most funds must remain unclaimed for five years before being turned over to the state, businesses should consult the Ohio Revised Code or check with the Division of Unclaimed Funds for exact details.

"The holder reporting requirements are designed to protect the owner’s property rights and to reunite the owner with the funds," said Jessie T. Baker, Chief of Unclaimed Funds. Last fiscal year, the Division successfully returned more than $21 million in unclaimed funds to the rightful owners.

All holders of unclaimed funds are required to file, even if there are no funds to report. For accounts of $50 or more, a notice must be sent to the owner at the last known address before remitting to the State of Ohio. Depending on the number of accounts to report, holders can report the funds on paper, diskette, or electronically by magnetic tape.

Failure to report unclaimed funds can result in a penalty of up to $500 per day plus interest.

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Businesses that have questions about the reporting of unclaimed funds can visit the Department of Commerce's web site at www.com.state.oh.us or they can contact the Division's Compliance Section at (614) 644-7281. The 1999 Annual Holder Report, the necessary reporting form, is also available on the web site.

Chief Baker encourages Ohioans to prevent property from becoming unclaimed by keeping good records, maintaining active accounts, making a will, and when moving provide change of address information to the post office and those with whom you have accounts.

Unclaimed funds accounts are held by the division until they are claimed by their rightful owner or his or her heir. Until then, the funds are used to support economic development throughout Ohio. The Ohio Department of Development and the Ohio Housing Finance Agency use these monies to fund various low and moderate income housing programs. Unclaimed funds are also used to guarantee performance bonds for the Minority Contractors Bonding Account.

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The Ohio Department of Commerce’s Division of Unclaimed Funds is responsible for the safekeeping and return of monies designated as "unclaimed." Forgotten monies from about 200,000 people and organizations are turned over to the state each year as the result of death, forgetfulness, or inadvertence. Other Commerce divisions enforce regulations regarding building and fire codes, financial institutions, real estate, securities and various other licensed professions and industries.

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