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Voluntary Disclosure Program


Overview:

Every business entity is required to report unclaimed property assets to the State of Minnesota on an annual basis. The State of Minnesota’s goal is to collect and return unclaimed property to its rightful owners in accordance with Minnesota Statute 345. As an ongoing effort to promote compliance with the Unclaimed Property Law, The Minnesota Department of Commerce (“Commerce UCP”) has established a Voluntary Disclosure Program.

Effective 6/15/2013, Commerce UCP changed its documentation relating to its voluntary disclosure program. The process remains unchanged. The revised documentation is designed to facilitate the process and provide flexibility to the holder in completing their analysis and development of a compliance program.

The required documentation consists of two forms:

Form VDA-1 (.pdf):
Disclosure and Notice of Intent to Voluntarily comply with Minnesota Unclaimed Property Requirements.

Signed at the beginning of the process.

Form VDA-2 (.pdf):
Voluntary Disclosure Agreement

Signed at the end of the process upon acceptance of the identified property.

To participate in this program, the Holder must NOT:

  1. Be currently under examination or audit by the Department or one of the Department’s contract auditors;

  2. Have been contacted by the Department or by one of the Department’s contract auditors to schedule an examination or audit of the holder on behalf of the Department.

General Description of the process:

  1. Initial Contact

    • Holder initiates contact with Commerce UCP. The holder may contact the department anonymously to discuss the program prior to entering into the program. To enter the program:
      • Mail two originals of the form to:
        Minnesota Department of Commerce
        Unclaimed Property Division
        Attn: Scott Halvorson
        85 7th Place East, Suite 500
        St. Paul, MN 55101-2198

  2. Introductory Meeting (or conference call at the Holder’s option)

    • Discussion between the Holder and Commerce UCP to establish a VDA work plan, general expectations, company organizational structure, past reporting history, and general company information.

  3. Phase 1: Scoping

    • The initial phase of the VDA process during which the Holder reviews its records, entities, acquisitions (if any), property types, availability of records, and years to be included in scope of the VDA.
    • Any potentially controversial property types or questions as to Commerce UCP’s interpretation of statutory requirements should be discussed within Phase 1.

  4. Phase 2: Records Review/Testing/Remediation

    • Holder reviews records and identifies an initial potential liability.
    • In the event estimates are required by the Holder due to inadequate records, the Holder must seek approval from the Department in regards to the use of estimates and shall submit an affidavit, signed by an officer of the company stating that estimates were necessary.
    • Upon request, holder produces detailed records for review by Commerce UCP staff.
    • Holder remediates initial list eliminating any data errors, accounting errors, etc.
    • Holder and Commerce UCP resolve any open issues.


  5. Phase 3: Due Diligence

    • Holder performs due diligence on property not eliminated through remediation.
    • Holder presents findings to the State including estimate calculations (if any).
    • Holder and Commerce UCP resolve any open issues created through the due diligence process.

  6. Phase 4: Payment Administration and Acceptance of Property

    • Holder renders payment to the State. The State and Holder Execute Form VDA-2 and the Holder is granted all rights and waivers contemplated by the agreement.