The Auditor of State’s office is seeing increased compliance from businesses reporting unclaimed property to the state, thanks to a new outreach initiative implemented earlier this year, Auditor Dennis Milligan announced. The deadline for companies – or “holders,” in industry terms – to report any unclaimed property to Milligan’s office was Nov. 1.
“The Unclaimed Property Act requires business entities to review their records each year and report whether they are in possession of any unclaimed funds, securities or other property,” Milligan said. “Earlier this year, my office identified more than 200 businesses that were not in compliance with this Act and notified them. We offered them a roadmap of how they could come into compliance with the law, and that effort is paying off.”
Unclaimed property holders are businesses or government agencies that have unclaimed property which has been abandoned or dormant for a number of years. Holders are required to report and remit property annually to the state auditor’s office.
Unclaimed property can consist of any financial asset – money from old checking accounts, unreimbursed utility deposits, stock or mutual fund shares, life insurance proceeds, etc. In some cases, it includes tangible items left behind in safe deposit boxes. The state has more than $400 million owed to citizens in unclaimed cash.
The Auditor’s office received $20.4 million more from July 1 to Nov. 1, 2024, than it received for that same period in 2023. Properties reported to the office increased 33% during that time, from 420,650 to 562,429.
“I’m required by law to make people aware of this program and help return unclaimed property back to Arkansans,” Milligan said. “To do that, we have to get those assets to my office, and that includes educating businesses about their responsibility to report unclaimed property.”
In September, Milligan hosted a one-day seminar to educate companies on how to accurately report unclaimed property. The office was the first administrator in the country to live-stream the seminar and more than 300 people have viewed it online to date.
State statute requires the auditor’s office to hold unclaimed property in perpetuity, meaning until it is claimed by the rightful owner or heir. Milligan mails thousands of letters each year to try and reconnect citizens with their unclaimed property.
“I want to be known as the state auditor who has given back the most money in unclaimed property of any state auditor in history,” Milligan said. “Since I took office in January 2023, we have returned more than $60 million in unclaimed property to citizens.”
